Baltic Transport Journal 5/2024

№ 5/2024 (121), SEPTEMBER/OCTOBER

ISSN 1733-6732

bimonthly-daily companion

Journal

Baltic Transport B TJ T R I P

The Port of Jakobstad-Pietarsaari S U S TA I N A B I L I T Y

We don’t need a winner.

Why a single shipping company won’t turn the tide of the fuel market

MARITIME

The price of pooling.

Market- & data-based approach to FuelEU Maritime T E C H N O LO G Y

OFFICIAL MEDIA PARTNER OF:

Overcoming obstacles in AI-based container damage detections

The Port of Opportunities The Port of HaminaKotka is a versatile Finnish seaport serving trade and industry. The biggest universal port in Finland is an important hub in Europe and in the Baltic Sea region.

Welcome to the Port of HaminaKotka!

haminakotka.com

Dear Readers,

I

hope you’re all feeling sparky this autumn – and that sincerely comes from somebody for whom September and October proved to be quite challenging health-wise.

On that note, anybody caring about sea shipping probably feels the same – hopes for the industry to find itself in fine fettle as the years to come will surely prove to be nothing but demanding. We don’t even have to speak about decades to come with all those IMO targets. The EU Emission Trading System is already here, while the FuelEU Maritime Regulation is banging on the industry’s hatch. We recently had the opportunity to partake in a conference organised by one of the biggest players in the business of moving goods and people by sea – and boy, these Southerners do not beat around the bush when sharing their thoughts about regional regulations aimed at greening shipping! But what was interesting, too, were the things hidden in between words. For more on that, check our Radicalism and/vs realism coverage in the Events section.

Rest assured, this edition has your back when it comes to FuelEU Maritime, with a particular focus on the pooling option this Regulation brings forth. Several other reads center on different approaches to sustainability. We write about key elements of success (in Wärtsilä’s view) in bringing those sought-after sustainable fuels onto the market; safety issues around bunkering liquefied hydrogen; carbon insetting; eliminating methane slip; as well as what’s the secret ingredient in cooking, um, sorry, designing low-carbon vessels.

In line with the Safety news by TT Club, there’s also a read on challenging the current norms of maritime safety. Speaking of TT, this time, they got to the topic of maintaining the stability and continuity of the global grain supply.

Alike Sustainability, the Technology column is rich with more than fine reads on overcoming obstacles in AI-based container damage detections; building a scalable, highquality, reliable, and collaborative automated future; fuelling the transition to new fuels and greener fleets with data (if you think this article is also concerned with FuelEU Maritime, then you’re totally right!); embracing digital transformation in asset performance management (because the more you know, the more sustainable you can sail); and developing a smart forecast model for container depots (because who likes congestion and delays?!). On the land side, another Tech piece explains how multi-agent orchestration software can transform warehouse operations.

Last but absolutely not least, the autumn of 2024 brought about another chance to head north ‘on board’ a new BTJ Trip. Check Ready to rock to hear the latest from the Port of Jakobstad-Pietarsaari and its (impressive industrial) surroundings.

Alright, with warm & cozy blankets on laps and steaming tea mugs in hands, have nothing but the greatest read!

EDITORIAL Baltic Transport Journal Publisher

BALTIC PRESS SP. Z O.O. Address: uAleja Zwycięstwa 96/98 81-451 Gdynia, Poland office@baltictransportjournal.com

www.baltictransportjournal.com www.europeantransportmaps.com Board Member

BEATA MIŁOWSKA

Managing Director

PRZEMYSŁAW OPŁOCKI

Editor-in-Chief

PRZEMYSŁAW MYSZKA przemek@baltictransportjournal.com

Roving Editor

MAREK BŁUŚ marek@baltictransportjournal.com

Proofreading Editor EWA KOCHAŃSKA

Contributing Writers

KISHOR ARUMILLI, THOMAS BOCK, NEIL DALUS, BERTIL DUINHOWER, MIA ELG, STEVE ESAU, ALBRECHT GRELL, ILARI LEINONEN, OSSI METTÄLÄ, SIMEN DISERUD MILDAL, EMIN NAKILCIOĞLU, TORILL GRIMSTAD OSBERG, OSHER PERRY, MONIKA ROGO, FITZWILLIAM SCOTT

Art Director/DTP DANUTA SAWICKA

Head of Marketing & Sales PRZEMYSŁAW OPŁOCKI po@baltictransportjournal.com

If you wish to share your feedback or have information for us, do not hesitate to contact us at: editorial@baltictransportjournal.com

Contact us:

PRZEMYSŁAW OPŁOCKI tel.: +48 603 520 020

Przemysław Myszka

Cover Canva

№ 5/2024 (121), SEPTEMBER/OCTOBER

ISSN 1733-6732

bimonthly-daily companion

Journal

Baltic Transport B TJ T R I P

The Port of Jakobstad-Pietarsaari S U S TA I N A B I L I T Y

We don’t need a winner.

Why a single shipping company won’t turn the tide of the fuel market

MARITIME

The price of pooling.

Market- & data-based approach to FuelEU Maritime T E C H N O LO G Y

OFFICIAL MEDIA PARTNER OF:

Overcoming obstacles in AI-based container damage detections

Subscriptions

Autumn Sea by Gustave Courbet, photo: Artvee

Go to www.baltictransportjournal.com and click: SUBSCRIPTION or contact us at subscription@baltictransportjournal.com

5/2024 | Baltic Transport Journal | 3

Moves a lot.

Changes everything.

With a maximum lifting capacity of 1,600 tons, our travelling cargo crane TCC 78000 will drive your heavy-duty projects to success. www.liebherr.com

Maritime cranes

CONTENTS

28

3

REGULAR COLUMNS

3 Editorial 8 BTJ calendar of events 10 Safety news by TT Club 12 Market SMS 14 What’s new?

16 Map news 18 Venture forth 20 What’s in the Cabinet 22 Chart of the issue: The DHL Logistics Trend Radar 7.0 24 BTJ Trip \ the Port of Jakobstad-Pietarsaari 64 Events: Radicalism and/vs realism – The Grimaldi Group’s XXVI Euromed Convention From Land to Sea

by Przemysław Myszka 68 Who is who

SUSTAINABILITY

28 We don’t need a winner – Why a single shipping company won’t turn the tide of the fuel market – but the industry at large can (if it only wants to, with the help of policies and other sectors)

by Ewa Kochańska 32 Understanding the whole picture – How to bunker liquefied hydrogen – safely

by Simen Diserud Mildal, and Torill Grimstad Osberg 34 Insetting doesn’t have to be upsetting – How carbon units can help to decarbonize supply chains

by Bertil Duinhower 36 A new lease on life – How hard- and software retrofits can help older tonnage get back in (ship)shape

by Fitzwilliam Scott 38 CHEK it out!

– The secret ingredient in low-carbon ship design

by Mia Elg

40

LEGAL

40 Risk in bulk – Maintaining the stability and continuity of the global grain supply

by Neil Dalus 5/2024 | Baltic Transport Journal | 5

Discover the perfect view for a port.

Never mind our stunning sea view. Every port has one. We’re talking about the railroad and motorway right outside our office windows. For a port, that’s a view, and a location worth its weight in gold. At the Port of Oxelösund, we have a direct connection to the Swedish railway system, and to Sweden’s biggest motorway, European route E4. This gives us unique possibilities when it comes to processing and transporting goods. If you value logistics with speed and flow, give us a call.

The Port of Oxelösund is more than a port. We can handle your entire logistics chain and optimize every part of your goods’ journey, from start to finish. Our goal is to be the Baltic’s leading port terminal, with Europe’s best stevedoring services.

oxhamn.se

CONTENTS

50 42

MARITIME

42 The price of pooling – Market- & data-based approach to FuelEU Maritime

by Albrecht Grell 44 Is enough being done?

– Challenging the norms of maritime safety

by Osher Perry 46 Eliminating methane slip – On course for LNG’s net zero by by Steve Esau

48

NEWSLETTER BPO

48 Baltic Ports Conference 2024 – the future of ports is now; let’s get strong on it together!

by Monika Rogo

TECHNOLOGY

50 The image of health – Overcoming obstacles in AI-based container damage detections

by Kishor Arumilli 54 Lessons from the (past & present) frontlines of logistics – How to build a scalable, high-quality, reliable, and collaborative automated future

by Thomas Bock 56 Sailing blind?

– Fuelling the transition to new fuels and greener fleets with data

by Ossi Mettälä 58 The Aura of applied data accuracy – Embracing digital transformation in asset performance management

by Ilari Leinonen 60 Striking the right note – How multi-agent orchestration software can transform warehouse operations

by Fitzwilliam Scott 62 Taming the traffic tides – Developing a smart forecast model for container depots

by Emin Nakilcioğlu 5/2024 | Baltic Transport Journal | 7

BTJ CALENDAR OF EVENTS TransLogistica Poland, 5-7/11/24, PL/Warsaw, translogistica.pl/en/home-english Join the leading Poland-Central and Eastern Europe business event for entrepreneurs, who use or seek transport and logistics services, as well as for everyone professionally associated with the industry. It is a place where shippers and cargo owners (producers, retail chains, distributors of all kinds, etc.) can find comprehensive and highest quality logistics services for their goods.

The Motorship’s 45th Propulsion & Future Fuels Conference, 19-21/11/24, DE/Hamburg, motorship.com/propulsion-and-future-fuels-conference This year marking its 45th anniversary, Propulsion & Future Fuels is the longest-running technical conference in the maritime sector, providing senior executives with a meeting place to learn, discuss, and share knowledge of the latest developments in efficient propulsion technology and low-flashpoint, low-carbon fuels. The 2024 edition will cover a range of topics, with emphasis on the next steps to 2030 and 2050, and an in-depth analysis of ship operators’ future fuel considerations.

Offshore Energy Exhibition & Conference 2024, 26-27/11/24, oeec.biz OEEC serves as an essential gathering point for professionals, experts and companies active in the offshore energy sector and beyond.

Covering a diverse spectrum – which includes offshore wind, hydrogen, oil & gas, and marine energy – OEEC offers a platform for these industry stakeholders to come together, ignite innovation and shape the future of the energy transition. With expert speakers, interactive exhibits and unparalleled networking opportunities, this event is an opportunity to stay in the curve in the offshore energy game.

German-Finnish Port Day 2024, 27/11/24, DE/Lübeck, www.ihk.de 2024 will be a pivotal year for ports and their communities. Geopolitical instability is on the rise. Physical and digital security is under threat, at sea and on shore. Shipowners, supply chain providers, and cargo owners must adapt rapidly. The energy transition towards low- and zero-carbon fuels must be balanced against national energy security concerns. #IAPH2024 will offer attendees insights on these topics, revealing how ports – from developing and developed nations – are building secure and sustainable solutions to these shared challenges, in a deeply interconnected world.

3rd Sustainable Maritime Fuel Forum, 4-5/12/24, BE/Brussels, inventu.eu/events The Annual ABTO Bulk Terminals Conferences are designed for all those involved in the transportation, storage and handling of bulk commodities. We welcome equipment and service suppliers, professional advisors, and academics to the conference in addition to terminals and ports. Indeed, ABTO strongly believes that bulk terminals will achieve increased operational efficiencies, safety, and environmental compliance only through interaction with these other organisations.

ESPO Conference, 8-9/05/25, GR/Thessaloniki, espo.be/events The next annual meeting of the European seaport industry will take place in Thessaloniki on 8-9 May 2025. We are looking forward to seeing you – as well as some 200 other port professionals – there!

Baltic Ports Conference 2025, 6-8/10/25, PL/Gdańsk, balticportsconference.com After a very successful and well-attended Baltic Ports Conference (BPC) in Klaipėda, the Baltic Ports Organization (BPO) already welcomes you to the 2025 edition to be held in Gdańsk on 6-8 October 2025 under the auspices of the Port of Gdańsk. As always, BPO’s BPC will touch on the most topical issues facing the port and shipping businesses in the Baltic and beyond. Stay tuned for more info before long!

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8 | Baltic Transport Journal | 5/2024

WORKING TOWARDS SAFER PRACTICES

SAFETY NEWS BY

TT Club is the leading provider of mutual insurance and related risk managment services to the international transport and logistics industry.

Its core mission is to make the industry safer and more secure. To find out more visit ttclub.com

IMPROVING SEAFARER WELL-BEING: PRELIMINARY FINDINGS FROM THE DIVERSITY@SEA PILOT PROJECT The report, produced by one of the Global Maritime Forum’s initiatives (and within the All Aboard Alliance), urges the global shipping industry to improve working conditions, better seafarer well-being, make life at sea safe and inclusive, and future-proof against the changing needs of the maritime labour market to attract future generations of seafarers. These conclusions come from a 10-month global collaboration involving 400 seafarers from 12 ships (each belonging to a different shipping company) that generated over 50 thousand data points. “It is our hope that these preliminary findings and learnings will be embraced by stakeholders across the maritime industry who are looking to make working at sea more attractive and considered by policymakers as valid input for a discussion on minimum standards to ensure that rules and regulations not only keeps pace with the evolving nature of maritime work but also increases inclusivity and safety at sea,” underscored the report’s authors.

COUNTERING SHIP FIRE PROLIFERATION Prompted by the recent spate of container ship fires – two in port (including an explosion in the Port of Ningbo-Zhoushan) and two at sea within the last couple of months – the international freight and logistics insurance provider TT Club stresses the greater need for all players in the global supply chain to recognise their responsibility for accurate and effective communication between all parties for the transport of dangerous goods. “The causes remain under investigation,” says Peregrine Storrs-Fox, Risk Management Director at TT Club, about the four incidents, furthering that, “However, there are strong indications that potentially explosive chemicals and fire accelerators, such as lithium-ion batteries, may be involved in at least two of the cases. As with historical incidents, it is likely that various errors occurred as the shipments were initiated and the exact nature of the cargoes was communicated to supply chain counterparties, giving rise again to ‘perfect storms.’

Every participant in the process needs to act in the best interests of safety at every point in these cargoes’ journeys.” According to

TT Club, the exact number of containers carrying dangerous goods that are shipped annually is difficult to estimate due to mis- and non-declaration. Partly in response to the issues around inaccurate declaration, the International Maritime Organization amended in 2022 the Guidelines for the Implementation of the Inspection of Cargo Transport Units to urge governments to inspect all unit types, regardless of the declared cargo. The recently released consolidated results for 2023, from just eight countries (or 5% of the signatory states), evidence continuing safety concerns. Among others, TT Club points to a rapidly worsening trend in stowage and securing (within units) over the last five years and the worst position since these reports began in 2001. The insurer also notes the five-year worsening trend relating to errors found in documentation. “This spike in serious container ship fires is reminiscent of the spate in 2019, although the 30-year average frequency may remain one every 60 days – but any life-threatening event is one too many,” TT Club warns.

THE INNOVATION IN SAFETY AWARD – OPEN FOR ENTRIES The TT Club-sponsored and the International Cargo Handling Coordination Association (ICHCA)-organised Award – established for those making a significant difference in safety in cargo transport – is ready to welcome candidates for the latest prize distribution (applications are accepted till 15 November 2024). “Now, more than ever, the challenge to everyone in the global freight industry is to drive safety forward,” TT Club highlighted in a press release.

The international freight and logistics insurance provider continued, “Developing technologies combined with knowledge and experience at all levels can significantly enhance how we manage very real risks to our people, cargoes and services. Risks such as explosion, fire, fall, crush, run over and moving objects require ongoing control in ports and on board ships. The better industry gets at this, the better the results for life, limb, cargo and infrastructure, the better the work for workforces and the more sustainable and successful the organisations that we depend on. The opportunity exists not just to prevent headline-grabbing events, but also day-to-day incidents that may be less in the media spotlight but can affect both shore-side workers and ships’ crew.” Mike Yarwood, TT Club’s Managing Director of Loss Prevention, commented, “The good news is that cargo handlers, carriers and the developers of technological devices and systems of all shapes and sizes are diligently producing innovations to 10 | Baltic Transport Journal | 5/2024

improve risk control. I am pleased to say that working with ICHCA, our efforts in encouraging such innovation are having a positive effect. This Award plays a significant role in those efforts.” Richard Steele, CEO of ICHCA, added, “Our list of previous innovative ideas to increase the safe working of our industry is impressive. We are pleased to have had the opportunity to spotlight their passion and creativity for not just doing the right things right but doing them better. Every year, we speak to people who have genuinely innovated but just see it as part of their job. We urge all those who have made positive changes to the way they do safety, either for themselves or for others through their products or services, to enter this year’s Award. The most exciting part of the Award is the resultant sharing of knowledge and forward-looking thought that can deliver valuable advancements in safety. They will make a difference now!” The safety solutions up-to-date competing for the Award included a netting system to prevent fatal falls in cargo holds, a device for enhancing mooring safety, a standardised digital platform for terminals to carry out vessel inspections, improvements in the safety and stability of containers on board ships, a digital temperature alerting system for tank containers, an effective way of fighting onboard container fires, and a video analytics solution that helps prevent in-terminal collisions of heavy cargo handling equipment.

For more Market Statistics Made Simple please visit: www.baltictransportjournal.com

The Port of HaminaKotka:

The Port of Turku:

International cargo traffic totalled 10.14mt (-6% year-on-year), of which exports amounted to 6.54mt (-7.8% yoy) and imports to 3.6mt (-2.7% yoy), with the remaining 131.2kt handled domestically (-24.7% yoy). The Finnish seaports took care of 433,136 TEUs in the reported period, down 5% yoy.

International cargo traffic totalled 1.24mt (+1.9% year-on-year), of which imports totted up to 633.9 kt (+8.7% yoy) and exports to 607.7kt (-4.4% yoy), with goods transported domestically adding the remaining 26kt (-14.2% yoy). A total of 59,449 trucks & trailers went through Turku’s quays (-5.4% yoy), 30,075 in import (-2.2% yoy) and 29,374 (-8.5% yoy) in export traffic. The Finnish seaport also handled 1,226 TEUs (-46% yoy). The Port of Turku served 1.68m passengers over 2024’s first three quarters, down 11.2% on the January-September 2023 result.

10.27 million tonnes handled in I-IX 2024 (-6.4% yoy) 1.27 million tonnes handled in I-IX 2024 (+1.5% yoy)

Photo: Port of HaminaKotka

The Port of Helsinki: 512,472 trucks & trailers handled in I-IX 2024 (+5.3% yoy)

Tonnage-wise, wheeled (ferry and ro-ro) cargo totted up to 6.73 million tonnes (+9.2% year-on-year). Together with containerised freight (+0.7% yoy to 2.57mnt), Helsinki’s unitised freight traffic amounted to 9.29mt (+6.7% yoy).

The Finnish seaport overall took care of 10.61mt during 2024’s first three quarters, of which 10.43mt (+3.2% yoy) was made in international traffic, while the remaining 182.2kt (-37.1% yoy) was handled domestically. Dry bulk turnover contracted by 18.4% yoy to 829.5kt. Break-bulk lost 26.8% yoy on the January-September 2023 volume, ending with 417.4kt. Helsinki’s container traffic totalled 332,426 TEUs (-1.1% yoy). Ferry passenger traffic, on the other hand, gained 4.3% yoy to 7.23m, of which the connection with Tallinn (including its Muuga Harbour) summed up to 5.76m travellers (+4.4% yoy), Stockholm – 1.26m (+3.7% yoy), Travemünde – 141.2k (+1.1% yoy), and Mariehamn – 28.3k (-7.8% yoy). Passengers classified as ‘others’ totted up to 25.7k (+122% yoy). Ships serving Helsinki’s ferry traffic also carried 1.12m private vehicles (-3.4% yoy). Cruise traffic contracted as well, down 22.8% to 125,724 travellers.

Photo: Port of Turku

The Port of Szczecin-Świnoujście:

15.92 million tonnes handled in H1 2024 (-12% yoy) The sharpest decrease was noted in the handling of coal, down 66.5% year-on-year to 618.1kt. General cargo (excluding timber), SzczecinŚwinoujście’s prime trade, contracted by 2.2% yoy to 8.05mt, of which ferry cargo accounted for 6.56mt (-1.6% yoy). With 3.76mt (-9.9% yoy), including 2.11mt of liquefied natural gas (-4.9% yoy), liquid bulk came in second. The Polish ports also handled 1.77mt of other dry bulk (-6.6% yoy), 1.18mt of grains (-1.7% yoy), 372.8kt of iron ore (-42.7% yoy), and 171.3kt of timber (+79.2% yoy). SzczecinŚwinoujście’s container traffic totted up to 34,248 TEUs (-6.9% yoy).

The Port of Tallinn:

9.72 million tonnes handled in I-IX 2024 (+2% yoy)

Photo: Port of Helsinki

12 | Baltic Transport Journal | 5/2024

Apart from liquid bulk and non-marine, which contracted by 21.4% year-on-year to 1.02mt and by 46.4% yoy to 13kt, all other freight groups advanced: ferry and ro-ro cargo by 2.6% yoy to 5.04mt, dry bulk by 11.3% yoy to 1.74mt, containerised freight by 10.1% yoy to 1.55mt, and break-bulk by 10.6% yoy to 363kt. Tallinn’s passenger traffic also grew – by 3.2% yoy to over 6.3m travellers. The ferry crossings with Helsinki and Stockholm increased by 2.8% to 5.55m and 8.1% yoy to 445k, while the Muuga-Vuosaari service gained 19.2% yoy to 159k.

Cruise traffic, on the other hand, lost 15.6% yoy, down to 139k. Passenger traffic classified as ‘other’ totalled 46k (+40.7% yoy). The Port of Tallinn’s domestic Estonian ferry traffic subsidiary, TS Laevad, served 1.99m passengers (+1.6% yoy) and transported 929k vehicles (+3% yoy).

MARKET SMS The Port of Riga: 364,064 TEUs handled in I-IX 2024 (+10.5% yoy) Tonnage-wise, containerised freight going via the Latvian seaport totalled 3.68 million tonnes, up 1.1% year-on-year. Overall, the Port of Riga handled 13.14mt over 2024’s first nine months (-6.8% yoy). Dry bulk, still the seaport’s leading business, contracted 16.3% yoy to 6.44mt even though its main cargoes noted double-digit increases: agricultural products grew by 16% yoy to 2.51mt, wood pellets by 17% to 1.2mt, and woodchips by 45.2% yoy to 830kt. On the other hand, the handling of ore plummeted by 69% to 118.9kt and coal & coke by 94% to 82.2kt. Liquid bulk lost volume as well, down 6% to 662.4kt. At the same time, general cargo advanced by 5.9% yoy to 6.03mt, including 2.24mt of timber (+21.2% yoy). With 73,736 passengers, Riga’s cruise traffic was 7.4% behind the result from January-September 2023.

Photo: Port of Riga

The Port of Klaipėda:

The Port of Liepāja:

According to Statistics Lithuania, Klaipėda’s H1 2024 container traffic totalled 537,528 TEUs (-6.4% yearon-year). At the same time, the number of handled ro-ro cargo units rose by 23.1% yoy to 121,193. The seaport’s January-September 2024 passenger traffic advanced as well – by 7.4% yoy to 354.4k, of which ferry travellers summed up to 291.2k (+1.2% yoy) and cruise to 63.2k (+49.8% yoy).

Dry bulk, the Latvian seaport’s chief trade, contracted by 4.7% year-on-year, including the 0.8% yoy drop in grain turnover to 2.27mt. Liquid bulk also lost volume, decreasing by 7% yoy to 196.9kt.

That said, the handling of general cargo (+16.5% yoy to 1.69mnt) made up for the losses. Ferry cargo totalled 1.31mt (+11.4% yoy). With 321.2kt, timber gained 43.1%, up and above the January-September 2023 figure. Liepāja’s ferry passenger traffic also grew – by 11.3% to 85,051 travellers to/from Travemünde on board Stena Line’s Stena Flavia and Stena Livia ferries.

