SHIP MANAGEMENT INTERNATIONAL ISSUE 104

Michael Grey Angeliki Frangou

Arsenio Antonio Dominguez Velasco

Szymanski

July/August 2023 | Issue

STRAIGHT TALK

Urgent need to address the risks of battery fires

It is ironic that the same week that the IMO requested seafarers’ feedback on the effectiveness of the International Safety Management (ISM) Code which became mandatory 25 years ago, the Fremantle Highway car carrier turned into a blazing inferno off the coast of the Netherlands, burning uncontrollably for several days and resulting in the tragic death of one seafarer.

The investigation into the cause of the accident is still ongoing but an intercepted radio message from a crew member identified the battery of one of some 500 new Electric Vehicles (EVs) being carried onboard as the location where the fire started.

SMI had already co-hosted a webinar

with Stream Marine Training a few weeks before, highlighting the dangers of lithium-ion batteries - an edited transcript of which is included within these pages.

Industry concern over the issue of battery fires onboard ships is steadily mounting, another recent seminar having heard one panellist speak of a matter of seconds between the first sparks being noticed to a full-scale conflagration. Are seafarers being made fully aware of the risks posed by the carriage of batteries, queried another. Others, such as the International Union of Marine Insurance (IUMI), say that EVs may pose “different” hazards to other internal combustion engine vehicles but feel research to

date “suggests that the risks are not heightened or more dangerous”.

Transport insurer the TT Club has waded into the debate, warning that EV manufacturers’ ambitions “for more powerful, lighter and diverse battery cells must not be allowed to outstrip prioritising safety concerns surrounding their future transportation around the globe.”

And the Paris and Tokyo MoUs on Port State Control have just declared the subject of this year’s joint Concentrated Inspection Campaign (September to November inclusive) to be ‘Fire Safety’, illustrating their announcement with a picture of burning car carrier – a sure sign the issue is now firmly in the spotlight.

InterManager Outlook

Is the EU-ETS workable in its present format?

The European Commission faces legal challenges unless pitfalls are addressed before the scheme comes into force next year, writes InterManager Secretary General Capt. Kuba Szymanski.

InterManager has been continuing its examination into the European Union’s Emissions Trading Scheme (EU-ETS) which is scheduled to come into force in 2024. As you will have seen in the previous edition of SMI, InterManager is convinced that the current wording of the scheme will not be workable in practice and places too much reliance on Member States to draft appropriate national legislation. Working on behalf of its members, InterManager, has now sought legal opinion on the draft legislation in its current format and has identified key issues which we believe must be remedied in order for the scheme to be workable in reality.

Now we are warning that the European Commission faces litigation if it targets the one party without effective

influence on vessel emissions, while those with influence go unpunished.

A particular concern for ship managers is the proposal to fine the party responsible for administering the scheme, rather than the owner of the polluting vessel. We are already on record with our point of view that this goes against the concept of ‘polluter pays’ and will fail to encourage ship owners and charterers to adhere to the scheme, which aims to reduce pollution from ships in EU waters.

We are concerned that a legal obligation to surrender allowances is lacking in the legislation. Under the current draft, the obligation to surrender allowances adheres to the obligation to report emissions. The effect of this is that the company named in the ship’s Safety Management Certificate as at 31 December in any calendar year will be

responsible for reporting the greenhouse gas emissions of that ship throughout the entire calendar year, up to and including 31 December, and for surrendering allowances in respect of those emissions. However, what measures can ship managers take against an owner who fails to surrender an allowance for a ship under third-party management?

In drafting national legislation in relation to the operation of the EU-ETS, The EC has advised Member States that, when drafting national legislation in relation to the operation of the EU-ETS, they should make provision for transfer of the costs of the scheme from the shipping company to another entity, stating “Member States shall take the necessary measures to ensure that when the ultimate responsibility for the purchase of the fuel, or the operation

of the ship, or both, is assumed by an entity other than the shipping company pursuant to a contractual arrangement, the shipping company is entitled to reimbursement from that entity for the costs arising from the surrender of allowances.”

InterManager believes the EU Commission is hoping that EU Member States manage to come up with a mechanism under which the Shipping Company can claim the certificates from the charterers, the ones operating the ship in terms of speed, purchase of fuel etc. Unfortunately, the party responsible for surrendering the certificates to the EU Register is still (unchanged to earlier versions) the “Shipping Company”, defined as “the shipowner or any other organisation or person, such as the manager or the bareboat charterer, that has assumed the responsibility for the operation of the ship from the shipowner and that, on assuming such responsibility, has agreed to take over all the duties and responsibilities imposed by the International Management Code for the Safe Operation of Ships and for Pollution Prevention.”

That’s where we need the improvement. Charterers/Owners /Managers must be free to decide who the “Shipping Company” is and register same with the EU Register. The freedom of contract principle applies.

The current draft also endangers shipowners – their vessels could be banned from EU waters due to default of another shipowner on a ship manager’s DOC and the subsequent default of the ship manager itself. A reason why shipowners too should opt for having the right to decide who the responsible party is, not have the EU impose this.

We would consider it materially wrong to hold the ship manager responsible by default. Depending on the local law implementation we would consider the likelihood of litigation

against such a scenario high. InterManager also believes there is a lack of clarity as to how enforceable the scheme will be if both the owner and manager are not based in the EU.

There are some clear pitfalls in the EU-ETS at present and these need to be addressed before the scheme comes into force in 2024. We are hopeful that with further discussions and judicious use of revised contracts the scheme can be made workable and form an important element of shipping’s drive to decarbonisation.

Under current proposals the EU would levy a fine on vessels which breach the EU-ETS. InterManager’s concern is that the fine should be issued to the owner of the polluting vessel. Vessels breaching the EU-ETS face being banned from EU waters and potentially all vessels managed by that shipmanagement company could be impacted by any restrictions resulting from a breach, regardless of who owns them.

Ship managers have highlighted that we have no influence over key aspects of ship operations such as the speed and fuel and the specification of the vessel, which all lie in the hands of owners and charterers and the terms of their contract together.

The European Commission issued a FAQ at the end of July and we have been unable to identify anything particularly different in it. There is still nothing specifically addressing the issue of who will be the regulated entity when there is an ‘ISM Company Distinct From The Shipowner’, i.e. a third party ship manager, involved.

InterManager is seeking to identify workable solutions for its members in order to guide them as to how to effectively operate the EU-ETS once it comes into force.

This is a discussion which will continue in earnest over the coming months! l

InterManager event – Raising the Standard of Shipmanagement

Join InterManager on Thursday September 14th, during London International Shipping Week, as it launches brand new General Principles and a Code of Conduct to raise the standard of ship management across the whole sector.

InterManager welcomes ship owners, ship operators, fellow ship managers, ship suppliers and members of the maritime community to join us at 10.30am to 12 noon for coffee and pastries at Dockside Vaults, London E1W 1BP

If you wish to attend this event, please email: kuba.szymanski@intermanager.org

Notebook

MEPC 80 raises the bar

By Dionysis Diamantopoulos, Key Account Analyst at Baseblue Ltd

The maritime industry has a clear path to follow after MEPC 80 – the 80th session of the IMO’s Marine Environment Protection Committee held in early July. International milestones were also established subsequent to the European definition of the regulatory framework and environmental targets.

With a significantly more ambitious target of achieving Net-Zero by 2050 and introducing intermediary targets, including a 20% reduction of all GHG emissions by 2030 and a 70% reduction by 2040, it is evident that not only Europe but also the UN/IMO are deeply committed to environmental protection and that decarbonization is a top priority.

Despite the differing targets set by the EU and IMO, there is generally a common approach. Europe has implemented economic and technical measures by incorporating the Maritime Industry into the EU ETS and establishing FuelEU. This initiative sets the mandatory requirements necessary for adopting alternative fuels while also assessing the emissions profile of fuels on a well-towake basis.

On the other hand, the IMO has also addressed technical measures by establishing LCA (Life Cycle Assessment) guidelines and presenting the emissions profile of fuels on the same basis. However, discussions regarding economic measures still remain to be determined, despite rumors suggesting the implementation of an EU-like system. It's clearer than ever that the Maritime Industry ecosystem has much to digest and address to achieve compliance, which is of grave importance to retain competitiveness and ensure not only survival but also future success. The new reality dictates that change must be adopted.

At Baseblue, we firmly believe that during times of change, planning and proactivity are paramount. This is why we stay constantly updated on both local and international regulations, all while evolving and embracing new solutions and work methodologies from within. We aim to move away from the traditional and segmented model of trading towards a more proactive and holistic approach.

We believe that there are three pillars upon which every company in the shipping ecosystem must focus. First, optimizing vessel efficiency is of the utmost importance to reduce consumption and consequently minimize GHG emissions. Through our premier software and platform, we assist our clients in fleet monitoring, offering top-tier weather routing services and voyage calculation tools. Additionally, our post-fixing department closely tracks all deliveries in coordination with agents, physical suppliers, and surveyors to ensure seamless operations and comprehensive documentation of sampling and surveying.

Secondly, the integration of alternative fuels, along with the corresponding regulatory guidelines for decarbonization (EU, IMO), highlights the essential need for compliance support. We maintain an extensive global network of alternative fuel suppliers and have already initiated supplies for our clients, bolstered by our ISCC certification. On a daily basis, we guide our clients in transitioning to the new regulatory landscape and offer comprehensive consultation on their global alternative fuel requirements.

Third, as the EU emissions trading scheme (EU ETS) puts a price on CO2 emissions, reporting and paying for these will become essential. European companies are called to report their emissions and “pay” for them by returning allowance titles called EUAs or European Allowances. We have created a specialised emissions module within our software ecosystem that will allow companies to perform easy calculations and save time in their reporting process whilst also being able to budget voyages considering calculations on the EUA costs. Additionally, through our paper trading desk, a regulated entity that can trade in the European Energy Exchange, we can provide both consultation and actual EUAs to our clients.

The waves of the future are moving, and so are we. The real question is, are you ready? l

Therein lies the RUB

Ship managers who agree to manage a ship with a fixed premium P&I insurer that may trade to Russia or Ukraine must do so with great caution.

By Robert Hodge, Director & General Manager, ITIC

It is a condition of ITIC’s insurance that all ship managers are named as fully co-assured on the owner’s insurance, including Protection and Indemnity (P&I) policies. It is also a condition that such insurance is with a P&I Club who are members of the International Group (IG).

ITIC does accept some fixed premium P&I providers on a case-by-case basis. However, caution is required as the insurance market now require that most insurances contain an exclusion for claims arising out of Russia, Ukraine or Belarus - also known as the RUB exclusion. This will exclude any claim arising from the RussiaUkraine war and in any territory or area where the conflict is ongoing.

RUB exclusion is now included within all fixed premium covers, but not in the cover provided by IG P&I Clubs on a mutual basis.

The wording of the RUB exclusion is wide. The drafting of the exclusion was presumably worded to exclude war-related incidents. However, could it be used to exclude a claim which has nothing to do with the war? If a ship has a P&I claim (such as pollution) that has nothing to do with the war but is simply within Russian territorial waters, an unscrupulous insurer could exclude the claim based merely on its location.

A prudent ship manager managing a ship trading to Russia or Ukraine should insist on cover with an IG Club on a mutual basis. Some fixed premium insurers even exclude Russia trading in full. One manager accepted a ship into their management, which, unbeknownst to them, had such a trading restriction. There was cargo

damage in Russian waters, and the P&I insurer denied cover. This left the manager potentially exposed to an uninsured claim if they were sued along with the owner (which is not uncommon).

The above instance highlights the importance of managers asking for and checking the insurance cover for every ship they manage to ensure that: firstly, the P&I is with an IG Club; secondly, they are fully coassured; and finally, to consider the impact of the exclusions under those insurance.

If the manager is arranging the insurances on behalf of the owner, they must consider the potential impact the exclusions have. An ITIC ship manager member failed to recall that the hull policy excluded Cuba. The cover was placed when the ship had been trading under the terms of a charter party that excluded Cuba from the acceptable range. The ship entered a new charter party and was not only trading to Cuba but also sustained a fire in Cuban waters. The ship manager faced a claim for the owner’s uninsured losses of US$ 500,000.

The professional indemnity insurance ITIC offers members does not contain a RUB exclusion. So, for example, if a ship you are managing is detained in Russian territorial waters due to deficiencies and a claim is brought against you by the owner for negligent management of the ship, this claim will not be excluded simply due to the fact of the ship’s location at the time. If ITIC does not insure you, we suggest you check with your insurer on their position. l

Seafarers Happiness Index shows continued decline in Q2 2023

The Mission to Seafarers has published the latest Seafarers Happiness Index (SHI) report for Quarter 2, 2023, revealing a notable decline in overall happiness. The survey, conducted in association with NorthStandard and Idwal, supported by Inmarsat, measures the wellbeing of seafarers worldwide through ten key questions about their work and life. The latest report shows an overall fall in seafarer happiness from 7.1/10 to 6.77/10, compared to Q1 2023.

In Q2 2023 (April to June), happiness levels declined across all question areas, with the most significant drops observed in general crew happiness, shore leave, and workload, showing an approximate 8% decrease. Average seafarer happiness levels have now declined from a high of 7.69/10 in Q4 2022 to 7.1/10 in Q1 2023, and now 6.77/10 in Q2. In another marked contrast to previous years, happiness levels have not risen over the course of the calendar year.

In this reporting period, seafarers expressed their struggles at not yet seeing working and living conditions fully return to pre -pandemic standards, particularly in areas such as crew changes, time spent on board, wages, and shore leave. Other key issues raised by respondents included unmanageable workloads, limited internet access, and inadequate gym facilities.

A major concern was the

shortage of available drinking water. This requires immediate attention, as it was a common problem from those responding to the survey, despite this being explicitly covered by the Maritime Labour Convention (MLC). Rising global food prices have also impacted seafarers, with low company meal budgets and expense cuts leading to insufficient food supplies, sometimes for periods of up to 2-3 weeks.

The Rev’d Canon Andrew Wright, Secretary General of The Mission to Seafarers, said: “It is extremely disappointing to read of contracts being altered or disregarded, leading to payment issues, salary cuts, rising taxes, and increased living costs, as well as such fundamental requirements such as good quality meals, access to shore leave and manageable workloads. All seafarers are fully entitled to expect fair compensation for their hard work, dedication and commitment to keeping international shipping moving.

“It is incumbent upon all of us to address these issues and make the improvements required to enhance

seafarers' working conditions, wellbeing and job satisfaction."

Thom Herbert, Idwal Senior Marine Surveyor and Crew Welfare Advocate, commented: "We at Idwal are deeply concerned by the findings of The Mission to Seafarers' Q2 2023 Seafarers Happiness Index report, which… underscore the urgent need for industry-wide efforts to improve the wellbeing of seafarers.”

The Mission to Seafarers, together with industry partners, is committed to using the Seafarers Happiness Index as a crucial tool to highlight seafarers' challenges and improve their welfare. A recent Executive Roundtable on Crew Welfare, held during Singapore Maritime Week 2023, brought together industry leaders, ship owners, managers, and charterers to identify effective solutions for seafarers' challenges and well-being.

The next phase of the initiative will take place during London International Shipping Week in September 2023, where further progress will be made in transforming feedback into concrete action. l

Next IMO Secretary-General elected

The IMO Council has voted to appoint Arsenio Antonio Dominguez Velasco of the Republic of Panama, for an initial four-year term, as next SecretaryGeneral. He will succeed Mr. Kitack Lim as of 1 January 2024, subject to the IMO Assembly’s approval.

Naval architect Arsenio Antonio Dominguez Velasco, the first Panamanian and Latin American candidate for this position, has more than 25 years of professional experience in the international maritime world, in addition to his contributions as Ambassador and Permanent Representative of Panama to the IMO. He is currently Director of the Marine Environment Protection Division of the IMO, after serving as director of the Administrative Division and head of

Cabinet and of the Organization, giving him the trajectory and experience required for his new position in London.

“It is a historic day that fills us with great pride,” said the President of the Republic of Panama, Laurentino Cortizo Cohen, who had formally proposed the candidacy of the country for the top post at the IMO under the slogan: “Taking the initiative for a united and better future”.

Guy Platten, Secretary General of the International Chamber of Shipping (ICS), commented: “It has been a great pleasure and privilege to work with Kitack Lim over the past eight years.

Kitack steered the IMO successfully through challenging times, calmly and with direction, and everyone at the ICS wishes Kitack every success in his future endeavours. We look forward to working with Mr. Arsenio Dominguez and know that [he] will lead with equal measures of authority, purpose and compassion.”

It is understood that the Panamanian candidate won the final round of the IMO Council election with more than half of the total votes cast, ahead of runner-up candidates from Turkey and Finland. l

Does shipping understand what is or isn’t AI?

By Joe Anderson, Lead Data Scientist, MIS Marine

Artificial Intelligence (AI) has caught the headlines in the past weeks and months. No longer reserved for sci-fi films or computing professionals, AI entered the world’s mainstream vocabulary at light speed at the end of 2022 with the advent of Chat GPT.

And in shipping, it remains a major talking point, as Nor-Shipping proved back in June. But has it now become a misnomer and catch-all term for many specific and complex topics when usually it’s nothing more than sped-up computational logic with a few elements of AI at its core?

So, should we be afraid of this future dominated by ground-breaking technology? Or are we facing a golden age of shipping where human and digital technology walk hand in hand?

AI is undeniably critical to shipping’s most vital of challenges - decarbonisation. We can use it to support data analysis as the new and incoming scope regulations bite, with more on the horizon.

The best example of this is the Carbon Intensity Index (CII) model - a good concept with the challenge of blunt implementation. The requirement for ship owners and operators to identify their CII rating for the previous year enables the idea to be skewed and taken advantage of depending on the stakeholder.

However, by combining advanced analytics with AI you can use the same IMO equation to calculate CII but include additional available industry data for a vessel – e.g. energy, emissions at different speeds, and weather on route amongst others - to measure carbon emissions every five minutes.

This ability to bring additional transparency to the CII will enable the cheapest direction of travel for carbon taxes, and also lays the foundation for stakeholders to openly promote these voyages. However, this analysis is only possible with the industry’s more nuanced and human interpretation of data for each vessel, which will ultimately enable our sector to take greater strides towards decarbonised shipping, faster.

Speed is of the essence whilst we’re in the midst of a digital transformation. And, while there are leaps and bounds being made by ground-breaking solutions, the level of human intelligence required to manage and analyse multiple functions in our industry cannot be replicated by AI alone. It’s this partnership of human and artificial intelligence that will be the key to making successful and efficient progress in the face of our industry’s multiple challenges.

Ultimately, AI gives everyone the opportunity to deliver far more productive and higher-quality tasks within the limited time that we have when it comes to analysing the vast volume of data that’s now become the daily norm for shipping. l

Joe Anderson, Lead Data Scientist, MIS Marine

First Person

‘The future is human. The future is us!’

Melina N. Travlos, President of the Union of Greek Shipowners

Speaking at the Delphi Economic Forum earlier this year, Union of Greek Shipowners (UGS) President Melina Travlos was unequivocal. “This new era has a new challenge, a new philosophy,” she said. “The one where ‘business’ and ‘well-being’ coexist. The one where the human is in the epicentre. The one where the ‘I’ recedes and the ‘we’ retakes its place. Sustainable growth requires sustainable people.

“So, let’s put the parameter of well-being at the heart of development in this new era. The challenge, but also the solution, is to protect the human value and coexistence. Our future, the future of humanity, is the human himself. The future is us!”

Elected UGS President last year, Ms. Travlos is the Chair of the Board of Neptune Lines Shipping and Managing Enterprises SA, which has

been active in Greece for more than four decades in the field of maritime transport, as well as of Neptune Dry Management Company, which operates in the field of dry cargo. She also sits on the Board of numerous maritime-related societies as well as serving as the Honorary Consul of Denmark in Piraeus. Born in Athens, she holds a Business Administration Degree from Northeastern University, Boston, USA.

People always were and will always be my priority and hence at the centre of what we do

Melina N. Travlos

Notably, Ms. Travlos is also a founding member as well as President of the Greek Shipowners’ Social Welfare Company SYN-ENOSIS, developed by the UGS to embody the collective social responsibility of the Greek shipping community, as well as a founding member of Axion Hellas, targeting vulnerable groups in the outermost regions of Greece. In addition, she participated in the foundation of the nonprofit organization that supports entrepreneurs in emerging markets, Endeavor Greece.

Founded in 1916, the UGS represents Greek-owned vessels over 3,000 gt under Greek and other European and third country flags.

Today Greek shipping represents nearly 60% of the EU-controlled fleet and over 20% of the world deadweight capacity.

