Baltic Transport Journal 2/2022 by Baltic Transport Journal

OFFICIAL MEDIA PARTNER OF: ISSN 1733-6732 ECONOMY The impact of the Russian aggression on Ukraine on transportation Baltic TransportJournalbimonthly-daily companion SUSTAINABILITY Decarbonising shipping – successfully and fairly MARITIME Addressing crane cracks and fatigue – before it is too late № 2/2022 (106), MARCH/APRIL

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Dear Readers, Baltic Transport Journal Publisher BALTIC PRESS SP. Z O.O. Address: ul. Pułaskiego 8 81-368 Gdynia, Poland office@baltictransportjournal.com www.europeantransportmaps.comwww.baltictransportjournal.comBoardMember 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 JONATHAN ARNEAULT, HENDRIK BRINKS, CHRISTOS CHRYSSAKIS, ED COX, DELPHINE GOZILLON, ROBERT KEEN, JOHN LUND, STEVE MARSHALL, RICHARD PHILLIPS, FITZWILLIAM SCOTT, PEREGRINE STORRS-FOX, OLIVIA SWIFT, ANDRZEJ URBAŚ Art Director/DTP DANUTA SAWICKA Head of Marketing & Sales PRZEMYSŁAW OPŁOCKI po@baltictransportjournal.com Marketing & Sales EWELINA SYNAK ewelina@baltic-press.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 Cover Przemysław Myszka Subscriptions Go to www.baltictransportjournal.com and click: SUBSCRIPTION or contact us subscription@baltictransportjournal.comat OFFICIAL MEDIA PARTNER OF: ISSN 1733-6732 ECONOMY The impact of the Russian aggression on Ukraine on transportation Baltic TransportJournalbimonthly-daily companion SUSTAINABILITY Decarbonising shipping – successfully and fairly MARITIME Addressing crane cracks and fatigue – before it is too late № 2/2022 (106), MARCH/APRIL An Allegory of Victory, Jules Joseph Lefebvre, photo: Artvee

ere we shocked by the Kremlin’s aggression on Ukraine? Not that much – in the sense that nations formerly behind the Iron Curtain have first-hand experience of what might come from Moscow. And it ain’t pretty. Poland and the Baltic States’ historical-emotional baggage goes even further back when their nations were under St. Petersburg’s thumb. The term ‘understanding putin’ correlated nothing but bad news. As sadly evidenced by the recent events. What, in turn, shocked us as emphatic beings is that a deranged, unrestrained lunatic has put fire to our neighbour’s house, butchering their dwellers. I salute the brave defenders of Ukraine and all their friends near and far, who stand united and support the effort. We are on the right side of history. We are scrutinising the topic from a transport angle – how the Russian aggression has impacted the world of transport & logistics. History is in the making, so new facts and implications come to the fore every day. We will surely update our mini-report with newApartintel. from that, it is your tried and trusted issue of the Baltic Transport Journal. Several reads take you through the economic, sustainability, and tech landscape of what the future has probably in store for our industry. Specifically, we are writing about decarbonising sea shipping – sustainably and fairly. In this context, one read puts the spotlight on ammonia as a marine fuel, while another on the necessary changes to the FuelEU Maritime if it is to push the greening of shipping forward – not astern as many are concerned with the current proposal. Another facet of ships’ lives is decommissioning; it can be done the green or the wrong way, as detailed in an article (luckily, an uplifting one) on recycling yards. There is nothing like an inspiring energy efficiency read, so please enjoy the pieces on green bunkering chains and a bio-inspired anti-fouling and drag-reducing air lubrication system. Transitioning to a circular economy model is an evergreen, especially regarding logistics, so we are duly hosting a new article. Giving Russian hydrocarbons the finger will only accelerate the electrification of Europe’s economy. As such, we highlight the perils of transporting batteries and list what precautions have to be taken to lower the risks. Other areas of the maritime sector also deserve to pay careful attention to, among others, seafarers’ mental health and the condition of cranes. Both can lead to the loss of life or limb, at the same time ruining assets and operations. Finally, to blow off some steam, the Heritage corner and Transport miscellany. The former is a tip of the hat to Greenpeace’s Esperanza (a made in the Baltic ship!) for her dutiful life. With the latter, we are paying tribute to Lithuanian book smugglers, who were a real rub to Imperial Russia. There is also an entry about what made dogs wag their tails in Gdynia. Lastly, we bow down to all the women pursuing their careers in transport & logistics. Although you are probably reading this well past 8 March, happy Women’s Day nonetheless!

EDITORIAL 2/2022 | Baltic Transport Journal | 3

Przemysław Myszka

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CONTENTS 2/2022 | Baltic Transport Journal | 5 23 ECONOMY 23 War & logistics The impact of the Russian aggression on Ukraine on transportation by Przemysław Myszka 28 The great cut-off Can LNG replace Russian gas in Europe? by Ed Cox 30 Going around in circles? The why’s and do’s of circular economy by Ewa Kochańska 34 We need fair competition Container shipping lines under scrutiny: portent of market re-opening? by Robert Keen 36 MARITIME 36 Humans first, workers second Have mental health interventions made a difference during the COVID-19 crew change crisis? by Dr Olivia Swift 38 Smells like sustainability Harnessing ammonia as ship fuel by Hendrik Brinks and Christos Chryssakis 40 Ready to drop? Addressing crane cracks and fatigue – before it is too late by Richard Phillips 46 SUSTAINABILITY 46 Bucket of green steam? Decarbonising shipping – successfully and fairly by Przemysław Myszka 56 The ultimate switch Recommendations for adjusting the FuelEU Maritime to drive true decarbonisation of shipping by Delphine Gozillon 60 A significant step forward The EU’s proposal on waste shipments can level the playing field for South Asian ship recycling yards by Steve Marshall 44 LEGAL 44 Taking charge The risks and precautions when transporting lithium batteries by Peregrine Storrs-Fox 3 REGULAR COLUMNS 3 Editorial 8 BTJ calendar of events 10 Market SMS 12 What’s new? 14 Map news 16 Made in China 17 What’s in the Cabinet 18 Venture forth 20 Chart of the issue – A 10-Point Plan to Reduce the European Union’s Reliance on Russian Natural Gas 78 Heritage corner: Hope floats: the Greenpeace Esperanza retires after two decades, but the light shines on by Greenpeace International 84 Transport miscellany 86 Who is who

1,600 tonnes on the move. For your heavylift project, our crane even travels at full load. www.liebherr.com Maritime cranes

CONTENTS 2/2022 | Baltic Transport Journal | 7 66 NEWSLETTER BPO 66 BPO’s EP Debate: the impact of EU’s sanctions, the block’s climate policy, and plans to lessen the dependence on Russian energy by Andrzej Urbaś 67 Frequentis joins the BPO by Andrzej Urbaś 68 TECHNOLOGY 68 First of its kind Visy’s Automatic Damage Detection System (ADDS) by John Lund 70 In technology’s trust Why accountability in bunkering is required to create greener supply chains by Jonathan Arneault 72 Sailing on air The AIRCOAT project: a new coating solution for reducing maritime shipping emissions by the AIRCOAT Team 76 A spring tender season in turbulent times How technology can bring greater order and certainty into logistics by Fitzwilliam Scott 63 REPORT 63 Baltic port market in 2021 by Marek Błuś

Transport Week , 14-15/06/22, PL/Gdynia, www.transportweek.eu

BTJ CALENDAR OF EVENTS 8 | Baltic Transport Journal | 2/2022

Welcome to the AGM for port and cargo supply chain professionals – where the global community will be re-connecting once again face-to-face in 2022! With an unrivalled 40+ year heritage, here is the place to access C-level decision-makers and influencers, engineers, automation leads, digitalisation specialists and more, all hungry to access the latest tech to supercharge their port operation strategies – all underneath one roof. With the industry now keen to get back on the road towards growth, this is the essential event that container supply chain professionals turn to year-on-year to embrace the exciting new tech revolutionising the sector. Poland2022 AGENDA Feat. European Green Deal in transport and logistics by Namiary na Morze Handel

World Ports Conference 2022 , 16-18/05/22, CA/Vancouver, www.worldportsconference.com

The ITS Congresses also represent the ultimate showcase of mobility services deployment and are the means for the ITS Community to keep pace with the incredible evolution of the industry.

WOF EXPO, 12-13/10/22, CZ/Prague, wofexpo.com

TOC Americas , 18-20/10/22, PE/Lima, www.tocevents-americas.com

Focusing on the three main pillars: digitalisation, e-commerce, and the EU Green Deal, this two-day B2B event will provide the perfect platform to learn about the latest updates and discover where future opportunities for collaboration lie from government, industry, and business leaders. The Summit will also house the WOF Connect & Charity networking evening where business meets charity.

International Rail Forum & Conference 2022 , 5-7/10/22, CZ/Prague, irfc.eu/en

WOF Summit 2022 , 4-5/05/22, AT/Vienna, www.wofevents.com/en_GB/

Baltic LNG & Gas Forum , 7-8/06/2022, LT/Klaipėda, informaconnect.com/baltic-lng-gas-forum

It will be the second year of the international B2B exhibition focused on the Central & Eastern Europe region. This year around, it will place at PVA Expo Prague. Similar events abroad inspired the organisation of the WOF EXPO, as CEE, a very dynamic region, had none. From the need to an idea to a bustling B2B business platform, an innovative logistics, e-commerce, and supply chain event was born. WOF EXPO will be the ideal spot for anybody seeking and presenting opportunities for the ‘New Europe’ region – your go-to networking event.

The ITS Congresses underline the importance of Intelligent Transport Systems (ITS), particularly in cities and regions where they are hosted and are important channels to raise awareness of smart mobility solutions among policymakers, experts and the general public.

TOC Americas is a market-focused conference & exhibition which takes place annually in one of the world’s key shipping hubs. This conference-led event is the complete container supply chain show for Americas, bringing together shippers, logistics providers, shipping lines, 3PLs, port authorities, terminal operators and other key audiences to learn, debate and network. Dry bulk shipping professionals will also have a dedicated conference track.

TOC Europe , 14-16/06/22, NL/Rotterdam, www.tocevents-europe.com

The Transport Week series returns as great speakers and an ever engaged audience gather to get the latest insight on topics defining the shape of the transport industry. Join us during two days filled with presentations and discussions on a broad range of issues, ranging from the impact of the EU’s climate policy on the transport sector, through an in-depth analysis of the container, ro-ro and ferry markets, to a closer look at the most exciting infrastructure projects currently underway in the Polish ports.

14-15 June

CONFERENCEGdynia

After two years of absence due to the health situation, the Consortium of the Free Zone of Barcelona (CZFB) promotes the celebration of the 22 nd edition of the International Logistics and Material Handling Exhibition (SIL), one of the main meetings of the logistics sector in Europe, where the entire logistics chain is represented.

TOC Asia , 29-30/11/22, SG/Marina Bay Sands, Singapore, www.tocevents-asia.com

SIL Barcelona , 31/05-2/06/22, ES/Barcelona, www.silbcn.com/en/index.html

ITS European Congress 2022 , 30/05-1/06/22, FR/Toulouse, itseuropeancongress.com

Join industry game changers who are altering the Baltic gas and LNG markets by providing greater energy security and meeting European climate change targets. The Forum’s agenda will focus on topics such as ensuring energy security in the Baltic region; addressing infrastructure challenges (with a spotlight on small & mid-scale projects); analysing supply & demand (incl. LNG in maritime and road transport); finding out how regulations and policy are changing the market outlook; and assessing the role of interconnectors in international gas flows.

The 2022 edition of the World Ports Conference (#IAPH2022) – organised by the International Association of Ports and Harbors and hosted by the Port of Vancouver – will bring together leading port stakeholders in a new format to #ClosetheGaps in global seaport competitiveness, setting an agenda to raise the performance of the world's major port regions.

After two years of industry change, port technology advancement and digital acceleration, we are pleased to bring the industry back together face-to-face. Take part in our two-track content agenda to hear from change-makers within the global container supply chain and discover the latest innovations within terminal operations. Alongside our first-class conference, you will also benefit from a global port technology exhibition and the return of TOC’s famous social programme.

transport logistic , 9-12/05/23, DE/Munich, www.transportlogistic.de/en

The International Railway Forum & Conference (IRFC) is one of the leading events in the international railway calendar. It will bring together top executives and decision-makers, rail and logistics professionals, customers, influential politicians and institutions from across Europe. The 2022 edition will, i.a., focus on innovative technologies and best practices in rail freight and logistics in Europe and across the Euro-Asian market, along with European and Asian manufacturers, freight and intermodal operators and forwarders presenting solutions, products and services. The best railway-related projects will be showcased, too.

The world’s leading trade fair for logistics, mobility, IT, and supply chain management has been taking place in Munich since 1978. The trade fair, accompanied by a conference programme, presents the optimal solutions for every requirement, combining innovative products, technologies, and systems with pooled expertise and a strong sales focus.

oxhamn.se

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.

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.

Discover the perfect view for a port.

Tallink & Silja Line: 101,938 ro-ro cargo units carried in Q1 2022 (+19.7% yoy)

Total 101,938 +19.7% Passengers Estonia-Finland 427,805 +112% Finland-Sweden 229,905 +310% Estonia-Sweden 62,551 +545% Total 720,261 +169.5% Private vehicles in ferry traffic Estonia-Finland 122,426 +80.7% Finland-Sweden 13,200 +70.6% Estonia-Sweden 4,754 +1,328% Total 140,380 +85.2% DFDS: 43,011k lane metres filled in 2021 (+5.2% yoy) Counting 18 metres per one unit, the company’s fleet transported some 2.39m trucks & trailers and other cargo transport units Europewide last year. DFDS’ volumes Market 2021 yoy Ro-ro & ferry cargo traffic Channel 19,316k lane metres 1,073.1k cargo units +1.5% North Sea 13,769k lm 764.9k +5.7% Mediterranean 5,034k lm 279.7k +24.8% Baltic Sea 4,467k lm 248.2k +0.7% Passenger 425k 23.6klm +18.4% Total 43,011k 2,389.5klm +5.2% Logistics (thousand cargo units) Dry goods 325.4 +8.7% Cold chain 218.9 -3.1% Total 544.3 +3.6% Passenger traffic (thousand ferry travellers) Channel 441 -55.4% Baltic Sea 214 +2.4% Passenger 214 -28.7% Total 869 -42.0% The Port of Hirtshals: 152k trucks & trailers handled in 2021 (+6.3% yoy) The Danish seaport took care of 2.02mt last year, up 7.4% on the 2020 result. Hirtshals’ 2021 passenger traffic was on a par with 2020 when some 1.1m travellers were served. Photo: Tallink Grupp/Jony Karlsson

The Port of Amsterdam: 71.3mt handled in 2021 (-4.0% yoy)

The company’s fleet also served 720,261 passengers over 2022’s first three months, up by 169.5% year-on-year.

The turnover of oil products, freight (+27.3% yoy).

Estonia-Sweden

For more Market Statistics Made Simple please visit: www.baltictransportjournal.com 10 | Baltic Transport Journal | 2/2022 The Port of Helsinki: 2.33mt handled in I-II 2022 (+7.2% yoy) The Finnish seaport’s international freight traffic totted up to 2.30mt (+6.8% year-on-year), while cabotage added the remaining 27.7kt (+61.6% yoy). The Port of Helsinki’s volumes I-II 2022 yoy Traffic by cargo group (thousand tonnes) Unitised, of which Wheeled Containerised(ro-ro) 651.71,345.51,907.2 -5.8%+11.3%+5.7% Dry bulk 233.0 -2.1% Break-bulk 172.4 +51.7% Total 2,332.6 +7.2% Detailed unitised freight traffic Ro-ro cargo units 106,033 +11.9% TEUs 67,438 -12.1% Passenger traffic Tallinn 494,566 +88.8% Stockholm 80,218 Travemünde 13,136 +69.1% Mariehamn 1,588 Other 12 -75.5% Total 589,520 +118.5% Vehicles in ferry traffic 143,700 +65.5%

Tallink & Silja Line’s volumes Route Q1 2022 yoy Ro-ro cargo units

totalling 35.7mt, noted the sharp est decrease of 12.9% year-on-year. Other dry bulk goods came in second with 11.7mt (-0.8% yoy), followed by 10.4mt of coal (+40.5% yoy), 6.6mt of agro-bulk (-12% yoy), 4.1mt of other liquid bulk (-4.7% yoy), 1.5mt of wheeled (ro-ro) cargo and break-bulk (+7.1% yoy), and 1.4mt of containerised

Estonia-Finland 69,997 +21.5% Finland-Sweden 18,846 +11.2% 13,095 +23.4%

Hupac: 1,123,562 road consignments carried by rail in 2021 (+10.7% yoy)

The company’s fleet also transported 1,410kt of non-unitised freight, noting a year-on-year increase of 27.4%. On the passenger side, Finnlines served 572k travellers, up 14.2% on the 2020 result. The shipping line’s ferries also carried 171k private vehicles (+11% yoy).

Hupac’s Transalpine traffic via Switzerland came in first with 597,512 con signments (+11% year-on-year), followed by Non-transalpine – 479,181 (+10.4% yoy) and Transalpine via Austria and France – 46,869 (+10.2% yoy). Container-wise, the company transported 2,118k TEUs last year.

Kombiverkehr: 937,959 road consignments carried by rail in 2021 (+9.3% yoy)

The company’s international services advanced by 8.5% year-on-year to 663,949 consignments, those within Germany – by 15.4% yoy to 190,521, and to & from the country’s Baltic ports – by 3.2% yoy to 83,486. Translated into containers, Kombiverkehr transported some 1.88m TEUs last year.

Wasaline: 107,659 passengers served in 2021 (+87.5% yoy)

The Port of Helsingborg: 8.39mt handled in 2021 (+5.5% yoy) The Swedish seaport also served 4.01m passengers, a 12.5% increase on the 2020 result. Helsingborg’s container traffic rose, too: seaborne by 2.2% year-on-year to 273k TEUs and railborne by 9.1% yoy to 24k twenty-foot containers. Wheeled cargo traffic also advanced – by 0.7% yoy to 450k ro-ro cargo units.

Finnlines: 785k ro-ro cargo units carried in 2021 (+8.6% yoy)

MARKET SMS 2/2022 | Baltic Transport Journal | 11

The Port of Hamburg: 8.7m TEUs handled in 2021 (+2.2% yoy) Of these, 5.4m TEUs were taken care of in hinterland traffic (-1.8% year-on-year), while the remaining 3.3m TEUs in transhipment (+10% yoy). Rail-bound container flows amounted to 2.79m TEUs (+8.1% yoy). Barges carried 128.5k TEUs (-17.1% yoy). Truck transports accounted for the remaining 2.48m TEUs (-10.2% yoy). In total, the German port handled 128.7mt (+1.9% yoy), of which 73.8mt in import (+5.2% yoy) and 54.9mt in export (-2.2% yoy) traffic. With 87.7mt (+1.3% yoy), containerised freight topped Hamburg’s cargo turnover, followed by 21.6mt of dry bulk (+11.3% yoy; excluding agricultural products), 11.8mt of liquid bulk (+1.7% yoy), 6.4mt of agro-bulk (-14.7% yoy), and 1.2mt of break-bulk (+6.9% yoy).

The Finnish-Swedish ferry company also transported 21,259 ro-ro cargo units, a 25.3% year-on-year increase. In addition, the company’s Wasa Express and then Aurora Botnia carried 24,590 passenger vehicles (+69.2% yoy).

Furetank receives a green credit guarantee

The two have signed a letter of intent enabling the set-up of a 5,000t/year lique fied biogas (bioLNG) plant in Eskilstuna. Production is likely to start in Q4 2023. Gas will be extracted from manure and food waste coming from the municipalities of Eskilstuna and Strängnäs and then upgraded to bioLNG for use as fuel. Furetank will take at least three-quarters of the production over ten years. The bioLNG production plant has received SEK140m (about €13.4m) in climate investment support from the Swedish Environmental Protection Agency. Furetank will use the bioLNG to lower the carbon footprint of its fleet, including minimising the company’s exposure to the inclusion of sea shipping into the European Union Emission Trading System.

Thun Tankers’ other NaabsaMAX – delivered

The Ferus Smit shipyard in the German Leer handed Thun Britain over to the Dutch-Swedish shipping line, the second in a series of two ‘Not Always Afloat But Safely Aground’ tankers (Naabsa). The 79.9 by 15 m, 4,250 dwt, 1A ice-class vessel offers 4,800 m3 cargo capacity (across eight coated tanks suited to transport oil products and IMO type II chemicals). Like her sister ship Thun Blyth, Thun Britain has been chartered to the Geos Group, a supplier and trader of marine gas oil. The pair will serve harbours with tidal restrictions, being able to rest on the seabed while (un)loading during low tide.

The Swedish Export Credit Agency (EKN) has, for the first time, given its guarantee to a shipping company. It will be used to pre-finance Furetank’s next oil products and chemicals tanker in the Vinga-series. The guarantee will cover 80% of the lender Tjörns Sparbank’s risk. Anders Hermansson, Head of the Swedish Shipowners’ Association, praised EKN’s move, “It is an extremely positive decision for the shipping sector, which is a capital-intensive industry where climate investments costs are high and difficult to sustain internally. It is a big step for shipping’s green transition globally, where Swedish shipowners top the environmental list. When our members invest in new technol ogy, it pushes the boundaries not only for the given vessel but for the entire sector.”

Finnlines lays keel for Finnsirius Works are proceeding on the company’s hybrid ferry, set for delivery with her sister ship Finncanopus in autumn 2023. The keel-laying ceremony for Finncano pus will take place at China Merchants Jinling Shipyard in Weihai in August 2022. Each of the 235 m long 1A Super ice-class ferries will offer room for 1,100 passen gers (across 323 cabins) and provide 5,200 lane metres of cargo capacity. The two will serve Finnlines’ traffic between Kapellskär and Naantali via the Åland Islands.

For more news items please visit: www.baltictransportjournal.com 12 | Baltic Transport Journal | 2/2022

Furetank-Eskilstuna Biogas bioLNG deal

SmitFerusPhoto:DSVPhoto:

The parties say it can cut the facility’s carbon footprint by 42% relative to a scenario without the installation. Year-wise, the solution will help avoid emitting around 113t of CO2. Surplus energy can also be fed to the grid. After the trial, DSV will decide whether to furnish its other ware houses with the solar power generation-storage system. The German Sustainable Building Council (DGNB) has pre-certified the facility with the Silver mark. Another 38k m2 warehouse will be added to the Hede husene complex by 2022-end, increasing its capacity to 231.5k m2

The company has added a new 95k m2 facility to its logistics centre in Hedehusene. The warehouse features the AutoStore automated robotic storage and picking solution, available to multiple users. It also offers GMP- and GDP-certified cooling and freezing facilities, with several tem perature zones extending to -80°C. Together with Hybrid Greentech, DSV is testing a solar cell and battery solution atop the warehouse.

DSV’s new multiuser warehouse near Copenhagen

First, Remontowa Shiprepair Yard has ordered Wärtsilä’s 31DF dual-fuel engines for the three ro-paxes it is constructing for Polferries and Unity Line, plus the producer’s LNGPac fuel storage, supply and control system. Next, the yard will receive a complete power, automation, and propulsion package for furnishing the vessels. The ABB order includes batteries, the Azipod electric propulsion (two 7.5 MW units/vessel), and the equipment to draw power from the shore. The Polish shipyard will deliver the newbuilds one apiece in 2025, 2026, and 2027. Each of the 195 m long, dual-fuel (LNG/bioLNG) hybrid ferries will offer room for 400 passengers and 4,100 lane metres for trucks & trailers. The ships will connect Świnoujście with Ystad and Trelleborg. The ferry lines intend to run their newbuilds entirely on liquefied biogas by 2025.

Gdańsk to kick off another modernisation project

Poland’s new ferries to feature ABB and Wärtsilä’s tech

The Polish port will invest PLN533m (around €112m, including the EU’s support of €95m) to upgrade four quays in its Inner Harbour. In total, some 1,916 m of quay wall will be revamped across the Bytomskie, Wiślane, Rudowe III, and Węglowe quays to accommodate larger and deeper vessels served with modern cargo handling equipment (such as Liebherr’s LHM 550 mobile harbour cranes). The European Climate Infrastructure and Environment Executive Agency is currently evaluating the project, with the port authority expecting to see the green light in June 2022. Once inked, the project will have been completed by 2026. The Port of Gdańsk recently completed its previous Inner Harbour overhaul project (PLN595.5/€125.5m, co-funded by the EU’s Connecting Europe Facility), covering 5.0 km of quay wall and which also included deepening the fairway (9.35-10.6 m of ship draft).

CranesMaritimeLiebherrPhoto:

300th Liebherr LHM 550 – delivered Port Gdański Eksploatacja (PGE) has received the celebratory machine, the most popular mobile harbour crane in Liebherr’s portfolio.

European Green Corridors Network – established Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping has partnered with the ports of Gdynia, Hamburg, Rønne, Rotterdam and Tallinn to advance the decarbonisation of the maritime industry. The partnership will demonstrate the early commercialisation of alternative fuel supply chains, provide a roadmap to scaling them up, and create a blueprint for rolling out green corridors in other locations. The parties will start with a pre-feasibility to identify the potential routes, vessel types, and fuels to establish high impact green corridors in the Baltic and the North Sea regions. The next phase will assess the shortlisted routes’ technical, regulatory, and commercial feasibility. Finally, the project partners will implement the vision and establish green corridors in Northern Europe and the Baltic Sea.

PGE’s LHM 550 has a boom length of 48 m and a lifting capacity of 104t. The crane will be primarily used to handle coke, coal, and scrap metal. The first LHM 550 was delivered to a client in Kuwait in 2010.

WHAT’S NEW? 2/2022 | Baltic Transport Journal | 13

Karlshamn to grow logistically CH Square and Swedish Logistic Property (SLP) have exercised their options to develop additional land in Karlshamn – in the direct vicinity of the port and its rail terminal. CH Square, which should have finished a 23k m2 logistics centre on behalf of DFDS by 2022-end, will develop an additional 50k m2 in the southern part of Stilleryd in the Municipality of Karlshamn. At the same time, SLP has decided to develop an extra 25k m2 in Stilleryd, too. The Municipality of Karlshamn owns around 2.0m m2 of land near the port and the town’s rail network, of which 1.0m has already been planned in detail. The rest, earmarked for logistics and industry, will receive their detailed plans shortly.

More runs on TX Logistik’s Leipzig-Verona intermodal service

The Swiss rail company launched on 2 March 2022 a once per week shuttle between Belgrade and Vienna. Hupac’s trains are handled at the WienCont terminal in Austria and in Serbia at the Dry Port Terminal Pancevo.

With the help of CargoNet and Nurminen Logistics, the Norwegian Port of Narvik will set up a twice a month route linking it with the Haparanda-Tornio SwedishFinnish border crossing. The service is due for launch in late April 2022. CargoNet will be responsible for the Norway-through-Sweden rail leg, while Nurminen Logistics for freight forwarding within Finland. Meanwhile, Norway’s rail infrastructure manager Bane NOR is upgrading the Port of Norvik’s rail freight ter minal to handle 100k TEUs/year.

Hupac links Austria and Serbia

The Sofia-based Gopet Trans, with the help of Hupac, has started connecting Antwerp and Halkalı with a stopover in Duisburg. The new intermodal service mainly carries 45’ high cube containers.

Additional departures on Kombiverkehr’s North-South routes

The country’s PostNL has kicked off a rail service, which sees trailer train sets going weekly between Coevorden and Oslo. The connection will be one of the means of helping the Dutch postal company decrease its carbon footprint by 80%/kilometre versus the 2017 level. The CoevordenOslo service will be some 70% environmentally friendlier than pure truck transports, saving around 30t of CO2 /year.

First, the Tango Rail Line has been put in place, offering a once per week round-trip between the Belgian port (MPET, AG, PSA) and Birsterminal in Birsfelden (via Terminal Container Athus in southern Belgium). Second, Contargo has linked its Industrial Park Frankfurt-Höchst with the Port of Antwerp. It is also a weekly connection, with the train sets leaving Frankfurt on Mondays and arriving in Antwerp the next day.

Dutch post back on rails – after 25 years

As of 5 April 2022, the company’s trains link DUSS-Terminal in Germany with the Sommacampagna-Sona facility in Italy eight instead of six times per week. The LeipzigVerona round-trips include a stopover in the Austrian Hall. A single train set offers the capacity of 34 units for carrying both containers (including bulk and tank) and trailers. The company says it will likely further increase the frequency of the Leipzig-Verona service, following the current high market demand for rail transport capacity.

Antwerp’s two new intermodal services

Starting from the end-March 2022, the container carrier weekly connects the Baltic seaports of Klaipėda, Gdynia and Gothenburg and the North Sea Bremerhaven with New York, Philadelphia and Norfolk. The transit time to NY from Klaipėda is 15 days, Gdynia – 13, and Gothenburg – 11.

Photo: TX Logistik Photo: Birsterminal Photo: TT-Line

From Belgium to Turkey – by rail

MSC connects the Baltic with US East Coast

First, the company has increased the frequency of its Rostock-Verona inter modal service to seven weekly round-trips. Next, the timetable of the ColognePort of Trieste link has gained an extra departure, up to four/week now.

For Europe-wide maps news on  ro-ro & ferry container intermodal please visit: www.europeantransportmaps.com 14 | Baltic Transport Journal | 2/2022

The GT 56,138, 230 by 31 m, gas-run ro-pax – offering room for 600 passengers and 4,600 lane metres of cargo capacity – arrived in Germany after about a month. Nils Holgersson ’s sister ship’s delivery is expected for autumn 2022. TT-Line’s ferry that bore the name Nils Holgersson will be renamed Akka

New Norway-Finland rail service

TT-Line’s first Green Ship sets sail for the Baltic Nils Holgersson, the first in a series of two new ferries for the German Baltic ship ping line, left the Chinese Jiangsu Jinling Shipyard heading for Travemünde.

Photo: Stena Line

POH_205_x_133.5.qxp_(BTJ Package 2021) 13.04.21 17:28 Seite 1 New intermodal Germany-Turkeyservice

MAP NEWS

service

The recently jumboised Stena Scandica and Stena Baltica will continue serving the Norvik-Ventspils crossing.

links the

cube pallet wide).

YOUR PORT JUST ONE CLICK PORTOFHAMBURG.COMAWAY. Port

New

The Lithuanian Intermodal Container Service is trialling a potentially regular service connecting its Kaunas facility with DCT Gdańsk. The test run arrived at the deepwater container terminal in Poland on 16 February; transit time amounted to two days. of Hamburg Marketing Pickhuben 6, 20457 Hamburg, Germany Phone: +49 40 377 09-0 info@hafen-hamburg.de

ers (including mega box) and containers

CEVA Logistics has launched a new daily route that rail terminals in Halkalı in Turkey and Duisburg in Germany. The is open for trail (45’ high The transit time of the HalkalıDuisburg connection is six days. Stena Line’s E-Flexers repositioned within the Baltic

The two under construction ferries previously planned to enter the Norvik-Ventspils service will now be put on the Gdynia-Karlskrona one. The yet-to-be-named ro-paxes, each 240 m long and offering room for 1,200 passengers and 3,600 lane metres for transporting freight, will start plying between Poland and Sweden this July and November. In Gdynia, the newbuilds will berth at the brand-new Public Ferry Terminal. The ferries are equipped to draw power from the shore.