25.77 million tonnes handled in I-IX 2024 (+7.2% yoy)

5.25 million tonnes handled in I-IX 2024 (+1.1% yoy)

Photo: Port of Klaipėda

5/2024 | Baltic Transport Journal | 13

For more news items please visit: www.baltictransportjournal.com

Wallenius Wilhelmsen adds size to its Shaper class

Wallenius SOL-BB Logistics warehouse co-op

The Norwegian-Swedish shipping line has decided to make four (out of 12 ordered) car carriers bigger, adding six metres in length and two in width, thus making it possible to have 14 instead of 12 decks. The enlargement will up the car carriers’ capacity from 9,300 to 11,700 CEUs. Like their sister ships, the bigger ‘Shapers’ will feature dual-fuel, methanol-capable engines. China Merchants Jingling Shipyard will start delivering the first Shapers from H2 2026, while the up-sized vessels – from late 2027. The latter date is also when WW plans to offer an end-to-end net-zero service with the new class of car carriers. “Providing significant savings on fuel and emissions in comparison to the current fleet and with both unparalleled capacity and the highest ramp strength in the order book, these vessels are truly fit for the future,” shared Xavier Leroi, EVP & COO Shipping Services, Wallenius Wilhelmsen.

The two have signed a long-term agreement, effective from 1 January 2025, to offer warehousing services in the Finnish Port of Kemi. The contract concerns a 12,000 m2 warehouse in what is Wallenius SOL’s northernmost port of call, to be used for storage and consolidation of goods arriving in containers, trailers, SECUs, and on cassettes. The Kemi service also includes the ports of Skellefteå, Kokkola, Oulu, Pietarsaari, Lübeck-Travemünde, Antwerp, and Zeebrugge. “Through this agreement, we are securing essential warehousing capacity in Kemi, which is vital for meeting the increasing demand in the region. This capacity will support both ongoing projects and the steady flow of regular cargo in the years to come,” Jonas Wåhlin, CCO, Wallenius SOL, underscored. He furthered, “The region is rapidly developing, driven by major industrial investments, particularly in green technologies. Our Enabler vessels [Baltic Enabler and Bothnia Enabler, each offering 6,442 lane metres of capacity] provide a sustainable shipping solution that supports these projects and the expected growth in exports.” Kim Lindström, Managing Director, BB Logistics, also said, “We take great pride in serving the logistical needs of Northern Finland and Sweden through the Port of Kemi. The strong partnership between Wallenius SOL and BB Logistics enables us to swiftly address the challenges of the logistics sector.”

Photo: Wallenius Wilhelmsen

Arendal 2 goes online…

The Port of Gothenburg has inaugurated the operations of the brandnew 144,000 square metres terminal it has been working on for the past six years at the expense of €60 million. Among others, some 180k m3 of contaminated materials were dredged from the Göta River, which were then contained, stabilised, and solidified to form the foundation of the new (asphalted) terminal area. Gothenburg RoRo Terminal already uses a section of Arendal 2. “Parts of the new spaces will be used by Stena Line when the shipping company begins relocating its local operations from its current locations in the central parts of the city to the outer port area. The project has included preparations regarding filling, channeling, and water purification for a future ferry terminal,” the Port of Gothenburg added in a press brief. Göran Eriksson, CEO of the Swedish seaport, also commented, “This terminal began planning as early as the 1990s and then we talked about future-proofing. Now that future is here, and this terminal is needed to meet the transportation needs of the Swedish industry today, which are also expected to continue growing over time.”

Photo: Wallenius SOL

New ro-ro side ramp in Trelleborg Skanska has put in place the 100-metre-long, two-lane superstructure at the Ferry Berth No 13 in the Swedish seaport, with TT-Line’s gasrun Green Ships using it after final inspection this October. Installing the ro-ro side ramp was part of the port’s EU-supported Digi-MoS project. “The side ramp creates opportunities to move all TT-Line’s ferry traffic from the old port, which brings great logistical advantages and higher efficiency. The Ferry Berth No 13 will also be used for LNG bunkering,” the Port of Trelleborg highlighted in a press release.

…and soon will also Castellum-Port of Gothenburg’s JV logistics park

Photo: Port of Gothenburg

14 | Baltic Transport Journal | 5/2024

The 45,000 square metres facility at Halvorsäng, north of the Swedish seaport, will be leased to the medical technology company OneMed, with construction works set to start this autumn. The investment will be built according to Miljöbyggnad 4.0, an environmental standard set by the Sweden Green Building Council, including a 3.0GWh/year photovoltaic system. OneMed plans to move into the new premises by 2026. The total contract value is close to €50 million over a 12-year lease period.

Castellum and the Port of Gothenburg are jointly developing 145,000 m2, divided into 10,000-50,000 m2 buildings (some of them 35-metre-tall).

WHAT’S NEW? First Trollmaxes – delivered The Dutch shipbuilders from Ferus Smit have launched Lidan and Spiken, the first in a series of six 4th generation dry cargo freighters designed for trading through the Trollhätte Canal and in the Lake Vänern. Each 80 by 13.35 metres, 5,100 tonnes of deadweight, 1B Ice Class vessel offers 206 thousand cubic feet of capacity across two holds. Lidan and Spiken have nozzled propellers and reduced engine output. “With a large diameter propeller operating within a nozzle, it delivers increased thrust at lower speeds, reducing power demand during challenging seaways and ice-breaking operations. This advanced design allows us to reduce the installed main engine power by 18% without compromising performance, resulting in decreased fuel usage and carbon emissions,” the ships’ owners from Erik Thun explained in a press release. The two first Trollmaxes also feature battery packs (that enable peak shaving and power smoothing), optimised bulb forms, transom shape, and closed bridge wings. Lidan and Spiken can also connect to an onshore power supply facility.

Photo: Ferus Smit

CTP buys additional land in Gdańsk

DSV to take over DB Schenker

The developer, owner, and manager of industrial & logistics properties has added 140 thousand square metres to its already 117k m2-big CTPark Gdańsk Port. With its recent acquisition in Northcentral Poland, CTP’s land bank in the country grew to 3.0m m2.

The Danish Hedehusene-headquartered multinational transport & logistics company has signed an agreement with Deutsche Bahn to acquire DB Schenker for €14.3 billion. DSV expects to finance the transaction through a combination of equity financing of around €4-5 billion and debt financing. The deal is conditional on approvals by the Supervisory Board of Deutsche Bahn and by the German Federal Ministry for Digital and Transport. In addition, the acquisition is conditional on obtaining customary regulatory clearances, which are expected to be secured in Q2 2025. As part of the agreement, DSV has issued social undertakings for DB Schenker’s employees in Germany, applying until two years after closing. “Collective agreements and individual employment conditions for German employees on the closing date will generally be retained in the two years period. DSV will apply the German principles of codetermination [the right of workers to participate in management of the companies they work for],” DSV shared in a press release. The company also said, “Various central functions will stay in Germany, including at the Schenker location in Essen. DSV expects to grow in Germany and plans €1.0 billion investments in Germany in the next three-five years.” Until the closing of the transaction, DSV and DB Schenker will remain two separate companies.

Schéle to have a new warehouse in Halmstad The Swedish seaport will grow with a 70,000-tonne-capacity facility for handling steel and other metal products. The SEK40 million investment (about €3.5m) is scheduled for completion by May 2025. “This development has been made possible thanks to the Ports of Halland’s investments as well as the expansion of Quay 800 and other new terminal areas. When the Quay 800 project is ready in the autumn of 2025, we will transfer all the handling of recycling material to the new port part, which will give us a unique opportunity to grow the turnover of steel and metals in the inner harbour. At the same time, we will improve security in the port area and give the city better access to the Nissan River,” commented Henrik Nanfeldt, the Ports of Halland’s COO.

5/2024 | Baltic Transport Journal | 15

For Europe-wide maps news on ro-ro & ferry container intermodal please visit: www.europeantransportmaps.com

Finnlines adds Southeastern England to its Finland-Belgium-Spain ro-ro service…

…and also re-arranges its West Finland-Baltic Germany ro-ro service

As of 23 September 2024, the company’s three Finnecos (each offering 5,800 lane metres of cargo capacity) call to Peel Ports’ London Medway in the Port of Sheerness on a weekly basis. The rotation links the ports of Helsinki/KotkaSheerness-Antwerp/Zeebrugge-Bilbao/Vigo. “The launch of our new service from Sheerness secures an important trade route between England and the Continent, further solidifying our position in the market,” Merja Kallio-Mannila, Finnlines’ Commercial Director, commented. Richard Goffin, Port Director for Peel Ports Group – London Medway, added, “Location is everything, and as a port, London Medway’s proximity to the nation’s capital and distribution networks means it is perfectly placed to connect importers and exporters with their markets.

We expect this new service will be popular with both established and emerging markets, which are seeing strong growth in the South-East of the UK, and, in particular, forest products, which are in high demand. London Medway also handles a vast array of cargo, including automotive, steel and ro-ro, so we expect a wide variety of commodities to be transported on Finnlines’ versatile fleet, placing the port as a key interchange between the Scandinavian and Iberian markets.”

The company has re-established its Turku-UusikaupunkiTravemünde rotation, this time with the addition of the Port of Rostock. The new service is operated with Finnpulp, offering 3,259 lane metres for cargo.

New direct service Sweden-Far East Asia

COSCO Shipping Specialized Carriers has kicked off a one-per-month route that will see vehicles transported between Gothenburg, Singapore, Xinsha, Tianjin and Shanghai, with room for project cargo as well. Cars made in Sweden and China will flow in opposite directions, with heavy-duty vehicles also transported increasingly more from Asia to Europe. The new service will be operated with COSCO’s latest series of vehicle carriers that are 199.9-metre long and 38 m-wide, each offering a capacity of 7,500 CEUs across 13 decks (four of which are height-adjustable, designed to accommodate high and heavy shipments).

The carriers run on liquefied natural gas. According to COSCO’s own calculations, these gas-run vessels offer 27% CO2 reduction vs conventional fuel propulsion.

“With this service, our Swedish customers can also avoid transshipment in other ports or pre-transportation by road to more distant ports. Overall, this provides significant advantages for those looking to reduce their transport emissions,” added Erik Lund Eriksen, Partner Director at COSCO Shipping Lines Nordic.

The Port of Gothenburg’s Senior Business Development Manager, Richard Mellgren, also commented, “A direct ro-ro line to Asia is a fantastic addition to the port’s overall offering, which really strengthens both the port’s and our customers’ competitiveness. It’s exciting that the service is now up and running and that the initial calls have attracted such strong interest.” In Gothenburg, COSCO’s carriers of the new service berths at the Car Terminal operated by Logent Ports and Terminals (which also takes care of other vehicle services – of Wallenius Wilhelmsen and Höegh Autoliners that connect the Swedish seaport with North America and Oceania & South America, respectively). Lund Eriksen said in this regard, “Gothenburg is an important automotive hub in Northern Europe, but until now has lacked a direct ro-ro connection to Asia. We are very happy to start this service, which is highly demanded by our customers.”

Wallenius Lines buys two ro-ros The 2,774-lane-metre-capacity Thuleland and Tundraland, operated by Wallenius SOL in the Baltic, have left the fleet of Baltic Container Shipping.

The 190.8 by 26.44 metres ships, built at Aker Yards in Rauma in 2006-07, will continue to fly the Swedish flag and remain under Wallenius Marine’s management. They will also carry on sailing under a long-term charter for Wallenius SOL (which is owned by Wallenius Lines and Swedish Orient Line).

Photo: Port of Uusikaupunki

King’s Line scratched – again FRS Baltic ceased sailing between the ports of Sassnitz (Mukran) and Trelleborg with its high-speed Skane Jet catamaran ferry. The company cited increased operational costs as the reason behind the termination. “We have experienced significant increases in almost all operating costs, especially fuel. In addition, significant new expenses were added, such as CO2 taxes introduced in 2024 and the fairway fees in the Port of Sassnitz,” commented Moritz Bruns, FRS Baltic’s CEO. One day before the announcement, the Swedish Transport Administration carried out an inspection on board Skane Jet, recording 19 points of concern. “We noted several serious deviations against fire protection. There were emergency exits and fire doors that did not follow the regulations. The line sailed with open emergency exit hatches, which affects both fire safety and the risk of water penetration in the event of an accident. It obviously made us extremely worried, including how the routines were followed to operate the ship in a seaworthy and safe manner,” Mårten Dahl, Inspector and Maritime Safety Expert at the Swedish Transport Administration, said to Trelleborgs Allehanda. The newspaper also reported that conditions in the engine room (among others, insulation had been removed from the pipes), the lack of routine manuals, and the crew’s working conditions also caused concern. “Evacuation procedures are vital to this type of ship because you have a very limited time in the event of an accident. You must be able to evacuate the vessel as soon as it only catches fire,” Dahl added.

Bruns also commented to Trelleborgs Allehanda on the inspection, “The very same day, we corrected 17 points that we received criticism for, checking off one of the two remaining afterwards. We are working on the insulation. Our experts do not fully agree with the Administration on what insulation type is necessary. But they are the ones who decide, so we have to comply.” The, originally launched in April 1897, King’s Line was closed by Stena Line in the spring of 2020; the coronavirus pandemic put forth as the nail in the service’s coffin (plus the significant loss of freight volume over the preceding years). In the autumn of the same year, FRS Baltic re-established the crossing, replacing Trelleborg with Ystad.

Later, the company returned to the former Swedish seaport.

Another (elderly) ferry leaves the Baltic The Greek Paxos Island Maritime has taken over Mercandia VIII from Öresundslinjen, with the 1987-built (by North East Shipbuilders in the English Sunderland) ferry leaving Landskrona, where she was laid up as a reserve ship for Piraeus. The 95.8 by 15 metres ro-pax, renamed Corfu Star, offers room for about 400 passengers and 290 lane metres for wheeled cargo/cars.

16 | Baltic Transport Journal | 5/2024

MAP NEWS Aarhus and Gothenburg included in MSC’s Swan Service In February next year, MSC will put in motion its new Far East Asia-Northern Europe container rotation, with the ports of Aarhus and Gothenburg included in part of the Baltic Sea region. The weekly service will connect the ports of Ningbo, Shanghai, Xiamen, Singapore, Le Havre, Rotterdam, Gothenburg and Aarhus before going back east through Port Klang, again Singapore, Laem Chabang, Vung Tau and Busan. The transit time between Shanghai and Gothenburg is to be 40 days.

ONE reshuffles its North Sea-Baltic feeder service As of 20 October 2024, the Scandinavia Baltic Express (SBX) loop, served by two container ships, connects the ports of Antwerp, Rotterdam, Fredericia, Gdynia, Rauma, and Gävle, with the Polish seaport enjoying two calls per week.

The former SBX set-up comprised the ports of Wilhelmshaven (EUROGATE), Hamburg (HHLA’s Container Terminal Altenwerder), Fredericia (Fredericia Container Terminal), and Gdynia (Gdynia Container Terminal of Hutchison Ports).

Photo: Gdynia Container Terminal

AI-powered end-to-end automation for seamless port operations.

MSC to have its own terminal in Denmark The Group’s container terminal operator, Terminal Investment Limited (TiL), has signed a deal with the Port of Aarhus for leasing around 170 thousand square metres at the now under construction Omniterminal.

The facility is scheduled to be up and running by 2027, meaning Aarhus will have two full-fledged sea container terminals then (the other being APM’s). “We are pleased that the MSC Group and TiL see the Port of Aarhus as an attractive port and are now choosing to invest in establishing a container terminal. This provides businesses with more opportunities to trade with the world, strengthens our competitiveness, and reinforces our role in ensuring Danish supply to the benefit of businesses and Denmark,” underscored Thomas Haber Borch, the Port of Aarhus’ CEO. Søren Toft, CEO of MSC, also commented, “The Port of Aarhus offers a good location for the future network plans we have made. We will be introducing a direct mainliner between Asia and Aarhus next year and, in combination with our own terminal, we can provide our customers with a practical logistics solution.”

100+

Gates live

2.5M+

Container moves tracked

121K+

Rail Wagons processed www.atai.ai 5/2024 | Baltic Transport Journal | 17

VENTURE FORTH VATTENFALL-KASKINEN OWE MOU • The Swedish multinational power company and the Finnish seaport put their pens to a memorandum of understanding (MoU) at Windenergy Hamburg 2024 to investigate the latter’s suitability in the development of offshore wind energy (OWE) projects of the former, off Finland’s coast.

“Signing this memorandum of understanding with the Port of Kaskinen is an important step for the Korsnäs project [1,400 megawatts of capacity], as it outlines the potential collaboration between the project and the port. This includes the potential use of the port for the logistics and construction of the wind farm, as well as the operation and maintenance of the wind turbines,” highlighted Klaus Nissen, Project Director at Vattenfall.

Patrik Hellman, the Port of Kaskinen’s CEO, added, “We are glad to be able to sign this MoU with Vattenfall. The Korsnäs wind farm is very close to Kaskinen, and, therefore we see it as a very important step to collaborate with Vattenfall. It will enable us to proceed with the planning for offshore wind farm projects in all directions with stakeholders and co-operatives.

Such a project like Korsnäs will be a major positive impact for the region and the port and would create hundreds of new job opportunities.” •

Photo: Port of Kaskinen

STOCKHOLM’S OPS FOR CRUISERS GOES ONLINE • On 17 September 2024, TUI Cruises’ Mein Schiff 7 was the first to draw power from what Sweden’s capital port calls the country’s first high-voltage onshore power supply (OPS) facility set up specifically for international cruise ships. “The inauguration of Sweden’s first onshore power connection for cruise ships is an important milestone in creating a premium destination for sustainable cruise traffic, both in Stockholm and throughout the Baltic Sea region. Cruise ships can now connect to electricity from the quayside, greatly reducing their impact on the environment,” commented Jens Holm, Chair of the

Ports of Stockholm’s Board. According to the port company, at least 45% of cruise ships calling to Stockholm can now draw power from the shore with 100% green electricity. Together with three other Baltic seaports – Aarhus, Copenhagen-Malmö, and Helsinki – the Ports of Stockholm have received EU funding for OPS investments, with one of Stockholm’s facilities also securing support from the Swedish Environmental Protection Agency’s Climate Leap initiative.

The Ports of Stockholm aim to reduce shipping emissions in its port areas to zero by 2040. •

CMP’S CONTAINER TERMINAL IN DENMARK GOES GREEN – AHEAD OF TIME • Copenhagen Malmö Port’s (CMP) box-handling facility in the Danish capital has fully switched to hydrotreated vegetable oil (HVO100) as well as green electricity to run its quay and yard machinery. The port company started with phasing in HVO100 for operating terminal tractors, empty container handlers, and forklifts. CMP’s new hybrid straddle carriers were next, followed by older models. Meanwhile, the terminal’s ship-to-shore gantries and work vehicles have already been running on electricity sourced from renewables. Switching to HVO100, which replaced some 286 thousand litres of fossil diesel consumed by CMP in Copenhagen annually, will result in reducing CO2e emissions by 640 tonnes/

year. Originally, it was planned that the full phasing-in of HVO in Copenhagen would not take place until the commissioning of the new container terminal at Ydre Nordhavn in 2025. CMP intends to make its own operations zero-emission by 2025 and climate-positive by 2040 (in accordance with the Science Based Targets initiative).

“Over the course of 2020-2023, CMP has reduced its CO2 emissions in its operations (greenhouse gas scope 1+2) by 68%. This corresponds to an annual reduction of 1,477 tonnes of CO2e. In Malmö, HVO100 has already been deployed by CMP, which has reduced CMP’s emissions by more than an estimated 840 tonnes of CO2e annually,” the Danish-Swedish joint port authority said in a press release. •

SWEDEN TO HAVE AN ELECTRIC PILOT BOAT • The Swedish Maritime Administration has partnered with Artemis Technologies from the UK to construct a zero-emission, 31-knot-max speed electric pilot boat that will also employ the latter’s hydrofoil eFoiler® technology. The vessel, which will be put together by the Swedish Vaxholm Komposit, will sail in Stockholm’s archipelago. “Our eFoiler® technology represents the future of maritime transport, and

we are excited to deliver a vessel that aligns with Sweden’s bold vision for a fossil-free maritime industry [the Swedish Maritime Administration plans to become fossil-free by 2045 at the latest]. The Artemis EF-12 Pilot boat will not only be emission-free in operation but will also deliver the high performance, reliability, and efficiency needed for such a critical function,” highlighted Dr Iain Percy OBE, CEO of Artemis Technologies. •

DSV BUYS VOLVO E-TRUCKS • The Danish transport and logistics firm has purchased 300 electric trucks from the Swedish manufacturer, including the Volvo FH Aero Electric with improved aerodynamics. The agreement also includes 500 Volvo trucks with fuel-efficient diesel and gas drive lines.

All trucks are expected to be delivered between 2024 and 2026.

DSV plans to run a fleet of 2,000 e-trucks by 2030. The company 18 | Baltic Transport Journal | 5/2024

already runs Volvo electric trucks in Denmark and Sweden, having established charging stations in its distribution centres in Horsens and Landskrona (with electricity coming from photovoltaics). DSV has set a near-term goal to reduce scope 1 and 2 emissions by 50% and scope 3 by 30% in 2030 vs 2019 baseline. The company intends to become net-zero by mid-century. •

VENTURE FORTH UNIPER AND LIQUID WIND ENTER E-METHANOL CO-OP… • The German energy company has teamed up with the Swedish e-fuel firm to develop the NorthStarH2 project in the Municipality of Östersund in Central-Northern Sweden. The partnership will see the set-up of an e-methanol production facility that will convert biogenic CO2 (some 160 thousand tonnes/year) and renewable

electricity into 100kt of e-fuel/y for the shipping and chemical industries. Earlier in January 2024, Uniper partnered with Jämtkraft, which is developing a biomass-fired cogeneration plant in Lugnvik (slated for completion by 2024’s end) at which CO2 will be captured for the NorthStarH2 project. •

…WHEREAS ØRSTED SHELVES FLAGSHIPONE • The Danish energy company has stopped working on the 50 thousand tonnes of e-methanol/year production plant in the Swedish Örnsköldsvik. Ørsted shared that the European market for green fuels is developing too slowly, and it won’t speed up in the short-tomedium term, meaning that scaling up thus lowering prices won’t be possible for the business to become economically attractive.

Olivia Breese, CEO of Ørsted in Europe, said to Dagens Logistik, “We have experienced a lack of interest in long-term offtakes at realistic prices and commercial scale, partly due to insufficient regulatory incentives for the offtakes. Without this demand, it is impossible to create value through scale-up and cut costs at the level we need as a large-scale developer.” Instead of green fuels for the shipping

sector, Ørsted now plans to focus on the renewable hydrogen market in Northern Europe. The FlagshipOne project was initiated in 2017 by Liquid Wind, with Ørsted taking over in December 2022.

The production facility was to be set up on the grounds of the biomass-fired combined heat and power plant Hörneborgsverket, operated by Övik Energi, from which FlagshipOne was to source CO2 for e-methanol production as of 2025. Notwithstanding the foregoing, Liquid Wind is working on other ‘Flagships:’ the 130kt/y ones in Sundsvall and Umeå, both scheduled to come online in 2027.

The company also eyes an e-methanol production plant outside Sweden, in the Finnish Haapavesi, following a letter of intent signed with Kanteleen Voima and Piipsan Tuulivoima in December 2023. •

BIOLNG PRODUCED AT HAMINA LNG • Rohe Solutions, the Finnish subsidiary of the Estonian Alexela, has added the liquefaction-from-the-grid process in the terminal in the Port of Hamina, using it to produce (in collaboration with Hamina LNG) liquefied biomethane (bioLNG). “The availability of bioLNG in Finland is currently still limited, as larger-scale biogas production projects are only in their early stages. Liquefaction from the grid is our response to the growing demand for biofuels, especially in the short term,” highlighted Sanna Kokkonen, CEO of Rohe Solutions. She furthered, “The potential of bioLNG has been recognised in maritime and road transport, as well as in industry. We see this as the first step towards replacing LNG in Finland and its neighbouring areas with produced bioLNG.” The first batch of bioLNG liquefied at the Hamina LNG terminal was sent to Estonia to Alexela’s refuelling stations.•

Photo: Rohe Solutions

EFO-ATOB@C SHIPPING GREEN CO-OP • The joint venture of Swedish energy companies has partnered with the also Swedish, Ystad-based arm of the Finnish ESL Shipping to reduce the carbon footprint of its sea transports. The initiative will involve substituting 10% of the annual fuel consumption of EFO’s shipments with renewable alternatives, resulting in a projected 8.5% reduction in lifecycle emissions. In addition, the companies have agreed to implement virtual arrival as a standard operational practice to optimise the speed of the vessels when there is a known delay in port. On average, the solution has reduced voyage emissions in AtoB@C Shipping’s traffic by 11% in the sailings it has been applied for. Upon

announcing the cooperation on 10 September 2024, already two voyages were carried out with 100% renewable fuel. The contract saw AtoB@C Shipping’s plug-in hybrid Electramar unloading cargo in the Port of Oxelösund. “We are pleased to have found in AtoB@C Shipping a shipping company that not only shares our long-term vision but has also provided us with a tangible solution today to begin reducing our emissions immediately,” shared Andreas Ukmar, CEO at EFO. Frida Rowland, Commercial Director at AtoB@C Shipping, added, “We are excited to partner with EFO in advancing greener shipping practices.