“Greek shipping is Europe’s superweapon,” Ms.Travlos said at the Delphi Economic Forum. “It is a national economic partner, providing billions of euros in maritime foreign exchange and hundreds of thousands of direct and indirect jobs, steadily investing in various sectors of our national economy. It is a national asset; it is our national pride. The national beneficence and social solidarity towards the motherland and the Greeks are consistent, silent, and broad.”

In a recent interview in the International Chamber of Shipping’s ‘Leadership Insights’, the UGS President expanded on these views. “I

am a strong advocate of teamwork,” she said. “Our mission in the UGS is to serve and protect the common interest of our members to the best of our ability and we succeed in this through collective efforts. People always were and will always be my priority and hence at the centre of what we do.

“At the same time, promoting and further advancing the maritime profession by attracting young talented people and offering them high quality training – is also a strategic priority intrinsically linked with the sector’s longevity and success. Maritime know-how is key both at national and at EU level. In Greece we are particularly proud of our seamanship. Our seamanship is our history, it is our culture, and we must safeguard it.

“Overall, my vision and prime concern is to highlight in every way the vital role of shipping to every citizen in Greece, the EU and around the world. Since politicians and the wider public do not have a clear perception of its indispensability, it is our duty to educate them accordingly.”

The collective spirit of shipping and its indispensable workforce has also been key to how the industry has continued working despite the recent turmoil of first Covid and then the Russia-Ukraine war, she went on to point out. “Despite this turbulent landscape, our people, our seafarers, worked tirelessly to keep the supply chains open. Thanks to their professionalism, persistence, and dedication our ships always reach their

destination and every citizen in the world has access to food, medicines, energy and all other essential goods.

“Our sector is a pillar of stability in a state of flux and has proven its resilience throughout history. We need to make sure the strategic role of our sector is acknowledged. It is our duty to ensure that. Through collaborative thinking and shared effort among all players within our industry we can successfully overcome whatever hardship the future brings.”

As regards decarbonisation, Ms. Travlos has stated that the UGS fully supports the IMO’s new GHG strategy of achieving net zero by or around 2050, as well as its ambitious indicative checkpoints for 2030 and 2040, slipping in the vital proviso that future fuels must be safe for the seafarers that will have to handle and sail with them.

“It is imperative that IMO ensures that the transition to alternative fuels and technologies is safe for the ships and their seafarers,” she said, “and also that it urgently adopts a levybased economic measure regarding GHG emissions, alongside the simple, goal-based fuel standard as proposed by the industry. This will be a practical method which is necessary in order to help reduce the cost gap between conventional and alternative low-carbon fuels and without which their availability and utilisation will not be satisfactory.”

In short, the UGS President has her eyes firmly fixed on a future that is kinder to the planet, in keeping with her strong humanist vision of shipping as a key enabler of human well-being. l

Deadly dangers of battery fires Dispatches

An inferno engulfed the Fremantle Highway car carrier, operated by “K” Line, in the North Sea off the Netherlands in late July, tragically resulting in the death of one Indian seafarer. The fire reportedly started in one of around 500 Electric Vehicles (EVs) of the 3,800 new automobiles being carried onboard, once again focusing industry concern on the danger of lithium-ion batteries spontaneously combusting. This vital topic had been the subject of a Ship Management International webinar, held in association with Stream Marine Training, just a few weeks before.

Stream Marine training group offers bespoke training consultancy in the use and handling of new and alternative fuels under the name Stream Marine Technical. It has already provided training and advice to some of the world’s largest shipbuilders, ferry companies and cruise lines, and its safety courses include the prevention and management of shipboard battery fireswhich result in the release of toxic gases (such as carbon monoxide and hydrogen cyanide), very high temperatures and can spread very rapidly.

Tim Springett, Policy Director at the UK Chamber of Shipping, kicked off the webinar by outlining the nature and potential scope of the problem that will gradually

affect other types of vessels besides specialised car carriers for new vehicles.

“Well, it seems like stating the obvious,” he began, “but the proportion of vehicles carried on ro-ro ferries that are powered by lithium-ion batteries, which I shall call LIBs, is increasing, and this is likely to continue. Hence there is a high probability that over time, ageing electric vehicles with deteriorating LIBs will be brought on board by passengers wishing to carry them or have them carried by sea.

“In addition to that, there is of course a wide range of products containing LIBs that are being brought onto ships, including electric scooters and bikes, plus of course

Jan Polderman, Kelly Malynn, Tim Springett and Tony Int’ Hout Scan QR code to watch Webinar

laptops and mobile phones. Now, barely a day goes by without a news story somewhere about an e-scooter fire. LIBs are also carried as cargo in containers, and if one of those were to overheat and to go into thermal runaway [i.e. an uncontrolled chain reaction of increasing temperature] what chance would anyone have of preventing a spread to other contents. Even though we’d be talking about newly manufactured LIBs, it’s a danger that has to be considered.”

Mr Springett noted that there had been 387 ‘verified’ LIB fires between 2010 which may not sound a lot but there had been a lot more ‘suspected’ ones, he added. “This is the challenge that we face. It’s really a case of obtaining reliable information on which ship operators and their advisors, whether they’re regulators, surveyors, classification societies and so forth, and of course insurers, can base their risk assessments.”

He went on to detail how a LIB’s state of health is crucial. Most LIB fires have involved batteries that have been damaged in some way, he pointed out, adding: “It’s often said that a fully charged LIB has a higher ignition risk than one with a low state of charge, but what is less clear is by how much

protection suits, he added, and whether bespoke LIB fire suppression systems are in in existence.

Mr Springett concluded by saying that it’s possible that the UK Chamber of Shipping will lobby for legally enforceable standards for LIBs, specifically those that are used to power electric vehicles that are accepted for sale and use in the UK.

the risk increases, how significant it is in reality. One thing that we found out is that the risk of a toxic vapour cloud explosion is greater in a battery with a low state of charge. Rapid charging is said to increase the fire risk.”

As regards people wishing to take their EVs on ferries and charge them on board, he cautioned that “some companies allow it, but by complete contrast, there’s one Norwegian company operating domestic ferries that has completely banned the carriage of electric vehicles.”

Then there is the nature of the fires that batteries can cause, which are particularly quick to ignite and fierce burning. IMO STCW (Standards of Training, Certification and Watchkeeping) firefighting requirements are based on entirely different types of fire and burning materials, Mr Springett noted, and “whilst they probably don’t predate LIBs themselves, they certainly do predate current levels of usage, so this is another thing that needs to be addressed, what are the appropriate requirements for training going forward.”

The same problem applies to identifying what standards and specifications are needed for fire

“We want to get some work out, some recommendations, some guidance, and a proposal that can be turned into regulation really by the end of this summer,” he said. The Chamber has formed an ad hoc working group and set up two subgroups that are looking at developing guidance for crews and guidance on fire suppression. Any proposal for UK regulation that results may then be shared with the EU, he said, and later more widely with IMO.

Tony Int’ Hout, Director of Stream Marine and Technical, then gave an in-depth presentation on the different types of batteries – i.e. lead acid, alkaline based batteries and lithium ion batteries - and their perceived fire risk. He explained that fires normally result from various initiating causes, such as damage to the battery following a collision, incorrect charging regime or wrong charging, incorrect installation, a battery being incorrectly stored, or a malfunction of the battery.

Addressing the current training requirements for crews, Mr Int’ Hout, said: “The regulations are not really robust enough yet. Even if you have 85 firefighters onboard, similar to a standard cruise ship, they can respond to the fire very quickly, but the challenge lies with dealing with a battery fire, they are very hard to put out. We do not have enough training in fire safety with any of the alternative fuels that are coming into the industry.”

Next webinar speaker was Jan

Polderman, a founder member of BlueTack, an emergency response cooperative. He pointed out some of the differences in handling battery fires and the toxic vapours they produce. For example, “a normal reaction with a fire is try to keep as low as possible,” he explained, “because the fumes are high in the compartments, so you stay below the smoke level. But that doesn’t apply, for example, with battery fires. Going low, there, the toxic vapours are heavier than air. There’s also an added risk for electrocution if you approach an electric fire with normal methods, like spraying with a fire nozzle, water over the fire.

Mr Polderman detailed how the experience with electrical fires in vehicles onshore is to create an exclusion zone around the fire, special fire blankets have been introduced as a solution, he informed, “but explain to me how to get a fire blanket around cars in [tight] stowage.”

Polderman concluded by pointing out that little research had been carried out to date on how to handle onboard – as opposed to shore-

based - battery fires. ‘So what we propose from the salvage industry is that we do a structured approach with collecting all the data on incidents, collecting it, analysing it. We develop new systems and redevelop existing systems, test new ideas, and think that is very important, test it, and again, in situations that are really similar to what you can expect at sea. Develop systems based on all this data and analysing information, training for the responders, and build further on the experience.”

Kelly Malynn, ESG Strategy Lead for Marine at insurers Beazleys, detailed how already there’s been a 70% increase in fires on superyachts in the last few years, “and around a third of those we believe are due to thermal runaway of ‘water toys’ {i.e. jet skis etc.) stored on board. So, we’re bringing in underwriting assessment questions and wordings where we’ve seen that claims trend, and this will continue into the cargo space. This will continue into the passenger ferries and the ro-ros.

“We will be looking for best practice above and beyond the regulations, because as it’s been said,

the regulations tend to follow large incidents. What we’re looking to do is trying to mitigate the likelihood of those incidents before they happen. Nobody wants to have a claim of that nature, and so we will be bringing in additional questions around, “Have you got thermal monitoring of your cars that are stored? Are you allowing charging onboard?” And if you’re transporting lithium batteries as a cargo, the questions will be about how those are being stored, how many firefighters you have on board. All of the key points that we’ve heard today will start to become underwriting insurance considerations.”

Moderator Sean Moloney, Publisher of SMI, ended by thanking all the panellists for what he said had been a very enlightening discussion on a most important topic where future developments would be followed with great interest. l

A full recording of the SMI/ Smart Marine Training webinar is available on the SMI website: https:// shipmanagementinternational.com/ webinar_video/deadly-dangers-ofbattery-fires/

VIKING Life-Saving Equipment has just launched an offer of dual equipment that it recommends be carried on each deck of a vessel carrying EVs. First is a special Bridgehill fire blanket, used to isolate the fire and prevent it spreading, and the second a portable Rosenbauer BEST system, which it claims is “purpose-developed to extinguish high-voltage lithium-ion batteries in EVs, with the firefighter using a piercing stinger attached to a hose to penetrate the battery housing and flood the cells, rather than the deck. Direct cooling stops the chemical reaction in the cells and consequent thermal runaway.”

Netherlands Coastguard

Alternative Fuels

What to look out for when buying biofuel bunkers

By Glander International Bunkering

Biofuels have rapidly emerged as one of the most popular alternative marine energy choices over the past few years as the shipping industry bears down on its greenhouse gas emissions, with IMO and EU regulatory drivers incentivising their further uptake over the short term (see infographic right).

The advantages of using biofuels are clear: they work as a drop-in alternative to conventional bunkers, with little or no changes needed to ships’ engines or delivery infrastructure to use them, and result in net reductions in GHG emissions based on their full lifecycle assessment when produced from second or third generation (sustainable) feedstocks.

Biofuels already help buyers today meet their ESG targets and will soon be one of the solutions to meet the mandatory blend-in requirements as set out in the FuelEU Maritime Regulation, starting in 2025.

Bunker buyers can take on these fuels immediately, without significant up-front investment or any long-term commitment to them.

Biofuel volumes

Demand for these fuels has grown rapidly during the past months.

Rotterdam saw 791,000 mt of sales for biofuel/marine fuel blends last year, up by 163% from 2021, while Singapore

kicked off biofuel sales in 2022 with 140,000 mt of blended product sold in total. The main products in ARA are B30 and in Singapore B24, which means 30% respectively 24% of biofuel blended with conventional marine fuel. The fuels are already available at a wide range in other ports, and volumes can be expected only to climb in the coming years.

These sales initially came in the course of trials from shipping companies looking to try out the fuels in their engines on a one-off basis, but regular sales are now increasingly being seen.

The first thing to note about biofuels in the marine fuel space is that when we talk about them, it’s almost always blends being referred to, typically with up to about 30% biofuel content mixed with VLSFO, HSFO or MGO. Higher ratios of biofuel content, even up to 100%, have been shown to work in conventional engines but are as yet rarely used.

Which biofuel?

Beyond choosing the appropriate conventional fuel grade for the blend, the provenance of the biofuel

component is a key consideration.

Biofuels such as Biodiesel or HVO are produced from a range of biomass feedstocks, with varying degrees of environmental credentials.

The feedstock types are divided into generations: first-generation biofuels are produced from food crops on arable land, the second generation come from waste products from industries like fish processing, while the third are sourced from more advanced sources like algae.

Products produced from firstgeneration are increasingly frowned upon by various groups both for taking away arable land and for not delivering sufficient net reductions in GHG emissions, particularly when sourced from palm oil, and may increasingly face legal restrictions in the coming years.

For that reason, first-generation biofuels are considered as ‘fossil’ under IMO regulations and will not play a role in decarbonizing the shipping sector. Production of biofuels from secondgeneration is currently being expanded significantly, but output levels cannot rise indefinitely without sufficient waste

feedstock, and a range of industries including aviation will soon be competing aggressively for access to these fuels. And production of the third generation has yet to take off in a significant way.

A certified supply chain

Guaranteeing the origins of the biofuels is another important consideration, to ensure that the emissions savings are genuine and have not been double-counted.

Quality tests and costs

Even though biofuels are an excellent low-carbon solution and drop-in fuel, there are parameters to look out for that may be less familiar to buyers used only to conventional fuels. The ISO 8217 tests used for conventional bunkers work as an initial check of relevant quality parameters of the blends, however fuel quality firm VPS also recommends carrying out tests looking out for the following parameters:

• Renewable content

• Oxidation stability

• Energy content

• Cold flow properties

• Corrosivity Considering costs, this can vary significantly around the world according to local regulations, availability and last mile delivery. In Europe biofuels

In drawing up their guidelines for biofuel bunkering, Singapore’s authorities as an example have recommended that buyers only take on biofuel blends that have been certified by the ISCC (International Sustainability and Carbon Certification). The ISCC certification ensures that biofuels meet internationally recognized sustainability and traceability standards. Assessing the sustainability credentials of biofuel producers, verifying the compliance of their production processes, and ensuring transparency throughout the supply chain is key when purchasing biofuels. IMO has also just adopted a guideline on biofuels defining the criteria for a sustainable biofuel and how it should be reported into the IMO Data Collection System.

demand will be driven by FuelEU Maritime regulation, mandating for GHG reduction in shipping as of 2025, which will have an effect on biofuels prices. Though today bunkering for example in the Netherlands can benefit from subsidies that can apply to biofuel bunker sales and reduce their net costs significantly. In the US the lack of similar measures has meant the marine biofuel market has yet to emerge in a significant way.

In Singapore, recent market analysis has put the cost of a B30VLSFO blend at a premium of 20-30% over VLSFO prices.

Ultimately, most of the pitfalls around buying biofuel bunkers can be avoided in the selection of an experienced marine fuels firm to help with the purchase. An ISCC certified and well-established company will be able to guide shipping companies through every stage of decision-making, from quality assurance to emissions planning and reporting, delivering peace of mind to the buyer. l

UK Charter to protect seafarer rights

By Reed Smith admiralty manager Voirrey Blount

In late July the UK government launched a new Seafarers’ Charter in conjunction with the French government. This Charter is the next step in the fight to protect domestic seafarers in the UK and builds on the Seafarers’ Wages Act which was made law in March 2023. Both documents are part of the UK Government’s Seafarer Protections Nine Point Plan which was published in July 2022.

The aim of the Charter is to ensure proper employment protection for all seafarers including being paid and treated fairly, irrespective of the flag of the vessel or the nationality of the seafarer. In general, the requirements of the Charter build on the protections already laid out in the Maritime Labour Convention 2006 (MLC) and it is specifically stated that nothing within the Charter is intended to change the minimum requirements of the MLC.

The Charter already has the support of a large proportion of the cross-channel ferry operators with all UK ship operators being encouraged to sign up to the voluntary agreement. Operators can apply to the scheme by submitting evidence of their compliance with the standards of the Charter to the Department for Transport, noting that it is only required to demonstrate compliance for routes that have a UK call. The Department for Transport will then review the provided evidence against the standards and, if successful, the operator will be awarded Verified Seafarers’ Charter status. This status is then reviewed on an annual basis.

To meet the standards of the Charter, UK ship operators must be able to show:

• They are paying at least the National Minimum Wage equivalent to all eligible seafarers i.e. those covered by the Seafarers’ Wages Act

• They are paying overtime at a rate of at least 1.25 times the basic hourly rate in the seafarers’ employment agreement. Basic hours are not to exceed 48 with any work over 48 hours being overtime.

• Adequate training and development is being provided to all seafarers, including cadets and trainee ratings.

• The seafarers’ contracts of employment are not voyage contracts (except in exceptional circumstances), provide for

adequate rest between engagements and do not contain any charges for seafarers with respect to their accommodation.

• They have in place provisions to provide seafarers with the minimum standard in the MLC for an array of benefits including sickness, pension and maternity. There should also be provisions for paternity and adoption within the policies.

• All roster patterns take into account the intensity of the route, fatigue, mental health, safety, welfare and operational manning. Risk assessments must be submitted with the rosters. Seafarers must be provided with shore leave between their roster patterns or when the vessel is in port and the seafarer is off duty.

• Adequate rest is being provided between shifts.

• All crew have received adequate familiarisation training on the vessel they are working on.

• Drug and alcohol testing is being done at intervals of no longer than 12 months, on both a regular and random basis.

• There is nothing new or surprising in the Charter for operators who are working in compliance with the MLC to be startled by.

Reputable operators should not be afraid of signing up to the Charter and it should help to weed out rogue operators who are not providing proper protections to seafarers - looking for the verified status will provide an easy way for seafarers to check they are working for an operator that will treat them fairly.

It is well overdue that seafarers are receiving the same employment protections as other UK workers, it is very easy to adopt an out of sight out of mind approach to the shipping industry and those working in it. Whilst currently this only applies to vessels operating with calls to UK ports, there is possible scope for the rules to be extended to UK flagged vessels in the future which would greatly enhance the protections for seafarers. The UK government has plans to further expand the protections including the development of a statutory code of practice which will make it explicitly clear to operators/employers that they must not use threats of dismissal to pressure employees into accepting changes to their terms and conditions.

It remains to be seen how many operators will sign up for the Charter but it is certainly a hopeful sign that so many Channel operators have signed up for the initial launch. l

Crew Training The changing nature of maritime training

An

exclusive SMI interview with

Raal Harris, Chief Creative Officer of OCEAN Technologies Group (OTG).

Q) How has the perception and nature of maritime training changed in recent times?

Raal Harris: From a perception point of view, guess a lot of changes stem from how the technology and tools available have evolved. When I came into the business in 2004 there were always people who thought training was important, but it was almost separate from work. It was all about compliance and evidence about what you’ve done, rather than something crucial to underpinning performance. And I think that is the journey we’ve been on.

There are still pockets where people think about training as something separate and primarily to do with compliance. Perhaps ‘crew learning’ is a better term. And I think there’s more to do in terms of seeing training as part of a personal development culture.

As regards to how maritime training itself has changed, it’s become multimodal – now we’re able to deliver training in all sorts of ways. These can either be ‘asynchronous’ where people are learning individually in their own time, or ‘synchronous’ where they’re learning together in real-time. I think a blend of these is important as it gives a chance for people to all come up to the same level and produces a richer learning experience.

A mixture of remote and in-person learning also means you don’t have to worry about geography and can bring together people with different experiences and perspectives. You can do virtually everything this way now. Take cloud-based simulation, for example, where today you have the software for this to be done on virtually any decent PC. You have simulators for navigation, ECDIS, cargo control, ship handling etc. Then there’s VR (Virtual Reality) as well, where you can connect two or more people remotely and you can familiarise and work through a common task in the bridge or engine room.

And the speed with which you can deploy such learning tools after an incident is another big advantage, sharing the lessons learned quickly rather than having to bring everyone together in one place.

Also, what we’re seeing is a move from seafarer training being almost entirely prescriptive. Now we’re moving to a learner-led situation where we can identify the knowledge gaps to be closed and provide them with the materials they need. So we’re moving to a ‘just in time’ model and away from a ‘just in case’ one.

Q) How have advances in technology changed the delivery methods of training?

Raal Harris: The maritime e-learning journey probably started in an analogue form with videos in the 1970s, moving to DVDs and then e-learning itself. All that was an evolution of video or film in one way or another – taking physical material and putting it on ships.

