SHIP MANAGEMENT INTERNATIONAL ISSUE 107

Cover Story In the line of fire See pp. 8, 10, 12, 22, 36, 41, 47 & 80

ISSUE 107 JANUARY/FEBRUARY 2024 THE MAGAZINE FOR THE WORLD’S SHIP OWNERS & SHIP MANAGERS

STRAIGHT TALK 8 – Navigating the future: safety first!

FIRST PERSON

NOTEBOOK 10 – Suez Canal toll earnings set to continue falling, as vessels re-route around Cape of Good Hope

12 – Likelihood of legal disputes stemming from Red Sea crisis

14 – Crew recruitment becoming

25 – Arsenio Dominguez, Secretary-General, IMO

harder, Danica crew manager survey reveals

16 – Artificial Intelligence as Get our magazine digitally.

Scan QR code and fill in your details to receive.

Human Resource

HOW I WORK

19 – InterManager elects new Vice President

20 – EU ETS - bare confusion INTERMANAGER OUTLOOK 22 – Capt. Kuba Szymanski Attacks on merchant ships must end now

28 – Catherine Mulvihill, CEO, IFAN

107 January/February 2024

Ship Management International

5

SHIP MANAGEMENT INTERNATIONAL – ISSUE 107 JANUARY/FEBRUARY 2024 THE MAGAZINE FOR THE WORLD’S SHIP OWNERS & SHIP MANAGERS

REGIONAL FOCUS

DISPATCHES 30 – Tale of two mergers:

Isle of Man

Lowering emissions versus raising fleet size

69 – Maritime cluster on a

33 – Euronav’s ‘grey to green’

72 – A crew manager’s view from

pathway

digital footing

Manx Ocean

ANALYSIS 80 – Geopolitics to rule tanker

market for the foreseeable future

TECHNICAL 83 – Evaluating the engine retrofit option

CREW WELFARE 34 – VIKAND launches OneHealth seafarer welfare programme

MARITIME SECURITY 36 – Tackling Houthi threat using AI technoloogy

SHIP REGISTRIES 41 – Registries have to adapt to

TECHNICAL MANAGEMENT 73 – Using digital solutions to enhance vessel maintenance planning and performance

EMISSIONS 74 – How should shipping prepare

constant change

for its EU ETS emissions trading debut in the year ahead?

47 – Belize-flagged Rubymar forced to evacuate crew

AD HOC 76 – Our regular diary section

REGIONAL FOCUS Gibraltar

53 – Planning with certainty in mind 58 – University of Gibraltar ALTERNATIVE working to meet the needs of industry

61 – Geopolitics – a silver lining or a negative backlash?

64 – Gibdock looks to growth

VIEWPOINT 79 – Dr Martin Stopford

Reducing emissions requires new thinking

DECARBONISATION 86 – Simplying emissions compliance

CLEAN SEAS 88 – Holistic solution for hull cleaning

OBJECTS OF DESIRE 90 – Our pick of the most coveted creations

REVIEW 92 – Bringing you the best in arts & culture

LIFESTYLE 94 – Holidays extraordinaire: the road less travelled

Next issue The March/April issue of the magazine (SMI 108) will be appearing at this year’s Posidonia event in Athens and will include special GREECE and CYPRUS reports, including a focus on what classification societies are doing in these major shipping centres.

There will also be an in-depth report on SINGAPORE as Asia’s foremost maritime cluster, including coverage after this year’s Singapore Maritime Week.

For advertising enquiries, please contact Sales by emailing sales@elaboratecomms.com You can also keep abreast of news and subscribe to our daily newsletter at shipmanagementinternational.com

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Ship Management International

Issue 107 January/February 2024

The shipping business magazine for today’s global ship owners and ship managers January/February 2024

|

Issue 107

STRAIGHT TALK Connect with us /ShipManInter

Visit our website www.shipmanagementinternational.com

Join the debate @ShipManInter

Download our App Ship Management International

Navigating the future: safety first!

A

ddressing a subcommittee

been the attacks by Houthi militants on

fortify the safety of those who serve at

of the International Maritime

commercial shipping passing through

sea… I join the calls for caution and

Organization held in early

the Red Sea, the first time that merchant

restraint to avoid further escalation of

February this year, new Secretary-

ships have faced sustained military attack

the situation in the Red Sea and the

General Arsenio Dominguez elaborated

since the Iran-Iraq war of the 1980s – and

broader region, and I particularly urge

on the theme of this year’s IMO World

then only against one type of vessel on a

the immediate release of the Galaxy

Maritime Day, namely: “Navigating the

specific route, not an entire global trade

Leader and its crew” (seized by the

future: safety first!”

artery. In early February it was reported

Houthis back in November).

This issue of SMI examines the Red

“This theme is a pledge to uphold

that 50 ships had suffered missile attacks

the highest standards of safety in every

since November, Israel-based Maritime

Sea crisis from various viewpoints…

aspect of this Organization’s regulatory

AI specialist Windward referring to

including commercial, regulatory,

work while facing the challenges of a fast-

January in particular as having been “a

legal, technological and operational.

changing world,” he said, “in particular

month of mayhem”.

Because, as Secretary-General

with respect to challenges such as climate

“Our mission to safeguard seafarers

Dominguez - subject of our First

change; developments in technology,

takes on particular significance

Person profile - simply states: “The

artificial intelligence; and new threats

against the backdrop of the situation

entire world depends on international

faced by the shipping industry.”

in the Red Sea,” continued the IMO

shipping and seafarers, and therefore

Secretary-General, “emphasising the

ships and cargoes should not be the

imperative for collective action to

subject of attacks.” l

Uppermost of these ‘new threats’ for the past three months and more have

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Ship Management International

Publisher: Editor: Sales Manager: Finance: Design and Layout: Regular Contributors:

Motoring Journalist: Technical Editor:

Sean Moloney Bob Jaques Julian Berry Lorraine Kimble Diptesh Chohan Michael Grey Felicity Landon Ian Cochran Margie Collins Ema Murphy Rob Auchterlonie David Tinsley

Editorial contributors: The best and most informed writers serving the global shipmanagement and shipowning industry.

Issue 107 January/February 2024

Printed in the UK by Warners Midlands plc. Although every effort has been made to ensure that the information contained in this publication is correct, Elaborate Communications accepts no responsibility or liability for any inaccuracies that may occur or their consequences. The opinions expressed in this publication are not necessarily those of the publishers. All rights reserved. No part of this publication may be reproduced whole, or in part, stored in a retrieval system or transmitted in any form or by any means without prior permission from Elaborate Communications.

Notebook

Notebook

The influence of the situation on the various cargo markets has been mixed.

Suez Canal toll earnings set to continue falling, as vessels re-route around Cape Rebecca Galanopoulos-Jones, of Good Hope By Senior Content Analyst, Veson Nautical

A

Suezmaxes and Aframaxes have firmed since the start of December up by around 16% and 63% respectively. The route around the Cape of Good Hope more than doubles the length of voyages from the Middle East to Europe and therefore reduces the supply of available tonnage in the market.

s we entered into the third

proactive approach towards resolving

Canal versus the Cape of Good Hope

month of escalating conflict in

the conflict and mitigating its adverse

(Graph 2) reveals a noteworthy trend.

has reversed a steady downward trend

Yemen [in early February], this

effects on global trade.

The graph illustrates a reduction in

in freight rates since 2022. A large

SCNT through the Suez Canal and a

number of vessels have diverted from

has prompted significant rerouting of

Looking at the weekly tolls graph

In the Container sector, the diversion

vessels with far-reaching consequences

[estimated using toll fees pre-Jan 15],

corresponding increase in the Cape of

the Red Sea to Travel around the

for global trade and transport and

overall tolls have fallen by c.40% since

Good Hope region/transit zone, which

Cape of Good Hope, and this has

the latest trade data from Veson

the end of November from USD 47

is particularly evident since November

also led to increasing earnings with

Nautical indicates a notable shift in

mil to USD 28 mil. Container tolls have

2023. Month on month, there has been

Post Panamax period rates for one-

traffic patterns. Geopolitical tensions

significantly decreased, falling by c.

a significant decline of approximately

year up by c.7% from December.

and conflict have raised maritime

66% from the end of November, where

38% in the sum of weekly calculated

Although the impact on the

security concerns in the region, given

estimated fees fell from c. USD 18 mil

SCNT through the Suez Canal, while

Bulker sector is significantly lower

its strategic importance and critical

that week to USD 6 mil at the start

the sum of SCNT going around the

than for other markets, despite the usual dip in earnings during January, rates have remained

of January. However, in percentage

Cape of Good Hope has increased by

In addition, the ongoing crisis

terms the LPG sector experienced

about 25%.

in Yemen has implications for traffic

the biggest drop with tolls down by

This shift is attributed to a surge in

historically high for this time of the

through the Suez Canal and therefore

c.93% from USD 1 mil at the end of

attacks targeting vessels in the region,

year, even after a decrease from the

Egypt, which may incur substantial

November to USD 153,000 in the first

compelling ship operators to alter their

peak in December.

costs due to the disruptions in

week of January. LNG tolls ranked

routes. The consequences of which

trade and transport. Although this

third, with a fall of c.65.65% followed by

include increased costs including rising

geopolitical events, maritime security

situation could potentially serve as

Crude Tankers which experienced a fall

oil prices, shipment delays, threats

concerns, and global trade dynamics

a catalyst for increased diplomatic

of c.23.34% from USD 7.3 mil to USD

to maritime security, and concerns

underscores the multifaceted

efforts to broker peace, considering

5.7mil in January. Bulkers were the least

about geopolitical instability. Without

challenges facing the shipping industry

the economic losses incurred by the

affected, with a comparatively modest

resolution to the situation, this could

in the current scenario. Although

Egyptian government as a result of the

decline of about 7%.

further impact trade flows and increase

longer transit times and increased

commodity prices and emissions.

earnings may be acceptable in the

maritime trade routes.

crisis. Understanding the economic

The analysis of the sum of weekly

impact on Egypt and specifically the

calculated SCNT (Suez Canal Net

Suez Canal might encourage a more

Tonnage) transiting through the Suez

As vessels divert away from the

Issue 107 January/February 2024

short term, looking further ahead, they could be outweighed by increased

Good Hope route, tonne-mile demand

costs to the owner.

providing support to vessel earnings.

Ship Management International

The complex interconnection of

affected area and opt for the Cape of for various sectors has increased,

10

In the crude Tanker sector, rates for

From the perspective of Egypt, reduced traffic through the Suez

In addition, the intervention of

Canal and therefore a lower income

the US and UK military with strikes has

from toll fees is likely to persist for

caused a spike in oil prices. While levels

the foreseeable future. However,

have not risen as dramatically as they

understanding the economic

did following the invasion of Ukraine,

repercussions on the nation could

there are ongoing threats of retaliation

foster a more proactive approach

from Iranian-backed forces, suggesting

to resolving the conflict and

potential further disruptions to oil supply

alleviate its adverse effects on

in the future.

global trade. l

107 January/February 2024

Ship Management International

11

Notebook

Notebook

Likelihood of legal disputes stemming from Red Sea crisis

Plot of all major maritime security incidents from Nov 14 to mid-February – source AMBREY ANALYTICS

or now, the jury is still

“F

“It may be some time before

out on whether we will

legal disputes materialise given that

vary from contract to contract,

see an increase in legal

many vessels which have detoured

and can have markedly different

disputes stemming from the crisis,”

around the Cape of Good Hope are

implications depending on the

wrote Nick Austin, transportation

yet to reach their destination. And if

wording. Charterers generally

lawyer at global law firm Reed

the situation improves, we may start

seek counsel on whether they

Smith [in late January].

to see disagreements about whether

can require a ship to transit the

it is safe enough to pass through the

Red Sea despite the risk, and

shipowners and charterers working

Red Sea without owners being able

shipowners want to know if they

together to find solutions and

to refuse. However, it’s still early days

can refuse without legal liability.

avoid disputes in what everyone

in terms of formal disputes being

“While there can be legal

accepts is a challenging situation.

referred to maritime arbitration or

consequences of changing a

We have seen this with some oil

Court action.

vessel’s route, the prevailing focus

“We are mostly seeing

majors publicly choosing not to

“Although the rising price of

for many owners and charterers is

order tankers through the Red Sea

insurance means the cost differential

directed towards getting cargo to

to avoid putting shipowners in a

between transiting the Red Sea and

its destination as quickly and cost-

difficult position, both legally and in

sailing around the Cape of Good

effectively as possible.

terms of the risk of an attack.

Hope is narrowing, delays to cargo

“This is a difficult time for all

arriving at its destination can present

involved – owners and charterers

are being taken. Charter terms are

legal problems for owners and

are aware of the complex balance

being scrutinised to determine if

charterers under cargo documents.”

between the legal considerations

a vessel can take a different route

“We are currently fielding a

and the practicalities of ensuring

“In some cases, more legal stances

12

around “war risks” clauses. These

without creating a legal liability for the

large number of queries from

swift and efficient cargo transport.

shipowner. This needs to be looked

our shipping clients seeking

Thus far, the industry is working

at on a vessel-by-vessel basis, but co-

clarification on the legal position

to collaboratively seek solutions

operation is key to avoiding disputes

under charter arrangements. The

amidst universally acknowledged

and we are also seeing plenty of that.

primary area of concern revolves

challenging circumstances.” l

Ship Management International

Issue 107 January/February 2024

107 January/February 2024

Ship Management International

13

Notebook

Crew recruitment becoming harder, Danica crew manager survey reveals

R

ecruitment of seafarers is getting more challenging according to a survey of crew managers conducted by Danica Crewing

Specialists. Nearly half of those responding reported they are finding it more difficult to recruit crew of the calibre they need for their ships, while more than 70% of crew managers said their job has become more difficult within the past two years.

Meanwhile the survey indicates crew salary costs are rising, which confirms the findings of Danica’s recent Seafarers’ Survey which revealed that pay is up across all ranks. Some 74% of the shipping companies who responded to Danica’s Crew Managers’ Survey said they

managers evaluate the manning situation and to compare

had increased wages for senior officers over the past year,

the findings with those of our annual Seafarers’ Survey. The

with more than 60% reporting increased wages for junior

results are interesting and demonstrate how shortages

officers and senior ratings, while almost 60% had increased

of competent sea staff, particularly in certain ranks, are

wages for ratings. Only 6% of respondents had not

impacting crewing strategies for shipping firms. It also

adjusted wages over 2023.

seems the majority of ship owners and managers are

Crew managers reported that wages for senior officers are up between 10 to 30%, with junior officer roles attracting salary increases of between 6-15%. Among

recruit and retain top talent.”

Danica’s survey was conducted among a large group of

ratings, salaries for senior ranks have risen 11 to 15% while

crew managers and other personnel involved in crewing.

for junior ratings the increases are between 6-10%.

It was conducted as a useful comparison to the company’s

Looking at retention, just over a third of survey

annual Seafarers’ Survey which received feedback from

respondents felt their seafarers have become more willing

more than 6,000 crew members. Responses to the Crew

to change employer, while just under a third said they

Managers’ Survey were received equally from ship owning

believed they were less willing to move, and 1/3rd reported

and ship management companies. The majority of

the situation as the same. More than 80% of crew managers

respondents worked in a company where all the functions

saw salary as the main reason for seafarers switching jobs,

related to the management of the fleet were conducted in-

chiming with the almost 80% of crew members who said

house. While most respondents were employed within the

the same in Danica’s 2023 Seafarer Survey.

crewing department, the survey also attracted responses

The crewing survey also revealed that more than a third of shipping companies don’t have a written strategy in

from more than 6% of CEOs and Managing Directors.

Geographically the respondents came from a wide

place for recruiting and retaining seafarers. Demonstrating

spread of countries but particularly from Greece, Cyprus,

the need for a diversified crewing strategy, more than half

Denmark, and Singapore. Most respondents worked in

of the companies responding said they plan to take on

companies with a crew pool of 200-500 seafarers and

more nationalities over 2024.

a fleet of 10 to 25 vessels. All key seafarer nationalities

Henrik Jensen, Danica Crewing Specialists CEO, said: “We thought it would be interesting to see how crew

14

recognising that salary levels need to increase in order to

Ship Management International

Issue 107 January/February 2024

were represented in the crew pools managed by the respondents. l

Notebook

Artificial Intelligence as Human Resource

AI can be applied to recruitment and training to overcome shipping’s worsening seafarer shortage, says Yogesh Pasrija, Acting Global Head of Crewing at Wallem Group

F

or Wallem Group, decent

discrimination and anti-harassment

seafarer pay and working

policies, proactive training to

conditions are a prerequisite

overcome unconscious bias, and

for attracting next generation

enforced supplier diversity. It has also

talent to the maritime sector. It also

insisted on engagement between

means that other matters within

senior managers and front-line

career development and mentorship

its control - such as ‘nurturing the

staff, to encourage the open and

programs that work at the pace of the

talent pipeline’, investing in seafarer

collaborative culture on which

individual, also continuously analysing

wellbeing, competence and career

enhancing ship safety relies and

their needs.

development, and maintaining

cultivate employee participation in

positive working experiences –

decision making.

become business imperatives rather

current and future work requirements

of reporting which sometimes

to predict skill gaps in the maritime

portrays AI and machine learning

workforce, rather than simply

into tangible actions demands an

as short cuts to replacing seafarers,

identifying existing ones. Training and

understanding that ‘Generation Z’

Wallem believes that – used

development programs can cover

seeks meaningful, purpose-driven

responsibly – these tools can enhance

emerging maritime skills issues.

employment, and has different values

safety management, improve crew

From the maritime employers’

than its predecessors on work-life

health and welfare, and identify,

perspective, AI could also be used

balance, opportunities for growth

nurture and build maritime talent.

to analyse anonymised data on

than aspirations.

Converting these agreed aims

While shipping automation could

and diversity. Today’s seafarer, for

employee satisfaction, engagement

example, discriminates between

reduce human error and increase

and motivation, so that employers

employers based on connectivity,

safety, Wallem firmly believes that

can respond with initiatives to

and will also prefer to work for

shipping’s ‘Future is Human’. AI

encourage the more positive and

organisations whose values it shares.

and automation are likely to assist

supportive work environment.

Over many years, Wallem has

seafarers, but not replace them.