New intra-Swedish rail service Green Cargo has started connecting the Arken Intermodal Terminal in the Port of Gothenburg with Train Alliance’s facility in Rosersberg near Sweden’s capital. The service runs six times per week, offering 40 cargo transport units of capacity per journey. Paper products destined for the British and French markets make up the bulk of the new service’s volume. There are plans to increase the Gothenburg-Rosersberg timetable to two trains/day. containerLithuania-Polandraillink

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COSCO’s new China-Europe container train

The Finnish company and Kazakhstan Temir Zholy (KTZ), the country’s national railroad haulier, have partnered to trial rail shipments along the Middle Corridor. The two plan to run trials in April-June 2022, sending China-Europe train sets via Kazakhstan, Azerbaijan, and Georgia. If successful, the compa nies intend to establish a commercial offering by September 2022. In addition, Nurminen Logistics and KTZ will cooperate on the former’s China-Finland services. Specifically, they want to use Kazakhstan-registered & owned wagons to avoid falling under sanctions imposed on Russian rail companies.

Second Vietnam-Belgium train – scratched before launch

The company launched a new service between Qingdao and Mannheim, with the first set leaving the Chinese city on 18 February. The train carried 100 containers loaded with, among others, auto parts, daily necessities, and raw chemical materials and was expected to arrive in Germany after 22 days.

Middle Corridor rail JV – in the making Azerbaijan, Georgia, Kazakhstan, and Turkey will set up a joint undertaking to facili tate Asia-Europe rail traffic through the Trans-Caspian International Transport Route, also known as the Middle Corridor (a trade lane that omits Russia and Belarus). The JV will offer transport & logistics services, including an IT platform to automate the China-Turkey freight flow and then farther towards western Black Sea ports (Constanța, Odesa, and Istanbul) for onward shipment (also by rail to Poland via Ukraine). The new organisation is expected to be up & running by mid-2023. Plans also speak of linking the Middle Corridor (through Caspian ports) with the International North-South Freight Corridor (Iran, the Arabian Peninsula, Pakistan, India, and eastern Africa).

MADE IN CHINA "THE BEST"THE BEST MAP OFMAP OF THE NEWTHE SILKSILKNEWROADROAD!! * NOT A REAL QUOTE (BUT WOULD BE IF MARCO POLO WAS HERE WITH US – SCAN THE QR CODE AND CHECK FOR YOURSELF!)

Nurminen Logistics-Kazakh railways co-op

The Railways of Transport and Trade Joint Stock Company (Ratraco) planned to connect Da Nang in Vietnam with the Belgian Liège. The service was due for launching in April 2022 to carry IKEA’s furniture, further distributed to Hamburg and Melzo from Belgium. Like the first Vietnam-Belgium con tainer rail link (Hanoi-Liège), the new one was to cross the Chinese Zhengzhou on its way to Europe. Russia’s aggression on Ukraine has put Ratraco’s Asia-Europe business to halt.

WHAT’S IN THE CABINET 2/2022 | Baltic Transport Journal | 17 Project proposals submitted for the 2021 CEF Transport call The European Climate, Infrastructure and Environment Executive Agency (CINEA) has received 447 proposals requesting almost €14.5b in co-funding. The 2021 CEF Transport call for proposals was published in mid-September last year, with a total budget of €7.0b. The proposals’ admissibility and eligibility will now be checked. Afterwards, the projects will be evaluated against the specific award criteria of the call. The entire evaluation process, which will involve external independent experts (with the exception of the Alternative Fuels Infrastructure Facility), is expected to be concluded by the end of June 2022, when the results will be announced. Priority No. of proposals Requested funding (€) Available funding (€) TEN-T Core Network 208 11.48b 3.62b Smart & interoperable mobility 102 1.37b 550m TEN-T Comprehensive Network 39 730m 600m Safe & secure mobility 34 255.7m 250m Adaptation of TEN-T to civilian-defence dual use 26 417.1m 330m Alternative Fuels Infrastructure Facility (AFIF)1 22 131.5m 1.575b Sustainable & multimodal mobility 16 70.6m 125m Total 447 14.46b 7.0b 1 The AFIF call continues to be open, with cut-offs until 19 September 2023 Brest Commitments for the Oceans

Representatives of more than 100 countries, accounting for over half the world’s exclusive economic zones, alongside the UN Secretary-General, UNESCO’s Director-General and the Secretary-General of the International Maritime Organization, have subscribed to the Brest Commitments for the Oceans. In their determination to preserve Earth’s waters, the par ties will work towards protecting biodiversity and ocean resources, facing climate change, and ending plastic pollution. They have also pledged to put oceans atop the global political agenda. Signing the Brest Commitments for the Oceans during the One Ocean Summit this February was the capstone of the French Presidency of the Council of the European Union.

ABS publishes First, the American Bureau of Shipping (ABS) has released its white paper Offshore Production of Green Hydrogen . In it, the class explores the conditions driving the marine and off shore industries toward the adoption and production of green hydrogen, the technologies that make its production feasible, and how those technologies can be incorporated into an off shore facility. ABS is working with Hyundai Heavy Industries (HHI) and Korea Shipbuilding and Offshore Engineering (KSOE) to jointly develop technical guidance for green hydrogen production from offshore platforms, an essential first step in designing and constructing such a facility by 2025. Second, in the wake of recent fire incidents on vehicle-carrying ships, ABS has responded to industry concerns with an update to its Rules on RoRo Vessels in Response to Fires . The new requirements (effective for newly built vessels on 1 July 2022) within ABS’ Marine Vessel Rules include supplemental fire detection, alarms, firefighting equipment, as well as provi sions associated with vehicle recharging. Third, the organisa tion has published the Practical Considerations for Hybrid Electric Power Systems Onboard Vessels maritime techni cal guidance. The publication examines the different forms of hybrid electric power systems, offering practical insight into their application onboard. In detail, it explores renewable energy sources, energy storage systems, battery management approaches, the potential for modelling and simulation, the impact on port infrastructure, and the regulatory landscape.

Fidelis joins the Poseidon Principles for Marine Insurance The Bermuda-based company has become the seventh Signatory of the December 2021-launched initiative, which sets a benchmark for being a responsible insurer in the maritime sector and provides actionable guidance on achieving this. The Poseidon Principles are aligned with the International Maritime Organization’s ambition for greenhouse gas emissions (GHG-E) from international shipping to peak as soon as possible and to reduce total annual GHG-E by at least 50% by 2050 compared to 2008. As a step toward align ment with the Paris Agreement, the Poseidon Principles for Marine Insurance also measure underwriting portfolios against a 100% by 2050 CO2 reduction trajectory. Signatories commit to publicly dis close the climate alignment of their hull and machinery portfolios every year. “Measuring and reporting emission data is the first step towards a sustainable maritime industry as it enables tracking pro gress over time and building a fact-based strategy for reaching cli mate ambitions. As more Signatories join, the Poseidon Principles for Marine Insurance will continue sending a strong signal from leading marine insurers in support of shipping decarbonization,” said Patrizia Kern, Head Marine at Swiss Re Corporate Solutions (also a Signatory) and Chair of the Poseidon Principles for Marine Insurance Drafting Committee. Other Signatories are Gard, Hellenic Hull Management, SCOR, Victor Insurance, and Norwegian Hull Club. Affiliate Members include Willis Towers Watson, Cefor, and EF Marine. International Union of Marine Insurance is a Supporting Partner.

• The Danish seaport has teamed up with the Californian global infrastructure advisory firm specialised in port planning to develop a digital twin for Esbjerg’s future offshore wind harbour. “Port Esbjerg and the supply chain in Esbjerg have vast experience in supporting offshore wind projects, but we need to simulate the future to plan optimally today, and for this, we are excited to work with Moffatt & Nichol,” Dennis Jul Pedersen, the seaport’s CEO, said. “A digital twin allows Port Esbjerg to simulate every operation in context to future projects and optimise the infrastructure accordingly,” Joshua Singer, Offshore Wind Lead with Moffatt & Nichol, explained the project’s target. The Port of Esbjerg has participated in setting up 55 offshore wind parks for some 22 GW of installed capacity.

First, Apotea, Sweden’s largest online pharmacy, will employ three lorries from the Swedish electric and autonomous trucking developers for shipment carriage from a warehouse in Morgongåva to a parcel terminal in Stockholm. Einride’s lorries will be employed all day round, thus replacing some 40-50 trucks that served the route in question. Apotea sends over one million parcels each month.

• The Lauterach-based company has summarised one year of running its very-first hydrogen truck, used for daily short-distance transportation in Switzerland. The 36-tonne-truck, the Hyundai XCIENT Fuel Cell model, made 70,000 km, saving some 80t of CO2 emissions. With 7.5 kg/100 km, hydrogen consumption was lower than that specified by the truck maker.

EINRIDE SELLS – DOMESTICALLY AND ABROAD

•

& NICHOL DIGITAL TWIN CO-OP

The new solution is expected to start running in April 2022, saving around 4,000t of CO2 emissions in three years. Second, the Swedish freight tech company will supply Maersk’s operations in the US with 300 electric trucks, 150 charging stations, connectivity services, and an operating system. The Class-8 vehicles of BYD’s 8TT model will be supplied in 2025-2035, with the initial delivery assembled in California. Maersk will use the fleet to electrify its warehousing, distribution, and transportation in selected US cities. The e-trucks will help Maersk bring its emissions to net-zero across the company’s business and value chain by 2040.

•

VENTURE FORTH 18 | Baltic Transport Journal | 2/2022ESBJERG-MOFFATT

The average daily range was 430 km, allowing the 350 kW electric motor truck to operate day-round on a single fuelling (32 kg of tank capacity, refilled in about 12 minutes). Gebrüder Weiss’ hydrogen truck had to pay only one workshop visit for a technical inspection. The company plans to deploy other hydrogen trucks in Austria and southern Germany.

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GEBRÜDER WEISS’ HYDROGEN TRUCK – ONE YEAR OF EMISSION-FREE OPERATIONS

GEODIS-RENAULT URBAN LOGISTICS E-TRUCK CO-OP

TES FAST-TRACKS ITS WILHELMSHAVEN GREEN GAS TERMINAL

CATCHING MICROPLASTICS WITH SCRUBBERS

• Wärtsilä and the Grimaldi Group are trialling an open-loop exhaust gas treatment system that traps microplastic particles before the wash water returns to the sea. According to early test results, the filtration system, designed and patented by Grimaldi, efficiently captures particles smaller than 10µm, and the captured concentration by volume equals around 76 particles/m 3 . A 10 MW engine will require scrubbers to process approximately 450 m 3 of water per hour. Wärtsilä’s will add the microplastics filtration capability to its future wash water treatment system. All revenues from the patent licensing will go to charity.

•

• Thanks to the partnership, NAPA Voyage Optimization software will come as an option in all future sales of Norsepower’s Rotor Sails solution, applicable to newbuilds and retrofits. The software determines the best possible voyage plan for a vessel to maximise the energy savings, taking into account weather conditions throughout the sailing, likewise each ship’s design profile and operational requirements.

• The two have partnered to develop Oxygen, a 16-tonne electric city truck with a total cost of ownership (TCO) comparable to that of a diesel vehicle – but without the fossil fuel externalities. With Oxygen, GEODIS and Renault Trucks want to eliminate urban road freight-related nuisances, such as pollution and noise, and increase the safety of both the drivers and city folk. The prototype’s delivery is scheduled for 2022- end. The e-truck will be trialled in Paris starting in 2023.

VENTURE FORTH 2/2022 | Baltic Transport Journal | 19

The real-world testing will be followed by a phase of adaptation of the vehicle incorporating feedback from drivers covering comfort of use, practicality, recharging, etc. Then, a study will see how to optimise the TCO. GEODIS intends to reduce its CO2 emissions by 30% by 2030. To that end, the company will have provided carbon-free deliveries to 37 French cities by 2023.

• Photo: TES Photo: Renault Trucks

•

• The 2018-built GT 74,273 Delphine will receive two 35 m tall and 5.0 m in diameter tiltable sails, said to reduce the ship’s fuel consumption & carbon emissions by 7-10%. The installation will have been completed by December 2022. The deal with CLdN is Norsepower’s seventh Rotor Sails contract and the third for the tilting version of the Finnish company’s auxiliary wind propulsion system.

The full-scale Wilhelmshaven Green Gas Terminal will comprise six tanks and six berths; its capacity will rise to 250 TWh/5.0mt of hydrogen by 2045. TES intends to produce green hydrogen in countries with a renewable power mix and combine it with CO2 to create an energy carrier transported to Wilhelmshaven by a purpose-built fleet. The ‘load’ will be converted back to hydrogen in the German port, with the CO2 captured for reuse in a closed-loop production-transportation system.

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• Tree Energy Solutions (TES), founded by the Belgian investment company AtlasInvest, will accelerate the set-up of the facility that, once fully commissioned, could cover 10% of Germany’s energy demand. The 25 TWh of yearly capacity Phase 1 is to be ready by winter 2025, making it possible to import & produce 0.5mt of hydrogen in the German seaport.

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NORSEPOWER TO INSTALL ITS ROTOR SAILS ON CLDN’S RO-RO

NORSEPOWER-NAPA CO-OP

Impact:prices.An additional 70 TWh of power generation from existing dispatchable low emissions sources, reducing gas use for electricity by 13 bcm.

Impact: Brings down energy bills for consumers even when natural gas prices remain high, making available up to EUR 200 billion to cushion impacts on vulnerable groups.

Impact: Enhances the resilience of the gas system, although higher injection requirements to refill storage in 2022 will add to gas demand and prop up gas prices.

Measures implemented this year could bring down gas imports from Russia by over one-third, with additional temporary options to deepen these cuts to well over half while still lowering emissions.

A 10-Point Plan to Reduce the European Union’s Reliance on Russian Natural Gas Measures implemented this year could bring down gas imports from Russia by over one-third, with additional temporary options to deepen these cuts to well over half while still lowering emissions.

Impact: Taking advantage of expiring long-term contracts with Russia will reduce the contractual minimum takeor-pay levels for Russian imports and enable greater diversity of supply.

Action 1 Action 3 Action 5 Action 7 Action 2 Action 4 Action 6 Action 8 No new gas supply contracts with IntroduceRussiaminimum gas storage obligations to enhance market Maximiseresilience generation from existing dispatchable low-emissions sources: bioenergy and nuclear Speed up the replacement of gas Replace Russian supplies with gas from alternative sources

Impact: Brings down energy bills for consumers even when natural gas prices remain high, making available up to EUR 200 billion to cushion impacts on vulnerable groups.

Impact: An additional 35 TWh of generation from new renewable projects over the next year, over and above the already anticipated growth from these sources, bringing down gas use by 6 bcm.

Maximiseresilience generation from existing dispatchable low-emissions sources: bioenergy and nuclear Replace Russian supplies with gas from alternative sources

Impact: Taking advantage of expiring long-term contracts with Russia will reduce the contractual minimum takeor-pay levels for Russian imports and enable greater diversity of supply.

CHART OF THE ISSUE 20 | Baltic Transport Journal | 2/2022

Impact: Around 30 bcm in additional gas supply from non-Russian sources.

Impact: An additional 35 TWh of generation from new renewable projects over the next year, over and above the already anticipated growth from these sources, bringing down gas use by 6 bcm.

IntroduceRussiaminimum gas storage obligations to enhance market

Enact short-term measures to

Impact: Around 30 bcm in additional gas supply from non-Russian sources.

Accelerate the deployment of new wind and solar projects Enact short-term measures to shelter vulnerable electricity consumers from high prices

Accelerate the deployment of new wind and solar projects Enact short-term measures to shelter vulnerable electricity consumers from high prices Accelerate energy efficiency

Action 1 Action 3 Action 5 Action 2 Action 4 Action 6 No new gas supply contracts with

Impact: Enhances the resilience of the gas system, although higher injection requirements to refill storage in 2022 will add to gas demand and prop up gas

IntroduceRussiaminimum gas storage obligations to enhance market

Impact: Enhances the resilience of the gas system, although higher injection requirements to refill storage in 2022 will add to gas demand and prop up gas

Impact: Taking advantage of expiring long-term contracts with Russia will reduce the contractual minimum takeor-pay levels for Russian imports and enable greater diversity of supply.

generation from existing Replace Russian supplies with gas from alternative sources Accelerate the deployment of new wind and solar projects

Maximiseresilience

A 10-Point Plan to Reduce the European Union’s Reliance on Russian Natural Gas

Action 1 Action 3 Action 5 Action 2 Action 4 Action 6 No new gas supply contracts with

Accelerate the deployment of new wind and solar projects Enact short-term measures to shelter vulnerable electricity consumers from high prices Accelerate energy efficiency

Impact:prices.An additional 70 TWh of power

Impact: Brings down energy bills for

Impact: Taking advantage of expiring long-term contracts with Russia will reduce the contractual minimum takeor-pay levels for Russian imports and enable greater diversity of supply.

Impact: Enhances the resilience of the gas system, although higher injection requirements to refill storage in 2022 will add to gas demand and prop up gas Impact:prices.An additional 70 TWh of power generation from existing dispatchable low emissions sources, reducing gas use for electricity by 13 bcm.

Impact: Around 30 bcm in additional gas supply from non-Russian sources.

Impact: An additional 35 TWh of generation from new renewable projects over the next year, over and above the already anticipated growth from these sources, bringing down gas use by 6 bcm.

Introduce minimum gas storage obligations to enhance market

Accelerate energy efficiency improvements in buildings and

CHART OF THE ISSUE 2/2022 | Baltic Transport Journal | 21 Action 3 Action 5 Action 7 Action 9

Impact: An additional 35 TWh of generation from new renewable projects over the next year, over and above the already anticipated growth from these sources, bringing down gas use by 6 bcm.

Encourage a temporary thermostat adjustment by consumers

generation from existing dispatchable low-emissions sources: bioenergy and nuclear Speed up the replacement of gas boilers with heat pumps

Impact:prices.An additional 70 TWh of power generation from existing dispatchable low emissions sources, reducing gas use for electricity by 13 bcm.

Impact: Reduces gas consumption for heat by close to an additional 2 bcm within a year, lowering energy bills, enhancing comfort and boosting industrial competitiveness.

Action 5 Action 7 Action 9 Action 6 Action 8 Action 10

additional 70 TWh of power generation from existing dispatchable low emissions sources, reducing gas use for electricity by 13 bcm.

Stepindustryupefforts to diversify and decarbonise sources of power system flexibility

Accelerate energy efficiency improvements in buildings and

Impact: Reduces gas use for heating by an additional 2 bcm in one year. Impact: Turning down the thermostat for buildings’ heating by 1°C would reduce gas demand by some 10 bcm a year.

Accelerate energy efficiency improvements in buildings and

Impact: Turning down the thermostat for buildings’ heating by 1°C would reduce gas demand by some 10 bcm a year.

Impact: A major near-term push on innovation can, over time, loosen the strong links between natural gas supply and Europe’s electricity security. Real-time electricity price signals can unlock more flexible demand, in turn reducing expensive and gas-intensive peak supply needs.

Impact: Brings down energy bills for consumers even when natural gas prices remain high, making available up to EUR 200 billion to cushion impacts on vulnerable groups.

Encourage a temporary thermostat adjustment by consumers

Action 4 Action 6 Action 8 Action 10

Impact: Enhances the resilience of the gas system, although higher injection requirements to refill storage in 2022 will add to gas demand and prop up

Impact:prices.An

Maximiseresilience

Impact: Enhances the resilience of the gas system, although higher injection requirements to refill storage in 2022 will add to gas demand and prop up gas

Impact: Brings down energy bills for consumers even when natural gas prices remain high, making available up to EUR 200 billion to cushion impacts on vulnerable groups.

Accelerate the deployment of new wind and solar projects Enact short-term measures to shelter vulnerable electricity consumers from high prices

Impact:prices.An

Action 5 Action 7 Action 9 Action 6 Action 8 Action 10

Introduce minimum gas storage obligations to enhance market

additional 70 TWh of power generation from existing dispatchable low emissions sources, reducing gas use for electricity by 13 bcm.

Impact: Brings down energy bills for consumers even when natural gas prices remain high, making available up to EUR 200 billion to cushion impacts on vulnerable groups.

Introduce minimum gas storage obligations to enhance market Maximiseresilience generation from existing dispatchable low-emissions sources: bioenergy and nuclear Speed up the replacement of gas boilers with heat pumps Encourage a temporary thermostat adjustment by consumers

Impact: Reduces gas use for heating by an additional 2 bcm in one year. Impact: Turning down the thermostat for buildings’ heating by 1°C would reduce gas demand by some 10 bcm a year.

Accelerate the deployment of new wind and solar projects Enact short-term measures to shelter vulnerable electricity consumers from high prices

Stepindustryupefforts to diversify and decarbonise sources of power system flexibility

Impact: Enhances the resilience of the gas system, although higher injection requirements to refill storage in 2022 will add to gas demand and prop up gas

Impact: Reduces gas consumption for heat by close to an additional 2 bcm within a year, lowering energy bills, enhancing comfort and boosting industrial competitiveness. Impact: A major near-term push on innovation can, over time, loosen the strong links between natural gas supply and Europe’s electricity security. Real-time electricity price signals can unlock more flexible demand, in turn reducing expensive and gas-intensive peak supply needs.

Impact: Reduces gas use for heating by an additional 2 bcm in one year.

Accelerate the deployment of new wind and solar projects Enact short-term measures to shelter vulnerable electricity consumers from high prices

Maximiseresilience generation from existing dispatchable low-emissions sources: bioenergy and nuclear Speed up the replacement of gas boilers with heat pumps

Stepindustryupefforts to diversify and decarbonise sources of power system flexibility

Impact: An additional 35 TWh of generation from new renewable projects over the next year, over and above the already anticipated growth from these sources, bringing down gas use by 6 bcm.

Impact: Reduces gas consumption for heat by close to an additional 2 bcm within a year, lowering energy bills, enhancing comfort and boosting industrial competitiveness.

Source: International Energy Agency

Efficient & Reliable Transport Solutions between Germany, Poland, Lithuania and Sweden www.ttline.com/en/freight Świnoujście Rostock Trelleborg Klaipėda Travemünde

In all likelihood, the barbaric attack against Ukraine launched by the Kremlin on 24 February 2022, with Minsk’s willing complicity, will be remembered in schoolbooks as a defining moment for the entire world. The point of no return, if you will. As the Ukrainians and Ukrainian Foreign Legion are successfully fending off the aggressors, albeit at a devastating cost due to war crimes committed by the Russian army and their henchman, everyday and industrial activities are taking a hit, too, including the world of transport & logistics. Here is our round-up of the industry-related actions and events triggered by the aggression.

The impact of the Russian aggression on Ukraine on transportation Shipping

ECONOMY 2/2022 | Baltic Transport Journal | 23

The Norwegian-Swedish ro-ro and car carrier Wallenius Wilhelmsen was one of the first to react. On the day of the aggres sion, the company suspended all opera tions in Russia and Belarus. The shipping line halted bookings and rerouted Russiabound cargo to other ports. Other carriers also stopped taking in bookings for Russia and Belarus while sus pending calls to Ukrainian seaports. These include CMA CGM, Evergreen, Hapag-Lloyd, Maersk, MSC, and ZIM on the container side (though there was no announcement of CMA CGM dropping its co-op with the Russian FESCO; e.g., the East Russia Express, incl. calling the port in Vladivostok, is still included in the company’s Line Schedule); the vehicle carrier Höegh Autoliners; and the ro-ro & ferry line Finnlines. Pre-war booked shipments continued, with the exclusion of sanctioned items. Forwarding goods that aren’t on the sanction list, such as pharma ceuticals, is still allowed. That said, it might become difficult to ship them given the lack of haulage services, let alone to buy medical equipment and drugs, since the purchasing power of the rouble has nosedived. On that note, the Russian Ministry of Health said (week 21-27 of March 2022) that the country is stockpiled for three to 12 months and is looking for alternative supply sources, mean ing India and China. Accordingly, the Indian and Chinese sellers are ramping up prices to capitalise on Russia’s no-other-option-insightContainer-wise,situation.

COSCO Shipping Lines (CSL), the world’s fourth in terms of TEU capacity, is throwing Russians a life belt, not having suspended calls to the country’s seaports (and COSCO Shipping Tanker continues to transport Russian crude oil). However, CSL ceased taking bookings for Ukraine at the end of February, redirect ing its ships to other harbours (more about Ukrainian ports later). Box carriers also waived several fees, like detention and demurrage, and offered to take Ukrainebound shipments to other seaports, such as Constanța and Piraeus. “The leading sea carriers state that stor age areas in hubs are already very full, while the war in Ukraine is creating additional problems apart from the existing disrup tions in the global supply chain. Please note that a company acting as consignor or consignee, or being a holder of the Bill of Lading, or acting on behalf of such persons in accordance with the line carrier’s Terms & Conditions has the status of Merchant, i.e. bears all risks concerning cargo trans portation to the sea carrier,” notes the Ukrainian, Odesa-based Interlegal law firm, specialising in transport, shipping, and international trade. Shipping lines are also helping to channel humanitarian aid towards Ukraine. Several Baltic ferry lines – including Finnlines, Polferries, Scandlines, Stena Line, and Unity Line – have started offering complimentary services, transporting the Ukrainians flee ing the country or those going back to fight against the Kremlin’s aggression. Along with other transport firms, they are also organis ing various forms of help – crowdfunding to support NGOs and gathering supplies for the hundreds of thousands of refugees and those internally displaced. This grassroots movement has amassed millions of euros and truckloads of humani tarian supplies in just days. For example, the CMA CGM Group put in motion its airfreight division, at no cost, flying 55t of electrical equipment, emergency shel ters, IT and telecoms devices, and food from Paris to Warsaw. The Danish DFDS has given DKK1.0m to the country’s Red Cross to support emergency efforts in Ukraine, following up with an internal fundraiser that sees the company match each crown donated with two. Many other companies, big and small, are doing what they can to assist. The help goes on, and donations to charities wouldn’t be possi ble without mobilising logistics capabili ties (importantly also warehouses, e.g., the French multinational GEODIS). It is also worth mentioning that customs clearance companies voluntarily provide aid with the necessary paperwork (crucial if we are talking about shipments from outside the EU, like UK donations). Some have even chosen to engage in specific, targeted assistance like the Polish Register of Shipping and Polferries.

The two have purchased, pre-charged, and sent to Ukraine power banks, as having a working mobile can save lives. Phones are also instrumental in gathering intelli gence (in light of the full-fledged informa tion war) or footage of atrocities (because the International Criminal Court is already investigating war crimes).

War & logistics by Przemysław Myszka

For instance, the Finnish Nurminen Logistics and Kazakhstan Temir Zholy (KTZ; the coun try’s national railroad haulier) partnered in mid-March 2022 to trial rail shipments along the Middle Corridor. The two plan to run trials in April-June 2022, sending China-Europe train sets via Kazakhstan, Azerbaijan, and Georgia. If successful, the companies intend to establish a commercial offering till September Fig. 1. The EU and UK’s crude oil imports (2020)

Source for figs. 1-2: Transport & Environment Fig. 2. Russia supplies one-quarter of the EU’s crude oil imports

Alongside the aforementioned sanctions, reversing three decades of investment has had a significant impact on Russia’s economy,” reads Investopedia’s Nearly 330 Companies Have Withdrawn From Russia. Their decisions affected existing assets, physical and digital, and future investments, especially those oil & gas-related, as Russia lacks the know-how and technology for manufacturing equipment needed for deep extraction/mining. It is worth reading such lists the other way around by ‘finding’ companies that have decided to stay and bank on filling the vacuum. One can also be sceptical about alternatives, particularly the New Silk Road (NSR). In 2021, China-Europe container rail traffic summed up to 1.46m TEUs, already encountering prob lems with capacity and delays. Next, the NSR wasn’t meant to facilitate China’s trade with Russia, by far less significant than that with the EU ($84.2b vs $573b in 2018). The sanc tions imposed by Western economies also target Russian and Belarusian railways and their affiliates. While European buyers mainly contract their Chinese partners, who then arrange the logistics, including the procure ment of the rail leg to the EU border, NSR traf fic has decreased in the wake of the Russian aggression (leading to faster transit times, as bottlenecks clear, for those still taking the Eurasian Land Bridge). Companies are wary of having to do anything, in- or directly, with those whose assets and infrastructure have been used to prepare and propel the aggres sion. Some simply deem it morally wrong to continue using rail services the Russians and their accomplices from Belarus offer. At the same time, there are rail alterna tives for European companies along the NSR, though significantly limited. Nevertheless, there are parties already exploring the options.

Ports Operations at Ukrainian seaports have come to a standstill. The 21mt/year capacity Mariupol – among others, home to Illich Steel and Iron Works, Ukraine’s second-biggest – has been under constant, indiscriminate bombardment by the Russians. Odesa, the country’s prime commercial seaport (40mt/year of capacity), ceased operations, with the city’s defence pre paring to ward off the enemy landing. The German HHLA, operator of Odesa’s container terminal (since 2001), has closed its facility and provided shelter for their employ ees (480 together with families – transport ing the refugees to Hamburg via Romania).

ECONOMY 24 | Baltic Transport Journal | 2/2022

HHLA’s personnel in Germany offered asylum and served as contacts and chaperones for bureaucratic procedures. The HHLA Executive Board had also decided to pay employees their monthly salaries in advance so that they could stockpile goods. Torben Seebold, the compa ny’s Labour Director, said, “We stand together as HHLA family to take a common stance of solidarity and humanity. During this time, our thoughts are particularly with the employees who remained in Odesa and who are looking after security at the terminal or who have been called to military duty.” Like DFDS, HHLA has opened its pockets: €1.0m in donations to pro vide humanitarian and medical assistance, plus its employees a further €60k (as of 24 March 2022). Additionally, HHLA’s Hamburg termi nals stopped handling containers coming from or destined for Russia as of 1 March 2022 (in 2020, these totted up to 229k TEUs). Combined with the booking ban imposed by container lines, one can speculate how the sanctions brought forward by the EU, US, and others will impact Russian container traffic –in the Baltic in our case. Last year, the coun try’s ports in the region took care of 2.51m TEUs: St. Petersburg – 2.04m, Kaliningrad –437k, and Ust-Luga – 29k. Early reports spoke of the container carriers that imposed the bans as being responsible for over 50% of the traffic. Russian Baltic seaports feed the country’s two largest consumer centres, the Leningrad and Moscow Oblasts. They also handle the supply & demand of the Kaluga Oblast, one of Russia’s most economically advanced ter ritories, where many international corpora tions have decided to settle (Berlin-Chemie/ Menarini, Citroën, Continental, GE, Mitsubishi, Novo Nordisk, Peugeot, Samsung, Volkswagen, and Volvo to name a few). These multinationals are either exiting the Russian market altogether or discontinuing production. Their decision will trickle down the supply chain, affecting the local workforce and subcontractors. Many other companies are also putting up the shutters (among them, major cargo owners like IKEA). A list prepared by the Yale Chief Executive Leadership Institute (10 March 2022) speci fies 325 entities, including the world’s Top 10 by revenue. “By Feb 28, only several dozen companies had announced their departure from the country. However, as public pres sure continues to mount, that number has since skyrocketed as many companies feared the effect continuing to do business with Russia would have on their corporate image.