Once you move to digital you can start recording activities, and the challenge is then getting that material to where you want it to be. Digital delivery is obviously what you want, but we are still a long way from having universal coverage – it depends where you are and what the available connectivity is. But as more and more ships light up and bandwidth increases, it becomes easier. If you want to learn lessons quickly you don’t want to wait to get a USB stick in the post.

But getting material to where you want it to be remains a ‘pain point’, it is still an evolving space. There’s a whole lot of bandwidth used for operations and crew communications, but the amount assigned for training is still limited. When I started out you had to keep attachments to under 1MB. Now you’re collecting much more material and transmitting much more data, the exact limit depending on what individual package the ship is signed up to. And why that matters is when you’re trying to keep data really small, you only keep minimum data records; now that’s opened up you have a much fuller picture to analyse.

Q) How do seafarers choose to access training courses?

Raal Harris: When people are home from ship their time is very precious. So they value being able to do training without having to travel to shore-based centres. We also have an online shop where we have pay-as-you-go courses – to get extra training, for continual professional development for example. Sometimes seafarers pay for this, sometimes companies. There are certainly a cohort of seafarers that are savvy about managing their own careers and certification. And this process is likely to increase with future fuels. The more multi-access we make the material, the more people use it, like in every facet of our lives. The latest iteration of our learning app allows you to download material online, and then work offline where there’s

no connection – on buses, trains etc. We expect to see a big uptake on account of this.

Of course, the more material you want to access, the more it costs. But as always for the shipowner it’s a cost-to-value thing, an investment. Better trained seafarers lead to less incidents, accidents and detentions. Having multiple methods of accessing material also makes your operations more robust to disruption, we saw during the pandemic for example that people who had already had access to online training were massively advantaged.

Q) How are the concepts of personalised learning and adaptive assessment being applied in today’s maritime training?

Raal Harris: We’re trying to move towards self-directed learning and away from the ‘cookie-cutter’ approach of ‘people at such and such a rank need to learn such and such things’. In my experience, a one size fits all approach is rarely the answer. You have to start by assessing people’s needs and piecing together what they require. It’s all about making training as efficient and effective as possible and relevant to the user, avoiding them being demoralised by thinking ‘I already know this, or ‘how is this going to help me?’.

Q) What ‘soft’ skills are included in maritime training today?

Raal Harris: The importance of ‘soft’ or non-technical skills content, such as communication, leadership and other ‘human’ rather than technical skills, is increasing all the time. This is in line with the realisation that people make decisions for different reasons. It’s about addressing behavioural competencies. And concerns with mental health issues and how to support them are one area in particular that’s really growing.

Q) What do you see as the future challenges for maritime training?

Raal Harris: I would like us all to think about how people are readying themselves for all these big changes that are coming such as decarbonisation and future fuels, and how you address that skills gap. And then there’s everything that goes into ESG, including the ‘S’ factor, that companies need to think about and start building a learning and development strategy for. Put that in place now and you’ll be in a better position for the future. l

Raal Harris, Chief Creative Officer of OCEAN Technologies Group (OTG).

Digitalisation

Shipping’s cultural reset – data-powered safety and accountability

The maritime sector must embrace a new culture of transparency and accountability to not only comply with growing reporting and regulatory requirements, but to also unlock new avenues for greener, smarter and more efficient sailing, writes Esa Henttinen, EVP for Safety Solutions, NAPA.

For an industry that’s about 5,000 years old and moves approximately 90% of the world’s goods while navigating some of the most challenging environments on international waters, shipping is bound by numerous regulations, and seafarers are inherently accustomed to processes and paperwork.

But while there has always been a culture of strict recordkeeping onboard vessels, the data revolution has suddenly moved the goalpost beyond just storing information, to putting that information to good use. In other words, data is the new oil, and everyone is eager to extract value from this newfound resource and improve operational efficiency.

Underpinning this transformation is the question ‘What more can my ship data do for me?’

Shipping’s digitalization has already introduced opportunities for greater transparency and accountability, permeating all levels of operation across departments, both onboard and onshore, and opening new frontiers for reporting and optimisation. And with more data than ever at our fingertips, we are witnessing a complete paradigm shift in the way maritime does business. Everything, from strategic decisions to daily vessel operations, is profoundly affected by new capacities to turn data into insights.

That said, there is also a growing gap between the ginormous amounts of data being captured and the capacity to generate actionable insights from it.

What’s holding us back?

There’s a vast amount of data that shipping companies are already storing but not using. To overcome this, there are

two primary challenges we need to first address: the underutilisation of existing data and fragmented data capturing. It’s well known that 90% of data collected onboard typically stays onboard. This is a missed opportunity, significantly limiting the scope for teams to analyze the data already captured by onboard systems and sensors, as well as noon reports, weather, and more. Thus, the first frontier is digitalization and automation of information collection.

Finding ways to manage and analyze this massive amount of information will be the next critical step for the industry. This is tied to building a more structured and systemic way of compiling, managing and interpreting data, but we don’t need to start from zero. Digital solutions are already making a difference in streamlining and standardizing a lot of these information management processes, from data-gathering to integration and sharing.

For instance, NAPA Logbook can present captain-verified data on a multitude of function reports and daily logs in an integrated and error-free format. Then, leveraging ship-to-shore connectivity, teams can collaborate more closely and in realtime to make the most of this data on cloud-based solutions like NAPA Fleet Intelligence. This enables teams to uncover new efficiency opportunities and improve safety measures, using insights that previously were hidden in paper logs.

It’s almost a no-brainer that integrated data flows like this can make reporting and data sharing immensely easier. Importantly, it introduces safety as a key checkpoint across

decision-making processes, enabling a proactive and collaborative culture where safety comes first.

Passenger ships are leading this change, in part because they are more ‘visible’ to their end customers. This element of accountability makes compliance and reporting on ESG critical to building trust and winning the confidence of stakeholders, from passengers to potential investors.

Who’s watching?

Driven by shifting societal expectations around how companies do business and the growing need to fight climate change, the maritime industry too, is under the spotlight to do better. There’s mounting scrutiny around its sustainability credentials and ESG governance.

In fact, the industry is already facing greater reporting requirements, with the European Union’s corporate sustainability reporting directive calling on large companies and listed SMEs to report on sustainability matters such as environmental, social and human rights, and governance factors. Moreover, the EU Monitoring, Reporting and Verification (MRV) requires ships calling at EU ports to report their CO2 emissions. And it’s not just the EU – the IMO Data Collection System (DCS) is also requiring ships to record and report their fuel oil consumption, based on which their Carbon Intensity Indicator (CII) will be calculated at the end of this year. This is just a snapshot. As regulations become more stringent with stricter record-keeping requirements, data and digital data-capturing tools become even more valuable in allowing crews to manage compliance, simplify reporting, and ultimately improve on those operational parameters. This also shows how reporting requirements can become a foundation for new regulations aimed at improving shipping’s safety and environmental performance.

For many publicly listed companies, meeting mandatory ESG reporting requirements and keeping up with increasingly stringent regulatory obligations is a growing priority. Working with Columbia Cruise Services (CCS), a ship management company that adopted NAPA Logbook back in 2019, we helped them automate the collection and analysis of ESG data, to monitor and action their commitment to sustainable and responsible business practices.

Using NAPA Logbook, CCS transformed their data collecting and reporting processes, making them simpler, more

transparent and automated. This also opened new avenues for data analysis, and as a result CCS is now able to capture vessel performance-related data such as water balance, fuel efficiency, ballast conditions, voyage performance, and more. With stricter regulations, the maritime industry is faced with two options: to get by doing the bare minimum or turn obligation into opportunity. And with more ship data than ever at our fingertips, it’s really the second option that shipping should be focusing on.

What’s next?

While voyage optimisation and fuel efficiency are the most talked about areas when it comes to data and digitalisation, this transformation is powering every aspect of operations onboard and onshore – from greenhouse gas emissions, waste and stability management to equipment safety and maintenance, as well as food and beverage consumption, heating ventilation and air conditioning (HVAC) efficiency, people and cargo flow onboard, and resource management.

Here, electronic logbooks are the real unsung heroes of the industry. For example, NAPA Logbook can be used as a framework for data collection, with endless possibilities to tailor it to the specific needs of a company. In addition to regulatory logbooks, data on everything from fridge temperatures to sanitation logs, hygiene logs, and hospital logs, can be included – depending on what the company wants to measure and improve.

Food waste on vessels can be measured to identify trends, improve practices and ultimately reduce waste. Greywater management can be improved by capturing data on the use of different systems and optimizing cleaning practices accordingly. And with data from Permit to Work modules, trends can be identified with seafarer workloads and downtime, which can help improve work processes and identify any issues that may impact their well-being.

At its core, digitalisation is about data supporting decisionmaking. And this trend is only forecast to grow; the industry will continue to gather more data and, crucially, harness its potential for more informed decision-making and better reporting. Regulatory compliance and ESG reporting depend on transparency and accountability. This new cultural shift will allow us to accelerate towards safer, more efficient and sustainable shipping. l

LONDON retains its UNIQUE ROLE

Does London – and the wider UK – still have what it takes to remain a global maritime hub? Felicity Landon reports on traditional strengths, changing pathways and new opportunities.

To the ‘outsider’, shipping means ships. To the industry, shipping encompasses regulation, law, insurance, classification, ship registers, a wide range of industry associations and NGOs – and that’s just for starters.

English law is still the predominant force in shipping contracts

Nick Shaw, CEO, International Group of P&I Clubs

London has it all and, despite much talk of the maritime pendulum swinging eastwards, London remains a hugely important global maritime hub. This comprehensive, complex maritime cluster has the International Maritime Organization at its heart, and historic strengths such as

Lloyd’s and the traditions of English law on its side. But this isn’t all about history. London is also looking forward, with new arrivals and a particular focus on digitalisation and decarbonisation.

Nick Shaw, CEO of the International Group of P&I Clubs, said: “It starts with the IMO – the UN regulatory body for shipping in what is perhaps the most global of industries – being based in London. Secondly, English law is still the predominant force in shipping contracts. So you have the regulatory body based here and the law that is most often in shipping contracts centred around English law – that’s a pretty good starting point for why London will remain important.”

He also points to London’s importance as an arbitration hub. More maritime disputes are referred to arbitration in London than to any other venue worldwide - the LMAA (London Maritime Arbitrators Association) reported 3,193 new appointments under its terms and procedures last year, an increase of almost 15%.

“On the back of that, law firms and experts who get involved in those arbitrations need to be broadly centred here, or at least have offices here,” said Shaw. “From there, you are starting to build out a strong maritime cluster. In marine insurance, Lloyd’s is still very important for all three major marine insurance classes – cargo, P&I and hull, he noted. Seven of the International Group P&I clubs are based in the UK with large London offices, and the other five have a significant presence in the city. Among them, both The Swedish Club and Gard have recently stepped up their presence in London.

“Most of the other international bodies that support the international maritime regulatory framework are also based here – the International Chamber of Shipping (ICS), the International Association of Classification Societies (IACS), INTERTANKO, INTERCARGO, InterManager, the

International Transport Workers’ Federation (ITF) and ITOPF (International Tanker Owners Pollution Federation).

One of the key reasons for this is the IMO – a lot of organisations have NGO status at the IMO and want to make representations, and that makes it important to be in London.”

Shaw concluded: “In terms of the International Group, we place the biggest or second biggest reinsurance contract in the world. Certainly it is the most high-profile, and it is brokered here in London. A large slice of that goes into the London market, including Lloyd’s.”

There is good evidence that the London maritime cluster is growing, said Jos Standerwick, CEO of Maritime London

“We have seen new shipping entities build their commercial management in the UK – some because of the UK Shipping Concierge [which helps maritime businesses interact with government departments] set up two years ago. We have seen a significant entry into the UK tonnage tax over the past year or so. We continue to see law firms, both UK-based and international, build their presence in the UK. There is evidence that the established P&I Clubs in the UK are bolstering their presence and with the NorthStandard merger we have one of the biggest P&I Clubs globally in the UK. We have also seen the likes of Taylor Maritime issue IPOs in London.

“There is a real opportunity for asset management operations in the UK; as new capital comes into the market that will be required to decarbonise, and we see the enhanced importance of ESG coupled with transparency in the shipping industry, the sorts of structures that will come out of that are well suited to jurisdiction within the UK. We have seen a growth of asset management in the UK and, if we get the offer right, this is a potential area of significant growth.”

Standerwick also highlighted English law: “It is still

Mark Jackson, CEO, The Baltic Exchange Robert Ashdown, Secretary General, IACS

Jos Standerwick, Chief Executive, Maritime London

nearly ubiquitous in shipping contracts and charter parties and, as a consequence, London maintains a significant proportion of marine insurance and shipbroking globally. More than 30% of global marine insurance premiums are put through the London market. London is still the leading hub for ship brokering, especially for the tanker and dry bulk markets.”

Chris Shirling-Rooke, CEO of Maritime UK, said: “The success of London International Shipping Week continues to prove we are the world’s natural home for maritime. But it’s not just about London. The popularity of LISW in recent years has been driven by a maritime renaissance across the UK. Our infrastructure, services, people and heritage set us apart and ensure we’ll remain a maritime hub for decades to come.”

There are numerous reasons for the UK’s attractiveness, he noted, “but ultimately it comes down to one crucial factor – our people. As an island nation with a deep-rooted maritime and trade heritage, we embrace diversity and cultivate a welcoming environment. It’s this aspect that makes our country an attractive destination for conducting business.”

The Baltic Exchange has a physical presence in Singapore, Athens, Shanghai and the United States, but remains London headquartered. Mark Jackson, CEO of the Baltic Exchange said: “Our origins can be found in an 18th century London coffee house, where shipowners and merchants would meet to discuss trade. Whilst our trading floor days are behind us, we still think that London is the perfect location for an organisation which represents a global community of shipping interests.

“Being based in London puts us at the heart of the international shipping markets. We are in close proximity to large and small shipbroking firms, charterers and traders, as well as shipowners. Also important to us is the presence of the financial markets. Innovations in futures and options trading have enabled the development of a thriving freight derivatives market. As an audited benchmark producer, we employ people with a range of skills. Being based in London gives us access to a deep pool of talent, especially people with niche shipping, financial and IT experience.”

The UK’s main strength as a global maritime hub is the presence of so many interconnected service providers and the network effect this delivers, said Jackson.

“From shipbroking to insurance through to legal and finance-related businesses, shipowners benefit from the presence of so many experts in one city. It’s a place where shipping, tech and finance converge. Language, time zone and the ease of international connections are also critical.”

The International Association of Classification Societies is in London “because that is where the IMO is,” according to IACS Secretary General Robert Ashdown.

“Our meeting structure is built around the IMO’s meeting structure and our involvement with the IMO is our primary focus,” he said. “IACS had a permanent representative at the IMO long before it had a secretary general; that’s because to deliver at/serve the IMO was the primary motivation when IACS came into being in 1968.

Our IMO work makes up 90% of what we do.”

The IMO also pulls in many other associations and organisations, he added – “including our primary

Nick Shaw, CEO, International Group of P&I Clubs

Chris Shirling-Rooke, CEO, Maritime UK

interlocutors, such as ICS, INTERTANKO and INTERCARGO and the International Group of P&I Clubs, which is very convenient. For us, London doesn’t really have any negative factors – it is very easy to recruit staff, it is a good city and attractive destination for members to travel to for meetings, etc. Perhaps the downside is that it is not cheap – but where is these days? Try to do business in Paris or Tokyo and it’s equally expensive.”

The Brexit question has to be asked. Ashdown said: “Brexit has made no difference for us. Most of the employees who come into the IACS office as secondees from outside have been from outside Europe, including India, Korea, China, Japan, etc., so they needed working visas and we have always had to deal with those issues. If anything, obtaining skilled worker visas has become quicker post-Brexit than before.

to long-term strategy, rather than quick wins – and, at the same time, we must maintain a very good relationship with the EU.”

Does the pendulum continue to swing east when it comes to shipping?

Ashdown said: “Shipping always tends to follow the shipowners, who are at the top of the food chain, and services filter down from the owners. An increasing volume of tonnage is owned in Asia and so you see, for example, ship finance moving east, insurance moving east, and the likes of the International Chamber of Shipping, BIMCO and WSC establishing offices in Asia. That trend, a general drift east, is likely to continue.”

Although the IMO’s lease will soon be up for renewal, there are no suggestions it is ready to leave London, said Standerwick. “However, it’s incumbent on everyone in the UK and London maritime markets to ensure that the IMO feels appreciated and knows that we understand how important it is that they are still based here.”

There is widespread optimism about London’s future, visualised by Standerwick as ‘a really great story for London and the UK’.

Our meeting structure is built around the IMO’s meeting structure and our involvement with the IMO is our primary focus

Robert Ashdown, Secretary General, IACS

However, Nick Shaw said: Brexit has made a difference. It hasn’t helped the P&I clubs because a number who are regulated by the PRA have had to expand their office networks in Europe or increase their personnel in the places where they do business in Europe.”

Standerwick said the market has been incredibly resilient around Brexit, but he believes more could be done to take advantage of the UK’s departure from the EU. “The UK could think a little bit more creatively about how it could support the maritime industries in this country, now that we are outside the EU, whether in terms of taxation or the way the government can support capital coming into the market,” he said. “These opportunities would be a medium

“We lean into our heritage as a maritime centre but we are definitely embracing innovation and creating a market fit for the challenges ahead. The level of innovation across the market is genuinely unprecedented. We have more start-ups based in the maritime sector with either a decarbonisation or digitalisation focus in the UK than any other cluster. Look at the ways some of the biggest firms in the market across marine insurance, ship broking, etc., are beginning to embrace technology and the way in which that is changing the service and the way they deliver value to their customers. We have seen a very significant shift in the past couple of years.”

The UK Government ‘gets’ shipping and has been keen to work with the sector in recent years, said Jackson. However, London is an expensive location: “Corporate and personal taxation as well as office rents and the general cost of living are all factors which companies and individuals take into consideration when choosing whether or not to be based in London. London never stands still and to remain a top global maritime hub it will need to continue to be able to attract the best talent, the best ideas and to continue to innovate and evolve.”

Shirling-Rooke said: “We feel that our strongest days as a maritime nation lie in the future. Any impact of Brexit pales in comparison to the pandemic and Russia’s invasion of Ukraine. And yet maritime in the UK continues to survive, and thrive, as it’s done for centuries.” l

LISW23 set to mark event’s 10-year anniversary in style

This year’s London International Shipping Week (LISW23) will be 10-year anniversary edition and promises to be the ‘must attend’ event of 2023, offering more than 300 industry functions and unique networking opportunities.

Leaders from across all sectors of the international shipping industry come to LISW to exchange views and network – regulators, charterers, ship owners, ship managers, bunker suppliers, maritime lawyers, ship brokers, bankers, insurers, insurance brokers, commodity traders and brokers, ship suppliers, port operators, shipping service providers and many more.

LISW is a cluster event, meaning that rather than being centred around an exhibition hall, the organisations supporting LISW run their own events. These are many and varied, and include seminars, cocktail receptions, conferences and product launches, run by international organisations, marine trade associations and individual companies from all sectors of the shipping industry. The week is actively

supported by the UK Government.

This year’s LISW23 also sees important national delegations attending from overseas countries including Cyprus, France, the Netherlands and Gibraltar amongst others.

Some of the many iconic venues that London has to offer will host events during the week, including the IMO building, the Maritime Museum, Greenwich, Tower Bridge and various vessels moored on the Thames.

Two LISW23 events stand out: The Headline Conference on Wednesday 13 September and the Champagne Reception, Gala Dinner and After Party on Thursday 14 September at the spectacular Evolution London in Battersea Park. Both events have surpassed all previous attendance records and both are expected to be sold out well before the week begins.

The LISW23 Headline Conference is sponsored by Tsakos Energy Navigation (TEN). Entitled ‘Reframing Risk in a Complex Market’, it brings together the leading voices in shipping and maritime to debate the most crucial industry issues, including decarbonisation and diversity, and how the contractual and risk sharing agenda can evolve in such a way that cooperation and collaboration form the cornerstones of strategy. Sessions will “explore, inform and suggest solutions” across the entire shipping spectrum, according to the session moderators and Conference Working Group Chair, speaking in a LISW23 ‘London Interviews’ video presentation.

All delegates registered to attend the LISW23 Headline Conference at the International Maritime Organization headquarters building at Albert Embankment on Wednesday 13 September will be invited to the stunning Evening Reception on the rooftop of the IMO building, overlooking the River Thames and Houses of Parliament.