The HR professional could even

developed a mature approach

Nevertheless, AI’s ability to analyse

benchmark the effectiveness of his or

to training, based on investing in

large datasets of resumes, social

her own HR initiatives.

local centres, collaborating with

media profiles, and other information

There is, of course, an irony in

technology providers, crafting

– for example – may be invaluable

identifying maritime HR professional

courses at the microlearning level,

for identifying and reaching out to

as a possible key beneficiary of AI.

offering simulation-based and on-

individuals with the skills, experience,

For Wallem, however, tools which

the-job support, mentorship and

and potential to be successful in

deliver agility in responding to the

coaching. In doing so, it has not only

shipping careers.

changing profile of the seafaring

upheld the highest ESG standards

16

What is more, against a backdrop

At the ‘meta’ level, meanwhile, AI and ML can interpret datasets on

Again, AI and ML can be used

workforce and promise to identify

on occupational health and safety

to personalise the onboarding

candidates best equipped to stay

but gone on to develop flexible work

process for new hires by providing

the course can only be beneficial for

hours and telecommuting, anti-

them with personalized training,

shipping as a whole. l

Ship Management International

Issue 107 January/February 2024

Notebook

InterManager elects new Vice President

I

nterManager members pledged their commitment to

are aspirational and not a pass/

raising standards during the global shipmanagement

fail situation. They demonstrate

association’s Annual General Meeting held at the IMO

a commitment to improvement.

headquarters in London, during which Sebastian von

InterManager’s intention is to

Hardenberg, Chief Financial Officer (CFO) of Bernhard

lead the way on improving

Schulte Shipmanagement (BSM), was unanimously

standards throughout our sector

elected to serve as Vice President.

as we respond to the changing

Member companies are currently undergoing the initial self-assessment phase in relation to InterManager’s newly

discern between those managers who abide by the General

introduced General Principles of Conduct and Action which

Principles and those who (for whatever reason) do not.”

focus on three key areas: Care and Respect for People;

ship owners and managers to consider how to future-proof

Safety Culture.

quality shipmanagement (see later article). It was pointed out

Issue 107 January/February 2024

that confronting the challenges posed by decarbonisation

their self-assessments by April. Periodic and random

goals, especially for small ship owners, was “not an easy

independent and confidential audit will then follow in the

task” and this could open the door for greater take-up of

future. They will also guide fellow members on the process

third party shipmanagement, currently standing at around

which the association has stressed is straightforward and in

20% of the global fleet.

line with ESG values.

Ship Management International

The AGM was preceded by a dynamic debate between

Continuous Development and Optimisation; and Effective Leading shipmanagement firms are aiming to complete

18

shipping landscape. We expect that shipping landscape to

Sebastian von Hardenberg agreed, commented that ship

InterManager President Mark O’Neil, CEO of the

managers “have a crucial role to play. The complexities that

Columbia Group, commented: “The General Principles

we see in shipping are typically good for ship managers.” l

Notebook

Notebook

EU ETS - bare confusion

I

n the last edition of SMI, ITIC advised that managers

on the EU Commission website. Here, they clearly state

should only become the responsible entity under

they do not allow a bareboat charterer to become the

the system if they were entirely comfortable with the

responsible entity if they are not also the ISM Company. In

liabilities and risks arising from the European Union

one example, an ITIC ship manager member advised that an

Emissions Trading System (EU ETS). This is not just because

oil major who was the bareboat charterer (not the registered

the liabilities are high for non-compliance – such as fines

owner) demanded that their ISM manager arrange to

and penalties – but because the legal position is still

transfer the Monitoring, Reporting and Verification (MRV)

uncertain at the time of writing.

reporting and the responsible entity function to them. This

The contracted/responsible entity is responsible for

is understandable as a large bareboat charterer may want

reporting emissions and surrendering EU Allowances to

to keep the compliance of the EU ETS in-house for their

the Authorising Authority. The responsible entity under the

whole fleet. According to the EU Commission, this is simply

EU ETS is considered to be the shipping company, which

not possible, and if they tried to mandate the bareboat

is defined as “the shipowner or any other organisation or

charterer, it may not be legal, and it will simply snap back to

person, such as the manager or the bareboat charterer, that

the registered owner.

has assumed the responsibility for the operation of the ship

However, some Authorising Authorities are rumoured to be taking a different position. Some may accept the

from the shipowner…”.

The EU Commission’s advice differs from what has been

bareboat charterer as the responsible entity even if they

drafted in the law. The Commission has clearly stated that

have transferred ISM compliance to a third-party manager.

in the context of EU ETS, the responsible entity can be

Consequently, if you, as a manager, are asked by a bareboat

either the registered owner or the company that has taken

charterer whether they can become the responsible entity,

on the responsibility for International Safety Management

you suggest they speak directly to the Authorising Authority

(ISM) compliance. The registered owner can transfer the

to find out if it is possible.

responsibility for compliance by a written mandate, which

ITIC recommends that ship managers should not

must be provided to the Authorising Authority. Without

give direct advice to an owner or a bareboat charterer

such a mandate, the registered owner will, by default, be the

on how to comply with the EU ETS; it is complex, and

responsible entity.

the legal position remains uncertain. Owners and

It is highly recommended that you read the “FAQ – Maritime transport in EU Emissions Trading System” page

20

By Robert Hodge, General Manager at ITIC

Ship Management International

Issue 107 January/February 2024

charterers should liaise directly with their own lawyers and EU ETS experts. l

106 November/December 107Issue January/February July/August 2024 2023

Ship Management International

21

InterManager Outlook Attacks on merchant ships must end now Seafarer safety, decarbonisation, and raising standards are high on InterManager’s action list as Secretary General Capt. Kuba Szymanski explains

A

s we write this column our first priority is the safety and well-being of seafarers, particularly in light of the dangers being faced in the Red Sea area. Seafarers

conducting their everyday work in order to keep world trade flowing should never be pawns in geopolitical conflicts. The threats and attacks on merchant ships must end now.

We are aware through our member companies, who between

them employ more than 250,000 crew, that some seafarers are suffering from heightened anxiety, and we will do all we can to alleviate that. As our President Mark O’Neil points out, the key to

This year the shipping industry has welcomed

this is communication. We must ensure that we prioritise seafarer

Arsenio Dominguez as Secretary-General of the IMO and

safety over operational demands and ensure our crew members

InterManager was among NGOs who met with him recently.

feel safe, supporting those who are anxious through our own

This is a crucial time for shipping as our global industry

support systems or those of specialist providers. Look after them

begins its fast-paced journey towards meeting ambitious

properly and our amazing seafarers will be incredibly resilient to

decarbonisation goals. InterManager will attend the IMO

the pressures and risks around them.

Marine Environment and Protection Committee (MEPC81)

Another focus for InterManager at this time is our General

meeting in March where advanced discussions will take place

Principles of Conduct and Action which were discussed at length

of ‘mid-term measures’ to support emissions reduction in the

during our AGM in January, held at the London offices of the IMO.

medium term. The meeting will consider an interim report

We are privileged to have begun to receive industry endorsements of our ground-breaking General Principles

of the impact assessment that these measures will have on countries across the globe.

from leading maritime companies who share our belief

Decarbonisation is at the forefront of InterManager’s

that the Principles will make a significant impact on raising

current work. We continue our effective discussions with the

standards across the shipmanagement sector. As our President

EU to ensure its Emissions Trading System (EU ETS) can be

commented, we believe fervently in raising the standard of

implemented at a practical level to achieve its objectives. As our

ship management and operation in-house and out-house.

ship owners prepare for EU ETS registration, starting in March,

Transparent, sustainable, safe, optimised, shipmanagement

we have brought to the EU’s attention the urgent need to clarify

operated by motivated, well-trained, fairly compensated, healthy

the role of the “bareboat charterer”.

and happy crew is not an unreasonable expectation.

We are pleased that a number of member companies

We are also engaging in communication on the FuelEU scheme, coming into effect on 1st January 2025 with first

are already in the process of completing their first self-

actionable ‘to-dos’ by 31 August 2024. We have sought

assessments, as set out by the General Principles. During our

confirmation that the responsible party for FuelEU compliance

AGM there were many questions about how this confidential

will be the ship owner by default, unless delegated to bareboat

process is achieved and I know those companies further along

charterer or ship manager through a written declaration – in

the path will help those following them by explaining the

essence the same party registering for MRV and EU ETS.

procedures and offering guidance where needed. This is an

We would be delighted to hear from members or potential

exciting time for InterManager and we will keep SMI readers

members on any of these issues. Get in touch via email: kuba.

updated on our progress.

szymanski@intermanager.org l

22

Ship Management International

Issue 107 January/February 2024

First Person Arsenio Dominguez, Secretary-General, IMO

By Felicity Landon

O

ne month into his new role, Arsenio Dominguez, new SecretaryGeneral of the International Maritime Organization, told journalists at a press briefing that a priority was focusing on the

image of the organisation.

“We normally tend to be on the news when something wrong happens, an incident or accident. We tend to be compared with other industries, but there is not enough highlighting all the good things that happen,” he said. The IMO is busy working with 175 Member States looking into all of their concerns, he pointed out.

“We shouldn’t just be out there when there is an incident or accident.”

Noting that shipping was more in the news during Covid-19, he pulled out a favourite quote: “No seafarers, no shipping, no shopping”.

At the age of 53, Dominguez is the youngest ever SecretaryGeneral of the IMO – a fact that when mentioned by a journalist appeared to take him by surprise. Asked whether the Red Sea/Suez Canal crisis, Black Sea conflict and Panama Canal drought added up to an unprecedented situation for shipping, he said: “I have been in the job for a month but have been part of this amazing organisation and sector for over 25 years. We have had challenges in the past.

“But it is unprecedented. However, this industry is resilient and continues to demonstrate how it is ready to serve the world and demonstrate that it can reach agreements and bring parties together – and for me, it is a privilege to lead this team.”

Setting out the IMO’s plans and focus areas for the next four years, Dominguez discussed safety, decarbonisation and the environment, supporting Small Island Developing States (SIDS) and Least Developed Countries (LDCs), improving public awareness and image, and enhancing relations with people and stakeholders.

Unsurprisingly, the Houthi attacks on shipping in the Red Sea

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First Person

dominated the presentation and the Q&A session, and here Dominguez repeatedly brought the conversation back to the perspective of seafarers caught up in the crisis.

Condemning the attacks on international shipping, he said: “The seafarers are innocent victims being affected by this situation. They are doing their daily job in order for all the goods to be transported around the world for the benefit of the whole population – and they should not be targeted.”

He emphasised the need for freedom of navigation and called for the deescalation of tensions; and he pointed out that the focus of news coverage is almost always on trade and the economy. “My first and main message is the seafarers.

We need to think about them and what they are going through.”

The IMO has seen an increase

Egypt is suffering the economic impact of

paves the way for countries to start changing

in the utilisation of guidance in the

the loss of Suez Canal volumes, he said.

their national strategies for new fuels.”

The IMO will continue to be ‘fuel

Djibouti Code of Conduct, issued when

Dominguez also addressed the

combating high levels of piracy ten years

expanding ‘shadow fleet’ of vessels

agnostic’, he said, “but now we have a

ago; the guidelines are being reassessed

operating around the globe – outside

path to decarbonisation, this forces the

because of new threats such as the use of

IMO regulations, evading safety

industry to create fuel strategies”.

drones, he said.

conventions and operating without

The IMO is also addressing safety

This prompted a question about

proper insurance cover, while breaking

standards and the qualifications needed

piracy increasing once again off Somalia.

international sanctions. He said Member

by seafarers in order to handle new fuels,

Dominguez slightly dodged this, saying:

States have the opportunity to help

he added, and it is working with other

“Piracy always has been and continues

tackle this issue during Port State Control

international bodies such as the ILO, ITF

to be on the agenda of the organisation.

inspections of vessel, when they have to

and ICS to analyse training and safety

The latest information on the global level

verify compliance with IMO instruments.

regulations and study how to attract

is that piracy continues to be down when

Discussing the GHG Strategy,

seafarers into shipping. “The current

Dominguez said more needs to be made

situation doesn’t paint the best picture,”

of the hard work the IMO is doing when it

he admitted, “and we have an uphill

and whether there is any escalation,

comes to the environment. “Our industry

battle to attract seafarers, so we have to

he said, while considering whether the

is responsible for 3% of global emissions

enhance the credentials of the industry.”

current guidance needs updating.

– less than other sectors, but we have

compared with previous years.”

The IMO continues to monitor piracy

taken it very seriously.”

Meanwhile, the IMO is ‘part of the solution’ in the Red Sea. “We continue

As well as setting the new GHG goals,

Shipping is resilient and has been for many years, he said. “We saw it through the financial crisis and the Covid pandemic and we see it

to engage with the UN Security Council

the IMO is actively involved in future fuel

now. It is how we face these challenges. It is

in providing any support. We have the

planning, he said. This includes inviting

also important that we continue to regulate

possibility to bring parties together.”

participants from the energy sector to

shipping for safety and security.”

The IMO can provide practical

technical cooperation discussions, and

As for himself: “I am my own person,

solutions such as exchanging information

even reminding them that shipping will be

but I know what has happened [at the

to analyse risks, assessing additional

needed to transport the cargoes that will be

IMO] in the past and will continue all

security, and speaking to the Member

an essential part of the energy transition.

the good work my predecessors have

“We had a good outcome from COP28

States in the region, which are mostly affected in relation to trade. For example,

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to transition away from fossil fuels. That also

Issue 107 January/February 2024

put in place, while also looking for improvements in the organisation.” l

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How I Work

How I Work

Pacific region, Asia and Europe - whose

SMI talks to industry leaders and asks What motivates them and how they deal with the rigours of the shipping industry

objectives are aligned with those of IFAN.

“digitalisation generally, the use of

“Finally, IFAN possesses a solid

AIS and satellite systems to provide

lighthouses, AIS and Racons and sending

asset represented by its established

updated information to the mariners (i.e.

signals from its 4 DPGS transmitters, it

yet growing network in the maritime

ECDIS on board vessels and VTS in port

is also the Acting Sub-Area Coordinator

industry and, more and more, in

control towers) and managing vessel

for NAVAREA IX, coordinating the

international organisations. This

traffic, implementing Risk Assessment

NAVTEX service for navigational and

allows the Charity to advocate on the

to improve traffic in waterways &

weather warning for seafarers and also

international organisations. Moreover,

importance of navigational services

channels, monitoring the status of AtoNs

issuing Notices to Mariners, providing

promoting the

IFAN’s governing Board includes

and to take into consideration further

(buoys, lighthouses).” Plus she identifies

vital updates on navigation changes or

use of modern

representatives from major shipping, oil

funding opportunities.”

e-navigation and autonomous shipping

notification of works or events. Though

navigation

& gas companies as well as experienced

as notable emerging trends.

MENAS undertakes contract work for third

techniques and

independents who have sound financial

experience in the maritime industry,

procedures and

and auditing backgrounds.

first with a container shipping line then

element keeps pace with those

dues to shipowners, all services provided

by MENAS are paid for by these dues.”

Catherine herself has almost 40 years’

But it’s important that the human

parties, as a way of helping to reduce nav

15 years working in P&I insurance and

technological advances, she feels,

maritime skills

knowledge and long operating

20 years working with global insurers

saying: “I think that one of the biggest

However, “in the main, the

through seafarer

experience in the Middle Eastern Gulf,

handling complex claims in the Ports

challenges across all of the maritime

increase has been accepted by the

education and

which today is carried by MENAS, a

and Terminals industry. She says she was

sector is attracting and retaining talent.”

ship operators,” she affirms, “as they

training; and

leading innovator in the development,

motivated to join IFAN last August, taking

For this reason IFAN is an active

understand and appreciate the vital work

supporting

monitoring, fabrication, supply and

over as CEO in October, “because of its

supporter of the IALA World-Wide

that MENAS is doing to keep them safe.”

and improving

maintenance of AtoN. IFAN’s operational

reputation for excellence and the belief

Academy. IFAN/MENAS also successfully

all aspects of

branch employs top qualified staff, and

that I could bring so much of what I had

delivered the first Level 3 Aids to

professional duties Catherine says she is

the marine

it contributes to IALA (International

learnt and experienced in my career to

Navigation course which was tailored by

“a big walker, which perhaps is inevitable

environment.

Association of Marine Aids to Navigation

the role. I was also very interested in the

IFAN/MENAS to familiarise mariners with

when you own a Cocker Spaniel! I

“IFAN is the

and Lighthouse Authorities) committees

opportunity to seek and work with global

the main Marine Safety of Navigation

attend the theatre regularly and you can

only independent

to set international standards in the field

partners and authorities to help them with

services and systems - the first of its

normally find me with my nose buried in

lighthouse authority

of navigation services.

projects to provide aids to navigation and

kind in the Middle East region -and are

a murder mystery - I’m a big fan of the

help further IFAN’s objectives.”

planning to deliver L2 Aids to Navigation

golden age of detective stories.”

in the world,

“The second asset is a detailed

“IFAN also has a long-term

providing assistance

experience of funding successful

in the field of

initiatives worldwide – including in the

maritime safety and

CEO, IFAN

“Not only does MENAS provide Aids to Navigation, consisting of 54 buoys/

information;

other essential

Catherine Mulvihill

Aids to Navigation sector, including

When not attending to her

Her other “great joy” is as a Liveryman

THE IFAN CEO notes many

course for AtoN technicians/Engineers

recent technological advances in the

responsible for AtoN maintenance by

and Court assistant of the Worshipful

Q2/Q3 later this year.

Company of Shipwrights – one of the livery companies based in the City of London

protection of the

MENAS recently had to increase

marine environment

its navigational aid fees (or ‘light dues’)

to which numerous senior shipping

for the past 100

in the Middle East, which was met with

industry folk belong. There she chairs the

years,” says

some opposition. But Catherine defends

Education and Charity committee as well

Catherine.

T

the decision, saying: “We have worked

as The King’s Silver Medal Competition

he International Foundation for

Its origins date as far back as 1911

very hard keeping the tariff at the same

where final year apprentices from

Aids to Navigation (IFAN) is a

when it was first set up as the authority

rate since 2006 – indeed, MENAS set its

shipyards, boatyards and the marine

registered UK-based not for profit

for aids to navigation in the Middle East

tariff to cover operating costs without

supply chain across the United Kingdom

company that has an operating division

Gulf, and parent company IFAN was

making any profit. However, over the past

take part in the week long Phipps

in the Middle East Gulf – MENAS

formed in 2011 to reflect its extended

two years the cost of providing MENAS

Leadership and Development Programme

(Middle East Navigation Aids Service).

global safety at sea and Aids to

Nav Aids has risen sharply, compounded

on Kielder Water in Northumberland. She

Catherine Mulvihill is the new Chief

Navigation (AtoN) activities.

by the need to replace some major

has recently been elected to the position

equipment such as DGPS transmitters.

of 5th Warden.

Executive Officer, having taken up the

Catherine lists what she sees as

role in late 2023 after a long a varied

the vital assets that help the charitable

career in Maritime.

organisation fulfil its objectives.