On the whole, one can just wonder what the Chinese are thinking about the Kremlin jeopardising the NSR. After all, local authori ties have greatly invested in linking their cities and regions with Europe. Farther Asia-Europe connectivity has already been compromised. The war has resulted in withholding Vietnam’s link with Belgium (the Vietnamese Ratraco was about to launch a second service to Liège – from Da Nang on behalf of IKEA). Maersk’s ban includes rail services; the company’s AE19 routed cargoes from several Chinese, Japanese, and South Korean ports via Vostochny for rail forwarding to St. Petersburg. The con nection in question has been set up in co-op with Global Ports; Maersk’s landside arm, APM Terminals, has decided to divest its stake (30.75%) in the Russian terminal operating company (which runs several sea and inland facilities in the Baltic). Although important, the container busi ness in Russia is almost nothing compared to the country’s oil & gas industry. Exports of liquid hydrocarbons tot up to one-third of the Russian budget. Banning the purchase of Russian oil & gas (and coal, too) would seri ously add insult to injury. In the Baltic alone, bulk goods accounted for 81% of the country’s port turnover last year (135mt of liquid and 75mt of dry bulk, respectively). Depending on an economy’s exposure to Russia’s hydrocarbons and its capacity to change the supplier, some find it easier and others more challenging to opt for the cut-off. For instance, the Finnish Neste has severed its crude oil imports virtually overnight. Orlen Lietuva, the Lithuanian subsidiary of the Polish oil & gas Orlen that runs a refinery in Mažeikiai, has said it too would stop importing Russian crude oil. Poland can replace pipeline gas, get ting its demand through the under-upgrade LNG terminal in Świnoujście, the Baltic Pipe (gas from Norway via Denmark), and domes tic production. Polish seaports also have the wiggle room to take in more liquids. Lithuania has come to a decision to buy the floating stor age and regasification unit Independence until recently chartered (and later, all three Baltic States proclaimed a cut-off from Russian gas, encouraging others to follow in their footsteps). On the other hand, it will be more diffi cult for Germany to disconnect. For exam ple, Rosneft is responsible for about 12% of the German crude oil refining market. At the same time, Gazprom owns the LNG storages, with record low utilisation ahead of the aggression, probably meant to be used as a political bogey. However, the gov ernment in Berlin has decided to scrap Germany’s existing policy towards Russia. The pivot will see the erection of two LNG terminals on the North Sea coast: in Brunsbüttel and Wilhelmshaven. Interestingly, the Germans want to feed two birds with one scone by designing the new facilities so they can also handle green hydrogen and its derivatives, such as ammonia. Markus Krebber, RWE’s CEO, said in this regard, “It is now more important than ever to think of climate protection and security of supply as one.” Alongside the Dutch Gasunie and Germany’s state-owned investment and devel opment bank KfW, his company will work on the 8.0b m3/year LNG terminal in Brunsbüttel and the adjacent hydrogen-ammonia facility (initially 300kt/year of ammonia imports as of 2026, up to 2.0mt/year after expansion).

2/2022 | Baltic Transport Journal | 25 2022. In addition, Nurminen Logistics and KTZ will cooperate on the former’s ChinaFinland services. Specifically, they want to use Kazakhstan-registered & owned wagons to avoid falling under sanctions imposed on Russian rail companies. That said, the Middle Corridor is con strained by having to transship the cargo onto vessels crossing the Caspian and Black seas, not to mention the recent reports that sea mines are drifting in the latter and heading towards the EU’s shores. However, going over the Black Sea can be avoided, too (especially as the Russian naval forces fired at merchant ships, hitting Banglar Samriddhi near the Ukrainian Port of Mykolaiv on 2 March 2022, killing one crew member and forcing others to abandon the vessel; earlier, the Estonian freighter Helt was used by the Russians as a floating human shield near Odesa, with the vessel sinking after a mine explosion). The Dutch Nunner and the Chinese Tiedada have set up a Middle Corridor connection that goes via Georgia to Istanbul for transhipment onto a vessel going to the Port of Trieste, from which it is distributed to Duisburg. Speaking of the German dry port, duisport has taken the deci sion to get rid of its interests in Belarus: 0.59% stake in a development company behind the Great Stone Industrial Park (a major Chinese investment in the country) and 38.9% in Eurasian Rail Gateway (a bimodal terminal).

Photos: Canva

In early March 2022, Tree Energy Solutions (TES), founded by the Belgian invest ment company AtlasInvest, announced it would accelerate the set-up of its facility in Wilhelmshaven. Once fully commissioned, it could cover 10% of Germany’s energy demand. The 25 TWh of yearly capacity Phase 1 is to be ready by winter 2025, making it possible to import & produce 0.5mt of hydrogen. The fullscale Wilhelmshaven Green Gas Terminal will comprise six tanks and six berths. Its capacity will rise to 250 TWh/5.0mt of hydrogen by 2045. TES intends to produce green hydrogen in countries with a renewable power mix and

The suite of sanctions imposed on Russia and Belarus by Ukraine’s allies has hit other branches of the transport & logistics business. The Russian Maritime Register of Shipping (RMRS), among others, has been proscribed. The country’s class has also been ejected from combine it with CO2 to create an energy carrier transported to Wilhelmshaven by a purposebuilt fleet. The ‘load’ will be converted back to hydrogen in the German port, with the CO2 captured for reuse in a closed-loop productiontransportation system.

In the meantime, apparently not wanting to wait for the outcome of cabinets’ calculations on the closure of EU ports for Russian vessels, several grassroots/activist movements have decided to step in. For instance, The Guardian has reported on dockworkers at the Ellesmere Port refinery in Cheshire refusing to unload Russian oil, joining their union fellows from Kent, whose actions diverted a Russian gas tanker. “The government must act immedi ately to […] stop Russian goods continuing to arrive in the UK under the cover of another country,” urged Matt Lay, National Officer for Energy at the Unison labour union. Such means are undertaken to counter the imperfection of a law, which would allow for the uninterrupted handling of Russian oil & gas. Niek Stam, FNV Havens’ Spokesperson (the largest Dutch dock workers’ union), said after port workers in Rotterdam refused to handle Russian hydro carbons, “There is blood on this oil, blood on this coal and blood on the gas.” Labour unions are preparing to tackle legal claims from oil companies and shippers following the boycott. The law is in the making, but the UK has even taken action to allow detaining Russian ships. Canada has banned such vessels from entering its waters. Unionists from the US West Coast dockers union ILWU have said their members won’t handle Russian tonnage. Similarly, the Swedish Dockworkers Union has given prior notice to the employers’ organisa tion Ports of Sweden that industrial action will be taken against vessels going to and from Russia, likewise Russian cargo in Swedish har bours. Iceland has revoked the derogation for Russian vessels catching redfish, prohibiting the entry of these ships into Icelandic ports. At the same time, Greenpeace activists have blocked Rosneft’s refinery in Schwedt, con fronted oil tankers from Russia in the Baltic Sea, and launched a Twitter service that tracks Russian tankers. Greenpeace Nordic’s Executive Director, Mads Flarup Christensen, com mented, “While people suffer in Ukraine and people in Russia take to the streets pleading for peace, Putin’s oil and gas is still arriving at European ports, contributing to his war chest. Supertankers crossing our seas with Russian oil and gas are still delivering fossils to Europe. If we want to stand for peace, we must stop this and urgently get off oil and gas.” He furthered, “This war is, as so many wars before it, funded and fuelled by fossil fuels. To end this, we must end the dependency on oil, gas and coal. We have the solutions, all we need is the political will to rapidly switch to peaceful sustainable renewable energy. This will not only create jobs, lower energy bills, and tackle the climate crisis, it will also cut our dependence on imported fossil fuels, fuelling conflicts in the world.”

The European Commission (COM) has unveiled its proposals to cut the block’s reliance on Russian gas by two-thirds – as quickly as by 2022-end – towards complete independence. The REPowerEU plan assumes boosting energy production from renewables (extra 80 GW to the 900 GW of wind and solar by 2030) and quad rupling the current 2030 targets for green hydrogen supplies (15mt atop the 5.6mt).

Various clean energy associations have wel comed the COM’s proposal. In the words of Frans Timmermans, the COM’s EVP for the European Green Deal and European Commissioner for Climate Action, “It’s hard, bloody hard. But it’s possible.” Russia’s aggression also threatens the agricultural industry, particularly the grain and vegetable oil markets. In the record mar keting year of 2021-2022, Ukraine has pro duced 107mt of grains, legumes, and plant oils (the country is the world’s biggest pro ducer of sunflower oil and a major exporter of canola oil). Out of the 84mt of grains and legumes, some 60mt were exported – 95% through seaports. The country’s rail system doesn’t have the means to compensate for the closure of Ukrainian harbours. Next, while the winter sowing went accord ing to the plan (including a 40% year-on-year increase in canola acreage), 52%, 43%, and 32% of wheat, barley, and canola crops are at risk of wastage. Spring sowing is also at risk – because of direct military action and the lack of fertilisers and fuel. Experts from Green Square Agro Consulting say that the sowing acreage can be lower by 48% for barley, 44% for sunflower, 36% for corn, and 24% for soy in the worst-case scenario. As such, wheat harvest can go down from the expected prewar of 27.3mt to 18.6-9.6mt (the lower range would be the lowest in 20 years; Ukraine’s internal demand for wheat accounts for some 7.0mt). Barley harvest can drop as low as 1.4mt (domestic demand: 3.8mt). Axed crops and no exports would seri ously impact Ukraine’s budget. The country’s agricultural goods were mostly shipped to the Middle East and Africa. Russian aggres sion may result in starvation in the afflicted countries (the EU and US have announced they will help nations if they face problems with food supplies). For example, Benin and Somalia are 100%-dependent on Russian and Ukrainian grains, and insider knowledge speaks of probability bordering on certainty that civil war will break out if supplies won’t be delivered before autumn. Meanwhile, Russia, the world’s largest exporter of wheat, is hoarding its crops, further adding insta bility and enhancing wheat prices. More precisely, the Russian regions are holding on to their stocks (e.g., no domestic sugar exports from Stavropol Krai), seemingly putting the interest of their people ahead of the Kremlin’s. On top of that, the National News Agency of Ukraine has cited the authorities of the Zaporizhzhia Oblast that Russians have stolen five dry bulk carriers loaded with tens of thousands of tonnes of Ukrainian grain from the Port of Berdyansk.

According to another NGO, Transport & Environment (T&E), Europe still spends up to $285m/day on Russian oil. On 3 March 2022, the International Energy Agency (IEA) pub lished A 10-Point Plan to Reduce the European Union’s Reliance on Russian Natural Gas. The Agency wrote, “The 10-Point Plan is consist ent with the EU’s climate ambitions and the European Green Deal and also points towards the outcomes achieved in the IEA Net Zero Emissions by 2050 Roadmap, in which the EU totally eliminates the need for Russian gas imports before 2030.” William Todts, T&E’s Executive Director, tallied by saying, “[…] we should not simply swap Russian oil for Saudi oil.

It’s time to greatly improve transport efficiency and turbocharge the electrification of transport to drive down our oil consumption. […] The EU must rewrite its energy security strategy to include oil. […] Any energy security strategy that ignores oil isn’t worth the paper it is written on.”

the International Association of Classification Societies. The American Bureau of Shipping (ABS), DNV, and Lloyd’s Register have cut their ties with Russia, ceasing to provide ser vices to Russian-owned, -controlled, and -managed assets. The European Council has restricted the export of maritime navigation goods and radio communication technology to Russia and subjected RMRS to financial restrictions. Without classification and cer tification, it will become infeasible to operate Russian tonnage.

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Lastly, line and point infrastructure is being destroyed. It is mainly done through Russian shelling, now in a cost-imposing strategy of massive destruction after the lightning onslaught-turned-fiasco. At the same time, Ukrainians are blowing up bridges and flyovers to inhibit the movement of the enemy forces. It will take billions and billions of dollars and euros to rebuild the country. Cynthia Cook, Director, DefenseIndustrial Initiatives Group and Senior Fellow, International Security Program at the Center for Strategic & International Studies, said in this regard, “It is difficult to talk about recovery while civilians are still under attack, while hospitals are being bombed, and where cities have lost power and water, but thinking about recovery means envisioning a post-conflict future, and that links to the twin messages of hope and the necessity to keep fighting.”

Ukraine’s recovery won’t be just ‘build back better’ – it will be of strategic, geopolitical importance, not to mention an act of humani tarian aid not seen in Europe since the end of WWII (think of the millions of refugees and traumatised). “Ugly attacks continue almost without ceasing, and the pictures of the devas tation are heartbreaking. We can hope that it is darkest before dawn, that soon the violence will cease, and that Ukraine will continue to exist as an independent and democratic nation embarking on an inspiring and effec tive national recovery,” Cook summarised her thoughts on the country’s future. There are also voices pointing out that postwar Ukraine might to a large extent replace Russia as the EU’s economic partner, given the country’s vast and largely untapped resources. Trading with a free and democratic nation instead of brokering deals with a murderous regime should be a no-brainer.

Russia’s attack has also made it difficult for ships to change crews, with approximately 15% of the global 1.89m seafarers being of Russian (198k) and Ukrainian (76.4k) nationalities. Wilfred Lemmens, Managing Director of the Royal Belgian Shipowners’ Association (RBSA), commented, “It will be a major challenge to find sufficient seafarers worldwide if the war continues. That could cause a huge disruption to the entire global maritime transport.” RBSA also quoted Oleg Grygoriuk, President of the Ukrainian trade union for maritime transport work ers, that 55-60% of Ukrainian seafarers are currently at sea, wanting to go back to take care of their closest ones and take up arms. “Meanwhile, the growing isolation of Russia makes it increasingly difficult – if not impos sible – to pay the wages of the Russian sea farers, due to the severe restrictions to the country’s access to Swift, the main interna tional payment system. At the same time, it is becoming harder to get them to where they are needed, due to the closure of many air connections to and from Russia,” RBSA also highlighted. Reports speak of at least 140 vessels located in Ukrainian waters, with an estimated 1,000 seafarers aboard. Some were successfully evacuated, like the Filipino crew of the oil tanker MTM Rio Grande (left stranded off the Ukrainian Nika-Tera Port).

While numerous organisations worldwide have already severed their ties with Russia, storm clouds have begun thickening over the head of Young Tae Kim, Secretary-General of the International Transport Forum (ITF), an agenda of the Organisation for Economic Co-operation and Development (OECD). The Ukrainians have asked ITF to suspend Russia’s membership. ITF’s Secretary-General has played ostrich in response, saying that rules do not allow for such action. The situ ation has been left hanging (since Februaryend 2022) until an extraordinary meeting of ITF’s Transport Management Board on 4 May 2022, with the agenda including items such as possible crisis response measures to the Russian invasion of Ukraine and the legal and practical mechanisms to implement those. This inaction has prompted criticism of the Secretary-General, faulting him for the lack of leadership, strategy, and political sensitiv ity, not to mention putting ITF’s good name at risk. It has also led certain members, among others Latvia, to threaten to walk out on the OECD’s agenda altogether and set up an alter native. ITF’s stance is puzzling; OECD itself was quick to react by condemning the Russian aggression and ruling out any involvement with Russia. The ITF faces now serious repu tational damage and possible organisational turmoil. All of this is deeply unfortunate as the organisation has put much insightful effort into surfacing, e.g., the negative consequences of market consolidation across the container shippingSanctionsbusiness.also target the country’s ship building and repair industries, meaning fin ishing the under construction and starting new projects may be impossible. Moreover, the Dutch Damen Shipyards has decided

2/2022 | Baltic Transport Journal | 27 not to deliver the Russian vessels they have in the pipeline – despite this action taking a significant toll on the company’s bottom line. Clarksons has reported that it concerns five tugboats for Rosatom (due for delivery this October) and several workboats and trawlers in the order book.

European LNG imports reached a record high of 9.53mt in January this year, according to ICIS LNG Edge data, with the following February volumes (8.14mt) the second-highest monthly ever. On the surface, there is plenty of capacity available to bring more LNG into Europe. European LNG terminal uti lisation (excluding Turkey) stands at 67% over the year to date. While this is well below maximum rates, it is strongly up from the last 12-month average of 49%.

More LNG has come to European ter minals, with lower Russian pipe gas in recent months and high European gas prices, especially from the US. Total operational European LNG import capac ity stands at just over 156mt/year, which equals 13mt/month – almost 3.5mt or 36% more than was delivered in January 2022. A 100% LNG terminal utilisation figure would have taken LNG’s share to 40% of the January-European gas supply mix if other supply remained unchanged.

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The great cut-off by Ed Cox, Head of Global LNG, Independent Commodity Intelligence Services (ICIS) European liquefied natural gas (LNG) imports reached a record high in January 2022 and could go a little higher if the Russian pipeline gas supply falls – or even stops completely. But Europe’s best-connected LNG terminals are already running at high rates. Also, limits to cross-border pipeline gas capacity would restrict the wider benefit of higher imports into some countries, such as Spain. For LNG to take a much greater structural share of the European gas mix, additional import infrastructure is likely required, such as the renewed plans for German import terminals (in Brunsbüttel and Wilhelmshaven). that Russian LNG into Europe has come to play alongside Russia’s pipe gas. Even at maximum levels LNG’s share in the European gas supply mix has fluctuated widely in recent years – at times as low as 7%, but in January 2022, it reached a record high of 32%.

In other words, even at maximum levels, it would not come close to replac ing Russia’s pipe gas share. But 100% utili sation will never be achieved. Several key import terminals in Northwest Europe have already been running at maximum rates this year, including the Dutch Gate, French Montoir-de-Bretagne, Belgian Zeebrugge, and UK Dragon terminals. Those that could bring in more LNG are in many cases not well connected to the broader European gas market, which would limit the benefit of additional LNG imports. Five of the terminals with the Can LNG replace Russian gas in Europe?

E xpansion of existing LNG ter minals is another option. The Dutch Gate and Belgian Zeebrugge terminals will have expanded by 2024: up to 13.5b m 3/year and 15.4b m 3/year, respectively (the lat ter up to 17.2b m 3/year in 2026). The enlarged (8.3b m 3/year) Polish termi nal in Świnoujście will come online in 2023. But neither of these options gives an immediate solution to any major short age of gas – and more capacity does not necessarily lead to more supply. Much of the LNG into Europe is supplied on a flexible basis and will flow to other parts of the world unless European prices areOneattractive.wayaround this is to sign con tracts for firm LNG delivery to guarantee volumes. But this may come at a premium price and limit buyer flexibility – as and when European gas demand falls. All this is without considering the prominent role

ICIS – Independent Commodity Intelligence Services – connects data, markets and customers to create a comprehensive and trusted view of global commodities markets, enabling smarter business decisions that help optimise the world’s resources. Visit www.icis.com to learn more. Fig. 1. Key LNG suppliers to Europe in

volumes

lowest utilisation this year are in Spain, which has the largest LNG import capac ity in Europe. Spain can only export pipe line gas to France, with the maximum daily flow rate of 20m m 3 (typically about the daily maximum send-out from just one LNG terminal). So Spanish LNG does not have a major route into the higher gas demand centres of Northwestern Europe. Spain could, however, hold more LNG in tank, which could then be reloaded and taken to other terminals in Europe.

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Fig. 2. European LNG imports break record Fig.

Europe’s varied LNG utilisation Fig. 4. Source of European gas AlgieriaQatarRussiaUSNigeriaOther 17% 19% 24% 10%13% 7% 10,000,0008,000,0006,000,0004,000,0002,000,0000 05101520253035T2016onnes of LNG impor ted Europe’s LNG impor ts Share of LNG in Europe’s supply mix % share of LNG in European gas mix 2017 2018 2019 2020 2021 2022 Spain UK France Italy Netherlands Belgium Greece Portugal Poland Lithuania Croatia Malta Total LNG impact capacity Year-to-date % utilisation 10203040500 020408010012014060 Mtpa capacity Year-to-date %utilisation 2021Jan FebMar AprMay Jun Jul Aug SepOct NovDoc 2022Jan Russia Nor wayTAP LNG Send- out Domestic production Nor th Africa 10,00015,00020,00025,00030,00035,00040,00045,00050,0005,0000 Million cubic meters Source for all figs.: ICIS LNG Edge has, in effect, been offset by strong LNG exports from the country. This again emphasises the extent to which Russian energy is embedded in the European market.Qatar will expand its LNG production strongly in the 2020s. New projects are expected to boost US LNG production, too. Yet, global LNG production growth is limited in the next two to three years.

Embedded? Within the LNG import figures, Russia now holds a greater share after the start of the Yamal LNG export plant in 2017 (majority-owned by Russia’s Novatek, with France’s TotalEnergies and China’s CNPC and the Silk Road Fund also holding equity). Last year, Russian LNG was the third-largest supplier into Europe, behind the US and Qatar. Just over 18% of Europe’s LNG was supplied from Yamal in 2021. While Russian pipeline gas have fallen, this 2021 3.

The DHL white paper Delivering on Circularity takes an in-depth look at a transition from a linear to a circular economic model in the fashion and consumer electronics sectors in the context of reducing waste and greenhouse gas emissions (GHG-E). The report calls for innovative logistics and cooperation between manufacturers and consumers to drive the transition alongside the 5 Rs: reduce, repair, resell, refurbish, and recycle. The authors list specific steps and tools for redesigning global supply chains to accommodate circularity and its net-zero potential. which are often produced using fossil fuels. Land usage and water consumption are also devastating – the fashion industry requires 40 million hectares, mainly for cotton farm ing, and 150 trillion litres of water annually. Production processes in fashion also pollute water when chemicals leak into freshwater. Similarly, improperly disposed electronic prod ucts end up in landfills where chemicals and metals used for production contaminate water, air, and soil. This is in addition to the environ mental impacts during resource extraction, production, and transportation. Waste at the end of product lifetime is also a major challenge for both industries. Electronic waste is the fast est growing waste globally, with 80% not being recycled. Some 75% of fashion-product-waste ends up either in landfills or is incinerated, causing more emissions. These high levels of waste, as well as raw material extraction and production, have an adverse effect on workers involved in the manufacturing and waste processes. In con sumer electronics, for example, the needed raw materials are often extracted in danger ous conditions – in mines, where contact with toxic material and the threat of mine collapse are ever-present. Improperly discarded elec tronic waste also poses a risk to workers in the waste processing sector. The five commandments of circularity Recycling raw materials in fashion and con sumer electronics is especially key because most of their GHG-E are generated during the extrac tion and production of raw materials. For the fashion industry, the production phase is respon sible for 71% of carbon emissions while product use, e.g. garment washing, for 20%. In electron ics, the production phase of smartphones is responsible for 80% of emissions, and 15% of emissions are produced during use, e.g., charg ing. Considering that manufacturing is so dam aging in these sectors, extending the usage and inserting the product value back into production are vital to reducing environmental damage. The 5Rs will be key to achieving these goals. Reduce in circularity refers to the produc tions phase, particularly reduction in volumes. Overproduction is especially present in the fashion industry, keeping at 20% to 30%. Repair calls for fixing instead of disposing of damaged products to extend the lifecycle. Resell pertains to consumers selling their product they no longer want but is still usable.

Going around in circles?

The damage Since the fashion industry produces between 4% to 8% of GHG-E and consumer electronics about 2%, combined, they emit twice as much as the aviation industry (3%). “At current con sumption levels and under current approaches to managing the lifecycles of these products, emissions from these industries would grow by 60% until 2030 and account for around 20% of the UN GHG emissions target for 2030, which is set at half of today’s emissions,” states the report. Concerning natural resources, the current linear production and consumption models cause significant damage, particularly when it comes to exploiting non-renewable resources. In the production of consumer electronics, a large number of metals, including rare earths, are required. One of the main culprits in the fashion industry is synthetics, such as polyester, by Ewa Kochańska

The

and

The first one is circular consumer behav iour, where the customers return products to the manufacturer. This behaviour is critical because that is the only way the producer can reuse the product for parts or resell/ refurbish. Additionally, it sends a message to companies and brands that consumers do indeed want and expect the switch from a linear to a circular economic model. why’s do’s circular economy

Circular-ready

The consumer goods chain includes many stakeholders such as producers, con sumers, regulators, and shippers – and they all play a part in implementing circularity. Cooperation will be crucial for the transition to benefit all the groups, likewise the society and the environment. The report identifies three core enablers and ten building blocks that help achieve circularity and its goals.

T he current linear paradigm evolves around the produce-sell-use-waste scheme, where manufacturers focus on producing, brands and companies on selling, and the product is bought, used and disposed of by the con sumer, generating unnecessary waste and emissions. The circular economic model helps minimise resource consumption dur ing production, lengthen the product life cycle, and recycle products and materials. The circular model works as long as stake holders work towards a responsible and profit able utilisation of resources; the manufacturers and users strive to recycle products for future use as either materials or second-hand items, while the logistics sector provides necessary data and orchestrates the flow of goods. Therefore, to move from a linear supply chain to a closed-loop or circular model, vol umes of production and materials, along with the lifecycle of products, must be optimised, and new models for product use and end-oflife recycling must be developed. This type of change, which is much more cost-effective than any other decarbonisation approach, could eliminate up to 40% of emissions.

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In the fashion and electronics sector, reselling is still at lower rates than in other industries, such as automotive. Refurbish is about users returning products to the manufacturer, who then checks, enhances, refreshes, and sells them again. Refurbishing in electronics is nothing new but has become more common in recent years. Refurbishment in fashion is rare, except for some rental platforms for high priced luxury items. The last step, recy cle, comes only after the product is no longer viable. Such items still have value for the manu facturer, namely their parts and materials that can be used in another production cycle. In fashion, recycling is almost non-existent, with 95% of products being manufactured from virgin materials. Only recently, some retail ers started offering take-back programmes often in exchange for coupons or vouchers.

Sustainability has caught on in recent years, especially among the younger genera tions, but there’s a critical difference between social media trends and actual willingness to sacrifice. Certainly, at least at the beginning of the switch, the product price points will be higher. “Bridging the gap between attitudes and actual behaviours is the key […] and it depends on, among other things, [… offering attractive consumer incentives, […] providing a condu cive public-sector environment and regulatory guardrails, and [… offering smart logistics solu tions,” points out the report. Some industry leaders have already started product-collection incentives, such as vouchers and discounts on replacement products, and making the return of used items as simple as possible.

The third enabler is visibility and orches tration. As the supply chains become more complex, the report points out that “optimal production planning and inventory manage ment require adaptations to be ready for a cir cular world.” For example, production plan ning must consider the availability of recycled materials, while inventory management must consider post-sale item flows. That means that advanced technologies and tracking tools will play a significant role in transparency efforts. In the consumer electronics sector, technol ogy allowing for product traceability through out its entire lifecycle already exists. Further,

Fig. 1. Linear vs circular product lifecycle Water use Land use Waste 156.5 trillion liters 40.6 million hectars 146 million tons electronicsConsumer 6.5 0.6 54 ~40% of US population's annual water consumption More than the area of Germany and Switzerland ~50% of annualEuropeans’wasteEquivalent to 150 40 92Fashion economyCircular Value WasteMaterialsPartsProduct economyLinear ReduceRepairResell Refurbish Recycle End of life Lifetime Source for all figs.: DHL’s Delivering on Circularity Fig. 2. The environmental impact of fashion and consumer electronics

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The second enabler is the circular supply chain. The current supply chains must be redesigned, and new supply models need to be introduced. The challenges of economic cir cularity include accessing the end-of-life or unused products to redeposit them into the supply cycle and a thoughtful design of the supply chain. With the return programmes and incentives mentioned above, the process is starting already, but the returns need to be optimally merged with the existing supply chain. For instance, when it comes to sort ing returned items into the type that can be refurbished and the type that has to be recy cled – when and where that should be done is significant, e.g., in terms of cost-effectiveness and emissions. This is why the logistics sector is so vital to circularity, as it depends so much on the scrupulous arrangement of the supply loop throughout distinct elements.

tech-solutions that combine physical mark ing with a digital twin allow for improved inventory and stock management. Big data and innovative technologies are at the heart of complex logistics models and are needed in the production planning and inventory manage ment of the circular economy as well. The blocks to build with The ten building blocks included in the report encompass the product’s entire lifecy cle. The first one is design for circularity. Here, one of the key challenges is using many differ ent materials to produce one product and the resulting difficulty of disassembling such an item. Making more mono-material designs in both fashion and consumer electronics could certainly make circularity easier to implement. Next is the development of innovative (raw) materials. In electronics, e.g., research ers from the University of Sydney are working on replacing the rare metal indium – a compo nent of touch screens in consumer electronics – with a combination of silver and tungsten oxide, which are more widely available.

The third building block, on-demand and circular production, deals with the issues of waste generated during production and over production. In the manufacturing phase, waste should be reused as much as possible, e.g., wastewater can be used for industrial cooling or, as long as it is free of pollutants – to water the outside areas. Overproduction, however, is one of the most pressing issues that many indus tries, particularly fashion, must resolve. Around 20% of manufactured garments in the fashion industry are never used; reducing that number even just by half could free up eight million hectares of land and reduce the sector’s waste by ten million tonnes. Since optimisation is key to circularity, demand-driven manufacturing (e.g., producing a garment once a customer paid for it or producing uncoloured garments) and late-stage differentiation (e.g., only dyeing fabric once a specific order is placed) could be very useful. Here again, logistics service providers will play a vital role, providing demand fore casting and predictive inventory rebalancing.

The fourth building block is reusable and environmentally friendly packaging around the inner product and in external shipping packaging. Government programmes can play a significant role, such as in the UK, where the cabinet offered £200m for research on environmentally friendly packaging, e.g., from plants, wood chippings, and food waste. The next block is smart product return and recovery solutions which ensure that manu facturers can receive and reuse products and materials. This is followed by the sixth stepping block – new use concepts, such as pay-peruse models, and product rentals and leases. For these two blocks, again, logistics services come into the main focus since the need for innovative digital ecosystems that make secure returns and exchanges feasible for the largest consumer groups possible is necessary. The seventh block concerns reselling and refurbishing. The GHG-E savings from extended use of a product through reselling and refurbishment are enormous. But, resell ing and refurbishing also require smart logis tics since deciding early on where a returned product should go next is essential.

Fig. 3.

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The eighth stepping block is viable repair business models. The logistics of getting the product sent out for repairs and financial feasibility pose serious challenges. As it is today, repairs don’t seem to make finan cial sense for manufacturers and customers alike. However, the report points out that The role of the 5 Rs in the circular

product lifecycle 2E1 Source: Shift Project "Lean ICT" report; Green IT report; Backmarket; Apple … generating a total savings potential of 9 Percentage of global smartphone emissions savings 3 6 If 25% switch to refurbished phones which they use for 2 years … … and yet another 25% buy used phones which they use for 2 years instead of new ones 16824 inputandEnergymaterial Production Recycle Reduce Refurbish Resell Repair Distribution andUse reuse End of life Fig. 4. Global GHG savings from longer use times and new use models of smartphones (million tonnes CO2e)1 1 Compared to a scenario where consumers buy only new smartphones every two years 2E1 … generating a total savings potential of 9 Percentage of global smartphone emissions savings 3 6 If 25% switch to refurbished phones which they use for 2 years … … and yet another 25% buy used phones which they use for 2 years instead of new ones 16824

Talking logistics Consumer electronics and fashion sec tors were chosen as case studies for this report because all consumer goods are responsible for 25% of global GHG-E, second only to the mobility sector. With increasing calls for imme diate action towards building a more sustain able future, all industrial manufacturing and consumer behaviours must accommodate global environmental targets. The circular economy model can help integrate the natural ecosystems with busi ness and consumer needs while redefining the concept of growth and focusing on eco logical and societal benefits. Achieving these goals is undeniably linked to some gamechanging innovations from the logistics service providers. They are the enablers and orchestrators of the transition, which is based on highly-efficient supply chain flows.