The LISW23 Champagne Reception, Gala Dinner and After Party, sponsored respectively by HFW, ABS and RIF, the French International Register, will welcome up to 2,000 of the world’s foremost shipping industry leaders in a magnificent setting.

A fleet of river boats have been specially chartered to take guests back into central London and the City of London at the end of what will be a glorious evening of top-level networking and fine entertainment.

Full information and booking details for the Conference and Gala Dinner, as well as a latest calendar of all the week’s events, can be found on the website: https://londoninternationalshippingweek.com.

LISW23 is organised by Shipping Innovation together with the Department for Transport, British Ports Association, Baltic Exchange, Maritime London, Maritime UK, The Society of Maritime Industries, UK Chamber of Shipping and UK Major Ports Group. LISW was created and is produced by Shipping Innovation – a joint venture between Elaborate Communications and Petrospot. l

Communications

Evolving satcom space

IEC Telecom is an international satellite service operator offering satellite communication solutions to governments, public institutions, and enterprises across the world. With nearly three decades of engineering expertise, it specialises in digitalisation for the maritime industry as well as providing remote communications on land where GSM coverage is not available and delivering dependable communication for humanitarian operations and special missions; for urban networks, the company also provides a powerful satellite back-up to ensure business continuity.

In June IEC Telecom announced the signing of a Memorandum of Understanding (MoU) with Rivada Space Networks to enable innovative connectivity solutions for land and maritime communications.

The communications landscape is developing rapidly with providers now able to offer first-generation low earth orbit (LEO) satellite connectivity. But not all LEO networks are created equal and what Rivada is now providing is the first true ‘OuterNET’: a global low latency point-to-point connectivity network of LEO satellites. What sets Rivada apart is this nextgeneration unique architecture combining inter-satellite laser links with advanced onboard data routers to create an optical mesh network in space.

This approach to ‘orbital networking’, where data stays in space, enables access to an ultra-secure satellite network with pole-to-pole reach, offering end-to-end latencies similar to or better than terrestrial fibre. By routing traffic on a physically separated network, Rivada provides a layer of defence for any organization that needs to securely share data over long distances.

For the humanitarian sector, IEC Telecom will leverage Rivada’s OuterNET to provide leading NGO agencies with enhanced connectivity for the coordination of humanitarian efforts, the safety of remote workers, the security of NGO assets, and the sustainability of long-term operations. From housing and food distribution to education and medicine, all field requirements will be supported to allow humanitarian missions to expand their reach and multiply their scope of services.

In addition to land connectivity services, IEC Telecom will use Rivada’s OuterNET to provide enhanced ICT infrastructure for the maritime environment, further expanding digitalisation at sea. IEC Telecom offers cyber-secure network solutions optimized for the maritime sector. Powered by Rivada’s OuterNET, these technologies will support digital decarbonisation globally by helping vessels improve onboard operations, leading to reduced fuel consumption.

“This partnership supports IEC Telecom’s commitment to pursue innovation for the best customer experience.

Rivada’s service will allow us to expand our network’s SLA and offer high-throughput data connectivity ‘fibre-like’ in the sky versus DSL-like today,” said Erwan Emilian, CEO & Partner at IEC Telecom Group.

He added: “We are excited to explore cost-effective packages for the humanitarian sector and test the resilience of maritime connectivity in the open sea. We are confident that Rivada is on its way to becoming a key market player in the satcom world.”

Declan Ganley, Rivada Space Networks CEO, said: “We are delighted to be working with IEC Telecom to support their high throughput voice and data services. We are moving full speed ahead to deploy the first true OuterNET, with its unique data-connectivity capabilities. Both of our companies see the importance of providing ultra-secure, highly reliable low latency communications anywhere on the globe.”

Serving crew needs

Separately, IEC Telecom is keen to contribute to the realisation of the Philippines’ 2028 transport vision, the Maritime Industry Development Plan (MIDP).

Nabil Ben Soussia, Group COO of IEC Telecom, commented: “The MIDP has an ambitious agenda, and to meet its targets will require new policies and regulations, as well as significant technological advancement. Satellite telecommunication has a key role to play here in enabling this development.

“At this fastmoving time, it’s important to remember that maritime digitalisation’s success depends on carefully considered implementation. Satcom on board is not only about the hardware or network coverage; it’s about a connectivity system that remains operational at all times, enabling business continuity and reliable crew welfare,” he said.

As the world’s leading supplier of ships’ crew, The Philippines is at the heart of the maritime world and keen to embrace the many opportunities offered by the rapidly growing LEO sector. For the crew, this revolution signals opportunities such as faster access to the internet, real-time communication with home, workplace support, and comprehensive e-learning programmes.

While digitalisation is the key to future changes, crews are the changemakers. As new generations join the workforce, access to connectivity has become a ‘must have’ factor. In fact, according to a recent survey by Dell (TrueList, 2023), technology is a deciding factor in as many as 91% of Gen Z job decisions, highlighting satcom’s key role in talent attraction and retention.

Recognising these trends, IEC Telecom attended the recent PhilMarine event in the Philippines to present its latest LEO/GEO hybrid solution: Xpand Maritime. Powered by Starlink, Xpand supports heavy-

consuming business and welfare applications. Should the prime link go down, the system will be automatically switched to an L-band network with a set of optimised applications, supporting digital operations in a low bandwidth environment both for critical operations and crew communication.

Xpand comes with an advanced ICT toolkit, including remote network management, a crew voucher system, and a wide range of value-added services. The whole set-up can be tested, updated or upgraded seamlessly while the vessel continues its course. By optimising the operational cycle onboard, Xpand helps to decrease costs and reduce the vessel’s carbon footprint.

Importantly, Xpand also offers many cyber-security add-ons, from basic cyber shields to fully encrypted communication channels, making it invaluable for special operations at sea too.

“We are delighted to unveil the Xpand portfolio to the Philippines and Asia-Pacific region,” said Mr Ben Soussia. “This smart solution has been designed to harness the benefits of LEO connectivity. These are exciting times for satellite communications and we’re looking forward to working with many sectors of the maritime community to help them progress their digital journey.”

IEC Telecom Group delivers worldwide with regional offices across eight countries: France, UAE, Kazakhstan, Norway, Singapore, Sweden, Turkey and Spain. l

SWOT ANALYSIS OF

departing from, or headed to, Cypriot ports.

A SHIPPING CLUSTER

Taking its cue from the title of Cyprus Shipping Chamber event on low- and zero-carbon fuels earlier this year, SMI decided to carry out its own SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of the Mediterranean’s island’s position as a leading shipping hub ahead of this year’s Maritime Cyprus event.

The strengths of Cyprus as one of the world’s leading shipping hubs are well known. Home to one of the world’s largest concentrations of third-party ship and crew managers, as well as one of the European Union’s largest flags, the island’s industry centre of Limassol (a.k.a. Lemesos) hosts a wide array of maritime services enjoying the full support of the Cypriot government and a highly proactive shipping association, the Cyprus Chamber of Shipping (CSC).

The island also enjoys a close relationship with Brussels, the country’s immediate past Shipping Deputy Minister, Vassilios Demetriades, having previously worked as Policy Officer in the Directorate General of Mobility and Transport of the European Commission, dealing amongst other matters with the coordination of the EU maritime transport strategy; while current President of the European Community Shipowners’ Associations (ECSA) is Philippos Philis, Chairman and CEO of shipping group Lemissoler Navigation and a past President of the CSC.

The island of Cyprus also enjoys a favourable geographic location in the eastern Med that offers an enviable lifestyle for relocating expats, good infrastructure for telecommunications iand higher education, and a plentiful local supply of well-educated, English-speaking workforce.

The port of Limassol is also much improved in recent years after DP World was awarded a 25-year concession to operate the Multipurpose and Cruise Terminals back in 2016. The island also enjoys a benign climate for innovation and startups with a newly created Cyprus Marine and Maritime Institute (CMMI) charges with overseeing development of the country’s blue economy and shipping-related decarbonisation efforts.

On the weaknesses side, however, the island continues to suffer from the divided nature of the island where the northern region has been occupied by

Turkey since the 1970s, with a UN-controlled buffer zone in between. Turkey continues to prevent Cyprus-flagged or -linked vessels calling its ports, as well as ships

Speaking at a Cyprus Marine Club event in late June, new Shipping Deputy Minister Ms. Marina Hadjimanolis outlined the government’s plans and goals, focusing on collaboration, innovation, and competitiveness as key drivers, to keep Cyprus at the forefront of the global shipping landscape. These included the implementation of a ‘One Stop Shipping Centre’, intended to simplify procedures and ensure “a more flexible, effective, efficient and customer-oriented service”, as well as the implementation of the Shipping Limited Liability

Company (S.L.L.C), which will provide additional benefits for such companies.

Other key objectives mentioned by Ms. Hadjimanolis included the completion of the digital transformation of all services of the Shipping Deputy Ministry, promoting gender equality in shipping through collaboration with the Commissioner for Gender Equality, and raising public awareness with respect to the importance of maritime-related professions.

Addressing the CSC agm the previous month, President Themis Papadopoulos, also CEO of Interorient

The Shipping Industry’s role has become more important than ever, as it is one of the stronger pillars of the Cyprus economy, which has been uninterruptedly supporting it during successive crises

Thomas A. Kazakos, Director General of the CSC

Navigation and a Vice Chairman of the International Chamber of Shipping, had emphasised the need for such a One Stop Shipping Centre and implementation of the S.L.L.C. to further develop shipping as one of the most serious economic pillars of the country. Referring to the longstanding Turkish Embargo to Cyprus ships, he asked for concrete support of the Government and Diplomats to use their influence to immediately lift what he called this “illegal restriction”.

In addition, Mr Papadopoulos stated the commitment of the CSC to continue its efforts for the fast and sustainable green transition of the maritime Industry, through its active involvement in regional and international shipping organisations.

Thomas A. Kazakos, Director General of the CSC, adds that since the pandemic, “the shipping Industry’s role has become more important than ever, as it is one of the stronger pillars of the Cyprus economy, which has been uninterruptedly supporting it during successive crises. We also noted with satisfaction, that in the aftermath of the recent geopolitical and financial developments, the shipping operational and taxation infrastructure in Cyprus and the Cyprus flag remained intact and very competitive.

The CSC DG believes that “a specialised ‘One-Stop -Shipping-Centre’ at the Shipping Deputy Ministry is now urgently needed to deal with the special requirements/ issues of the shipping Industry, as well as to act promptly and effectively, in cooperation with other Government Departments, to process fast the services it will undertake.”

He explains that this will essentially be a ‘fast-track’ service for all shipping-related matters and should have direct and fast access/priority to all relevant Cypriot authorities/ministries. Opportunities-wise, Mark O’Neil, CEO/President of Columbia Group and also President of InterManager, points to the many advantages of Cyprus as a jurisdiction for maritime companies to set up within, including its modern infrastructure, excellent schooling and education ethos, and “extremely sophisticated professional cadre – i.e. accountants, lawyers, IT consultants, which actually are of a level that rivals some of the main financial centres around the world.” Geographically it’s a fulcrum between Middle East and Europe, he adds, and has already built up a maritime cluster with “all of the services around the shipping space that you would have in Singapore or Athens or London. So, lots of great advantages, including a very stable political landscape where the governments are very keen to promote shipping and promote the maritime space going forward.

“The threats,” he continues, “are from other maritime hubs and clusters that want to capitalize on the opportunities that come with that description. So

obviously Singapore leading the charge, Athens, London, Dubai, and some of the Middle Eastern countries who want a slice of the action and want to compete for the business that goes with it.”

In short, there are “very dynamic other clusters out there that will be wanting to take business away from Cyprus,” he concludes. ”And Cyprus must deal with that and continue to modernize and continue to offer advantages to the players in this space” - including favourable taxation, schooling and other factors that matter to expats in order to first attract quality talent to Cyprus and the ensure it stays.

As regards his own company, Columbia has in the past year or two been transitioning itself from being solely a ship management company into an integrated maritime, logistics, leisure and renewables services platform, he relates. “One of those services, and perhaps the most important, being its technical and crewing and commercial

To mitigate the impact of the conflict, Cyprus has had to carefully navigate its diplomatic stance

management of vessels.

“This transition has resulted in a new brand, the Columbia Group, under which many verticals spread and one of the most important being ship management, but that’s changed the whole perspective of the business, and also allowed us to offer our clients 24/7 turnkey solutions to their requirements wherever those requirements might be.” The company’s ESG report is also “perhaps one the leading, best quality reports in the industry,” he adds.

Bernhard Schulte Shipmanagement (BSM) is another company whose history is deep-rooted in Cyprus, the company having last year celebrated the 50th anniversary of its foundation in Limassol. “Cyprus benefits from its strategic location in the Eastern Mediterranean Sea, at the crossroads of the major international shipping routes

between Europe, Asia, and Africa which favours worldwide trading,” points out Andreas Solomonides, newly appointed Managing Director of BSM Cyprus. “This, along with the financial incentives offered by the Cyprus Tonnage Tax System certainly attract owners to register their ships under the Cyprus flag and establish ship owning, ship management, and chartering activities on the island.

“The fact that Cyprus is an EU country, situated in a strong geopolitical location with a great reputation encourages the growth of the island nation as an attractive maritime hub. We are very optimistic about the future of Cyprus as a leading maritime cluster and its ability to adapt, evolve and thrive in this competitive environment.”

One of BSM’s own strengths is its access to a large talent pool of 20,000 highly trained seafarers from 80 different countries, and the company operates its own wholly owned Maritime Training Centre in Limassol, one of five worldwide. This supports seafarers’ career progression and includes an innovative Liquid Cargo Simulator offering realistic training and immersive experience for seafarers working onboard gas carriers and LNG fuelled ships.

Going forward, Mr Solomonides sees compliance with the EU ETS (Emissions Trading System) as one of the main immediate challenges that will impact the company and its customers. “We are in constant discussions with our clients on

this topic,” he says, “and are looking into the development of solutions to support them navigate the complexity of these upcoming requirements. We are currently investing in the development of specialist teams and IT tools required to ensure a smooth transition to EU ETS. Within our stateof-the-art Fleet Performance Centre, we intend to offer transparent live data driven IT platforms showing a vessel’s consumption in relation to geolocation and time as well as the resulting EU ETS exposure.”

Dieter Rohdenburg, CEO of Intership Navigation Co, part of the Hartmann Group of Germany, points out that the Cyprus maritime cluster “has developed strongly over recent years – both in terms of quantity and ‘quality’. New ship owners and managers have set up shop, we have seen the first P&I Club setting up its EU HQ in Cyprus and several investment funds were licenced. “There is opportunity for further growth in the ‘core function’ of ship owning and management as well as in ancillary functions, some of which were lacking in the past.” he believes, especially with introduction of the ‘one-stop-shop’ and S.L.L.C. for shipping companies.

“The only challenges I can see relate to the infrastructure in Limassol, the island’s main maritime business centre. Limassol has become a victim of its own success, office space and living quarters come at a premium and securing a place in schools for the children of expats can be challenging.”

As regards the impact of

the Russian war with Ukraine on the Cypriot shipping cluster, Mr Rohdenburg believes that this has been “in line with that on other clusters – some ship owners and managers had relations with Russian companies which they had to sever ties with, others held contracts to transport cargoes to or from Russia which can no longer be performed. And, of course, Limassol saw the closure of the offices of SCF Sovcomflot due to sanctions.

“The largest impact was not on the resident industry but on the Cypriot flag,” he continues, “which has seen a considerable number of vessels leaving for other, non-European registries in order not to have to follow EU sanction requirements. This is concerning, as arguably some of these vessels will have joined the ‘dark fleet’ continuing to trade with Russia in violation of Western sanctions.”

Intership itself has started a process of fleet renewal by purchasing three modern handy bulkers earlier this year. Pelagic Partners, the Cyprus-registered alternative investment fund owned by the Hartmann and Abou Mehri families, has also expanded its fleet over the last year by investing in tankers in the MR and LR1 segments – all managed by Intership and its sister company, Donnelly Tankers – and ordering up to 6 CSOVs (Commissioning Service Operation Vessels) for offshore windfarms at Cochin

to encourage innovation.

“Perhaps one of the biggest challenges for our company, and indeed the cluster on the whole,” he continues, “is continuing to attract new talent, and not just shore-based experts from within our industry, but also outside, such as software engineers, product owners, data specialists, in marketing, environmental, and other areas. This is needed to help our industry become better at successfully innovating its way through the major transformations of decarbonisation, automation and digitalisation.

“Truth is, we are making great progress, and at least here in Cyprus, maritime is already highly regarded and considered one of the most appealing industries to work in,” Mr Neophytou believes. “We just need to speak with a louder voice to further demonstrate why maritime is an exciting career path for these professionals, highlighting the many opportunities that exist, and the long-term benefits to one’s career, and livelihood.”

Capt. Eugen Adami, Owner and Managing Director of Mastermind Ship Management Group, introduces a new element in his list of the many Opportunities that present themselves for Cyprus shipping, namely expansion of the offshore energy sector. “The discovery of significant offshore hydrocarbon reserves in the region presents a major opportunity for Cyprus to develop its offshore energy sector,” he says. “This includes exploration, production, and support services, attracting international companies and fostering economic growth.”

The island of Cyprus also enjoys a favourable geographic location in the eastern Med that offers an enviable lifestyle for relocating expats

Shipyard in India for delivery in 2025.

Andreas Neophytou, Joint MD of Marlow Navigation, notes that Cyprus enjoys a “diversified and robust maritime cluster… [which] is a major benefit, as having all necessary providers and stakeholders locally helps foster closer, more personalised relationships, and with this comes greater flexibility and customisation in services. Similarly, the private and public sector collaborate openly and transparently, allowing for effective synergies and helping

He also highlights maritime education and training, saying: “Cyprus has a strong maritime education system, with well-regarded universities, maritime academies and training institutions. This presents an opportunity to continue developing and expanding these programs to meet the growing demand for skilled maritime professionals globally, which are able to take on the decarbonization challenge.’ Capt. Adami himself is a Principal Lecturer at Frederick University, Limassol.

The Mastermind founder, a past President of the CSC, further mentions the potential of Cyprus developing further a cruise tourism destination, especially given Limassol Port’s recent investment in modern cruise infrastructure.

As regards ‘threats’ facing Cyprus as a maritime cluster, he feels these include geopolitical tensions. “The geopolitical situation in the Eastern Mediterranean, including territorial disputes and conflicts, poses a threat to stability and can impact maritime activities in the region. Political instability and uncertainty may deter investors and disrupt trade routes. Sanctions are taking their toll on maritime companies which traditionally worked with cargoes, vessels and investments.”

Mastermind itself has taken advantage of the strong

markets of late to pay down its debts in accelerated manner and has expanded in the multi-purpose sector with acquisition of a second heavylift vessel. A fleet renewal process is underway, the company has opened a branch office in Germany, and has entered into a partnership to develop digital crewing services that it says are ‘human-centred’.

Matrix Ship Management’s Mike Dobson, Commercial Director, says the island’s proximity to other key ship owning hubs and new emerging markets makes Cyprus “an excellent location as a maritime cluster. Greece has long been a ship owning and self- managing nation,’ he adds, “but we are starting to see the Greek market open up more to management.”

On the ‘threats’ side, however, he notes “slow manual banking processes in Cyprus cause operational delays that we are not experiencing with our other international bank accounts that use more elaborate algorithms to process their payments automatically.”

The Russia-Ukraine war caused “huge travel issues for a large number of our seafarers for the first few months of the conflict,” he continues. “However, thankfully the majority of travel routings are [now] fully open and our crew are able to travel to work fairly unrestricted again.

Matrix Ship Management has gone through a period of significant growth over the past few years, Mr Dobson reports, and plans to continue doing so. The company is also exploring other markets with which it has not been involved previously. Also, he adds, Matrix has brought in “market-leading fleet management software and crew management software to ensure we have the data we need in a live environment and our clients’ vessels are running optimally with many efficiencies gained in the process.”

Costas Th. Joannides, CEO of insurance brokers Marsh Cyprus, feels that the maritime cluster in Cyprus is “booming, there is an influx of foreign investment in a variety of areas, the Government and the Deputy Ministry of Shipping are on a programme of improving the infrastructure further. The private sector despite competition is creative and collaborative, via the various Associations, when it comes to common agendas for the greater good. The outlook is very positive and I personally would like to see Cyprus to be the EU’s leading maritime nation.”

As an EU nation, however, Cyprus is of course following EU directions as regards sanctions, he adds. “Our company has had its fair portion of negative impact. The volume of compliance checks and procedures that have to be followed impacted our human resource capacity, which we have adjusted at a cost.”