“This, unfortunately, means that

The 800-year-old livery company’s

without increasing the tariff charge,

founding aim of safeguarding the quality

the income we receive is not enough

of shipbuilding would seem a perfect fit

safety at sea and protect the marine

employs qualified staff specialised

to sufficiently fund the service, which

with IFAN/MENAS’ mission of promoting

environment. This includes directly and

in the maritime industry, including a

is vital to ensure the safe navigation of

safe navigation - especially in area so vital

indirectly providing and maintaining

major shipping, oil & gas managers and

vessels in the Gulf through the provision

to global trade as the Middle East, as

navigation aids, safety systems and

others with maritime backgrounds in

of Nav Aids.

recent events have shown. l

The aim of IFAN’s work is to promote

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“First of all, the human asset. IFAN

Issue 107 January/February 2024

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Dispatches

Tale of two mergers: Lowering emissions versus raising fleet size

The last year saw a pair of mega-mergers mooted, to create the world’s largest tanker and dry bulk owners respectively. The former - between Euronav and Frontline – eventually fell through, while the latter – between Star Bulk and Eagle Bulk – still is set to go ahead, subject to the necessary approvals. New York-based Barry Parker takes up the story…

I

n 2023, shipping investors saw a pair of notable bulk

In the drybulk segment, the talk at festive end-year

transactions, both involving some of the largest players in

parties on Wall Street was of the transaction whereby

their respective sectors which, if successfully completed,

Star Bulk (NYSE: SBLK), with its diverse fleet, would be

would have created new industry-leading players.

acquiring Handymax specialist Eagle Bulk (NYSE: EGLE) in

On the tanker side, following a lengthy and caustic

a shares-for-shares exchange. Most observers were caught

public battle that had included an abortive ‘firm’ agreement

by surprise although later some pointed to telltale clues

to merge, the two party eventually decided to go their

beforehand where Private Equity investors had been bought

separate ways in late November. The parting deal saw

out, thereby paving the way for the deal.

Euronav (NYSE: EURN) agree to sell 24 VLCCs to Frontline

The tanker transaction had included a provisional April 2022

(NYSE: FRO), in return for which the latter would cede its

merger agreement that later fell apart. The deal was announced

shareholding in Euronav. The companies thereby remained

just as the tanker market was re-aligning - and setting up for an

distinct, seemingly on very different paths.

unprecedented surge - following the start of the Ukraine war.

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Issue 107 January/February 2024

Dispatches

Euronav’s ‘grey to green’ pathway

‘Size Matters’

W

hen announcing its acquisition of alternative fuels

views of the future, based on public comments:

In a report to investors at the time the tanker merger

innovator CMB.TECH – formerly wholly owned by the

Frontline is focused on large, crude tankers while CMB

was first proposed, titled ‘Size Matters’, Evercore ISI

aims to wind down tanker exposure with a plan to

analyst Jon Chappell wrote: “The potential combination

invest in green technology.”

Saverys family – in late December 2023, Euronav issued a

detailed explanation of how the move fitted into its ‘new strategy’:.

would add the ~$2.5 billion of EURN shares to the

After a few months’ standoff, the parties agreed on

“CMB and Euronav believe that the addition of CMB.TECH to

~$1.8 billion from FRO to create a ~$4.3 billion

a vessel sale - with Frontline acquiring 24 VLCCs (worth

Euronav’s business will enable a flywheel strategy – positioning the

supersized tanker behemoth in an industry where most

$2.35 billion) from Euronav, funding the deal though

group to tap into each step of the energy transition towards low-carbon

company market capitalizations are lower than $1

the sale of its approx. 26% stake in the latter (worth $1.1

shipping with a clear vision on value creation for its shareholder,” the

billion. The proposed merger would provide customary

billion) at a tidy gain, complemented by debt provided

company stated. “Euronav’s older tanker tonnage provides excellent

opportunities to realise cost synergies and greater scale

from banks, and insiders.

of combined fleet tonnage.”

opportunities to recycle capital over time into more future-proof,

While it did not create the merged giant originally

President Hamish Norton (who holds advanced

envisioned, Frontline continued to charm investors with

degrees in physics), when queried about SBLK

“The largest division of CMB.TECH is the Marine division. It builds,

general investor base globally,” he added, “the

its “high-quality fleet on the water ensuring immediate

strategies on investor calls, was often quick to

owns, operates and designs a wide range of low and zero-carbon ships

potential combination would create a truly investible

cash flow generation into the winter season.” Its market

point to scientific formulae when asked about

powered by dual-fuel diesel-hydrogen and diesel-ammonia and monofuel

tanker company with a meaningful and liquid market

cap moved up to north of $4 billion, on its own, two

vessels’ fuel consumption. Likewise, Eagle Bulk’s

hydrogen engines: offshore wind support vessels, dry bulk vessels,

cap, which would also effectively become a bellwether

months after the deal was struck.

Gary Vogel stressed his firm’s formulaic active

container vessels, chemical tankers, and others (tugboats and ferries).

market management, successfully arbitraging

“CMB.TECH’s H2 Infra division offers hydrogen and ammonia

Furthermore, “for tanker investors and for the

for not just tanker Equities but Maritime Transportation

Euronav, on the other hand, was viewed with caution by analysts and investors over its apparent post-deal

baskets of spot charters, period charters, and

fuel to its customers, either through its own production or by sourcing

However, analyst Chappell cautioned in the same

strategy of favouring investment in future green projects

Forward Freight Agreements, to out-perform

it from third party producers. … CMB.TECH’s Industry division [has]

report that tanker (and drybulk) ownership would still

(notably hydrogen fuelling) over current asset holdings.

market indices. Normal merger synergies like

advanced technology allowing the conversion of existing diesel

remain widely dispersed, noting that shipping is “an

Famously, family scion Alexander Saverys – later to take

overhead reductions and operational synergies

engines into dual-fuel and monofuel engines, providing flexibility and

industry that will remain fragmented as this merger

over as Euronav CEO in November, 2023 - had asserted

are also in play here.

cost-effectiveness.”

will not offer material consolidation given the litany

several years earlier when touting family-held innovative

After the drybulk deal was announced, analyst

In mid-January, 2024, the management of Euronav hosted an

of smaller private and public competitors.” (For

technology company CMB.TECH that: “We believe that

Ben Nolan of Stifel wondered out loud if the tie-up

online Capital Markets Day presentation, detailing developments

perspective, some of the household shipping names

hydrogen is the new oil.” I

portends a new trend, writing: “With the announced

on the company’s path from pure tanker owner to a to a shipowning

take out of Eagle Bulk by Star Bulk, things in

entity with a green secret sauce, “creating the reference in sustainable shipping” as new CEO Alexander Saverys (pictured above) put it.

as a whole due to its enhanced scale.”

best known to institutional investors involve much larger

In December 2023, Euronav’s ‘new strategy’ was

capitalisations: the ‘market cap’ for Maersk and Hapag-

revealed as along with privately held CMB it acquired

the public shipping markets could be about the

Lloyd each being around US $29 billion and Cosco

CMB.TECH for $1.15 billion in cash – roughly the

change. Much of the motivation for Eagle selling

The plan is for the Saverys family to tender for outstanding shares

some $21 billion as of late 2023).

equivalent of a dozen or so modern VLCCs [see also

is the potential uplift available to shareholders as a

in Euronav, and then fold the company into its already family-contolled

sidebar on p32}.

function of SBLK shares traditionally trading closer

CMB.TECH unit (changing the symbol for its trading stock from ‘EURN’

to net asset value (NAV). In this case, at the time of

to ‘CMBT’).

But the $4 billion+ Norwegian/ Belgian tanker colossus was not meant to be, with Frontline terminating the merger agreement in January 2023 after

Dry match

the transaction, EGLE shares were trading at a 39%

The expanded CMB.TECH - to be 53% owned by CMB- aims to

discount to NAV and the SBLK takeout price brought

offer a “grey to green” pathway for shipping, it was explained, building

that to a 22% discount.”

on the company’s past successes with hydrogen (for smaller vessels)

the Saverys family, through its privately held CMB, had

Meanwhile, In December 2023, Athens-based Star

bought up enough Euronav shares to give it effective

Bulk, with a fleet of 124 vessels (including those not yet

blocking rights to any merger with John Fredriksen-

on the water, circa 13.8m dwt), and Connecticut (USA)-

Echoing the thoughts of Mark Friedman,

and ammonia (for larger ships). This will involve operating some 101

controlled Frontline.

based Eagle Bulk (53 vessels, 3.2m dwt), announced

from the investment banking side of Evercore

existing low- or zero-carbon vessels and an additional 53 presently “in

that they planned to combine. Star Bulk said it would

(who spoke about shipping mergers at a

the pipeline”, spread across multiple ship types, positioning it “at the

be using its shares to acquire the outstanding shares of

November Marine Money conference) Nolan

forefront of hydrogen and ammonia rollout… and of [establishing] the

Eagle Bulk.

pointed out that: “In the case of many of

market for hydrogen and ammonia today for the transportation sector.”

Differing strategies Analyst Omar Nokta, at the helm of investment bank Jefferies’ shipping coverage, said it all regarding

In contrast to the tanker deal - as much about

these companies, they view their businesses as

the two parties’ divergent strategies in a report around

personalities as vessels - the SBLK-EGLE tie-up was very

family enterprises and would be unwilling to

that time: “Frontline & CMB have widely different

much a numbers game. Star Bulk’s ex-investment banker

sell even if it meant an improved valuation for their shareholders. For those companies not

32

attractive and diversified end-markets and contract types.”

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Issue 107 January/February 2024

“We have a plan,” said Alexander Saverys. “The strategy is working, and our people are fully behind it. Now it is about execution – operationally and strategically.”

Meanwhile, Frontline has proceeded with its own fleet modernization

encumbered by perceived family legacy, EGLE

plan, disposing of its five oldest (14-15-year-old) VLCCs to an undisclosed

has drawn a line in the sand and there may not

buyer in Q1 2024. After addition of the 24 Euronav vessels, Frontline will

be any more excuses to not consolidate.” l

have 84 tankers with an average age of just six years. l

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Human Element: Crew Welfare

Crew Welfare

more than 4,100 daily maritime medical encounters, the company’s all-inclusive approach unifying preparedness,

VIKAND launches OneHealth seafarer welfare programme

prevention, detection, response, and management across a range of healthcare concerns, from communicable diseases to chronic illnesses, mental health concerns and more.

UK P&I Club trial Separately, VIKAND has partnered with the UK P&I Club for a year-long trial of OneHealth by VIKAND. The trial, known as the coLab Project, is set to involve up to 100 vessels operated by UK P&I Club members.

Each participating ship will enjoy access to the OneHealth platform, including monthly House Doctor Calls, which takes telehealth to a whole new level. These are

V

IKAND, a global leader in maritime healthcare,

comprehensive monthly video calls between VIKAND and

has launched a proactive 24/7 healthcare program

onboard leadership to review the crew’s state of health and

to help safeguard seafarers and protect the

proactively address any issues.

commercial viability of the shipping industry. With the

“I’m delighted that the UK P&I Club has joined this

International Chamber of Shipping predicting a global

important trial, which will demonstrate how a crew asset

shortfall of 90,000 trained officers by 2026, the industry

management approach can help reduce the number

needs to recognise that to attract new talent and retain

of incidents that lead to claims,” said Ronald Spithout,

the current workforce, it needs to dramatically improve

Managing Director of OneHealth by VIKAND. “It also

Peter Hult

its approach to healthcare for our industry’s seafarers, the

demonstrates a shipowner’s commitment to making

company believes.

seafarers feel valued, at a time when industry analysts

Launched at the US Embassy in London on February

about risk mitigation and looking after the industry’s most

predict a coming labour shortfall.”

7th in front of an audience of senior maritime professionals,

valuable assets – its crews. Their health and well-being

This trial will also set the tone for ESG excellence in

VIKAND introduced its program, as keeping the current

need to be managed and maintained in the same way an

commercial shipping by positioning OneHealth as a valuable

seafarer workforce fit and well is paramount to stem the loss

engineer has to regularly maintain a vessel’s machinery to

tool for mitigating cost and risk. The goal is to show that

of experienced crew. VIKAND recognises that threats to

avoid costly breakdowns.

investing in health and wellbeing can impact a company’s

their health, wellness and safety are often dealt with through

“The same notion applies to crews, where a structured

bottom line no differently than investing in a ship’s engine,

healthcare approach will have a positive impact on a fleet’s

reactive and static solutions.

Therefore, VIKAND will offer the maritime industry with

hull or any other critical piece of infrastructure.

bottom line. A quarter of all maritime insurance claims

As Stuart Edmonston, Loss Prevention Director for the

tools and insights for taking a more proactive approach

are related to crew illnesses and injuries, and per year 20

UK P&I Club, explained: “The coLab Project aims to show

to seafarer well-being. The program aims to resolve the

percent of ships have a medial diversion of some sort. These

that structural, proactive healthcare at sea can reduce the

industry’s most pressing crew challenge. Mitigating risks

incidents cost the industry hundreds of millions of dollars in

frequency, severity and costs of health-related claims. Data

to health can lower the shipping industry’s long-term

direct and indirect costs.

gathered during this trial could also help create bespoke

healthcare costs, improve its commercial viability and

“OneHealth by VIKAND promises to optimise crew

enhance the sustainability of its global labour force.

wellness with anytime, anywhere healthcare support, helping

Sophia Grant, Crew Health Programme Director at

OneHealth packages for UK P&I Club members.

to reduce the risks and costs associated with seafarer health

the UK P&I Club concluded: “Improving the physical and

program that combines cutting-edge technology with the

issues. Proactive healthcare support can reduce serious

mental health of crew members is not only the right thing

latest healthcare advancements. OneHealth aims to improve

onboard medical conditions by up to 75% along with all the

to do, as they are the backbone of shipping operations, it

seafarer health and wellness whilst reducing both the risks

associated costs like emergency medical evacuations.”

clearly makes good commercial sense through reducing

The solution, OneHealth by VIKAND, is an innovative

VIKAND is a leading expert in global medical services

and costs for operators.

Ronald Spithout

costs, improving productivity and increasing retention.

and risk mitigation solutions for the maritime industry,

Using digital solutions is a proven route for improving

for crews that can reduce mental and physical health

operating a global network of 1,500 maritime medical

access to vital healthcare services in many other sectors

issues, improve seafarer morale and achieve higher labour

professionals, established across 44 countries, supported by

and we look forward to reviewing the impact that the One

retention,” says Peter Hult, CEO of VIKAND. “It is all

4 main locations. its caring and committed teams manage

Health trial has on our members’ crews.” l

“We are developing proactive healthcare solutions

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Maritime Security Tackling Houthi threat using AI technology

By Dor Raviv, Co-founder and CTO, Orca AI

H

outhi rebel drone attacks on vessels traversing the

to the ship’s schedule and damage to the vessel itself are

Red Sea and Suez Canal route, accounting for 10%

only part of the problem. The impact on the crew navigating

of global trade, have exposed the shortcomings of

the vessel, who find themselves in the middle of an attack, is of much greater concern. Drones can strike a vessel without

current ship alert systems.

The unpredictability and increased frequency of these

warning at any given moment from any direction, which can

attacks have created a challenging security environment for

trigger fear, stress and panic among the crew and allow them

ships passing the area via the Bab el Mandeb strait, posing a

little or no time to safeguard themselves. Conversely, being

substantial risk to seafarers and maritime trade by endangering

able to monitor incoming drones would allow early warning to

the safety of the crew and cargo.

provide precious time for crew to find shelter, attempt an evasive

Initially focused on Israel-related ships in solidarity

maneuver, or report an imminent attack.

with Hamas, the Houthi attacks have now escalated into

Fortunately, there have so far been no seafarer fatalities

a broader threat targeting any vessel in the region, with

as a consequence of these attacks, but the crisis is having a

a US-led multinational naval task force, named Operation

significant impact on maritime trade with companies rerouting

Prosperity Guardian, mobilised to counter the threat. In

their vessels on a much longer route around the Cape of Good

the first two months after attacks started on 19 November

Hope - negatively affecting fuel costs and emissions.

last year, as many as 27 vessels - mainly container ships and gas carriers - making the precarious passage had

FLYING UNDER THE RADAR

come under fire with drones and ballistic missiles from

Traditional detection systems such as ship radar are limited

Houthi rebels in Yemen, according to figures from US

in their ability to protect personnel, cargo and assets effectively.

Central Command.

In incidents faced by shipping companies over recent months,

These new threats have an impact on several fronts: delays

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Issue 107 January/February 2024

existing ship technology was unable to track the trajectory of

Maritime Security

these small and lightweight drones to give crews sufficient time

specific types of drones or unmanned aerial vehicles (UAVs)

to react and seek safety.

that pose a threat, helping security personnel assess the level of risk.

Unlike missiles, the compact size of Houthi drones, with a wingspan of approximately 4.5 metres and a length of no more than 2.5 metres - similar to a sailboard - poses a significant

•

Autonomous response:

obstacle for marine radar systems. Considering the height

o

factors, marine radar is not designed to detect such small

systems can trigger automated responses to neutralize the

objects, rendering it ineffective in identifying these drones.

threat or deter it from approaching the ship. o

Moreover, the speed of these drones, moving at 200-250

Once a potential threat is detected and confirmed, AI

Possible responses include activating counter-drone

km/h, exceeds the capabilities of marine radar, which typically

measures, such as jamming communications or deploying

operates with an average rotation cycle of 2.5 seconds. This

physical countermeasures like nets, lasers, or even

limitation makes it challenging to track high-speed targets

interceptor drones.

efficiently. The lightweight construction of the drones using materials like carbon fiber and aluminium further compounds

•

Integration with existing security systems:

the difficulty, as their low altitudes escape the detection

o

capabilities of marine radar systems, and make them difficult to

with existing ship security systems, such as surveillance

AI-based target detection can be integrated

jam using standard anti-missile technology.

cameras, access control and alarm systems, to provide a comprehensive security network.

Combined with potential radar clutter, this makes it practically impossible to properly track this kind of target and

o

understand its motion profile based on generated parameters

communication among various security measures and

This integration enables real-time coordination and

such as distance, CPA and TCPA. Additionally, the inherent

personnel.

inability of radar to classify any target introduces the risk of confusion, making it challenging to differentiate between actual drones and unrelated elements such as sea clutter or clouds.

•

Continuous learning and adaptation: o

AI systems can continuously learn from new data and

AI capabilities to counter threat

adapt to evolving threats and tactics used by malicious actors.

AI-based target detection can play a crucial role in

o

mitigating drone attacks on ships by enhancing their ability to

This adaptability ensures that the ship’s defense

mechanisms remain effective against emerging drone threats.

detect and respond to potential threats. Here’s how AI-based target detection can help address this security challenge:

The AI-powered SeaPod platform, developed by Orca AI, is currently the only maritime tool available that can

•

Early detection:

address this threat. The reliable technology excels in the early

o

detection of small targets, notably even airborne targets,

AI-powered systems can continuously monitor

the ship’s surroundings, including the airspace and the

providing timely alerts to crews for actions such as taking

surrounding waters, using a combination of sensors such as

cover or recording for evidence.

cameras, radar, and lidar. o

These systems can identify and track incoming drones

A notable feature is the platform’s capability to deliver at least a one-minute specific audio warning to the crew before

or potential threats, even in low-light or adverse weather

a potential attack, allowing them to undertake the necessary

conditions, with a high degree of accuracy and speed.

precautions to ensure safety. The platform also provides live video streaming for onshore monitoring and automatically

•

Anomaly detection:

adjusts itself to a specialized mode in geo-fenced regions like

o

the Red Sea, enhancing its sensitivity dramatically.