Renewable fuels are crucial in mitigating shipping emissions.”•

ESL SHIPPING ORDERS NEW FOSSIL-FREE HANDYSIZES • The Finnish shipping line has entrusted China Merchants Jinling Shipyard (Nanjing) with constructing four hybrid, multi-fuel vessels in a €186 million investment that also includes an option for more newbuilds. The 17,000-tonne-deadweight, 150 by 23.77 metres, 1A Ice Class freighters will enter traffic between Q3 2027 and Q1 2028. The ships will have the possibility to run on hydrogen-based e-methanol or biomethanol. “The design of the vessels and comprehensive model tests have been carried out together with the leading Finnish ship designer Deltamarin and the Swedish SSPA model test facility.

ESL Shipping has been closely involved in the design of the vessels

to ensure that they are fully tailored to meet local customer needs.

The majority of key equipment, such as powertrain, including battery hybrid drive, cargo handling equipment, and many other leading technologies come from European companies,” ESL Shipping underlined in a press brief. The company’s Managing Director, Mikki Koskinen, added, “Our strategy is based on sustainability leadership and our unique ability to develop and provide a reliable infrastructure for the ice-bound Nordic green transition industries.

We have developed these state-of-the-art, highly flexible multifuel vessels in close cooperation with our industrial partners.” • 5/2024 | Baltic Transport Journal | 19

WHAT’S IN THE CABINET Transport in the European Union.

Current trends and issues – released The European Commission (COM) has published an overview of the latest developments in the EU transport sector.

“Transport is crucial to our economy, with 1.3 million public and private companies employing 10.2 million people and providing goods and services across the EU. From 1995 to 2019, the volume of transported goods increased by 41%, and the transport of passengers grew by 33% before the COVID-19 pandemic caused a temporary drop,” COM said in a press brief. The report is aligned with the EU’s Sustainable and Smart Mobility Strategy, outlining the current situation on the block’s path to reduce its transport greenhouse gas (GHG) emissions by 90% by 2050. The report also covers transport resilience, emphasising the need for recovery investments to modernise and green the sector, strengthen the Single Market and complete the Trans-European Transport Network (TEN-T) while ensuring safe and secure mobility. For each EU country, the publication provides an overview of key transport indicators, including the structure of TEN-T, modal split, railway sector market opening, road safety, uptake of alternative fuels, and GHG emissions.

Clean Maritime Fuels Platform – launched The European Community Shipowners’ Associations (ECSA), Fuels Europe, the eFuel Alliance, Hydrogen Europe, the European Waste-based & Advanced Biofuels Association (EWABA), and the Methanol Institute have teamed up to enhance communication between the shipping sector and future fuel producers. Their Clean Maritime Fuels Platform has been tasked with identifying common challenges and possible solutions revolving around the implementation of the Fit for 55 package and the transition to a net-zero economy by 2050. The Platform will focus on policies (e.g., the EU ETS) and tools (including opportunities for funding) to support the production and uptake of clean maritime fuels in Europe. “The recently published Draghi report on the Future of European competitiveness identifies shipping as one of the most difficult sectors to decarbonise, requiring around 40 billion in annual investments between 2031 and 2050. The report highlights that while the EU is a world leader in sustainable renewable and low-carbon fuels for the decarbonisation of transport, it has limited installed capacity and planned production. The EU needs to start building a supply chain for clean fuels, or the costs of meeting its targets will be significant,” the Platform’s founding parties underlined in a press release. Sotiris Raptis, ECSA’s Secretary General, added, “Today, the shipping and energy industry join forces and launch a dialogue platform that can facilitate a better flow of information about the common challenges we are facing. We need all hands on deck to make the energy transition happen. In order to meet our targets, we need clean fuels available in the market in sufficient quantities and at an affordable price.”

Photo: Port of Gothenburg

Ship Financing Portal – online The European Commission’s Directorate-General for Mobility and Transport has launched the repository in question to boost the maritime sector’s green transition by improving its access to various financing means. The SFP centralises access to a variety of pan-European, shipping industry-relevant financing products, providing up-to-date details on available grants, loans, and other financing products administered by the EU, its 20 | Baltic Transport Journal | 5/2024

Member States, and private financial institutions. “The European Commission invites all maritime stakeholders, including small- and medium-sized businesses, financial institutions, and other organisations, to explore the Ship Financing Portal and take advantage of the diverse financing opportunities available. This initiative underscores the EU’s dedication to fostering a sustainable and competitive maritime sector,” said the block’s executive arm in a press release.

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BTJ Trip 2024 \ the Port of Jakobstad-Pietarsaari

Ready to rock

by Przemysław Myszka One could say: another autumn, another BTJ Trip to Finland! When leaves started turning red & gold last year, we had the pleasure of visiting Kaskinen, Naantali, and Helsinki. This time around, we headed even further north to Jakobstad-Pietarsaari. It is a bilingual town that specialised in many trades across the centuries, including tar, tobacco, beer, matchsticks, and chicory. Jakobstad was also known for shipbuilding, with the bark ship Herkules out of Jakobstad-Pietarsaari being the first Finnish ship to sail around the world (1844-1847); making ships is still going strong in the area, especially if you have a spare million euros (or 40 of ‘em!) for a luxury sailing yacht or a catamaran. Nowadays, the Port of Jakobstad-Pietarsaari’s about 1.5 million tonnes of annual cargo turnover is mainly comprised of cellulose, timber, paper, as well as cement, lye, and solid & liquid chemicals. The seaport also takes care of trailers and containers brought & taken aboard Wallenius SOL’s largest ro-ros of the Enabler class. Jakobstad-Pietarsaari is readying itself towards major quay expansion to handle bigger volumes coming to & from the just over-the-fence UPM’s cellulose factory and sawmill (its Pietarsaari Mills is one of Europe’s largest pulp mills), the Alholmens Kraft Power Station (the world’s largest biomass co-generation plant), and other bigger & smaller enterprises gathered under the umbrella of the over-one-billion-euros-of-yearly-turnover co-op organisation Alholmen Industrial Park.

G

etting from Northcentral Poland to Jakobstad-Pietarsaari is relatively easy (surely our other Przemek had more logistic hurdles when trying to reach Kaskinen in 2023), though a bit lengthy space- and time-wise. With a long stopover in Copenhagen from Gdańsk, I reached Helsinki via plane in the late afternoon on the 24th of September. Fortunately for anybody who fancies riding on a train (which gives the added benefit of admiring the lovely Finnish nature), there’s a direct one from Finland’s capital to the Jakobstad-Pedersöre station (from which Juha Hakala, the port’s Managing Director, picked me up – thanks again!). The return journey, also by rail, took me to another seaport (and capital) city, Turku, for a return flight directly to the Gdańsk Lech Wałęsa Airport.

En route from Jakobstad-Pedersöre to the Port of Jakobstad-Pietarsaari, Juha and I had the opportunity to chat about the cultural characteristics of the region, with the majority of the inhabitants speaking Swedish, and his background (Juha’s family used to run their very own sawmill). In the port authority office, I also met Johanna Heinoja, the seaport’s Technical Manager.

The trio of us then sat for a comprehensive presentation that went through the particulars of the Port of Jakobstad-Pietarsaari’s past, present, and future.

The seaport today…

The Port of Jakobstad-Pietarsaari spans over 93 hectares, of which 55 are on land and 38 on sea. It offers 927 metres of quay wall – apart from the longest 502-metre section of Laukko I (152 m), Laukko II (150 m), and Laukko III (200; all of them 11-metredeep), there’s also the Cement (100 m; now 24 | Baltic Transport Journal | 5/2024

Photos: Port of Pietarsaari

BTJ TRIP with an automated ship handling pipe), South (165 m), and Buskö (160 m) quays (all offering 7.4 m of depth). Buskö and Laukko I feature ro-ro ramps, 22.5 and 29-metrelong, respectively. Just next to Laukko III sits the chemical terminal of Wibax, offering 46,100 m3 of tank storage capacity for, among others, caustic soda used by the paper industry. The facility is quay-connected via underground pipes.

As a port heavily geared towards handling all sorts of forestry products, Jakobstad-Pietarsaari is thick with warehouses: 55,000 m2 in total (21k m2 operated by Euroports, 20k m2 – Timberpak, 8.0k m2 – the port authority, and 6.0 m2 – UPM).

In 2023, the Port of Jakobstad-Pietarsaari received 253 ship calls, making it possible to handle 1.31mt (+14% year-on-year), out of which exports accounted for 939kt and imports the remaining 370kt. Despite stevedores supporting a country-wide strike this spring, which essentially wiped out an entire month of cargo handling in Finnish ports, the year-end outlook looks promising for Jakobstad-Pietarsaari; likewise, the prospects for 2025 are optimistic. This year, the seaport also welcomed a German NATO visit, which saw one hundred military vehicles going via Jakobstad-Pietarsaari’s quays to and from a ro-ro vessel.

By far, pulp is the prime commodity going out through Jakobstad-Pietarsaari, making for some two-thirds of all export traffic, followed by sawn timber and paper. In the opposite direction, over half of imports are made of pulpwood, with lye and cement, respectively, completing the podium. The export/import ratio changed significantly throughout the years. For example, in 200003, exports dominated, only for imports to reign Jakobstad-Pietarsaari’s freight traffic for the next decade. After an even year in 2013, the balance tilted in favour of exports again.

Also, up in the North of the Baltic, weather can certainly put its two penn’orth in port operations. While Finnish stevedores are accustomed to working when everything around them is thickly covered in snow, the sea ice conditions can limit what ships can call a port. Interestingly, though, in spite of climate change, the conditions can vary sharply from year to year. The previous season was demanding for Jakobstad-Pietarsaari, with shipping lines having to send 1A ice class vessels of at least 4,000 deadweight (dwt) most of the time. In contrast, the 2022-23 winter was far less challenging (1B, 2,000 dwt).

… and tomorrow While the port authority functions as a landlord, it also takes care of ship mooring, 5/2024 | Baltic Transport Journal | 25

BTJ TRIP

Photo: Port of Pietarsaari

provides clean water, receives waste, and secures the port area. Euroports Pietarsaari (still referred to as Botnia Shipping by many locals) is responsible for the bulk of stevedoring, forwarding, ship clearance, chartering, and agency services. The company’s machine fleet consists of one 100-tonnelifting capacity mobile harbour crane from Gottwald and three hydraulic gantries of Mantsinen and Sennebogen (another 140t mobile harbour crane, this one a Liebherr,

belongs to the port authority). Kraftline provides pilotage services with the use of two ice-breaking tugs (Bock and Simson) and is also engaged in forwarding, ship clearance, chartering, and agency services.

Apart from the above, the Port of Jakobstad-Pietarsaari is in charge of infrastructure investments, both on- and offshore.

The authority recently, in 2021-22, invested in new warehouses (16k and 28k m2). Three years ago, SITECO finished replacing

the port’s lighting with LEDs (plus an intelligent system that keeps the lights on when & where they’re needed). The year 2020 saw the strengthening of the Buskö and Laukko I quays, which made it possible to handle even heavier project cargo, most notably components for wind energy projects. Years 2016-19 were another period of adding storage capacity: 4.0k and 18k m2.

In 2015, the Port of Jakobstad-Pietarsaari completed the 2011-launched-9.0-to-11metre-max-ship-draught fairway dredging project, which allowed to welcome freighters with up to 90% more cargo on board.

In 2009, the half-a-kilometre Laukko was added to the quay wall. On the digitalisation front, the Port of Jakobstad-Pietarsaari uses the Port Activity App for real-time ship calls, which smoothens stevedoring and spares the environment idle-at-anchorage emissions.

Concerning hinterland connectivity, Jakobstad-Pietarsaari witnessed the electrification of the railways going to/from the port as well as the setup of a triangular junction from the nearby trunk line (meaning that trains don’t have to take a 100-km-long roundabout way anymore to directly reach the seaport also from the south). On average, Jakobstad-Pietarsaari handles one train

Photos: Kraftline

Photo: Przemysław Myszka

26 | Baltic Transport Journal | 5/2024

BTJ TRIP

Photos: Przemysław Myszka

Photo: Wikimedia Commonsjpg

per day. The seaport also has a special road connection with the nearby facilities of UPM, thanks to which exceptionally long, wide & heavy (up to 100t) trailer transports can swing between the two.

Looking ahead, the Port of Jakobstad-Pietarsaari plans to prolong the Laukko quays by 200 metres (Laukko IV), also adding a yard area capable of handling high & heavy cargo (as well as likely the third ro-ro ramp). The new infrastructure, with a cost of around €50m, will also get a jetty for liquid chemicals. The port authority has already got the design of the new area done & dusted. They will now apply for environmental permits, all in order to be prepared when the port’s clients set in motion their investments.

Whereas the seaport is somewhat restricted when it comes to adding new hectares of

operational space (which could, e.g., house a manufacturing and assembly plant), the authority nonetheless is planning to tap into the much-awaited offshore wind energy (OWE) development boom in Finland. To that end, the Port of Jakobstad-Pietarsaari has been eyeing setting up a base for operations and maintenance for the OWE projects off the country’s coasts (such as OX2’s 150-turbine-strong Laine farm 32 km away from Pietarsaari).

The port has also been investigating installing photovoltaics atop the warehouses it manages. In the meantime, other companies active in the port are, too, looking into greening their business, like investing in hybrid or electric cargo handling machinery (something that will require extensive testing to see how e-gear proves itself in harsh Finnish winter conditions, especially the batteries).

A walk down memory lane The BTJ Trip to the Port of JakobstadPietarsaari came full circle when I went up a gangplank onto the 1960-built Bore, a passenger ship-turned-hotel & museum in Turku. It was part of Jakob Lines’ fleet, a ferry company from Jakobstad-Pietarsaari that connected the town’s seaport with Kokkola, Skellefteå, Umeå, and Örnsköldsvik in the times of tax-free ferrying (1969-91). Bore (also under her other name Borea) is commemorated with paintings that hang on the walls of the JakobstadPietarsaari’s port authority (together with other ferries of Jakob Lines). Though the cabin was super small, there’s was no better way to dot the i’s and cross the t’s of this port visit than with a sleepover aboard a veteran Baltic ferry!

5/2024 | Baltic Transport Journal | 27

Why a single shipping company won’t turn the tide of the fuel market – but the industry at large can (if it only wants to, with the help of policies and other sectors)

We don’t need a winner

by Ewa Kochańska Wärtsilä’s Sustainable fuels for shipping by 2050 – the 3 key elements of success report outlines what actions are needed to ensure that green fuels become mainstream in the maritime sector within the next three decades. “The future is in our hands,” states the report, pointing to decisive policies, industry-wide and multi-sector collaboration, and individual action as necessary for positive outcomes in decarbonising maritime transport. The report underscores that even though future fuel timelines can be provided – based on data collected and careful analysis – the outcomes will be most influenced by action or lack thereof today.

P

resently, most vessels are powered by heavy fuel oil (HFO) or marine gas oil. A 2020 study by the International Maritime Organization (IMO) estimated that, without intervention, CO2 emissions from shipping could rise by over 45% by 2050.

On the other hand, achieving net-zero emissions by that year would require about $5 trillion in investments for fleet renewal and equipment upgrades. It is clear that full electrification is not a viable solution for all maritime transport, as long-distance travel would require a lot of energy without refuelling options. While measures like reducing vessel speed by 30% and maximising energy efficiency could cut energy demand by 15-27%, the sector cannot completely decarbonise without transitioning to sustainable fuels.

Viable fuels and their cost According to the market analysis conducted for the report, biofuels (derived from inedible plants, organic materials like wood, or leftover agricultural products) are first in availability and are expected to see substantial expansion by the 2030s. This category includes biofuels 28 | Baltic Transport Journal | 5/2024

similar to diesel, biomethanol and biomethane (as well as bioethanol, which is already produced in large quantities, particularly in Brazil and the US). For biofuels to remain environmentally friendly, they must be derived from sustainable biomass sources such as waste fats, oils, and greases, ensuring they do not compromise food security or land availability.

Following are blue fuels, such as blue ammonia, emerging as transitional options due to their easier scalability compared to zero-carbon alternatives. These are made using fossil fuels, but the carbon generated during production is captured and stored. Blue fuels are fit for the existing infrastructure and resources of the oil and gas industry.

Last will be green synthetic fuels, which are expected to become more widespread by the late 2030s or early 40s. These fuels, produced from hydrogen generated via electrolysis and powered by renewable energy, hold strong potential. Production is likely to be concentrated in regions with ample space and beneficial environments for solar and wind energy.

However, it is worth noting that for operators to seek the one best fuel among

the ecologically sustainable choices could be a mistake. “Shipping doesn’t need a [fuel] winner – it needs a mix of fuels to cater to the different requirements of the whole industry,” underscores the report.

Concerning the financial aspect, Wärtsilä’s projections suggest that by 2030, sustainable fuels will be 3-5 times more expensive than currently are fossil fuels. Nonetheless, it is important to keep in mind that comparing future sustainable fuel costs to today’s fossil prices does not account for new regulations (already being implemented) that raise fossil fuel costs. Policies, such as the EU Emission Trading System and the block’s latest sector-specific Regulation, FuelEU Maritime, could create price parity between fossil bunkers and sustainable fuels as early as 2035. That, combined with the impact of efficiency measures and increased investment in sustainable fuel supply chains, should result in a change in cost dynamics in the sector.

The report also highlights that to achieve full decarbonisation by 2050, the shipping industry will require approximately 270 million tonnes of alternative fuels equivalent to HFO. Aside from the

SUSTAINABILITY Sustainable fuels roadmap to 2050 Fossil fuels

Biofuels

HFO

BIO

Blue fuels

NH3

Produced from non-edible crops or natural products such as wood, or agricultural residues.

2023

IMO TARGET: EEXI, CII

2025

2030

IMO TARGET: 20% GHG reduction

Green fuels

NH3

MeOH

Produced from hydrogen made through electrolysis, using renewable energy.

Produced using fossil fuels, with carbon captured and stored during the fuel production process.

2040

IMO TARGET: 70% GHG reduction

MeOH

2050

IMO TARGET: 100% GHG reduction

Average vessel lifetime 25-30 years Targets based on latest MEPC80 regulation (referring to Well-to-Wake emissions) HFO: Heavy fuel oil. NH3: Ammonia. MeOH: Methanol

sizable fuel supply, the sector will also require significant investments in fuel infrastructure, new ships, and equipment upgrades across the global f leet. DNV estimates that annual spending will need to range from $8 billion to $28 billion on ships and $28 billion to $90 billion on scaling up production, fuel distribution, and bunkering infrastructure to meet the demand for carbon-neutral fuels by mid-century.

To help achieve carbon-neutrality in maritime, there needs to be a coordinated effort between policymakers, industry, and operators to drive the systemic changes needed for advancing production, infrastructure, supply chains, and technology for sustainable fuels. The shipping industry can learn from the global power sector’s shift to clean energy, where collaboration helped scale new solutions. For instance, photovoltaics were considered the costliest way to reduce carbon emissions in 2014, but it became the cheapest source of electricity just six years later. Solar and wind have rapidly become the most cost-effective electricity sources in just a decade, driven by clear and ambitious policies that enabled largescale development and cost reductions.

Investment in sustainable fuels, regulatory incentives, and growing demand can stimulate supply and reduce fuel costs.

There is no ‘I’ in ‘team’ One of the biggest challenges to shipping’s decarbonisation efforts is ambivalence. Operators struggle to choose a fuel due to limited production and uncertainty over which technology will scale more efficiently. Simultaneously,

•

fuel producers hesitate to increase production without assured demand. This uncertainty leaves shipowners, fuel producers, and other transport and logistics stakeholders in a state of inaction.

However, with proper policies that aim to provide stability and are implemented quickly, sustainable fuel production will accelerate, breaking this cycle.

Wärtsilä’s report lists several steps that policymakers can take to scale up sustainable fuel use in the maritime sector.

First, to deliver certainty and stability, they should establish an internationally agreed upon, science-based pathway to phase out fossil fuels in alignment with IMO targets. This will provide operators with a consistent global timeline for planning investments and signal suppliers to ramp up sustainable fuel production.

Second, adopting a global standard for marine fuel carbon pricing and reinvesting CO2 tax revenues into the shipping industry will boost cost competitiveness, eventually achieving parity with fossil fuels and encouraging the development of sustainable alternatives.

Finally, increasing global collaboration between governments on innovation and infrastructure is essential to the widespread delivery of sustainable fuels.

This can be achieved by participating in initiatives like the global Zero-Emission Shipping Mission or by working closely with the IMO to set global standards, ensuring a level playing field and avoiding regulatory disparities.

Industry collaboration is of pivotal importance, too. The report underscores that no single ship operator can generate enough demand to scale

sustainable fuels; collectively, however, the industry can inf luence global markets. Owners-operators need to unite on the importance of low-carbon options.

Additionally, decarbonisation requires the involvement of the entire ecosystem, including carriers, ports and terminals, manufacturers, shippers, investors, and energy suppliers. While smaller operators, who form a large part of the industry, often lack the resources to invest in sustainable fuels, larger f leet owners have the means to do so.

There is an opportunity to merge resources to scale sustainable fuels across the industry rather than just in isolated areas. Although some smaller carriers are advancing in areas like electrification, the broader sector risks falling behind if they are not included in decarbonisation plans. By pooling purchasing power through sector-wide procurement agreements, multiple operators can combine their demand, leading to lower fuel prices, reduced supply chain costs, and streamlined administrative responsibilities. Further, the industry should focus on sharing skills and knowledge by creating a centralised knowledge hub. Such a centre, supported by global maritime organisations like the IMO or the Getting To Zero Coalition, would allow smaller operators (who may not be able to have dedicated sustainability teams) to access the tools and expertise to plan for sustainable fuels.

This collective approach will also help build consensus on preferred fuels and signal demand to producers, ensuring that shipping secures a significant portion of the limited supply. This is important 5/2024 | Baltic Transport Journal | 29

SUSTAINABILITY framework would clarify the fuel grade requirements for each sector, optimising production (and hence adding to producer profits) and increasing availability across international markets.

Photos: Wärtsilä

because the sector will compete for sustainable fuels with other sectors, like aviation, industry, and long-distance trucking, all of which are on their own decarbonisation paths, too. This competition could limit fuel availability for shipping and keep prices elevated for an extended period. However, if the shipping industry is proactive, it can position itself as a leader by quickly establishing infrastructure and supply chains and adopting cleaner fuels on a large scale.

At the same time, collaboration with the mentioned sectors can increase fuel supplies for everyone. These relationships should not be competitive since they all share a common goal of establishing low-carbon fuels as the norm and 30 | Baltic Transport Journal | 5/2024

should work together to build supply chains. The report gives an example of cooperation between the aviation sector, which requires the highest grade of fuel, and shipping, which can use lower grades while still reducing emissions.

With proper guidelines, producers could create both fuel grades in the same production process, benefiting both sectors and generating demand while encouraging suppliers to invest with confidence in the growing demand from both industries. By working together with agendas like the International Civil Aviation Organization, the shipping industry can help establish a globally recognised framework for the production and distribution of sustainable fuels. This

Acting now Even though the report uses its modelling to offer the most accurate forecast, it is not possible to foresee all potential disruptions affecting the sector, such as supply chain issues, pandemics, global conf licts, and natural disasters, to name but a few. Therefore, the report includes key steps that individual operators can take to reduce emissions and prepare for future fuels.