The most important development at Marsh Cypru “is centred around digitalisation which has been fast tracked

during and post Covid-19,” he continues. “As a global group of companies we have invested in technology that our clients can make use when assessing their risks. Amongst other we have developed a cyber and an ESG platform whereby clients can assess their status, take action, prior taking informed decisions on their insurance requirements.”

Sylvia A. Loizides, Board Member & Head of Shipping for professional services firm KPMG in Cyprus, shares other respondents’ views on the “range of promising opportunities” facing the maritime cluster on the island “that can drive economic growth and strengthen its position as a prominent maritime hub” – namely its “robust shipping industry with a favourable tax regime”, “competitive ship registration process” and “maritime legal framework”. Furthermore, Cyprus’ commitment to maritime education and training “ensures a skilled workforce capable of handling modern shipping demands,” she notes.

However, the Cyprus’ maritime cluster also faces significant threats that could potentially hinder its growth and competitiveness, she continues, listing geopolitical tensions, looming environmental concerns, competition from other maritime hubs, and the general economic volatility of the shipping market.

“Addressing these threats requires a proactive approach, with Cyprus investing in enhanced maritime security measures, sustainable practices, and continued development of its infrastructure and workforce. By mitigating these challenges effectively, Cyprus can bolster its maritime cluster and secure its position as a resilient and competitive player in the global maritime industry.”

On the question of the Russia-Ukraine conflict, Ms. Loizides notes that this has had “a notable impact on Cyprus, given the close ties between Cyprus and Russia. Cyprus has been historically known as a popular destination for Russian investments, with Russian businesses using the country as a gateway to the EU. However, in response to international sanctions imposed on Russia due to its actions in Ukraine, Russian investors using Cyprus structures have faced financial restrictions and increased scrutiny, affecting their business operations.

“The conflict and the subsequent imposition of international sanctions on Russia have also led to repercussions for Cyprus shipping specifically,” she continues. “Russian-owned ships have been facing severe restrictions on port access, encountering also serious challenges with maritime insurance, classification and financing; crewing companies, already playing catch-up from various COVID-enforced lockdowns and staffing issues, are now having to manage a seafaring crisis (seafarers

remain on vessels stuck in ports in and around the Black Sea, Ukrainian seafarers are being called into national service, challenges in paying Russian seafarers due to economic sanctions, etc.).

“To mitigate the impact of the conflict, Cyprus has had to carefully navigate its diplomatic stance, balancing its commitments as an EU member and its historical ties with Russia. Embracing sustainable practices and fostering

partnerships with other global players have become essential to diversify its shipping portfolio and maintain its relevance in the ever-changing geopolitical landscape.”

In KPMG’s own accounting and auditing sector, some of the most significant recent developments include technology integration - such as of AI, machine learning and data analytics into processes – an increased focus on sustainability reporting due to growing concerns about ESG

An insurance broker’s perspective

The geopolitical turbulence of the last 18 months has taken its toll on Cyprus very early on mainly as a direct result of the various EU and US sanctions, writes Aphentrica Marine Insurance Brokers.

One of the first and probably the most significantly impacted sectors, was the Cyprus Flag, as many vessels owned by Russian interests/UBOs and/or non-Russian owned but classed under the Russian Registry and/or being insured by Russian insurers have had to be deleted from the registry. Coupled with the fact that Cyprus flagged vessels were barred from using the Black Sea Grain corridor due to the Turkish embargo, which also had an indirect impact on the registry, it is said that as a result of the removal of the Russia-flagged ships, and the change of registration by other vessels, the total strength of Cyprus-registered ships was reduced by about 1 million gross tonnes.

From a business operational point of view, as a consequence of the sanctions and the implications and difficulties in dealing with Russian interests (even if not sanctioned), many companies opted out of Russian business involvement thus losing significant income from that market share. Similarly, companies domiciled in Cyprus have had to relocate to other domiciles such as Dubai or Turkey and the combination of the two has had a serious impact on the economy as well as loss of employment for Cypriots.

Another sector which was directly impacted at the onset of the war, is of course the shipmanagement and in particular the crew management sector. It is well known that Cyprus is one of the largest shipmanagement/crew management centres in the world, with tens of thousands of Ukrainian and Russian crews under their management/employment. In addition to having to work around the primary logistics of being able to pay crew wages to the crew and their families (of both nationalities) sign offs became a huge challenge, in particular of injured or sick crewmembers, let alone the war pulling out of the crewing market a significant part of the seafarer workforce when the industry was already facing post

covid issues and crew shortages.

All of the above in combination created a domino effect that eventually filtered down to all the satellite services, e.g. insurers, brokers, suppliers etc who have all been impacted both in terms of losing business but also in terms of everyday business (sanctioned or not) becoming an administration battle in an effort to keep up and tip toe around sanctions and compliance requirements from banks.

As regards Aphentrica itself, 2023 has been a productive year of expansion and growth. Aphentrica Hellas and the Greek office are well underway to enable us to expand our reach and accessibility to our clients, while the Cyprus office was simultaneously restructured supported by a significant investment in our technology infrastructure, to improve our efficiency and enhance our service levels, so that we are ready to take the company to the next level in line with the succession strategy we set up two years ago with co-founders Marinos Vourgos and Anna Vourgos’ son Alexandros joining Aphentrica.

Just a breath away from the company’s 30th Anniversary, the company says it is “looking confidently into the future, ready to capitalise on our expertise and market relationships and continue this positive momentum to strive for further growth and development in the coming years, while staying focused on our core values and client-centric approach.”

issues, driving regulatory changes as authorities worldwide update their standards to align with best international practice, and a growing emphasis on developing advanced fraud detection and prevention techniques.

“These developments are driven by the need for greater efficiency, transparency, and accountability in the accounting and auditing sector,” concludes the KPMG Cyprus Head of Shipping. “Embracing technological advancements, addressing sustainability concerns, and adapting to the changing regulatory landscape are essential to staying relevant and providing value-added services to clients in the modern business environment.”

Maritime and commercial procurement company GenPro is similarly upbeat about the Cyprus cluster’s prospects.

“We are looking at an abundance of potential and positive developments for the Cyprus maritime sector,” says Managing Director Maria Theodosiou. “In line with the Deputy Shipping Ministry’s efforts to achieve shipping decarbonisation by 2050, Cyprus has the potential to further develop its blue economy sustainably. Doing so creates opportunities for foreign investment on the island, promotes the creation of new maritime-related companies, and promotes the island as a competitive, sustainable, and innovative maritime hub.”

In the ‘threats’ column, Ms. Theodosiou highlights he region’s geopolitical instability and stringent international environmental regulations. Tightening emissions standards could require significant investments from shipping companies to comply, potentially increasing costs and finally affecting their operations in Cyprus, she says, since climate change can pose risks to port infrastructure and maritime operations in Cyprus like the rest of the world.

“Close collaboration between the government, industry stakeholders, and academia can further enhance the cluster’s competitiveness and provide viable strategies to mitigate the risks,” the MD believes.

As part of GenPro’s ongoing commitment to sustainability, it has just published its first Sustainability Report in compliance with the latest Global Reporting Initiative (GRI) Universal Standards, reflecting the company’s dedication to sustainable practices and transparency in our operations.

“GenPro is on track to have an entirely, measurable and verifiable, green supplier network by 2025,” says Ms. Theodosiou. Furthermore, the company is currently developing its in-house customised IT platform with the aim of enhancing the efficiency and effectiveness of its processes, enabling GenPro’s teams to further optimise their client’s procurement processes efficiently. “We believe this initiative will further bolster our service offerings and contribute to our client’s success in their own procurement endeavours,” concludes the GenPro MD.

MARLOW NAVIGATION

40 years of excellence

Cyprus-based company Marlow Navigation celebrates its 40th Anniversary this year, marking four decades of providing services to its customers and seafarers alike.

The theme chosen for the occasion is ‘WITH YOU ALL THE WAY’, depicting the company’s pledge of remaining ever closer and steadfast for its partners – customers, people and communities – today, and for tomorrow.

Established in 1982 and commencing its operations in Limassol in January 1983, the Marlow Navigation Group has firmly emerged as a notable ship management company. With a vast network extending across 14 countries, Marlow employs over 1,150 shore-based staff members and more than 15,500 seafarers on board vessels at any given time.

This includes offices for technical and crew management in Cyprus, Germany, the Netherlands, India and

Oman, as well as a global network of fully controlled seafarer manning agencies and dedicated training centres.

“Our successes over the last 40 years have been propelled by the trust, dedication and loyalty of clients, partners and colleagues throughout the Marlow network,” states Founder and Chairman, Hermann Eden. “On this proud occasion, the company extends its heartfelt thanks to you all for the ongoing trust and commitment.”

Over the past 40 years, the range of services offered at Marlow has expanded significantly to encompass comprehensive maritime activities. These operations include complete technical management of various types of ships, ranging from merchant to offshore vessels, crew management, newbuilding supervision, training and safety, as well as financial and administration.

A key competitive advantage has been having the flexibility to provide tailor-made services to its esteemed clients, delivering the highest level of quality. This has been maintained

Jan Meyering, Hermann Eden and Andreas Neophytou

by a management team with extensive experience both ashore and at sea, including Captains, Chief Engineers and other management level officers, as well as safety, quality and environmental protection specialists, shipping insurance experts and a sizeable in-house IT and software development team.

Perhaps what Marlow has been best known for, however, is its leading crew management division and dedicated training facilities, ensuring seafarers are always competent, proficient and highly skilled, and making sure assets are well looked-after and performing optimally.

“This 40-year milestone is all about a commitment to close partnerships; with our people at sea and ashore, as well as our local communities,” says Joint Managing Director, Jan Meyering. “We are grateful to all for their ongoing support throughout the years and celebrate this achievement together with them.”

“As we celebrate this anniversary, we reflect on our past achievements and special moments, but also look towards the many opportunities that lie ahead,” continues Joint Managing Director, Andreas Neophytou. “We remain totally committed to modernisation in shipping and tackling the major challenges of decarbonisation and digitalisation, with innovation and collaboration.”

For further details of Marlow’s 40th anniversary celebrations see www.marlow-navigation.com/Marlow40years l

Ahead of the wave Regional Focus

By Barry Parker

Navios, in various incarnations, has always been ahead of the wave. Originally formed in the 1954 to move steel-making raw materials for then-behemoth U.S. Steel, as it approaches its 70th anniversary it has evolved into an independent vessel owner with multiple public listings operating in dry, wet and container sectors.

Today, the widely followed Navios Maritime Partners (NYSE: ‘NMM’) consolidates different components into one powerhouse controlling more than 173 vessels - including newbuilds due for delivery through until H1 2026 - active across all three of shipping’s major segments.

In short, Angeliki Frangou, (pictured) NMM’s CEO, who worked in commodity financing following her engineering studies in the States, has brought a 21st century mindset to managing what is considered a very ‘traditional’ business.

The listing of the NMM partnership, which owned seven bulk carriers at the time, took place originally in 2007 as the market was booming; this followed a 2005 public listing of Navios Maritime Holdings, where Angeliki Frangou (pictured right), had acquired the privately held Navios predecessor in a deal that was ultimately structured as a reverse merger, with support from a group that included well known money manager Fidelity, and hedge funds including North Sound Capital, a ‘Tiger Cub’ (which came out of the Tiger Management stable).

Tankers followed in 2010, with Navios Acquisition (NYSE: ‘NNA’) a Special Purpose Acquisition Corporation (SPAC) acquiring a small fleet of product carriers. A separate entity, Navios Maritime Containers L.P., was listed on NASDAQ in 2018.

Shipping is well known for its cyclicality - and good timing is integral any successful strategy. Consider that Navios’s launch into the public company sphere, with drybulk vessels, came shortly after China had joined the World Trade Organization (WTO) and with its burgeoning steel industry fuelling a shipping boom. The tanker market saw a series of boomlets throughout the 2010s, then NMM’s foot in the sector positioned it for 2022’s performance not seen in decades.

Likewise, the entry into containers – including acquisition of distressed assets from failed German KG companies - set Navios up to take advantage of the superior market environment of 2021- 2022. Staying ahead of the waves goes beyond financial engineering, and optimising the timing of vessel purchases (which Navios has excelled at) and disposals; it requires insight into the mindsets of investors.

In 2021, with investor sentiment shifting from favoring pure-play companies (i.e, engaged in one market segment or sub-sector) towards offering investors a diversified platform, Navios began to consolidate its multiple entities into NMM- with the container entity brought aboard in March, 2021, followed by tankers later that year, with further consolidation of drybulk entities occurring in mid2022 (including the purchase of 36 vessels from Navios Holdings-a separate company, with a business now focused exclusively on South American logistics ).

The rationale for these combinations- bringing the multiple segments under one roof, was explained by Ms. Frangou in a 2022 interview with investor relations stalwart Capital Link. In her remarks, she emphasized that: “Investing in Navios is about total returns.”

For both insiders and outside investors looking at the maritime business, timing, diversification, and solid financial management are the criteria used to value companies. Navios has excelled at all of these.

In a call with investors detailing 2023’s Q1 results, Ms. Frangou elaborated on how her forwardthinking mindset, visible through the structuring of deals that enabled Navios to grow, has been infused into the current NMM’s strategies.

She told participants on the call: “In addition to diversification, we have been actively managing our portfolio to maintain a younger, more technologically advanced fleet as we believe the newer technologies are a competitive advantage both in terms of operating efficiencies and also for fuel emissions. We have rationalized our fleet by selling old vessels and acquiring new vessels.”

Implicit in the “total return” concept is an acknowledgement that maritime investors frequently look at ‘net asset value’ (or NAV) in their choice of holdings. Elaborating on the concept, she said: “We are trying to create a more durable NAV. You will see that even though the values of the containerships went down [in 2022] representing over 50% of our asset values, because of the strength in the tankers, and to a lesser degree in the drybulk, we were able to actually increase our NAV.”

This durability coincides with what NMM describes as: “… a diversified platform provides stable entity level returns,” something that frequently eludes investors in shipping shares who will frequently chase the last quarter’s ‘hot’ sector around, invariably buying at a nearby ‘top’.

Maximizing operating leverage within each segment, tied closely with market timing, is also an important consideration of company management. Ted Petrone (pictured below), a 40+ year Navios veteran who is now its Vice Chairman, was describing NMM’s tanker market strategy on a panel at the June, 2023 Marine Money Week. After highlighting the very positive supply and demand backdrop at play, he told the audience, “It’s a long runway- I can’t tell you how lengthy; our debate internally is how long do we keep the VLCCs on spot- before we put them on period charter.”

He continued by noting the very healthy fundamentals setting up, and said: “Our job in management is to ‘question’ these scenarios…but I don’t see any yellow lights.”

Hellenic Marine Equipment Manufacturers and Exporters (HEMEXPO), the association for Greek suppliers and exporters to the international shipping sector, has reached an agreement with classification society DNV for the assessment of energy-saving devices (ESDs) produced by HEMEXPO member companies.

Under the terms of the agreement, in the first instance, DNV will review a makers list provided by HEMEXPO to identify ESDs that fall in the category of energy saving devices, according to DNV expertise. In the second step, DNV will assess which regulatory metrics – i.e., the Carbon Intensity Indicator (CII) and the Energy Efficiency Existing Ship Index (EEXI) – the relevant ESDs affect.

Finally, the classification society will issue a letter of professional opinion for the HEMEXPO products that fall into the ESD category. This will confirm that the product is assessed as an ESD, as per step 1, and describe the regulatory metrics it influences, as per step 2.

Eleni Polychronopoulou (pictured), HEMEXPO President, said: “Our agreement with DNV is a significant breakthrough as it aligns

In talking about balance within the tanker sector – where NMM has 11 VLCCs and 34 smaller tankers in the products tradesMr. Petrone said: “A prudent owner controls its risk.”

Shipping companies are facing a new wave of operational complexities and regulatory initiatives, and the ability to run a fleet at scale, taking advantage of internal synergies not available to smaller outfits, is vital.

A recent presentation, from NMM’s May, 2023 investor call, reveals the scale of the enterprise- with 81 drybulk ships, totalling 9.9 million dwt- with an average age calculated at 10.2 years. The containership fleet of 47 vessels totals just over 235,000 TEU, with an average age of 10.6 years. The 45 tankers, with an average age of 8.2 years, total 5.6 million dwt. The overall value of the fleet, estimated at more than $4.5 billion in the same presentation, puts NMM on a par with the largest Greek owners. Financial leverage measures show a cautious 46.8% gross loan to value ratio.

In the May 2023 call, Angeliki Frangou noted the importance placed on reducing fuel consumption, and possibly burning alternative fuels going forward.

“Modernizing the fleet is something that will be always ongoing,” she said. “I think that creates, on every aspect, being more efficient, fuel efficient is a driver in the market.”

In the same call, she very succinctly summed up the powerful factors that will keep NMM ahead of the wave:

“What we like about the diversified platform is that we can be able to capture every opportunity that comes to us without being restricted one way or the other.” l

closely with the need for an international standard on ESDs, and HEMEXPO’s endeavours to encourage the marine equipment industry’s transition towards green solutions, which HEMEXPO is working towards. ESDs support ship owners and yards in meeting their environmental sustainability objectives, and this agreement will facilitate the acceptance of impactful technologies within the maritime industry.”

Whether selected for retrofit or at the newbuilding stage, ESDs can help shipping companies improve their CII, EEXI and EEDI (Energy Efficiency Design Index) ratings – and as the maritime regulatory landscape evolves, their importance will only grow, she added.

HEMEXPO is committed to delivering environmentally friendly solutions and services to support shipping’s green transition. In addition to ESDs, its member companies offer sustainable technology including friction-reducing hull coatings, shore connection facilities and carbon capture systems. l

Management services gaining ground

Cyprus-based Columbia Shipmanagement (CSM), part of Columbia Group, first opened its Greek office in Piraeus in September 2020. “We had Greek clients beforehand but we wanted to be closer to them and enlarge our footprint in the country,” explains Gregory Spourdalakis, General Manager of CSM Greece. Spourdalakis himself, a graduate of Greece’s Marine Academy, was previously working in Cyprus as Fleet Manager for one of CSM’s tanker fleet before transferring to Athens to take up the GM role, giving him what he describes as “an awareness of specific Greek client demands and how to align with Columbia’s operating system.”

CSM’s start-up of operations in Greece was low profile to begin with, he relates, and based in Piraeus because of its world -renowned status as the historical waterfront heart of Greek shipping. “But we quickly realised that most of our enquiries were not coming from ‘neighbours’ in Piraeus but from companies in Athens itself,” he continues, so when the office expanded in early 2022 it moved to the Southern Area of Athens.

Today CSM Greece employs some 30 people and includes Technical, Purchasing, Accounting, HR, Crew Coordination and Marine departments, the latter mainly looking after tanker vessels in terms of compliance, surveys and inspections. The office expects to continue to expand in “mostly tankers, dry container vessels and one LPG carrier.”

of digitalisation, decarbonisation and the like.

Commercial pressures mean that Greek owners are now “leaning into those kinds of services,” he notes.

“Nowadays the younger generation want to take advantage of the scalability comprehensive services platforms, such as the Columbia Group, have to offer. This way they don’t have to be involved in the day-to-day operations, so we’re seeing more and more vessels and fleets being entrusted to third party managers.

“Commercial channels are also pushing towards the larger management companies, which are more transparent with systematic management methods,” he continues. Owners are being encouraged to work with ‘approved’ third party managers, “and in many cases that is CSM”, he notes with satisfaction, “but at the same time we are required to maintain communications with the client at the level that they require.”

Specific advantages of the CSM Greece operation include the fact that it cooperates closely with the Cyprus office and has full mirroring capabilities of Columbia’s state -of-the-art Performance

Questioned about Greek shipowners’ perceived reluctance to entrust ships to third party managers, Spourdalakis believes Greek owners were always “sceptical” about doing this for fear it would be viewed as a sign of a “lack of ability or weakness”. But now it’s rather seen “as a commercial advantage to cooperate with an established and efficient manager,” he continues, because of the increasing complexity

Optimisation Control Room (POCR) in Limassol, with all its alert functions and latest system developments. Also, the wider Columbia Group’s critical mass enables it to better recruit and retain the qualified marine personnel, such as ex-seafarers and chief engineers, it needs in the highly competitive Greek shipping market.

In fact, CSM Greece actively recruits Greek marine graduates, offering numerous internships and part-time positions, Spourdalakis points out, and also takes part in Greece-based CSR activities such as the WWF Adopt a Beach shore-cleaning programmes and SOS Children’s Villages for disadvantaged young people. l

Sean Moloney

Good afternoon, everybody and welcome to this latest in our ShipManagement International series of industry webinars, which we are very delighted to be doing in collaboration with KVH. The webinar today will look at how ship to shore connectivity is a vital part of the communication strategy for ship owners and managers. Not only is it, as we know, a conduit of sharing important data insights to help optimise ship operations but it is also a valuable link for seafarers, with the outside world. Without any further ado, I’m going to ask our expert panellists to introduce themselves and give an opening perspective.