Fig. 5. Circularity as a function of four levers – sharing customer opinions with businesses to enable swift adjustments. Logistics players have always been pivotal in business, but the transition to a circular economic model is impossible without effec tive supply-chain schemes. Logistics systems will be responsible for supply chain redesign and transparency, best-practices information exchange among various sectors, and striving for transportation decarbonisation. Also, governments must play an active and visible role in the transition. Regulatory guardrails can steer the progression of the changes and speed them up by, e.g., ban ning the destruction of functional products or updating and restricting recycling rules. The state can also stimulate technology and product innovation by offering solutions such as investment opportunities and incentive programmes. Cabinets are also responsible for monitoring and progress management with local and global data collection, and overseeing progress in sustainability-related activities. Additionally, public awareness campaigns encourage sustainable behaviour on an individual level and stimulate societal demand for circularity and its benefits.

The last building block is advanced recy cling technologies. Here, once more, logisti cal solutions are invaluable to accumulate, direct, and sort product flows by, e.g., mate rial type or its condition. Reaching the critical level

The ninth block is smart asset collection and material recovery to get the maximum value of end-of-life products. Implementing national collection systems for these items is key, as are incentives for consumers – such as vouchers for returns, simplifying the process, and reduc ing costs to customers for returning products.

ECONOMY 2/2022 | Baltic Transport Journal | 33 ~65-80%~25-50%~5-25% Brand uptake Assortment share Scenario 1 –50% share in each lever Scenario 2 –70% share in each lever Scenario 3 –90% share in each lever Circularity

repairs are costly because they are mostly performed manually and automating this process would drive the costs down.

The road to sustainability for global indus tries is far from simple. For circularity to take root and deliver on its promise to significantly lower GHG-E and become profitable, all stake holder groups must participate in the process.

Consumershare participationLevel action

The report identified circularity’s four key levers, i.e., on the brand side – brand uptake, which is the share of brands offering sustainable products and business models, and assortment share – brand’s portfolio share that is circular ity-focused, and on the consumer side – con sumer participation and level of circular behav iour. “Uptake in each of these levers must reach a critical level before the combined effect of circularity has a significant impact on the share of circularity,” says the report. In order for the circular model to estab lish itself, there are some immediate steps stakeholders should take. Brands and manu facturers must establish specific, measurable targets, e.g., for GHG-E reductions; innovate their products and business models; part ner with peers and suppliers to incorporate industry standards and data sharing; take a holistic approach to circularity throughout their organisation and raise societal aware ness about its benefits. For consumers, a shift in behaviour is vital to ensure that companies can optimise their 5 Rs. That means a sustainable approach to lifestyle and adapted purchasing behaviour as well as peer education, through word of mouth and via social media, as well as feedback loops

And since we’re now living with a looming threat of a global war, let us end with a relevant WWII Gen. Omar Bradley quote, “Amateurs talk strategy. Professionals talk logistics.”.

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We have welcomed the news that five competition authorities have created a working group that will meet regularly to develop and share intelligence to detect and investigate suspected anti-competitive behaviour and collusion in the global container shipping industry, using existing international cooperation tools.

We need fair competition by Robert Keen, Director General, British International Freight Association (BIFA)

Container shipping lines under scrutiny: portent of market re-opening?

I hope the contents of a letter that BIFA sent to the UK Department for Transport in January 2022, subsequently forwarded to the UK Competition and Markets Authority (CMA), played some role in initiating the five competition authorities’ investigation (including the CMA). Willing to challenge As the UK’s main trade association for freight forwarding and logistics compa nies, our members fully accept that a free market economy is open to all but are increasingly concerned that the activities of the shipping lines, and the exemptions from legislation from which they benefit, are adversely and unfairly affecting their customers, especially freight forwarders and small & medium businesses. Our organisation made those points in a meeting with the CMA in March of this year. In particular, BIFA mem bers voiced their concerns about having their contract rates cancelled by con tainer shipping lines forcing them onto the more expensive spot market. Limiting access to the market is considerably wor rying our members. We are convinced that the well-doc umented chaos within the container shipping sector is leading to commercial power becoming increasingly concen trated, resulting in diminished market choice and competition and distorted market conditions. It will be interesting to see if the five competition authorities find that the current supply chain dis ruptions directly result from anti-com petitive conduct. The facts speak for themselves. During a period that has seen the EU block exemption regulations carried forward into UK law, there has been huge market consolidation. In the letter mentioned above, BIFA underlined that there were 27 major container shipping lines carry ing global containerised trade in 2015, with the largest having a 15.3% market share. Today, there are 15 carriers organ ised into three major alliances carrying that trade, with some analysts observing that the market share of a single alli ance on certain key routes could be over 40%. The pandemic has highlighted and accelerated this “development,” which has also contributed to dreadful service levels and hugely inflated rates, with car riers allocating vessels to the most profit able routes with little regard to the needs of their customers. The five competition authori ties are joining a growing number of organisations, including the OECD’s International Transport Forum, the European Association for Forwarding, Transport, Logistics and Customs Services (CLECAT), the International Federation of Freight Forwarders Associations (FIATA), the US Federal Maritime Commission, and the Australian Productivity Commission, in

Unfortunate language In a separate development, BIFA has also welcomed the opportunity to con sult on frontier issues. We have, however, queried some of the language used in a recent UK Government announcement about a 12-week consultation inviting respondents’ views on the customs inter mediary sector, the Simplified Customs Declaration Process (SCDP) and the Transit facilitation, as well as how the consultation has been structured.

Approximately 1,500 member-strong, the British International Freight Association (BIFA) is the prime trade association for UK-registered companies engaged in the international movement of freight by all modes of transport and/or customs brokerage. Apart from representation, BIFA also provides information and guidance on technical matters, training and development, and industry promotion. Visit bifa.org to learn more.

calling for governments at a national and pan-national level to give careful con sideration to evolving business arrange ments in the container shipping market to see whether they are in breach of com petition law. In the US, politicians and, in partic ular, the US President, concerned with high inflation rates, seem more willing to challenge the shipping lines. In the EU, there is a notable lack of enthusiasm to participate in such action, but that could be because the Block Exemption Regulation is due to be reviewed soon.

BIFA and its members have seen some of the language used in the announce ment as critical of the existing players, and especially the work they do and the systems they utilise and deploy, which they believe have been a major reason why work at the frontier has served trade well for many years. Asking them to “revalidate their importance to making the frontier work” and “deliver the evidence that will determine whether the services they currently provide are easily accessi ble, high-quality and cost-effective” is an unfortunate language that does nothing to demonstrate how valued the forward ing sector has come to be seen over the last few years. I would also have expected a little more interest in getting a collective view from the trade association that repre sents those companies that have kept trade flowing during a tough few years due to the UK’s exit from the EU, plus the impact of the COVID-19 pandemic on supply chains.

Photo: Canva

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It is clear from the research findings that companies and other stakeholders overall Have mental health interventions made a difference during the COVID-19 crew change crisis?

The most common interventions by industry stakeholders experienced by sea farers were a positive atmosphere onboard (77%), physical exercise (70%), and casual counselling among crew members (70%). However, those interventions listed by sea farers as being most useful were commu nicating with family (87%) and being pri oritised for vaccination (77.6%). That said, less than a third (30%) of the respondents were vaccinated against COVID-19 at the survey time. The results revealed a real gap between what was provided to seafarers during the pandemic and what they viewed as most valuable in terms of mental health support. This may have been for one of two reasons – the support offered wasn’t valued or seen as accessible by seafarers, or the interven tions available were not communicated well enough, which meant that seafarers were not even aware of the support they could access.

We have known for some time now that seafarers’ mental health is crucial to their wellbeing and safety. But as the pandemic unfolded and with 400,000 seafarers stranded at sea at one point, stakeholders within the maritime industry, including companies and non-governmental organisations (NGOs), had to respond quickly by providing mental health and psychosocial interventions.

T o understand more about how seafarers’ mental health had been affected during the pandemic and what more can be done to support them, Lloyd’s Register Foundation funded research involving an international team led by the University of the Philippines Visayas. The Mental health interventions for inter national seafarers during the COVID-19 Pandemic study focussed on what interven tions were available to, and used by, seafar ers during the pandemic and which they believed were most valuable in helping to manage mental health and wellbeing. How do our seafarers view mental health interventions?

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As the coronavirus pandemic took hold in early 2020, many seafarers found themselves stranded aboard their vessels as a significant crew change crisis unfolded globally. Border closures, strict quarantine requirements, and a slow vaccination rollout all had an impact on seafarers’ mental health.

The pilot comprised in-depth interviews with 26 seafarers and survey responses from 1,412 seafarers. Filipinos made up 67% of the sample, with 8% Chinese, although the pilot study also included seafarers from sev eral other countries such as Brazil, India, Jamaica, Japan, and the UK. The average age of respondents was 30 years old, and almost all of them were male (96%). More than half of the respondents (67%) had nonpermanent contracts. The research team, which included the World Maritime University and the University of Plymouth, identified 22 inter ventions as part of the pilot study, with 11 provided by company employers and 11 by other industry stakeholders such as seafar ers, charities, and governments. Almost 80% of seafarers said the most common intervention provided by employ ers during the pandemic were regular updates on crew changes and COVID-19, followed by timely crew changes (57%) and provisions of sufficient and high-quality personal protective equipment (PPE; 53%).

Facilitating timely crew changes were listed by 79% of seafarers as the most helpful action an employer could facilitate. At the same time, 68% said that the provision of immediate family support would have been the second most useful – something that only 21.9% of companies provided.

Humans first, workers second by Dr Olivia Swift, Senior Programme Manager, Lloyd’s Register Foundation

Take positive steps

Simply finding out what works for your crew by encouraging open and honest conversations and communication will help you understand what mental health support they would like to see. By gathering insight directly from sea farers about the issues affecting them, you can put the interventions in place that work best. While the pandemic has highlighted the need for effective mental health inter ventions, seafarers will continue to need support when COVID-19 is less of a risk.

2/2022 | Baltic Transport Journal | 37 need to improve their efforts to support sea farers’ mental health and wellbeing, espe cially during crises. This should include timely crew changes, immediate access to family support, and the availability of ade quate, high-quality PPE. All of this while promoting a safe working and living envi ronment, such as reducing overtime hours and increasing Internet data allowance. Likewise, governments need to take action to make sure that seafarers can be vaccinated against COVID-19, pri oritising them as essential or frontline workers. NGOs and other industry stake holders can also play their part in sup porting companies to make, implement, and strengthen policies to encourage the creation of a positive atmosphere off shore. Plus, they can make a difference by developing creative and robust strate gies to improve the awareness of, access to, and use of mobile mental health apps and virtual platforms. This will help give seafarers more access to spiritual, pasto ral, and guidance counselling services and support. The Neptune Declaration on Seafarer Wellbeing and Crew Change has seen more than 850 organisations across the maritime industry pledge to drive good practice and resolve the crew change crisis. This ini tiative is helping drive an industry-wide effort to improve seafarers’ mental health, focusing on the themes identified by this research, including recognising seafarers as critical workers, giving them priority access to COVID-19 vaccines, and estab lishing and implementing gold-standard healthThisprotocols.isapositive step forward in tack ling the bigger issues affecting seafarers’ mental health and wellbeing, and I would encourage organisations to get behind the Neptune Declaration. However, the research also shows that the needs of seafarers vary. Fortunately, there are some simple steps that companies can take now. Listen to your seafarers By reviewing the mental health services you are providing directly to your team, you can better understand what more can be done. For example, have you made services such as mental health helplines, access to port chaplains, and the provi sion of immediate family support readily available? Do your seafarers know how to access these services?

As we all know, seafarers across the mari time industry carry 90% of trade world wide, playing a vital role in the global supply chain. To fulfil their responsibili ties at sea, they spend months away from home; they work long hours without suf ficient rest, leading to stress and fatigue. Many experience short ship turnaround times, risk of criminalisation, harassment and bullying, and dangers from piracy. That is why it is essential that the mari time industry learns from this study and recognises that seafarers are humans first, workers second, and takes steps to ensure that creating a safer and happier work envi ronment is a long-term priority.

Lloyd’s Register Foundation is an independent global charity that helps protect life and property at sea, on land and in the air. The University of the Philippines Visayas study will contribute to Lloyd’s Register Foundation plans to build capacity in What Works for Wellbeing in Maritime and complements a Lloyd’s Register’s COVID 2020 survey, which looked at significant crew safety and wellbeing lessons learned from the pandemic. Lloyd’s Register Foundation has also funded The SafetyTech Accelerator to engage stakeholders with tech solutions for objective and ethical, real-time assessments of seafarers’ wellbeing, enabling more timely and effective interventions in support of both seafarers and safety. Head to www.lrfoundation.org.uk/en to discover more.

Photo: Lloyd’s Register Foundation

Smells like sustainability

Unlike diesel oil, ammonia has a very slow flame propagation, which means it burns much more slowly. Its autoignition temperature is also a lot higher, at around 630°C – diesel oil burns at 210°C. This means that sustaining combustion once it gets started is also more difficult with ammonia than with other fuels. “And, of course, you also need to ensure that the engine allows for the usual performance peaks that come with acceleration, etc. We are planning for a final fuel mix that would contain around 95% ammonia and 5.0% of a pilot fuel such as marine gas oil. In the future this could even be biofuel,” says Kirkeby.

Competing for supply Today, around 80% of the global ammo nia supply is used as fertilizer. Where will the ammonia for shipping come from? This is an issue that remains to be resolved, and production would have to ramp up signifi cantly to meet the future demands of both shipping and global agriculture. In the context of decarbonization it’s important to understand that when we talk about ammonia’s great potential for ship ping, we mean green ammonia. The fuel’s sustainability credentials vary depending on how it is sourced. The fuel can be cat egorized as ‘brown’ (produced from fossil sources), ‘blue’ (produced from fossil sources with carbon capture) or ‘green’ (produced from renewably sourced hydro gen in a process called electrolysis). While the production of blue ammonia results in 85% less CO2 emissions than brown vari ants, only green ammonia is a zero-carbon fuel. The crux is: green ammonia is cur rently not produced anywhere. This is expected to change over the coming decade. Several fuel suppliers are already doing a lot of work on the necessary framework for producing green ammonia, including cer tification, technology and costs.

Mitigating harmful emissions is another significant challenge, even with green ammo nia. While carbon-free, ammonia contains a lot of nitrogen, and burning it is likely to result in both nitrogen oxide (NOX) and nitrous oxide emissions. Kirkeby explains that NOX emissions weren’t so much of an issue for the engine manufacturer: “They are well-regulated and the abatement technol ogy for NOX – selective catalytic reaction –is already used on many ships and should also be suitable for ammonia. Nitrous oxide emissions are the greater challenge. N2O, or laughing gas, is a very aggressive green house gas that is 283 times stronger than CO2. Our approach is to use the combustion process itself to mitigate these emissions.” ammonia as ship fuel

Combustion tuning

Harnessing

I t smells pungent and if a mere 0.5% of the air you breath consists of it, it will kill you. And yet ammonia is being heralded as one of the best zero-car bon fuel options for deep-sea shipping in particular. In this article we will highlight some of the central questions that need to be answered before ammonia-fuelled ships can hit the water, including the supply, sustain ability, engine technology and the necessary safety considerations.

by Hendrik Brinks, Principal Researcher for Zero Carbon Fuels, and Christos Chryssakis, Business Development Manager and Alternative Fuels Expert, DNV

The first ammonia-fuelled engine While the supply of green ammonia will take time, the development of engine technology is progressing fast. In the AEngine joint development project, MAN Energy Solutions, Eltronic FuelTech, the Technical University of Denmark and DNV are working together on develop ing the first dual-fuel ammonia-powered combustion engines. With combustion testing scheduled for this spring, MAN’s two-stroke model is expected to go to market in 2024. “As an engine designer we are agnostic when it comes to the dif ferent fuel types,” says Peter H. Kirkeby, Principal Specialist, Dual-Fuel Engines at MAN Energy Solutions. He furthers, “Ammonia has generated a lot of inter est, especially from the deep-sea ship seg ments, and it has a lot of potential – but developing an engine that is powered by ammonia has been a challenge. One of the biggest hurdles is how to burn ammo nia efficiently to extract the maximum amount of power while making sure the engine is still a compact design.”

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Ammonia is one of the most promising future fuels in the maritime world , but introducing it to the fuel mix is far from straightforward. What are some of the biggest challenges that need to be overcome? And what are DNV and other companies doing to tackle them?

This is how it could be done: burning ammonia generates nitrous oxide emissions inside a certain pressure and temperature window during the combustion process. “Through combustion tuning, we can either stay clear of that window or we can go into the temperature and pressure range where it’s decomposed again. In the diesel cycle, which is the one we use, you have very good control over this,” says Kirkeby.

Our class rules for ammonia are based on experience with ammonia as a refriger ant and as cargo. We are constantly updat ing these rules, as ongoing research offers further insights into the necessary mar gins to ensure that systems are not only safe but also practical in their handling.

The safety of ammonia systems and operational procedures is at the top of the agenda in DNV’s work on this fuel. In the AEngine joint development project, DNV is handling the safety aspects and will be performing risk assessments with regard to hazard identification (HAZID), hazard and operability (HAZOP) and failure mode and effect analysis (FMEA). Mitigating ammonia toxicity DNV class rules for ammonia as ship fuel were published in July 2021, paving the way for technology development. They include provisions for storing, handling and bunkering ammonia on board. Some of the aspects to consider here include the use of toxicity zones and venting masts in specific locations. The engine technology itself would be fitted with double wall piping, so that the pipe containing ammonia is surrounded by a ventilated space, making it easy to detect leaks (a common standard for all alternative fuels). Additional solutions such as double block and bleed valves ensure that systems can be separated for maintenance.

Carrying out risk assessments on the first designs for ammonia-fuelled vessels will be an important next step.

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DNV is one of the world’s leading classification societies and certification bodies, helping businesses assure the performance of their organisations, products, people, facilities and supply chains. DNV delivers world-renowned testing, certification and technical advisory services to a broad range of industries, including the maritime sector and the energy value chain (renewables, oil and gas, and energy management). Visit www.dnv.com to find out more. Fig. 1. Green ammonia – production and use

Ammonia bunkering Looking beyond operations on board ammonia-fuelled vessels, DNV recently completed studies on ammonia bunker ing operations in the ports of Amsterdam and Oslo, examining the potential ramifica tions of a large ammonia leak in ports. We looked at worst-case scenarios, including the implications of leaks in the port-side supply infrastructure and on a bunker vessel. The Port of Oslo lies in a residential area – so the stakes are particularly high here. We defined external safety zones and risk-reduction measures, looking at the radius which would be affected by an ammo nia leak. For the Port of Oslo, we found that in principle using a bunkering vessel with refrigerated ammonia would come with an acceptable risk level, because the residential area in Oslo would not be affected by a leak. But there is still work to be done to ensure safe handling on board. There are many parts to this puzzle and it’s essential that we have them all in place for ammonia to safely enter the marine fuel market. We will need rigorous safety procedures, the inclusion of ammo nia in international regulations as well as engine designs that control harmful emissions and allow for straightforward maintenance protocols. And of course, highly skilled crews that are trained to handle ammonia and green ammonia in sufficient supply. Only then can ammonia reach its full potential as one of the most promising green fuels.

The final challenge has been to adapt the well-established two-stroke engine system to ammonia without changing the fundamentally good things about it. “We have to make it a very simple system that can also handle ammonia – mean ing that it is modular enough to allow for easy troubleshooting and for crews to have straightforward maintenance procedures even though the fuel is a toxic substance,” Kirkeby underlines. The ideal first users Looking ahead, the first engines will likely be installed on ammonia tankers. Currently there are about 200 gas tankers that can take ammonia as cargo and typi cally 40 of them are deployed with ammo nia cargo at any point in time. These kinds of vessels could be ideal candidates as they already have the fuel as cargo and crews with experience in handling ammonia. Other segments such as bulk carriers and container ships could follow suit. DNV expects the first ammonia-fuelled vessels to hit the water in the second half of this decade, but large-scale uptake of this tech nology is not expected until the early 2030s.

Source: MAN Energy Solutions Source: DNV Fig. 2. Principles of the ammonia supply system showing main components

Addressing

Ready to drop?

Some 20 years ago, container cranes didn’t have to service vessels as large as they do today, so it was unheard of to have a gantry with an outreach of over 200 feet (approx. 61 m) because container carri ers weren’t that big. Back then, the largest cranes could pick up a single 40-foot or twin 20-foot container, while nowadays, the big gest gantries can lift tandem 40’ or four 20’.

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In addition, the biggest cranes have a second trolley to help sort the contain ers when the primary one places them on the dock, which speeds up yard opera tions. Today, cranes with an outreach that extends beyond 230’ (70 m) are standard on big ship-to-shore gantries, made to handle the largest container ships with 202-footbeams (61.5 m) – with spare room for the future growth of container ships. All that said, crack and fatigue issues may be pre sent in cranes of all sizes. Slipping between the cracks Many people think of fatigue as ‘wear ing out’ of the steel, but this is not quite right. Fatigue failure occurs in components subjected to a high number of fluctuat ing stresses. Under these conditions, fail ure can occur at a stress level that is sig nificantly lower than the tensile or yield strength for a static load. Steel has infinite fatigue life if the fluctuating stresses are low enough and operations take place in an ideal Cracksenvironment.caninitiatefrom many sources, such as high cycle fatigue, poor manufactur ing, corrosion, or overload events like snag, earthquake, or storm winds. The initial flaws may be microscopic or macroscopic. Growth rate increases with crack size, so a defect that has grown from microscopic to a detectable size is well towards reaching critical size. However, if the steel lacks reasonable notch toughness, the critical crack length will be significantly smaller than steel with excel lent notch toughness. It is highly unlikely that someone with out training would be able to detect the first signs of cracking or fatigue. It is also not likely that the operator would notice a change in the crane’s performance, even if they are very familiar with it. Further, not all cracks are equal – it’s all about risk management. If failure of a structural beam would cause catastrophic crane cracks and fatigue – before it is too late

by Richard Phillips, Mechanical Engineer, Casper, Phillips & Associates Inc.

Although steel can have an infinite design life if the stresses are low enough, designing cranes to last forever would increase the cost beyond the competitiveness point. Ports vie for shipping lines, so if one pays more for a container crane, the box move cost will be higher to repay the investment. Carriers will go to a port with lower opera tional costs unless there is another hourly operational benefit. Even if crane structures were designed to last infinitely, they would still eventually become obsolete due to the increasing size of container ships.

Lately, it seems that ports have been putting off crane purchases and want to use their existing machinery past their design life. Additionally, cranes have been pushed harder than ever as they move record amounts of container traffic. These two factors have led to a rise in fatigue-related maintenance issues on older container cranes.

Just how critical is the problem when cracks appear? The answer depends on how much damage the area can safely withstand and the consequences of such failure.

Managing cracks

One methodology to manage cracks and other defects within fracture mechan ics is using ‘damage tolerance.’ Pioneered by the aerospace industry, the idea is that the engineer assumes there is a crack of the smallest size with a given inspection method. The engineer can then calculate the crack growth rate during regular use. This analysis is then used to set the appropriate inspection intervals based on the criticality of the member or joint. By calculating the crack damage tolerance of a crane and implementing the resulting inspection programme, chances are much better for identifying and scheduling repair work to minimise operational downtime.

Like in a car, the oil needs to be changed more often than the timing belts. The same is true about cranes: some areas need more attention than others. It typically depends on both the duty cycle the cranes were designed for and how the equipment is operated. A damage tolerance programme integrates these parameters to provide a rational basis for effective inspection intervals. failure, it is considered a fracture critical member. If a fracture critical member has a crack, it is not worth the risk of a cata strophic failure to continue operating until the crane can be taken out of service and the damage is repaired. Fatigue and corrosion failure of con tainer cranes has been rare, but there has been at least one incidence of a total col lapse. There were also several close calls where imminent failure was avoided because cracks were discovered just in time. Numerous fatigue failures of indi vidual members and connections have occurred, but a shift to an alternate load path usually prevents a total collapse. Therefore, alternate load paths are a vital fatigue design consideration.

MARITIME 2/2022 | Baltic Transport Journal | 41

Fatigue issues are not always a by-prod uct of overuse. Sometimes the crane design is not robust enough for its specified duty class; other times, there are manufacturing defects that the quality assurance/quality control programmes missed. Also, acci dental overload cases such as collisions, stalls, snag loads, or high wind events and earthquakes can reduce a crane’s fatigue life. From our perspective, fatigue problems appear to be increasing due to the record amounts of container traffic. Best practice: prevent accidents Consulting engineers, port authorities, and shipping companies have developed container crane design specifications. These particulars usually require that the design of various elements comply with domestic and international design codes. A consultant with engineering exper tise is often hired to validate if the crane structure and components meet the require ments. Ensuring a crane design meets the design specifications – that appropriate materials and loads are used – reduces the risk of structural failures.

Photos: Casper, Phillips & Associates Inc.

Damage due to a crack is directly related to how fast the crack can grow. The study of crack propagation is called ‘fracture mechanics,’ which combines analytical meth ods with experimental research to quantify a crack’s growth potential. The conse quences of a member or joint’s failure also play a part in determining the criticality of a crack. A member or joint with no alternate load paths and whose failure would cause a crane to collapse is called fracture critical.

Calculations have their limitations Typically, cranes are designed only considering high cycle fatigue. Overload events are checked for strength but usu ally aren’t included in the fatigue analysis. Several moving load locations are con sidered, and an equivalent lifted load for fatigue is decided based on the crane clas sification or specified by the purchaser. The more realistically the moving load paths model how the crane is used, the more accurate the analysis results will be. However, even the most thorough cal culations have their limitations. They have many built-in assumptions that may not be accurate. For instance, if a weld has poor fusion or porosity, it may not be detected by a surface inspection such as visual, dye penetrant, or magnetic particle testing. This weld can have subsurface cracks or defects that can grow to the surface much faster than calculations predict. Design to a fatigue criterion is no guarantee that fatigue will not occur. That said, on a sta tistical basis, fatigue design does provide reasonable fatigue protection. Another vital point to consider is cor rosion. Container cranes work in a rela tively hostile environment surrounded by saline and acid laden air. Corrosion is an ever-present enemy that is no mystery to any maintenance department or owner. Techniques and materials for preventing corrosion are well known, and the failure to maintain a corrosion-free crane is tan tamount to accepting a reduced life for the affected crane components. With advancing age, poor structural maintenance programmes become evi dent exponentially. For some container cranes, it is too late; hence they should be retired. In other cases, it is possible to increase the life of cranes well beyond the original purchase specifications. If the design of a structural component is controlled by strength and not fatigue, its design life may well exceed the required minimum fatigue life.

The new life of a crane In the current economic environ ment, there is much uncertainty sur rounding steel fabrication. Steel prices,

MARITIME 42 | Baltic Transport Journal | 2/2022

Unlike other industries, the container crane sector has no formal body for investigation, documenting, and report ing structural failures. These are often a source of embarrassment, liability or litigation – and therefore remain confi dential. If an accident occurs, disputes are usually settled through private liti gation. This is unfortunate because the entire industry would benefit from shar ing such information. The best practice is to prevent accidents, so it is always a good idea to have a qualified engineer reviewing the crane manufactur er’s design before construction, along with having a good maintenance programme once the crane is in service.

Repairing the cracks If a crack is detected in time, it can be repaired. However, due to residual stresses and other limitations from the on-site crack repair, detectable cracks may re-develop after fewer load cycles.

MARITIME 2/2022 | Baltic Transport Journal | 43

CPA was founded in 1987 by Bill Casper and Rich Phillips after relocating from a California consulting firm. We started with pre-established worldwide recognition as structural engineers specialising in container cranes. For the container industry, we are unique in that we offer a multi-discipline combination of mechanical, structural, electrical and computer science engineering, plus anti-corrosion coating technology. We have also expanded our crane expertise to include most types of cranes – from RTG, RMG and Goliath cranes to B.O.P handlers on drillships. Ports and crane manufacturers worldwide use our services to design and procure all types of load handling equipment. Head to www.casperphillips.com to learn more. access to components, labour force costs and availability, etc., are all extremely volatile. Owners want to protect them selves by procuring cranes on a firm fixed-fee contract. Such a deal includes all expenses associated with crane pro curement, including delivery and com missioning for a single price (you’ll for give me for not publishing any figures). Likewise, crane manufacturers protect themselves by building in a lot of the costs due to the uncertainty surround ing steel fabrication. This situation has further increased the number of crane owners taking an interest in extending the life of cranes. A gantry may have been designed for two million cycles. Still, its owners want to study the business case for upgrading the crane structurally and mechanically to extend the life up to three or even four million cycles. As cranes are used beyond their origi nal design lifespan, structural strength ening is a common method to extend the useful life. After the initial investment, strengthening will lower the stresses in critical areas, decreasing both downtime and inspection costs. If a critical area has been properly strengthened, it will be less likely to develop cracks and won’t require frequent inspections. Crane upgrades come in many forms: crane raises, boom extensions, rated load increases and increasing the useful life of the crane. Raising the crane and extending the outreach helps extend the machine’s useful life by allowing it to service evergrowing vessels. Even if the cranes are large enough to handle the calling ships, they may need structural strengthen ing to enable them to be used longer. Strengthening can help prevent cracks, thus minimising downtime and increas ing operational profitability. Yet, some cranes begin having signifi cant structural problems. Like a beater, they become too expensive to operate because the maintenance costs and down time are too high. Don’t turn a blind eye The most important defence against structural ageing is targeted inspections performed at specified intervals. Of course, operators and maintenance personnel should be trained to inspect constantly at every opportunity. This is the best form of insurance, and like buckling a seat belt, it is free. However, this should not replace inspection by trained technicians working at known Periodically,intervals.allcranes should be exam ined by a technician with broad, generic experience with structural maintenance problems. Dangerous cracking and dete rioration can escape even the most consci entious visual inspection. A sizeable fatigue crack can close so tightly that it may not be visible to the naked eye even if known to exist. The only reliable way to find fatigue cracks is by a qualified expert using nondestructive testing (NDT) methods. An engineered inspection manual can tell inspectors where and how often to look for cracks. A good inspection manual will show which NDT tests to run on the welds, which are the most likely to develop fatigue cracks. For container cranes, maintenance windows are available in between berthing vessels. The inspection methods most used are visual, magnetic particle, or ultrasonic, and will depend on how critical the member is to the crane’s load-carrying capacity. Inspection by outside technicians is expensive but can save property and lives. Like all other risk-benefit alternatives, there is no universal answer to how much one should spend to reduce the danger. The key to getting the best life out of these cranes is to have a good inspection manual and a responsive maintenance programme. Creating post-design life structural inspection manuals is a widely accepted service many crane owners cur rently utilise. Early discovery of a crack can limit the scope of the repair and curb unscheduled downtime.