AI algorithms can establish a baseline of normal

activity around the ship and identify any anomalies or

•

To conclude, the new reality also requires us to consider a

deviations from this baseline.

holistic new security approach and broader adoption of new

o

If a drone approaches the ship in an unusual or

tools and security measures. It’s important to note that while

unexpected manner, the AI system can alert the ship’s crew

AI-based target detection can significantly enhance a ship’s

or security personnel to investigate further.

security against drone attacks, it should be part of a broader

Classification and identification:

security strategy that includes legal and regulatory compliance,

o

physical security measures, and well-trained security personnel.

AI can classify detected objects as potential threats or

non-threats by analyzing their size, speed, flight patterns and

Additionally, the use of countermeasures to neutralize threats

other characteristics.

should comply with local laws and international regulations to

o

avoid legal repercussions. l

By using machine learning models, AI can also identify

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39

Ship Registries Registries have to adapt to constant change Award-winning journalist Felicity Landon provides this exclusive update (as of mid-February) for SMI on flags’ response to the Red Sea crisis and other major issues affecting global shipping.

“S

hipping: you can go to bed one night thinking

The Bahamas has been outspoken about the situation

about one issue and in the morning it all

in the Red Sea, especially as the car carrier Galaxy Leader,

changes.” This comment from Capt. Dwain

seized by the Houthis in 2023 and with its crew still held

Hutchinson, Managing Director and CEO of The Bahamas Maritime Authority (BMA), rather neatly sums up the challenges the industry continues to face.

The global financial crisis; the Covid-19 pandemic; Russia’s invasion of Ukraine with associated dangers in the

hostage, flies The Bahamas flag.

“Our hearts and prayers are still with the crew of the ship. We have been working at a highest level, but including at the IMO meetings, to urge their release” he says. “Our approach is from two perspectives.

Black Sea; and now the Houthi attacks in the Red Sea, with

“Firstly the human element, we have to start with the

all the associated dangers for seafarers and their ships, and

safety, wellbeing and security of the seafarers, the people

fallout in operational and financial terms.

who are just doing their job and find themselves being

How do ship registers respond to such crises and what can or should they be doing?

attacked and held hostages. We continue to call for their immediate release and also that of the ship. Second, it’s back to the broader principle of safe navigation for ships operating worldwide and in this particularly case, in that region. We are still advocating all in that region to respect Capt. Dwain Hutchinson

107 January/February 2024

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Ship Registries

Ship Registries

the rights of innocent passage. The region is critical for

security threat to the vessel. That way they can reduce

administration, as well as industry guidance, to the

sustaining the global economy.

the risk of persons tracking them.”

attention of its members as soon as it becomes

“All countries, and The Bahamas as a Small Island

Ships are still subject to Long-Range Identification

Developing State (SIDS) is no exception, are reliant on

and Tracking (LRIT) requirements “but that is something

shipping and whenever there is a major incident that affects

we are reviewing”, he says. “Information from LRIT

Shipping has certainly been resilient and quick to

ship voyages in any region (such as the current situation and

is only meant to be accessible to governments, so

respond to recent challenges such as the pandemic,

the case of the Ever Given), it has a major knock-on impact

by rights that is not an open circuit – but if there

the move to digitalisation, environmental regulations

for the global economy, logistics and supply chain.”

is any evidence that it is being accessed by non-

This is an international issue, he emphasises; all IMO

government bodies then we have to look at our LRIT

Member States should endorse the principle of the right of

guidance taking into consideration the convention

free navigation, respect maritime security, and recognise

requirements.”

Meanwhile, the BMA emphasises that any vessel

available. LSC also provides guidance from military Alfonso Castillero

Liberia

agencies in the region to its members.”

and decarbonisation as well as geopolitical tensions, but in all cases government support is necessary, Castillero insists.

Shipowners rely on governments, particularly

“With the Covid pandemic, governments needed

their flag administration, to provide guidance and

to assist with declaring seafarers as key workers so that

As well as the Galaxy Leader, a Bahamas-

identifying potential risks should record it and report

recommendations, especially as it relates to geopolitical

they could cross borders and be allowed off vessels

flagged tanker recently came under fire in the Red

it. “We have the communication and liaison with all the

threats, says Alfonso Castillero, CEO of LISCR (Liberian

for shore time. For decarbonisation, government

Sea. “They fired into the superstructure, which not

entities in that region. If we do have a contact that a

International Ship & Corporate Registry). “For shipping,

investment and prioritisation is needed to ensure

only compromised the safety of the crew on board

ship is at risk, we would reach out to various forces in

the flag is the best available resource to assist with

fuels are available and sustainable. For canal transits,

but because it was a tanker could have caused an

that region to see if they can provide support. Overall,

dialogues with other governments in order to assist

governments need to take action to ensure they remain

environmental disaster.”

we are continuing to monitor the situation in the Red

vessels in distress.”

safe and operational, both from an environmental

the value that seafarers play.

Collective action is required, Capt. Hutchinson says, pointing out that the Galaxy Leader is chartered by a

Sea and we will continue to update our guidelines as the situation progresses.”

As of early February, at least eight Liberian-flagged

perspective (Panama) and a geopolitical situation (Suez).

ships had reported incidents while transiting the

In the case of the EU Emissions Trading System (ETS),

southern Red Sea and Gulf of Aden, he adds.

governments need to implement and provide shipping

Japanese company with a Greek Manager, flagged with

Shipping always has to be prepared to react to

The Bahamas, its crew are of five nationalities and its

global incidents and geopolitical risks, Capt. Hutchinson

cargo was destined for a number of countries.

concludes. “The industry always has to take into

bulletins relating to the situation. “Additionally,

“We don’t want to only pay attention to ships of

consideration a number of factors to ensure we can

the Liberian Shipowners Council (LSC) has been

Sea and Gulf of Aden, voyages are well planned in

one type/country – there is a potential implication for

still keep our ships operating and our crew safe. Some

bringing the security advisories/bulletins from the

advance, with proper timing of the transit, proper

every ship type and all ships should be safeguarded.

incidents may be difficult to predict but we at The BMA

We endorse the IMO Secretary General’s message

would make sure we collaborate with stakeholders

that ships should be able to safely and securely

including drawing from the feedback and experience of

undertake essential voyages, to deliver goods for the

our shipowners to identify the risks, participate in the

global population.”

regulatory process and provide appropriate guidance to

The Bahamas administration will continue to push to keep the Galaxy Leader and the plight of its crew on the radar, pledges Capt. Hutchinson. “This is also about

LISCR has issued a series of marine security

with complete information on how to comply.

“Regarding security incidents in the southern Red

our owners so they can make decisions accordingly.”

UK Ship Registry

the next generation of seafarers – how do you attract people to this sector that we love when they see that this is what could happen to them?”

The shipping sector is ‘famously resilient’ and has shown itself to be flexible and adaptable throughout its

From the BMA’s point of view, every ship owner

history, says the UK’s Department for Transport (DfT). While

has to take a strategic business decision in terms of

the UK Ship Registry declines to comment on specifics, a

where they operate, while making sure they comply

DfT spokesperson says: “The UK government continues to

with international conventions, take into consideration

work with the maritime industry both nationally with the

regional/local requirements and do appropriate risk

UK Ship Register and globally to find the most appropriate

analysis. However, the BMA has told owners that AIS

way to support it.” The government is in regular dialogue

can be switched off in the region. “There is publicly

with shipping operators “but obviously cannot speak

accessible information to identify the location of

on specific advice we are giving”, according to the DfT.

ships. From our perspective, we provided guidance to

“Information we provide is used by operators to support

companies to assist in determining whether to turn off

their own risk assessments.”

the vessel’s AIS if they have assessed that there is a

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Ship Registries

notification to coalition forces in the area and proper

Bill Gallagher, President of IRI (International Registries,

implementation of best management practices. In all cases,

Inc.), the administrator of the Marshall Islands Ship

governments need to do their part to ensure safe, secure

Registry, says: “We are constantly in contact with

and environmentally friendly passage while facilitating

authorities in the area. We have expanded our security

international trade. Shipowners should not be left to solve

team. Obviously we are also sending out a lot of

these problems for themselves.”

notifications and guidance to vessels, and there is a lot of

The shipping industry needs more support from the international community, concludes Castillero. “Additional

monitoring going on.”

“Vessel owners and operators must do what they think

presence of naval assets equipped with anti-ballistic/

fit from their own security perspective, but absolutely we

drone equipment in the area will deter attacks.” He notes

give them the guidance.”

that during the IMO subcommittee on ship design and

Evan Curt, IRI’s Vice President, Maritime Security,

construction meeting in January, several delegations

adds: “Our focus is on looking at the threats and what

expressed concerns for the safety of ships and their

the Houthis are targeting on, and keeping in close

crew following the Houthi attacks, and commended the

communications with the US naval presence in Bahrain and

Secretary-General’s effort in bringing this to the attention

the UK MTO (Marine Trade Operations).”

of the UN Security Council.

Marshall Islands Struck by a Houthi anti-ship missile in January, the Marshall Islands-flagged tanker Marlin Luanda was afterwards on fire for several hours in the Gulf of Aden.

Once the fire was extinguished, the vessel, operated on behalf of Trafigura, made its way towards a safe harbour, its crew thankfully all safe.

Bill Gallagher

Ship Registries

Ship Registries

Meanwhile, he adds, geopolitically neutral flags will

“At PISR, we strive to be a trusted partner for shipowners,

become more attractive in this environment. “The Jamaica

especially amidst turbulent times. We are in the process of

Ship Registry sees the current environment as providing

being certified for ISO/IEC 27001:2013, the international

a possible opportunity to enhance its product offering

standard for information security, to demonstrate our

and relationships with existing and potential customers.

unwavering commitment to safeguarding client data.”

Our optimism is shared by most flags as we hope for a

The waves of challenge rise and fall and shipping has

termination of hostilities in the Red Sea region and a return

to be resilient and adaptive to respond to the situation,

to normal trade.”

says PISR. “Once a challenge has been resolved and the industry gets back to some form of normality, another

Palau

event happens and the sector needs a quick response. PISR helps our shipowners by communicating any implications

Palau International Ship Registry (PISR) says that so far, the Red Sea situation has not impacted its operations and clients have not requested route changes away from the

need their attention during the situation.”

The global pandemic demonstrated the importance of digitalisation and new technologies within the

Suez Canal.

Nick Makar

from a flag perspective as quickly as possible that might

“We keep open communications with our shipowners by issuing frequent security advisories to

shipping industry, while the increasing number of stricter environmental issues in shipping contributes to increased

them. These aim to keep clients well informed with the latest updates and best practices for ensuring safe transit and trade in the region.”

The marine industry is at a critical crossroads, according If there is an attack, IRI’s priority is to make sure the

He too emphasises: “Shipping must remain resilient

crew is OK. “We are immediately in constant contact with

in the face of all the potential negative impacts caused

to transformative strategies is imperative to navigate the

the authorities, who are often already monitoring the

from recent and future global developments, including

challenges ahead and PISR has successfully implemented a

situation because it’s in a high-risk area,” says Gallagher.

the current security risks in the southern Red Sea. Global

culture of innovation to thrive in these highly volatile times.

“We talk with security officers, the DPA, etc., and help

trade depends on uninterrupted shipping, especially as

coordinate any communication with naval forces.”

the world comes out of the negative consequences of

Diverting around the Cape of Good Hope is a commercial issue for shipowners and an issue that impacts

the Covid-19 pandemic.”

Asked if shipping needs more support, he replies:

on cargo owners, notes IRI. “From the Marshall Islands

“The IMO substantially supports the industry. Recent

Registry’s point of view, we are keeping an eye on that,”

examples include its participation in the Black Sea Grain

says Nick Makar, SVP - Maritime Administration and

Initiative and in the introduction of maritime security

Regulatory Affairs at IRI.

initiatives in the past, along with numerous other

“Part of that decision-making is having to account for

undertakings to support the flow of trade and the many

additional time at sea as well as additional fuel consumed

instances of development to recognise and bolster

and things like the EU ETS coming into effect. Also,

seafarer welfare and wellbeing.

whatever planning has been done for sulphur emissions requirements has to be refactored in.”

However, he says, the crew is always ‘first and foremost’. “Any additional time has to be factored in and whether there were any plans for repatriation or getting

Panos Kirnidis

to Panos Kirnidis, CEO of PISR. “We believe a commitment

Belize-flagged Rubymar forced to evacuate crew

O

n 18 February, the Belize-flagged, UK-

countries together with

registered bulk carrier Rubymar suffered

the USA condemning the

what was described as the Houthi rebels’

actions taken by Houthi

most damaging missile attack to date whilst carrying

Rebels against commercial

and more cooperative joint naval task forces can be

a cargo of fertiliser northbound through the Gulf of

shipping,” she continued.

arranged for the protection of vital sea lanes which are

Aden en route from the UAE to Bulgaria. The vessel

“In early 2024, Belize

currently, and potentially, under security threat.”

was reported to have caught fire, started taking on

issued a Maritime Advisory warning our shipowners of the

water and the crew had to be evacuated.

situation and have been monitoring our ships in the area.

“A major role for navies is the protection of shipping

He warns: “Threats to shipping will not only have the

“The owners of the Rubymar were advised to provide us

reliefs on board at points on the original route, and

effect of driving up the price of goods and services and

whether the diversion affects those plans, has to be taken

constricting maritime business expansion but, if prolonged,

Belize (IMMARBE) Senior Deputy Registrar, Annette

with updates twice a day when

into account.”

may see a reduction in the introduction of new tonnage,

Garel (pictured right), told SMI the following day

it was observed traversing

small operations and leisure activities, thus constricting the

that the Registry had been in contact with the owner

the Arabian Sea and heading

market for ship registries.”

of the vessel and was “very relieved to learn that all

toward the Gulf of Aden in the

crew members are safe in Djibouti. They are in the

proximity of Southeast of Port

process of launching salvaging efforts after containing

Raysut as they were in a high-

the explosive fire onboard the ship.

risk area.” l

Jamaica No Jamaica-flagged vessels have been affected by the Red Sea crisis, with none trading in the area at the time of writing, says Rear Admiral Peter Brady, Director General of the Maritime Authority of Jamaica (MAJ).

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Peter Brady

The International Merchant Marine Registry of

“On the issue of the escalation and tension in the Red Sea since last year, Belize was part of a coalition of

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Ship Registries

complexity, adds PISR. The registry supports IMO initiatives

Isle of Man

such as the CII and EEXI: “However, we advocate for a more comprehensive and adaptable system considering

On the innovation front, fellow Red Ensign flag the Isle

ships’ diverse characteristics and operating conditions.”

of Man has just welcomed the world’s most powerful sailing

Gibraltar

cargo ship into its fleet. Berge Bulk’s Berge Olympus has been retrofitted with four WindWings and a shaft generator system to supply electric power to the vessel, both retrofits designed

To date, no Gibraltar-flagged ships have been affected by the Red Sea crisis, says Dylan Cocklan, Maritime Administrator

to reduce fuel consumption and emissions.

The Isle of Man Ship Registry (IOMSR) described its

at the Gibraltar Maritime Administration (GMA – see also

participation in the project as ‘a testament of shared vision

Gibraltar report).

with Berge Bulk as one to lead the industry in a zero-carbon

“As a member of the Red Ensign Group, we prioritise the

future through safe, efficient and sustainable shipping’. Its

safety and security of our clients – shipowners as well as the

Singapore representative, Capt. Raja Ray, says: “I inspected

crews,” he says. “The GMA is in constant contact with shipping

the vessel last year before its retrofit and returning on board,

operators. We actively provide them with the latest security

the transformation and the technology behind it that I saw was

updates from the UK DfT, ensuring they stay informed about

truly amazing.” The Berge Olympus will sail between Brazil and

potential risks. Based on this security information, the operators

China, a trade route offering favourable wind conditions

can then proceed to make operational decisions using our

(see also Isle of Man report).

information as well as their own risk assessments. Beyond our role as a flag state administration, our access to and support from the UK government further enhance our ability to assist

CAYMAN ISLANDS

our customers effectively during challenging situations. This collaborative approach allows us to offer comprehensive

The Isle of Man Ship Registry’s Capt Raja Ray right with Gurpreet Sandhu of Berge Bulk onboard the Berge Olympus

support to our clients.”

Shipping’s resilience has been evident in its response to diverse challenges, from the Covid-19 pandemic to environmental regulations and recent transit disruptions, continues Cocklan. “The industry’s ability to adapt is commendable, and it can remain resilient by fostering innovation, embracing digitalisation, and collaborating on sustainable practices.”

Panama

However, he says, while the shipping industry has showcased resilience, additional support is ‘beneficial’.

Meanwhile, the Panamanian Ship Registry says it remains

“Governments, international bodies, and industry

the world’s largest flag with 8,540 ships and 251.1m grt

stakeholders can contribute through clear and consistent

in its fleet at the start of this year. This represents 16% of

regulations, fostering innovation and facilitating the

the world fleet, it states, having grown by 83 vessels and

transition to sustainability. These challenges impact ship

7.2m grt in 2023. During last year, the registry cancelled

registers by necessitating agility and efficiency. Registers

161 vessels totalling 1.28m grt and with an average age of

must align with evolving environmental and safety

17 years. Nearly 80 of these ships were related to issues of

regulations and standards, embrace digitalisation for

unreported and unregulated fishing.

transparency, and adapt to changing regulatory landscapes to remain effective in serving the industry.”

‘Registry vision’, projects and expectations, figures reported as a result of the State Port inspection plan, maritime accidents, RO audit plans and improvement actionswere among the issues addressed at Panama

Dylan Cocklan

Maritime Authority’s annual meeting with the managers of 32 Recognised Organisations working with the administration. It enumerates “decarbonisation, the economic downturn, the decrease of new constructions, aging of the world fleet, the instability situations of the economic blocks and great powers and the situation in the Red Sea and others” as the main challenges facing it and other Registries.

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Regarding the Red Sea crisis, the PMA has issued a latest circular strongly recommending all Panama

forces in the area and with the PMA, and report any incident or suspicious activity as soon as possible.

Flag Registry vessels to take all security measures and

“In case the Captains/Ship Security Officers (SSOs)

avoid transiting the Red Sea if possible, or otherwise

and the companies decide and consider the shutdown

implement security level 3 or equivalent port security

of the aforementioned equipment, they must notify and

measures in the surrounding areas and maintain

report the status of the ship and its crew every 4 hours via

communication at all times with UKMTO and the Central

email to nardila@amp.gob.pa and isps@amp.gob.pa .“

Command of the USA Naval Forces.

In light of the above, the Administration urges all

It provides a detailed list of specific shipboard

shipowners, operators, Company Security Officers

recommendations that can be found here: https://

(CSOs) and SSOs to verify that the LRIT System and

panamashipregistry.com/wp-content/uploads/2024/02/

AIS are functioning correctly at all times, in order to

MMN-03-2024-RED-SEA-20-02-2024.pdf .

continuously send vessel positions. l

The Authority further stipulates that “All vessels hoisting the Panama flag before, during and after transiting the Red Sea, Gulf of Aden and Persian and their approaches must keep the automatic identification system (AIS) and LRIT on except in those cases in which the captain consider that the safety of the vessel could be compromised or when a safety incident is imminent.