Chris Watson

Good to see you, Sean and thank you all, very much, for joining us. It’s great to be here with my fellow panellists. I’m Chris Watson. I’m the Vice President of Marketing and Communications at KVH. I’ve got more than 20 years’ experience in the field of maritime communications and have seen it move from the low bandwidth of early Inmarsat and Fleet services, up to the just tremendous advances that we’ve seen in VSAT (Very Small Aperture Terminals) and now, with LEO (Low Earth Orbit satellite networks). What’s really been interesting for me is also seeing the emergence of digital natives who are used to being connected and are now taking advantage of connectivity and data and being onboard ships.

Ship-to-Shore Connectivity: Keeping ahead of the curve

The following are edited excerpts from latest SMI webinar on ‘Ship-to-Shore Connectivity: Keeping Ahead of the Curve’, held end-July in association with KVH Industries.

The discussion featured Robert Balog, COO at KVH Industries; Sven Brooks, CEO at ScanReach; Steven Jones FRSA, Founder of the Seafarers’ Happiness Index; and Chris Watson, VP Marketing and Communications at KVH Industries. Moderator was Sean Moloney, CEO at Elaborate Communications.

A full audio recording of the webinar can be found on the SMI website.

With this new demographic, with these new technologies, we’re also seeing lots of questions about the applications of these new services. The implications for existing technology and services, the growing demand for data and the applications of that data for the purposes of business and efficiency, safety, etcetera. But we’re also seeing a lot of questions about how to take advantage of the new services, how to blend them with existing services, how to take advantage of them for crew welfare, while also minimising risk with regard to cybersecurity. We’ve gathered some great experts here so I’m very excited about today’s conversation.

Steven Jones

Thanks, everyone. Real honour to be on the panel and thank you for inviting me. I’m Steven Jones, Founder of the Seafarers Happiness Index and a former seafarer myself but perhaps, even more important than that, a child of a seafarer. So, the family links to those that are sometimes left behind, are important as well, and resonate. The Seafarers Happiness Index is a tool that exists to allow us

to ask seafarers how they feel about their life at sea. We have 10 core questions that we ask, every quarter, and seafarers tell us how they feel from everything ranging from their general happiness, through connectivity, which is a really important part of the focus, constantly. Through to the more nuts and bolts of food onboard, health, fitness, interactions, how they feel about workload and all the realistic expectations that they have of their life at sea and the impacts when good things happen and how that improves their mood.

But equally, when we’re seeing negative influences onboard, such as problems with shore leave, etc, how they leave seafarers feeling. The constant demand for connectivity is something that we’re hearing all the time, from seafarers and how important that is to them. I think that’s an important part of the debate today. The other angles of this, really is to make sure that technology has a reciprocal benefit for seafarers. I think sometimes, there’s a danger that we might be running a little bit too far, too fast ahead of the realities onboard and how seafarers play their part in that. That’s where I’m hoping we can engage on that but it’s a real pleasure to take part and thank you.

Bob Balog

Good morning, everyone. I’m Bob Balog. I’m the Chief Operating Officer for KVH Industries. I’ve got over 18 years’ experience in the industry. My responsibilities include managing the full KVH product lifecycle, design, through manufacturing and shipment of our equipment. Our KVH goal is to deliver the highest quality products to ensure secure, enterprise grade reliability and performance for our customers. Connectivity has always been of vital importance in the maritime industry and in this quickly evolving digital world, more than ever, staying connected is just taking on a greater importance. As connectivity becomes more affordable, we’ve seen the demand for data and communications just grow dramatically. Vessel reporting, navigation, weather, trip optimisation, fleet management, cargo tracking, communications, email, crew welfare.

All of these things are using more data. With the increase in the reliance on connectivity, inevitably comes a requirement for data, connection security, bandwidth management, connection switching, cost control and of course, reliability. It’s a lot of things come into account here, that we’re taking into account on our products and our services. At KVH, we understand how important it is for our customers to stay ahead of this technology curve. At

times, it can be overwhelming. So, we’re making sure we’re delivering products and services that are essential for safe, efficient ship operation and ship management. I’m looking forward to our discussion today. Hopefully, we get a chance to learn and explore some ideas and views on a lot of these important topics.

Sven Brooks

Thanks for having me on this panel, everyone. It’s really exciting times and ship-shore connectivity is changing everything a little bit for the better. I’ve been in the industry for 20-plus years, working in navigation, in communication, in IoT, in connectivity and I’m the CEO of ScanReach, a Norwegian-based scaleup. We’re focused on onboard wireless connectivity. We build mesh networks that connect the unconnected, whether these are sensors or crew members. We make sure that the crew onboard has access to vital data and vital information that’s important to their jobs. We also make sure that other parties, other third parties, whether these are software providers, fleet managers, owners, operators, get access to their data wherever, whenever they need it.

My concern, when it comes to the digital transformation is, a little bit, that it has become synonymous with decarbonisation, over the past years. I just feel that a little bit of digital fatigue has set in. There are so many players, it’s highly convoluted, it’s difficult, it’s challenging to get the right solution onboard and it’s really for an owner or a manager, difficult to understand which path to take. There are so many different vessel types, there are so many different equipment types, there are so many opportunities to collect data and understanding what’s really important and vital for operation is incredibly challenging. The bulk of the industry has focused on decarbonisation, of course. It’s great, it’s green, it saves cost, at the same time.

But there are so many more other low-hanging fruit and there’s a lot that touches the safety of the crew members, themselves. Whether these are training opportunities or whether that’s safety of life at sea, being able to call for help, or call for assistance, or ring an alert when you’re working in a highly automated environment in the middle of the ocean. Those are the elements I find are largely overlooked. What happens to crew, what happens to cargo during digital transformation? That’s what we’re addressing at ScanReach, quite a bit.

Sean Moloney

Thank you everyone. Chris, let me come onto you. Taking this

whole issue of digital fatigue and shipping’s constant search for standardisation, what are the opportunities here and what are, maybe, the challenges you see facing all of this?

Chris Watson

It’s a great question, Sean. I think that, in many ways, the industry is grasping the opportunity in the right way but, as with any disruptive time with many new advances in technology, there is a question of how to go ahead and use this. There need to be standards. What is the approach?

I think that shipping companies are recognising that maritime operations are increasingly digital and connected. You’ve got vessel operations, you’ve got communication, shipping, ports, logistics. You’ve got crew connectivity, things like that. Ships are no longer on their own but are mobile offices on a global network. As Steven reminded me, in a conversation we had a couple of weeks ago, they are also homes for the crew, their connected homes. I think people are recognising and beginning to take advantage of the opportunities, with this digital transformation, to touch on an array of benefits.

This technology is leading to increased efficiency and cost savings, improved safety and the reduced risk of accidents. I think we’re seeing enhanced transparency and accountability. Sven mentioned the decarbonisation and, on a broader level, the idea of improved environmental sustainability but it’s also opportunities for improved customer service and experience, so that people who are shipping their materials are able to see where they are at all times. So, it’s connected throughout the entire life in transit of products. It’s also for the crew, with telemedicine and training. I think we’re seeing a steady increase in data use and demand in bandwidth. We certainly are, at KVH, as we’re providing global connectivity services. No one in the industry is saying “I don’t need so much data” or “I’m good with a really slow connection.” The realities of modern business are requiring these connections and people are starting to figure out how they mesh together.

Sean Moloney

Shipping is fragmented, we know that, and you’ve got the early leaders and you’ve got the laggards. You’ve got companies that are driving in value to the bottom line and that is so important. Is that an issue, in the sense of looking at the way the industry is moving forward, en masse?

Chris Watson

I don’t think anyone’s ever looked at the commercial maritime industry and said, “This is an industry that is

noted for being early adopters of new technology.” There tends to be a bit of conservatism there, but I think that, over the years, just the realities of what this tech can deliver, ship to shore connectivity, access to data. Even the laggards are recognising the need, and some are going to come along more slowly. They’re going to be more conservative. They’re going to be careful. They want to make sure they understand how it’s going to work. You are going to get some that are going to lead the way but they’re serving as guides and good examples for the other companies that are considering getting into this and taking more advantage of it.

Sean Moloney

Steven, let me bring you in on this. The point was made earlier that ships are the home of seafarers and they want to feel involved. What are they saying about all this?

Steven Jones

Well, we’re hearing from seafarers who work for companies who are working with KVH and the likes, at the cutting

edge of all these things. For them, life really is about riding this wave of technology and digitalisation. Although even they sometimes feel that, as they’re surfing, they might be falling off the board, or they’re struggling to keep up, at least they know the direction of travel, where things are going and how they are, in essence, a part of it.

But then, you strip away from those higher echelons, the blue-ribbons of our industry, and you really don’t have to scratch the surface very deeply before you come across such a different perspective, such a different way of life and how things are managed and considered. I think that’s the slight danger, at the moment.

As I said at the start, this concern is that those at the forefront of technology are moving so far, so fast, ahead of the others. Unfortunately, the reality is it’s those others that will probably collide with you in the middle of the night when you’re at anchor. The problems that you have don’t go away just by ignoring the fact that shipping has, for so long, been a lowest common denominator business and

Chris Watson Bob Balog

Sven Brooks Steven Jones FRSA

Sean Moloney

that is still the case today. That would be my slight concern, that we need to move forward, making sure that this is a rising tide that lifts, metaphorically, all ships as well.

Sean Moloney

Can it achieve that? Because if you look at the way that digitalisation has evolved over the last three to five years, it’s accelerated and what will the next three years hold? Shipping has got to invest in people - digitalisation needs people.

Steven Jones

Yes, totally. I’ve just been working on quite a big ESG project. Part of that was looking at the sustainability reports of a whole vast array of different companies. From the blue-ribbon, blue-chip shipping companies, through to those big retail charterers, oil majors, etc. Seeing what they’re talking about in terms of the social element of ESG. It’s as if seafarers don’t exist, in so many of these reports.

Sven Brooks

This is where I believe it’s currently quite one dimensional. Simply because it gets a lot of media attention at the same time. If you want to do something in digital, deep decarbonisation gets you onto the front page. It does save money, it’s good for the environment, it’s cleaner, it’s more

factory. In each of those areas, shipping can learn a lot from other players in those elements. We can learn what’s going on in the airline transportation, road transportation and see what we can do there to optimise shipping and transit times and cargo handover.

Sean Moloney

What does shipping need to do, do you think, Bob, to keep ahead of the curve? Because, as we’ve been hearing already, it tends to be a little bit slow in the uptake, really and it has been, over the years. What are your views?

Bob Balog

It’s a dilemma because you’ve got a fairly cautious, and rightfully so, industry, where safety has to come first. You have to stay on top of the connection assurance, the reliability. So, even though you might want to slow roll some of the newer LEO type connections, you can’t slow roll the cybersecurity. You can’t slow roll the connectivity reliability.

My concern, when it comes to the digital transformation is, a little bit, that it has become synonymous with decarbonisation

Sven Brooks, CEO at ScanReach

sustainability. It rings all the bells and buzzwords but at the same time, what makes shipping so special, and Steven and Chris both mentioned it, it’s that a ship, a vessel is also an accommodation area. It is a transportation medium, it’s accommodation, it’s a warehouse, and it’s also at time a

The way we look at this is we want to make it simpler. We want to provide those controls. We want to provide that environment that allows our customers to go ahead and say, “Hey, let’s layer in a LEO technology. Let’s layer in something that maybe, doesn’t meet all the reliability needs but we can turn it into a hybrid solution. Behind the scenes without anybody worrying it, we can make sure that no one overloads that connection by streaming applications, watching high-definition movies. We can maintain that ship connectivity, the importance, the operation bandwidth. We can make sure that we can application filtering, so we can take out undesirable applications, while giving the crew the flexibility to do what they need.” I think the best way to describe it is what we’re trying to do is not have the shipping industry become super experts in every single aspect of this remote office.

Chris Watson

Well, I wanted to chime in on staying ahead of the curve because I think the other thing that we need to make sure that we’re taking into account is not just determining how the technology’s going to be used but ensuring that seafarers have the training. We can’t assume that there is always going to be the same level of training. We are working with a partner who is developing a digital literacy programme for seafarers because we can’t make the assumption that things like familiarity with cloud applications, even how to use an email system or even more specifically, best practices for cybersecurity … the weakest element in any potential

area for cyber is the human element. So, we need to make sure that fleets, ship management companies, crewing organisations, that they are providing the training for seafarers, so that they know how to use these technologies. Use them safely, use them well, use them efficiently and minimise the risk for the organisation.

Sean Moloney

I want to come onto this point. We’ve been talking about LEO satellites, and I know we’ve been hearing the name Starlink mentioned, but what does LEO really mean for shipping and how does it stand along the enterprise grade systems that we have?

Chris Watson

Yes. I think there’s a lot going on and I think there’s a lot of confusion and a lot of questions. For those who aren’t necessarily familiar with the meaning of LEO, it’s Low Earth Orbit satellites. So, these are things like Starlink, OneWeb versus the more traditional connectivity, which is provided by geosynchronous or geostationary orbit satellites, that are much further out. LEO does offer a lot of significant benefits. It can be fast, it can be affordable but it’s an open pipe and not necessarily what we would consider to be enterprise-

grade solutions, right now. Here at KVH, we look at the benefits that it can offer as being optimised when it’s part of a robust hybrid connectivity solution. It’s not an issue of which service should I use but how do I take advantage of multiple services?

We’ve got Starlink and LEO, that offer those speeds and offer the affordability. Maybe they’re ideally suited for crew connectivity, perhaps. Whereas other things like charts, GMDSS, ECDIS, other types of things can travel over these more proven, longer term enterprise grade solutions. Plus, you’ve got 5G, you’ve got Wi-Fi. All of these can complement one another, so that they can provide that enterprise grade tech services and reliability that go beyond just that data pipe.

Sean Moloney Bob, do you want to come in on that?

Bob Balog

Sure, I’d love to. I think the best way to describe some of the LEO options that are available is when they work, they work really well. They work fantastic. They have some of the concerns that we’ve touched on. There are still some regional availability problems. There’s still some issues

in high pitch and roll sea environments. There are things where obviously, you have to integrate it into a hybrid system to manage the cybersecurity, to manage all of the other controls. The best way, I guess, as I was saying, to describe it, is when it’s good, it’s great. Use it. Absolutely, use it and then, our system, the way we’ve integrated it is we monitor all of the different connections, at all times.

We’re constantly doing a health check on the LEOs, the geostationary, the 5G, the LTE connectivity. We’re watching all of those behind the scenes for the consumer, for the customer. What the system will do is automatically, decide which connection is best for you. It’ll seamlessly, behind the scenes, without anyone’s knowledge onboard … obviously, you can see the display. It’s not a secret. But it takes that worry out of the customer’s purview and it automatically makes the selection, to make sure you’re on the most robust, the most efficient connection at all times.

That’s part of what we believe is taking that worry away from the customer, letting them understand we’re going to monitor these, we’re going to make sure you keep the best connection, while not sacrificing any of the bandwidth management tools, any of the firewalls, the application filtering. We can make sure all of that stuff works,

seamlessly. It’s a great technology when it works. You have to find a way to make that play well in your system and that’s what we’re trying to do, is provide people again, with a simple solution so that they don’t have to worry about all of these details behind the scenes. As much of that as we can do, I think the bigger the benefit for the customer.

Sean Moloney

Thank you all very much indeed, Chris. I’d like to echo your comments, to thank the panellists today, for a really good debate, an edited version of which very soon will be available on the Ship Management International website and the sent out to all of the readers. It’s a fascinating subject and I think a very exciting future lies ahead as the industry evolves over the next five to 10 years. l

Scan QR code to watch Webinar

Musical fund-raiser for Ukraine

Well-known maritime lawyer Julian Clark, VP and Senior Legal Adviser of Gard (UK), is using music to raise vital funds for Ukraine by releasing a haunting song and heart-rending video highlighting the impact of the war from a child’s perspective. Having previously house two Ukrainian refugees in his home, he is releasing a song and video for download from his group Love Street’s YouTube page. Recorded at Peter Gabriel’s world-renowned Real World Studio and produced by award winning producer George Shilling, the song features guitar, sax, grand piano and violin, accompanying Julian’s vocals. Separately, Ukrainian film producer Angelina Bakaliar weaves real-life footage with emotive graphics in a hard-hitting video. Proceeds from the song’s sales are being shared between international maritime charity Stella Maris, which is working in Odesa to support Ukrainian seafarers and their families, and Caritas Ukraine, which provides humanitarian support in the country. l

ONE hosts 2nd Container Shipping Summit

Ocean Network Express (ONE) hosted the 2nd Container Shipping Summit in Singapore in early August, in collaboration with Anchor Ship Partners and Kozo Keikaku Engineering. The summit brought together industry experts and academic leaders to find breakthrough solutions to the pressing challenges in the container shipping industry. Guest of Honour, Senior Parliamentary Secretary (SPS) for Transport Mr. Baey Yam Keng, in his opening remarks thanked ONE for its contributions to Maritime Singapore over the years, particularly in supporting the nation’s digitalPORT@SG, cybersecurity initiatives, and championing the development of maritime talent through internship and talent management programmes. SPS Baey outlined three areas Singapore’s Ministry of Transport saw for the maritime industry to flourish in the age of disruption – decarbonisation, innovation and talent management – and noted ONE’s strategic role in enabling collaboration among stakeholders to seize opportunities and overcome future challenges in the sector. l

Transworld and FLEET form management jv

Transworld Group and Fleet Management (FLEET) have established a new ship management joint venture, Transworld Fleet Management. “FLEET has managed a number of our vessels over the past year, and this joint venture is a natural progression in our working relationship as we continue to add to our ship ownership portfolio, particularly in tankers,” said Transworld Group Chairman Ramesh S. Ramakrishnan. “We share a similar philosophy in striving to manage our businesses in ways that create positive change – meaningfully contributing to the opportunities ahead for us all,” Dr. Harry Banga, Chairman and CEO of FLEET parent The Caravel Group said. “Our FLEET team is committed to supporting Transworld Group as they ramp up their ship ownership and continue to expand in this space.” The joint venture structure will involve Transworld Group and FLEET employees working closely together in India, Hong Kong SAR, Dubai and Singapore. ” l

Baltic Exchange co-hosts 8th Global Shipbrokers Forum

In late June, the Baltic Exchange co-hosted with the Hellenic Shipbrokers Association (HSA) the 8th Global Shipbrokers Forum in Piraeus, Greece. The two-day event discussed a number of topics affecting the global maritime industry including environmental regulations and the impact of global sanctions. The forum opened with a welcome speech by John Cotzias, President of HSA, and the opening panel featured a number of prolific speakers, including Baltic Exchange CEO Mark Jackson; Charalambos Fafalios, Chairman of the Greek Shipping Co-operation Committee; Angelos Pantouvakis, Dean of the School of Maritime and Industry Director at the University of Piraeus; and George Pateras, President of the Hellenic Chamber of Shipping. Following the two-day event, which also focused on dry bulk and tanker shipping, a fantastic gala dinner was held at the Peace & Friendship Stadium in Piraeus, which featured industry speakers and live music. l

Britannia Group supports Bermudian maritime charities

The Britannia Group, the oldest mutual P&I Club, in early July made separate one-off donations of USD75,000 to four charitable organisations based in Bermuda: the Bermuda Maritime Academy, Bermuda Sailors’ Home, Bermuda Sloop Foundation and Endeavour. Britannia Group’s links to the marine reinsurance market in Bermuda go back to the 1990s when it set up a Bermuda based reinsurance company called Boudicca, later merged with its other reinsurance vehicle in Bermuda, USMIA. “Making sizable donations to these very deserving maritime charities is an appropriate way for the Britannia Group to demonstrate its support for their invaluable work in supporting seafarers at every stage of their careers,” said Andrew Cutler, CEO, the Britannia Group. “Whether it is training Bermuda’s next generation of mariners or offering recreational spaces where sailors can relax and unwind ashore, these charities perform a vital service to the maritime community.” l

granted Observer status

by UNCTAD

WISTA International, the global organization dedicated to promoting women and diversity in the maritime and trading industries, in June received approval as an Observer by the United Nations Conference on Trade and Development (UNCTAD). Under this recognition, WISTA International is authorized to appoint representatives to actively participate in the public intergovernmental meetings organized by UNCTAD, creating opportunities for both parties to address matters of mutual interest. Elpi Petraki (pictured), President of WISTA International, called the authorisation “a momentous achievement for our organization. It underscores our dedication to advancing gender equality and empowering women within the maritime and trading industries.” l

Analysis

Russia-Ukraine ‘black swan’ event redefines oil trades

By Ian Cochran

Looking back 18 months to events before and after February 2022 when Russia invaded Ukraine, Gibson Shipbrokers had noted at the time that fundamentals suggested the tanker market needed a black swan event to trigger its own super cycle.