If cracks are found, further engineer ing analysis should be conducted to determine what repairs must be made. Due consideration should be given to increased inspections – and possibly reinforcement. The most common fix for cracks is grinding out and repair ingRemember,them. the best solution is pre venting cracks from forming in the first place. Cranes can benefit from designs by experienced engineers who have put in the time to learn and master the sub ject of fracture mechanics. Fracture mechanics and related research have shown which types of designs and con nection details are less likely to have fatigue issues like cracks.

That said, experts and regulators were persuaded that smaller batteries present

The risks and precautions when transporting lithium batteries L ithium batteries, particularly lith ium-ion (Li-ion), have become a preferred energy source for many products given their high power density, light weight and the abil ity to recharge, the last allowing to use them for several years. Today, they are used to power a variety of goods, includ ing handheld devices (such as phones or cameras), through larger items like power tools, to increasingly larger electric vehi cles (e-bikes/scooters and even seago ing ferries). The market is exponentially increasing through consumer demand and broader energy transition globally. Inevitably, lithium batteries have been moved by all modes of transport. However, following serious incidents, revised regula tory restrictions regarding the carriage of lithium batteries by air, taking effect from 1 April 2022, may result in greater vol umes being transported by surface modes. Coupled with a number of recently recorded incidents, safety concerns around the ship ping of lithium batteries rightly continue to grow amongst the maritime community. Understanding the risks is therefore crucial. Demand outpaces regulations Lithium batteries contain stored energy utilising two different key chemistries: lith ium metal/alloy and Li-ion. The former con tain metal lithium and are primarily dis posable, whereas the latter are rechargeable and have a different chemical composition. The hazard that a given lithium battery presents is primarily related to the amount of contained reactive substances (includ ing lithium and other reactive material). The sharp rise in demand has been accom panied by the supply of cheaper, poorer quality and untested batteries, including refurbished and even homemade power banks. E-commerce platforms have facili tated a global trade in these potentially lethal batteries, often circumventing international standards and regulations. As with many successful technologies, market demand has outpaced the develop ment of safety regulations. Since the mid1980s, lithium batteries have been classi fied under dangerous goods regulations for transport based on the weight of lithium contained in the cells or battery. As the technology has advanced, the amount of energy derived from the active material has increased by up to 50%, while the cell weight has reduced significantly. Through the manufacturing stage and in preparation for transport, lithium batteries must have safeguards built in to ensure that they can withstand not only the rigours of transport but also everyday use through their expected lifetime. There are inter national standards that lithium batteries must meet to receive certification for safe transport, which involves passing a rigor ous series of tests performed by an approved independent testing laboratory. The respon sibility for testing and achieving certifica tion rests with the shipper/manufacturer. The rigours of transport should not be overlooked. Shock and impact damage may result in thermal stability issues, including short circuit. Defective lithium batteries have the potential to release all their stored energy instantly, resulting in thermal runaway and flammable gases. Proximity to external heat sources can also present challenges. Given their nature and use, newly man ufactured lithium batteries can be trans ported by themselves as individual items, packaged with products (i.e. replaceable) or within products (not intended to be removed). However, consideration should be given to reverse logistics, including used, damaged and faulty products being returned, lithium batteries being shipped as waste and those being moved for recycling. In all instances, the state of charge of any battery is a relevant factor; less stored energy generally equates to less risk. Apart from being transported as cargo, lithium batteries are used to power many of the technological devices deployed in the supply chain to monitor and deliver efficiencies, such as GPS locators, motion detection and security, including for smart containers. Deliberations remain underway at the International Maritime Organization (IMO) in recognition of the potential haz ards that these devices pose when placed in the hold of a container ship. Both regu lators and the industry seek to set mini mum standard criteria in the International Maritime Dangerous Goods (IMDG) Code for devices powered by such batteries. In summary, the risks presented through the intermodal supply chain primarily exist where new lithium batteries are poorly manufactured, untested or defective. These batteries have a higher propensity to mal function. It is also recognised that risks are higher when the batteries are being charged. At any point of handling, storage and transport, the supply chain risk is com pounded by used, fully or partially charged batteries and those destined for recycling or waste. Furthermore, some incidents have revealed the use of inadequate packaging, fundamentally compromising safety.

Know your cargo As noted above, lithium batteries, until around the mid-1980s, came within the IMDG Code Class 4.3 regulations (sub stances which, in contact with water, emit flammable gases). Nowadays, there are four different UN numbers for the classification of lithium cells or batteries: UN 3090 (lith ium metal batteries shipped by themselves); UN 3480 (Li-ion batteries shipped by them selves); UN 3091 (lithium metal batteries contained in equipment or packed with equipment); and UN 3481 (Li-ion batter ies contained in equipment or packed with equipment). These are included within Class 9 of the IMDG Code as miscellaneous dan gerous substances and articles.

44 | Baltic Transport Journal | 2/2022

The inherent risk in transporting lithium batteries by any mode is well documented, as have been a series of fires caused by their mishandling. It is clear that the development of green technology will lay increasing emphasis on their use in the future. Let us highlight the nature of the risks, along with the precautions that must be strictly in place for safely transporting these crucial components of modern manufacturing.

Taking charge by Peregrine Storrs-Fox, Risk Management Director, TT Club

Photo: Canva

2/2022 | Baltic Transport Journal | 45 reduced hazards compared to their larger counterparts through the supply chain. While there are various special provisions applicable to lithium batteries, the focus here is on one alone. On the basis that smaller lithium batteries present a reduced hazard, within the UN exists the SP188 regulation to enable transport under specific conditions. Where lithium batteries or cells meet these requirements, they are not subject to other provisions of the IMDG Code when offered for transportation. Notwithstanding quali fication for transport under SP188, however, these batteries continue to be dangerous goods, presenting the same risks. The SP188 qualifying criteria start by considering the weight and energy content, specifying the maximum values for lith ium metal and Li-ion cells and batteries. The requirements proceed to focus on the protection of the cell or battery, setting the required packaging and considering protec tion from the risks of short circuit, particu larly where cells or batteries are contained within the equipment. An important point to raise here is that because those lithium batteries qualifying under SP188 are not subject to other provi sions of the IMDG Code, beyond the mark ing of the packages (externally invisible once packed in a freight container), there is no requirement to notify the carrier specifically of the contents. Conversely, cells and batter ies that don’t satisfy the requirements set out under SP188 are fully regulated for trans port. Accordingly, such shipments must be declared and shipped as dangerous goods under the applicable UN number. As with many cargo types, the majority of shippers will take all practicable steps to ensure that their cargo meets specifications, achieves certification and is classified, pack aged, packed, labelled/marked and declared correctly for transport. The small – frankly criminal – minority are motivated to avoid compliance, entering cargo into the supply chain that presents a great risk to all. Once lithium batteries, particularly those shipped under SP188, are placed into the intermodal supply chain, there is very little opportunity for the cargo to be checked, visually or otherwise, to verify compliance. Due diligence is therefore critical: know your customer, understand their processes and make sure that they are taking the required actions in preparing and declar ing the cargo correctly. Accurate, unam biguous and timely communication between contracting parties is also vital, ensuring that crucial information is shared with all actors in a given supply chain. Fat in the fire? History illustrates that the most cat astrophic losses associated with the carriage of lithium batteries have unfor tunately occurred so far in the air mode. All surface modes are, however, exposed to these risks. There may be fewer reported incidents, but several container fires are suspected to have involved lithium bat teries. Furthermore, the technological advances, modal shift away from air and societal appetite for electric vehicles all point to emerging Lithium-fuelledrisks.fires are challenging to extinguish, prone to thermal runa way and potentially explosive. Due to the heat generated, re-ignition once a fire has been extinguished is an additional risk, together with the impact on adja cent cargo or equipment. Furthermore, hard lessons learned by land-based fire responders, particularly relating to e-vehicles, need to be assimilated into the unforgiving maritime environment, where the crew’s capability to fight fire is already woefully strained. Fire is an unwelcome hazard at any point during transport, storage or han dling. TT Club will maintain efforts to increase awareness of the challenges faced onboard container ships and within port/ terminal areas.

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.

“Shipping is an essential global industry which is currently on an emissions trajectory that is dramatically out of line with the Paris Agreement temperature goal,” reads Closing the Gap. An Overview of the Policy Options to Close the Competitiveness Gap and Enable an Equitable Zero-Emission Fuel Transition in Shipping, a report prepared by UMAS on behalf of the Getting to Zero Coalition. If the transport community, both off- and ashore, truly cares about the environment and wants to participate in keeping the global temperature rise below one and a half centigrade, then there is no other option for it than to become zeroemission – and do so relatively fast. Fortunately, UMAS marks, several measures can get the sector to the Promised Land by mid-century. Implementing some of them will be essential, which isn’t to say others cannot put a match to setting the green revolution alight. The authors also note that decarbonising shipping is something more than what next-gen marine fuel goes into the tank – in that the transition should be fair, reducing inequality instead of hammering the fractures between the well-off and the underprivileged.

I n 2018, the entire shipping indus try released an estimated 1,076mt of greenhouse gas emissions (GHG-E), which translates to the widely pub licised figure of 2.9%, the sector’s share in total anthropogenic carbon footprint. Should the industry do nothing, its emis sions will rise by 90-130% by 2050 (count ing from a 2008 baseline) following an increase in traffic powered by fossil fuels. In spring 2018, the International Maritime Organization (IMO) signed off on its Initial GHG Strategy: halv ing international shipping’s absolute annual GHG-E by 2050 (again, versus the 2008 starting point), plus reducing the sector’s carbon intensity by at least 40% till this decade’s end. All of this is to align international shipping with the 1.5°C-Paris Agreement target. UMAS adds that domestic shipping, which falls under national jurisdiction, should join the effort as quickly as possible since it accounts for 30% of the industry’s total GHG-E.

by Przemysław Myszka

Bucket of green steam?

46 | Baltic Transport Journal | 2/2022

Decarbonising shipping – successfully and fairly Source for all figs. and Tab. 1: UMAS’ Closing the Gap. An Overview of the Policy Options to Close the Competitiveness Gap and Enable an Equitable Zero-Emission Fuel Transition in Shipping Fig. 1. Historical and projected international shipping emissions and trade metrics, indexed in 2008, for 1990-2050 01990 2000 (high)ton-milesProjected Year 100%)=(2008Index Projected(low)ton-milesProjected intensityProjectedemissionsProjectedemissionsCO2(high)CO2(low)carbon 20082010 2020 2030 2040 2050 30025020015010050 Historical CO2 emissions Historical ton-miles Historical carbon intensity 01990 2000 (high)ton-milesProjected Year 100%)=(2008Index Projected(low)ton-milesProjected intensityProjectedemissionsProjectedemissionsCO2(high)CO2(low)carbon 20082010 2020 2030 2040 2050 30025020015010050 Historical CO2 emissions Historical ton-miles Historical carbon intensity

Carbon price & revenue recycling

Setting a carbon price – on the amount of fossil fuel consumed or CO 2 /GHG emitted – would be the most straight forward solution. Authors of Closing the Gap scrutinised two scenarios in this regard: axing by half or entirely behead ing absolute emissions by the middle of the current century. The analysis was conducted on the assumption that carbon pricing is the only measure undertaken to fulfil IMO’s obligations. In both cases, carbon pricing starts in 2025, beginning with a modest 11 US dollars per one tonne of CO 2 . GHG-E reach their highest five years later when the levy goes up to around $100/tCO 2 For the -50% scenario, the carbon price averages at $173/tCO 2 , peaking at $264/tCO 2 . Interestingly, the levy in the -100% storyline isn’t much higher and averages at $191/tCO 2 (though its peak reaches $360/tCO 2). However, the authors note that a more aggressive pricing approach might be sounder, “[…] it could be better to set the initial carbon price at a higher level than the model and follow a smoother (global, regional, and national), plus informa tional and voluntary for good measure. If played out with skill, shipping might, without batting an eyelid, call itself the most environmen tally friendly transport mode. Sink or swim.

In essence, UMAS sees only one possi ble way to marry the increase in transport demand with making shipping climate-neu tral: transitioning to zero-emission fuels, which should become the dominant energy source by the 2040s. Because these will be at best double the price of fossil bunkers throughout the 30s and 40s, incentives are needed to close the gap. Preferably, a whole bucket of policies – economic and political Fig. climate mitigation Regulatory Programmes Policy Measures

2. Overview of

Voluntary GovernmentActionProvision of Public Goods & Services/National & Regional Measures

measures Economic Instruments Direct

SUSTAINABILITY 2/2022 | Baltic Transport Journal | 47

Baseline-and-CreditSystemSystem

ProductTechnologyPerformanceR&DProductionSubsidiesSubsidiesSubsidiesStandardsStandardsStandards

Economic policies Economic instruments for decarbonis ing shipping revolve around market-based measures (MBMs) used by regulatory bodies to narrow the price spread between fossil and zero-emission fuels. It can be done by increasing the cost of using the former (by imposing a price on carbon) or lowering the latter’s (through subsidies, tax breaks, and funding research & development). Economic policies can generate mindboggling revenues, counted in billions of dollars annually, which could be recycled to aid shipping in the transition. They can also incentivise fleet renewal towards tonnage that performs better than a set reference point, thus receiving rebates generated from collected fees (hence their name: feebates). Better late than never, the IMO decided to start working on mid-term GHG-E cutting measures at the 76 th meet ing of its Marine Environment Protection Committee in June 2021. These include MBMs, not necessarily a novelty topic to the IMO, looming at its agenda-horizon since 2003, but with discussions null and void from 2013.

FeebatesCap-and-Trade

Fuel

TradingEmissionsTaxesEmissions&LeviesSystemSubsidies

Approaches Information

2020 2025

1.0009008007006005004003002001000 050100150200250300350400450500 2025 2030 2035 2040 2050 Emissions (tonnes CO2) Carbon Price (US$/tonne CO2) price

In the -100% scenario, this would mean an average of $96-191/tCO2 (peaking at $179358/tCO 2). UMAS also underlines that “[…] the expectation of what the carbon price will be in the future is key to estab lishing the business case for zero-emission investments. Price corridors – i.e. setting a band of minimum and maximum carbon prices – could be implemented to offset some of the business uncertainty with future carbon pricing.”

300500450400350250200150100500

Fig. 4. Projected

Percentage of revenue recycling 0%100%Carbon price range Carbon price range Carbon price (US$/tonne CO2)

2008); zero operational shipping GHG emissions globally by 2070. Target of zero operational shipping GHG emissions globally by 2050 HFO MDO LSHFO LNG Hydrogen Ammonia Methanol

2020

in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. Based on Scenario D which has a target of zero operational shipping GHG emissions globally by 2050. Year Year increase, thereby easing potential eco nomic shocks of sharp price increases. This could also help to ensure there is an emergence phase of the transition during the 2020s (e.g. funding RD&D to reach five percent zero-emission fuel penetra tion by 2030), which enables shippingspecific cost reductions prior to the more rapid uptake of new fuels scheduled for the 2030s.”

Depending on the level of recycling, yearly revenues gathered under the -50% scenario tot up to $53-105b, rounding up $1.3-2.6tr in 2025-2050. As such, these funds would cover the $1.0-1.4tr of investment need for (partial) decar bonisation of shipping as estimated by UMAS. The figures for the -100% case are $41-81b/year, $1.0-2.0tr, and $1.4-2.0tr, respectively. “A higher carbon price and a faster decarbonisation trajectory in the scenario targeting full decarbonisation by 2050 result in a lower amount of total revenue generated. That is because, in this scenario, emissions reduce rapidly from the early 2040s to achieve zero emissions by 2050 and with that, the potential for generating revenues decreases as well,” explain the authors of Closing the Gap UMAS notes that recycling all the rev enues would leave no money for support ing what the authors call least developed countries and small island developing states, two groups worst-hit by climate change. These nations don’t have the means to counter what is already hap pening, let alone bear the brunt of green ing their logistics chains.

2045 2050

1.0009008007006005004003002001000 050100150200250300350400450500 2030 Year Year 2035 2040

Emissions Millions Millions Carbon

2040 2045 2050

SUSTAINABILITY 48 | Baltic Transport Journal | 2/2022 Carbon priceEmissions 1.0009008007006005004003002001000 050100150200250300350400450500 2020 2025 2030 2035 2040 2045 2050 Emissions (tonnes CO2) Carbon Price (US$/tonne CO2) Emissions Millions Millions Carbon price 1.0009008007006005004003002001000 050100150200250300350400450500 2020 2025 2030 Year Year 2035 2040 2045 2050 Scenario E: Target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. Scenario D: Target of zero operational shipping GHG emissions globally by 2050 2020 2025 2030 2035 2040 2045 2050 2020 2025 2030 2035 2040 2045 2050 Percentage of revenue recycling 0%100%Carbon price range Carbon price range Carbon price (US$/tonne CO2) 300500450400350250200150100500 Percentage of revenue recycling 0%100% Carbon price (US$/tonne CO2) 300500450400350250200150100500 Based on Scenario E which has a target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. Based on Scenario D which has a target of zero operational shipping GHG emissions globally by 2050. Year Year Fig. 3. Carbon price trajectories and their associated emission trajectories Carbon priceEmissions

Scenario E: Target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. Scenario D: Target of zero operational shipping GHG emissions globally by 2050 2025 2030 2035 2020 2025 2030 2035 2040 2045 2050

300500450400350250200150100500 Based on Scenario E which has a target of 50% absolute reduction

Percentage of revenue recycling 0%100% Carbon price (US$/tonne CO2)

Pricing will also depend on the degree to which the revenues will be recycled, i.e., returned to the industry to support decar bonisation. If all funds were to come back, the carbon price could be lowered by half. future marine fuel demand to

2020

10020165(EJ)DemandEnergy Year Year SCENARIO E SCENARIO D 2015 2051204620412036203120262021 10020165(EJ)DemandEnergy 2015 2051204620412036203120262021 Target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. Target of zero operational shipping GHG emissions globally by 2050 HFO MDO LSHFO LNG Hydrogen Ammonia Methanol 10020165(EJ)DemandEnergy Year Year SCENARIO E SCENARIO D 2015 2051204620412036203120262021 10020165(EJ)DemandEnergy 2015 2051204620412036203120262021 Target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared

2045

future

measures

Based on Scenario D which has a target of zero globally 2050. Year Year One solution would be to have a higher than needed decarbonisation generating surplus revenue for sub sidising These investments could include crew training for Global South populations to provide them with hi-end jobs handling remotelyThe funds could also be used for setting up future fuel For instance, the International Energy Agency (IEA) reports that cur rently, almost all capacity for producing zero-emission hydrogen and fuels based on it are in advanced economies and China, meaning that less developed coun tries might end up throwing themselves at others’ mercy. Transferring money and technology would, in turn, help the Global South to become independent – from extractivism and imports.

other projects.

SUSTAINABILITY 2/2022 | Baltic Transport Journal | 49 Fig. 5. Fuel price projections LowerboundUpperbound $/GJ$/GJ Primary energy sourceFuel 20202030204020502020203020402050 Oil LSHFO81111118111111 Biomass Bio-diesel2224272925497498 Biomass Bio-methanolwood2325273024487296 Biomass Bio-methanolwastestream1921232520406181 Substitution price for biofuels 9192633 Renewable electricity E-diesel1301149983208182156130 Renewable electricity E-methanol8473635213611810183 Renewable electricity E-LNG69605142113988469 Renewable electricity E-ammonia5547393096826855 Renewable electricity E-hydrogen5244362892796552 Natural gas NG-ammonia2826242346434038 Natural gas NG-hydrogen2523211944403734 Source: Lloyd’s Register & UMAS (2020). Thispricedifferenceistheresultoftheinherentlyhigherpriceofnew zero-emissionfuelalternativesincomparisontoestablishedfossilfuels. Beingwidelyusedandwell-established,fossilfuelshavelimitednew capitalinvestmentcosts,andrelativelysmallresearchanddevelopment (R&D)costs. Fig. 6. Carbon price trajectories based on the degree of revenue recycling 3002001000 050100150 2020 2025 2030 2035 2040 2045 2050 Emissions (tonnes CO2) Carbon Price (US$/tonne CO2) 3002001000 050100150 2020 2025 2030 Year Year 2035 2040 2045 2050 2020 2025 2030 2035 2040 2045 2050 2020 2025 2030 2035 2040 2045 2050 Percentage of revenue recycling 0%100%Carbon price range Carbon price range Carbon price (US$/tonne CO2) 300500450400350250200150100500 Percentage of revenue recycling 0%100% Carbon price (US$/tonne CO2) 300500450400350250200150100500

produc tion plants.

operated vessels.

(compared to 2008); zero operational shipping GHG emissions globally by 2070.

“The language in the Initial GHG Strategy […] was a hard-fought political compromise that does not specify how the principles should be interpreted or operationalised,” Closing the Gap reads. While it prescribes a socio-economic analysis of climate policy ahead of implementation, it doesn’t specify how such impacts, especially disproportionate ones, could be addressed.

Based on Scenario E which has a target of 50% 2050

operational shipping GHG emissions

carbon price,

absolute reduction in operational shipping GHG emissions globally by

SUSTAINABILITY 50 | Baltic Transport Journal | 2/2022 200180160140120100806040200 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 200180160140120100806040200 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 US$Billions US$Billions MaximumMinimum MaximumMinimum Based on Scenario E which has a target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. Based on Scenario D which has a target of zero operational shipping GHG emissions globally by 2050 Year Year Fig. 7. Future revenue range from carbon price based on the degree of revenue recycling Fig. 8. Total investment needs compared to total revenues that could be generated SCENARIO E SCENARIO D Target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. Target of zero operational shipping GHG emissions globally by 2050. 0.82.01.81.61.41.21.00.60.40.20 2.0 TrillionUS$TrillionUS$ 0.81.81.61.41.21.00.60.40.20 supply infrastructure onboard ship 85% 85.5% 87.5% produced with SMR + CSS produced with a mix of SMR + CSS electrolysisand producedelectrolysiswith produced with SMR + CSS produced with a mix of SMR + CSS electrolysisand producedelectrolysiswith 88% 89% 89%

3.02.52.01.51.00.50 BASED ON SCENARIO E which has a target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. BASED ON SCENARIO E which has a target of zero operational shipping GHG emissions globally by 2050. High estimateLow estimate Minimum Maximum Investment needs Revenues Investment needs Revenues US$TrillionsUS$Trillions RangeRange3.02.52.01.51.00.50 3.02.52.01.51.00.50 BASED ON SCENARIO E which has a target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. BASED ON SCENARIO E which has a target of zero operational shipping GHG emissions globally by

High estimateLow estimate Minimum Maximum Investment needs Revenues Investment needs Revenues US$TrillionsUS$Trillions RangeRange Fig. 9. Total investments needed to decarbonise shipping 3.02.52.01.51.00.50 3.02.52.01.51.00.50

3.02.52.01.51.00.50 2050.

emissions

operational

emissions

BASED ON SCENARIO E which has a target of zero shipping GHG

BASED ON SCENARIO E which has a target of 50% GHG globally 2050 to 2008); zero shipping GHG globally by 2070.

operational

emissions globally by 2050. High estimateLow estimate Minimum Maximum Investment needs Revenues Investment needs Revenues US$TrillionsUS$Trillions RangeRange3.02.52.01.51.00.50 3.02.52.01.51.00.50 BASED ON SCENARIO E which has a target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. BASED ON SCENARIO E which has a target of zero operational shipping GHG emissions globally by 2050. High estimateLow estimate Minimum Maximum Investment needs Revenues Investment needs Revenues US$TrillionsUS$Trillions RangeRange SCENARIO E SCENARIO D Target of 50% absolute reduction in operational shipping GHG emissions globally by 2050 (compared to 2008); zero operational shipping GHG emissions globally by 2070. Target of zero operational shipping GHG emissions globally by 2050. 0.82.01.81.61.41.21.00.60.40.20 2.0 TrillionUS$TrillionUS$ 0.81.81.61.41.21.00.60.40.20 supply infrastructure onboard ship 85% 85.5% 87.5% produced with SMR + CSS produced with a mix of SMR + CSS electrolysisand producedelectrolysiswith produced with SMR + CSS produced with a mix of SMR + CSS electrolysisand producedelectrolysiswith 88% 89% 89%

absolute reduction in operational shipping

(compared

Such a situation was the fate of the European Union’s ETS in the wake of multiple 21st crises, prompting the block to slim down its ETS to ramp up the prices. The current proposal of the European Commission is to increase the EU ETS reduction target for 2030 to -61% (vs 2005). This move would increase the prices to €90-130/tCO2 in 2030, sharply contrasting with the below €10 prices seen in 2011-2017. Since the EU intends to make shipping part of its ETS, shipowners and operators have at least a more or less informed insight into what it will mean to serve the Fit for 55-EU market cost-wise.

“A feebate mechanism offers added value by providing incentives for continuous improvement in carbon intensity, invest ment in zero-emission fuels and technolo gies and more efficient operations, thereby stimulating innovation and reducing emis sions,” UMAS observes. Still, they caution, a feebate scheme is as good as the accuracy of the set benchmark. It may also make it exceptionally difficult for companies whose fleets are red-flagged, as they will have to pay the penalties whilst scrambling to renew their tonnage to start receiving feebates. Then again, a feebate system would be largely passive in management. Revenues would be directly recycled, evading a redis tribution system, thus lowering the admin istrative expenses gnawing at the fund.

Photos: Canva

Emission trading system(s) In a sense, an emission trading system (ETS) is the opposite of carbon pricing. The regulator regiments an overall emis sion target, leaving the topic of sorting out the goal-hitting carbon price to the market.There are different ETS set-ups, but UMAS argues that the cap-and-trade (CAT) one is more probable in achieving the targeted outcome. Under a CAT ETS, an upper limit on GHG-E is set while allowances are traded (some might be distributed for free, e.g., to ease the ini tial collision). Those better performing can earn extra money, whereas others continue to operate (and pollute) as long as they can afford to buy another CO 2 tonne.However, the authors of Closing the Gap note that a CAT ETS has certain draw backs. First, it doesn’t incentivise compa nies to surpass the system’s targets. Second, the price volatility of carbon allowances doesn’t add to daily business nor longerterm investment certainty. If the set-up’s design fails, market prices can rapidly fall due to global shocks. In this instance, com panies are discouraged from making green investments because the market promotes the contrary – burning fossil fuels.

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Feebates

A feebate system is when an emission or carbon intensity benchmark is put in place, adjustable to keep track of the changes. The demarcation line separates those underper forming, who incur a fee, from those going beyond the minimum, hence awarded.

Product standards

The United Nations’ definition of an envi ronmental subsidy is “current or capital trans fer that is intended to support activities which protect the environment or reduce the use and extraction of natural resources.” Consequently, subsidies decrease the price of zero-emission fuels rather than increase the cost of fossil fuels. UMAS brings forth three types of subsi dies that can help decarbonise shipping. First, fuel subsidies – cash handouts or tax breaks per unit of fuel or GHG-E reduction. Second, production subsidies – allocated to lower fuel production costs, set up the bunkering infra structure, and construct zero-emission ves sels. Third, R&D subsidies – supporting tech nological breakthroughs that lower the cost of zero-emission fuels (e.g., more efficient and cheaper electrolysers and storage). These are, authors of Closing the Gap say, “[…] examples of policy options which promote and support the production of alternative zero-emission fuels. As such, they complement demandside policy, […] carbon pricing or commandand-control measures. Combining both demand- and supply-side policies is viewed as a more effective mix than stimulating only one side of an energy transition.” Subsidies have their own set of challenges. They may go against state aid rules, which from a combating climate change perspective is an argument against prohibiting state support and an exit point from the profit-over-environment/ ethics system. Subsidisation can also turn into winner-picking, which runs the risk of betting on the wrong horse. This uncertainty can be circumvented by basing the decision on the best scientific understanding (or aggravated by let ting petty political and corporate interests take precedence over environmental care).

These define the characteristics of a given product, fuels among others, either banning the use of those that fall out the parame ters or labelling them so that clients (ship owners and operators) and their customers (shippers, freight forwarders) can make an informed decision when determining what product or service to buy. Emission Control Areas (ECA) are prob ably the most widely known applications of product standards insofar as they man date the use of compliant fuels for lowering “They could have a positive effect on RD&D and stimulate the uptake of alternative fuels in a similar way to carbon pricing. By mandating certain outcomes, they can also bypass some of the market barriers and failures and guide investments in a way that avoids locking in infrastructural choices and stranding of assets,” says UMAS.

Called command-and-control meas ures, they set standards that directly aim at decreasing ship emissions, therefore indi rectly making fossil fuels more expensive.

Speaking of discrimination: according to research outlined in Fossil Fuel Welfare versus the Climate, annual fossil fuel subsidies amass to $2.9tr – and over $5.0tr by adding the externalities. In contrast, IEA calculates that $1.71tr/year in clean energy and energy efficiency is needed by 2035 to nail the 1.5°C goal (the UN’s Intergovernmental Panel on Climate Change sets the figure at $2.38tr/year in 2016-2035 – still lower than what fossil fuel companies get; compare that to annual climate finance flows in 2017-2018 averaging at $574b).

Author of the cited report, Alex Lenferna from 350.org (one of the few global eco-NGOs not hijacked by Big Oil & Gas), sounds the alarm, “[…] if we reinvested that fossil fuel welfare into social and ecological welfare, we could create a much more socially and ecologically prosperous future.” UMAS adds, “While sub sidies alone are unlikely to decarbonise the shipping industry, they could play an impor tant role in closing the competitiveness gap by lowering the prices of zero-emission tech nologies and fuels and stimulating RD&D and innovation. They could also be designed to support an equitable transition […].”

In the end, it seems, the discussion shouldn’t centre around ideological deadend chop logic whether subsidies are bad or good per se – but to what end they are used. To decarbonise shipping in particular, and the world in general, green subsidies should go in, while the dirty ones– out the window. Subsidies

These, in contrast, do determine which solutions are applied – without setting the overall outcome. “With regards to decarbon ising shipping, technology standards could, for example, mandate the use of wind propul sion technology, set mandatory speed limits, and phase out or ban the use of fossil fuels altogether,” reads Closing the Gap. Implementing technology standards across the board can stumble over a vari ety of obstacles. While specific solutions are already mature enough, think wind assistance, it might take significant time before supply meets demand (including shipyards’ capacity to install rotors or sails on both newbuilds and retrofits). At the same time, a uniform speed limit may be beneficial for this-and-that route or vessel but backfire when applied to others.

Performance / emission standards

Direct regulatory approaches

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These lay down mandatory performance targets by capping certain activities’ maxi mum allowable GHG-E or carbon intensity. However, it is done without setting in stone the specific technologies and techniques of achieving the end. There are some already in place or just around the corner regulations. These include the Energy Efficiency Design Index (EEDI: a CO2 intensity metric which considers a ship’s total emissions, at the design stage, relative to the transport work done by the vessel result ing in grams of CO2 per tonne nautical mile); the Energy Efficiency Existing Ship Index (EEXI: which will apply technical efficiency stand ards to the existing fleet); and Carbon Intensity Indicator (CII: requiring ships to achieve a spec ified annual operational carbon intensity). Taken alone, UMAS remarks, “[…] the stringency levels of these standards are currently too low to lead to significant emis sions reductions and, by themselves, will not cause the sector to even meet the IMO’s minimum level of ambition.” While there is a relatively high certainty that performance standards will achieve their goals, it is out side their scope to decrease absolute GHG-E. More shipping activity by better performing vessels, hence cheaper operation-wise, will nevertheless increase emissions.