In accordance with the provisions of the International Convention for the Safety of Life at Sea (SOLAS), VHF Channel 16 must also be monitored and communication maintained at all times with the naval

Regional Focus Gibraltar: Planning with certainty in mind

I

f there is one thing that is certain

Indeed, when questioned by SMI,

a deal or not, Gibraltar will forge its way ahead,” she said.

about the post-Brexit political

the Rock’s new Minister for Maritime

future of Gibraltar, it is the total

Affairs Gemma Arias-Vasquez, said

And according to the Minister, the

the Government was operating to

best scenario is clearly one where there

With Spain pushing for a deal

two scenarios: one for a negotiated

is flexibility and transparency. “But even

that they insist must include the joint

treaty that benefited Gibraltar, and

when you have freedom of movement,

control by London and Madrid of

one for a non-negotiated outcome.

there will always be problems,” she said.

the disputed territory’s local airport,

“This isn’t the first time we have

Currently approximately 15,000

London is determined

been in this scenario, we are fairly

Spanish citizens cross the border every

to refer to it as ‘use’

used to dealing with adversity. We

day to work in Gibraltar, and they queue

of the airport, not

are very malleable and will always

up, sometimes for hours, to return home

control. And there

find the best way out of a

in the evening. It is not uncommon for

uncertainty of it all.

lies the conundrum.

situation. Whether we get

restaurant or shop staff to plan the time

Minister Gemma Arias Vasquez

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Gibraltar Report

Gibraltar Report

they leave in the evening by browsing the border app which

So, what is Gibraltar’s unique selling point? The Minister again: “Well the flag benefits from the fact that we are a

shows the extent of the queues.

“The desire is always to have freedom of movement

commonwealth common law jurisdiction, where our registration,

at the border and to have prosperity in the area and a

our mortgage system and our legal system is based out of

government that we can work with in our neighbouring

the UK, which is good. It is also an easy place to arrest a ship

jurisdiction,” she added.

because there are established procedures here.

And what of Gibraltar and the opportunities for growth?

“You can register a company here in Gibraltar where the

The Minister’s response was somewhat surprising: “I think we

taxation rate is 12.5%, and considering that Gibraltar is a main

have a great product to offer which hasn’t been marketed

bunkering area, there are also great port operator services

enough over the years. Geopolitically, we’re perfectly placed

here and great training programmes now available through the

where we already offer a lot of maritime services, so we’ve got

University for the maritime industry, it all starts to come together

do a deal that works for Gibraltar going forward in terms of its

the shipping agents, we’ve got the port agents, we’ve got the

to establish a great product,” she said.

economy and its people and so on and it’s got to avoid ceding

place, and we control – we have a good relationship with

anything to Spain in terms of its claim to sovereignty and so on,

customs, so things move very fluently. But then we have these

so tough.”

external factors, which we don’t know how they are going to

flag, and the bunkering and ship repair, but it’s about tying

When you have growth on your mind, you have to look at

up all the ends and marketing it as a product. That is what we

areas where you can invest in, and the Government is looking

haven’t been particularly good at doing as a jurisdiction, so

at new areas such as super yachts. But what about Brexit and its

it’s about picking it up and showcasing to the world exactly

impact on services such as the flag?

As Danny Gabay, Managing Director of Gibraltar-based

“It’s easy to do business in Gibraltar, because it’s a small

affect our businesses. So, it’s not just a question of painting it

freight forwarding specialist Redwood International, told

doom and gloom, but obviously we have to be honest and say,

what it is that we have here. As well as the benefits of having

“The press has been full of treaty talk for the last number of

SMI, when the government started negotiating Brexit, it sent

look, at the moment, we cannot give any guarantees to anybody

your vessel registered in Gibraltar and having a company that’s

years, and we’re constantly being told it’s around the corner, but

the Gibraltar Port Authority Committee a list of pointers and

who is looking to do business in Gibraltar, that things might not

registered in Gibraltar.”

the reality is we have no idea,” said Guy Stagnetto, partner at

concerns that the shipping industry had, “but we never received

change in the near future.”

the law firm, TSN Barristers & Solicitors.

a reply”.

There are rumblings that Gibraltar could position itself as a

The lack of available space is also of concern to many

It’s one of those issues where the Government is playing its

Mr Gabay added: “We have a new Minister now and we

businesses in Gibraltar, with Dyfan Goldwin, Operations

cards very close to its chest. If it gets sanctioned by government

have given her exactly the same questions and pointers that we

Manager at the Global Group of Companies, saying this

Indeed Raymond Triay, Partner at the Gibraltar law firm Triay,

and it gets done, it will be because it’s a good deal for Gibraltar

raised at the time. The supplying of spare parts from Gibraltar

particular concern had been passed onto the new Minister.

said: “We’ve had a couple of enquiries from ship management

in the round. But that is a key issue for us. The uncertainty that

is one of our strong points because geographically we are well

But how can the situation be remedied? “I will leave that to

companies in Hong Kong to possibly come here but one of the

has been hanging around since Brexit, is something that we

placed to supply vessels transiting the area. “But if the border in

the experts. We can pose some ideas but again, it’s the marina

main issues that bothered them as the uncertainty of the border,

would like to put an end to. We’d just like to do a deal and

La Línea disappears, and we are not included in the movements

on the east side, future development projects. I’m sure that as

because the uncertainty over the border would affect their

move on,” he said.

of spares in the Shengen area, then we might not be able to

you’ve seen, Gibraltar looks like a construction paradise. I’m

strong contender to accommodate the world’s ship managers, something that is not outside of the gaze of the Minister.

ability to hop on a plane. At least Malaga, which is only an hour

But what is the likely scope of the deal?

receive any ship spares in Gibraltar because they cannot transit

sure that they could rebuild within the marinas but everything

away from here, is very well connected,” he said.

Guy Stagnetto again: “There are a number of different

through Europe with Gibraltar as the final destination. That

leads to the fact that there’s no space.”

According to Dylan Cocklan, Gibraltar Maritime

Coming from a legal background, the Minister is aware

issues, but they probably include immigration, passport control,

would ruin the industry completely. There are so many things

of the importance of financial services, and the Government,

customs and related issues such as VAT and entry and exit for

that we don’t have answers to,” he said.

together with the flag, the port and representatives from the

military personnel. But we’ll have to see what the deal looks like

According to Redwood, the Government told it not to worry

opportunities. “The Gibraltar Maritime Administration can now

maritime services sector, have visited London and Greece to sell

when it comes. But those are the various areas that have been

and that these things were being looked after, and that the port

also work outside the traditional ‘comfort zone’ of the EU and

Gibraltar’s strengths to these important markets. “We visited

spoken about for a number of years, and we don’t really know

would be safeguarded. “But the more we look at things, for

seek new markets.

these jurisdictions to tell our story, to outline what we have

where the sticking points lie. I suspect that the joint use of the

example, if this deal goes ahead, in theory, the port of Gibraltar

to offer and explain why it is different and better than other

airport is very much at the top of the list of outstanding issues.

would have to stop carrying out any commercial activities

maintaining high-quality standards and ensuring compliance

jurisdictions. It is all about doing this exercise consistently.”

I think the government has got a very difficult task. It’s got to

because the moment that any goods leave the port, they

with international regulations. However, with our continued

would physically be entering Europe. Because as far as we’re

operation come challenges, and we are actively addressing

concerned now, the airport and the port would be two points of

issues such as competition from other registries and evolving

entry into Europe.

international regulations.

“Because of the volume of goods we have coming in and

James and Raymond

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Administrator, Brexit has been a challenge but it has also created

“One key opportunity lies in our commitment to

“Our focus on providing efficient services, fostering positive

out of Gibraltar, the resources we have to control any entry point

and lasting relationships with our clients, and staying adaptable,

into Europe are very limited. Europe would not allow us with the

positions us well to navigate these challenges and help us grow

infrastructure we have, and it wouldn’t be justified for us to invest

the Gibraltar register in line with our vision,” he said.

in the kind of infrastructure we would need to be able to carry

The vision is clear, it is to uphold and enhance “the

out that function within Europe. So, basically, the only alternative

reputation of our Flag by promoting a large and diverse fleet

is you cannot do any commercial activity through the port, which

without compromising quality. Our mission is equally ambitious,

means you cannot bring any containers from anywhere outside

to contribute towards the continued development of Gibraltar

Europe,” he said.

as an international maritime centre of excellence.

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Gibraltar Report

We provide a vessel its nationality. We therefore perceive

enables it to interact with its clients on survey related matters

our role as a facilitator of international trade and commerce by

online. “This has added greater efficiency to our service,

maintaining a registry dedicated to the highest standards.”

eliminated paperwork and enhanced our interaction with

Where is interest in the flag coming from?

Dylan Cocklan again: “The Gibraltar Maritime

clients,” Mr Cocklan said.

“We provide fast response time to technical, registration

Administration has always seen a diverse range of interest

and seafarer related queries. – we normally action these queries

in vessel registration from various parts of the world. Our

within the same day. Our simple application processes allow

reputation for a robust legal framework, efficient registration

us to provide a quick turnaround service for ship and seafarer

processes, and a commitment to safety and quality standards

documentation. We can issue the relevant certificates within 24

has attracted ship owners globally.

hours, provided all documentation is received.

“Gibraltar has a wide ownership eligibility criteria. This

“Additionally, we continue to invest in staff training and

means individuals and companies from across the globe can

development to ensure a highly skilled and knowledgeable

qualify to register vessels in Gibraltar. Owners have the option

team capable of addressing the evolving needs of the maritime

to register their vessels under a variety of different ownership

industry. Collaboration with international organisations and

structures.

industry stakeholders is a key focus, as it allows us to stay

“We have no nationality restriction on seafarers. This means that seafarers serving on Gibraltar registered vessels can be of any nationality provided they hold a Certificate of Competency

informed about industry trends and align our services with global standards.

“Continuous feedback mechanisms and regular reviews of

issued by one of the many countries recognised by us. This

our procedures enable us to adapt swiftly to market demands,

provides companies with flexibility in choosing whom they can

ensuring that we remain a preferred choice for shipowners

employ aboard their vessels.”

seeking a reliable and responsive flag state.

To meet the demands from the market, the Gibraltar

“In addition to our very competitive fees, we offer a

Maritime Administration is implementing several strategic

simple annual tonnage tax system; multiple vessel registration

initiatives. It is enhancing its digital infrastructure to streamline

discounts and reward owners who adopt “Green” technologies

the registration processes, making them more efficient and

and systems.

“Importantly, Gibraltar enjoys consistency in the

user-friendly.

“Our registration procedures are simple and easy to

governmental commitment to the shipping sector, and

follow. Our experienced registry staff, working closely with

in particular, the role the registry plays in Gibraltar as an

local registered agents, ensure ship owners experience an

“international maritime centre of excellence,” he concluded. l

efficient and smooth registration process whilst also remaining personally accessible and approachable throughout.

“We offer IMO FAL compliant electronic certificates across the board, including registration and statutory certificates for both ships and seafarers,” he said.

The flag has also developed cloud-based systems which

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Gibraltar Report

University of Gibraltar working to meet the needs of industry

F

lexibility and agility are not

delivery of high quality industry-relevant

Cruise Companies calling in Gibraltar

only the watchwords of the

Maritime technical training.” the

and STCW training courses running every

flag and the port in Gibraltar,

University said.

month of the year,” he said.

The University is also working

Demand is primarily coming from

principles for the University which has

with all bunker suppliers and several

the cruise sector as they come alongside

complemented its maritime academic

ferry operators in the region and their

Gib Port and the close location of the

programmes with high-quality

respective ship management and crew

University Maritime Academy allows for

technical courses for industry.

management representatives together

easy pick up of crew for training and return

with numerous local agents, Gibdock and

back on-board before the vessel departs.

but they are also strong guiding

The School of Maritime runs a BSc (Hons) Maritime Science with Cadetship

diving services companies.

Having our courses consistently up and running allows vessel

programme (Nautical or Engineering),

And what about demand for the

which combines academic qualifications

courses? Well according to Aaron Lopez,

operators and managers to maximise

with practical training through MCA-

Head of the Maritime Academy, the BSc

productive time during their call in

approved, guaranteed placements. The

(Hons) Maritime Science with Cadetship

Gibraltar, he stressed. l

University of Gibraltar recently became an

programme (Nautical or Engineering),

MCA approved centre for this academic

is now into its 3rd year and it has gained

programme and is also responsible for

significant traction. “We have doubled

placement management and technical

our intake every year as word spreads

training, seen as much needed services

about our innovative approach to the

for the local maritime industry to ensure

programme structure (3 year degree that

it is future-proofing its development and

includes OOW + guaranteed placements

sustainability in the sector.

with quality operators). Cadets are being recruited from around the world such as

The University has developed

the US, UK, Morocco and elsewhere.

strategic partnerships with the Government of Gibraltar, the Gibraltar

“Operators themselves are showing

Port Authority and the Gibraltar Maritime

increasing interest in offering placements

Administration. In addition, the University

and subsequent employment due to

works in partnership with the Viking

the calibre of our cadets. In terms of

Maritime Group (VMG) to provide a

technical courses, we provide MCA-

well-established portfolio of world-class

approved maritime STCW training,

Maritime education and training, further

tailored beyond compliance training, and

supporting Gibraltar’s status as a Maritime

bespoke training for the fast-evolving

Centre of Excellence.

maritime industry and to the 10,000 ship

“VMG are industry leaders in Crew

calls together with 20,000 crew changes

Management, Maritime Training and

per year in Gibraltar. The 2024-course

Cadet Management and together we

calendar is well underway, having over

have successfully synchronised our

40 operational beyond compliance

approach to the development and

firefighting courses booked by major

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Aaron Lopez

Gibraltar Report

Geopolitics – a silver lining or a negative backlash?

Ian Penfold

T

Nicholai Bado

he much publicised attacks on shipping in the Red Sea

Gibraltar to take bunkers here, if they see that the Canary Islands

have galvanised attention on the strategic position that

are congested.

Gibraltar holds between the Atlantic Ocean and the

MH Bland is one of the well-established companies in

Mediterranean Sea, with some suggesting that it could mean

Gibraltar, employing nearly 300 people across its sites on

more ships stop at this important bunkering centre or indeed

the Rock and in Spain Morocco and the Canaries. It is also

some suggesting Gibraltar could be avoided entirely as South

responsible for operating the cable car in Gibraltar, that takes

America bound ships refuel in Las Palmas in The Canaries.

tourists up the Rock to see the Barbary Apes.

With over 100,000 ships transiting the Strait of Gibraltar every

“We have a lot of clients, repeat clients, some that we have

year, and Gibraltar claiming around 7,000 port calls during that

worked with for 50-60 years. We have had clients that have gone,

time, the opportunities are there. Something that was underlined

and come back, because they tried something, thought it was

by Ian Penfold, Director of MH Bland, port agency.

going to be better, and they’ve come back saying, not everything

“The Canary Islands are taking a big chunk of the market, but

is about price. But business is cutthroat right now, and I don’t see

we are still seeing a lot of vessels, especially container ships and

how some of the local companies are making money with the

car carriers, taking bunkers here.

volume of business they handle,” he said.

“My office in Las Palmas has seen business increase by 20%

Nicholai Bado, from Wilhelmsen Ships Service (Gibraltar), added to

to 30% this past couple of weeks, because all that extra traffic

the discussion by saying that vessels were starting to arrive in Gibraltar

that are coming through. Even our launch service providers in

after taking the longer voyage around the Cape of Good Hope. “The

Las Palmas have come back saying, we’re limited with the launch

containerships are faster, at 20 knots, then you have the tankers and

services that we have, bear with us, because we’ve got so much

the bulk carriers which do 10 knots, coming into play now.”

coming our way right now, that we can’t handle all the traffic that we have.”

Super yachts were the thing of the moment during the COVID pandemic as the rich and famous bought them in their

As Mr Penfold stressed, at the end of the day, the ship will

droves to go to sea to escape the ravages of lockdown, but

go wherever it needs to go and it will take on fuel wherever it

as Yvonne Chu, Partner in Hassans International Law Firm in

needs to take on fuel. If the ship wasn’t destined to come into

Gibraltar, suggested, they are starting to be discarded and sold

the Med and go down to the Cape of Good Hope, it will not

off- the toy that is no longer used – so to speak, because of the

stop, it will just carry on. They will come through and detour to

impact of the geopolitical situation.

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Gibraltar Report

“Because of the sanctions against Russia and the fact that

they don’t go out at sea overnight and if the weather is not

some of these yachts are owned by Russian individuals or

end up with absurd results and you’ve got to be very

M

careful that you don’t go down that rabbit hole,” said

acute psychosis.

that good, they wouldn’t even risk going out,” he added.

entities, they are caught by the sanction’s regime,” she said.

“The problem with sanctions is that you can take the

“So, even in a litigation context, you do get banks, for

technical detail down to its most literal meaning and you

example, that have mortgages over these super yachts, who then take possession of the super yachts, bring them here to Gibraltar, where there’s a good jurisdiction to get a court

Ernest Morillo

HassansTeam

Raymond Triay, Partner at the established Gibraltar law

ental heath issues among seafarers continue to be a worry, according to Dr Joanna Shelley, Occupational Health and Managing Director at

College Clinic, with cases reported in Gibraltar including “We are lucky that we have a psychiatrist on hand

sale. But then, of course, you have the issue of what happens

and apart from the Red Sea issue as well as the Brexit issue,

because unlike some of these rusty old tankers, where there

Gibraltar also has to deal with the issue of Russian sanctions,

“So, what you’ve got to make sure is that you keep in

isn’t enough equity in the vessel after a mortgage and other

something that Ernest Morillo from Gibraltar agents Alfaship

mind the whole point of the sanctions. The whole point

crew as well. But I have never failed to be amazed by the

debts have been paid, these super yachts are worth a lot of

said has taken a toll on vessel calls.

of the sanctions is to avoid giving any able assistance to

versatility and resilience of today’s crew. I think they’re

the Russian War effort and what you don’t want to do is

very well trained and they handle situations, both from

firm Triay.

because these are not easy cases to manage,” she said.

“It is scary for the experts and it is scary for the ship’s

money and there is a substantial residue left. Of course, the

“As you know, Gibraltar is taking a very hard line in terms

issue there is what happens in light of the sanctions once you

of vessels coming or going to Russia. We are unable to service

embroil yourself in scenarios whereby you’re prohibiting an

acute psychiatric conditions to fairly nasty trauma and

pay all creditors?”

them, whether they are in ballast or loaded. We have talked

activity that has no effect whatsoever, but there is a nexus

deaths on board, incredibly well considering,” she said.

about it with the Port of Gibraltar and it’s something that

of some sort that some person might think,” he said.