First, it is crucial to prioritise efficiency by assessing each vessel’s capacity to implement measures that quickly lower fuel consumption and emissions.

Short-term actions, like optimising ship speed and performance, can significantly reduce carbon footprint and prepare for the eventual use of more expensive zero-emission fuels. Combining efficiency measures with technologies like improved propulsion, wind-assisted sailing, and weather routing can further increase savings. This approach is the most straightforward way to meet emission targets and could achieve the entire 20% reduction required by the IMO by 2030 while also protecting against future fuel cost increases.

In addition to that, the IMO’s new Carbon Intensity Indicator (CII) rating scheme, effective from January 2023, makes efficiency a financial necessity.

Vessels above a gross tonnage of 5,000 must annually submit ratings based on CO 2 emissions per cargo capacity and distance travelled. A poor CII rating decreases the vessel’s commercial value, makes it difficult to win contracts, and increases its fuel costs. Additionally, new regulations like the Energy Efficiency Existing Ship Index and the Energy Efficiency Design Index set minimum energy efficiency standards for existing and newbuilds, respectively. The FuelEU Maritime goes a (crucial enforcement) step further by penalising non-compliance and awarding those who invested in emission-reduction solutions.

Second, the report warns that investing in the wrong technology could lead to stranded assets if a more competitive fuel or solution emerges later on. That is why investing in fuel-f lexible engines that can operate on multiple bunkers or be converted later can pay off in the long

SUSTAINABILITY

Photo: Wasaline

run. Already, with alternative fuel supplies still limited, many operators are opting for engines and fuel systems that can run on both sustainable and fossil fuels, allowing them to continue using traditional bunkers until a moment when the switch is necessary. The technology is rapidly emerging, too. In November 2023, Wärtsilä Marine introduced the world’s first four-stroke ammonia engine, which can immediately reduce greenhouse gas emissions by over 70%. According to the report, ammonia, as a key alternative fuel, is now at the forefront of the push toward zero-carbon emissions.

Similarly, in 2022, the Wärtsilä 32 Methanol engine and MethanolPac storage and supply system were launched – the first commercial solutions for using methanol as a marine fuel. By December 2023, four additional methanol engines were added to the lineup, all capable of significantly cutting the carbon footprint compared to traditional fuels while also

greatly reducing nitrogen and sulphur oxides plus particulates.

And lastly, operators should “think upstream” – consider the entire supply chain when planning for future fuel needs. They can ensure sufficient fuel availability and protect their assets by applying their knowledge and expertise in future fuels to upstream supply challenges. For example, the container sector can leverage its experience with methanol engines to enhance fuel supply chains, boosting confidence across the industry.

When policy, industry, and individuals come together According to Wärtsilä’s report, shipping will decarbonise with strong policies, industry collaboration, and proactive efforts from owners-operators.

Effective policies will enhance the cost competitiveness of sustainable fuels and signal the demand needed to increase production.

The proliferation of skills and knowledge through industry-wide cooperation is crucial, as it will empower individual companies to turn uncertainty into a competitive edge and reduce operational costs by investing in efficiency and adaptable technologies concerning fuel options.

It is undeniable that sustainable fuels are on the horizon, driven by the IMO’s Marine Environment Protection Committee’s recently revised regulations as well as the EU. While energy efficiency measures offer immediate benefits, they will not suffice for long-term goals. The industry must quickly adopt sustainable fuels, with the success of this transition depending on current actions undertaken by stakeholders.

Lessons from the energy sector show that rapid scaling and cost reductions are possible when policy, industry, and individual actors collaborate to create predictable demand.

5/2024 | Baltic Transport Journal | 31

How to bunker liquefied hydrogen – safely

Understanding the whole picture

by Simen Diserud Mildal, Lead for Green Shipping Technologies, Norwegian Maritime Authority, and Torill Grimstad Osberg, Senior Principal Approval Expert, DNV As the maritime industry seeks to reduce its greenhouse gas (GHG) footprint and transition to zero-emission fuels, hydrogen emerges as a promising option. The Maritime Technologies Forum (MTF), comprising leading classification societies and flag state administrations, has developed draft guidelines to address the complexities and safety concerns associated with liquefied hydrogen (LH2) bunkering. The latest report covers key aspects of the safe and efficient use of hydrogen as a marine fuel, and particularly how bunkering can be done in a way that minimizes safety concerns. The report has also been submitted to the 10th meeting of the International Maritime Organization’s (IMO) Sub-Committee on Carriage of Cargoes and Containers to support the discussion on completing the body’s guidelines for using hydrogen as a fuel.

I

MO has set ambitious targets to reduce GHG emissions from ships, aiming for net zero by 2050. Hydrogen, with its zero-emission potential, is a viable candidate to help achieve this goal. However, the maritime sector has limited experience with hydrogen, both as cargo and fuel. The MTF’s project aims to bridge this gap by drafting the first version of guidelines for the safe bunkering of LH2.

Hydrogen itself – and its impact on materials and other particles Hydrogen’s unique properties present both opportunities and challenges. It is highly flammable, with a wide flammability range (4-75% in air) and a high flame speed, increasing the risk of detonation. Hydrogen is also colourless and odourless, making leaks difficult to detect. Additionally, its small molecular size leads to high permeability and the risk of hydrogen embrittlement in metals. The extremely low boiling point of liquefied hydrogen (-253°C) necessitates careful material selection and extensive insulation to prevent equipment damage and ensure safety.

32 | Baltic Transport Journal | 5/2024

At -253°C, both oxygen and nitrogen in the air can condense and freeze. As such, one of the new aspects associated with LH2, compared with the bunkering and operation with liquefied natural gas (LNG), is the risk of condensation and freezing of air both inside and outside the piping systems. If oxygen or nitrogen is present inside when LH2 is introduced, it can freeze and clog the systems, causing valves or other components to fail. The extremely low temperature of liquid hydrogen can also cause air to condense on the outside surfaces of piping and equipment. This can result in the formation of liquid oxygen, which poses a significant fire hazard due to its high reactivity. In addition, the accumulation of ice can lead to mechanical stresses and potential damage to the equipment.

These risks require meticulous design and operational procedures to mitigate. The use of more automated bunkering processes is one way to avoid air ingress. It may also be necessary to avoid the use of nitrogen for inerting after each bunkering operation. To prevent the condensation and freezing of air on the outside of the systems, more extensive

use of vacuum insulation will be necessary.

Liquid oxygen is highly reactive and can cause materials that are normally non-flammable to ignite and burn, so drip trays for collection of any frozen air is another relevant safeguard to help make sure that it does not reach organic materials.

The critical components & considerations Currently, there are no specific international standards for LH 2 bunkering. However, ongoing developments in ISO standards and experiences from the Norwegian ferry Hydra provide valuable insights. Hydra has been successfully conducting LH 2 bunkering operations since April 2023. The solutions applied there offer practical reference.

IMO is also working on guidelines for the safe design of ships using hydrogen as fuel, with a target completion date of September 2024. These guidelines will focus on ship installations up to the bunkering manifold, but the details of bunkering operations are not within their scope. The work conducted by MTF aims

SUSTAINABILITY

GUIDELINES FOR THE DEVELOPMENT OF LIQUEFIED HYDROGEN BUNKERING SYSTEMS AND PROCEDURES

to fill this gap by providing relevant recommendations for safe bunkering of LH 2 .

An LH 2 bunkering system consists of several critical components. First, the bunkering station: open facilities are preferred to allow for rapid dispersion of hydrogen in case of leaks. Dry disconnect type of bunkering connections should be used, like for LNG. Second, the bunker piping system: the high permeability of hydrogen

leads to a need for careful material selection to prevent embrittlement and leakage.

For handling the low temperatures, the piping system requires more extensive use of vacuum insulation, not only for the pipes but also for valves and hoses. Third, safety equipment: gas and fire detection systems of diverse types, as well as rapid emergency shutdown systems, are essential to ensure safety during bunkering operations.

The bunkering process for LH 2 is more complex than for LNG due to hydrogen’s unique properties, requiring taking into account a few key considerations. First, emergency shutdown: rapid shutdown capabilities are crucial to prevent accidents. The emergency shutdown system should be activated from both the supplier and receiver sides and should not cause gas or liquid release. Second, purging: unlike LNG, nitrogen may not be a good choice for purging LH2 systems due to its freezing point. Instead, vacuum pumps and helium gas can be used to ensure the system is free of air and hydrogen before connections and disconnections. If nitrogen purging is applied, the complete removal of nitrogen traces will be a necessary part of the bunkering process. Third, personal safety: personnel involved in LH2 handling must wear appropriate personal protective equipment to protect against extreme cold and potential leaks. Automated processes are recommended to minimize human intervention.

Given the complexities of LH2 bunkering, crew training and certification are paramount. The safety management system should be updated to address the additional safety aspects of LH2 bunkering. Training programs should emphasize the unique properties of hydrogen, including its cryogenic temperatures and flammability.

Moving forward – in a safe manner The use of LH2 as a marine fuel presents significant challenges but also offers substantial benefits in reducing GHG emissions. The newly proposed draft guidelines provide a framework for the safe and efficient bunkering of LH2, addressing the unique properties and risks associated with hydrogen. The main learning is that the bunkering systems and procedures as applied for LNG-fuelled ships cannot be copied directly due to the different properties of LH2.

The development of vessel-specific procedures, enhanced safety measures, and rigorous training programs are essential to mitigate the risks associated with LH2 bunkering. By fully understanding the special risk picture with LH2 and taking care to move forward in a safe manner, the maritime industry can pave the way for a cleaner, more sustainable future, and these guidelines will support the safe adoption of LH2 in maritime operations.

MTF is a forum of flag states and classification societies established to provide technical and regulatory expertise to benefit the maritime industry. The role of the MTF is to work together on research that it publishes for the maritime sector and draw on regulatory expertise to be able to offer unbiased advice to the shipping industry. The flag state administrations include Maritime Bureau, Ministry of Land, Infrastructure, Transport and Tourism, Japan; the GUIDELINES FOR THE Norwegian Maritime Authority; the Maritime and Coastguard Agency, UK; and the Maritime and Port Authority of Singapore (MPA).

DEVELOPMENT OF members are ABS, DNV, LR, and ClassNK. Visit maritimetechnologiesforum.com to learn more.

The classification society LIQUEFIED HYDROGEN BUNKERING SYSTEMS AND PROCEDURES

5/2024 | Baltic Transport Journal | 33

How carbon units can help to decarbonize supply chains

Insetting doesn’t have to be upsetting

by Bertil Duinhower, CEO and Co-founder, CarbonLeap There is no quick and easy solution that all companies can implement to decarbonize their supply chains. Not every owner-operator can afford to invest directly in proven technology to reduce emissions from their vessels. Zero-carbon alternatives to hydrocarbons are not widely available across transport networks, making it difficult to switch to using technology that supports them. For manufacturers, retailers, and their shippers, using alternative clean energy sources for heavy road and marine transport in their supply chains could help them cut emissions. Yet, today, these are too frequently difficult to access, in the wrong place, or too expensive for a single operator to develop on their own.

F

aced with this challenge, efforts by forward-looking operators to find ways to reduce the carbon footprint of their supply chain operations have run into two problems. First, there is a credibility gap, where stakeholders simply do not believe the claims made of effective decarbonization. Second, there is a barrier to wider action on decarbonization by the whole industry at a scale that could be effective.

Sharing the costs & benefits Decarbonizing supply chains needs to move forward more quickly, but the limited availability of clean energy for transport has hampered progress so far. Carbon insetting offers a way for the sector to work together and share the costs and benefits of action on decarbonization. Carbon credits that are secured in their own (or an adjacent) supply chain offer cargo owners and shippers an effective and low-cost way to lower their net carbon emissions and progress their energy transition. However, trust and transparency are essential to the success of this system.

Carbon insetting creates a mechanism to share the responsibility and cost of decarbonization across the market so that investments in technology and fuel can be made where they are the cheapest. Businesses that have invested in technology can monetize the carbon reductions they have achieved over and above their statutory obligations and corporate objectives by selling them as carbon credits. This reduces the cost of their investments, allowing the customer to claim emission reductions in their supply chain.

As part of a market in voluntary carbon credits, insetting can be a highly efficient route to decarbonization that allows 34 | Baltic Transport Journal | 5/2024

organizations to support the reduction of their scope 3 emissions. But, it is essential that businesses buying monetized carbon reductions can trust that the carbon units they purchase are verified, well-sourced, and do not double-count reductions. The carbon units need to be credible, offering value for money. Without these assurances, customers will reject carbon insetting as an approach, reducing investment available to first movers and hampering progress towards decarbonization.

Choosing in confidence Carbon units must be independently and transparently verified, assured and witnessed by a third party. In addition, such a verification process should be standardized to transparent and universal rules to ensure carbon units are assessed to the same standard in the same way. For many carbon units, however, this isn’t the case.

Simply creating the carbon unit for someone to invest in is a hugely complex process.

For buyers who want to be able to compare carbon units from different suppliers and be confident that they are getting what they pay for, sourcing and buying carbon reductions can be daunting. At CarbonLeap, we recognize this challenge for buyers; by making carbon units more transparent, we aim to simplify a complex process and help businesses drive forward their decarbonization ambitions.

A standardized set of rules for verifying carbon units would bring greater transparency to the market. It would reduce the information asymmetry between the suppliers of carbon units, low-carbon energy suppliers and users of clean technologies, and the buyers of carbon units who want to reduce

their environmental impact. While suppliers of carbon units will have invested in technology to cut their emissions, accurate verification of the carbon reductions achieved, measured against a standardized counter factual baseline, is essential for building trust and transparency in carbon units.

Carbon units need to be packaged and securitized to allow customers to trust that they are getting value for money. At CarbonLeap, we connect the supply and demand sides of the market, helping to build trust across the parties. Our team of experts act as intermediaries, supporting the supply of carbon units by applying their knowledge, specialization and skill to identify and build a deep and wide network of carbon unit suppliers from among the global transport industry. We have built a network of carbon unit suppliers that includes clean energy suppliers and clean technology OEMs, as well as shipowners, freight forwarders, cargo owners and vessel charterers. Working with independent experts to provide verification and assurance of the carbon saved by each of these suppliers, we have created a pool of carbon units that the buyers we work with can choose from in confidence. Our independence in this process is an important part of our ability to work with all parties to bring affordable carbon units to market that help facilitate the energy transition.

Tech-secured Our knowledge of high-quality carbon units available in the market means we can securitize carbon units and provide reassurance to buyers, who may have limited time and resources to research for themselves, that they are not paying exaggerated prices for their carbon units.

SUSTAINABILITY

It is important that carbon unit buyers make sure that the price they pay and the volume of carbon units they purchase are accurate and verifiable. This can be a complex process. At CarbonLeap, we have recruited blockchain to make this simpler and more reliable by providing a secure digital record of your transaction from end to end.

All carbon unit transactions we complete for our clients are recorded using blockchain-enabled technology in an unalterable and transparent ledger,

which means the emission reductions that a carbon unit represents cannot be duplicated. The units are delivered to the buyer in a secure digital transaction, and a certificate for proof of reduction is issued, helping to build trust and confidence in voluntary carbon markets and the use of carbon units from insetting.

Faster and at a lower cost Carbon insetting allows companies operating in related supply chains to collaborate

to realize a faster and lower-cost route to decarbonization. Globally, transport relies on fossil fuels for over 90% of its energy. For the sake of the planet, we must act now to reduce transport’s carbon footprint.

CarbonLeap is working with suppliers, buyers, and independent verifiers to bring essential accountability and transparency to the market. By creating confidence that carbon units are fairly priced, we can carry forward the fight against climate change more quickly.

Seeking to reduce your scope 3 emissions? Look no further, as CarbonLeap is committed to guiding you through this journey. We will work closely with you to understand your specific needs and align them with appropriate sustainability solutions. Our strategy involves collaborating with a network of partners who facilitate CO2 reductions in parallel to your supply chain. The beauty of this approach? You benefit from these carbon savings without needing to alter your operational processes. Go to carbonleap.nl to learn more.

5/2024 | Baltic Transport Journal | 35

How hard- and software retrofits can help older tonnage get back in (ship)shape

A new lease on life

by Fitzwilliam Scott The latest BERG Propulsion project to upgrade the fuel economy and emission performance of a Germanflagged short-sea container ship on charter to CMA CGM has exceeded expectations when it comes to the efficiency of older vessels. A 2007-built feeder has been redelivered as one of the most efficient vessels of its type, according to its owner, following a DNV-approved retrofit and upgrade project requested by the charterer.

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he leading shipping and logistics group asked German owner Reederei Rambow to undertake a comprehensive package of efficiency optimisation measures on board the 868 TEUs of capacity Henneke Rambow to match current and anticipated fuel efficiency and emission performance requirements.

The joint project saw CMA CGM and Reederei Rambow work with BERG Propulsion to realise a series of efficiency gains, after BERG undertook a holistic review and data-based analysis of the ship’s propulsion system (including its existing propeller). The assignment is the latest in a series of BERG retrofit projects which help older ships enhance their efficiency and respond to expectations on carbon intensity. “The Henneke Rambow project is an effective example of collaboration between owners, charterers, and systems integrators, working together to optimise ship performance,” commented Mathieu Gubert, VP Chartering CMA CGM. According to David Sakandelidze, Account Manager, Energy & Efficiency, BERG Propulsion, “As well as ensuring that the ship maintained its competitiveness, efficiency, and sustainability for the years to come, the brief was to achieve performance gains without altering the vessel’s existing operational profile.”

Surgical interventions With Henneke Rambow consistently operating below the service speed envisaged at the time of its delivery, BERG’s systematic review focused on optimising the propulsion solution for fuel economy. The project saw new BERG propeller blades installed that are hydrodynamically optimised for the vessel’s 36 | Baltic Transport Journal | 5/2024

full operational profile. The owner’s retrofit project also included optimisation of the ship’s bulbous bow for a revised operational matrix. However, where systems were concerned, BERG’s chosen approach focused on maintaining as much of the original equipment as possible, making what Sakandelidze described as “surgical interventions” to optimise performance for lower speed. He also shared in this regard, “A challenging path from the engineering and planning perspective can lead to solutions and implementation that keeps things simple and retains as much original equipment as possible. It’s an approach that pays off on many levels.”

Key upgrades included the installation of a net frequency stabiliser as part of Henneke Rambow’s power management system to improve power system efficiency without compromising functionality or the ship’s existing safety measures. This allows the shaft generator to operate at variable speeds while still providing a stable frequency and voltage to the main switchboard in order to ensure efficiency without compromising operational versatility.

Sakandelidze described the retrofitted BERG MPC800 propulsion control system as the “brains” behind integrating the new features in a solution which also features the company’s Dynamic Drive technology.

The MPC800 controls shaft line propellers, thrusters, and associated systems in all ship types: integrated with Henneke Rambow’s four-stroke engine, the solution enables optimal propeller operations at all shaft speeds. Dynamic Drive enables setting upper limits for vessel speed or fuel consumption by optimising propeller pitch and revolutions per minute (rpm). If fuel is

the priority, the algorithm selects the rpm/ pitch to optimise engine performance.

With the International Maritime Organization’s Carbon Intensity Index increasingly factoring in vessel performance considerations for owners and charterers, Sakandelidze emphasises that integrating these performance upgrades required almost no modifications to the existing electrical equipment on board. Sven Rambow from Rambow Bereederungs summed up by saying, “Following this upgrade, Henneke Rambow is demonstrating a remarkable performance improvement, which ensures that this vessel will be one of the most efficient of this type for the decade ahead.”

Remaining highly competitive “The vital role smaller container ships play in global logistics can sometimes be overlooked, but in this case, the enhanced performance is extraordinary, with our data indicating that the overall post-project efficiency gains are substantial,” underscored Magnus Thoren, Account Manager, Energy & Efficiency, BERG Propulsion.

He furthered, “By taking care of the total propulsion solution, BERG has worked as the service and technology partner with CMA CGM as charterer and Rambow as a well-known owner so that a valuable asset remains highly competitive.”

Apart from Henneke Rambow, BERG has undertaken a series of other retrofits focusing on optimising older ships to ensure that they remain competitive in the era of carbon intensity monitoring and emission trading. Earlier this year, the specialised ship manager Chemfleet confirmed that the IMO II tanker YM Miranda had achieved

SUSTAINABILITY

Photos: BERG Propulsion

around 10% in fuel savings after replacing the ship’s existing control system with BERG’s MPC800 technology. Chemfleet has decided to upgrade three additional 6,970 deadweight (dwt) sister ships with the system in a solution that will also integrate BERG’s Dynamic Drive Software.

Other recent examples where BERG’s Dynamic Drive technology has been specified include the Dutch shipbuilders from Ferus Smit, who will deliver 10 newbuildings to the Swedish owner Erik Thun. Here, the integrated drive solution has been selected on the basis

of its ability to help save 10% of fuel – rising to 20% in some operational conditions – across four 5,100 dwt ‘Troll-Max’ dry cargo vessels and six 7,999 dwt coastal ‘Eco Tankers.’

In a recent retrofit where BERG’s MPC800 was already on board, the Oslo-based Bulkship Management worked with the supplied on a straightforward ‘EPL for EEXI’ power limitation solution across 10 ships trading in US Gulf and Caribbean waters.

EPL’s limiting effect on the ship’s BERG MPP950 CPP brought DNV acceptance of the system’s performance as an effective EPL

solution. Bulkship has now confirmed installation orders across nine more vessels.

“While there is no one-size-fits-all solution, BERG is helping ship owners by assessing potential efficiency improvement options during this transitional period in ship decarbonisation,” said the company’s Martin Linder, Sales Manager, Energy & Efficiency.

“We are working closely with ship owners to deliver on their energy efficiency needs, whether they are working through the EEXI and CII transition, focusing on fuel efficiency, or leading the way on decarbonisation.”

Starting out from a small Swedish shipyard in 1912, BERG Propulsion retained that Viking heritage of hard work, skilled craftsmanship, and tireless urge to explore with a focus on the future and love for the sea. Nowadays, the global-reach company designs and manufactures controllable-pitch propellers, azimuth thrusters and transverse thrusters, as well as vessel control and manoeuvring systems, and supplies both hybrid interface and integrated hybrid electric propulsion solutions. Sail to bergpropulsion.com to learn more.

5/2024 | Baltic Transport Journal | 37

The secret ingredient in low-carbon ship design

CHEK it out!

by Mia Elg, R&D Manager, Deltamarin My previous article was about understanding the big picture and the future of heat processes in shipping. This time, we move from pure heat systems to ship machinery and energy system analysis, with some examples from our newly concluded EU-funded project CHEK (which will always have a special place in my heart, largely because of the people in our great ‘CHEK family’ and that it was also the first EU-project for me personally). I oversaw Deltamarin’s part of the project from planning to execution, so I think that it deserves a moment of detailed reflection.

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may have sometimes mentioned in my writings that our sailing boat is the primary residence of our family during the summer, and we’ve just got back from this year’s adventures. As I happen to have the strongest ‘sea legs’ in the crew, I usually spend a considerable amount of time inside the boat cooking for everyone, no matter the weather. This also inspired me to serve you this read as it is fresh from the development oven!

Can there be too many cooks in the galley?

The CHEK project was about decarbonising long-distance shipping. Together with 15 consortium partners, we had three years to develop and study two conceptual designs: a cruise ship and a bulk carrier. The goal was to reduce greenhouse gas emissions by 99%, plus achieve at least 50% energy savings compared to Energy Efficiency Design Index (EEDI) phase 2 requirements.

One of the most visible outcomes of the project to the public was probably the installation of two sails on board an existing bulker. In addition to this and many other milestones, the CHEK family managed to fulfil the key goals, and the project itself was listed by the European Commission as a Research and Innovation Project success story. Therefore, even if not every day of working on it could have been called pure pleasure, I have to say that the project was indeed a winner.

I think that the CHEK set-up resembled a typical ship design project: we had a wild mixture of various technical alternatives to be considered. In general, it seems like both the scientific community and the industry agree that there is no single best fuel or technology that would serve as a silver bullet for decarbonisation. Therefore, the new normal for any ship design project is that we have numerous fundamentally ship-changing alternatives on the table early during the 38 | Baltic Transport Journal | 5/2024

conceptual design that should be analysed.