Technology standards

As things stand today, there are two GHG-E information-gathering systems.

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First, the IMO Data Collection System (DCS) for ship fuel oil consumption (although its data sets are confidential). Second, the EU Monitoring, Reporting and Verifying Regulation (EU MRV) collects data on CO2 emissions from maritime transport, which are then available under the Regulation. Closing the Gap reads that “[…] despite their important role in alleviating market failures, available evidence – both in- and outside the maritime sector – suggests that the actual impact of information policies in terms of emissions reductions is small. Therefore, information programmes are best suited to be a complementary instru ment to enhance the effectiveness of other policy measures aimed at driving shipping’s decarbonisation.” In other words, GHG-E data fit best for sharing knowledge and best practices – towards creating well-informed regulations and making sure runner-ups, often less developed players, pick the opti mal solutions. Ideally, with equitable transi tion in mind, best practices should be dis tributed in an open-source way.

Information programmes (governance-by-disclosure / information-based governance)

sulphur and nitrogen oxides. Enforcement is another issue, as some may decide to cheat, hoping to slip under the radar given the authorities’ lack of capacity to check all traf fic within an ECA. Heading towards shipping decarboni sation, UMAS considers that “[…] prod uct standards could, for example, specify the maximum (lifecycle) carbon content of marine fuels used and set sustainability standards for marine fuels (e.g. biofuels).” Blending could act as a transitional solu tion, used already today when the ques tionable CO2 lowering benefit of liquefied natural gas (LNG) is patched up by adding bioLNG (whose GHG credentials can also be controversial, especially if manure is the base source, as animal agriculture is one of the leading polluters; refuse can be used for producing bioLNG, too, though this is the function of rampant consumption and food wastage; the question is whether we turn waste into resource or don’t litter in the first Authorsplace).of Closing the Gap speak in favour of direct regulatory approaches as they have proven effective and “[…] can be less cost-intensive to develop for the regulatory body because their design is relatively simple compared to MBMs.” On the other hand, performance, technology, and product standards don’t generate rev enue for recycling, which could be used to speed things up and aid a just transition. Regulations are also prone to political push ing and shoving. It means that less affluent countries might get exemptions because they cannot afford to comply at the same pace as advanced economies. However, doing so could aggravate their situation, as older and dirtier non-compliant-otherwise fleets would be forced to serve their supply chains.

These are all about transparency – in the case of shipping decarbonisation, of the costs & benefits of different options. UMAS notes, “Indeed, there has been a significant rise in focus on carbon dis closures in annual reports and ethical investing in general. This points to a need for greater information disclosure in any decarbonisation measures.”

Sustainable Shipping Initiative 2010 A multi-stakeholder collective driving change through cross-sectoral collaboration to create a more sustainable maritime industry.

These are actions undertaken by any party interested in greening the shipping industry meant to go beyond the regulatory minimum. While alone they likely won’t decarbonise the shipping sector, they are an essential driver of R&D (e.g., invest ments in pioneering low- or zero-emission tonnage) and demand (e.g., when cargo owners decide to use eco-friendly logistics chainsSinceonly).itismostly large players with sig nificant PR outreach that embark upon voluntary measures, they can raise aware ness throughout the industry (and who knows, maybe catch the public eye, too) and encourage others to follow suit. Information sharing is crucial as well, since other play ers might feel compelled to invest in a given solution as it benefits their competitors. Yet, publicity is one thing; hard data is another. UMAS cautions in this regard, “[…] numerous studies have been criti cal of the role of voluntary/private initia tives in the past. […] of 23 voluntary pro grammes across 18 countries […] many of the programmes did not meet their target for emissions reductions, and only volun tary programmes which were tied to future regulations were generally successful in meeting their goals.” As Naomi Klein points out in the chap ter No messiahs: the green billionaires won’t save us of her book This Changes Everything: Capitalism vs. the Climate , fighting climate change cannot be left to those who have made profits on exacer bating the problem and who might feel motivated to drive future earnings out of ‘disaster capitalism.’ Over-the-top declara tions of the Bransons and Gates, coupled with underperformance of the Obamas of this world, should be taken with a pinch of salt. Better sceptical than sorry. Then again, as reported in the previ ous issue when rounding up the Baltic transport highlights of 2021, there is this organic, bottom-up movement that blazes the trail.

Cargo Owners Zero Emission Vessel Initiative 2020 Under this initiative, shippers/buyers make commitments to provide a specific volume of freight to zero-emission vessel(s) and have set a target for exclusively buying zero-emission maritime freight by 2040. Shippers/buyers will also track their maritime emissions to check alignment with their goals.

Environmental Ship Index 2011 Identifies seagoing ships that perform better in reducing air emissions than required by the current emission standards of the IMO.

Clean Cargo 2002 Focused on improving environmental performance in marine container transport using standardised tools for measurement, evaluation, and reporting.

These are divided into ship- and landside actions. The former target the decar bonisation of both international and domes tic shipping, plus inland navigation and fisheries. The latter focuses on investing in the production and supply of zero-emission marine fuels, following money put into pro ducing renewable energy. To stimulate lowering domestic ship ping’s GHG-E, the IMO has urged its Member States to develop and update a voluntary National Action Plan. Yet, this has been met with limited success (Closing the Gap mentions that only India, Japan, the Marshall Islands, Norway, and the UK have submitted their Notwithstanding,plans).several countries and organisations are at the forefront of implementing their own measures.

2020 An international organisation working to mobilise the $100tr bond market for climate change solutions by promoting investments in projects and assets necessary for a rapid transition to a low-carbon and climate-resilient economy. The Shipping Criteria provide a definition for evaluating whether a shipping project contributes to climate change mitigation.

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Norway, for starters, wants to reduce its domestic shipping and fisheries’ GHG-E by half by 2030. In four years, the coun try’s fjords will become zero-emission areas (covering not only GHG-E but also other air pollutants). Norway is also known for making strides in hybrid and battery-powered shipping. The UK has tabled the Clean Maritime Plan, which includes encouraging the uptake of low-carbon fuels and supporting green innovation (including zero-emission propulsion technologies). The 2021 United Nations Climate Change Conference in Glasgow also saw the emergence of the Clydebank Declaration. In it, governments plan to establish ‘green corridors:’ maritime routes decarbonised from end to end, seaand land-wise. Germany has its National Hydrogen Strategy, including works on hydrogen as a marine fuel. There is also the Pacific Blue Shipping Partnership, a multicountry initiative for a large-scale blended finance investment to facilitate Pacific island countries’ transition to zero-carbon domes tic shipping by mid-century (with a 40% reduction by 2030). The EU, apart from including shipping in its ETS, is also working on the FuelEU Maritime Regulation. It aims at stimulating the uptake of sustainable maritime fuels and zero-emission technologies. The FuelEU Maritime Regulation wants to introduce a goal-based fuel GHG-E intensity target, increasing its stringency over time, thus requiring operators to reduce the carbon footprint of the energy used onboard ships calling at EU ports. In addition, the block National & regional policy measures

Sea Cargo Charter 2020 Addressing charterers, this initiative provides a global framework for aligning chartering activities with responsible environmental behaviour to drive international shipping’s decarbonisation.

Tab. 1. Examples of voluntary initiatives in the maritime sector Name Date establishmentof Overview

Science Based Targets Initiative Yet to be launched Aims to drive ambitious climate action in the private sector by enabling companies to set science-based emission reduction targets. It is a partnership between the Carbon Disclosure Project, the United Nations Global Compact, the World Resources Institute, and the World Wide Fund for Nature.

Poseidon Principles 2019 This initiative is aimed at financiers and provides a framework for integrating climate considerations into lending decisions to promote international shipping’s decarbonisation.

Voluntary measures

Climate CriteriaInitiative:BondsShipping

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This article’s main body was ready ahead of the Kremlin’s aggression on Ukraine. In a manner of just days, the world took a U-turn, and it seems that there is no turn ing back to pre-24 February 2022 times. It remains to be seen what will be the war’s impact on combating climate change. Perhaps the EU will catch the wave and tran sition towards a zero-emission economy faster to sever its ties with Russia’s oil & gas. It may, however, lead to importing more shale gas from the US, extraction of which causes higher GHG-E than when using traditional methods and pollutes the areas in the drill shafts’ vicinity. It might also lessen the restrictions on fracking in Europe. Taking in crude oil from Canadian tar sands will have an even more catastrophic effect on the environment at large. One also gets the impression that the analysis laid forth in Closing the Gap includes an unspoken assumption, namely that global trade will more or less continue to function in the foreseeable future as it does today. After all, as the late Mark Fisher wrote in his Capitalist Realism: Is There No Alternative?: it is easier to imagine the crack of doom than the end of capitalism. In his disturbing yet razor-sharp essays, Fisher surfaces the dominating system’s capacity to devour initiatives seemingly at odds with it, e.g., consumers can save the environment – they ‘just’ need to make the right buys. For instance, capitalism is inherently unable to raise the question of the justness of owning a car. Rather, it lures into changing your old vehicle for a new one – this time hybrid or electric. Such “rem edies,” however, cannot patch the system’s internal failure – that infinite growth is impossible when there are finite resources (in addition, redistributed upwards). It results in “glitches,” capitalism’s external ities that remind us that the larger system, Earth, has its arsenal of countermeasures of restoring balance. As capitalism feeds on societies, there are internal glitches, too, the rising prevalence of mental illnesses, loneli ness, and feeling out of place and needless, particularly scrutinised by Fisher. Cynism or hipster irony, he adds, also became part of capitalism’s toolbox – attitudes that sabo tage the will to act. Is it possible to imagine, maybe not capitalism’s fall, but less trade, although still with increasingly greener fleets? Fewer purchases, sourced locally and of higher durability? Handicraft over factory pro duction? More refurbishment instead of wastage? Essentially, a new strenuous age that builds character and ensures an equi table future for the generations to come, say nothing of the environment, in place of instant gratification-consumerism? There are, it appears, two conflicting meanings to the saying “less is more.” Less is more? wants to advance cold ironing, mandat ing that vessels berthing at EU quays draw energy from the shore (from 2030). The main bone of contention with FuelEU Maritime is whether LNG fits the sustainable fuel definition while regarding onshore power supply – if the supplied electricity comes from renewable sources. Authors of Closing the Gap summarise this thread by saying, “[…] these national and regional approaches may assist in the development of the market for zero-emission fuels. In stimulating demand for these fuels on a smaller scale, the development and production of zero-emission fuels can be initially shielded from the market pressures and barriers of the wider industry before supply is scaled up over time.”

The ultimate switch by Delphine Gozillon, Shipping Officer, Transport & Environment (T&E)

First, the FuelEU Maritime proposal has limited ambition in the first 15 years of its application. Half the fuel GHG intensity improvements will occur under normal market conditions and/or due to shore-side

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Making the switch from dirty to clean shipping fuels will be an uphill battle. It hasn’t started yet as the sector is still 99% reliant on fossil fuels and is responsible for about 3% of global anthropogenic emissions. But the clock is ticking; shipping is expected to contribute to the European Union’s goal of climate neutrality by 2050. Among the 14 legislative proposals of the Fitfor55 climate package discussed by policymakers, one has the potential to finally drive the uptake of sustainable marine fuels finally. But the draft law proposed by the European Commission (COM) risks the industry switching to another fossil fuel, shows one of our recent studies . The European Parliament and the EU Member States can fill the pitfalls by making crucial changes in the next few months.

Recommendations for adjusting the FuelEU Maritime to

As a result, fossil liquefied natural gas (LNG)-powered vessels with 2-stroke high-pressure dual-fuel engines comply with the GHG intensity target until 2039. They could even extend their compli ance at no cost as far as 2046, with no need to even blend in bioLNG due to the possibility to indefinitely bank the compliance surpluses in the early years of implementation. This scenario would accelerate the uptake of fossil LNG in the European shipping fuel mix: from today’s 6% to 23% by 2030 (Fig. 2). Ultimately, the currently proposed ‘technology-neutral’ design favours fossil lower-carbon fuels over truly sustainable options. Dirtier ships, cold houses? Why is driving LNG in shipping a prob lem at all? Controversy is growing over the use of it as a marine fuel and its alleged environmental benefits. In a 2021 report, drive true decarbonisation of shipping

Technology-neutral – ostensibly While adopting a life-cycle approach and accounting for all GHGes is undeniably an improvement compared to the existing legislations of the International Maritime Organization (IMO), a deeper analysis of the proposal raises serious concerns about the effects of a ‘technology-neutral’ target if introduced with no safeguards.

n July 2021, COM proposed the firstever legislative initiative requiring ships to progressively switch to alter native marine fuels. It has a unique design: a goal-based greenhouse gas (GHG) intensity target, the stringency of which increases every five years, requiring ship operators to reduce the carbon footprint of the energy used onboard vessels. The target is expressed in Well-to-Wake (WTW) CO2 equivalent terms to account for all the lifecycle GHG emissions (CO2 , CH4, and N2O) of the different fuels and engine technolo gies. Figure 1 shows how GHG intensive fuels progressively cease to comply with the proposed GHG targets (expressed as thresholds of gCO2e/MJ of energy used).

Further,electrification.requiringonly 13% fuel GHG improvements by 2039 as proposed by the draft law leaves the remaining 87% of the effort to the ensuing ten years if shipping is to decarbonise by 2050, as called for by the EU Climate Law, the block and its Member States’ declarations at the 2021 United Nations Climate Change Conference in Glasgow (COP26) and within IMO. This decarbonisation trajectory would be unre alistic for any sector.

the World Bank explicitly called on regu lators to avoid any policy support to LNG in the maritime sector, including labelled as a so-called transitional fuel, due to the risk of stranded assets it creates. Many other studies show that LNG has marginal GHG benefits over existing marine fuels. Moreover, depending on the engine, LNG can even have a worse climate impact than the bunker it is supposed to replace. Secondly, incentivising demand for LNG use in shipping is a danger to the climate. It can put energy security at risk, as Europe is urgently trying to diversify its gas supplies. Increasing volumes of LNG shipped as cargo is different from driv ing demand for LNG as a fuel to power ships. The former contributes to energy security, whereas the latter undermines it.

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Today, LNG is crucially needed for replac ing gas supplies from Russia and ensuring European homes are heated next winter and the following years. In the light of this new context, driving further demand for LNG in a sector that did not rely on it would be playing with fire. Policymakers must seriously reconsider this. Although there is no simple solution to limit the excessive growth of fossil LNG under the current design, stricter GHG tar gets would undoubtedly help set the com pass to zero-emission shipping by 2050.

Source for all figures and Tab. 1: Transport & Environment

Fig. 2. The COM’s proposal would drive huge quantities of fossil LNG and biofuels

Fig. 1. Well-to-wake carbon intensity of marine fuels (FuelEU Maritime proposal)

Target year Business as usual (BAU) reduction BaU reduction + effect of onshore power supply mandate COM’s proposal T&E’s recommendation 2020 91.7 gCO2e/MJ

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2035

Incentives for hydrogen-based energy car riers would ensure a minimum switch to truly sustainable fuels in this decade. Pay-to-comply Decisions being taken now by EU poli cymakers will reverberate throughout the next decade. Waiting for the sector to ‘choose’ the right fuel is no option if shipping is to become decarbonised by 2050. By the time of the next review, the window of opportunity to launch neces sary investments runs the risk of closing. There has probably never been a better moment for the shipping industry to invest in sustainable fuels and technolo gies. The prices of fossil fuels are skyrock eting, which should push companies to shift away from fossil. At the same time, shipping revenues climbed to record high levels in 2021 due to post-Covid demand. Yet, there was no boom of investments in e-fuels: renewable fuels produced from green hydrogen that deliver deep and long-lasting emission reductions. Many barriers stand in the way of e-fuel devel opment in shipping. They will struggle to find their way into the sector without dedicated requirements and incentives to support their uptake. The FuelEU Maritime proposal lacks the appropriate tools and even disin centivises their use. Compliance with the GHG target can be achieved with much cheaper fossil fuels despite their limited GHG savings – or with biofuels that are immediately available off the shelf but are not scalable for the entire industry. Furthermore, companies can be exempted from compliance with the GHG intensity targets against a simple pen alty payment. Paying annual fees might be cheaper for shipowners than making real investments in zero-emission vessels – and much less risky. This pay-to-comply mechanism should be removed, or at least limited in time, especially since underperforming ships can use flexibilities (i.e. “pooling compliance”) before paying the fine. Raising the level of the pen alty would also help reduce the risk of non-compliance. The best chance The FuelEU Maritime must mandate a clear pathway to zero-emission shipping by 2050. Advancing the GHG targets’ ambition by five years would have the advantage of starting the necessary fuel switch from the entry into force of the first target while setting a progressive and realistic trajectory for European shipping to achieve zero-emission by mid-century. Overall, it would increase GHG emission savings by 478mt CO 2e over the 2025-2050 period, compared to the COM’s proposal (Tab.The1).EU’s best chance to set ship ping on track to decarbonisation is likely to target a minimum percentage of green e-fuels. This solution has been the approach of the Renewable Energy Directive for years, and the EU’s aviation Tab. 1. T&E’s recommendations for revising FuelEU Maritime’s GHG target levels

gCO2e/MJ) 2040 (87.9-4.2%gCO2e/MJ) (86.4-5.8%gCO2e/MJ)

2025 (91.4-0.4%gCO2e/MJ) (90.9-0.9%gCO2e/MJ) (89.9-2% CO2e/MJ) (86.2-6% gCO2e/MJ) (90.6-1.2% gCO2e/MJ) (89.0-2.9%gCO2e/MJ) 86.2-6% gCO2e/MJ) (79.8-13% gCO2e/MJ) (89.4-2.6%gCO2e/MJ) (87.8-4.3%gCO2e/MJ) (79.8-13% gCO2e/MJ) (67.9-26% (67.9-26%

2030

gCO2e/MJ) (37.6-59%gCO2e/MJ) 2045 (86.9-5.4%gCO2e/MJ) (85.4-6.9%gCO2e/MJ) (37.6-59%gCO2e/MJ) (22.9-75% gCO2e/MJ) 2050 (86.5-5.8%gCO2e/MJ) (85.0-7.3% gCO2e/MJ) (22.9-75% gCO2e/MJ) (0-100%gCO2e/MJ) Fig. 3. E-fuel uptake pathway for the EU1 1 T&E analysis which uses e-ammonia as a “placeholder” for calculations. This does not prejudge other e-fuels uptake by ships. Analysis assumes no regulatory-driven energy efficiency gains by the sector until 2050 and full shore-side electricity use by all vessels at berth. Energy density of e-ammonia: 18.6MJ/kg. e -fuel supply/demand balanced 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 1,0001,2001,4001,6008006004002000-fueleinEUshipping(PJ) by6%2030

Created over 30 years ago, the Transport & Environment (T&E) NGO has shaped some of Europe’s most important environmental laws: we got the EU to set the world’s most ambitious CO2 standards for cars and trucks; campaigned successfully to end palm oil diesel, secure a global ban on dirty shipping fuels, create the world’s biggest carbon market for aviation, and make Uber commit to electrifying much of its European operations; we’ve also helped uncover the Dieselgate scandal. Head to www.transportenvironment.org to discover our vision of an affordable zero-emission mobility system with a minimal impact on our health, climate, and the environment.

Looking for the summer When it comes to decarbonisa tion challenges, including the cost and availability of sustainable fuels, ship ping probably stands today where the road transport sector was some years ago. Electric cars were emerging on the market, say nothing of their limited use as finding a charging point was like look ing for a needle in a haystack. The game changed when European CO 2 standards for car manufacturers were introduced in 2020. All of a sudden, electric cars started conquering Europe’s roads. Early movers such as Tesla reaped the bene fits thanks to a multiplier and a pooling system while driving the whole sector towards electricity. For such a switch to happen in ship ping, FuelEU Maritime will have to be fixed and target the ultimate fuels. The EU Member States are already discuss ing this, intending to take a position on 2 June 2022. September will likely bring a vote to the EU Parliament.

Fig. 4. Combined e-fuel incentives and stricter targets could drive modest e-fuel uptake with reduced compliance costs in 2020

fuel initiative proposed in the same cli mate package as the FuelEU Maritime also targets a minimum share of e-kero sene in the mix. For shipping, T&E recommends a man date of 6% of the energy demand used by ships by 2030. Volume-wise, this would represent 85PJ of e-fuels under the pro posed geographical scope of the FuelEU Maritime, which the sector could absorb with natural tonnage renewal. According to its 2020 Hydrogen Strategy, the EU already plans to produce 10mt of green hydrogen by 2030. If a 6% e-fuel mandate was introduced, the shipping industry would need just 20% of Europe’s domes tic production. It sounds reasonable for a sector identified in the EU Hydrogen Strategy as hard to decarbonise. Setting an e-fuel mandate would not prejudge the propulsion technology ships should be using. E-fuels are typi cally produced from renewable hydrogen, and multiple derivatives exist beyond the direct use of e-hydrogen: e-ammonia, e-methanol, but also e-diesel or e-meth ane. In other words, the mandate would respect the principle of technological neutrality at the heart of the FuelEU Maritime regulation while promoting in the mix genuinely sustainable fuels. It would apply in parallel with the GHG intensity targets and be met by ships thanks to using the compliance pooling system at the fleet level. Last but not least, companies investing in e-fuels should be generously rewarded whenever they overachieve the minimum 6% target. This is where incentives come in, such as applying a multiplier. Should policymakers choose to introduce one on e-fuels – as recommended by the COM’s impact assessment – any GHG saving unit from e-fuels use would be counted several times. T&E recommends a multiplier of five, whereby e-fuels would become about five times cheaper when complying with the GHG targets. To further boost their cost-competi tiveness, only vessels running on e-fuels should benefit from banking and pool ing their compliance surplus with other companies instead of any fuel type in the draft legislation. This approach would allow progressive companies to imme diately deploy zero life-cycle e-fuels and lend/sell their surplus credits to other vessels/companies.Multiplierand pooling incentives can help e-fuels catch up with other alternatives, such as biofuels. They could even make overall compliance costs cheaper than the current COM’s pro posal if GHG targets get stricter (Fig. 4).

SUSTAINABILITY 2/2022 | Baltic Transport Journal | 59

60 | Baltic Transport Journal | 2/2022 The EU’s proposal on waste shipments can level the playing field for South Asian ship recycling yards

A significant step forward by Steve Marshall

Sea Sentinels’ Chief Exec also observes, “Furthermore, there is a lack of capacity for recycling of larger ocean-going ships at yards on the EU-approved list, so it is imperative that South Asian yards continue

Danish Shipping’s Executive Director for Climate, Environment and Security, Maria Skipper Schwenn, has characterised the present situation as “a legal mess creat ing obstacles to progress on sustainability in this industry.” Given the lack of global regulation, the situation is pressing as the International Maritime Organization’s Hong Kong Convention (HKC) on safe and environmentally sound ship recycling has still not entered into force.

Countering this trend, the Singaporebased Sea Sentinels has taken responsibility for supervising many successful sustainable ship recycling projects in South Asian and other yards that have ensured safe disposal of hazardous waste in documented compli ance with regulations. The consultancy’s Chief Executive Rakesh Bhargava believes the EU’s pro posed amendment to the WSR would, if approved, represent “a significant step for ward” as it would strongly incentivise con tinued improvements at these yards to gain EUSRR compliance. The proposal would impose stricter rules on hazardous waste exports to non-OECD countries to assure that facilities receiving this waste have been audited and can manage it sustainably.

S hips sold for recycling at the end of their lifetime contain danger ous substances such as asbestos and mercury. They also hold toxic chemicals like oil, fuel, and ballast water that constitute a risk to human health and the environment if they are not managed and disposed of properly. Exports of hazardous waste to nonOECD countries in EU-flagged ships sent for recycling are banned under the Basel Convention on transboundary shipments of such waste. The ban is transposed into the EU Ship Recycling Regulation (EUSRR) that requires ships to be recycled at EU-compliant yards on an approved list. But this has not prevented some ship owners from circumventing the so-called Basel Ban by selling ships to cash buyers who then rename these vessels and switch them to flags of convenience.

Assuming responsibility By using cash buyers as middlemen, ship owners can obtain higher steel prices for scrap tonnage while theoretically avoid ing legal, financial, and other risks when selling their old vessels for dismantling. It means that formerly EU-flagged ships end up at yards not listed as EU-approved. Once there, they may be dismantled in a manner that poses the risk of toxic spills and other types of pollution to coastal ecosystems, say nothing of the health hazards to workers.

Legal clarity

Bhargava says: “The EU proposal would bring much-needed legal clarity to what has been a long-standing murky issue on the export of hazardous waste to ship-breaking yards in non-OECD countries.” He furthers, “A number of non-OECD yards, especially in Alang, India, have made significant progress towards EU compliance by upgrading their facilities in line with the required health, safety and environmental stand ards. It is important that these are able to compete on a level playing field with European yards given that around 70% of ship tonnage recycled worldwide is already dismantled at South Asian yards.”

The sustainable ship recycling consultancy, Sea Sentinels, believes the proposed changes to the EU’s Waste Shipment Regulation (WSR) will bring “legal clarity” on hazardous waste exports that will benefit South Asian ship-breaking yards seeking compliance with EU recycling standards.

Obstacles to progress Importantly, this amendment distin guishes between EU-flagged ships on which the decision to recycle is taken in- or outside EU territory – basically allowing for those sold for scrap outside the bloc to be recycled at non-OECD facilities provided they are on the list of EU-compliant yards. EU policymakers are now set to discuss the proposal over the next few months, with a vote due by year-end on the WSR amend ment that would also result in changes to waste shipment rules under the EUSRR if ratified. The European Community Shipowners’ Association (ECSA) is lob bying strongly in favour of the amend ment. The organisation believes it would resolve a legal anomaly whereby nonOECD yards cannot receive EU-flagged ships for recycling – even if they are fully EU-compliant – due to the Basel Ban.

Broadening the focus According to Bhargava, on-site supervi sion and monitoring of the recycling pro cess by an independent third party with the requisite expertise are therefore essential to enforce regulatory requirements and ensure documented compliance for the shipowner, regardless of location.

SUSTAINABILITY 2/2022 | Baltic Transport Journal | 61 to have an incentive to gain compliance for inclusion on the list.” BIMCO’s SecretaryGeneral David Loosley backs up this opin ion, stating in a report on the EU list: “The capacity required for the large EU-flagged fleet simply isn’t there, which is espe cially evident when it comes to recycling Panamax-size and larger ships in accord ance with the EU regulation.” Only a fraction The current EU list of 41 recycling facil ities comprises mainly European yards. Most of them are constrained in terms of length and draft of the vessels they can handle and are primarily engaged in more profitable offshore/military decommission ing or repair and conversion work. Several Turkish yards on the list offer only lim ited additional capacity as they are busy with recycling non-EU-flagged cruise ships, according to BIMCO. In addition, the organisation says, “prices for steel at European yards are not competitive and commercially unviable.”

Photo: Sea Sentinels

“From an environmental perspective, a lot of the focus in shipping is currently on reducing greenhouse gas emissions from operating ships. But equally impor tant is the need to manage hazardous waste disposal for end-of-life vessels to prevent pollution to coastal waters and ecosystems,” Bhargava says. He concludes, “As well as posing a risk to the environment, irresponsible waste disposal practices can result in a reputa tional risk to the business of the shipowner. Therefore, having a sustainable ship recy cling policy with reliable, low-cost super vision and enforcement represents a com mercial advantage in the long run.”

The ECSA states in a position paper on the WSR proposal that yards on the EU list “cover only a fraction of the capacity needed to recycle all end-oflife EU-flagged vessels worldwide.” The Association is calling for the adoption of the amendment to promote progress in recycling in third countries, level up standards and improve working and envi ronmental conditions in these states –a key objective of the EUSRR – that could also lead to them ratifying the HKC. Considering the above, Bhargava says that, due to the lack of EU-compliant recycling capability, owners of larger EU-flagged vessels are often left with no alternative than to have these re-flagged so they can be sent to South Asian yards that have the required capacity.

Sea Sentinels provides supervision on the ground with an expert team monitoring every step of the recycling process to achieve compliance with both the EUSRR and HKC and a mandatory inventory of hazardous materials in line with the Basel Convention. As a result, the company boasts zero acci dents and no pollution on numerous sus tainable recycling projects carried out at yards in India and Turkey.

Sea Sentinels is a leading maritime consultancy incorporated in Singapore that empowers safe and sustainable ships and offshore assets recycling. The company provides a broad range of high-quality, reliable, and innovative services for the maritime industry, including expert supervision and documentation, inventories of hazardous materials, advisory and implementation services for safe lay-up of vessels and offshore units, and ship audits/inspections. Go to www.sea-sentinels.com to learn more.

On the other hand, less liquid goods went through the regional seaports’ jetties, down 1.8% yoy to 312.88mt (so a noticeable negative of 29.91mt behind general cargo). Most certainly, the figures for 2022 will be a completely different story, given the impact of the sanctions against Russia because of its aggression on Ukraine. The mythical one billion tonnes mark has once more hidden itself in the darkness of the future.

REPORT 2/2022 | Baltic Transport Journal | 63

Last year made breaking the region’s freight port traffic 900 million tonnes ceiling again possible – by a hefty 13mt. With 342.79mt (+8.8% year-on-year), the general cargo market explicitly dethroned liquid bulk as the Baltic’s leading trade. The turnover of dry bulk also rose, albeit by a modest 1.6% yoy to 257.26mt.