College Clinic provides emergency and routine

the money left over and there was at least one case where

came from the top. We’ve tried to see whether we could

There is an element of the need for a bit more

medical attention to seafarers transiting through the

there was a dispute as to whether it belonged to a sanctioned

get something to say that they are satisfied that the vessel

clarity, he added, because at least we’re more used to in

Port of Gibraltar. It has a team of doctors who are

person at the time that the vessel was arrested or whether he

is working on the conditions of the European rules. But we

Gibraltar at least, going through the process of licensing

experienced and trained in shipping medical case

had, as is claimed, divested himself of the interest in that. That’s

tend to try and get this information from the clients, but the

and applying the sanctions regime. “But let me put it

management, including attendance on board for

the sort of issue that the court has to grapple with. “Of course,

clients are not really bothered. They don’t want us to stop in

this way, when I did my first license application under the

emergency extraction of critically ill or injured patients

the authorities also have to be very careful that the money

Gibraltar, we’ll stop elsewhere. What’s happening is they are

sanctions regime, it was for this Russian super yacht. We

from the vessel to local medical facilities. Its doctors will

doesn’t actually leave the Admiralty Court unless it’s absolutely

stopping right across the bay in Algeciras, because in Algeciras,

didn’t even have forms. I think that says it all, in terms of

also attend on board for minor conditions because we

certain that there’s not going to be any breach of sanctions,”

they will check the cargo, but unfortunately, Gibraltar hasn’t

this is very new.

know that time is of the essence.

she said.

got the intelligence or the manpower to do that. So, that’s

Triay is a full-service law firm divided into a number of

something that is affecting us directly and we’ve noticed quite

distinct practice areas namely Corporate and Commercial,

not be at sea but have somehow slipped through the

a considerable drop in the port calls because of that,” he said.

Dispute Resolution, Employment, Family and Divorce,

net and managed to get a medical certificate and get on

“At the moment, we are in the middle of discussions

Financial Services, Private Client, Property and Shipping

board. But by and large, I find the population is getting

and Admiralty. l

older, but I think they’re healthier older people. Over

As Yvonne Chu stressed, the problem is what happens with

As Lewis Baglietto KC, Team Leader and Partner at Hassans, added, Gibraltar has worked hard to try to encourage super yachts to come to Gibraltar. “But Gibraltar is a very

Dr Shelley again: “There are some people that should

small place and it needs to plug the gap and have a bit

with the Port authority, because we want to make better

more of a playground for the ultra-high net worth to come

use of the eastern side. The eastern anchorage most of

the last year, we’ve had a lot of ships with medical burns

and entertain themselves a little bit more. So, it is a little bit

the time is empty or with the local barges just dropping

for example, injuries at sea, where they have actually

about the facilities that we have here. There are construction

anchors there and we are trying to see what other services

headed straight for Gibraltar and actually in looking back

development projects that are being worked on in Gibraltar,

can be done outside which is not going to be any problem

on it, they’ve actually sailed past three or four ports that

including the Eastside Project, which will have a super yacht

for local authorities or regulators. One of the things that

had major burns units there.” l

marina. The intention is to try and plug that gap.”

comes to mind is the ship citation certification. Not many

The Eastside Project aims to revitalise the eastern area

ports in the world provide this service, especially not at

of Gibraltar by creating a contemporary and captivating

anchorage. They can do it alongside but not at anchorage.

development. This endeavour envisions the establishment of

Gibraltar can do it at anchorage. The only thing is that

residential complexes, dining establishments, a marina, and

we are limited to 48 hours’ notice, so that the agency

various facilities, including a spacious park.

can confirm whether they can attend and because it’s a

Similar to London buses, geopolitical issues come in threes

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government company, they’ve got rules and protocols, so

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Gibraltar Report

Gibdock looks to growth

E

stablished Gibraltar shiprepairer Gibdock

shipyards being busy. And the provision of ballast water

continues to go from strength-to-strength and

treatment rules was another factor: we went through a

sees its recent acquisition by the maritime

phase where we were installing a ballast water system

engineering solutions provider Balaena as a positive

on pretty much every vessel we dry docked. We are

move as it looks to a future punctuated by continuation

now in what we call our ‘ferry season’ which will last up

of existing work as well as potential new business

to a month after Easter, so continuing the busy period,”

linked to the environment.

he said.

According to its Managing Director Richard Beards,

But what is winning the battle for business? “I think,

the additional type of work can include engineering

Gibraltar’s location has always been key to it, and has

work associated with wind, solar, sewage treatment and

always helped. Ship repair has always been a feast or

the provision of fresh water.

famine sort of industry and it’s how you manage both.

“We’ve been more or less fully booked for two years

Gibraltar’s location helps with that, in that the famine

now, so it’s been a very strong period of growth for

is never as bad as it could be, because of the location.

us. There were a few reasons for this. One was the fact

Also, we always try to do a good job, and deliver a

that Europe came out of Covid restrictions faster than

quality product in a safe manner, on time,” he said.

China did, so there were restrictions on superintendent

As he stressed, it is very much about keeping hold

representatives which had a knock on effect of

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of repeat business and building the right relationships.

Gibraltar Report

Gibraltar Report

This has started to reap rewards in

doing this in conjunction with the

In his previous role as Technical

two new areas of business – military

Gibraltar Government, so that is

Director at Cammell Laird, he was

work and super yachts. The drive for

always important”, he said.

responsible for leading the technical, bids, estimating, and planning teams.

Gibdock, a leading ship repair

alternative fuels will also generate potential business such as LNG

yard, recently announced the

His expertise and leadership were

retrofits and there is anticipation for

appointment of John Barnard as

integral to the success of projects

the first battery conversion.

Commercial Director. With over

with high-profile customers, including

15 years of experience in the Ship

the Queen Elizabeth Class Aircraft

visible example of the Rock’s

Repair and Ship Building industries,

Carrier builds, the Type 45 Power

maritime footprint, is working

his wealth of knowledge and

Improvement Project, and the Royal

closely with the Government of

leadership will play a pivotal role in

Fleet Auxiliary Cluster contracts.

Gibraltar on its apprenticeship

advancing Gibdock’s capabilities.

“We are thrilled to welcome

scheme. “We take in approximately

According to Gibdock, Mr

John Barnard to Gibdock at this

12 apprentices per year and plans

Barnard has garnered extensive

exciting juncture in our journey,”

are being drawn up for a new

experience as a ship manager,

remarked Simon Gillett, Owner and

training facility. We are looking

successfully overseeing projects

CEO. “His exceptional track record

to increase the numbers moving

such as military refits, passenger

in managing and leading diverse

forward and really invest in, and

ferry conversions and lengthening

maritime engineering projects

train, the local youth,” he said.

initiatives, in-service support

aligns perfectly with our vision

contracts, and offshore mobilisations

for the future. We look forward

talented into engineering is a

and de-mobilisations. Notably, he

to leveraging his expertise as we

global problem, he opined, “and

has served as Project Director for

continue to strengthen Gibdock’s

the training has got to be there

prestigious projects, including three

position as a leading engineering

to produce the skill sets that we

new build ferries and the Type 45

need. But we are fortunate we are

Power Improvement Project.

The yard, which is a highly

Attracting the young and

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Richard Beards

and ship repair facility.” l

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Isle of Man Report

Maritime cluster on a digital footing

T

he Isle of Man’s maritime fortunes may have seen something of a decline since the island first rose to prominence as a ship and crew management hub, but now it’s on the way back up and ready to be a digital pioneer,

according to Capt. Lee Clarke, General Manager of cluster body Isle of Man Maritime (IoMM).

“The Isle of Man used to be ‘the place to be’ in the 1980s,” he relates, “which is the reason why the Isle of Man Shipping Association was first formed.” The body has since changed name to the IoMM, and in the past three years since he took over as GM has continued to “adapt and evolve”. It recently expanded its membership criteria to include the superyacht sector and maritime-related service providers, and in the past year alone has welcome 10 new members, taking its total to more than 50.

“We now have a much wider variety of members,” he says, “and the Isle of man Government is very proactive in supporting us, through its Department of Enterprise and the Isle of Man Ship Registry. We work in tandem with the Registry, promoting the Isle of Man as a place to come to for shipping companies. We have a maritime eco-system and support network, hold regular meetings and are quick to try and sort any emerging problems or issues affecting Members.”

Today, the island faces a bright future as “the digital age comes barrelling down the road,” Clarke continues, “and we feel the Isle of Man is very well placed to meet it.” The island has already been positioned by the government as an ‘e-gaming Centre of Excellence’, with several of the big names in the sector with presences on the island, for which the Government invested heavily in the necessary infrastructure – high-speed internet via a fibre-optic cable network, Data Centres and Digital Hubs provided by the Government with a high degree of redundancy.

Editorial credit: Daniel Sztork / Shutterstock.com

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Isle of Man Report

And earlier this year, the Registry welcomed the world’s

“Ship and crew managers are

of five local fishermen’s lives – in recognition of which Douglas,

more and more embracing this digital

Isle of Man is to this day the RNLI’s No. 1 Lifeboat Station. The

most powerful wind-assisted cargo ship, the Berge Bulk,

revolution,” says Clarke, “and we

occasion will be commemorated in style this coming July, by an

to its fleet. “The initiative aligns with the new IMO goals,

feel the Maritime sector will be able

Isle of Man maritime community itself experiencing something

to reach net-zero GHG emissions from international

to make use of these facilities when

of a revival.

shipping by or around 2050, goals which IOMSR is also

it comes to automation, digital crew

Ship Registry

apps and so forth. Companies will be able to be positioned within these

The Isle of Man Ship Registry (IOMSR) is a prime

digital hubs and drive their ships from there, [benefiting] off-the-back of the e-gaming industry.”

Clarke himself is a Manx national who after his time at sea used to work for Bibby Ship Management (later

IoMM Executive Board members aboard Golden Hinde at LISW23 Front ( l to r): Cameron Mitchell, Capt. Lee Clarke, Bruce McGregor (Director, PDMS); Back: Cathy Lane (MD, MHG Insurance), Lesley Walker (Head of Marketing, Sentient), Lars Ugland (Chairman, Isle of Man Steam Packet Company)

taken over by V.Group) as a Cadet Manager, meaning recruitment and

fully committed to,” commented IOMSR Director Cameron Mitchell [see separate Registries report].

Regarding seafarer welfare, IOMSR launched the

ambassador for the island’s maritime cluster on the global stage

first ever seafarer welfare app designed by a flag state.

and has recently been expanding its international network. Last

‘Crew Matters’ is claimed to be the most advanced of

October it appointed a Middle East Representative, Dubai-

its kind ever produced for seafarers and is available to

based Capt. Rakesh Yadav, formerly with leading regional

seafarers worldwide. In August 2023 it stepped up this

shipowning companies Bahri and Emarat Maritime, and a

commitment to seafarer welfare by becoming a member

month later added a Business Development Manager for

of the International Seafarers’ Welfare and Assistance

Scandinavia and Northern Europe, Alexander Christensen.

Network (ISWAN).

Following the aforementioned LISW23 event that it hosted

IOMSR remains one of the world’s leading registers

training has become another priority

with IoMM last September, the Registry went on to enjoy a

of ships and superyachts and is ranked 19 in the world

for IoMM during his tenure. The former

highly successful participation at Marintec China in December.

by Clarkson’s with around 300 ships and 12.5m GT under

promotion campaign for ‘Careers

The 2023 edition of this biennial Shanghai event hosted

its flag. The registry has in the past held top spot on

at Sea’ has subtly been altered to

2,000+ exhibiting companies and 80,000+ professional visitors

the Paris MoU Port State Control whitelist and is on

‘Careers in Maritime’, opening the

from 100 countries breaking all previous records, with both

the whitelist in the Tokyo MoU rankings. The registry is

doors to young people on the island

IOMSR’s Deputy Director Toby Brooks and China representative

headquartered in Douglas, Isle of Man, a self-governing

who might want to pursue careers

Jonathan Kingdon in attendance to ‘fly the flag’.

British Crown dependency and is a Category One

in services or accountancy, as well of

IOMSR also visited HengLi Heavy Industries - a ‘new

course to those wishing to become

shipyard’ debut at Marintec China 2023 - COSCO Shipping,

cadets or ratings.

GSI, CCS, and RINA during the trip, as well as attending the

A highly successful maritime careers

UK government’s Green Maritime Exchange Conference. In

fair called Maritime Expo was started

addition, IOMSR met up with some Liverpool Propellers’ Club

on the island three years ago, attracting

members such as Idwal and Brookes Bell at Xinde Marine’s Ship

some 160 young people through its

volunteers a year are given the chance to

during last year’s London International

doors last time out in July 2023. A

experience a week of life at sea aboard

Shipping Week, he adds, for which

number of these attendees have since

a historic sailing vessel. Sometime this

feedback was “phenomenal”.

joined IoMM member companies

yields surprising results - he recounts

This coming July, the fourth edition

maritime community to advance and work hand in hand on

through an apprenticeship scheme that

how one young student wishing to

of the Maritime Expo will be followed by

key maritime industry development issues such as seafarer

the IoMM runs, says Clarke, and there are

become a marine biologist needed a

a revived annual Maritime Conference,

welfare, safety, marine environmental protection, green

currently six Manx full-time cadets, also

lot of convincing by her father to take

where leading figures from the island and

shipping and decarbonisation.”

thanks to the Expo.

Management and Technology Forum.

Toby Brooks commented: “All members of IOMSR sincerely look forward to working with China and the global

part… but then was totally won over after

further afield will discuss the major topics

Regarding the latter, IOMSR became the first flag

The island, as a British Crown

witnessing first-hand the phenomenon

of the day, including Safety, ESG, Digital

state to join the Getting to Zero Coalition, an industry-led

dependency lying outside the UK (and

of ‘bioluminescence’ at sea and never

and Seafarer Welfare. The event will have

alliance working towards decarbonising the international

EU), is not covered by UK Tonnage Tax

wanted to leave the ship!

a special significance as it coincides with

maritime shipping sector. Members include more than 120

‘So we’re driving skills into Maritime

the 40th anniversary of the Isle of Man

organisations from the maritime, energy, infrastructure and

through our Expo and Tallship Initiative,”

Ship Registry, as well as with the 200-year

finance sectors.

is a big improvement over the time when

Clarke resumes, “having changed the

anniversary of saving-lives-at-sea charity

Clarke himself wanted to become a cadet

conversation from Careers at Sea to

the Royal National Lifeboat Institute

in April 2022 IOMSR had become the first flag state in the

but was forced to temporarily relocate to

Careers in Maritime.” The IoMM also

(RNLI).

world to reduce registration fees for ships deploying green

the mainland in order to qualify for the

takes part in promoting the island abroad

The RNLI, now based in Poole,

technology. The measure gives ship owners a 15% reduction

UK scheme.

and received some 250 enquiries for its

England, was first founded in Castletown,

on their annual registration fee. The reduced fee is available

provisions and therefore has its own Manx Cadets Programme, he adds. This

In another industry-leading environmental development,

100-person reception aboard the full-size

Isle of Man, by Sir William Hillary after he

to operators of cargo ships, commercial yachts or passenger

introduced at IoMM is a Tallship

reconstruction of Sir Francis Drake’s

witnessed the tragic sinking of a Royal

ships which are investing in biofuel, alternative fuels, wind, or

Initiative whereby some 12 young Manx

‘Golden Hinde’ moored at Bankside

Navy brig off the island involving the loss

shore-side energy technology.

Another project that Clarke has

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member of the Red Ensign group. l

Issue 107 January/February 2024

Toby Brooks (left) and Richard Kingdon at Marintec China

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71

Isle of Man Report

A crew manager’s view from Manx Ocean

R

egarding the effect of current geopolitical issues,

Technical Management Using digital solutions to enhance vessel maintenance planning and performance

Joanna Piotrowska

Manx Ocean Crewing confirm that the Red Sea crises has already impacted business.

“There are a number of factors you have to take into

account when employing crew on a vessel potentially going via High Risk Areas (HRA),” advises Joanna Piotrowska, Crewing Operations Director. “The crew may refuse to sail through HRA and therefore crew managers need to obtain their permission prior such engagement (if known).

“In this particular case, we have manned a newbuild dry

borders of Ukraine safely. We have also provided free of charge

cargo vessel from China, and had to work with owners to find

accommodation for seafarers, their families and guided them

a solution to send it around Africa to bring it into service to

where they could take refuge.”

Europe. That is impacting time and crew/ provision/ fuel costs

As regards the advantages of being based on the Isle

for the owners so it is becoming a complex issue for many

of Man, “as with everything you observe both pro’s and

companies trading between Far East and Europe.”

con’s” the Manx Ocean Crewing Operations Director

The ongoing Russian-Ukrainian war is definitely impacting

continues. “Being based in the Isle of Man, the corporate

many crew managers/owners directly or indirectly, she

zero tax regime for companies makes it competitive and a

continues, in terms of recruitment, people availability, crew

good reason why to locate your business here. However,

certification and licenses. Delays in renewal of the latter are still

there are also downsides of not being recognised as part

commonplace owing to the continuing effect of Covid times,

of the EU, which contributed to some owners being forced

while there is direct impact of the war in Ukraine.

to change to another flag registry in order to comply with

“Ukrainian men of age 18-60 years are not allowed to

EU requirements.”

leave the country,” Ms Piotrowska informs, “which is certainly

But the Isle of Man as a shipping hub is “very efficient and

impacting a lot of businesses as Ukraine was/is one of the few

versatile, as well as definitely noteworthy on the map,” she adds,

east European countries that has provided a substantial seafarer

providing “a good reason to bring businesses over here.”

By Troy Mitch, a founder of ContinuSys, provider of an Integrated Business Management System (IBMS) digital solution for business continuity

T

oday one of shipping companies’ top operational

levels, and environmental conditions for ship engines and

priorities is optimising vessel maintenance planning and

other machinery. With a continuous, near real-time supply of

performance. With many crews operating with minimal

operational data, modern systems can examine the health of a

manpower and on tight schedules, carrying out routine

system to detect trends and inform preventive and predictive

maintenance tasks can be tedious, time-consuming, and prone

maintenance decisions before problems arise. By using cloud-

to oversight and costly errors.

enabled solutions to monitor vessels, onboard machinery, and

Traditional practices typically involve using paper-based

other company-owned equipment, decision-makers back in

workforce over past 20 years. The new Ukrainian legislation of a

On the Novalis Group’s own recent achievements,

logs and spreadsheets to keep track of maintenance and

headquarters can also monitor the day-to-day operations of

strengthened military is going to make it even more difficult.