On the 24 February 2022 that happened, as the war triggered self-sanctioning, followed by oil embargoes and price caps, which served to redefine oil trade flows on a scale never seen before.

This created large oil trading inefficiencies and boosted tonne/mile demand well beyond the preinvasion scenario.

Russian crude oil is mainly shipped in Aframax and Suezmax hulls, rates for both of which have spiked since the invasion to approximate – and sometimes even exceed – those for larger VLCCs (see graph).

Last year, China’s zero-Covid policy proved a drag on the crude tanker market; however, with a looser policy heading into 2023, China was to contribute nearly half of all demand growth.

Despite a gloomy backdrop, last year’s oil production surged by 4.7 mill barrels per day, driven largely by gains

in the Americas and the unwinding of OPEC+ production cuts.

Refinery throughputs also gained 2.3 mill barrels per day year-on-year, as diesel refining margins strengthened on the back of recovering demand, gas to oil switching and Russian supply concerns.

On some routes, freight rates averaged record levels in 2022. For example, LR2s on the Middle East/ UK-Continent route averaged $4.1 mill per voyage last year, versus a previous record average of $3.4 mill in 2008. Other routes briefly saw all-time highs, such as the Aframax cross-Caribbean route, which briefly hit WS640. High freight rates and demand for older tonnage (much of which was thought likely to trade with Russia) also led to exceptional increases in asset values. For instance, the price of a 10-year-old Aframax increased more than 50% from January to December 2022, reaching levels not seen since 2008. Newbuilding prices followed suit (see graphs).

Moreover, prospects for the oil tank fleet look good for the immediate future with much lower levels of newbuildings due to deliver than in recent years (see graph) and major yards already full (mostly with containership or LNG projects) until 2025/6.

Despite being under sanctions and price caps, Russian seaborne crude exports remained robust at 5.18 mill barrels per day in January 2023, versus 4.5 mill barrels in December 2022 when the crude price cap came into force.

In March of this year, Russia announced a crude output cut of 500,000 barrels per day, compared to January levels to support prices, due to the price cap. In addition, there was a 25% cut in March exports to the West against February levels.

Crude oil continued its positivity as in January/June 2023, global crude oil loadings went up by 8.9% year-on-year (y-o-y) to 1,080.8 mill tonnes, excluding cabotage trades, according to Italian broking house Banchero Costa, quoting Refinitiv’s tracking data.

This was well above the 992.4 mill tonnes recorded in the first six months of 2022 and the 923.5 mill tonnes reported in the same period of 2021. The figure was also slightly above the 1,051.3 mill tonnes reported in the first half of 2019.

Russian exports increased by 7.6% y-o-y to 119.7 mill tonnes, or 11.1% of global trades.

As for demand, seaborne imports into the European Union (EU27) increased by 6% y-o-y to 235 mill tonnes in January/June this year, accounting for 21.7% of global seaborne crude oil imports, Banchero Costa said.

Chinese imports increased by 17.2% y-o-y to 251.4 mill

tonnes, amounting to 23.2% of global trade, while Indian volumes increased by 3.6% y-o-y to 118 mill tonnes and shipments to ASEAN increased by 18% y-o-y to 117.9 mill tonnes.

Clean products conundrum

Turning to the clean products trades, on 5 February 2023 the EU banned all Russian refined products imports.

At the same time, a global price cap was put in place by the G7 Countries, which barred Russian access to western shipping companies, insurers and other maritime service providers, unless the refined products are sold for $100 per barrel or less, Poten & Partners said.

According to Vortexa, Russia’s seaborne product exports averaged 1.69 mill barrels per day from January,2020 to February 2022. Exports dipped slightly to 1.66 mill barrels per day in the 11 months between the start of the conflict and the EU product import ban.

However, since then Russian product exports have increased. During February/June, 2023, Russian seaborne product exports averaged 1.84 mill barrels per day.

Moscow also had to find alternative customers. A review of the main changes in Russian export flows showed that exports to the EU countries, like the Netherlands, France, Belgium, Germany and Poland, as well as to the UK, fell away after the ban.

Almost half of Europe’s imports consist of diesel/gasoil and Russia was its primary source. Since February 2023, Europe has imported more diesel from Saudi Arabia, India and the US, which significantly increased European tonne/ mile demand.

Russia has been successful in finding alternative outlets for its refined products, including Turkey, Brazil, Nigeria and Ghana, as well as the Middle East - UAE and Saudi Arabia in particular, - which also boosted tonne/mile product carrier demand.

There is still no sign of a resolution to the conflict but even when the parties eventually stop the hostilities, pre-war trading patterns will not return for some time.

Product tanker tonne/mile demand and rates will remain strong at least through 2024, Poten has forecast. l

Alternative Viewpoint

Give shipping some credit

By Michael Grey, MBE, is an internationally respected maritime commentator

There is a lot of disappointment around these days. It has become a useful word for anyone who fails to get their demands met. Trade unions are disappointed when the government fails to get around the mythical table over their wage claims. Government ministers express their disappointment at the announcement of the latest strike.

So it was absolutely predictable that the IMO’s recent high-profile MEPC 80 meeting would conclude with the various non-governmental organisations, supporting a tougher line on shipping’s greenhouse gas emissions, voicing their disappointment at what they regard as a lack of progress. This was even though 175 member nations supported the aim for shipping to reach the nirvana of “net zero”, on or around close to 2050, “taking into account different national circumstances”.

Even the establishment of various milestones along the route with GHG reductions of 20% by 2030 and 70-80% by 2040, failed to mitigate the disappointment of the activist organisations, who were quick to convey their regrets to the media, which naturally inclines towards the negative, in its reporting of these unfamiliar maritime topics.

It is not as if industry, which invariably is cast in the role of wicked polluter, is reluctant to fall in with the reasonable demands upon its emission reduction. It has itself called for a global levy on ships’ GHG emissions, even though decisions on this complex matter have been postponed while the mechanics are worked out. But it is the industry, which is going to do all the heavy lifting in this transition from its reliance on fossil fuels, which badly needs rather more support and incentives. These have so far been lacking.

It has always been too simple to criticise the pace of the IMO proceedings. Those who march to the climate catastrophist drum find it exceedingly easy to ignore the complexities of what they demand. They demand set dates inscribed in calendars, unambiguous legislation and all enforceable by rigid regulatory fiat, while IMO’s approach has to be that of a consensual, technical body, which some

forget that it remains. And the more is learned about the complex passage to shipping’s net zero, the more challenging it becomes, so it is perfectly reasonable for a more considered approach.

Has it been even remotely sensible, we might ask, for certain governments to have rushed ahead with legally enforceable programme to ban internal combustion machinery, gas boilers and mandate “sustainable” energy, subsequently to discover that such aims are ridiculously unachievable? To legislate in haste is generally a subject of ultimate regret, when the fine details reveal probable consequences. Maybe that is the difference between IMO, which will be largely attended by people who have some knowledge of the subject, and the impatient lay legislators in national (or regional) governments, who tend to be influenced by activists making a lot of noise.

It would be a plus point if the shipping industry could just sometimes be credited with the efforts it is making to improve its sustainability and reduce its environmental footprint. It is individual shipping companies, working with technology and employing their operational experience, that has already been responsible for substantial measurable improvements.

Scarcely a day goes by without an announcement of major investments in fuel economy through machinery upgrades, the development of better hull forms, smoother coatings and operational efficiencies. There are ships entering service today that are up to 40% more efficient than their immediate predecessors, themselves only ten years old. There are shipping companies spending serious money in new fuels, new blends and adaptive machinery that will be capable of running on cleaner, future bunkers.

And while activists express their regret that the changes are not going further and faster, one notable missing item in all this debate is what it is going to cost, not just to the industry players doing the investment, but to those whose goods are carried aboard the cleaner, greener ships of the future and who ultimately will have to pay the bill. There might be disappointment there too. l

Technical

Joint R&D projects light zero-emission pathways

By David Tinsley

To attain the goal of zero-emission shipping, there is no ‘one size fits all’ solution. Combinations of measures and technologies are needed. This includes not only alternative fuels for propulsive and auxiliary power and the use of renewable energy resources, but also hydrodynamic and operational improvements, with final solutions and configurations moulded to the particular vessel, operating profile and trade.

Contributing enormously to the pool of knowledge that can help guide and inform shipowners and the allied industries as to the most practical and viable pathways towards a low-carbon and ultimately net zero carbon future is the expansion in R&D activities fostered by publiclysponsored research and innovation programmes. The effectiveness of many of these EU- and nationally-funded research and development schemes has increased in recent years thanks to agendas that are more results-driven and pragmatic than was often the case earlier, and to grant

terms and conditions that promote collaboration and wider technology referencing.

Decarbonisation alternatives for long-distance shipping are far more limited than for other modes of transport, but hydrogen-based fuels such as ammonia and methanol figure increasingly in deep-sea vessel newbuild contracts. DNV considers that the hydrogen-related domain as a whole could come to represent 50% of the fuel mix by 2050. The acceleration in the nomination of a methanol-capability or methanol-readiness for the propulsion of newbuild merchant ships ordered this year is one of the outstanding features and trends in current investment.

Although it is acknowledged that zero-emission goals for shipping are hard to achieve because of the industry’s diversity, structure and global scale, the IMO has made decarbonisation of the world fleet its priority. To that end, in July 2023, the organisation adopted a revised strategy to secure reductions in greenhouse gas (GHG) emissions.

Maersk has recently ordered more tonnage capable of operating on ‘green’ methanol. (credit: Maric design)

This calls for a minimum 40% diminution in CO2 per unit of transport work and a 20-30% cut in total annual GHG emissions by 2030 compared to the baseline year of 2008, looking to a 70-80% reduction by 2040.

In keeping with the intensified effort, a research partnership has been formed with, and funded by, the South Korean Government under the guise of the Future Fuels and Technology for Low- and Zero-Carbon Shipping Project (FFT). The initial phase of FFT, assessing the state of readiness and availability of low- and zero-carbon options, fed into the revision process of IMO’s initial GHG strategy, drawing on a study prepared by DNV and UK consultancy Ricardo-AEA.

Significantly, while the Ricardo/DNV research team did not view technological, commercial, infrastructural and shipyard readiness as limiting factors, its report underscored the vital importance of realising new policy agreements in the immediate term so as to achieve the more ambitious decarbonisation targets now sought.

The industry as a whole has generally portrayed LNG as a ‘transition’ fuel. However, this view is now being questioned by authoritative sources, among them the UCL Energy Institute at University College London (UCL). In a contentious 2022 report on LNG as a marine fuel in 2022, the UCL suggested that the environmental benefits of LNG are limited, or negative, in comparison with low-sulphur heavy fuel oil(LSHFO), on the basis of full life-cycle analysis of emissions, including GHG emissions. The UCL’s findings were based on what it described as “growing scientific evidence”.

The study indicated that the least-cost pathway for shipping to make the transition from fossil fuels is for hybrid and electric powering solutions to be used in the short-sea sector, and for scalable hydrogen and hydrogen-derived fuels such as ammonia and methanol to be used in the deep-sea sector.

The warning is that LNG-fuelled vessels could find that they will be in competition much earlier than foreseen from zero-emission ships, if international and national policies to decarbonise shipping in line with the Paris Agreement were to be in place by the end of the decade (i.e. 2029/2030). If the economic benefit and financial return from higher capital cost LNG-fuelled ships does not last as long as expected, due to zero-emission shipping investments being incentivised, the owners would be at risk of financial losses—so-called ‘stranded value risks’.

The report showed that orders had surged in recent years for vessels capable of running on LNG fuel, to the extent that 65% of newbuild deliveries by 2025 would be LNG-capable, up from 10% only a couple of years ago. Investment in vessels fitted with LNG-fuelled machinery has been stimulated for some years by environmentally tagged public funding, including schemes arising from the EU’s encouragement of the fuel’s usage and associated infrastructural development,

and incentives such as Norway’s NOx Fund in Norway, together with policies adopted through export credit agencies, such as those of major tonnage constructors Japan and South Korea.

With the overarching objective of accelerating the uptake of synthetic methanol as a marine fuel, the Green Maritime Methanol (GMM) project was completed in its first phase by a Dutch-led research consortium during the early part of 2021. The participants immediately decided to implement a follow-up study, dubbed GMM 2.0, in August 2021. The consecutive projects have addressed the methanol supply chain, safety issues, European and national policy instruments, and the overall business case, in order to determine the viability of the fuel and any impediments to making the transition to its use.

In the report on GMM 2.0 published in May 2023, it was stated that various matters had been identified which warranted further investigation, such that plans have now been laid for GMM 3.0.

Over 30 companies, authorities and Dutch academic institutes have thrown their weight behind GMM, under the coordination of the Netherlands Organisation for Applied Scientific Research (TNO) at Eindhoven, and benefiting from financial support afforded by the Ministry of Economic Affairs and Climate Policy.

While green methanol is clearly viewed as a feasible alternative energy carrier candidate for replacing fossil fuels on board ships, the research team has underscored the fact that methanol is toxic to humans and has a flashpoint of 12degC, well below the minimum 60degC prescribed under SOLAS.

Methanol is the subject of another and large-scale Dutch research programme, the MENENS project, to advance knowledge and validate the fuel as a low-carbon option for shipping. The four-year study, comprising 22 participants from across the industry, has been allocated EUR24.3 million ($27.2 million) in grants by the Netherlands Enterprise Agency towards an overall budget of about EUR38 million ($42.6 million). The broad-based agenda encompasses industrial research and experimental development, the latter phase to include the scheduled conversion in 2023 of a survey vessel’s main engine to run on methanol, so as to provide an sea-going test platform.

EU funding commitments include the Ammonia 2-4 research endeavour that has given impetus to the development of both two-stroke and four-stroke marine engines capable of running on ammonia. Drawing on grant allocations totalling EUR10 million ($11.2 million), awarded under the Horizon Europe provisions, the collaborators in the project are tasked with preparing two- and four-cycle technology demonstrators and with a subsequent vessel retrofit for the two-stroke version.

Wärtsilä is acting as coordinator, partnered in the studies by Dutch naval architecture consultancy C-Job, the National Research Council of Italy (CNR) and Geneva-headquartered Mediterranean Shipping Co (MSC), one of whose vessels will be the platform for the engine conversion and in-service test phase.

Contemporaneously, a major UK project was launched in March 2022 to develop engine technology based on the use of ammonia fuel. Dubbed MariNH3 (‘Decarbonised Clean Marine: Green Ammonia Thermal Propulsion’), the initiative has a five-year timetable and forms part of the national drive towards a decarbonised marine future.

When burned, ammonia (NH3) turns back into nitrogen and water and does not produce the CO2 that ensues from fossil fuel combustion. However, the relationship between the fuel’s slow-burning properties and NOx formation is a drawback, and a key element of the MariNOx work programme is accordingly to achieve ammonia engine concepts capable of high thermal efficiency and ultra-low NOx creation.

Funded by the UK’s Engineering & Physical Sciences Research Foundation (EPSRC), the £5.5 million ($7.2 million) MariNH3 initiative has a five-year timescale, with completion set for 28 February 2027. Coordinated by the University of Nottingham, the research partnership includes the BMT Group, Lloyd’s Register, Rolls-Royce, Cummins Power Generation, Ricardo, the Maritime & Coastguard Agency (MCA), BP and Shell. Two of the other participants, MAHLE Powertrain and Dolphin-N2, are applying their respective Jet Ignition and Recuperative Split Cycle (RSC) technologies to the development.

The fact that the internal combustion engine is the platform for MariNH3 in the bid to decarbonise shipping reflects the shortcomings of battery-electric power for deepsea vessels.

Dutch collaboration aimed at spurring the shift towards zero emission shipping focused on hydrogen applications is expressed in the SH2IPDRIVE (‘Sustainable hydrogen integrated propulsion drive’) research project. 25 partners from across the industry and academia are tasked with laying the ground for the development of reliable, safe, standardised, scalable and cost-effective solutions using hydrogen for zeroemission propulsion and auxiliary power. The remit includes bunkering and storage.

The Netherlands Enterprise Agency has awarded a EUR24.2 million ($27.1 million) grant towards the overall EUR33.6 million ($37.7 million) budget for SH2IPDRIVE. The global industry’s pursuance of a multi-faceted approach that melds research and innovation with policy offers the best prospects for a feasible energy transition. l

IMO’s FFT project with South Korea is addressing the preparedness and availability of low- and zero-carbon marine fuels

Ammonia research engine at the UK’s University of Nottingham (photo: MAHLE)

Wärtsilä is co-ordinating EU-funded programme to accelerate ammonia engine development

Decarbonisation

Onboard Carbon Capture & Storage expands already valuable role of scrubbers

Scrubbers enable the uptake of onboard carbon capture and storage (CCS) technology, providing another major benefit for shipowners as they forge ahead on their decarbonisation journey, says Sigurd Jenssen, Director at Wärtsilä Exhaust Treatment.

Currently, there are not enough low-carbon energy sources to power the global fleet. Supply will be scaled up over time as more renewable energy is produced, but with such a high proportion of maritime energy use being based on fossil fuels, it is only pragmatic to scale carbon capture and storage (CCS) at the same time.

While onboard application of CCS technology is new and will require space to be available in the exhaust stack, the alternatives are complex and space demanding. Methanol and ammonia fuels will require two to three times more tank space than fossil fuel oil. Back-up fuels will need to be fitted, which will take up additional space. Additionally, these solutions require onshore infrastructure development to produce and bunker the new fuels.

Wärtsilä’s Exhaust Treatment (ET) believes that as an existing, proven technology, scrubbers can act as the perfect launchpad for CCS technology. While the Global Sulphur Cap in 2020 was a huge driver for implementing the technology, favourable economics continue to create a strong case for fitting a scrubber today. And given the spread between prices of HFO and VLSFO, the payback period for scrubbers is likely to raise interest with many ship owners.

Beyond sulphur, adding onboard CCS can dramatically reduce CO2 emissions both for fossil fuels and for new fuels such as biofuels, bio-LNG and methanol. So, rather than being a short-term proposition for cutting the SOx associated with heavy fuel oil, scrubbers are a technology with decades of decarbonisation potential

Technology development

In January 2022, Wärtsilä began systematic testing of a landbased CCS installation. Now, a liquefaction module and tank for

intermediate CO2 storage has been incorporated into the test system. This milestone completes the full CCS capture chain and means that a full-sized system can now be tested; the first of its kind for the sector. It comprises a 1MW Wärtsilä test engine, scrubber, stripper, boiler, liquefaction, and storage tank.

We have already scheduled the industry’s first full-scale, high-capture pilot with Solvang ASA, and these preliminary land-based tests will help to iron out the broad challenges before we tackle the intricacies associated with the trial onboard Solvang’s 20,000cbm ethylene carrier Clipper Eos (pictured). This retrofit project will be another major milestone in the process of getting a CCS product on the market by 2025. With it, the anticipated cost of capturing CO2 will be between 50 and 70 Euros per tonne.

Onboard processing

Our integrated CCS system, working in harmony with a scrubber and EGR system, is based on the principle of removing as many gases from the exhaust as possible, tackling each pollutant in a modular fashion. Initial tests of the solvent-based CO2 capture system already prove that it meets the ambition of capturing 70% of CO2 at the point of exhaust. The system has the capability to capture a higher percentage in the future and is being designed with the flexibility to capture CO2 using different rates of energy consumption, dependent on a vessel’s requirements.

In general, the higher the capture rate, the more energy intensive the system will be. Wärtsilä ET’s goal has been to find a solvent that operates at a lower temperature so that the heat demand is lower. The benefit of a solvent-based method is that there is already established research and development that will help to bring maritime CCS to market sooner.

In terms of storage, Wärtsilä ET believes liquefaction is the best solution, at least in the short term. The liquefaction unit now installed on our test system consists of a CO2 compressor, a humidity adsorption dryer, a refrigeration unit, and

a storage tank. The stream of CO2 out of the stripper/ absorber needs to be dried and compressed to the right pressure and then cooled in order to liquify and be pumped to a tank.

The solution is energy demanding, particularly at the compression stage. We are looking at ways of reducing energy consumption through purification and the adoption of efficient ways to move, dry and compress the gas to create a smaller carbon footprint.