Baltic port market in 2021 by Marek Błuś

REPORT 64 | Baltic Transport Journal | 2/2022 Tab. 1. The Baltic Sea region’s ports’ cargo turnover in 2020-2021 (thousand tonnes)1 № Country 2021 2020 yoy Share 2021 Share 2020 Share 2021-share 2020 [pp] 1 Russia 258,580 241,481 +7.1% 28.32% 27.22% +1.10pp 2 Sweden 168,181 167,594 +0.4% 18.42% 18.89% -0.47pp 3 Finland 103,727 109,948 -5.7% 11.36% 12.40% -1.03pp 4 Poland 96,680 88,520 +9.2% 10.59% 9.98% +0.61pp 5 Denmark 94,255 91,271 +3.3% 10.32% 10.29% +0.03pp 6 Germany 60,626 54,052 +12.2% 6.64% 6.09% +0.55pp 7 Lithuania 49,751 51,529 -3.5% 5.45% 5.81% -0.36pp 8 Latvia 41,731 44,928 -7.1% 4.57% 5.07% -0.49pp 9 Estonia 39,404 37,688 +4.6% 4.32% 4.25% +0.07pp Total 912 ,935 887,011 +2 .9% 1 All tabs.: only Russian and German Baltic ports; all Danish ports Tab. 2. The Baltic Sea region’s ports’ general cargo turnover in 2020-2021 (thousand tonnes) № Country 2021 2020 yoy Share 2021 Share 2020 Share 2021-share 2020 [pp] 1 Sweden 83,652 78,979 +5.9% 24.40% 25.06% -0.66pp 2 Russia 48,850 46,162 +5.8% 14.25% 14.65% -0.40pp 3 Finland 44,207 43,713 +1.1% 12.90% 13.87% -0.98pp 4 Germany 43,297 37,446 +15.6% 12.63% 11.88% +0.75pp 5 Denmark 40,520 37,850 +7.1% 11.82% 12.01% -0.19pp 6 Poland 38,520 35,640 +8.1% 11.24% 11.31% -0.07pp 7 Estonia 17,984 12,015 +49.7% 5.25% 3.81% +1.43pp 8 Latvia 13,352 12,362 +8.0% 3.90% 3.92% -0.03pp 9 Lithuania 12,410 10,949 +13.3% 3.62% 3.47% +0.15pp Total 342,792 315,116 +8.8% General cargo’s share of total 37.55% 35.53% +2.02pp Photos: Canva

REPORT 2/2022 | Baltic Transport Journal | 65 Tab. 3. The Baltic Sea region’s ports’ liquid bulk turnover in 2020-2021 (thousand tonnes) № Country 2021 2020 yoy Share 2021 Share 2020 Share 2021-share 2020 [pp] 1 Russia 134,608 128,659 +4.6% 43.02% 40.36% +2.66pp 2 Sweden 56,968 60,197 -5.4% 18.21% 18.89% -0.68pp 3 Poland 29,560 22,460 +31.6% 9.45% 7.05% +2.40pp 4 Finland 28,000 35,800 -21.8% 8.95% 11.23% -2.28pp 5 Denmark 22,985 24,351 -5.6% 7.35% 7.64% -0.29pp 6 Lithuania 14,941 16,909 -11.6% 4.78% 5.30% -0.53pp 7 Estonia 13,770 15,630 -11.9% 4.40% 4.90% -0.50pp 8 Latvia 8,824 11,683 -24.5% 2.82% 3.67% -0.85pp 9 Germany 3,224 3,057 +5.5% 1.03% 0.96% +0.07pp Total 312,880 318,746 -1.8% Liquid bulk’s share of total 34.27% 35.93% -1.66pp Tab. 4. The Baltic Sea region’s ports’ dry bulk turnover in 2020-2021 (thousand tonnes) № Country 2021 2020 yoy Share 2021 Share 2020 Share 2021-share 2020 [pp] 1 Russia 75,122 66,660 +12.7% 29.20% 26.33% +2.87pp 2 Finland 31,520 30,435 +3.6% 12.25% 12.02% +0.23pp 3 Denmark 30,750 29,070 +5.8% 11.95% 11.48% +0.47pp 4 Poland 28,600 30,420 -6.0% 11.12% 12.02% -0.90pp 5 Sweden 27,561 28,418 -3.0% 10.71% 11.23% -0.51pp 6 Lithuania 22,400 23,671 -5.4% 8.71% 9.35% -0.64pp 7 Latvia 19,555 20,883 -6.4% 7.60% 8.25% -0.65pp 8 Germany 14,105 13,549 +4.1% 5.48% 5.35% +0.13pp 9 Estonia 7,650 10,043 -23.8% 2.97% 3.97% -0.99pp Total 257,263 253,149 +1.6% Dry bulk’s share of total 28.18% 28.54% -0.36pp

66 | Baltic Transport Journal | 2/2022

The inclusion of maritime shipping in the EU ETS, as part of the Fit for 55 pack age, introduced by the COM last year, was the topic second only to the one mentioned above. Timothée Noël, Policy Officer (DG CLIMA), briefly outlined the main reasons for this step and its benefits. The former included the pro posal being an essential step on the EU’s path to becoming the world’s first climate-neutral continent by 2050, an ambition impossible without drastic greenhouse gas emission cuts, and it being in line with the block’s Paris Agreement commitments. Noël also empha sised that without direct measures, the already significant amount of emissions from the ship ping industry is only bound to increase, as well as the fact that EU ETS-generated revenue will be used to support innovation and develop ment of new technologies required for hitting the emission reduction goals. While the BPO fully supports the COM in its efforts to combat climate change and the overall scope of the Fit for 55 package, it quickly became apparent that some points, such as the one outlined above, require fur ther consideration. The main risks related to the inclusion of maritime shipping in the EU ETS are evasive port calls and modal shifts, which ultimately may lower the competitive ness of European ports. The COM promises to monitor how the market implements this policy and believes that it is not possible for the EU ports to suddenly lose the majority of their cargo due to its introduction. While the latter is technically true, it is critical to remember that any business, once lost, will be tough to reacquire, even after the regulations change reactively as an effect of the monitor ing process. And it is only prudent to assume that non-EU ports are watching the situation closely and preparing to seize any opportuni ties it may offer them.

BPO’s EP Debate: the impact of EU’s sanctions, the block’s climate policy, and plans to lessen the dependence on Russian energy by Andrzej Urbaś, Communication Manager, BPO

The Baltic Ports Organization’s (BPO) annual debate held at the European Parliament (EP) tackled the impact of the war in Ukraine and the plans to reduce dependency on Russian energy sources in the context of possible consequences for the Baltic and European port industry. Also discussed was the inclusion of shipping in the EU Emissions Trading System (EU ETS) and the risks it entails for the continued competitiveness of the sector. T he meeting kicked off with the topic that currently dominates eve ryone’s thoughts. In the opening speech, Kimmo Naski, Chairman (BPO), once again underscored the deep sorrow and worry for the life and wellbeing of the Ukrainian people expressed by the whole Baltic community. While eve ryone unites in the hope of a quick end to the hostilities, the maritime industry can not ignore the geopolitical and economic impact. Supply chains are being disrupted in Europe and globally, and business ties are being cut. The geopolitical shifts we are wit nessing will have long-term consequences, some of which we can’t even yet identify. As MEP Andris Ameriks observed: while the turnover numbers looked well in multiple Baltic ports in the first months of 2022, it is vital to remember that many of the sanctions are yet to take effect, and the full impact of the war is yet to become clear. Uncertainty is the enemy of long-term investments, added Isabelle Ryckbost, Secretary-General of the European Sea Port Organisation, during the meeting. The current geopolitical situation only con tributes to a certain feeling of unpredictability in the maritime industry, caused by a plethora of environmental initiatives put forth by the European Commission (COM). They often include obligations, which, without careful consideration and due to the present geopo litical shifts, may greatly impact the port sec tor’s competitiveness in Europe. The partici pants took an in-depth look at parts of two such initiatives, the Fit for 55 package and the European Green Deal (EGD). Inclusion of shipping in the ETS

Way forward

It is impossible to foresee how the war in Ukraine and associated geopolitical turmoil will affect the pace of implementation of ini tiatives like the EGD and Fit for 55. Parts of the proposal will definitely be heavily dis cussed in the EP in the coming weeks and months. As for now, the way forward is to try and adapt to the new situation, carry on with the plan and accomplish various goals where it is most feasible.

One of the most crucial issues to tackle soon will be Europe’s energy policy, supply and diversity of energy sources. The recent REPowerEU proposal, focused on reducing the EU’s dependence on Russian fossil fuels, seems to have come just moments before becoming drastically more important. The first step will be changing gas suppliers, with plans to source liquefied natural gas (LNG) from the US and Qatar. Renewable fuels, such as hydrogen and ammonia, will come next, with bioLNG pos sibly used as an interim solution. The shift from fossil to renewable fuels will create new opportunities for ports, likewise challenges. They will need to find new revenue sources for the ones lost. They may very well become hubs for green energy, but the path leading there must be carefully trodden.

The right way to go about shore power Participants of the debate also shared various insights regarding some other proposals intro duced as part of the Fit for 55 package, such as the obligation for ports to provide onshore power supply (OPS) facilities to berthing vessels. Given the cost of OPS implementation, there is a need for further discussion between the industry and policymakers to channel these efforts to ports that will most benefit from the overarching goal of emission reduction. Simply put, money has to go where it is needed most.

OPS technology is vessel- and port-specific; solutions vary within a specific vessel type, not just cross-type. Additionally, more thought needs to be given to the sufficient supply of necessary grid capacity. Given the current lack of coordination between energy-related pro posals and the OPS one, as noted by Bogdan Ołdakowski, Secretary-General (BPO), a more transparent dialogue is paramount to maximise the proposal’s effectiveness. And speaking about money, it goes without saying that a great deal of the uncertainty men tioned earlier could be alleviated by a decisive and transparent assurance of sufficient public funding, without which most of the goals and obligations making up the various climate ini tiatives won’t be possible to fulfil.

5 Continents World’s coastlinelargest tons of cargo cargo port in the world Largest 7 Seas 37% Maritime communication solutions for a safer world network with audio compensationdelay Shore-basedAISnetwork communicationstacticalchart with both large and small organisations. We are very keen to be involved with the BPO and, if possible, bring some help and advice around critical communications and vessel tracking. We are also at the cut ting edge of autonomous vessels, providing the critical communications and track ing of the vessel. We’re eager to work with other BPO Members and look forward to meeting you as soon as possible,” said Mike Roberts, Head of Innovation Maritime, Autonomous Vessel Lead at Frequentis. The company has also recently won funding for a project set to impact the UK maritime industry positively. Frequentis will be deliv ering on a vital workstream of the Shipping and Port Interfaces in New Era (SPINE) pro ject to support the ambition to open all UK waters to the testing and commercial opera tion of autonomous shipping. "Our exper tise in control room communications was a key factor in being selected for this project, and puts us at the cutting edge of maritime autonomy as the world moves from voice communications to machine communica tions," said Roberts about the endeavour.

andefficiency,Enhancingsafetysecurity

The company has a long-standing tradi tion of working with Nordic and Baltic coun tries, spanning over 20 years. Their solu tions have been implemented in Denmark, Estonia, Finland, Latvia, Lithuania, Norway, Sweden, and many more.

FREQUENTIS MARITIME Regal House, 70 London Road, Twickenham London TW1 3QS, mike.roberts@frequentis.comwww.frequentis.com/en/maritimeUK

Frequentis Maritime solutions leverage almost two decades of experience within the maritime market and six decades in air traffic control. With deep cross-industry expertise in aviation, defence, public transportation and public safety, the Maritime business unit provides functional ity that supports the needs of today’s surveil lance, rescue coordination, coastal radio and traffic management. Core mission Providing actionable intelligence that enables faster decision making is the pri mary goal of Frequentis’ Maritime team of experts. The dissolving of physical borders that currently define what is understood as a control centre will be critical as search and rescue, broadband radio communica tions and traffic management evolve to IP-based“Frequentistechnologies.areworld leaders in control room solutions and work across all public safety globally. Even though Maritime is a small part of Frequentis, we cover 75% of the world seas and have a wide and varying customer base, from the Norwegian and Canadian coastguard to Ports of Jersey and Navy, showing we can work and partner 18,000,000 operational hours with VCX-IP 25,000,000 8,000,000 passengers travelled safely with Frequentis in 2015 of experience in safety and mission critical maritime solutions 2 decades of all ships at sea at any given moment connected to a Frequentis system > 20% of the world's oceans are managed safely with FrequentistechnologyequippedtechnologywithFrequentis

In a nutshell

50_MAR_Info_0820

Frequentis joins the BPO

TCC

Frequentis’ addition to our Member pool comes on the heels of Awake.AI’s deci sion to join the Organization. We are con vinced that both companies will greatly benefit our Members and contribute to their continued competitiveness.

D igitalisation is a process affect ing nearly every industry, with the maritime sector being no exception. BPO has kept close tabs on this process by organising various digitalisation-focused events and found ing our Digitalisation Working Group.

by Andrzej Urbaś, Communication Manager, BPO

The Baltic Ports Organization (BPO) is thrilled to announce that Frequentis has become a new member of its family. Providing communication and information solutions for the maritime sector (and many more beyond that), this new addition to our Member pool further expands BPO’s potential in a field of ever-increasing importance.

Headquartered in Vienna, the Austrian company is a global supplier of communi cation and information for control centres with safety-critical tasks. Their solutions are meant for various business sectors, such as air traffic management (civil and military air traffic control, air defence) and public safety & transport (police, fire brigades, ambulance services, shipping, railways). Solutions provided by Frequentis increase mobility and digitalisation and raise the safety and security requirements, factors essential for driving long-term growth.

BALTIC PORTS ORGANIZATION • Secretariat Office – Actia Forum Ltd. ul. Pułaskiego 8, 81-368 Gdynia, POLAND, ph.: +48 58 627 24 67, fax: +48 58 627 24 27, e-mail: bpo.office@actiaforum.pl, bpo.sg@actiaforum.pl, www.bpoports.com 2/2022 | Baltic Transport Journal | 67

1stworldwide IP

First of its kind by John Lund, Sales and Marketing Director (Global), Visy Oy

Some 20 years ago, vision technology in terminal operations was limited to optical character recognition (OCR) for container code recognition (CCR) and license plate recognition (LPR; also referred to as automatic number plate recognition, ANPR, depending on your geography). The game-changer in vision technology occurred in 2013 with the advent of dynamic neural networks (DNN). Long story short, using a DNN provides a faster, more efficient, and more accurate way to extract data from images using deep learning techniques. The benefit for the industry is that virtually everything that you photograph can be automatically digitised and therefore used as a basis for process automation. The latest application for container terminals, and those interested in a container’s condition, comes in the form of Visy’s Automatic Damage Detection System (ADDS), the first system of its kind.

Visy’s Automatic

68 | Baltic Transport Journal | 2/2022

Aspects of science fiction films from the 1980s and 90s are becoming a reality in the modern container terminal.

t is safe to say that the issues sur rounding damaged containers cost the industry billions of dollars per year. Broken boxes lead to spoiled cargo, and containers with severe struc tural damage present safety problems. Indeed, a container full of waterlogged iPhones, or one with warped corner posts that causes a stack to collapse, will evoke a ripple effect of insurance claims, angry customers, delays, and safety concerns. As a result, many container terminals have created processes to manage dam aged cargo. However, until recently, those processes have been manual and there fore labour-intensive, slow, error-prone, and unpredictable despite management’s best efforts. Today, damage inspection is automated through ADDS. This process automation improves the terminal’s key performance indicators (KPIs), including truck turnaround times, lifts per hour, and profitability.Container terminals use OCR camera systems to identify assets entering or exiting the facility via road, rail, or quay to improve KPIs. The common industry terms for these solutions are gate operating system (GOS) with OCR for trucks, train GOS for rail operations, and crane OCR for quayside movements. These deployments all utilise vision technology to collect event data (box ID, seal presence, door direction, hazardous goods labels, etc.) and share it with thirdparty systems such as the terminal operat ing system (TOS). The same camera systems can now be upgraded to include the ADDS feature through a simple software add-on. For example, as a truck drives through an OCR pre-gate portal and images are taken to identify the box number, the same camera system now tells the operator if the box is damaged, shows where the impairment is and specifies the damage type. Afterwards, it is up to each operator how they want to use this new, digitised data.

Quayside operations As boxes enter the terminal via shipto-shore gantries, images are taken of all visible sides by the crane OCR system. Cameras are typically located in the spreader and on the crane’s frame. As the spreader grabs the box(es), Visy’s TopView application (i.e., spreader OCR system) captures images of the roof and uses those images for CCR, twin-20’ detection, and ADDS. The operator receives confirma tion of the box IDs even before offload ing, thus preventing wrong moves. As the containers move into the exchange area, the frame cameras capture images of each box’s long and short sides. These images are also used for automatic data process ing, not least the box ID, ISO code, door direction, hazardous goods labels, tare weight, seal presence, and damage detec tion. Before the cargo touches the ground, the operator knows everything about it, including its condition. The information is digitised and shared with the TOS, mean ing that exceptions, such as the lack of seal or extreme damage, are promptly man aged. Perhaps the operator changes a work order so that a box goes to the mainte nance & repair (M&R) centre and then updates the shipping line. With digitised data, previously inconceivable levels of automation become the standard.

The same data are used during load ing operations. When a box is picked from the quay, all relevant information is cap tured, including its state. In this case, the Damage Detection System (ADDS)

Truck gates Before trucks and cargo arrive at the main gate, they typically drive through an OCR pre-gate portal. Depending on the operation, the portal is equipped with lights and cameras to capture high-resolu tion images for the OCR processes. The data extracted from the images will be similar to that utilised in quayside operations, save for apparent differences like truck license plates instead of terminal tractor ID, etc. Again, using a single set of images from the OCR portal, ADDS will find damage on the cargo, digitise the result, and create an exception handling event if required. Because the damage condition is digital ised, the work order can be automatically changed, and the container can be rerouted to the M&R centre if warranted by its state. Much like the in-gate process, the outgate process can be automated with ADDS. As the truck drives through the out-gate OCR portal, hi-res images are taken before reaching the main gate area, and all relevant data are acquired. The cargo is matched with the truck and work order, and the damage condition is determined. If the cargo is unfit for road travel, or some other discrepancy exists, the truck will be prohibited from leaving the terminal as an exception han dling event. If there are no discrepancies, the truck will go, and the terminal has evidence that the assets were in acceptable condition when exiting the facility.

2/2022 | Baltic Transport Journal | 69 terminal automatically collects and shares the standard OCR features, such as the box ID, but also confirms that the box is fit for sea travel. An equipment interchange receipt (EIR) can be automatically created and shared with the shipping line using the digitised data codes. Additionally, the ter minal verifies that the box was in the same condition when it entered the terminal, refuting potential damage claims.

Visy provides process automation ecosystems to manage the flow of traffic, cargo and personnel in transportation hubs and logistics centers. Every asset that goes in or out of a facility, whether by road, rail or quay, can be managed by Visy technology. Using vision technology and other data collection tools, Visy ecosystems manage more than 5,000,000 automation tasks per day in over 25 countries. Visit www.visy.fi to learn more.

Rail operations Like the truck pre-gate portals, rail tracks can be equipped with train GOS OCR por tals to collect and share data in a variety of train operations. The train OCR por tals work with double-stacked, dual-track, and bi-directional operations as the site requires. As the train travels through the portal, cameras capture hi-res images of the wagons and cargo to extract and share relevant data such as the box and wagon IDs and the composition. The data are shared with the TOS and compared to the expected composition. Exception handling events are created in the system for box/wagon discrepan cies and damaged cargo alike. If a box is damaged upon arrival, the informa tion can be automatically shared with a third-party system before the terminal even offloads it. Similarly, as the train is departing, the OCR portal will verify that the boxes are in acceptable condition when they leave the facility. Only the beginning of a new era Visy ADDS automatically digitises the condition of shipping containers. This tool presents a massive opportunity for opera tors and the industry alike. The ability to automatically know the condition of a box as it arrives at a terminal would have qualified as sci-fi only two decades ago. Today, operators can utilise deep learning technology to automate processes, provide better customer services, and make pru dent business decisions. Sharing damaged cargo data with thirdparty systems like the TOS, creating a web site for customers, or automatically gen erating and sending EIR reports are only the beginning of this new era in terminal automation. It will be amazing to see where vision technology takes the industry after another 20 years of development.

Photos: Visy Oy

The marine fuel sector is historically opaque in its operations. Fuel users and suppliers often lack the information they need to understand the history and complete make-up of the products they handle. However, knowing how a fuel will combust in an engine is key to understanding how a vessel performs and the emissions it will produce. The lack of accurate information about fuel provenance and quality hinders day-to-day operations for individual organisations, likewise the delivery of the industry’s future environmental and sustainability goals. Here is how this information can be put into the hands of shipowners and bunker suppliers.

Q uality and fraud issues are well known in the bunker industry and frequently accepted by ves sel operators as an unavoidable cost of doing business. Discrepancies in the quantity of fuel delivered during bunkering are often overlooked, even though deliver ies can be up to 3% less than that stated on the bunker delivery note (BDN). These lowtransparency transactions tot up to billions of dollars lost by shipping each year. In addition, the industry faces its big gest challenge – tackling climate change by meeting the shipping industry’s decar bonisation and the wider sustainability targets. Shipping is being pushed to be more transparent and open by regulators and influential stakeholders calling for the sector to deliver greater (environ mental, social, and governance) account ability. For instance, nearly 50% of the global ship finance portfolio comes from signatories to the Poseidon Principles, which set strict finance access criteria for shipowners and operators and, therefore, their ability to operate. The Poseidon Principles and all emis sions trading and credit methods currently measure vessel emissions using govern ment guidelines based on generalised cal culations: a one-size-fits-all approach for mulated to simplify enforcement. They overlook the range of different engine types and how operations and maintenance deci sions might influence their performance. At a vessel level, emissions are estimated using manufacturer specifications and ranges classified by fuel type and grade. The result ing figure is only a rough approximation of the emissions of a vessel. Calculating ship emissions using these broad-brush methods results in vessel owners and operators being charged or taxed too much relative to their actual emis sions – even if they have taken actions to improve their performance.

Breaking the fuel DNA code FuelTrust uses Artificial Intelligence (AI) and blockchain-enabled technol ogy to authenticate relationships across the marine fuel life-cycle to provide more accurate fuel and emissions tracking. This approach allows users to create a decen tralised, immutable store of information – a single shared source of truth, if you will, recording the fuel’s life-cycle. In this way, we eliminate the opaqueness that has been typical of the bunker sector. We then analyse the data recorded in the blockchain using our proprietary AI Digital Chemist™, a tool analysing information from suppliers, BDNs, certificates of analysis, and Why accountability in bunkering is required to create greener supply chains

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In technology’s trust by Jonathan Arneault, CEO, FuelTrust

Creating a cleaner world Future fuels and stakeholders’ increased interest in tweaking their operations will continue to drive the shipping industry and the bunkering sector to increase their understanding of the fuels they use and supply. FuelTrust is both commodity and fuel agnostic. We can use our technology to trace the origin and outcomes of alter native fuels such as green ammonia and biofuels – or even fuels and materials in other supply chains like chemicals, avia tion fuels, or metals. The importance of this cannot be over stated. Fuels presently represent over half of the expenses involved in operating a ship, and the cost of new fuels is antici pated to be much higher than existing fossil fuels. Today, maritime fuels make up 12% of the global fuel market but lead to over 30% of emissions, so ensuring accu racy and accountability in bunkering is critical to creating a cleaner world. During the decarbonisation transition, the industry will need to deliver account ability and value for investors, regulators, customers, and consumers alike. Achieving this will impose tremendous logistical challenges. Fortunately, by accurately sim ulating and analysing the contents of fuel tanks and engines, we can create a trusted, transparent fuels supply chain that can deliver insight and accountability quickly and cost-effectively.

2/2022 | Baltic Transport Journal | 71 vessel operation data to create a chemical digital twin of the fuel. It then replicates interactions in the fuel at a molecular level to identify how it has been blended, what reactions would have taken place between molecules, and what occurred during com bustion. This provides a precise ‘DNA’ of fuel at the batch level, enabling us to report fuel characteristics and emissions accurately. The experience of tracking, recording and analysing these data sets using our Bunker Insights™ and Carbon Baseline™ products often reveals huge discrepancies in fuel char acteristics. One issue discovered while work ing with our clients and their counterpar ties’ data is a stark difference in fuel energy densities. Based on our data analysis on 14m barrels of very low sulphur fuel oil across 28 batches, we identified a difference in perfor mance between batches of fuel of up to 3%. For a fully laden Panamax container ship, this would equate to a 50t fuel saving on a voyage from Vancouver to Portsmouth in the UK – or up to 469 nautical miles of extra sailing distance on a typical bunker. For shipowners and operators, such insights are crucial to understanding where and when to buy fuel. They also come in handy when dealing with regulators and seeking potential carbon credits based on their decarbonisation initiatives. Building trust with buyers For fuel suppliers, our findings repre sent an opportunity to market a superior fuel offering. Due to the lack of insight into the fuel supply chain, suppliers cannot currently gain any advantage by supply ing better quality fuel. Documenting the life-cycle of fuel batches allows suppliers to gain a competitive edge by providing reliable evidence of fuel quality and build ing trust with buyers. Over time, they can use these data to build a reputation as high-quality suppliers. Fuel suppliers must also protect them selves in the event of quality claims, and FuelTrust’s products document a fuel’s journey through the supply chain without the risk of disclosing commercially sensi tive information. In the case of claims, our Bunker Insights™ provides parties with preand post-purchase insight into the life-cycle history, chemical compatibility, and regula tory compliance of fuel – alerting all parties to potential risks and problems.

Photo: FuelTrust

FuelTrust leverages its maritime technology platform to authenticate relationships across the marine fuel life-cycle, digitally verify data from shared sources, validate decarbonisation and compliance, and identify potential bunker fraud and risk. With deep insight into when, where and from whom quality fuel is supplied, our solution allows you to alleviate the financial impact of bad fuel, mitigate regulatory risk, and empower sustainable shipping. Click www.fueltrust.io to find out more.

Johannes Oeffner, Project Coordinator of AIRCOAT and Team Leader at

Professor Thomas Schimmel, Scientific Coordinator of AIRCOAT and Director at the Karlsruher Institute of Technology’s Institute of Applied Physics, explains the bio-inspiration methodology that AIRCOAT foil uses, “It was amazing to understand the mechanism, how the plant keeps a layer of air under water and to pro duce first artificial air-keeping samples in our lab – which by the way still are keeping

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The AIRCOAT project: a new coating solution for reducing maritime shipping emissions

Sailing on air by the AIRCOAT Team Fraunhofer Center for Maritime Logistics, highlights, “We have developed produc tion lines and testing facilities, produced a foil prototype, coated a research vessel and applied a test patch to a container ship, performed a vast number of calcu lations and simulations and spent many hours with hydrodynamic and biofoul ing experiments. We have tackled a lot of challenges, had to make some compro mises and learned a lot which will help to advance AIRCOAT further for being a future ship efficiency technology.”

To achieve the greenhouse gas emission (GHG-E) reduction goals outlined in the European Green Deal, the aim of which is for Europe to be the first climate-neutral continent, the maritime shipping industry must reduce its footprint: by 50% by 2030 and 90% by mid-century. This can hardly be ticked off by a single measure alone. Ship resistance reduction means (via advanced coatings, air lubrication, hull management of biofouling, hull form design) are the necessary drivers to reduce emissions. Shipowners cannot solely focus on alternative fuels, which won’t be on hand in the medium-term in large quantities, nor other solutions such as slow steaming, which is well understood but will increase delivery times and the number of ships needed for transport. As such, hull optimisation technologies look increasingly tempting – for newbuilds and retrofits alike.

S ince 2018, the AIRCOAT project has been targeting the develop ment of a bio-inspired green solu tion to create a passive air layer on ship hulls underwater – so-called air lubrication. The goal is to reduce drag and prevent biofouling, thus lowering fuel con sumption and emissions. The AIRCOAT technology consists of a structured foil that retains air when sub merged. Due to the lower viscosity of air (low resistance to deformation) in com parison to water and the air barrier, drag reduction and limited attachment of foul ing organisms are expected. The foil will also help avoid releasing biocide anti-foul ing substances into the water.

From plant to a lab to a ship AIRCOAT is responding to one of the main challenges of the European Green Deal: nothing less than halving ship ping emissions by 2050. Today, maritime transport still emits around 940mt of CO2 every year, about 2.5% of global GHG-E. Because it can reduce up to 10% of the ship’s velocity per year, biofouling is an important factor in increasing fuel con sumption and, consequently, the indus try’s carbon footprint. Many solutions exist to reduce biofouling or drag, but none addresses both.

The air layer lowers the frictional resistance of the ship, minimizing the speed reduction. To conserve speed, ships have to exert more force in order to move through the water, which increases fuel consumption and CO2 emissions. The AIRCOAT technology has the potential to save 73 million tonnes of fuel at any speed and 225 million tonnes of CO2 emitted in relevant

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Byships.covering the ship hull with the passive AIRCOAT layer, the air acts like a lubricant between the hull and the water.

The AIRCOAT project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N° 764553. � info@aircoat.eu � www.aircoat.eu @AIRCOATProject Ship hulls are often covered in marine life and organisms – this is called biofouling. The passive air layer created by AIRCOAT separates the ship hull from the water, reducing or preventing biofouling.

Common anti-fouling paints wear off, containing substanceschemicalthatcanharmthesea.

What is biofouling? What solutions does AIRCOAT provide?

What is friction and why is it important? What solution does AIRCOAT provide?

The AIRCOAT coating does not harm the sea. … bytheirincreasingfueluse40%… … reducingthus their fuel use… … increasingand their emissions. … and decreasing their emissions. Biofouling increase surface roughness, which friction…increases AIRCOAT protects ships from the added friction due to biofouling…

The movement of water along the ship hull causes skin friction Thisresistance.frictional resistance works against the movement of the ship, reducing their speed.

AIR HYDROPHOBICHYDROPHILIC the air layer even after years under water. But this was just the beginning. It was the step from the plant to the lab. The step from the lab to the ship had still to be performed, and progress has been achieved during the past four years. Starting with small, fragile samples on the centimetre scale, we mean while produce elastic foils on the kilome tre scale. And the structures which in the beginning were on the scale of one milli metre are now on the micrometre scale.”

The innovative eco-friendly air lubri cation technology developed within the project coats the ship hull with a thin and permanent layer of air without the need for continuous pumping or air bubbling. The solution is inspired by Salvinia Molesta , a floating water fern that forms a permanent air layer when submerged in water. The air retaining ability of the so-called Salvinia effect relies on a complex micro- and nanostructured surface with hydrophobic and hydrophilic characteristics. AIRCOAT has technologically implemented this natural phenomenon to produce a bio-inspired hull coating technology that combines three key advantages: reducing the hull’s underwater

TECHNOLOGY 74 | Baltic Transport Journal | 2/2022 The AIRCOAT project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N° 764553. � info@aircoat.eu � www.aircoat.eu � � 2. Apply the AIRCOAT material onto a selfadhesive foil.3. theproductionLarge-scaleofAIRCOATfoil. 4. Application of the AIRCOAT foil on the hull of ships. ADHESIVE FOIL FLOATINGSALVINIAFERN WATER 1. Development of the implementingsurface/foilthe Salvinia effect, that is able to trap a layer of air when submerged in water. SALVINIA AIRSURFACEFOILWATER

A ten-metre-long research vessel in the Mediterranean was coated on one side with the air-retaining foil. Meanwhile, the first ‘real’ maritime conditions dem onstration was performed on a container ship in Romania, where the foil was attached to a part of the hull. Lastly, a laboratory check of the antifouling quality has been carried out. Experiments have indicated that diatoms, a special kind of micro-organisms wide spread in natural aquatic environments, avoid growing on air layers. They, however, like to inhabit the same surface when the air is removed for a comparative experiment.

Second, the production of the airretaining foil in a novel, kilometres-long roll-to-roll process has been developed. To reach the deep-water and high-speed stability of the air layers, it has been neces sary to manufacture the individual struc tures down to the micrometre scale.

Tool up! In the pursuit of energy efficiency gains, it is crucial that all efforts also preserve the integrity of marine ecosystems. After all, what good can come from climate action that leads to adverse environmen tal impacts? The maritime sector has been working to phase out harmful compounds from anti-fouling coatings since 2001; how ever, negative effects of anti-fouling bioc ides on marine life are still being detected. Established anti-fouling coatings have an average duration of five years between applications, which generates costs, i.e., funds that could be directed towards other green investments aboard ships or in port/ terminalFurtherinfrastructure.incentivestothe shipping indus try to invest in environmentally friendly solutions to tackle biofouling are essential to ensure that solutions put in place today are contributing to both climate and marine protection goals. In addition to offering sig nificant fuel efficiency gains, AIRCOAT is a retrofit technology: it can be put into place on existing ships, which avoids early tonnage retirement and the need to build new ves sels to reap the technology’s benefits. In prac tice, it allows for a much faster transition to a greener fleet. With 50% of the European ton nage being under 15 years, retrofit solutions give the industry the tools to quickly adapt.