To be more concrete, on top of the ‘traditional design task,’ each new ship design project is facing a new set of requirements.

Three main questions arise at the very beginning. First, what is the fuel for the ship that will be considered at the start of its operation, and which fuels should the ship be ready to bunker in the future? Second, which major energy-saving or emission reduction-related technologies should be included in the ship? Third, what powertrain and machinery incorporate the previous two items, bringing the best performance out of the entire system?

One of the leading ideas in CHEK was to explore these three fundamentals as a synthesis, considering a typical operational pattern for the case ships. Without a doubt, multiple variations and complex modelling meant that our ‘decarbonisation kitchen’ started to get very crowded. Our role in the project was thus very central since it included orchestrating the various solutions in the conceptual designs.

The taste of synergy Our bulk carrier concept reached almost 50% digital energy saving vs a state-of-theart sailing vessel of a similar size. The result was reached as a true symbiosis of technologies and design. The illustration on the next page details one of the comparisons of the propulsion and main engine power in two cases. The figures on the left side are related to a ‘baseline’ ship simulation with heavy fuel oil (HFO) as bunker, while those on the right side illustrate the results of a vessel with a combination of a new hull and energy-saving technologies (the results are illustrated on all global routes that were analysed in the project).

The figures show how the ship propulsion power requirements are reduced from around 6.0 megawatts (MW) to 3.0MW with the combination of various drag reduction

technologies and wind power. Consequently, various hypothetical engine configurations were studied, including a considerably reduced main engine size and a hybrid powertrain. The machinery parameter optimisation contributed to further energy savings.

When modelling the cruise ship energy system, we made interesting findings especially in hydrogen-fuelled machinery. The cruiser was ‘put’ on a Mediterranean route, and the first of the results included simulating the ship with HFO as the main fuel.

Setting aside the EEDI-derived energy consumption scaling, the results were approximately 21% fuel saving with a combination of various technologies. When modelling machinery operated with pure hydrogen but otherwise a similar technology set available for the ship, the results showed 27.5% less fuel energy consumption than a baseline vessel. Several factors in the energy system contributed to this: improvements in the ship power plant efficiency alongside lower heating requirements for a hydrogen-fuelled vessel (leading to lower boiler utilisation and the release of more waste heat for heat-toelectricity conversion).

One generic discovery in CHEK (and in many other projects we have carried out) is that a ship’s true power requirements en route are often considerably below its installed capacity. With the CHEK bulker, for instance, the reference main engine size was 9.5MW. The results illustrate how increased energy efficiency will push down the power requirements even further compared to a standard ship. Moreover, the example simulations did not even consider the impact of weather routing or other voyage optimisation possibilities, which can further contribute to fuel savings.

Let’s have the cake!

In the CHEK project, our special focus was on ship energy systems and their modelling. Introducing single equipment or design

SUSTAINABILITY The decarbonisation recipe à la CHEK1

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A longer version of the recipe with insightful pictures can be found in the notes from the 2023 & 2024 HIPER conferences (training videos are also available)

changes – especially a fuel switch – has a holistic impact on a ship’s energy system.

When integrating several onboard energysaving technologies, there is an impact not only on the entire energy system but also between the new pieces of equipment. Since regulations are pushing for reduced emissions from ships, we will eventually have new clean fuels on board. These bunkers are more expensive – or alternatively, the ship operator or owner will pay for polluting. Either way, energy-saving is ‘the’ way to commercially survive and beat the competition.

When I entered this business, the energy system modelling was merely seen as the ‘icing on the cake’ rather than a game changer. Nevertheless, now amidst various decarbonisation solutions and developing legislation, ship energy system modelling and its related analysis should be seen as a new but important ship design discipline. The simulations can enable correct dimensioning of the equipment, such as ship machinery and fuel storage.

In my view, studying design variations on the energy system level, as we did in CHEK, is a highly useful screening step in any project. It is done to identify the solutions that we want to proceed with in a more holistic naval architectural analysis and ship design integration on all levels. The energy simulation also enables later comparison of expected performance with the measured data from the ships, providing a platform for design validation.

Finally, we simply cannot afford to skip the analysis of the combined effect of our design choices. Sticking to the traditional way of dimensioning vessel fuel storage and propulsion machinery with extensive design margins leads to continuously increasing costs for the ships. I believe that the winners of the future will be those who dare to take the next step in pushing for optimised operation and dimensioning the machinery to perform best under the most typical conditions.

Deltamarin is one of the leading companies in ship design and offshore engineering in the world. Services are offered from concept development and engineering to project management during shipbuilding and commissioning as well as a wide range of services for operating vessels to maintain the fleet in excellent condition or even upgrade it. The company has invested extensively in developing sustainable and cost-efficient designs both for cargo and passenger vessels. Please check www.deltamarin.com for more info.

5/2024 | Baltic Transport Journal | 39

Maintaining the stability and continuity of the global grain supply

Risk in bulk

by Neil Dalus, Risk Assessement Manager, TT Club As an insurance provider, TT Club understands the importance of managing risks, especially when it comes to the transportation and storage of grain. The maintenance of a safe and stable supply of this vital resource that feeds countless millions is a critical international concern. Moisture, temperature changes, pests, and other factors can all pose significant threats to the commodity’s quality.

All grains’ journey from farm to market is filled with potential hazards. By implementing robust risk management practices, however, we can ensure the stability and continuity of the grain supply chain.

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ncreasing amounts of grain are now being shipped around the world in containers and in other cargo transport units (CTU). Across all modes, the use of these flexible units can have particular risks attached. Through diligence, innovation, and collaboration, we can overcome the challenges and secure the prosperity of the grain industry for years to come.

Key risks Boxes are a popular, cost-effective method for the transport of bulk commodities such as grain. While there are efficiencies in transporting grain this way, standard general-purpose ISO containers are not designed to carry bulk cargoes, meaning additional procedures are required to do so safely.

Distortion of containers can affect their structural integrity. When stacked on board ships or at terminals, there is a potentially increased risk of stack collapse in extreme cases. Bulged boxes can also cause damage to container carrier cell guides and adjacent units, resulting in operational delays.

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Where false bulkheads and labelling have not been utilised, personnel opening and discharging the container may be at increased injury risk as the bulk cargo bursts out of the container upon opening the doors.

Containers may be overweight or overloaded, given the dense properties of grain; capacity is restricted by mass rather than volume. The container, when fully packed with the cargo being transported, should not exceed the rated maximum gross mass of the unit (to ensure that it is not overloaded) as well as any intermodal weight restrictions applicable through the entire journey (when the unit would be overweight).

Eccentric load distribution, most commonly caused through inappropriate filling operations but also potentially during rough intermodal movements or handling, can lead to vehicle overturns or derailments.

Grain cargo spilt on board ships can result in significant problems for the ship’s bilge system. The associated cleanup can be complex and costly.

The grain consignment itself can get contaminated from unclean container

units tainted by previous cargo residues and noxious materials.

Given the nature of the cargo, there is an inherent risk of introducing unwelcome pests into the supply chain and, ultimately, to the destination country. Some pests, such as the Khapra Beetle, can remain hidden in voids within the container for several years.

Moisture damage Claims relating to wet damage to cargo are all too frequent, especially with grain and other bulk consumables. Many of these can be avoided entirely with a welldesigned pre-loading condition-checking procedure. While humidity and condensation are inevitable challenges through the supply chain, pre-existing CTU damages should be an easy check.

TT Club claims data for 2020 suggest that 25% of wet cargo damage was caused by water ingress to the CTU through preexisting damage that probably should have been identified as part of the cargo packing process. Once cargo has entered the intermodal supply chain, our claims data

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Photo: Canva

suggest that a further 17% of wet damage claims stem from impact damage to the unit during transit.

By mode, TT Club’s data indicates that the greatest risk is posed by the maritime mode, which accounted for 65% of the reported claims. This is in part explained by the length of time that the shipment is in transit – extending the period of exposure – in addition to the different climatic zones through which the cargo is moved.

Road transit was the next most prominent mode at 14%, where shorter journeys, fewer intermodal changes, and operator-owned units likely influenced the better experience.

Causation varied but included damage occurring to or within the storage facility itself and, with increasing frequency, the incidence of flooding. Burst piping or malfunction of a sprinkler system accounted for 42% of storage-related wet damage claims.

However, 31% of these incidents followed sudden heavy rainfall that overcame drain provisions. This latter point highlights the importance of routine maintenance to ensure that drains and drainpipes are clear and undamaged, as well as indicating the prudence of carrying out periodic risk assessments to ensure that original building design parameters remain appropriate.

Changing climatic risk Everyone is well aware of weather conditions in their locality; those with responsibility for operating cargo facilities are likely to be acutely conscious of local climatic changes. Many will have seen tidal surges, high winds, and unprecedented rainfall intensity become more common. Operators of warehouses, terminals, and port areas need to keep ‘fresh’ their assessment of the risk profile in relation to their changing climate in order to protect personnel, operations, equipment, fixed property and infrastructure – and, importantly, customers’ goods.

Understanding of the changing climate is advancing, and the related technologies to assist in managing risk are equally widely available. The capability to monitor, record, and predict weather patterns will continue to develop. None of this will physically protect your operation, but it may inform better decision-making when utilised as an integral component of your ongoing climate risk management.

Typically, wind strength is most ferocious in coastal areas. However, it is often the surge and flood risk that can cause greater problems, both on the coastline and further inland. Moreover, recent months have seen

extraordinary volumes of rainfall over short periods in various parts of the globe, resulting in flash flooding and causing significant damage, including to warehouse facilities and cargo stored within them.

That more rain fell on a particular day than any other in recorded history does not assure legal defence if a claimant can demonstrate deficiencies in your operational risk assessment or inadequacies in the steps you took in advance of the weather event. The associated losses of such incidents can be far-reaching; water is unforgiving and has the ability to penetrate and cause significant damage. Flood water is inevitably dirty, increasing damage, and in many instances also creating health risks.

TT Club claims data over the last three years suggest inland operations were subject to damage in 32% of the cases, illustrating (unsurprisingly) that operations positioned on or near a coast are more susceptible to weather-related incidents (68% of cases).

Some 16% of claims notified through the period involved heavy rainfall that overwhelmed drains and guttering, which gave way to flooding into buildings and storage facilities. Property damage through strong winds was featured in 74% of weatherrelated claims throughout the period.

TT Club specialises in the insurance of intermodal operators, non-vessel owning common carriers, freight forwarders, logistics operators, marine terminals, stevedores, port authorities and ship operators.

The company also deals with claims, underwriting, risk management as well as actively works on increasing safety through the transport & logistics field. Please visit www.ttclub.com for more info.

5/2024 | Baltic Transport Journal | 41

Market- & data-based approach to FuelEU Maritime

The price of pooling

by Albrecht Grell, co-Managing Director, OceanScore FuelEU Maritime represents a whole new level of regulatory complexity for the shipping industry, even as many are still grappling with the challenges of the EU Emissions Trading System (EU ETS). But what is also new about FuelEU is that forward-leaning companies can actually benefit by cutting OPEX and even generating revenue through the compliance pooling option – and this will be determined by pooling prices.

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he latest EU Regulation, with implementation less than three months away, requires shipping companies to adopt unfamiliar metrics for bunkers, emissions and energy to measure the greenhouse gas (GHG) intensity of their vessel operations, with well-towake emissions in CO2-equivalent and total energy usage (including shore power and wind) expressed in megajoules (MJ).

As well as these different parameters for analysis of carbon intensity, FuelEU introduces the new concept of compliance balances, with surpluses and deficits, that will entail various options, including pooling, paying penalties for non-compliance, banking, and borrowing.

A balancing act Compliance balances will be a crucial factor in determining the economic impact of FuelEU as companies seek to meet the initial 2% reduction in GHG intensity from a 2020 baseline of 91.16 CO2e/MJ to avoid the penalty of €2,400 per tonne of very-low sulphur fuel oil-equivalent (VLSFOe). But they must also consider seemingly endless options, such as vessel deployment and fuel selection, to optimise their commercial exposure.

Comparatively, the EU ETS, with issues such as opening of Union Registry accounts, getting access to EU carbon emission allowances (EUAs), and efficiently running the processes between owners, managers and charterers, now seems like a walk in the park!

Much industry attention is now focused on the potential benefits of the pooling option under FuelEU. So what does this entail? When burning bunkers that have a GHG intensity below the threshold stipulated by the FuelEU Maritime Regulation, the so-called ‘compliance surpluses’ are generated. This will be the case for either vessels burning liquefied natural gas (LNG) and liquefied petroleum gas (LPG) or those burning certain biofuels. Vessels running on conventional fossil fuels, on the other hand, will accumulate ‘compliance deficits.’

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Pooling power The pooling mechanism, which is designed to stimulate the uptake of low-carbon fuels, allows over-compliance by greenfuelled vessels to offset compliance deficits for ships burning fossil fuels and thereby generate overall compliance for the combined fleet of pooled vessels – owned as well as third-party ships if these are included in such pools (not to be confused with commercial pools already familiar to the industry).

Through this mechanism, vessels generating a surplus can ‘sell’ this to those with compliance deficits. This means deficit-holders can avoid paying hefty penalties for exceeding the carbon intensity threshold, while those procuring the desired alternative fuels can actually generate additional revenues.

However, the price for selling and buying compliance balances in pools is not regulated, which has attracted criticism from quite a few industry players. Rather, it is left to the individual participants to agree on pricing on a case-by-case basis. If pooled internally within a single shipping company, pricing doesn’t matter much: the penalty avoided will be the benefit generated. But if pooling externally, the financial viability of the pooling strategy will depend on the price agreed for pooling surpluses with deficits.

OceanScore is using a market-based approach to discuss possible price ranges for pools. There are two main aspects here: demand and supply of compliance surpluses and deficits, as well as a cost-based approach to identify upper and lower price limits (within these, demand and supply should move prices in an efficient market).

Supply & demand for surpluses An in-depth analysis has been conducted

by OceanScore of every vessel subject to FuelEU, the fuels burned, and the resulting compliance balances per ship. The results show the initial reduction target of 2% set by the EU has already been partly achieved and effectively reduced to 1.6%.

Most vessels still burn conventional fuels, resulting in a cumulative compliance deficit

of 560 thousand tonnes of VLSFOe for this ‘fleet.’ Only a few hundred vessels, 85% of which are LNG and LPG carriers, generate surpluses, but these surplus volumes are substantial. Their cumulative compliance surplus comes in at 280kt of VLSFOe, leaving a net industry gap of 280kt.

OceanScore data indicates the compliance market likely will be in balance – i.e., the industry-wide threshold set by the EU will be met already in 2025 – based on contracts already entered into for biofuels. Surpluses generated by these operators, plus the LNG/ LPG carrier surpluses, will fuel the compliance pooling markets while at the same time reducing the industry’s compliance deficits.

Voluntary emission reduction schemes are expected to have an insignificant impact on the biofuel volumes used for pooling purposes.

This ample supply of compliance surpluses should prevent the pooling market from being purely driven by scarcity of surpluses; prices will likely not be pushing the upper limit. What is more, large operators – found mainly in container shipping and the cruise business that have the highest exposure to FuelEU – will likely focus on securing neutral compliance balances for their fleets, at least initially, further reducing the compliance deficits by looking for external pooling options.

To sell or not to sell, that is the question To understand where pool prices will land, the cost of alternative courses of action – such as buying compliant bunkers, paying the penalty, banking, and borrowing – needs to be analysed.

In short, no one will pool if the cost of doing so is above the penalty itself. The upper limit of pooling prices will, therefore, be defined by the €2,400 fine, minus some transaction cost and the extra effort to pool, resulting in a price of around €2,300/t/VLSFOe. In a balanced market, the question is how low those offering compliance surpluses are willing to drop their prices. OceanScore has found that – especially if waste-based biofuels are used – trading compliance

MARITIME Surplus-holders could expect that in 2030, after compliance thresholds are lowered, the demand for surpluses to pool will increase substantially, making surpluses scarce and met by substantial demand. If they assume that they could then commercialise their compliance surplus for, say, €2,300/t/VLSFOe, they might opt to bank their surplus rather than selling it ‘below value.’ Given a 10% cost of capital, this would move the equilibrium price up to around €1,400/t, increasing towards 2030. It can, therefore, be concluded that pooling prices over the next five years are likely to fluctuate between €1,400 and €2,300 per tonne of VLSFOe, which is a substantial price range.

Photos: OceanScore

surpluses could still be viable at prices as low as €600/t/VLSFOe. Nevertheless, we should not expect pool prices to drop this

low when introducing a dynamic component with the option to bank surpluses for future periods into the model.

Solid data = solid market position The ability to model different pool prices, which is a feature of OceanScore’s newly launched FuelEU Planner, is crucial for informed decision-making to optimise commercial benefits. This web-based tool also simulates different pooling, payment, banking and borrowing strategies, as well as the financial impact of bunker choices, alternative fuel investments, use of shore power, and different deployment patterns.

Given fluctuating prices, moving fast to secure commercial agreements (formal ones can only be finalised once the compliance balances have been verified in early 2026) for pool places at favourable conditions – depending on the perspective of surplus or deficit-holders – can be a significant lever on financial performance. And contractual agreements based on sound data need to be in place to cover risk, given thirdparty managers remain the Document of Compliance holders under FuelEU. Focusing initially on fleet internal pooling is advisable, as it will eliminate the uncertainties of the pooling market.

It would be risky to assume there will be a rush of undercompliant vessels seeking to pool with surpluses towards the end of 2025.

Given the analytical complexities introduced by FuelEU, solid and granular simulation of different paths of action is of paramount importance. A deviation of just 0.5% in assessing a f leet’s GHG intensity or picking the wrong fuel can lead to wrong assumptions about one’s likely position in the pooling markets, with severe financial implications.

Founded in 2020, OceanScore is a global provider of compliance and data solutions for the maritime industry, with office locations in Germany, Poland, Portugal, and Singapore. Its suite of digital platforms and services is designed to support shipping to successfully navigate emission regulations, facilitating the industry’s transformation towards sustainability. Beyond emissions, OceanScore tracks sustainability, environmental, and reliability of 130,000+ vessels globally, serving the wider maritime ecosystem. Go to oceanscore.com to discover more.

5/2024 | Baltic Transport Journal | 43

Challenging the norms of maritime safety

Is enough being done?

by Osher Perry, CEO & Founder, ShipIn Systems The maritime industry has long been plagued by incidents exposing critical vulnerabilities in safety practices.

The Dali incident in Baltimore serves as a stark reminder of these deficiencies, resulting in significant loss and disruption. This fatal collision raises urgent questions about the industry’s commitment to safety despite existing regulations, training, and audits. Rather than being an isolated event, it highlights systemic issues that call for collective introspection and decisive action toward a safer operational framework.

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he need to reevaluate safety standards has never been clearer, urging the industry to confront the uncomfortable reality of its operational shortcomings. By reflecting on the lessons learned from the Dali tragedy, we can make meaningful improvements across the entire maritime sector.

Until a tragedy occurs InterManager statistics show that casualties in enclosed spaces on ships nearly doubled from 18 in 2022 to 34 last year. This alarming increase reflects not just a failure to adhere to safety protocols but highlights that there are significant gaps in safety best practices within the industry. Such figures underscore the need to address vulnerabilities in maritime operations that would be intolerable in more stringent industries like aviation. It is essential that we tackle these vulnerabilities head-on to protect not only our crews and vessels but also the environment and the communities we serve.

Despite decades of progress in safety training and regulatory frameworks, the industry continues to face a concerning number of significant safety challenges. The unfortunate truth is that many of the factors contributing to such incidents are preventable.

In comparing the shipping sector’s practices to aviation’s, the disparity becomes evident. The latter employs rigorous standards and advanced technologies that proactively mitigate risks. In contrast, maritime safety protocols often fall short. For example, near-miss incidents in aviation typically trigger a comprehensive review of safety protocols; in maritime contexts, similar events often go unnoticed or unaddressed until a tragedy occurs.

Research from Bureau Veritas and the London P&I Club indicates that approximately 65% of propulsion failures can be avoided with today’s technology. This reality raises critical questions: are we doing enough to protect our crews? Are we leveraging available technologies to improve 44 | Baltic Transport Journal | 5/2024

safety standards? The answers lie not only in our willingness to adopt new tools but also in our commitment to fostering a culture that prioritises safety.

At risk 12 times a day Most vessels in the international shipping fleet lack validation systems to track compliance with onboard procedures. The Dali incident should serve as a wake-up call, urging the industry to challenge long-standing operational norms. Unfortunately, some reticence to adopt new technologies remains a significant barrier to improving safety.

Many shipowners and operators continue to rely on outdated practices that fail to address the risks posed by increasingly complex maritime operations. Human error, insufficient training, and a lack of real-time data sharing only exacerbate these challenges.

As vessels grow in size, the burden on shrinking crews increases, while safety tools and systems on board have not kept pace.

ShipIn’s data shows there are roughly 439 safety violations per month per vessel, which equates to the crew putting themselves and their vessels at risk 12 times a day. To improve safety outcomes and prevent future tragedies, the maritime industry must confront these entrenched norms.

Often, the prevailing culture within the maritime industry prioritises operational continuity over safety, resulting in a cycle of under-reporting and overlooking potential hazards. The incident in Baltimore illustrates how hidden safety failures can culminate in disastrous consequences, serving as a critical reminder that we must shift our approach to prioritise safety.

By seafarers for seafarers At ShipIn Systems, we believe technology plays a pivotal role in enhancing maritime safety. Our FleetVision platform is specifically designed to address safety gaps by providing continuous monitoring and real-time data analytics. This artificial intelligence-powered closed-circuit television

system allows for comprehensive oversight of shipboard operations, including navigation, safety, cargo, maintenance, and security. It not only identifies potential risks but also facilitates immediate communication of onboard events, enabling crews to act swiftly to mitigate threats.

FleetVision has achieved a 40% reduction in onboard incidents across multiple fleets and saved approximately $1.87 million annually per fleet of 30 vessels. By analysing over two billion frames of shipboard activity daily, the system identifies risks that may go unnoticed in traditional operations.

For instance, one shipping company facing recurrent navigational challenges implemented FleetVision and subsequently witnessed dramatic improvements in compliance with safety protocols and a decrease in navigational errors.

This proactive approach has led to zero incidents on several vessels within just 180 days of deployment. Furthermore, a case study involving a large tanker fleet demonstrated a 30% reduction in unplanned off-hire days due to improved maintenance standards and early detection of anomalies using FleetVision, saving $2.4m in off-hire costs.

Developed by seafarers for seafarers, FleetVision provides critical support in managing increasing workloads and empowers crews to self-assess and improve safety practices through real-time insights and enhanced decision-making capabilities. This fosters a sense of ownership among the crew, ensuring they are not just passive participants in safety protocols but active contributors to creating a safer working environment.

Robust ship-shore communication A glaring issue within the maritime industry is the lack of transparency and real-time communication between ships and shorebased management. No other industry has so little transparency between the asset and decision makers or such a gulf between the ownership and operational control of the asset. Far better alignment is needed.

MARITIME Proactive risk management is essential. Implementing technologies like FleetVision enhances ship-shore collaboration, fostering a culture of accountability crucial for improving safety standards.

By utilising real-time data, both crews and teams ashore can respond more effectively to emerging risks, thereby reducing the likelihood of accidents.

The Dali incident underscores the need for robust ship-shore communication channels. By leveraging available technology, we can create a more transparent environment where safety concerns are promptly addressed and accountability is upheld.

Safe for all The maritime industry must embrace a cultural shift towards proactive risk management. As leaders in the maritime sector, we have a responsibility to ensure that safety protocols are not just a box to check but a genuine commitment to safeguarding lives. The focus must shift from merely maintaining operational continuity to actively seeking out and mitigating risks.

The moral imperative for change cannot be overstated as the maritime industry faces increasing scrutiny from regulatory bodies, stakeholders, and the public eye. Failure to prioritise safety can result in catastrophic consequences not only for the sector at large but also for the individuals and communities impacted by maritime operations.

This is an opportunity for the maritime sector to set a new benchmark for safety, aligning standards with other high-risk sectors. By prioritising safety, investing in technology, and challenging outdated practices, we can shape a future where maritime operations are not only efficient but also safe for all.