Joanna Piotrowska says the company is “very proud to

voyage planning tasks. Not only is this inherently inefficient – it

ships at sea.

be providing crew management for the first vessel (of

also leaves headquarters in the dark. Fortunately, cloud-based,

tremendous support to our Ukrainian crew and their families

four) of the Groot 5900XL type delivered by Jiangsu Dajin

mobile-enabled solutions have emerged as a way to manage

governance (ESG) has become a practical and financial necessity

from our side as well as directly from the owners’ side, whereby

Shipyard,” and looks forward to doing likewise for the

and mitigate these challenges. Three examples are:

in the shipping industry. The key to adopting a robust ESG

we have coordinated seafarers and their families from the

other three this year. l

“Since the war started, I can proudly say we have provided

Fleet Manager Capt. Christian Behrmann and Deputy Fleet Manager Marco Kayser at delivery of first Groot 5900XL design multipurpose newbuild m.v. Helgoland

Voyage planning, which is much quicker and easier when

strategy is having complete visibility into and control over your

you have all the above information in one place, rather than

company’s operations, both at sea and on the land. Easy access

having to wait for documents and data to be handed over

to data is what grants that visibility. For example, electronic

in person or sent via email. Integrated cloud-based software

checklists and report templates tailored to the unique demands

solutions enable that seamless accessibility and interoperability

of your business and its operational environment help improve

by granting shipping companies a single repository for all

visibility and advance accountability, all the while standardising

voyage planning information. At the same time, asset tracking

and expediting essential operations like equipment auditing

solutions make it easy to execute and monitor those plans once

and port inspections.

they’re put into motion, while granting headquarters complete visibility into this critical information.

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Advancing ESG policies. Environmental, social, and

When you have access to all this data by way of an integrated business management solution, you can take

Preventive maintenance. Today, thanks to improved

measurable steps to further your ESG initiatives, whether that’s

internet accessibility at sea and the greater viability of cloud

reducing fuel consumption with smarter voyage planning or

computing, vessels can now use connected monitoring systems

meeting the lofty demands of global ESG frameworks like the

for tracking things like operating temperatures, lubrication

Poseidon Principles for Marine Insurance. l 107 January/February 2024

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73

Emissions

Emissions How should shipping prepare for its EU ETS emissions trading debut in the year ahead?

By Jesper Sørensen, Head of Alternative Fuels & Carbon Markets, KPI OceanConnect

(EUAs), that are available to be

the EU ETS include the submission of

Adhering to EU ETS regulations is

traded. The price on carbon will mean

monitoring, reporting, and verification

essential. Operators that fail to comply

companies have to either pay for their

(MRV) data for all voyages that include

will not only face penalties, but also be

emissions using allowances, or develop

stops at EU ports from the start of this

required to obtain and surrender EUAs

robust decarbonisation strategies,

year, the setting up Union Registry

to account for their carbon emissions. In

implementing measures that substantially

accounts and the adaption of contracts

severe cases, vessels may be barred from

reduce them.

to agree responsibilities related to the

entering the EU entirely. Comprehensive

system. Timely provision of this data

preparation is key to developing a

the number of EUAs available in the

is imperative, with a deadline set for

successful strategy to navigate the

market by 4%, while introducing

March 2025 covering all voyages in

EU ETS and effectively adapt to the

additional steps in its strategy.

2024. The corresponding EUAs must be

changing regulatory environment.

Following full implementation of the

surrendered by September 2025.

Looking ahead, operators should direct

The EU plans to annually decrease

EU ETS, FuelEU Maritime will come

T

The process of setting up an EU ETS

their attention to crafting robust, long-

he European Union Emissions

into force, driving the shipping industry

Operator Holding Account (OHA) with

term fuel strategies. It can be helpful

Trading System (EU ETS)

to actively reduce the greenhouse

the Union Registry is a crucial element

to seek advice from knowledgeable

has now come into effect in

gas intensity of its fuels. Working

of operator compliance and may take

partners who can offer insights into

together, the European Union system

a few months to set up. When these

available fuel options.

shipping operators to either reduce

and regulations will help the shipping

first become available in February 2024,

the carbon emissions from their

industry to step up its efforts to reduce

it is anticipated that high demand will

Alternative Fuels and Carbon Markets

operations or pay for them.

GHG emissions related to voyages

lengthen the process. KPI OceanConnect

division continually monitors the

the shipping industry and compels

At KPI OceanConnect, our dedicated

in and out of EU ports, and tackle

recognises the need for a customised

alternative fuels market and stays abreast

has been tried and tested in other EU

decarbonisation globally. This aligns with

and adaptable approach to assist clients

of new supply projects and upcoming

sectors for over a decade – marks a

updates to the International Maritime

in navigating this evolving landscape.

regulations. We recognise our role in

pivotal step in a series of changes aimed

Organization’s (IMO) decarbonisation

When dealing with the various

assisting clients and supply partners in

at making shipping in the European Union

strategy, which mandates the industry

components of the EU ETS, shipping

navigating the EU ETS and its influence

more sustainable. Collaboration with

to reduce greenhouse gas emissions by

companies should consider what

on the market. As a leading marine

knowledgeable and experienced partners

55% by 2030, and by 100% by 2050.

expertise they need and assign specific

energy solutions provider, we extend

is essential for companies seeking a

As shipping’s regulatory landscape

roles to internal teams or departments

our expertise from the traditional marine

smooth transition through upcoming

continues to evolve, KPI OceanConnect

that will lead engagement with the

energy sector into this new era. As the

changes, guaranteeing regulatory

is prepared as a trusted partner to

system. Shipping companies must

EU ETS shapes the shipping industry, KPI

compliance, and actively shaping

help operators craft, implement and

amend existing contracts or draft new

OceanConnect stands ready as a trusted

impactful decarbonisation strategies.

execute fuel strategies, ensuring smooth

ones to explicitly outline each party’s

partner to help operators develop,

operations during this transition period.

responsibility. This clarity in allocating

implement, and execute strategies that

Most owners and operators are

accountability helps ensure that all

ensure thriving operations during this complex transition.

The advent of this regulation – which

The EU ETS took effect in January 2024 and works by putting a cap on the total number carbon

familiar with the requirements of

parties involved – whether the owner,

credits, known as EU Allowances

compliance, however, the increased

the management company, or charterer

• KPI OceanConnect is a leading

administrative burden on operators

- understand their roles and obligations

provider of high–quality marine fuels,

will necessitate a shift in thinking,

concerning emissions monitoring and

marine lubricants and expert advice

accompanied by the development of a

reporting within the EU ETS framework.

to the shipping industry. It was one

long-term plan to prepare for incoming

It also helps mitigate potential disputes

of the first marine brokerage firms

challenges. This will ensure that the

or confusion regarding responsibilities,

in the US and has been a trusted,

purchasing and surrendering of EUAs

ensuring smoother compliance

transparent, and innovative partner to

is conducted in the most efficient

processes and effective GHG emissions

shipowners and operators across the

manner possible. Initial requirements of

management within the shipping industry.

globe since 1971. l

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Ad Hoc

Ad Hoc

Ravi Mehrotra founds Institute at Boston University

Wallem ends anniversary year at historic venue

Veteran shipping-to-drilling owner and entrepreneur

so - when it was appointed to look after sisterships SS Chingtifu

Dr Ravi K. Mehrota CBE, Founder and Executive

and SS Tsinanfu, both working in the Chinese coastal coal trade.

Photos reach us of Wallem’s 120th anniversary event held back in December in the Shanghai Waldorf Astoria Long Bar -the scene of Haakon Wallem signing the original establishment document of the company back in 1903. Soon after Wallem moved into thirdpartly management – becoming one of the first companies to do

John-Kaare Aune is pictured hosting the event, culmination

Chairman of Foresisht Group, together with his wife and Foresight Deputy Chairman Mrs Manju Mehrotra,

of a series of anniversary celebrations held around the world in last year, at which he simultaneously bowed out as Wallem Group

once more hosted their annual Winter BBQ for some 350 privileged guests in late January.

CEO, John Rowley taking over as his successor.

An annual fixture on London’s social scene, the event was the 28th to be held in a specially erected marquee in the

Before his departure, Aune said It had been an honour being part of the Wallem Group. “We have improved client

garden of the Mehrotra family home, following a pandemic-induced hiatus of a few years. Expert catering was provided by

service levels, continued the digitalisation of the company services, and set the foundation for Wallem’s journey towards

the staff of a local Indian restaurant, extravagant centrepiece displays of fresh exotic fruits providing a nod to Foresight’s

decarbonisation.” He wished the Group and new CEO “every success in the years to come.” l

origins in the reefer business.

This year’s event was marked by the announcement of Dr and Mrs Mehrotra’s endowment of a new Ravi K. Mehrotra

Preserving marine biodiversity at Abu Dhabi’s Khalifa Port

Institute for Business, Markets, and Society (IBMS) at Boston University in the US. The Dean of the University’s Questrom School of Business, Susan Fournier [pictured, centre, in between Dr & Mrs Mehrotra] flew in for the event, in her speech paying tribute to the Mehrotra family’s generosity which she dubbed “a testament to your commitment to education, business, and societal betterment”. l

AD Ports Group, CMA CGM Group and Ecocean, an innovative company serving aquatic biodiversity, have signed a scientific cooperation

Shipowner woes aired at London Greek Vassilopita

framework agreement that will see the installation of 48 Biohuts at CMA CGM’s future terminal Khalifa Port that is currently under construction.

Designed to restore biodiversity and promote marine life in coastal and harbour areas, the Biohut module is a submerged structure that provides a safe and supportive habitat for marine life to thrive. The modules are specially designed to provide a refuge and breeding ground for a variety of marine species, including fish, crustaceans, and other marine life essential to the health of coastal ecosystems, particularly in environments where it has been disturbed or damaged by human activity.

CMA CGM Group has also long been involved in biodiversity protection and restoration projects around the world, particularly in the Middle East, including a coral reef restoration project in the United Arab Emirates. l

At the New Year ‘Vassilopita’ cake-cutting ceremony held by the London-based Greek shipping Co-operation Committee, Chairman Haralambos J. Fafalios (pictured, centre) lamented the litany of challenges being faced by shipowners.

Besides the Red Sea crisis and Ukraine conflict, as well as the Panama Canal water restrictions, “world shipping has been trying to adjust to a low carbon environment,” he said. “Few realistic solutions at all have been provided by the technology

Cyprus Shipping Chamber celebrates milestone anniversary

suppliers such as ship and engine builders and the energy suppliers who have still not given us a real low carbon fuel on a well-

The Cyprus Shipping Chamber (CSC) marked its 35th anniversary in late January,

to-wake basis. This is especially the case for tramp / bulk shipping.

hosting a special dinner at the Hilton Nicosia Hotel.

“The fuels that are being offered do not, at present, have a global bunkering network and in some cases are not proven to

Distinguished guests included H.E. the President of the Republic of Cyprus

be safe, especially for seafarers,” he continued. “So, it does the industry no good to add to its headaches with instruments such

Mr. Nikos Christodoulides, President of the House of Representatives Mrs Annita

as ETS, CII, EEXI, which do not in any way encourage a path towards green shipping.”

Demetriou, as well as other dignitaries and leading shipping figures from the island.

All of which led the GSCC Chairman to stress the need for Greece to have “more permanent representation at the EU and the IMO, in order to increase the understanding of the maritime industry.” l

CSC President Themis Papadopoulos, underlined the importance of continued and close collaboration between State and the CSC in fostering policies that will enable further sustainable growth for the national Shipping sector and the Cyprus economy and society.

A new CSC logo was also unveiled at the dinner, and a cheque for the €15,000 proceeds of a collection among CSC Members was presented by the CSC President to the ‘One Dream – One Wish’ Cypriot charity for children with cancer and related diseases. l

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AdHoc

Alternative Viewpoint Reducing emissions requires new thinking

By Dr Martin Stopford, leading maritime analyst and economist

T

he search for new technology

diesel engines for the bulk trades. This

to get shipping to zero carbon

produced significant economies of scale.

But the second, which went in the

has got investors scratching

their heads. The trouble is that

opposite direction, was faster speeds.

some of the new-tec looks a bit

After 1950 the speed of a big bulk

limp wristed. Green fuels might be

liner ships, especially containerships,

available for ship bunkers, but only in

increased from about 8-11 knots to

limited quantities (hard to be sure);

16-25 knots. This improved delivery

and bunker prices might be much

performance of the ships but pushed

higher (sounds likely). Small modular

up carbon emissions per ton mile.

nuclear reactors would be great for

So the emissions data shown by the red bars in the chart did not reduce

the big ships, but that’s a way off. years ago the reference ship was

but only if you can find a way to get

the Great Western paddle steamer,

These long trends have a

rid of the captivated carbon. It’s all a

built by Isambard Brunel. On her

message for us. From 1820 to

bit discouraging.

maiden voyage in 1838, she crossed

1920, carbon emissions in cargo

the Atlantic in 15 days, and used 655

transport fell dramatically and

trust in the industry’s ability to face

tons of coal (44 TPD). With a nominal

ship speeds remained under 10

up to these problems. In the past

cargo capacity of 500 tons, that gives

knots. But in the century from 1920

shipping has been very successful at

a carbon footprint of about 1,484 kg of

to 2020, much of the emissions

managing endlessly changing ship

CO2/ 000 cargo ton miles.

improvement obtained from bigger

But maybe we should have more

But technology was constantly

– the red bars show the astonishing

improving. Skip forward 80 years and

decline of CO2 emissions by

by 1920 the diesel engines were on the

Green fuel, with their high costs

(representative) ‘big ships’ between

way, making a massive difference. At a

and other limitations, could create

1837 and 2023. Over the two centuries,

stroke CO2 emissions were cut by some

a business framework more like

the maritime industry squeezed out

80% to 12 kg/000 ton miles and for good

the steam era, which favoured slow

more and more transport, with less

measure the diesel engine needed only

speeds. This is difficult because it

and less fossil fuels emissions. To put

10 engine room staff, compared with 21

means investors (and cargo) must

it into numbers, since 1837 the carbon

for a coal-fired steamship.

re-think the way the ships are used – especially speed, their size in every

occupied the next 100 years to 2020,

trade; hanging around, and the

1484 Kg CO2/000 ton miles to 9 Kg

and there were two dominant trends.

trade logistics. Maybe we are relying

CO2/000 ton miles.

The first was that by using the latest

too much on transport systems

welding technology, the shipbuilders

developed 50 years ago. If so, maybe

could cheaply fabricate big ships with

it’s time for a rethink? l

It was a long, tedious and often

Issue 107 January/February 2024

Putting diesel engines to work

emissions stopped declining.

ship’ has been reduced by 99.4%, from

expensive process. Two hundred

Ship Management International

ships was offset by faster speeds. So

technology. Figure 1 tells the story

emissions of a representative ‘big

78

greatly between 1920 and 2022.

And carbon capture is captivating,

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Analysis

Analysis Geopolitics to rule tanker market for the foreseeable future

POTEN

existing fleet. As of 1 January, 2024 the VLCC orderbook stood at 23 vessels or 2.6% of the trading fleet. This compared to 9.9% for Suezmaxes and 12.7% for Aframaxes/LR2s.

There are a number of reasons for this: VLCC earnings collapse after the initial pandemic/floating storage spike

In this Market Report, SMI looks at the crude tanker market in which geopolitics seems to be playing an increasing role. By Ian Cochran

of 2020 and were dismal during 2021.

Unlike the Suezmaxes and Aframaxes, VLCCs did not get a major boost from the trade flow dislocations after the Russian invasion of Ukraine in 2022.

the ‘dark fleet’ will start to be phased

The current Red Sea crisis also has

Russian invasion of Ukraine. With the

out. Data from Lloyd’s List Intelligence

far less impact on VLCCs than on smaller

conflict between Israel and Hamas,

showed that only 14 tankers (>10,000

tankers thus far. However, Poten believes

which has reignited tensions in the

dwt) were recycled last year, down from

that this situation will change this year.

Middle East and the aforementioned

57 in 2022 and 95 in 2021 - the lowest

VLCCs continue to be the most

involvement of the Houthi rebels and

level for at least 20 years

economical size to move crude oil over

their campaign to disrupt commercial

The fleet has also been getting

long distances and rates made a strong

shipping, this has further raised the

older. Since 2019, the average age of the

J

the tanker market have been

McKnight Hardy said that while a

recovery in 2023. In addition, fewer

risk of escalation in the region, Poten

fleet has increased by four years (from

changed somewhat by events

lot of focus has been on container

containership and LNG carrier orders

expects tensions to remain high this year.

9.1 in January, 2019 to 13.1 currently).

at the southern end of the Red

traffic being diverted via South

recently have opened up shipyard slots -

Sea, which have seen Yemen-based

Africa, the numbers of tankers

albeit mostly for 2027 and beyond.

Houthi rebels start to attack passing

using this route had increased by

shipping in and around the Bab al-

about 65%.

ust recently, the dynamics in

MIS Marine’s Dominic

Mandab Strait.

Once a few high-profile owners take

BANCHERO COSTA

Although VLCCs are not affected

A VLCC burns about 100 tonnes

that much, as they normally sail via the

On top of these ongoing conflicts,

With limited deliveries scheduled over

elections in Taiwan have raised tensions

the next two years, the fleet will likely

in the South China Sea. Several major

become even older.

democracies are also going to the

will follow. And, as a result, the VLCC

polls. General elections in the US, India,

recycling is the premium valuations

orderbook will more than double this

Mexico and Venezuela all have the

on older vessels. It was much more

year, Poten predicts.

potential to change the geopolitical

profitable for owners to sell vessels for

landscape.

further trading (mostly into the ‘dark

per day at 15 knots. At this speed,

West to East or vice versa, Suezmaxes

sailing around Cape will add around

dominate the tanker market in 2024

As for the fleet, tanker recycling

and Aframaxes that regularly use the

14 days to the voyage with the vessel

having been a major factor driving

will pick up in 2024, as some vessels in

Red Sea/Suez Canal route are.

needing an additional 1,400 tonnes of fuel. At $600 per tonne for VLSFO that equates to an extra $840,000.

Research, the extra cost of diverting

Meanwhile, in January Poten &

a tanker from Asia to northwest Europe via South Africa is $932,905 BANCHERO COSTA

per voyage. This is primarily due

The main reason for the dearth in

the plunge and order vessels, more

Cape of Good Hope when travelling

According to LSEG Shipping

80

volatility in the tanker market since the

Geopolitics look set once more to

POTEN

fleet’) than to recycle them.

This is expected to change this year, as EU scrutiny on secondhand sales, as part of a new set of sanctions on Russia, could make owners more reluctant to sell ships to unknown

Partners revealed its predicted key

buyers. However, more importantly,

tanker market developments for 2024.

Poten thinks that the ‘dark fleet’ has

Starting with VLCCs, newbuilding

reached a level where it is big enough

to the increased transit time from

If the crisis in the Red Sea lasts

the normal 16 days to about 32,

for months, as seems increasingly

orders will take off this year. For

depending on the speed of the

likely, not only will it have a significant

several years, the VLCC orderbook

As a result, tanker recycling is

ship, which adds extra fuel. LSEG

impact on fuel costs, but also on CO2

has been the lowest of all the major

expected to reach at least 50 vessels

calculated that this increases

emissions - the cost of carbon as part

tanker segments and near historical

this year. l

Aframax voyage costs by 110%.

of EU ETS, he said.

lows in terms of percentage of the

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Issue 107 January/February 2024

to service the sanctioned trades.