TECHNOLOGY 2/2022 | Baltic Transport Journal | 75 AIRCOAT stands for AIR-induced friction-reducing ship COATing. It is a Horizon 2020 EU funded project promoting a passive air lubrication technology with the potential to revolutionise the ship-coating sector. Head to aircoat.eu to discover more. You can also watch the project’s Final Event by going here friction; minimising fouling (as fouling organisms find it rather impracticable to settle on a layer of air); and getting rid of toxic anti-fouling substances. The AIRCOAT foil is introducing advanced technology in hull coatings and, as such, will come with strong invest ments from the vessel owners’ side. What makes AIRCOAT a lucrative choice is the expected operational savings. The solu tion brings direct business profit to the ship operator by materialising savings in fuel consumption and hull maintenance costs between dry dock intervals whilst promising significant investment returns. Testing, testing Several remarkable project advancements have been made in developing a foil with a surface structure to retain air and realise drag reduction. First, there is the geometry and the size of the surface structure. Theoretical calcula tions and simulations on a high-performance computer cluster have shown that drag reduc tion increases with surface structure and that 10% is possible for frictional drag reduction. Hence, depending on ship speed and length, the size of the surface structure has to be adapted to reach equal drag reductions.

Third, appliquéing the foil on ships: industry procedures have been devel oped to manually apply the self-adhe sive prototype foils to commercial vessels within standard dry-docking processes. Demonstration tests with a container ship showed the coating’s function appli cability and operational durability.

Fourth, testing the solution.

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S ince the pandemic, the story has been making news headlines: shippers are struggling to secure production processes and deliver their products. Global turbulences stand behind this precarious situation, includ ing the most recent one: Russia’s aggres sion on Ukraine. They are affecting entire economies and thus also the worldwide logistics chain. Meanwhile, the coronavi rus hasn’t gone anywhere, still capable of closing down cities the size of Shanghai. Additionally, the European Commission’s Mobility Package will bring about new labour regulations in a region that has been struggling with a truck driver short age for a long time. All of the above affects the availability of raw materials, building components, cargo space, fuel, personnel, and trans port capacities, forcing companies across the board to incur costs and trickle them down to consumers. Even before the turn of 2019/2020, organising shipments suc cessfully had often been a delicate equa tion in terms of efficient running times, freight rates, and the best transport modes used. However, many of the most popular trade lanes are currently disrupted due

A spring tender season in turbulent times by Fitzwilliam Scott to geopolitical turmoil, with COVID-19 continuing to curtail cargo space. It is not easy for shippers to manage their logistics efficiently in such circum stances. One of the possibilities to get regular demands fulfilled is a tender, as the strategic development of a diverse carrier network is becoming increas ingly important to secure capacities in the long term. Keeping the chain unbroken No truck, no shipment – it doesn’t get any simpler. In general, obtaining capacity at a competitive price is one of the biggest advantages for shippers when tendering business. This factor is becom ing ever more crucial due to the growing driver shortage, the pandemic, regula tions on CO 2 taxation and cabotage, and political instabilities affecting the usually finely balanced global division of labour and the supporting logistics industry. But even with a closed tender, the agreed capacities cannot always be guaranteed, e.g., in the event of driver scarcity or the closure of mainstream trade routes. To minimise the risk, it makes sense to commission contractual partners with a diversified, extensive carrier network. This is where digital logistics platforms come into play. “InstaFreight offers its customers an extensive network of trans port partners through its cooperation with over 25,000 carriers. In addition, we are expanding our charter offer by man aging freight capacity on a growing trade lane network. That way, capacities can be secured in the long term,” says Philipp Ortwein, the company’s Co-Founder & Managing Director.

Another factor that affects the effi ciency of transport logistics is the acces sibility of trade lanes. Current geopoliti cal disputes are impairing international routes and thus hinder the transport of goods. One can have the proverbial truck, but now the wisdom goes no road, no shipment. InstaFreight offers alter native intermodal solutions for such cases. Shifting volumes from road to rail is a way to secure the supply chain in crisis times, along with saving CO 2 and reducing freight costs. Especially if the cargo is heavy, transported over a long distance, and not time-critical, compa nies benefit financially from intermodal transportation.

How technology can bring greater order and certainty into logistics

Rising diesel prices, driver shortages, closed borders, blocked trade lanes – by and large, shippers cannot complain about the lack of challenges. Although not every one of these can be resolved immediately, logistics service providers are working hard on solutions. A digital approach can help secure capacities and handle fluctuating fuel prices in this difficult tender season.

Getting past the wall

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the beginning of this year. More than $40m will help the Berlin-based log-tech company continue its way to digitise the road freight market to, from, and within Europe. Heliad and the European Investment Bank led the financing round, with all previous inves tors of InstaFreight also participating. This commitment underlines the necessity to maintain a resilient, efficient, and sustain able shaping of overland transportation. “Land transport is still highly inefficient, and we as InstaFreight provide more sus tainability and efficiency through a tech nological approach, thereby contributing our share to secure global supply chains,” underlines Ortwein. It was once said that “If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.” Even in turbulent times, shippers can turn the tender season into a strategic advantage by utilising the digi tal processes of logistics service provid ers. They help achieve flexibility in everchanging situations through their broad and diverse carrier network, adaptable freight cost models, and alternative trans port solutions like intermodal.

The current situation in the transport business illustrates that stable supply chains cannot be taken for granted. Transport prices are record high in many regions, and capacities are very scarce. Yet, there were many empty runs in European land transport: roughly 30% before the events that shook the world. Furthermore, with more than 770,000 transport companies, the market is very fragmented. Through platform technology, InstaFreight makes this capacity more acces sible to shippers looking for reliable trans port partners, proficiently organising their supply chain management. InstaFreight suc cessfully closed its Series B funding round at InstaFreight offers digital B2B transportation services that enable fast and easy processing of freight transportation. For shippers, the company’s fully digital process (from quotation and order placement to track & trace and freight documents) allows for increasing efficiency while cutting costs. For carriers, InstaFreight finds suitable transports according to one’s vehicle fleet, helping to optimise capacity utilisation and pay in a fast and reliable manner. Visit www.instafreight.de/en to learn more.

Photo: InstaFreight

Fuel prices and freight rates: in check “Money makes the world go round,” states the character starred by Liza Minnelli in the musical Cabaret. In addition to secur ing capacities, the optimisation or flexibili sation of freight costs also plays a significant role in the tendering business. Due to the rising diesel prices since the outbreak of COVID-19 and their recent explosive increase when armed conflict came back onto European soil, shippers are trying to hold onto their old tender agree ments to avoid freight cost increases. This approach makes sense strategically. That said, even the existing tender contracts are renegotiated again and again due to the rising diesel prices – a time-consuming and resource-intensive undertaking. One solution is the so-called “fuel floater cost model,” used for recurring business. Within it, diesel prices are automatically adjusted to the current market value at any given time – without the need to renego tiate contracts. “Our transport partners are thus protected against rising fuel costs, while shippers benefit from falling fuel costs – a fair and transparent model for both sides,” explains Ortwein. “As a digital ser vice provider, we have the technology to quickly roll out this model across our cus tomers’ entire carrier base – saving them a lot of administrative work,” he adds. With freight rates fluctuating even stronger over the last months, it becomes increasingly difficult to keep an overview of the current market prices. Tendering business is an effective way to bench mark freight costs and check if the cur rent agreed freight rates are still competi tive. With securing capacities being the most pressing challenge for many ship pers, getting the best price might be sec ond-listed. Still, it remains an important factor – especially for large companies with considerable volumes to move.

O ver the course of two decades, the crew of Esperanza confronted pirate fishing and whaling harpoons, from the polar regions to West Africa, teamed up with scientists and journalists to reveal illegal activities and conduct groundbreaking studies. They fought on behalf of people and planet against those who are prepared to sacrifice both for profit and power.

‘Espy,’ as it is lovingly known inside Greenpeace, carried our activists to parts of the world that are inaccessible to most. It’s often in these most remote areas where the worst environmental and humanitarian crimes take place. It brought aid and humanitarian relief to those in need in the aftermath of the Haiti earthquake of 2010, and 2012’s Typhoon Bopha, which devastated swathes of the Philippines. As the fastest ship in the Greenpeace fleet, Esperanza was often used to chase high-speed vessels and to confront environmental criminals few others could catch. Esperanza’s ice-class credentials meant it took these fights into the freezing waters of the Antarctic in numerous polar expeditions. It was, and always will be, a symbol of hope, born from the support of millions of people around the world and put into action by those who risked their safety and lives to stand against impossible odds for the protection of our shared environment.

Hope floats: the Greenpeace Esperanza retires after two decades, but the light shines on by Greenpeace International

Gracias! Before joining the Greenpeace fleet in 2000, the ship, which began life as a Soviet-then-Russian firefighting vessel, had been known as Echo Fighter. The first Greenpeace crews aboard painted out the ‘h’ to spell Eco Fighter, but as the organisation began an environmentally friendly refit of the vessel an online vote was called to choose a permanent name.

Thousands of activists in Argentina and other Hispanic countries saw a historic opportunity for the first ever Greenpeace ship with a Spanish name. Bringing together their enthusiasm for action at sea and the emerging digital activism of the era, they flooded the vote with one name: Esperanza For more than two decades the Esperanza’s story has been the sum of the actions of its talented and dedicated crew, the brave activists and volunteers who called it home, the teams who helped to deliver hope in action through campaigns and the supporters who brought Esperanza into the Greenpeace fleet, named the ship, and stood behind it on every part of its journey.

Until a well-earned retirement, Esperanza carried the light of ‘Hope’ all over the world.

Leading the fight As the world changes, so must Greenpeace’s maritime operations. Esperanza, even with its electric drive, had a much larger carbon footprint than other Greenpeace vessels and despite the constant efforts of dedicated crew, technicians, volunteers, and supporters to hone and improve the ship’s technical features, its fundamental biology does not allow it to be consistent with Greenpeace’s vision for a zero-carbon future. The ship thus arrived at its final port stop in the Spanish Gijón, where it will be retired for good.

Esperanza has hundreds of thousands if not millions of people to thank.

For over 20 years a Greenpeace ship called Esperanza – ‘Hope’ in English – lit up the darkness in the fight to protect the environment. Its voyages have now come to an end, leaving a proud legacy of inspiration and environmental protection. Built in 1984 in Gdańsk, the former Soviet/Russian firefighting vessel was acquired by Greenpeace in 2000 and conducted operations on whaling, nuclear transport, illegal fishing and illegal logging, alongside helping with scientific research on climate and energy. Its high speed and ice-class credentials meant it was also used for polar expeditions, pursuits, and for reaching places few others could.

It is perhaps fitting that the ship’s final destination is in a Spanish-speaking country: the language of its name’s birth. To those people, and all of you, who have carried the light of hope in your hearts, we say “gracias.”

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The crew of Esperanza launched a solar-powered aircraft, helicopters and submarines from its decks and gave the ship many green renovations from the start of service and throughout its life, but in the midst of a climate emergency with environmental crimes still being committed all over the world, Greenpeace needs to lead the way on carbon emissions while at the same time finding more flexible and local maritime resources to allow us to take the fight to remote places few can go. Indeed, while Esperanza will be dismantled – to the highest environmental standards – its spirit and the hope that it represents will live on in the continuing fight to protect our fragile Earth.

2002: Launch, deforestation action and meeting with anti-apartheid icon

Esperanza ’s Endangered Forests, Endangered Freedoms tour of Alaska’s Tongass National Forest investigated the Bush administration’s large-scale clearcutting and logging of forests across the US. Many local community members, including the Indigenous Tlingit peoples, welcomed the ship with accommodation and logistical support. Also that year, crew members of Esperanza were arrested for the first time off the coast of Gibraltar while protesting the illegal import of oil. Photo: Gavin Newman/Greenpeace

A few highlights from Esperanza ’s legacy

Photo: Greenpeace The longing While we don’t know for sure all the places that light will be needed in the future, we do know it will never be extinguished, and we will bring wherever it needs to go, together. It is often said that a ship is so much more than the physical construction: it comprises the heart and soul of the people who make it go. As the French writer Antoine de Saint-Exupéry said: “If you want to build a ship, don’t gather up people to collect wood or assign tasks and work, but rather teach them to long for the endless immensity of the sea.”

2003: Forests and indigenous relationships

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After Esperanza ’s extensive green conversion, it was officially launched in its homeport of Amsterdam in early 2002. There followed a series of actions across Europe against imported timber, including Spain, France, the Netherlands, Germany and Italy, targeting European governments’ failure to tackle destructive logging in the world’s remaining ancient forests. Later that year, Archbishop Desmond Tutu blessed the vessel and the crew in Cape Town and joined them in wishing for a clean, peaceful and nuclear-free world.

Photo: Greenpeace/Daniel Beltrá

2010: Relief work with MSF on Haiti earthquake

Photo: Greenpeace/Jeremy Sutton-Hibbert

2007: Completing the first journey

Photo: Greenpeace/John Novis

2006: Defending Our Oceans

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Spurred on by the success of 2005 anti-whaling confrontations, Esperanza began an 18-month world tour. The Defending Our Oceans expedition was the longest and most ambitious that Greenpeace had ever mounted, covering West Africa pirate fishing, the Mediterranean, India, Singapore, Pacific Islands fisheries, Philippines, US (Hawaii, California) and Mexico.

Photo: Greenpeace/James Alcock

2009: Defending Our Pacific/Pacific Voices fisheries

Photo: STAN HONDA/AFP via Getty Images

In a joint expedition with Arctic Sunrise against Southern Ocean whaling, Esperanza was rammed by Kyo Maru, a Japanese whaling vessel, as it attempted to block the transfer of a dead minke whale to the Nisshin Maru factory ship, generating publicity that created space and appetite for the ambitious Defending Our Oceans mega-tour in 2006-07.

Esperanza launched Greenpeace Indonesia’s first action against forest destruction when it blocked the Gran Couva ship, which was carrying a huge cargo of crude palm oil, and crew scaled the sides, calling for the Indonesian government to protect forests from the rampant deforestation stemming from palm oil and pulp industries.

Photo: Greenpeace/Daniel Beltrá

2005: Clashes with whalers

An underwater research mission to campaign for Marine Protected Area (MPA) off the coast of Alaska took Esperanza to Amchitka, the island that Phyllis Cormack never made it to in the first ever Greenpeace expedition in 1971. The ship also campaigned for the protection of dugongs threatened by the creation of a US airbase in Okinawa, and continued to work against Japanese whaling in the Southern Ocean – and even in Japanese waters. When a fire broke out on Nisshin Maru, one of the whaling fleet ships involved in ramming Esperanza in 2005, crew of the Greenpeace ship offered safety support and to tow it out of the Southern Ocean. The offer was refused.

2008: Against Indonesian forest destruction

Photo: Greenpeace/Pierre Gleizes

In one of many collaborations with Médecins Sans Frontières (Doctors Without Borders; MSF), Esperanza delivered supplies – thousands of blankets, bars of soap and other essentials – to the Haitian capital Portau-Prince following the devastating 7.0 earthquake that rocked the country in January. The ship also conducted climate-related scientific research on ocean acidification (using mesocosms: outdoor research system) in Svalbard with the Leipzig Institute, teeing up confrontations the following year.

During Esperanza ’s expedition to expose unsustainable and illegal fishing practices in the Pacific, a campaign which had already for a few years helped mobilise Pacific Island countries against industrial states fishing in their waters, then Cook Islands Prime Minister, Jim Maruai, paid a visit to the crew.

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2012: Typhoon Bopha humanitarian work

2016: Targeting destructive fishing and palm oil practices Esperanza ’s high-tech expedition to confront illegal, unregulated and undocumented fishing forced the world’s biggest tuna producer, Thai Union, to the negotiation table to clean up its act. Combing huge expanses of the Indian Ocean for marine snares called FADs with solar powered drones, crew converted them into electricity supply for coastal communities and confronted vessels using lights to attract fish. Days later, the Indian Ocean Tuna Commission banned the practice. Then, Esperanza staged a blockade of palm oil in Rotterdam, the palm oil gateway into Europe, while directly affected activists from the cargo’s country of origin, Indonesia, blocked refineries on shore. The ship also passed by London’s iconic Tower Bridge during a UK campaign on microplastics.

Photo: Jiri Rezac/Greenpeace

2011: Arctic oceans research

Photo: Vincenzo Floramo/Greenpeace

Climbers from Esperanza scaled Shell’s Polar Pioneer oil rig in April during a chase across the Pacific from Malaysia to Alaska that came to be known as The Crossing. It was one of a global series against Shell’s Arctic oil drilling by Esperanza and others, including First Nations and other Indigenous protesters. Inspired by these, thousands of people in kayaks and other boats joined the ‘Paddle in Seattle’ (May) to protest Shell’s Arctic drilling plans, and then climbers swung from St Johns Bridge in Portland (July) to block the departure of an Arctic-bound Shell vessel. Later that year, Greenpeace Mexico and Esperanza worked in the Sea of Cortez/Gulf of California to protect the vaquita, a gravely endangered species of porpoise, from extinction. The campaign against illegal gillnets in the area, which often involved great personal risk, made the vaquita a highly visible public issue and eventually pushed then president Enrique Peña Nieto to take action.

When the record-breaking category 5 Super Typhoon Bopha (aka Typhoon Pablo) struck the Philippine island of Mindanao, Esperanza diverted from an expedition to Manila for a Pacific fisheries conference to provide emergency humanitarian relief in cooperation with Philippine government agencies.

Photo: TED ALJIBE/AFP via Getty Images

Following the previous year’s scientific research, Esperanza evaded the Danish navy off the west coast of Greenland and its crew scaled Cairn Energy’s oil rig Leiv Eriksson, the only rig in the world poised to begin new deep sea drilling in the Arctic. The confrontation, joined by Greenpeace International director Kumi Naidoo and Paul Simonon, bassist of The Clash, set the scene for a global Arctic oil campaign and years of work on oil, climate and energy.

Photo: Dean Sewell/Greenpeace

Photo: Will Rose/Greenpeace

2014: A big year for Hope in the Arctic

In a joint action, Rainbow Warrior and Esperanza teamed up to intercept the first ever shipment of Arctic oil to Europe. Carried from the Prirazlomnoye oil platform, the centre of the Arctic 30 case, the oil on board Mikhail Ulyanov was blocked in Rotterdam. Many members of the newly freed Arctic 30 were involved, after their three months in detention in Russia made them globally recognised. President Anote Tong of Kiribati and Yeb Saño, the then Philippines Climate Change Commissioner known for his UN COP19 speech on record-breaking Super Typhoon Haiyan, sailed on board to witness the Arctic sea ice minimum and demand urgent climate action, connecting the melting polar ice with the rising sea levels and worsening climate impacts in their respective countries. Yeb joined Greenpeace Southeast Asia as Executive Director two years later. Other high-profile crew members in 2014 included actors Emma Thompson (England) and Michelle Thrush (First Nations, Canada) and English fashion designer Vivienne Westwood. Esperanza occupied and successfully halted Arctic oil drilling efforts by Norwegian state-owned oil company Statoil.

Photo: Nick Cobbing/Greenpeace

2013: Pacific campaigns expand Esperanza ’s work on Pacific fisheries widened to Sri Lanka, Thailand and the Philippines and then Mauritius, Mozambique and Madagascar for an Indian Ocean campaign to document tuna transshipment and patrol the region with government authorities. The ship also carried a research mission to the Queensland coast in defence of the Great Barrier Reef, after the Australian government approved a massive dredging project at Abbot Point to rip up seabed to make way for coal shipments.

2015: Chasing fossil fuel villains across the world

2019-2020: Pole to Pole Esperanza and Arctic Sunrise jointly undertook one of Greenpeace’s biggest ever expeditions from 2019-20. An almost year-long ‘pole to pole’ voyage from the Arctic to the Antarctic, building the case for a UN Global Ocean Treaty. Scientists, activists, campaigners and famous faces including Marion Cotillard (France), Shailene Woodley (USA) and Gustaf Skarsgård (Sweden) all came aboard the ships during the ‘Protect the Oceans’ expedition, which began with the most northerly music concert ever and took a Turtle Journey through the world’s oceans to research and highlight the threats of climate change, overfishing, plastic pollution, deep sea mining and oil drilling.

2018: Drop dirty palm oil

Photo: Marten van Dijl/Greenpeace

Six activists from Esperanza boarded a shipment of palm oil from Indonesia to the Netherlands and were detained on board. The action, against the world’s biggest and dirtiest palm oil trader, Wilmar, was part of a series of protests worldwide to urge food giant Mondelēz, the makers of Oreo and one of the biggest brands in the world, to drop their suppliers of dirty palm oil.

Photo: Will Rose/Greenpeace

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Photo: Greenpeace Photo: Christian Åslund/Greenpeace

As the Pole to Pole world expedition finished up in Antarctica in January, a new global challenge was emerging: COVID-19. Maritime operations suffered along with the rest of the world as a pandemic was declared, but Esperanza made it to the North Sea for an investigation into a methane leak that resulted from a major blowout in gas drilling operations 30 years earlier. The ship also dropped inert granite boulders at precise locations in the Dogger Bank Marine Protected Area in the North Sea, to help prevent destructive bottom trawlers from operating in a new exclusion zone.

2021: The eternal light of Hope

Photo: Suzanne Plunkett/Greenpeace

2017: Amazon Reef and West Africa

2021: Final confrontation Further work dropping boulders to thwart the activities of destructive bottom trailers continued in the English Channel early in the year, before Esperanza ’s final confrontation in Sagunto, Spain, against the national gas grid operator Enagas. Crew from 18 countries blocked the entrance to the port to prevent a ship loaded with liquefied fossil gas from entering, highlighting the harmful effects of gas and other fossil fuels on the most vulnerable, as European energy ministers met in Luxembourg to discuss rising energy prices. The action came just weeks after a huge victory when Greenland dropped all future oil exploration, demonstrating that activism, such as Esperanza ’s actions against the Leiv Eriksson rig in 2011, works.

2020: A new global challenge emerges

Esperanza hosted scientific research and world-first imaging of the undersea Amazon Reef, a unique biome where a French oil giant was bidding for oil licences. In 2018, after sustained pressure, Total lost its battle to drill in the area. The Hope in West Africa tour covered six countries with patrols against illegal fishing alongside national authorities. Ministers from Mauritania and the President of Guinea Bissau visited Esperanza to show continued support for Greenpeace’s many years of work on West African fisheries.

Photo: Pedro Armestre/Greenpeace

Once crew in Spain were released from detention and the ship’s anchors released by police, Esperanza ’s retirement journey began with a triumphant final return to Amsterdam. Thank you, Esperanza! True to your name, you gave millions of people hope. And we will always find ‘Esperanza ’ in our hearts.

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It became almost customary for us to report on the alternative ways of using a shipping container. Believe it or not, the good-ol’ box can serve as storage ashore as diligently as it does at sea. According to the Container Self-Storage and Traders Association’s Container Self-Storage Census 2021, there were 978 container self-storage sites in the UK alone, up by 35 on the 2020 result, with occupancy levels frequently going over 95% of the Lay waste to zero-waste

Photos: APM Terminals Gothenburg

Photo: Container Self-Storage and Traders Association capacity. It makes us wonder: are British houses and flats so tiny they cannot accommodate the things people own? Or, conversely, is there just too much stuff to cram under one’s roof, no matter the square footage? What was the wisdom again? Ah, yes, love things, use people, right? At least the boxes manufactured for setting up container self-storage take in some cargo from China to Europe. You know, sustainability. Sort of. Happy Women’s Day!

On the 8 th of March, we traditionally put the flag out to celebrate women worldwide, among others, in tribute to the various roles and occupations they hold, including as transport & logistics workforce.

Although still in the minority across our industry, today’s reality is far from being a ‘man’s world’ only. The change has been driven by such figures as Kerstin Åström. Together with nine other women, she began working as a crane operator in Gothenburg in 1965 – answering the port’s call to help with the shortage of labour. A few years later and Kerstin decided to apply for permanent employment. “There was a huge opposition to female crane operators at that time, and they came up with every conceivable reason why I could not get a permanent position. But I did not give up but wrote a letter to the Swedish Gender Equality Agency,” she recalls. Kerstin persevered, and in 1982 she became the first female crane operator in the Port of Gothenburg with a fixed job. “I was so happy! There was a clear macho culture among the older men, but the younger ones had a positive attitude towards me,” Kerstin recollects. We salute all women whose invaluable work helps propel the movement of goods and people!

Who’s a good boy?

Book carriers

Starting in mid-February 2022, a two-week-long ‘Cerber’ drill took place in the Port of Gdynia, allowing service dogs and their partners to hone skills in an environment entirely new for them. The exercise comprised three segments: searching for explosives, sniffing drugs and tobacco, and training with attack dogs. Among others, the human-dog teams had to acquaint themselves with new working conditions, including steel decks of a ship, narrow corridors, and unfamiliar scents when going through the facilities of the search & rescue service, the port fire brigade quarters, the container terminal of Hutchison Ports Gdynia, and Stena Line’s ferry Stena Spirit. The latest drill formed part of the Port of Gdynia’s ongoing security and crisis management programme, which aims at emulating dangerous situations as realistically as possible to prepare for real-life events.

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Photos: Port of Gdynia CommonsWikimediaphoto:knygnešiaĩ;theofoneJuška,Vincas

Transportation comes in various shapes and forms. Smuggling, though nowadays commonly associated with blameworthy acts of drug peddling or human trafficking, was also used to save one’s culture (and no, we’ll bring up the topic of getting whisky over the Pond some other time). Back in the 18th and 19 th centuries, when Imperial Russia was trying to Russify other nations without remorse, among many the Lithuanians, people put their lives at risk to preserve what’s at the very core of culture – language. In 1866, a total ban on the Lithuanian press was enforced. The Russians also wanted to replace Latin with the Cyrillic alphabet, to that end forcing schoolchildren to use textbooks written in Russian. Meant as a swift russification campaign, it backfired immensely. The knygnešiaĩ – book carriers – took up the gauntlet with gusto (getting the ‘cargo’ as far as from the US)! It is estimated that millions of books were smuggled (some 2.75m living in Lithuania in 1897). Five days after their Independence Day on 11 March, the Lithuanians celebrate the Day of the Book Carrier in memory of the brave smugglers (the birthday of Jurgis Bielinis, who brought book smuggling to its heights).

PAUL SELLS Global Head of Digital Solutions, ABS

JENS MATHIASEN Partner at HFW

Søren Poulsgaard Jensen worked, first as CFO and then CEO, for the Danish-Germany ferry line Scandlines for 11 years, having joined the company in 2010. Previously, he had held vari ous executive positions with A.P. Møller-Mærsk. Jensen will support the international commu nication agency with his experience in strategy, business development, and operational per formance. He is a graduate of the Copenhagen Business School and the London Business School.

NICOLAS ALBRECHT CEO, CargoBeamer Albrecht had joined CargoBeamer’s Executive Board in January 2020 as Chief Business Development Officer and was recently chosen by the Supervisory Board as the company’s CEO. The chief responsibility of Albrecht in his new post will be to scale CargoBeamer’s pro prietary technology for automated tranship ment of semi-trailers onto trains Europe-wide. To that end, Albrecht will lead the develop ment of the company’s terminals (30) and net work (50+ services) over the coming ten years.

The American Bureau of Shipping (ABS) has appointed Paul Sells, holder of several pat ents, who joins the Houston-based class from Mira Labs, Inc., where he was Vice-President of Customer Experience. Sells graduated from the University of Tennessee with a degree in Mechanical Engineering and is a Master of Business Administration from the College of William and Mary. Paul has also served in the U.S. Navy as Lead Petty Officer.

The global, shipping sector-focused law firm has opened its Danish office and hired Jens Mathiasen to run the new bureau. Mathiasen previously led the shipping, offshore, and transportation practice at the Danish law firm Gorrissen Federspiel. He is the former Managing Director of the Shipowners’ Council of Copenhagen. Mathiasen also writes and lec tures on maritime law, including more than ten years as Head of Maritime Law at Maersk’s graduate training programme MISE.

ALEXANDER ADAMOU Chief Scientist, VesselsValue With a first-class degree in Mathematics from Cambridge University and a PhD in Applied Mathematics from Imperial College London, Dr Adamou will oversee the scientific research of the online valuation and data provider. Dr Adamou already worked with VesselsValue – back in 2010 when he led the develop ment of the company’s first asset valuation model. He also supported the company as a Quantitative Consultant in 2012-2022.

SØREN POULSGAARD JENSEN Advisory Board Member of EHRENBERG SØRENSEN Kommunikation

ARUNA HUSSAIN Managing Director of Sealand Europe & Med

The subsidiary of the Estonian Stargate Hydrogen has hired Markus Hirvonen, PhD in Machine Automation from LUT University, to oversee the implementation of solutions for ret rofitting freight locomotives with zero-emission hydrogen fuel cell powertrains. Hirvonen was earlier with Sandvik Mining and Construction as Research and Development Manager for elec tric and hybrid vehicles. He has also worked on the electrification and digitalisation of mobile machines (at, among others, Rolls-Royce, Valmet Automotive, and Patria).

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MARKUS HIRVONEN Stargate Rail’s COO

The European and Mediterranean division of Maersk’s feeder & short sea arm has a new lead. Starting in 2000, Hussain worked for Maersk in liner and trade roles in Pakistan and the UK, then left for Australia in 2010, working for a few years as Supply Chain and Operations Director for Australia at Wayfair, and rejoined Maersk in 2016, first as Damco’s Country Head and then as Chief Operations Officer for the Middle East. Up till now, Hussain was Area Managing Director for Maersk in Pakistan.

MARKO RAHIKAINEN One Sea’s Ecosystem Lead Captain Rahikainen brings a wealth of mari time experience, particularly in safety, security, and facilitation. Recently, he was employed by the Finnish Transport and Communications Agency, where, among others, he repre sented the country at the EU Committee of Safe Seas. He was also involved in introducing the maritime autonomous surface ships topic at the IMO. Earlier, Rahikainen worked for the Finnish Maritime Administration as Maritime Inspector.

REGISTRATION NOW OPEN - BOOK YOUR FREE PASS TODAY Attendees to the last TOC Europe include: TOC EUROPE RETURNS TO ROTTERDAM Re-Connecting Global Port & Cargo Supply Chain Professionals Face-to-Face 14 – 16 June 2022 Rotterdam Ahoy Centre Events | Live & Digital Content | Networking Discover more about our sponsorship & exhibition opportunities AGENDAPOWERFULTOGET THE INDUSTRY BACK ON THE ROAD GROWTHTO See website for details Join the conversation online #TOCEurope www.tocevents-europe.com TOC Europe is proud to work alongside the globe’s leading industry associations: Global TECH SponsorsTOC PartnerMediaGlobal Delegate Badge Sponsor RegistrationSponsor SponsorCSCAssociateSponsor TECHSponsorsTOC

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Baltic Transport Journal 2/2022

Articles inside

Who is who

Heritage corner Hope floats: the Greenpeace Esperanza retires after two decades, but the light shines on

Sailing on air

A spring tender season in turbulent times

Transport miscellany

In technology’s trust

First of its kind

Frequentis joins the BPO

BPO’s EP Debate: the impact of EU’s sanctions the block’s climate policy, and plans to lessen the dependence on Russian energy

A significant step forward

The ultimate switch

Ready to drop?

Taking charge

Smells like sustainability

War & logistics

What’s in the Cabinet

Map news

What’s new?

Made in China

Humans first, workers second

Venture forth

We need fair competition