A valuable solution

Wärtsilä’s CCS system will be applicable for all vessel types, sizes, and segments. If all ships with a Wärtsilä scrubber installed CCS systems, they would capture 30 million tonnes of CO2at a capture rate of 70%. That estimate gives a reduction potential for the total scrubber-fitted fleet alone of 200 million tonnesabout 20% of the current maritime Greenhouse Gas emissions.

There are many potential markets for the captured CO2. First movers will be able to sell CO2 by tapping into fertilisers, building materials, packaging, or - if captured with the right purity – food and drink streams. Early indications are that, as a commodity, carbon could fetch $100 a tonne. We are therefore confident that shipping’s captured CO2 will become a utilised commodity.

All of this is only possible thanks to the decades of innovation and experience that exhaust gas cleaning systems have provided our industry with. We are used to adapting solutions and technologies around the stack, and to tackling all the ingredients of shipping’s pollutant cocktail. It only makes sense to leverage this experience and tackle the biggest challenge of them all: CO2, and in doing so, drive genuine and lasting decarbonisation impact across our sector. l

Navigation

Quality counts: how to obtain optimal data for compliance, efficiency and performance

With the advent of CII, the upcoming EU ETS, and the challenge of remaining competitive in an ever more complex, demanding maritime industry, harnessing the power of data has never been so crucial. But, argues Jacob Clausen, Performance Director, NAVTOR, to unlock the true potential of data you need to ensure it’s of the utmost quality. Fail to do that, and your business could pay a heavy price...

The maritime industry has never been so accountable. And it needs to be.

To have any chance of meeting our most ambitious climate goals we must collect, manage and utilise vessel and fleet performance data with transparency – ensuring compliance and securing the future; for our businesses, as well as the environment.

But you can only manage what you can measure. And if those measurements (namely, the data) aren’t high quality then you can wave goodbye to effective management.

That’s why data quality and integrity is absolutely fundamental to our individual and collective progress as an industry. With the optimal quality you can unlock the best actionable insights, leading to the most transformative operational and business improvements.

With poor quality data, well… your decision making will be of an equal standard. And nobody wants that.

From commitment to control

Let’s start with the challenges.

CII ratings are now a reality, with every vessel measured on a scale of A to E. C is the target, with a failure to achieve that leading to implications for your vessel’s Ship Energy Efficiency Management Plan (SEEMP), its asset value, your reputation and access to customers, financing, and much more. In addition to the current reporting requirements, such as EU MRV and UK MRV, the regulatory landscape is constantly evolving leading to new demands, such as the EU

Emission Trading Scheme (carbon tax), expected to come into force next year.

And on top of this are your individual business interests, with (no doubt) ambitions to trim OPEX, reduce fuel consumption and emissions, satisfy charter party agreements, and ensure the best services and results for all stakeholders.

Achieving all these aims takes a commitment which goes far beyond mere ‘box ticking’. Companies need advanced performance monitoring, management and optimisation solutions for their fleets if they are to have any hope of achieving the sense of awareness and control needed to prosper today, and tomorrow.

So, robust data collection of key reports – such as noon reports; capturing a vessel’s complete operation, including specific performance areas – is essential. The greater the automation of this process, with prefilled fields to reduce administration and sidestep human error, the better.

But this is really just the start of the process, not the end.

Building on solid foundations

Once you have the data it’s time to ensure its quality, integrity and consistency. Remember the data is the foundation you’ll be building any insights and improvements upon – so get it wrong and everything that follows could be crooked.

Firstly, data should be validated at the point of entry – as its submitted/typed in. This will ensure corrections are made at the point of entry and you don’t have to filter out incorrect data (potentially losing valuable information/insights), or delay actions to address sub-optimal operation.

However, most systems utilise simple, if not rather basic, machine validations, and I’d argue that that is insufficient for such absolutely business-critical information.

That’s why I’d recommend a dual validation process.

For example, at NAVTOR we offer services whereby data (manually submitted or automated) isn’t just checked by specialist software, but also by teams of subject matter experts, ensuring that any reporting errors or instrument calibrations are immediately rectified. This elevates basic monitoring and data collection to a new level. Not only do you get accurate data, but you also access the means (and expert advice) to achieve actionable insights and kick start a process of driving continual improvements – for vessels and across entire fleets.

Plotting the path forward

So, rather than ticking those regulatory boxes, you can calculate the best hull cleaning intervals to unlock optimal performance, conduct engine performance analysis and address

potential faults, benchmark vessels, and get the data you need for all CII correction factors and adjustments.

You can also determine the consequences of what will happen if you don’t act, weighing up any potential impact of intervention against eventual operational outcomes.

With the best quality data, you can begin a journey where you know you’re heading in the right direction; understanding not just vessel performance, but how to refine results with adjustments to, for example, speed, idling times and vessel utilisation, and the best ways to meaningfully drive down emissions and realise powerful business benefits.

Easy does it

At face value, the demands and complexities inherent in today’s operating environment are immense, but with the right approach – and especially one with a high degree of integration and automation – owners and operators can turn challenge into opportunity. And with the right solution, that can be a comparatively ‘simple’ process.

But remember, first and foremost, quality counts.

You, your business, your stakeholders, and society itself deserve the very best results, and that’s only possible with the very best data.

This can be the foundation we build our industry’s decarbonisation upon.

Let’s make it as solid as possible.

www.navtor.com

NAVTOR NavFleet monitor

Jacob Clausen

Clean Oceans

Biofouling and hull coating management - a commercial diver’s perspective

by Subsea Global Solutions

The latest IMO environmental regulations increase the demand for underwater services, especially routine inspection and maintenance like propeller polishing and hull cleaning to improve efficiency and manage Carbon Intensity Indicator (CII) emissions as the new rules come into force.

Regular underwater inspections have always been a good idea, serving to check general structural and coating condition, as well as biofouling buildup. Combining this with a propeller polish is well documented to recoup the cost of the inspection within a voyage, or even in a matter of a few sailing days, depending on the vessel in question. Fuel consumption reductions of 5-15% are possible, saving both money and emissions!

Subsea Global Solutions )SGS) specialist teams perform thousands of ship inspections annually, and often that includes propeller polishing.

Proactive and reactive hull cleaning

to the applicable local regulations is applied when required. This wealth of experience provides our teams with data on hundreds of ports worldwide and has innovated several technical solutions including the removal of soluble metals during hull cleaning.

Subsea Global Solutions recently celebrated another milestone by successfully operating in-water cleaning and capture (IWCC) systems (also known as reclaim or closed-circuit systems) for both hull cleaning and propeller polishing in ports in Canada, USA, South Korea, and Northern Europe for a decade. Hundreds of in-water cleanings with capture services have been completed globally on various ship types and coatings.

Safe diving operations require properly sized teams and quality systems. Price should never be an excuse to use companies with substandard equipment, lower safety, or unqualified environmental standards. With regulator and customer’s focused on CII ratings, inefficient bunker consumption, and any additional idling Green House Gas (GHG) emissions are just not accepted today.

New Zealand and Australia continue to lead the way in biofouling policy implementation. The 2023 season began with some hard lessons on biofouling with multiple vessels across all sectors falling foul of strict Invasive Aquatic Species (IAS) implementations in New Zealand

Alignment and priority vary between nation states; while there has been progress with IMO and BIMCO initiatives to refine a collective framework for this, the shipowner must navigate between the myriad of rules and balance compliance against their operating costs together with, carefully managing their CII ratings.

process down to 1 micron, with a final process rendering the effluent ‘inert’ prior to discharge.

and Australia. As a professional leader in underwater services, demand for Subsea Global Solutions technical expertise in the requirements of the New Zealand Ministry of Primary Industries (MPI) and Australian Department of Agriculture, Forestry and Fisheries (DAFF), we are frequently called upon by both existing and new clients to ensure the right details are covered.

With our homeport offices in Australia, Singapore, South Korea, and West Coast USA all having regular experience, and going the extra mile, Subsea Global Solutions is your ideal partner in biofouling management.

While we advise clients to clean vessels well before hard macro-fouling occurs to protect their coating integrity, the EcoFriendly C-ROV has also proven capable in performing proactive and reactive hull cleaning. This also includes the in-water capture of macro fouling.

Clients who make use of our fleet service agreements and Biofouling Management Plans have access to more advantageous service rates, and Online Reporting / report management to assure transparency for compliance.

As a leading underwater services expert, Subsea Global Solutions considers the implementation of international standards for in-water cleaning companies a welcome step towards establishing transparency of operational requirements between maritime states, port authorities, shipowners and commercial service provides for in-water cleaning. This is important in managing client expectations as currently the definitions of what is permitted within a specific job task vary from port-to-port, for example some do not permit cleaning of propeller edges, root, and boss caps, while others do.

Biofouling solutions

As an advocate for safety in commercial diving (it’s our primary core value!) in locations where diver performed hull cleaning is not reasonably safe, Subsea Global Solutions provides two robust Cleaning ROV alternatives, the EcoFriendly C-ROV and the Portable C-ROV.

EcoFriendly C-ROV (seen in operation on blue/red hull photos) provides full in-water cleaning and capture (IWCC) through an industry leading reclaim

Portable C-ROV, is a simple, powerful, and easily transportable nonreclaim system capable of removing all biofouling conditions - including heavier macrofouling. The Portable C-ROV can be deployed to your ship or maritime installation before relocation to prevent Invasive Alien Species (IAS)/ Non-Indigenous Species (NIS) transfer. In most cases, such as in the offshore sector, the Portable C-ROV can be launched and operated from the client vessel.

Both C-ROV systems have been operating to local applicable regulations for over ten years, worldwide.

Subsea Global Solutions has developed other advanced IWCC systems, like the Whaleshark, a diver-controlled hull cleaning machine which removes soluble metals and filters

any particulates down to 1 micron, the Envirohull which filters any particulates down to 1 micron and the Beluga interchangeable underwater tool system for niche cleaning and propeller polishing with reclaim.

Moving on to cleaning methods, what about the brushes (including biodegradable options) versus high pressure waterjets debate – is there a clear answer as to which method is more environmentally friendly? There is no clear-cut single answer to this debate as several factors affect a devices performance while in operation. Several factors like the state of biofouling, device suspension, applied antifouling system (coating), current, draft and location of service may affect a cleaning methods efficiency and environmental friendliness. In summary, not all hull cleaning systems are equal, or indeed designed with the same priorities. Coating protection and cleaning performance are subject to numerous factors; this is why experience matters.

Working with a contractor that understands how to apply the best solution for the specific vessel’s needs requires knowing the type of coating (Anti Fouling Systems (AFS), Friction Release Coatings (FRC), Hard Coatings, etc), its age and biofouling state. These basic factors will influence the cleaning method and even the set-up of the equipment to provide optimal cleaning performance. This is also why collaboration, teamwork and regular contact with the coating manufacturers, environmental specialists and other stakeholders is important to us, we are always learning and seeking to improve the industry’s performance and of course, provide the most costeffective professional service to our clients.

Objects of Desire

» Orgasmic motoring

The most capable Rolls-Royce created, Cullinan is a landmark exemplar of pinnacle motoring. The Rolls Royce Bespoke service is also truly unique. Whether you create yours at your preferred dealership or at Goodwood, Bespoke is dedicated to bringing your vision to life. Share unforgettable adventures with its spacious interior, Cullinan is an all-terrain, all-season SUV. Drivers journey in confidence, knowing that Cullinan’s limitless performance capability underpins every excursion. With a generous cabin, passengers are safe, secure, and supremely comfortable.

The Cullinan Price on application rolls-roycemotorcars.com

» Elite exercising

Enjoy the perks of an élite exercise bike in your home featuring ergonomic design and immersive trainer-led sessions, with this indoor bike which empowers you to reach your fitness and health goals. With easily adjustable seats and cushioned support, this exquisitely designed equipment is made with premium materials and sleek shapes that fit a modern home perfectly. Choose from various intensity levels and workouts, connecting to your devices and sync with fitness apps to reap the results even faster.

Recline Personal Exercise Bike

£9,1090 technogym.com

» Games craftsmanship

Play classic games in style and elegance with this table created by games brand David Linley. Each unique table is carefully crafted from walnut, with opulent inlays of Macassar ebony and aluminium and topped with a reversible chess board and card table. With storage drawers, the table houses a chess set, backgammon stones, dice shakers, a die set, playing cards and other essentials. David Linley is world-renowned for craftsmanship that honours traditional cabinetmaking and marquetry. Work is carried out closely with designers and makers on each piece to ensure excellence. 1000m2.

Linley Classic Games Table

£24,500 luxdeco.com/

» Fragrance of Exploration

» Inflatable fun!

The tube is specially made for commercial use with maximum durability, including heavy-duty material and a tarpaulin bottom, the tube is completely enclosed in a nylon sheath, three drawbar eyes are sewn at several draw points and numerous soft nylon handles with underlying neoprene pads, equating to the outstanding and professional quality of Spinera. Special wide seats for up to 6 big adults it’s ‘the’ ultimate fun on the water for up to six people!

Spinera Professional Let’s Go 6

€1,398.24 spinera.com

Creating his first fragrance in 1872, Cornish Barber to the Royal Court, William Penhaligan, named it Hammam Bouquet, inspired by the Turkish Baths where he was resident barber. Opening his first store in Wellington Street, Covent Garden, enabled the glorious scent of Penhaligon’s to spread. Still designed in its original style bottles, stoppers and ribbon, the Hammam Bouquet is a favourite among others. Journey to a bygone era of exploration and daring discovery with these exotic perfumes, with the Trade Routes collection, infused with decadent ingredients that arrived at the London docks at the end of the 19th century. If you haven’t already experienced Penhaligon fragrances, we highly recommend that you do.

Trade Routes Collection From £97.00 penhaligons.com

» A showcase ‘on or off’

Why let a blank screen rule your space when you can have a piece of art? Sculpted from wood or fabric and aluminium, Harmony catches the eye and invites conversation even in standby mode. The powerful speakers glide apart and the television floats into the space. A performance that takes movie moments to new heights. Featuring a full-bodied, detailed stereo, this three-channel powerhouse has the sound of the cinema. Harmony works seamlessly with Beolab speakers to boost the bass, amplify the accuracy and submerge you in sound. Picture shows Oak Wood - 77”.

BEOVISION HARMONY

£19,050 bang-olufsen.com

Inspirational art for hope

An annual series of events by the Human Impacts Institute that showcase artists creating climate-inspired public works and actions, for a decade has showcased climate-inspired artwork from around the globe. Featuring 194 artists from 31 countries, reaching over 200,000 audience members it’s a celebration of artists and culturalists whose work inspires innovation, collaboration and action for climate justice. Everyone wants happiness, health, and dignity for themselves and their loved ones and needs shelter, clean food, air and water to survive but for the majority, the world is not always a place to thrive. The awards aim to bridge the disconnect between society and nature and serves as a home for experimenting with how we can be creative in building a more just future.

Dr Nerina Ramlakhan humanimpactsinstitute.org April-May 2024

Tired But Wired – How to Overcome Sleep Problems

Souvenir Press

Offering Dr Nerina Ramlakhan’s proven Sleep Toolkit, which has helped thousands of people, from burnt-out executives to mothers struggling with the demands of a job and children, to get a better sleep. Hectic lives and modern living directly impact our ability to sleep well but, overturning the myth that you need eight solid hours every night, Dr Ramlakhan says that you really need fewer hours of quality restorative sleep, and shows you how to get it. Describing the science behind sleep and how to find your natural sleep rhythms, the book provides the Sleep Toolkit Programme that anyone can use, adjusting it for your own lifestyle, needs and personality to provide all the essential habits and routines you need for brilliant sleep.

Dionysus Mansion

June street Nr. 5, Limassol, Cyprus dionysusmansion.com

A fun and vibrant gourmet restaurant, Dionysus Mansion specialises in Cypriot and Greek Cuisine with a modern twist, believing that food, accompanied by good wine, reveals a time to be remembered and revered. For exquisite dining, why not book a table and find out what there is to discover, choosing from a truly authentic menu, while summer nights are flooded with ambient warm lighting, nature from the treescape and a culinary experience to be remembered. For reservations call +357 25 222210 or email info@dionysusmansion.com .

Teatro Greco Syracuse, Sicily teatrogrecotaormina.com

At 138 metres in diameter and dating back to the 5th century BC, the Greek theatre of Syracuse was on the of the largest in the ancient Mediterranean world, a place where great playwrights wrote and staged their tragedies. Still in use today, the Italian national institute for classical drama has hosted a programme of ancient Greek drama at the theatre since 1914, with productions taking place regularly and is a trip to add to the bucket list.

The Magnetism of Antartica

The

Ross Expedition 1839-1843

By John Knight

The treatise ‘On the Soul’, by Aristotle in antiquity, reveals that man becomes alive by discovering the five senses, knowledge and passion. Alexandre Mazzia welcomes all to share his soul, through his exquisite restaurant boasting three Michelin stars. It offers an exclusive signature menu delivering the chef’s finest creations, where guests can dine in the form of a ‘carte blanche’ giving free rein to the creation and imagination of the chef, and offering sea and plants that dominate this sensory stroll. The menu provides one immersive pairing (wine, champagne and sake tasting) per person from our sommelier’s selection, water and hot drinks and will cost around €1,280 for two people. Call +33 (0) 491 248 363 for reservations and go online for a more in-depth understanding of this unique dining experience.

Iconic MINI goes electric, keeps its flair

MINI circa 2023 bears little or no resemblance to the one born out of the Suez crisis in the mid 1950s and the ensuing oil shortage that hastened the demand for more affordable motoring.

But with the world now facing new environmental and economic challenges, it was inevitable that MINI would ditch fossil fuels and go electric.

So does pairing up one of the world’s most iconic cars that’s small, nimble and has kart-like handling, with an electron powertrain that brings instant acceleration, low running costs and near silent running, work?

One thing’s certain. Electric car acceleration is addictive when you experience that instant jolt to the kidneys, but you need to be mindful of those around you who might not be moving quite so swiftly away from a junction or set of lights. Based on the same body shell as the three-door hatch, there are noticeable cosmetic differences.

A MINI Electric logo appears in various places, as well as on the tailgate and front radiator grille. The front grille features the hallmark hexagonal shape but is closed, as the car requires less cooling. Those of us who remember early Minis, which had a habit of cutting out on rainy days when water

found its way to the front mounted distributor cap, may well wish we’d had that feature then. Inside, and externally too, Union Flag logos abound, proving our German friends are certainly adept at selling nostalgia to the modern motorist.

With the average daily distance travelled by UK motorists under 30 miles, a couple of charges a week won’t break the bank. And it makes the car’s 145 mile range seem not quite so offputting, though you’d be hard pressed to hit that figure, especially when the temperature drops. So when others are offering a 200 mile plus range there’s a decision to make here.

MINI has been owned by BMW for some time and the motion comes from the latest, powerful version of the synchronous electric motor that provides a maximum output of 181bhp and maximum torque of 199 lb/ft.

As a result, the car accelerates to 62mph in just 7.3 seconds – it feels like warp-factor propulsion as the response is instantaneous –though the top speed is only around 93mph. Power output is actually around the same as the 2.0 litre petrol powered Cooper S, even though Electric is 145kgs heavier.

There are four MINI Driving Modesselected via a switch located on the right-hand side of the toggle bar. SPORT mode has more direct steering and a more rapid power delivery. The MID setting has less aggressive steering while GREEN mode features more gentle accelerator actuation. In GREEN+ mode, some comfort functions such as air conditioning are limited or deactivated to save further power and increase range.

MINI Electric

(Mini Cooper SE in the rest of the world)

Price: £32,550

Engine: synchronous electric motor, 32.5kWh battery

Power: 181bhp

Torque: 199lb/ft

Transmission: single speed automatic

Top speed: 93mph

0-62mph: 7.3 seconds

Economy: up to 145 mile range

CO2 emissions: 0g/km

A toggle switch to the left of the start/stop toggle provides the choice of intense or low-level power regeneration, regardless of the MINI Driving Modes to allow the driver to choose the best setting for their own style of driving. This recharges the battery when the driver lifts off the accelerator, preserving energy, and acts as a braking force.

Drive sensibly and you might not feel the need to go anywhere near the brake pedal, such is the feeling of retardation experienced when you ease off the righthand pedal.

The new MINI Electric has a new digital dashboard that still has that large retro centre dial, with a 5.5-inch colour screen behind the steering wheel. Road speed is shown at the centre in figures with a peripheral scale band, as well as information on the charge level of the battery, the selected MINI Driving Mode, the status of the driver assistance systems and check control messages.

There are two trim levels available, and while it’s not – and never has been – the most spacious car in its class there’s still adequate legroom aboard for four adults. And, over 60 years on, it’s as desirable as ever. l