Photos: ShipIn Systems

This gap often leads to critical safety incidents going unreported, resulting in severe consequences. For example, if blackouts are

not immediately reported to shore, the crew may lack the support they need to make informed decisions.

Cultivating a culture of safety The Dali incident marks a pivotal moment for the industry to reassess safety standards. The integration of advanced technologies like FleetVision can bridge the gap in safety protocols and significantly enhance operational efficiency. It is not merely about compliance; it is about cultivating a culture of safety that permeates every level of maritime operations.

Only by embracing such a transformative approach can we hope to prevent future tragedies and secure a safer maritime environment.

ShipIn Systems is the world’s first FleetVision™ Platform, unlocking ship-to-shore collaboration for maritime fleets with visual analytics. The company’s platform proactively alerts shipowners, managers, and seafarers to onboard events in realtime, reducing losses by 40% and increasing efficiency by 8%. By creating a digital bridge between ship and shore, ShipIn provides objective insights into navigation, security, cargo operations, and more. With all monitoring rolling up to an analytics dashboard, the platform makes it easy to benchmark performance, carry out remote audits, and improve the operational ROI of your entire fleet. Sail to shipin.ai to learn more.

5/2024 | Baltic Transport Journal | 45

On course for LNG’s net zero

Eliminating methane slip

by Steve Esau, COO, SEA-LNG Net zero may feel like a far-off goal (or, for some, even an idealistic future), but decarbonisation is both a target we must achieve and one we can realise in the coming decades. Particularly where the marine industry is concerned. In just over five years’ time, the first of the most central International Maritime Organization’s (IMO) targets will be upon us, and maritime must find a way to reduce its greenhouse gas (GHG) emissions by at least 20%. Just two decades later, the industry must achieve net zero and continue to operate in a decarbonised future.

L

iquefied natural gas (LNG) presents a viable, realistic, scalable pathway to achieving key IMO and EU environmental milestones from now until net zero in 2050 and beyond. With LNG, bio-methane, and later e-methane, owners and operators have an immediate and long-term way to reduce emissions – and do so with a commercial and scalable fuel that’s compatible with the existing asset base. For LNG to continue its momentum, attention must be focused on resolving the challenge of methane slip.

LNG today – and in 2030-2050 The uptake of LNG has been increasing at a rapid rate throughout the 2020s, accelerated by its availability, economics, and immediate emission impact. Today, some 590 vessels are on the water operating with the fuel, and over 560 have been ordered to operate with LNG (excluding carriers). LNG bunkering is also available in approximately 185 ports worldwide; by 2025, this figure is due to increase by another 50.

Critically, the marine industry is already looking beyond LNG at liquefied bio-methane – often referred to as bioLNG – to further enhance emission reductions and achieve the IMO’s targets. Liquefied biomethane bunkers are already available in some 70 ports across key trade routes in Asia, Europe, and North America. And in 46 | Baltic Transport Journal | 5/2024

2022 alone, the production of biogas, which is liquefied to make the fuel, grew by 20%.

The Baltic region pioneered LNG as a marine fuel, and its use is widespread in ferries, container vessels, tankers, and bulk carriers, with LNG available in about 30 ports and half a dozen LNG bunkering vessels operating in the region.

Amongst the primary drivers behind LNG’s growing demand is its ability to achieve both immediate and long-term emission reductions. In its current form, LNG can reduce GHG emissions from marine propulsion by up to 23%. This immediately realises the IMO’s target of reaching >20% GHG reductions by 2030. It also reduces nitrogen oxide emissions by up to 95%, improving public health and drastically minimising air pollution – two key factors that are set to feature more dominantly in the decarbonisation discussion in the coming years.

We can see bio-methane as a natural progression along this pathway. Adopting it can get GHG emissions down by as much as 80%; when produced from anaerobic digestion of manure, reductions can be as high as 188% vs traditional marine fuels. Beyond this, e-methane (or synthetic LNG) is fully compliant with the IMO’s 2050 targets and can result in fully carbon-neutral operations, which would see the industry successfully realising a net-zero future.

A core advantage of the LNG pathway is its commercial viability now and in the next two decades. Because LNG, bio-methane, and e-methane can be deployed using existing infrastructure, it’s a lower CAPEX solution in comparison to many other common alternatives.

This isn’t to say that further investments won’t be required as we look even further down the line. We need to accommodate what will likely be booming demand in our supply chain by expanding bunkering infrastructure and access globally. And importantly, we will need to remove the most contested aspect of LNG as a future fuel: methane slip.

Becoming a thing of the past Methane slip is a recognised challenge for the LNG pathway. In short, when the fuel is burned, small amounts of methane may not be combusted and can be released into the atmosphere. However, it’s important to highlight that this is an issue that the industry is aware of and is well on the way to resolving.

High-pressure (HP) dual-fuel engine technologies already exist with virtually no methane slip. For low-pressure (LP) engines, where this remains an issue, continuing innovations by engine manufacturers have resulted in levels of methane slip falling more than four-fold over the past 25 years.

MARITIME Today, approximately 75% of LNGfuelled ships on order have HP engines with effectively no methane slip, and if we continue at our current rate of advancement, it’s likely that this matter will become a thing of the past within the next decade.

In fact, today, we are already seeing a range of methane slip initiatives targeting its elimination. As part of the EU-funded GREEN RAY project, Wärtsilä has piloted technologies on Wasaline’s Aurora Botnia ferry, resulting in further methane slip reductions in one of its most popular and already emission-efficient, dual-fuel LP four-stroke engines.

The Methane Abatement in Maritime innovation initiative (MAMii) has also begun a process of piloting methane abatement technologies to reduce – and eventually eliminate – methane slip. It will also expand collaboration and lobbying with regulators on methane measurement, certification, and validation protocol. To cite one more example, Maran Gas announced the installation of methane measuring and abatement technology in September 2023 on a dual-fuel LNG carrier.

These are only a handful of real-time, real-life examples of rapidly progressing technology. The investment into eliminating methane slip will not only support GHG emission reductions and the realisation of the IMO’s ambitious targets but is also a clear demonstration of the industry’s focus on ensuring the LNG pathway meets its potential.

Waiting is not an option As we near the end of 2024, we are on the eve of the implementation of the FuelEU Maritime, an EU Regulation which will directly regulate the emission intensity of the fuels used on board ships. Failure to comply will result in substantial financial penalties. Coupled with fleet operators receiving their first bills from the EU Emissions Trading System and the ongoing regulatory developments at the IMO, it will make decarbonisation something the industry needs to actively engage with now.

Waiting is not an option.

The pathway from LNG through biomethane and finally e-methane can effectively achieve compliance with global regulations at a relatively low cost, maintaining global supply chains. Where many other fuels face significant hurdles across technological, commercial, and safety viability, LNG can be adopted using today’s infrastructure and proven safe shipboard technology.

The concern around methane slip – a recognised challenge within the industry – is already

being actively addressed through a number of industry initiatives, providing a stronger,

more effective solution for owners, operators, financiers, and crews the world over.

Founded in 2016, with numerous high-profile members including shipping companies, ports, LNG suppliers, bunkering companies, infrastructure providers, original equipment manufacturers, classification societies, banks, and brokers, SEA-LNG is a multi-sector industry coalition whose members work together to demonstrate the benefits of LNG and its variations as a marine fuel throughout the entire value chain. Head to sea-lng.org for more info.

5/2024 | Baltic Transport Journal | 47

Baltic Ports Conference 2024 – the future of ports is now; let’s get strong on it together!

by Monika Rogo, Communication Manager, BPO Cooperation, proactive attitude, and taking action were the main ‘battle cries’ that kept appearing regularly in presentations, discussion panels, and behind-the-scene conversations during the latest Baltic Ports Conference (BPC) of the Baltic Ports Organization (BPO) that took place in Klaipėda on 4-6 September 2024.

The current situation of the regional ports was analysed against the background of geopolitics, trends in shipping & trade, transport policy development, as well as the overall greening and energy transition push.

Day 1 Gabrielė Burbulytė-Tsiskarishvili (Klaipėda University) discussed the concept of geopolitics from a scientific point of view. She mentioned the principles presented in A. T. Mahan’s The Influence of Sea Power upon History (1890) that are still being taught at universities. The book she called the ‘Geopolitical Harry Potter’ (because of its undying popularity and still valid breakdown of the fundamentals) lists: geographical position, physical conformation (including natural production and climate), extent of territory, population, character of the people likewise that of the government (including national institutions). Burbulytė-Tsiskarishvili also underlined the important role of ports as the actors of history, especially in terms of climate change nowadays. Though perhaps an odd question at first, are ports, for instance, ready for the transportation of drinking water, something that may become an increasingly scarce good?

Sandra Baniak (Centre for Eastern Studies) focused on the consequences of the Russian war of aggression against Ukraine. Before the attack, two-thirds of its exports were dispatched via its ports on the Black and Azov seas, including over 90% of its agricultural (solid & liquid) products.

48 | Baltic Transport Journal | 5/2024

The Russian invasion has resulted in some Ukrainian ports being occupied and others blocked, triggering the urgent need to find alternative export routes. In May 2022, the EU established so-called Solidarity Lanes, in which Poland and Romania play key roles. The most important elements of these include Ukrainian ports on the Danube River and the transit operations from these to Romania, as well as by land to & via Poland. Solidarity Lanes ensure the continuity of the export of Ukrainian grain, seed oils, iron ore and steel products, as well as the import of fuel, military equipment & supplies, humanitarian aid, construction materials & machines, etc., via overland routes. Baniak also mentioned the Black Sea Grain Initiative, the Ukrainian Black Sea Corridor, and the return of sea container traffic to Ukrainian shores.

A ‘teaser’ of the next BPO report called How the war in Ukraine impacted the Baltic ports market? was presented by Monika Rozmarynowska-Mrozek (Actia Forum).

The document will show the impact of the war on Baltic ports, likewise how the energy and transport sanctions imposed by the EU on Russia will alter regional trade (such as that of coal, liquids, containers, Ukrainian cargo going through Baltic seaports, and more). Challenges related to land

transport to Baltic ports and the impact of the war against Ukraine on the region’s cruise market will also be included in the report’s final version.

Numerous threats to critical maritime infrastructure were discussed by Professor Timothy Edmunds (University of Bristol).

Among them, he mentioned acts of war, terrorism, grey zones, blue crimes, accidents, and natural disasters. The speaker, however, also gave responses and solutions to these: coordination (including information sharing), rising mutual maritime domain awareness, and balancing between commerce protection and resilience by sharing the risk burden between stakeholders. He also stressed the importance of systematic understanding and mapping of the challenges.

Jörgen Nilsson (Port of Trelleborg) talked about the development of the Swedish seaport, sometimes in an inapparent way. Among others, he stressed the importance of knowing what the actual emissions are in a given port. Trelleborg’s two main climate goals are becoming netzero by 2040 (all-scope emissions are to be reduced by 90% vs the base year 2021; remaining emissions are to be neutralised by carbon storage/offset) and a net producer of green energy (the port must

annually produce more energy from renewables than it consumes until 2035). The speaker encouraged the audience to always think ahead and, what is crucially important, also out of the ‘transport’ box (concerning the latter, the Port of Trelleborg has ‘invested’ in planting trees alongside the truck parking areas and is planning to set up its own bee hives – not because it makes sense from the economic or transport standpoints but because it’s simply good for the environment).

The discussion panel Shipping and port market trends in the BSR and Europe in a short-, medium-, and long-term perspective (2024-2030) opened a debate on current development directions. Vaidotas Šileika (Lithuanian Association of Stevedoring Companies) cited sustainable development and greener logistics as the most important market requirements. Vilius Girkontas (Nordic Investment Bank) marked green transition as an inevitable trend in all fields.

Jonas Nazarovas (DFDS) said that sustainability is a challenge for optimists and a problem for pessimists, whereas Jörgen Nilsson highlighted that the future is already here, and there is really no single ‘silver bullet’ solution, but one always needs to have a few cards up one’s sleeve. Jacob Koch-Nielsen (Stena Line) added that collaboration, digital solutions, data sharing, and transparency are crucial for the change to be real.

The speakers also shared their experiences about working with young(er) generations and indicated how flexibility, adaptation, and good leadership can help bring out the best in both emerging talents and veterans.

Revision of the TEN-T Regulation and its main takeaways for the Baltic and European maritime transport was presented by Steve Wray (Infrata). The speaker focused on the overall increase in competition between TEN-T Corridors to the benefit of the entire logistics chain. He also stressed the pivotal shift involving cutting strategic transport ties with Belarus and Russia to the advantage of the TEN-T growing towards Moldova and Ukraine.

India-Middle East-Europe Economic Corridor (IMEC): significance for the Baltic Sea region was the title of the presentation

by Ambassador Devesh Uttam (Embassy of India to the Republic of Lithuania). In essence, the project is about pulling India closer to Western democracies transportwise, with infrastructure and services that make it easier for the EU and India to trade with each other.

The discussion panel From the Aegean Sea to Estonia – the new transport Baltic Sea-Black Sea-Aegean Sea Corridor (BBA) in context of the new geopolitical landscape saw the panellists trying to predict what will happen when the Russian war ends and Ukraine joins the EU. Gytis Mažeika (Lithuanian Ministry of Transport and Communications) claimed that road transport will be even more important then than it is now and that we should start preparing for this development infrastructure-wise, including by investing in Baltic-Ukraine corridors. Valdo Kalm (Port of Tallinn) noted that we can expect more nearshoring before long, with manufacturing getting back to Europe.

This may be, in his opinion, a real game changer for rebuilding Ukraine postwar. The Baltic might as well benefit, especially its Eastern, production-savvy flank. Daniel Jarnea (Port of Constanța) added that Romania is already working on opening the EU market for Ukraine. Alan Aleksandrowicz (Port of Gdańsk) is convinced that Ukraine will be a huge player and will become a strategic transport hub between Europe and Asia. According to Marina Basso Michael (Port of Hamburg Marketing), there is no way back for Ukraine to what it was before February 2022 and we all need to focus on rebuilding it by creating a new Marshall Plan.

Day 2 Isabelle Ryckbost (European Sea Ports Organisation) kicked off session I, titled Impact of greening and the energy transition on maritime transport in Europe and the BSR, by going through the multitude of drivers and strategies guiding port energy transition. According to her, ports are bigger players than ever before: they transformed from multimodal maritime hubs to hubs of energy, hi-tech industry, circular and blue economies, and partners in building a net-zero, smart and resilient Europe. Future ports will not only be landlords but facilitators, matchmakers, investors, and (co)operators.

Algis Latakas (Port of Klaipėda) presented this year’s BPC host port and its broad & ambitious vision for (green) development. In short, hydrogen production will start in 2026, while onshore power supply is planned for 2026 for ferry operations and two years later also for container ships and cruisers. The start of land reclamation and construction of the Southport is scheduled

for 2026-28, while the beginning of operations in the offshore wind harbour – 2026.

There are also plans to create a new public-friendly cruise ship terminal. Last but not least, this year, the Port of Klaipėda received the Port Environmental Review System certificate.

How ports can be a catalyst for decarbonisation and air quality improvement was a topic raised by Yücel Yıldız (Rightship).

The speaker presented his company’s Maritime Emissions Portal designed to support ports in reducing their emission levels through data-driven insights. The tool combines information from the Automatic Identification System and vessels to identify problem areas, hence highlighting opportunities to reduce environmental impact.

The green port strategy: which technologies offer the highest return on investment in terms of costs and benefits? discussion panel topped this year’s BPC. The debate was put in motion by Rafał Zahorski (Szczecin and Świnoujście Seaports Authority), who underlined that from the perspective of developing ports, it’s not only about investing in solutions and technologies that make operations less burdensome on the environment (and here, Rafał would place his bet on hydrogen), but also in ones and in such manner that doesn’t compromise port competitiveness. Asked about where to start a port’s green journey, Eirik Hooper (Drewry) underscored that it’s impossible to move forward in a truly impactful way without first carrying out a thorough analysis of one’s port. Otherwise, he stressed, one might end up investing in something that won’t deliver the expected results. External help, especially for smaller ports that have their hands full with daily hustle and bustle, can come in handy. Einar Marthinussen (Port of Oslo) agreed and shared his organisation’s path towards pinpointing (together with the City of Oslo) a green masterplan that consists of 17 points that the Norwegian seaport has been working on for many years. He also said that it’s a living project, where goals and tools need to be adjusted to hit that green nail on the head in the most optimal way.

See you in 2025!

The Baltic Ports Organization and the Port of Gdańsk have the pleasure to invite You to Poland for next year’s edition of BPC. The event will take place on 6-8 October and will be held together with the Baltexpo trade fair. See you All in the South of our beautiful Baltic!

BALTIC PORTS ORGANIZATION • Secretariat Office – Actia Forum Ltd. al. Zwycięstwa 96/98, 81-451 Gdynia, POLAND, ph.: +48 502 559 631, e-mail: bpo.office@actiaforum.pl, bpo.sg@actiaforum.pl, www.bpoports.com 5/2024 | Baltic Transport Journal | 49

Overcoming obstacles in AI-based container damage detections

The image of health

by Kishor Arumilli, Vice President – Engineering, ATAI Freight containers, essential to global trade, are prone to various damages due to harsh environments, frequent handling, and constant physical stress. Assessing the condition of these containers from a damage perspective – also known as their health – is crucial for all entities involved in the logistics supply chain.

Typically, container terminal operators conduct damage surveys for all incoming (and sometimes outgoing) containers, a procedure that is time-consuming and also has direct implications for personnel safety.

As a result, automated container damage surveys are increasingly seen as a promising solution to this issue.

C

ontainer damage is any kind of structural deformity that may reduce the container’s value. The ISO 9897 standards codify these damages, enabling various stakeholders to effectively communicate the damage type, location, and severity.

However, the relevance, significance, and impact of the damage vary among stakeholders, resulting in differing purposes for container damage surveys. Each container terminal has its own criteria/ rules for what they consider as damage to the container (usually, a deep sea port

terminal may overlook surface dents and rust patches). Additionally, the handling procedures for the damaged container vary from terminal to terminal. This variability in implications and procedures regarding what container damage means presents the real challenge.

The why’s and how’s of surveying container damage Damage to the container may lead to the damage of freight inside and also impair the container’s utility. In the process of transporting cargo from seller to buyer, the box undergoes handling by various entities and is susceptible to damage at each stage. As per the current practice, the liability is with the entity responsible for the damage. Keeping this in view, a terminal conducts the container damage survey when it enters the terminal (entry at the terminal gate, container unloading from the vessel or rail).

As a standard practice, clear pictures of the damaged container are taken as evidence, and a sign-off is obtained from the relevant entities.

Besides protecting the terminals against liability claims, the container damage survey also helps in making operational decisions.

Specific damages make it unsuitable for using certain container handling equipment. For example, damage to the corner cast may make a container unsuitable for spreaderbased handling, but fork-based handlers can still move such boxes. Based on the cargo type and the damage assessment, the terminal may, too, change the container storage location in the yard. This also leads to a change in procedures for the downstream activities

related to that container. These operational decisions hinge on the container damage surveys performed for the incoming boxes.

Initially, damage surveys were conducted manually by surveyors, who physically inspected the container from all visible sides and documented the information on paper. Additionally, pictures of the damage were taken and stored for further reference.

An improvement to this method involved providing a live visual feed of the container from all visible sides to the operator sitting at a workstation. Because of the constrained space environment at the terminals, the full container picture was constructed using line scanners or image stitching techniques.

Computer vision and deep learning have significantly helped automate container damage detections. A stitched image (from the line scanners) of the incoming container is provided as input to the trained artificial intelligence (AI) algorithms to infer the damages as seen on the container image and classify them according to the damage classification. This process also helps generate a damage report along with the relevant evidence.

This minimizes the need for the surveyor

to meticulously document all the damages found, resulting in a significant efficiency boost at the container operational points.

That said, the hard reality is that the AI-based solution for container damage survey is less efficient (not able to capture damages consistently and completely) and lacks flexibility (any change in environment or physical conditions, etc., requires huge retraining). The root cause of this problem is a lack of sufficient training data, as well as of the digitalized ground truth for run-time validations. At the terminals, this is generally compensated by implementing stringent operational procedures (e.g., containers should move at a uniform speed and in a straight line while passing through the portal), stringent installation procedures (e.g., cameras need to be installed at a precise location and angle as even a slight change in camera orientation has a huge negative impact on the inferencing results), and investing additional effort in data reconciliation. The complexity of the problem further multiplies due to the lack of consistent, usable damage definitions across the industry, making ground truth definitions during training become less applicable in practice.

The SMART container damage survey At ATAI, we have taken a drastically different approach, using computer vision and deep learning algorithms to develop the SMART container damage survey solution, 50 | Baltic Transport Journal | 5/2024

overcoming the aforementioned challenges.

This innovation has helped us address the ground-level, real-world challenges effectively. Seamless deployment of this solution,

even at the container exit points, helps to improve damage liability protection for the terminals. Key fundamental changes in our approach include the following.

TECHNOLOGY

Photos: ATAI

The defining framework – driving uniformity in damage definition Our solution provides a framework, based on the ISO 9897 standards, to define the damages according to the individual needs of every terminal. The framework allows a terminal to define the damage by specifying (a) the types of damages and localized classification names, (b) the significance or impact

of the damage, (c) the rules of engagement for the given type and impact for a damaged container – this and many more.

Such an approach helps the terminals capture all the damages for a particular container and act on them as per their local definitions. This novel approach enables keeping

the complete history of the container’s health, picking out the boxes that require special handling only when warranted. The SMART container survey framework also offers flexibility, enabling terminals to quickly adjust the damage definitions and operating procedures through configurational changes.

Raw images vs stitched images Traditionally, the damage detection algorithms were fed with the stitched container side image as an input. Operational space constraints (full container view capture by camera frame requires a larger distance between the camera sensor and the subject or a very wide field of view sensor leading to image distortion) and the need to identify the location of the damage on a container (mapping and localizing) necessitated this approach.

However, stitching images to construct a full container picture is a computationally

complex operation when we take the onthe-ground operational aspects into consideration (the container may be passing with varying velocities in front of the camera, the horizontal distance may vary across frames of a container, etc). This leads to distortions in the final stitched image if these dynamic variabilities are not compensated for. A distorted container image might lead to damage detection failures, false alarms, or damage misclassifications.

Contrary to this approach, ATAI has innovated in accurately mapping and localizing

a given captured imagery on the overall container. This novel approach enabled the possibility of feeding the raw damage frames to the algorithms, resulting in more accurate detection and classification. It also allows for the usage of the damage images captured by other cameras from a different angle/perspective. While these images were ignored in the traditional approach (as they couldn’t be used for stitching), ATAI has put these images to work to create a more complete training data set, which also helps to provide damage evidence from multiple perspectives.

Accuracy vs miss rate Unlike the common usage of AI in the terminal industry, where the focus is on improving the accuracy of the algorithms, the container damage algorithms need a different approach. This is because the damage-related data sets are not a balanced data set (the percentage

of ‘damage’ vis-à-vis the percentage of ‘no damage’ is more skewed towards the latter category). Additionally, the cost of handling false positives (incorrectly inferring damage when none exists) is very high due to the manual nature of exception handling.

Because of the above, the algorithm training for damage detection should be more tuned towards increasing precision or sensitivity rather than accuracy. As such, ATAI’s SMART container damage survey system prioritizes minimizing the miss rate rather than solely focusing on improving accuracies.

Training data set – a realistic synthetic data creation framework Access to the training data set for container damage poses significant challenges, as it requires capturing vast amounts of raw data, creating the ground truth, and ensuring the availability of sufficient data for each type of damage.

This data creation process is time-consuming and sensitive to environmental and location

variations, affecting the algorithm’s outcomes.

Recent advancements in technology have enabled the creation of synthetic data. However, the challenge with it lies in the accurate representation of damage and the loss of useful information in the process of transposition from a 3D to a 2D representation. Environmental and

location factors further influence this loss of data.

At ATAI, we focused on creating a 3D data set for damage data that incorporates environmental and location-specific variability. We developed a comprehensive framework for synthetic data creation using AI, image processing, and 3D rendering to generate the most authentic 5/2024 | Baltic Transport Journal | 51

TECHNOLOGY data set for container damage. By not relying on stitched images, our synthetic data avoids certain lossy transformations. Additionally,

our data’s richness is enhanced by utilizing different perspective views of the same damage.

The common damage model also enables us to

deploy the SMART container damage survey at the exit points seamlessly, thus providing better liability protection for the terminals.

Synthetic data creation – 3D rendering to environment creation

Damage validation mechanism – absence of the ground truth In general, AI relies on probabilistic engineering and typically requires the digital ground truth to validate its outcome. As container damage detection algorithms cannot depend on the availability of the digital ground truth for

exception identification, every instance of detected damage has to be considered for processing.

ATAI’s container damage detection solution overcomes this model by (i) ensuring that algorithms are tuned for

precision to ensure no damage is missed and (ii) through the availability of complete history from prior visits regardless of the terminal’s damage definition. This approach helps minimize the handling of false positives.

Static model vs continuous learning An essential and differentiating component of the container damage survey solution is the framework that enables it to incrementally learn from the accumulated feedback on the outcomes vis-à-vis ground truth.

This framework has also allowed us to create common models across various operational points of the container. For example, the damage detection algorithms used for a quay-side container survey are the same as the model used at the gate or rail sides

of the container survey. Besides continuous learning, the framework has resulted in providing a consistent outcome across the terminal. It also helps the individual terminals to fine-tune the algorithms according to their specific needs and requirements.

Beyond ISO containers The benefits of ATAI’s novel approach in addressing the challenges in a container damage survey at customer terminals have reiterated our leadership in innovation and

customer-centric attitude. ATAI has extended this framework to encompass box damages for non-ISO containers, such as swap bodies, semi-trailers, and tank containers.

This novel framework allowed us to deploy and use common models across various types of terminals, including barge, intermodal, ro-ro, and inland container depots.

Damage detection for swap bodies, semi-trailers, and tank containers

ATAI is an applied AI company driving digital transformation in the maritime, logistics, and supply chain industries.

Focused on improvements in productivity, sustainability, and cost efficiency, ATAI offers end-to-end problem-solving solutions powered by AI algorithms and cutting-edge technologies. Head to atai.ai to learn more.

52 | Baltic Transport Journal | 5/2024

– BTJ TRIP 2025 SEASON – OPEN FOR COMMISSIONS!

We travelled the beautiful Baltic Sea region far & wide, visiting 13 seaports in Sweden & Finland in 2022-24.

Contact us if you want to showcase what's happening at your place: po@baltic-press.com We look forward to paying You a visit in 2025!

How to build a scalable, high-quality, reliable, and collaborative automated future

Lessons from the (past & present) frontlines of logistics

by Thomas Bock, CTO and COO, FERNRIDE Before the 1950s, shipping was a chaotic ballet of barrels, crates, and sacks, each piece of cargo loaded individually onto ships. Then came Malcolm McLean, a trucking entrepreneur with a vision for efficiency.

He imagined a world where goods traveled in standardized containers, transferable between trucks, trains, and ships with ease. This ‘intermodal’ system, as it came to be known, was met with resistance. Shipping lines balked at the cost of new ships and port infrastructure. Unions worried about job displacement.

B

ut McLean persisted, demonstrating the power of his idea with a converted tanker ship, Ideal X, which set sail in 1956 carrying 58 containers. This marked the beginning of a revolution in logistics, one that continues to shape how we think about efficiency and scale in transportation.

Just as containerization transformed global shipping, the shift toward automated logistics and autonomous fleets presents both immense opportunities and unique challenges.

containerization to keep pace with the evolving demands of global trade.

These principles remain essential for navigating the complex challenges facing terminal operators today. To scale your terminal operations, you need to ensure consistent quality and reliability through stringent standards, embed rigorous testing and validation in all processes for safety and efficiency, and develop scalable and adaptable systems to accommodate future changes and advancements.

What can terminal operators learn from the impact of containerization?

Containerization has forever changed global trade. This transformation wasn’t achieved simply by switching to a new type of box. It required a system-level shift, demanding a focus on consistent quality and reliability to ensure smooth intermodal transport across oceans and continents. It also demanded a rigorous approach to testing and validation to ensure the safety and integrity of this new system. And finally, it required a commitment to creating systems that were not only efficient but also adaptable to future changes and advancements, allowing

Sourcing for success: a shared challenge Quality, adaptability, and rigorous testing – these aren’t just buzzwords. They are make-or-break factors for any industry undergoing a major transformation, especially the shift toward automated logistics.

Just as containerization relied on a robust network of dependable suppliers, so too does the success of autonomous fleets.

At FERNRIDE, we understand this challenge intimately. We have navigated the complex world of sourcing hardware for our autonomous vehicle technology (demanding the same high standards that fueled the containerization revolution) and terminal automation.

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We also understand that terminal operators face similar hurdles, such as finding experts: locating partners with proven experience in terminal operations and a track record of delivering reliable solutions is no easy feat. There are also compatibility concerns: ensuring new technologies can integrate with existing equipment, systems, and workflows within a terminal’s complex ecosystem is crucial. Compromising on high standards is absolutely off-limits: embracing innovation while upholding the stringent safety and reliability standards of a terminal environment demands careful vetting and due diligence. Finally, there are procurement hurdles to jump over without breaking your leg: lengthy and complex processes add another layer of difficulty to sourcing mission-critical technologies.‍ These shared challenges underscore the need for open communication, strong partnerships, and a collective commitment to success between technology providers and terminal operators.

The blueprint for autonomy at scale At FERNRIDE, we recognize this fundamental truth: we’re never just building one autonomous vehicle; we have to plan for a fleet

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Tab. 1. The Golden Sample Process, while designed for autonomous vehicle technology, embodies principles crucial for success in both autonomous innovation and modern terminal operations Lesson

FERNRIDE’s Golden Sample Process

Terminal operations Standardized cargo handling procedures Golden Batch refines prototypes into equipment maintenance schedules reproducible units with detailed instructions, and minimize variability and support Standardization ensuring consistency as we scale. operations scaling. for scalability Rigorous documentation and acceptance Standardized data formats and criteria guarantee every vehicle meets communication protocols in new the same standards. technology and system integration.

Extensive testing (in simulations and Safety audits, equipment inspections, real-world settings) identifies and mitigates and performance monitoring identify and address risks.

Rigorous testing potential issues before deployment. & validation Specific verification steps in each Pilot programs for new technologies; stage to validate performance against controlled testing and validation within predefined acceptance criteria. live terminal environment.

Continuously analyze vehicle performance Leverage data to optimize terminal layout, data to identify areas for improvements traffic flow, and resource allocation.

Data-driven and adapt to changing conditions. optimization & Use data insights to refine algorithms, Implement systems for continuous adaptation optimize vehicle behavior, and inform monitoring and analyzing of KPIs future development decisions. to guide decision making.

of thousands right out of the gate. Our Golden Sample Process is a rigorous framework that bakes scalability into every step of our autonomous vehicle development, allowing us to engineer our solutions from day one to perform at mass scale, ensuring the highest standards of quality, reliability, safety, and security.

The Golden Sample Process is a threestage approach to developing autonomous solutions that are both rapidly deployable and scalable. First, the titular Golden Sample itself: we start with rapid prototyping to quickly design and test a solution that meets the core functionality of the target use case, prioritizing fast interaction and learning.

Second, the Golden Batch: the prototype is refined into a reproducible batch, complete with detailed specifications, acceptance criteria, and work instructions. A comprehensive verification effort ensures we can consistently meet these standards and gain crucial knowledge about scaling production. This

stage may include CE certification as well as early deployments for real-world feedback.

Third, the Production Line: the focus shifts to automation and high-quality documentation. Work instructions and acceptance criteria are refined to support series production, ensuring every vehicle meets the highest quality and safety standards (including CE certification).

The key principle is a strict separation between the rapid iteration of early development and the predictable quality required for series production. This allows us to innovate and test new ideas quickly in the early stages while maintaining the highest standards of quality and reliability as we scale up to mass production.

How does it look in practice?

First comes identifying a critical process: we start by selecting a crucial element that directly impacts your terminal’s efficiency,

such as navigating a complex, mixed-traffic scenario within a terminal or precisely aligning with a ship-to-shore crane for the container handover.

Then, we move on to developing and documenting the ideal solution: our engineers design and thoroughly document the optimal way for our autonomous vehicles to perform this process, taking into account all relevant safety and efficiency factors.

Next, it’s time for rigorous testing and refinement: the Golden Sample solution undergoes extensive testing in simulated environments and real-world settings, allowing us to identify and address any potential issues or edge cases.

This is followed by establishing the benchmark: once validated, the solution becomes the ‘yardstick’ for all future iterations, ensuring consistent quality and reliability as our technology evolves.

Lastly, ensuring compliance with the highest safety standards stands for implementing critical measures to meet CE certification safety requirements. It marks crucial progress for the entire industry when it comes to validated hardware generation.

The Golden Sample Process is a continuous cycle of improvement; it is also how we achieve both speed and quality. By rigorously testing and refining our autonomous solutions early in development, we can learn fast without disrupting the scaling process and series production down the line. We understand that in the world of terminal operations, downtime is not an option.

Building a future together The journey toward a truly automated future in logistics won’t be a solo mission. It demands the same collaborative spirit and commitment to excellence that once fueled the containerization revolution. Below is what we can learn from history and apply to the future of automated logistics.

Scalability is key: just as standardized containers unlocked global trade, autonomous solutions must be designed for mass adoption from day one. Quality and reliability are non-negotiable: rigorous testing, robust systems, and a commitment to continuous improvement are essential for building trust in autonomous systems. Collaboration is crucial: technology providers and terminal operators must work together to ensure seamless integration, shared standards, and a unified vision for the future.

FERNRIDE offers scalable automation solutions for yard trucking that increase productivity, promote sustainability, and improve worker safety. Employing a human-assisted autonomy approach that allows for remote takeovers of trucks when necessary, FERNRIDE’s technology has been seamlessly integrated into logistics operations in ports and terminals run by industry titans such as Volkswagen, HHLA, and DB Schenker. Go to fernride.com to discover more.

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Fuelling the transition to new fuels and greener fleets with data

Sailing blind?

by Ossi Mettälä, Product Manager, NAPA Shipping Solutions FuelEU Maritime might be the new kid on the block, but it has teeth and will bite. Coming into effect at the start of 2025, the Regulation is part of the EU’s Fit for 55 toolkit to help the block achieve climate neutrality by mid-century. Representing a new age of legislation, FuelEU Maritime provides clear incentives for change, not only through high financial penalties for non-compliance but also by shifting calculations on asset value. If the industry needed any more reason to transition to alternative fuels, look no further.

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uelEU Maritime is poised to succeed where the International Maritime Organization’s (IMO) Carbon Intensity Indicator (CII) has failed. The former stands apart from the latter with more stringent and enforced penalties, unlike CII, which relies on market acceptance. In other words, FuelEU Maritime wields a stick – but it also offers a carrot.

Penalties for non-compliance are robustly enforced and, at €2,400 per tonne of very-low sulphur fuel oil (VLSFO)-energy equivalent, they are high enough to encourage investment in low-carbon bunkers and alternative-fuel ‘ready’ vessels. A recent analysis by OceanScore also affirms that penalties could reach an average of €520,000 per vessel annually for passenger ships and €214,000 for container carriers. The stakes are high whether the market likes it or not.

The benefits of compliance are tangible. According to an ‘explainer’ by the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS), in 2025 itself, paying the premium for blending biodiesel will generally be cheaper than paying the penalty on a per tonne of abatement basis. Further, vessels that are compliant or in excess will open the door to new business opportunities for their owners through pooling. Ultimately, this could increase asset value and provide access to easier financing.

With the business case for taking FuelEU Maritime seriously now clear, how prepared is the industry? According to DNV, there could be up to seven times more deficit than surplus of compliance 56 | Baltic Transport Journal | 5/2024

units across the industry when the data for 2025 is finalised. This shows that from year one, the majority of shipowners will have to take some form of action, be it pooling, borrowing, or paying a penalty. The urgency is, therefore, clear: shipping must take immediate action to avoid penalties and seize emerging opportunities.

Shipyard order books show the tides are turning. The latest data from Clarksons Research shows that around a third of all newbuild orders in the first half of 2024 were for vessels capable of using alternative fuels, including liquefied natural gas (LNG), methanol, ammonia, liquefied petroleum gas, and hydrogen.

The importance of preparation FuelEU Maritime will not exist in a vacuum. When looked at holistically, this Regulation will build on the foundations of the EU Emissions Trading System (EU ETS) to accelerate shipping’s decarbonisation and will help the industry take the leap towards new fuels as it targets fuel greenhouse gas (GHG) intensity. It also comes at a time when the industry has already been exposed to the impacts of the IMO’s CII and the EU ETS. One of the key differentiators of FuelEU Maritime is, therefore, that shipowners and charterers are learning the importance of preparation and the underpinning role of data in informing compliance strategies.

Larger companies, naturally, have an advantage in being able to plan ahead, while smaller operators may struggle to get on the front foot. Faced with resource

constraints and knowledge gaps, many lack the bandwidth to take a proactive approach to FuelEU Maritime and, by this time next year, will end up ‘playing firefighter,’ scrambling to find drop-in fuels or pooling solutions to avoid paying hefty fines. Fleet data is, therefore, a critical asset for making informed decisions. As well as monitoring compliance deficits and surpluses, it also allows owners to weigh the cost-benefit analysis of different compliance strategies.

Simulations based on NAPA’s performance models and pooling cost estimates released by the MMMCZCS already reveal a snapshot of the scale of the potential costs involved – although exact prices will be set by the market. Consider a typical Capesize bulk carrier operating between Brazil and Rotterdam that consumes approximately 16,700 tonnes of fuel annually (both VLSFO 380 CST and low-sulphur marine gas oil). With a GHG intensity of 91.4 grams of CO2/megajoule, the vessel would face a compliance deficit of 703.70t CO2. This represents nearly €450,750 in penalties for 2025, adding 5.1% to bunkering costs.

Alternatively, based on MMMCZCS’ estimates that external pooling will come at the price of around €420/t, the cost increase would instead be 0.9%.

By contrast, a ro-ro vessel equipped with rotor sails and operated between EU ports in the Northern Atlantic can generate a compliance surplus of 1,750/t/year. One such vessel can, therefore, offer significant ‘excess’ through pooling and offset the emissions of nearly 2.5 bulkers from the first example. Considering the €420/t estimate for the

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price of pooling, the surplus could generate just under €207,000 in additional revenue through pooling, which represents a reduction of nearly 3% in bunkering costs.

The missing piece of the puzzle Going above and beyond compliance with regulations has its rewards. Surplus compliance has value and can create an additional source of revenue for shipowners through pooling.

Early movers who invested in LNG or low-carbon-fuelled vessels or wind-assisted propulsion will benefit from ‘excess’ compliance – while the emission reductions mandated by FuelEU Maritime stand at 2%. This gives these owners a strategic advantage and opportunity to ‘pool’ such vessels with others in fleets that fall short on compliance – or look at opportunities to pool their ships with other companies for a defined period.

As new opportunities arise, markets for surplus exchange are expected to follow.

Several new companies have already cropped up to facilitate the pooling option across companies. Tapping into this opportunity depends on being able to quantify the extent of a fleet’s current and future compliance (or non-compliance). The missing piece of the puzzle is data.

While there’s still no definitive test for how prepared the industry is for FuelEU

Maritime, we can see that scale, alternative fuel pricing, and bunker availability all continue to pose challenges to compliance. In this climate, short-to-mid-term strategies to prepare for the Regulation for most owners are likely to be based on either adopting drop-in biofuel and/or wind-assisted propulsion, as well as pooling, borrowing, or simply paying penalties for others. In practice, there are several more variables at play.

From vying for and securing the availability of alternative fuels at ports to navigating the cost of pooling, there are many considerations for companies looking to assess those options against the cost of paying penalties.

Digital platforms, like NAPA’s FuelEU Maritime module (part of NAPA Fleet Intelligence), help streamline this wealth of information to give shipowners and charterers all the facts to make decisions based on data and evidence. Using data from noon reports on the quantity and type of fuel consumed on board, the module enables owners to visualise compliance shortfalls or surpluses for every ship – even on

a voyage-per-voyage basis. Critically, it allows shipping companies to test different compliance strategies, including pooling, banking or borrowing, and see how each option would move the dial on their fleet’s compliance status. They can compare these approaches with the cost of potential penalties, as well as gain an accurate estimate of how much surplus they will be able to offer through pooling, be it with other vessels in the fleet or with other owners. The module’s initial roll-out across 1,500 vessels through ClassNK’s ZETA platform demonstrates its potential to help ownersoperators understand the carbon and bottom-line impact of the new Regulation on their operations.

The role of digital technologies in shipping’s green transition is to ensure that companies have a robust understanding of their operations and compliance options to avoid sailing blind. As such, digital technologies can ensure compliance, profitability, and strategic advantage during the industry’s energy transition.

With 35 years of operation, NAPA is a leading maritime software and data services provider to enable safe, sustainable and future-proof shipping. With 90% of new vessels built by NAPA customers, NAPA’s design software is the global standard. For ship operations, NAPA provides vessel stability and data management, and its cloud-based solutions for performance monitoring and optimization support shipping decarbonization. Visit www.napa.fi to see more.

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Embracing digital transformation in asset performance management

The Aura of applied data accuracy

by Ilari Leinonen, Product Owner, Elomatic The maritime industry is experiencing a significant period of transition. The introduction of increasingly ambitious regulatory frameworks, as well as concrete commitments to adopt more sustainable operations that drive decarbonization, has placed current industry practices under the spotlight. At the same time, significant technological advancements and increasingly more sophisticated systems, amidst the onset of industry digitalization, are enhancing operational efficiencies across a range of different sectors.

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he shipping industry creates a vast amount of operational, commercial, and environmental data. Despite this, the sector has been largely left behind by the digital transition that other industries have benefited from, still often relying on outdated systems that fail to harness the power of modern digital solutions. This failure to grow with the latest advances in technological innovation has led to a seeming acceptance of operational practices that other industries would not.

The shift to digital couldn’t be more timely, especially as the industry confronts the pressing challenge of the climate crisis. Digitalization can enhance and accelerate the energy transition. Heightened stakeholder pressure, a stricter regulatory environment, and the reality that scalable alternative fuels are still years away have forced the industry to double down on energy efficiency.

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To achieve the International Maritime Organization’s greenhouse gas emission reduction targets, the industry is having to consider new technologies (including ship upgrades) and infrastructure interventions (low-carbon bunkers). Additionally, the shipping sector must implement methods to measure and validate the impact of these modern technologies.

In response to this, we marine engineers and consultants at Elomatic have partnered with Europe’s largest artificial intelligence (AI) lab, Silo AI (part of AMD), to develop the Aura Asset Performance Management (APM) system, a highly customizable, 360degree solution that is designed to utilize advanced AI technologies to support enhanced operational efficiency.

Moving beyond just ticking the box The current industry standard for computerized maintenance management systems in maritime operations is a regulatory

requirement for accessing and sharing data.

These systems are often seen as unhelpful obligations, which reduces their utility to basic ‘tick box’ exercises.

Yet, with a shift in approach, current maintenance management can evolve into essential tools that enhance operational efficiency with minimal intervention. By engaging with new and innovative technologies, the maritime industry can harness the wealth of data insight that is available. Through a combination of high-quality data from crew inputs and equipment sensors, these systems could significantly improve vessel operations by providing better overall awareness.

For instance, traditional maintenance practices hold to rigid schedules with the aim of preventing costly breakdowns.

However, these processes often rely on outdated inventories and scattered documents, which can compound busy workloads and still result in breakdowns at sea.

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Optimizing maintenance schedules through clean, accurate, and accessible sensor data provides a clear picture of where & when maintenance is truly needed.

While sensor data plays a significant role, it is part of a broader preventive maintenance strategy that also benefits from manually imported data, equipment history, and general usage. Our evolving approach aims to enhance this process with more intelligent solutions, minimizing unnecessary interventions, reducing costly downtime, and improving safety.

Implementing the unthinkable With accurate data and measurements, consistent methodologies, and real-time information, systems such as Aura can identify the small margins that will achieve savings with a degree of accuracy that would have been unthinkable just a decade ago.

Advancements in high-speed connectivity now allow for real-time intervention from land-based teams, supporting decision-making that was once confined to onboard crews. This includes ensuring necessary inventory is always at hand, enabling transparent collaboration between environments, and maintaining a clear digital trace of actions & operations on board. Ultimately, the integration of machine learning and AI within an APM system is likely to greatly increase the scope and application of the data that can be gathered in the future.

By integrating advanced AI models into APMs like Aura, the model plays a crucial role in the stages following initial data access (including consolidation, harmonization, utilization, and analysis).

This enables shipowners and operators to

adjust routing speeds, establish operational parameters that reduce emissions, and optimize entire f leets effectively.

Leveraging engine sensor data integrated into the platform, Aura can provide automated service planning, resource allocation, and supply chain management functionalities. This capability allows for proactive maintenance and optimal resource utilization, ultimately improving operational efficiency for those owning and operating ships. More than just an APM system, Aura represents an intelligent cloud solution that integrates with a vessel’s existing computing capabilities and onboard IT infrastructure.

The incorporation of machine learning and AI within the APM framework may significantly expand the scope and application of the data that can be collected and analyzed in the future. In time, Aura will evolve to offer actionable asset health information and maintenance support, further transforming how the maritime industry approaches operational efficiency and sustainability.

Aura is designed to simplify asset management by offering comprehensive data insights. One of its key features is its 360-degree approach, which integrates maintenance, repair, and optimization processes into one user-friendly platform.

By streamlining inventory management, planning and scheduling, the system not

only saves time but also reduces operational costs, helping operators avoid unplanned downtime.

Clarity and confidence As AI technology continues to develop, the maritime industry stands to benefit from enhanced decision-making capabilities, improved resource management, and a more sustainable operational framework. This revolution will not only optimize efficiencies but also position the industry to meet the pressing environmental challenges it faces today.

Aura provides a clear example of how modern digital solutions can provide the clarity and confidence needed to navigate this period of significant transition within the maritime industry. The goal of Aura is not to introduce complex software integrations that compound busy workloads.

Instead, it is a tool that aligns with existing systems, enhancing the tonnage’s lifetime value, reducing costs, and supporting more operationally sustainable & safer vessels.

The maritime industry must move on from outdated maintenance practices and fully embrace the digital transition.

Utilizing clean, accessible, and digestible data from the ship’s sensors, whilst including user-originated logs of action, work order reports, and documents, is a necessary step towards a more sustainable and energy-efficient future.

Elomatic is an international consulting and engineering company that provides top-level expert services, products and turnkey solutions to process, machinery, marine, energy and pharmaceutical industries. We are focused on continuous improvement and sustainable development, and we are committed to design solutions that increase the wellbeing of people and the environment. Established in 1970, Elomatic employs 1,300 professionals, and has customers in more than 80 countries across the globe. Go to elomatic.com to discover more.

5/2024 | Baltic Transport Journal | 59

How multi-agent orchestration software can transform warehouse operations

Striking the right note

by Fitzwilliam Scott Warehouse automation and robotics have become buzzwords in the logistics industry, promising increased efficiency and reduced labor costs. However, it’s crucial to recognize that these solutions are not one-size-fits-all. Implementing automation can be complex and expensive, requiring a tailored approach to ensure a positive return on investment (ROI). “While automation devices show great potential in enhancing warehouse efficiency, their isolated implementation often leads to unforeseen challenges. It’s not just about deploying technology; it’s about ensuring that these technologies work together seamlessly to deliver value,” cautions Smitha Raphael, Chief Product & Delivery Officer at Synergy Logistics.

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he challenge with integrating individual automation devices lies in understanding their overall impact on warehouse operations.

A piecemeal approach often results in inefficiencies and redundancies, negating the benefits that automation can offer. What warehouses need is a system that provides a comprehensive view of the entire operation, linking all automated devices on a centralized, easy-to-manage platform.

This is where the concept of a ‘warehouse orchestra’ comes into play. Just as an orchestra requires a conductor to synchronize different instruments, a warehouse needs multi-agent orchestration (MAO) software to harmonize its diverse range of automation tools and robots. The solution has emerged as a game-changer because it offers seamless and efficient control over all devices within the four walls of a warehouse, ensuring they operate in concert rather than in isolation.

“Think of MAO software as the conductor of your warehouse orchestra. It ensures that every device, from conveyor belts to robotic arms, works together in harmony, maximizing efficiency and productivity,” explains Raphael.

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Continuous dialogue To leverage the full potential of MAO software, selecting the right system for your business is crucial. Not all MAO solutions are created equal, and the difference often lies in their ability to facilitate two-way communication. Effective MAO systems are designed to enable seamless data exchange between the platform and devices, allowing for automated decision-making and real-time adjustments. “The secret to successful warehouse orchestration lies in twoway communication,” shares Raphael. “This continuous dialogue between the platform and devices ensures that each machine’s operational value is automatically assessed, enabling optimal performance decisions to be made in real-time.”

This dynamic communication allows the system to evaluate each device’s performance continuously, making informed decisions that enhance overall warehouse efficiency. However, it’s essential to recognize that not all MAO solutions provide the same level of functionality and flexibility. To ensure scalability and growth, businesses should seek MAO software that is easily configurable and capable of integrating new devices as needed.

Selecting the right MAO Picking a piece of software that works for (instead of against) you is critical for any warehouse looking to optimize its operations. To guide organisations in this decision-making process, here are 10 essential questions to consider.

First, integration: are your current tech solutions operating cohesively, or are they functioning in isolated silos? Second, device compatibility: does the solution seamlessly connect with a diverse range of devices and systems? Third, task prioritization: can the software efficiently orchestrate and prioritize tasks? Fourth, task allocation: does it automatically allocate or reassign tasks and workflows based on real-time data?

Fifth, device matching: is the system capable of selecting the most suitable robotic device for specific operations?

Sixth, data insights: does the software capture data to evaluate device performance?

Seventh, real-time switchover: can it facilitate rapid transitions between devices to maintain workflow continuity? Eight, task buffers: does it have mechanisms to delay tasks when necessary without disrupting overall operations? Ninth, traceability: is the software equipped to handle

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product expiry dates and ensure traceability? And, finally, exception handling: can it manage exceptions effectively without causing downtime?

“If the answer is ‘no’ to any of these questions,” Raphael advises, “it may be best to continue your search. The right ‘conductor’ for your warehouse orchestra is out there, but finding it requires due diligence.”

One such solution that has shown significant success in the field is SnapControl, a device-agnostic MAO platform that speeds up integration and allows warehouse operators the flexibility to choose automation and robotic devices tailored to their specific operational needs. In a realworld example, SnapControl’s implementation in a US-based online retailer’s warehouse has showcased its transformative capabilities. By optimizing task allocation between human workers and automated resources, SnapControl increased productivity sixfold. Over 61% of the

workload was automated, leading to labor savings exceeding half a million dollars and achieving a swift payback of just 23 weeks. Raphael highlights, “This example illustrates how a well-chosen MAO solution like SnapControl can transform warehouse operations, driving efficiency and delivering substantial cost savings in a short timeframe.”

A (perfect harmony) necessity As retailers and third-party logistics providers anticipate increased levels of automation and robotic integration in the coming years, adopting the right MAO

software becomes a strategic imperative. A robust solution provides a clear, efficient roadmap for scaling automation without locking businesses into a rigid framework. “Next-generation automation control doesn’t have to come with a hefty price tag or extended implementation timelines,” Raphael says. “With the right MAO system, warehouses can achieve tangible labor savings, make accurate asset management decisions, and realize rapid timeto-value – all without the constraints of multi-phase projects.”

Warehouse automation is not merely a passing fad – it’s a necessity. However, the key to maximizing ROI from automation investments lies in selecting the right orchestration software. By choosing a versatile and robust MAO solution, businesses can ensure their diverse ‘warehouse orchestra’ operates in perfect harmony, driving efficiency, reducing costs, and supporting scalable growth. “Just as an orchestra needs a conductor for harmony,” Raphael concludes, “today’s warehouses require advanced multi-agent orchestration to deliver on their full potential.”

By considering the critical criteria outlined above and learning from successful implementations, such as SnapControl, businesses can make informed decisions that align with their operational needs and long-term goals. The right MAO software will not only enhance current operations but also future-proof warehouses against the evolving demands of the industry.

SnapControl is a multi-agent orchestration platform that provides a device-agnostic, unified approach to automation. Extending the functionality of the robust and flexible rules engine in the SnapFulfil Warehouse Management System (also brought to you by Synergy Logistics), SnapControl provides seamless and efficient control of any and all warehouse devices and robots – all with a low total cost of ownership and rapid time to value. Head to synergy-logistics.com to discover more.

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Developing a smart forecast model for container depots

Taming the traffic tides

by Emin Nakilcioğlu, Research Associate, Fraunhofer CML In an innovative study, we explore the challenges facing container depots in managing traffic surges and operational volatility. Collaborating with HCS Hamburger Container Service, we have developed a sophisticated probabilistic model that predicts hourly workload and traffic volumes with high accuracy, enabling dynamic resource allocation and improved operational efficiency.

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he forecasting model, built on Bayesian Neural Networks, uses real-world data from a container depot alongside external data sources to effectively capture the interdependencies between a multitude of variables, such as truck arrival patterns and container specifics, while also accounting for the complexities and uncertainties associated with global trade fluctuations and port congestion. By introducing advanced forecasting techniques to depot management, we aim to initiate industrywide discussions on the future of predictive analytics in container logistics, paving the way for more resilient and adaptive container depot operations with the help of data-driven solutions.

Real-life innovation Since the global shipping industry began recovering from the COVID-19 pandemic, containerized trade volumes surged in 2021 before experiencing a steady decline, culminating in their lowest levels by 2023.

Now, as the industry embarks on a path of gradual recovery, it confronts new challenges in managing inland logistics and depot operations effectively.

At the heart of this evolving landscape are container depots, critical components of the inland logistics network. These facilities serve as essential hubs for the management of containers owned by leasing and shipping companies, providing storage, safety checks, and maintenance services. Their role as hinterland buffers is crucial in balancing the peaks and bottlenecks experienced at ports. While these facilities are designed to maximize efficiency and space productivity, they are not immune to the fluctuations 62 | Baltic Transport Journal | 5/2024

in container traffic. Companies like HCS Hamburger Container Service have been facing significant challenges as they navigate surges in demand for their services.

To address these complexities and uncertainties, we have partnered with HCS to develop an innovative solution aimed at managing periods of high volatility while also optimizing day-to-day operations. HCS has provided us with extensive operational data from one of their depots, which is strategically situated within the Port of Hamburg (with private rail and barge connections). The dataset includes comprehensive information on the daily traffic of container trucks, a critical component of depot operations.

With over three decades of expertise in the repair and stock-keeping of empty containers, HCS stands as a vital partner in our research initiatives. This collaborative effort underscores the importance of advanced forecasting techniques in managing the complexities of container depot operations and in ensuring that our solutions are both practical and industry-focused. By merging hands-on knowledge with scientific expertise, this joint effort demonstrates the power of collaboration in tackling the complexities of depot operations, making sure our forecasting solutions are both innovative and aligned with the real-life operational needs of container depots.

Forecast and act preemptively The day-to-day operation of a container depot is subject to seasonal and daily traffic fluctuations, leading to challenges in workforce planning, equipment allocation, and space utilization. Factors like congestion at ports and container truck traffic compound

this unpredictability. For operators, accurately forecasting these peaks and troughs has always been a complex task.

In traditional forecasting methods, a deterministic approach assumes fixed outcomes based on historical data, often overlooking the inherent variability in realworld operations caused by uncertainties.

To address this limitation, we based our model on Bayesian Neural Networks, which capture the interdependencies between variables such as truck arrival patterns, container details, and external factors like port schedules and information from pre-announcement data interfaces (e.g., the TR02 one in the Port of Hamburg). Due to its ability to estimate unknown parameters and quantify the associated uncertainty in a principled manner, our method offers a more robust and dynamic solution for mitigating the uncertainties that traditional models often overlook. Since the predictions are continuously updated as new data arrives, the model can help the depots respond more effectively to unexpected peaks in the upcoming traffic volume that would otherwise catch them off-guard.

For example, by predicting potential congestion early, operators can make proactive decisions about resource allocation or truck arrival schedules, reducing the risk of bottlenecks that could disrupt depot efficiency.

The ability to forecast and act preemptively reduces operational risks, improves service delivery, and helps depots stay on top of fluctuating demand.

Given the volatile nature of inland logistics, tighter operational planning and resource adjustments are necessary to maintain smooth operations. With a probabilistic model, operators can ensure that

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the facility is prepared for potential traffic increases, ensuring the facility’s resources are always in optimal use.

Complex supply chains Operational forecasting doesn’t just benefit single depots – it’s scalable across networks. Our model can be applied to multiple facilities, enabling a cohesive view of traffic across a company’s entire logistics operation (provided the facilities keep records of their operational data, which then can be used for developing a customized forecasting model).

This flexibility is particularly useful for companies managing complex supply chains or multiple hubs where traffic volume can shift rapidly between locations.

Additionally, forecasting models like ours can contribute to the sustainability of logistics operations. By optimizing truck movements and container handling, depots can reduce fuel consumption, lower emissions, and minimize unnecessary container moves, aligning with broader industry goals for reducing environmental impact.

Furthermore, with accurate predictions of traffic flow and container handling, depot operations can be structured to maximize the effectiveness of available personnel.

This approach allows for dynamic adjustments to workflow, such as identifying non-essential tasks that can be temporarily postponed during expected busy periods or staff shortages, consolidating tasks or temporarily adjusting processes to match the

workforce with anticipated demand. Even when short-staffed, by focusing on core operations and providing employees with advance notice of expected busy periods, workers can better prepare mentally and physically for challenging shifts. This foresight may help reduce the impact of understaffing on individual workers, potentially lessening fatigue and improving overall safety. While it cannot completely offset the challenges of staff shortages, this method can help create a more supportive work environment by demonstrating a commitment to employee well-being through informed planning and communication.

Respond (more) effectively Integrating advanced forecasting models into depot operations is no longer just an option; it’s becoming ever more essential in today’s dynamic logistics landscape. As container flows become more unpredictable and global trade continues to evolve, the ability

to predict, plan, and manage traffic surges will be critical for maintaining smooth operations and delivering high-quality service.

Our forecaster offers a robust solution that not only enhances operational performance but also contributes to risk management and sustainability. As depots face increasing pressure to operate efficiently while minimizing environmental impact, advanced forecasting tools will play a crucial role in helping operators meet these challenges.

By investing in predictive technologies and data-driven approaches, the logistics industry can enhance its ability to navigate uncertainties and optimize depot operations. While external factors may still affect the f low of goods, these advanced tools enable depots to respond more effectively to disruptions, potentially minimizing their impact and maintaining operational efficiency – even in challenging circumstances.

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The Grimaldi Group’s XXVI Euromed Convention From Land to Sea

Radicalism and/vs realism

by Przemysław Myszka The 2024 edition of the event brought to Athens 800 representatives from across the worlds of transport and logistics, finance, the EU and the International Maritime Organization (IMO), class, and heavyduty marine equipment manufacturing. Decarbonising shipping was by far the topic that garnered the most attention, with a particular focus put on the thorny issue of imposing regulations to give the industry a nudge in the green direction. The other part of the XXVI Euromed Convention was devoted to port development in Southern Europe, with Greece’s new model that hands over port authority duties to private operators under 30-year-concessions taking the front part of the stage.

T

he conference was kicked off by Paolo Cuculi, Italy’s Ambassador to Greece, and Christos Stylianides, the Greek Minister of Shipping.

The former underscored the two countries’ trade relations, totting up to some €12.6 billion by sea. Ambassador Cuculi also spoke of decarbonisation, which not only stands for making global tonnage future-fit but also encouraging a model shift from road to sea. “The sea unites,” he concluded his speech by bringing a quote attributed to the Ancient Greeks.

Minister Stylianides, in a pre-recorded statement, spoke of the need for “radicalism and realism.” He listed some of the most pressing today and future challenges facing the shipping and port businesses, such as the intolerable crisis in the Red Sea to which innocent seafarers fall victim, the need for robust financial backing to decarbonise transport and logistics (among others, demanding low-carbon ferries to be deployed on internal publicly-tendered routes or furnishing seaports with cold ironing facilities), or the urgency to attract new digital- and automation-savvy people to shipping and ports as well as reskill the existing workforce so that they won’t feel left behind the technological curve.

Next on the stage was Emanuele Grimaldi, Managing Director of the Grimaldi Group, who also continued the topic of trade, 64 | Baltic Transport Journal | 5/2024

eco-innovations, and seafarer wellbeing. On the first of these, he devoted much of the attention to the rising wave of protectionism all around the world. In a study commissioned by the Group and carried out by the Harvard Kennedy School, some 3% of global GDP is at stake if that trend continues (and even up to 7-8% of GDP growth could be unlocked for developing countries should barriers to trade lift instead of tighten). Asked later during a press conference about his

Photos: Grimaldi Group

opinion on the launch of Finnlines’ new ferry crossing between Świnoujście and Malmö, Grimaldi used this example to showcase how protectionism battles free trade. On the one hand, he stressed, it was exactly state-led localism that made it impossible for Finnlines to put the new service in motion for years.

He also underlined that even though there was a political shift in Poland and subsequent change at the helm of the relevant Polish seaport, Finnlines is still treated unfairly.

EVENTS

As such, the company is challenging in a court what it sees as excessive dues imposed by the port authority. On the other hand, Grimaldi highlighted, the service has been met with commercial success.

On the topic of decarbonising the shipping sector, Grimaldi didn’t pull his punches when it comes to criticising regional regulations imposed by the EU, with the Emissions Trading System (EU ETS) and the block’s FuelEU Maritime Regulation receiving the harshest backlash. Grimaldi, who also chairs the International Chamber of Shipping (ICS), called these pieces of legislation ineffective and retributive, as they do not reward the shipping sector for its greening effort; rather, they tax the most environmentally friendly mode of transport without reinvesting the funds into helping to accelerate the industry’s energy transition. Here he presented the ICS’ proposal, the Zero Emission Shipping Fund, as a means of a global mechanism for gathering the industry’s contribution to cleaner shipping and rewarding those who actually put the money where their mouths are.

Grimaldi also talked about taking care of seafarers, praising Greece and Italy’s military input to end the Red Sea Crisis as well as underscoring the need to recruit and reskill on- and offshore personnel (“making the job more sexy,” as his son, Guido Grimaldi, said later during a panel debate). He also brought forth the works of the Grimaldi Foundation, which has thus far executed 400 social projects, contributing some €50m to local communities.

Grimaldi then detailed the Group’s recent and future investments, including seven new ships delivered in the last two years, with another 20 under construction, including 17 pure car and truck carriers of 9,000-CEU capacity (with the Group placing its bet on the booming car production sector in China, which with an all-time high of almost 31 million manufactured more cars in 2023 that those placed 2-5 did together; not coincidentally, one of the three new agencies of Grimaldi is seated in Shanghai). Moreover, orders will

be placed by end-2024 for nine+two new ro-paxes for traffic in the Med and the Baltic (including three Superstar+ cruise ferries for Finnlines’ Finland-Germany service). Among other developments, the Grimaldi Group has been awarded port authority concessions for the Greek seaports of Heraklion and Igoumenitsa (where Emanuele and Guido will take chairmanship responsibilities, respectively).

Next was the first discussion panel titled Fostering and achieving innovation: a driving force towards net-zero emissions, moderated

by Guy Platten, Secretary General of ICS. The participants included Chris Bonnett, the Maltese Minister of Transport, Infrastructure and Public Works, Maja Bakran Marcich, Deputy Director General, the European Commission’s Directorate General for Mobility and Transport, Roel Hoenders, Head of Climate Action and Clean Air, Marine Environment Division – IMO Secretariat, Ugo Salerno, Chairman of RINA, Roger Holm, President of Wärtsilä Marine and Executive Vice President of Wärtsilä, and Dario Bocchetti, Head of Energy Saving, RandD and Ship Design, the Grimaldi Group.

Holm kicked off the debate by underlining that technology for decarbonising shipping is already available, with methanol quickly becoming a business-as-usual solution and ammonia posed for the same before long.

“Net zero is doable with tech,” he said, however, with a caveat that green fuel must be accessible. This still isn’t the case, Holm and others stressed, and the demand and supply issue will only get more complicated once other industries also start vying for those green molecules. Salerno added that every fuel, even those aspiring to be net-zero, comes with a carbon debt (of production, transport, infrastructure, bunkering, etc.) and that the only truly green energy is one that isn’t used.

As such, he underscored the importance of incorporating energy efficiency measures as early as in the ship design process. Grimaldi Group’s newbuilds feature a number of such solutions, just to name photovoltaics, battery packs, or air lubrication (but, interestingly enough, not wind-assisted propulsion; asked about that, Emanuele Grimaldi revealed he has no confidence in this technology whatsoever – he even added that all those

5/2024 | Baltic Transport Journal | 65

EVENTS

rotors and sails are just for getting EU money).

Salerno also noted that owners-operators face many oftentimes confusing options as to what will be the fuel(s) of the future. This is, he continued, particularly troublesome for tramp shipping since opting for a concrete future fuel choice will automatically close the door to calling to harbours that do not offer this particular bunker. In Salerno’s opinion, the future will belong to fuels that either come without carbon at all in their structure or biofuels from non-edible sources (but he wouldn’t be himself if he didn’t even briefly mention the option of installing modular nuclear engines on board ships).

After that, the panel shifted towards regulations. What was even more interesting than what was explicitly voiced, namely the particulars of the EU ETS, FuelEU Maritime 66 | Baltic Transport Journal | 5/2024

and IMO’s own works on global short-/mid-/ long-term mechanisms, was the tension caught in between words. The ‘rope pulling’ was between regional and global rules, with all parties seemingly agreeing that the latter would be the best way forward. That said – or rather unsaid – nobody risked staking a claim that if it weren’t for regional regulations, most notably those set in motion by the EU (including sulphur and nitrogen emission control areas), the shipping industry would be more than happy to sail on heavy fuel oil until kingdom come (and one day more for that matter). As such, the compromise the EU is willing to do in favour of the IMO is to review the block’s ETS once the global regulator (finally) comes up with a(n) (enforceable) solution of its own. At the same time, some IMO Member States already feel resentment

towards the EU as its measures also tax trade by sea outside the block’s borders and that money it collects will only go to greening European shipping (with the subsequent threat of ‘exporting’ the most polluting ships to other corners of the world).

Before the second panel, The role of the public and private sectors in enhancing port activities in the Euro-Mediterranean Region, the Grimaldi Group presented the first row of its Excellence Awards 2024 (the remainder was awarded during the gala dinner), with Hans Ahola from the Kokkola-based Ahola Transport receiving the Career Award. The debate itself, moderated

by George Xiradakis, Managing Director of XRTC, included Minas Papadakis, CEO of the Port of Heraklion, Pino Musolino, Chairman of the North-Western Ports of Italy, Andrea Annunziata, Chairman of the Central-Western Ports of Italy, and Guido Grimaldi, Chairman of the Igoumenitsa Port Authority and President of Associazione Logistica dell’Intermodalità Sostenibile (ALIS; the Sustainable Intermodality Logistics Association).

The discussion was initiated by Musolino, who said that decarbonisation is as much a public as it is a private goal that is best realised by better services that, in turn, stem from constant research and development.

Musolino’s words were echoed by his fellow port colleague from the Central-Western Ports of Italy, who underscored that business is what drives investments. Next was Guido Grimaldi, who went at length (and without mincing his words) why, in his opinion, the shipping business became the regulatory ‘whipping boy.’ After giving the EU ETS and FuelEU Maritime a hammering, he reiterated his father’s assertion that “what comes from the sea should go back to the sea.” It makes no sense, Guido Grimaldi expressed, to tax shipping and give nothing (or a trickle) in return. EU regulations as they function now will, in his view, result in a modal backshift, with cargo flows increasingly going by trucks, a transport sector that’s not forced to account for its externalities that negatively impact the environment, infrastructure, and people. Musolino took up the baton and warned Europe to stop spinning its “eco fairy tale” and instead focus on sound (public-private) investments that tackle global issues in a global manner. This topic – and the assertive way of talking about it – was later also present during the press brief with Emanuele Grimaldi, who blamed the EU for decreasing its own competitiveness and blunting the edge of the continent’s industries through ill-thought-out policies as well as protectionism (“the last breath of a dying man,” as he vividly described any doomed to fail actions to stifle free trade).

WHO IS WHO ERIK AHRÉN CFO, Wallenius SOL

ANDREAS ALFREDSSON Business Controller, Swedish Orient Line

Ahrén joins the Swedish shipping line from the Port of Gothenburg, where he was also a Chief Financial Officer (as well as Vice President of Finance, Legal & Procurement). Holding a master’s in business and economics from the University of Gothenburg’s School of Business, Economics and Law, Ahrén’s rich working career involved employment by, among others, Witre Manutan (also as CFO), BIC (Finance Manager) and the Trelleborg Group (in various control and finance roles).

A civil economist from Karlstad University, Alfredsson joins the Gothenburg-based shipping line from the Hedin Mobility Group, where he was also a Business Controller.

Earlier, he had worked with Hedin Bil, GKN Aerospace, and MQ Retail.

JACEK DUBICKI Board Member, Port Gdański Eksploatacja (PGE)

MARCUS ELIASSON Marine Operator, Swedish Orient Line

Dubicki, holding a master’s in sea transport (with a specialisation in port management) from the University of Gdańsk, a post-grad diploma in shipping & port management from the University of Delaware and an MBA from Strathclyde Business School, has joined the team of the stevedore active in the Port of Gdańsk. During his over 35-year-rich career, Dubicki worked for, among others, BCT Gdynia, the Port of Gdańsk Authority, OT Port Gdynia, and PGE (as Director of Trade and Development).

A graduate in sea shipping and logistics from the Chalmers University of Technology, Eliasson joins SOL from another Swedish shipping line, the Ystad-based AtoB@C Shipping, where he also dealt with operations.

Before that, he had worked as an air freight forwarder for PostNord Sweden.

DOMINIK LANDA Head of Strategy and Development, Port of Gdańsk

PIRET MÜRK-DUBOUT Managing Director, Tallink Silja AB

Landa, a BSc in informatics and MSc in transport & logistics from the University of Gdańsk and an MBA holder from the Rotterdam School of Management/Gdańsk Foundation for Management Development, is back in Gdańsk, where he had worked for 11 years as a CCO and Business Development Director at DCT Gdańsk.

Landa’s most recent employment was with HHLA Intermodal as Director of Strategic Business Development and Intermodal. He is also a Podcast Host at ETA(.)fm and a shareholder of OFF-DOCK Gdańsk.

The Swedish arm of the Estonian ferry & ro-ro line is now headed by Piret Mürk-Dubout, who has been a Member of the Management Board of the parent Tallink Grupp for the past five years (a job she’ll keep in her new occupation).

Mürk-Dubout is an alumna of the University of Tartu (journalism & philosophy, law), an MBA holder (with a major in general and personal management) from the Estonian Business School, and a graduate of London Business School’s Senior Executive Programme.

PAILLETTE PALAIOLOGOU SVP M&O East Europe, Mediterranean Sea, Middle East, Africa & India (EMA), BV

SUZANNA SVENSSON ATAY Business Development Manager, ShoreLink

With Bureau Veritas since 2013, Palaiologou started working for the Group as Sales, Marketing & Business Development Manager for the Hellenic & Black Sea region. She recently filled the post of Vice President of Marine & Offshore Division for BV’s South East Europe, Black Sea & Adriatic (SEEBA) Zone. Palaiologou holds a bachelor of engineering in naval architecture and marine engineering from the University of Glasgow and a master’s in marine engineering from Newcastle University.

68 | Baltic Transport Journal | 5/2024

A master mariner with a bachelor’s in nautical science from the Chalmers University of Technology and another bachelor’s degree in business administration from the University of Gävle, Svensson Atay was most recently employed by the Swedish Port of Luleå as a Harbour Master.

She has already worked with ShoreLink, first as a shipping agent and then a port administrator.

Svensson Atay also sailed the seven seas as Deck Cadet and Officer (3rd, 2nd, and 1st with Dream Cruises).

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