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Technical

Evaluating the engine retrofit option

By David Tinsley

D

ecarbonising the existing fleet is a vital element in the

must consider when evaluating and implementing fuel-

shipping community’s quest to reduce greenhouse

based conversions. It also points to the requirement posed

gas (GHG) emissions. Without substantial progress,

by such technically intricate projects for new skills in naval

there could still be as many as 20,000 merchant vessels relying on fossil fuels by 2050, putting the chances of achieving netzero emissions from the industry at risk.

architecture, electrical engineering and fuel handling.

In assessing industry readiness for the adoption of alternative fuels by ships already in service, the report

A new publication from Lloyd’s Register (LR), analysing

focuses on methanol and ammonia. It includes updates on

the practicalities, technology and business case for engine

the latest pertinent technology from original equipment

retrofits on existing ships, contends that a shortage of repair

manufacturers (OEMs) and licensors, notably Wartsila, MAN

yards with experience in conversions could compromise the

Energy Solutions, and Winterthur Gas & Diesel (WinGD).

use and pace of retrofitting as an effective tool for realising the decarbonisation process.

Entitled the Engine Retrofit Report 2023, and intended

LR’s observations and recommendations are predicated on the view that the maritime energy transition might be accelerated significantly through retrofitting. Dual-fuel retrofits

as an annually updated guide, the study tracks the state of

represent a practical step that can be taken on the path to

engine retrofit demand, capacity, and uptake, exploring the

decarbonisation while enabling shipowners to maintain asset

technical, economic and regulatory aspects that shipowners

values and obviate the need to build additional tonnage.

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83

Technical

Technical

solutions for medium-speed marine engines. The focus of the three-year project, entitled Climate Neutral Retrofit Engine Concepts(CliNeREco), is a retrofit-capable combustion process using climate-neutral methanol produced from ‘green’ hydrogen.

Funded by the German Federal Ministry for Economic Affairs and Climate Action(BMWK), CliNeR-Eco partners MAN with energy conversion specialist WTZ Rosslau and the Technical University of Darmstadt. A model of 48/60 diesel from the MAN four-stroke portfolio will be retrofitted to serve as a test engine during 2024.

Rasheeda project, but primarily through newbuild

limited. Consequently, the shiprepair

The Danish group’s initiative has

uncertain, a maximum addressable market of 9,000 to

installations rather than retrofits. The containership sector

sector’s exposure to such vessels is

been closely followed by a potentially

12,900 large merchant ships for such conversions has been

has led the maritime energy transition, whereby increasing

correspondingly limited, placing a

extensive programme entailing the

project, the Augsburg-based engine

identified by LR up to 2030. Key factors influencing the

numbers of newbuilds have been specified from the outset

constraint on the number of repair yards

adaptation of some of the largest

producer signed an agreement with

size of the market and the timing of retrofits include the

with dual-fuel engines, initially for LNG firing but more

with the experience and skills to carry

Chinese boxships for operation on

Alfa Laval to develop a methanol fuel

date by which the shipping industry begins building only

recently with the accent on methanol.

out alternative fuel retrofit schemes.

methanol. The opening order awarded

supply system for four-stroke retrofits. As

While fuel cost/availability and regulatory drivers remain

Following its ascription to the R&D

zero-emission vessels, as well as the age at which owners or

The LNG retrofit option has lost ground in terms of

LR’s modelling identified just 16

by COSCO Heavy Industry Shanghai

a consequence, it is anticipated that the

operators decide to retrofit vessels, and the availability of

market interest due to the rising cost of LNG relative to fuel

shipyards as being truly capable of

Co to MAN Energy Solutions calls for

first engines will be capable of conversion

suitable engine conversion packages. Nonetheless, realising

oil and because of its GHG emissions profile and the issue

performing fuel conversions. The select

the conversion of single-fuel, S90-type

to methanol operation from 2025.

even a fraction of this potential market will necessitate new

of methane slip. However, the future availability of LNG as

group’s combined capacity would

low-speed engines to methanol dual-

Wartsila’s Fit4Fuels innovation

capabilities and technologies on the part of ship designers,

an e-fuel or derived from biomass could provide a net-zero

equate to around 300 such conversions

fuel versions in four vessels, spanning

is a retrofit technology platform for

shipyards and operators.

or near-zero carbon equivalent that may be used in existing

per annum, well short of the requisite,

13,800TEU and 20,000TEU sizes. The

converting two-stroke diesels to run on

LNG engines.

global capability to effect the

contract includes options covering

alternative or future fuels. The hybrid

While engine technological readiness is a crucial factor

LR draws attention to the challenge of installing LNG

transformation of the existing fleet in

retrofits to a further nine vessels in the

combustion concept is designed to

issue lies in integrating the wider fuel system and related

fuel systems on existing merchant vessels, which cannot

line with energy transition imperatives.

20,000TEU category.

maintain engine power density and

supporting systems onto existing vessels. Significant issues

necessarily be regarded as a straightforward process. It cites

As with the Maersk programme,

eliminate fuel slip, extending a ship’s

such as space availability for more or larger fuel tanks and

the case of a large container vessel that had been classed

technological innovation and adoption

MAN will deliver a package service for

carbon intensity index (CII) by up to

fuel preparation equipment, and ensuring safety measures

as LNG-ready, but which was off-hire for nine months for

within the liner shipping sector, A.P.

the COSCO conversions, comprising

five years and affording a breathing

are in place, provide obstacles to rapidly retrofitting the

the retrofit work, estimated to have cost $35 million. The

Moller - Maersk launched a plan

engineering, parts, project management,

space while uncertainties as to fuel

existing fossil fuel fleet.

society accordingly warns that class ‘ready’ notations or

in 2013 to retrofit 11 container to

technical assistance at the yard and

availability and cost prevail. The system

descriptive notes should not in isolation be taken to infer

methanol dual-fuel operation. In each

during sea trials, and re-certification.

offers either a conventional fuel to

that a conversion will be simple.

case, the scheme entails conversion of

MAN has implemented R&D and

LNG and then on to ammonia pathway,

the potent G95-series MAN two-stroke

invested in a testbed dedicated to the

or a conventional fuel to methanol or ammonia pathway.

in ship conversions for low- or zero-emission fuels, the larger

Techno-economic modelling data in the study shows that the use of renewable methanol or ammonia would substantially increase fuel costs, in some cases more than

Finding space for extra fuel tanks while limiting the

Long in the vanguard of

doubling for vessels in all segments. On the other hand,

loss of cargo carrying capacity is a particular design

diesel to LGIM (liquid gas injection—

S90-LGIM solution, and believes that the

the balance could be tipped in favour of alternative fuels in

issue for retrofits to many types of vessel. Fuels such as

methanol) format allowing methanol

Chinese scheme will spur wider industry

Although Wartsila no longer

a low-cost scenario where the latter decrease in price and

methanol and ammonia require even more tank volume

firing. The first ship in the programme,

uptake of the specific retrofit option. “We

designs low-speed engines, it remains

hydrocarbon fuels become more expensive.

than LNG, necessitating an exacting design appraisal to

the 15,280TEU, 2017-built Maersk

are in the early days of a huge wave of

the global service provider for WinGD’s

avoid sacrifices in cargo capacity. However, an advantage

Halifax, is scheduled to undergo work

dual-fuel retrofits and see many concrete

legacy Sulzer and Wartsila two-stroke

considerations. Working on a vessel operating on alternative

of methanol is that it can be stored in liquid form in

at Zhoushan Xinya Shipbuilding Co in

projects coming on-line with the capacity

brands, and the retrofit solution

fuels can entail new risks and necessitates training in specific

tanks made from stainless steel or mild steel coated

China during mid 2024. Besides the

to meet shipping’s demand for green

is applicable to all electronically

handling procedures and equipment maintenance.

with zinc silicate. This means that suitably located, IGF

engine modifications, the pioneering

fuels, such as e-methanol and bioLNG,”

controlled models in that portfolio.

Code-compliant tanks on existing vessels can be used if

installation will feature Alfa Laval’s

said Michael Petersen, the company’s

In the four-stroke stakes, Wartsila has

thoroughly cleaned and coated.

LR also highlights the importance of human factor

Retrofit solutions for converting to LNG firing have

low-flashpoint fuel supply system FCM

senior vice president and head of after-

been in the forefront of future fuel retrofits,

Rasheeda had her MAN main engines adapted in 2015. In

Notwithstanding the surge in the nomination of dual-

Methanol, a dedicated fuel line for

sales brand PrimeServ Denmark.

having delivered its first methanol engine

fact, dual-fuel retrofits were initially centred on converting

fuel installations for many categories of newbuild tonnage,

methanol alongside the existing fuel

The organisation has thrown its

conversion in 2015 to the Sulzer ZA40-

the engines of energy carriers to run on cargo fuel.

the number of existing ships capable of operating on

oil line, fuel preparation room and new

weight behind a new German research

series medium-speed powered ro-pax

alternative fuels, as a proportion of the global, is still very

fuel tanks.

endeavour to develop methanol retrofit

ferry Stena Germanica. l

existed for nearly a decade since the Nakilat LNG carrier

The uptake of LNG has grown rapidly since the

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85

Decarbonisation

Decarbonisation

Simplying emissions compliance As the maritime industry finds itself at a critical juncture between the challenges of stringent emission regulations and rising costs, Ben Richardson, CEO at SulNOx, highlights the importance of gaining ground with easy wins on vessel efficiency and emissions reductions.

payback periods lengthen, capital sums

percentage points from a ship’s fuel

machinery without sacrificing the

involved increase, and various market and

consumption and comes with their

commitment to decarbonisation. Our

operational risks bleed into the equation.

own considerations.

drop-in conditioners come without the

Owners and suppliers can be left with a

From a technology deployment

need to rip out old machinery, piping and

great solution on the wrong side of a tall

perspective, the disruption to ship

tanks to accommodate drastic changes in

financial hurdle.

operations and the delay before

energy density, handling requirements or

For low capex solutions, that hurdle

efficiencies are felt vary greatly between

novel chemical hazards. Furthermore, the

is diminished. Our own fuel conditioners

solutions. A shipowner making a decision

mixture of vessel fuel and SulNOxEco will

cut the burden on the shipowner and

to invest in greater fuel efficiency may

remain stable in the fuel tank for months

the risk involved in adopting our fuel

wait mere weeks for technicians to install

on end, ensuring a simpler, cost-effective

conditioners by lowering the investment

sensors and computer hardware, months

and streamlined path to adoption and

amount and removing any long-term

for fabrication of large assemblies, or

emission compliance that is readily

repayment obligation.

years if significant retrofit work is to be

available in the market today.

For any carbon-cutting technology,

scheduled at dry dock. The demand for

For operators who have found

laboratory data and trial data are critical

greater efficiency is immediate, but the

themselves faced with the prospect

in making an investment decision. We are

operational reality may not align.

of widespread retraining of seafarers

proud to show a 6.4% reduction in VLSFO

Tight regulatory deadlines do not

and extensive reconfiguration of

consumption in a recent three-month trial on

leave much room for delay, be it in the

vessel layouts and engine rooms to

a Marfin two-stroke ultramax bulk carrier, as

initial adoption of a solution, or any

accommodate some future fuels, the

well as an over 5% reduction in a five-month

continued support and consumables

appeal of a drop-in fuel conditioner is

marine diesel trial conducted in partnership

required. Conscious of that urgency,

clear — especially for those with vessels

with a Hamburg-based shipping company

SulNOx’s biodegradable fuel

already on the water. For some, a lack of

(independently verified by a Northern

conditioners are ready to drop in at

familiarity with a product or technology

German university). Marfin has additionally

delivery and our manufacturer Nouryon

can form an additional barrier to

committed to expanding its trial up to

(formerly AkzoNobel) stands ready to

uptake, hindering the progress towards

six vessels - a vote of confidence shows

increase output to meet increasing

decarbonisation. However, with SulNOx,

the value of an easy to adopt, no-capex

demand as trials turn to full fleet

ith a push for cleaner and

economic implications of substantial

SulNOxEco, which can be added to

ease of adoption is key, as vessels

approach, and how one ship can act as the

deployments, ensuring owners are not

more sustainable maritime

capital investments, operational

a wide range of existing marine fuels,

and their crew can continue to run as

pioneer for a whole fleet.

left waiting for the next barrel.

operations at the forefront

disruptions, and comprehensive

including marine diesel and gas oil

contracted, ensuring no disruption to the

That said, the only data that really

of the IMO’s agenda for the coming

training programs for onboard

(MDO/MGO), very low and heavy

global supply chain while advancing our

matters to a shipowner is that of their

decades, stakeholders in shipping may

personnel. These factors make the

sulphur fuel oil (VLSFO/HSFO), and

shared goals for a greener industry en

own vessels. Our cost-reducing product,

often find themselves caught between

journey towards compliance an intricate

increasingly importantly, biofuels. The

route to net zero.

with proven results, significantly lowers

improvements in every corner of ship

the dual imperatives of environmental

and costly one, with tremendous

conditioner provides additional oxygen

the risk of finding out for yourself.

operations, it is of paramount importance

responsibility and economic viability.

potential for missteps.

and improved combustion, resulting

W

But there are simpler ways to meet

Any solution will need to strike a

in a cleaner burn that produces more

Time and money Payback periods can be frustrating

Sustainable growth As we hunt for efficiency

that the solutions adopted are compatible

Getting the timing right

with one another. Investment decisions

delicate balance between these

these requirements with fewer risks

energy and significantly less particulate

for vessel owners and technology

two factors if it is to be a long-term

involved — allowing ship operators to

matter for the same amount of power

providers alike, particularly when large

in place can be frustrated in their

more straightforward when technologies

sustainable solution for the industry.

take an immediate step towards greener

generation. The conditioners not

capital investments are involved. While

quest to start cutting expenses and

provide a cumulative improvement

operations and reduced emissions.

only improve combustion efficiency

technologies that improve vessel efficiency

saving the environment by deploying

rather than forcing a choice between one

but also fuel lubricity, and clean away

save owners/operators money by reducing

efficiency technologies. Weather

approach and another.

deposits on injectors and pistons —

their bunker costs - often yielding enough

routing, hull design, hull coatings,

By focusing on the efficiency of power

improving engine health and reducing

fuel savings to pay for the investment in

ducts, optimised propellers, wind

generation, SulNOx’s fuel conditioners are

maintenance costs.

At this time, our global fleet is almost entirely powered by fossil fuels and facing a set of increasingly punitive sanctions for failing to curb greenhouse

86

bunkering infrastructure and onboard

Speeding the process A better fuel burn is the most direct

Even a shipowner with finances

and reducing ships’ emissions are all

gas (GHG) emissions in the near term.

route to a reduction in emissions and

the long term, this is a delicate balance.

power, electronically controlled

compatible with a wide range of products

But without clear leaders on new fuels

also brings cost advantages. We have

Stakeholders across the board

What seems like a sure-fire investment

engine loads - the list of fuel saving

focused on power usage — making

and clean technologies, ship owners

taken this approach with our all-natural,

immediately reap benefits as they can

that a company could take to any bank or

technologies in the maritime sector

shipping’s journey to decarbonisation not

and operators are grappling with the

fully biodegradable fuel conditioner,

extend the viable operating life of

financier becomes less appealing as those

goes on, each shaving valuable

just simpler, but also possible today. l

Ship Management International

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87

Clean Seas

Clean Seas Holistic solution for hull cleaning

in port by a subsea Remote Operated Vehicle (ROV) that

a maximum cleaning capacity of 3,000 square metres per

‘carries’ a robotic cleaning unit. The battery driven ROV

hour. “Our goal is to clean a 400-metre container vessel

is equipped with 10 separate thrusters that keep the unit

in under 12 hours,” says Østervold.

firmly in place as it transverses the hull.

Fouling is a persistent global problem. According to Tor Østervold, CEO of Norway-based ECOsubsea, sustainable hull cleaning that effectively deals with the intertwined issues of climate change, invasive species and local pollution is the best solution.

Also, the ECOsubsea filtration system is claimed to

The ROV is supplied with power as well as water

be the most advanced on the market. The company

for the cleaning system from a mobile quayside control

has collected data from the 1,000 ships it has cleaned

station mounted on a truck trailer. The cables and

and 100,000 kg of fouling treated since 2012, for clients

hoses are bundled together to form a flexible umbilical

such as Wilhelmsen Ships Service – with which it has a

around 150 metres long, enabling the system to clean

strategic partnership - Carnival UK and BP Shipping –

a 300-metre-long vessel if the station is positioned

which is “why we have licenses to operate in some of

midships. “We can of course clean larger ships simply by

Europe’s strictest ports,” adds the CEO.

moving the station along the quayside. The ROV can also

The cost of ECOsubsea’s service naturally depends

be deployed from a barge, if necessary,” says Østervold.

on the size of the vessel, amount of fouling, location

t is estimated that around five million kg of fouling is

was commonly used in hull antifouling paints and coatings

The mobile station is self-supplied with power

of the clean and use of a barge if required. Although

carried on the hulls of internationally trading vessels

until it was banned in 2008, and another toxin, cybutryne,

from an integrated generator but can alternatively be

sustainable hull cleaning has been expensive, the

every year. “At a time when the IMO has just revised its

was banned at the start of 2023, both reducing the efficacy

supplied with electricity from outlets on the quayside.

company is currently in expansion mode and by scaling

emissions reduction goal to net zero by or around 2050,

of coatings and propelling fouling rates. Meanwhile, hull

It also houses a control room, workshop, hangar for

up aims to make its service both affordable and widely

pressure on the industry is even greater to cut carbon

paints and coating systems also still contain heavy metals

the ROV, winch/drum for the umbilical, switch board,

available. “Ships should ideally be cleaned more

footprint wherever possible. Getting rid of fouling is low-

and other chemical compounds and are moreover a

a crane for launch and recovery and, of course, the

frequently for a smaller percentage saving but avoiding

hanging fruit and can reduce both costs and emissions by

source of microplastics pollution. This is exacerbated by

effluent filtration system. Being self-powered it is easy to

the hidden loss over time,” adds Østervold.

up to 15-20%,” says Østervold, especially important now

conventional cleaning methods using divers and brushes

transport the station to where it is needed; this makes

the EU ETS (Emissions Trading System) has kicked in and

and high-pressure jets, with zero or low collection and

the solution very scalable.

extra CO2 emissions will have to be paid for.

capture of waste material,” says Østervold.

I

The system ‘pilot’ sits in the control room from

As part of its service ECOsubsea also provides a biofouling monitoring, as well as a Biofouling Passport, an online platform that provides a fleet overview to

Hull fouling is also suspected to be the largest vector

“Although I acknowledge that conventional hull

where he/she can manoeuvre the submerged ROV

ensure compliance. This can track each vessel’s fouling

for the transportation of marine invasive species between

cleaning makes ships more efficient, it does nothing for

and steer/monitor the cleaning unit guided by its eight

factor and fuel performance, and determine which ships

geographies – which is a serious problem given that one-

pollution. This is very under-communicated in the industry.

cameras. A technician on the dock keeps an eye on the

have high or low biofouling risk, also allowing data to be

eighth of the world’s fauna is currently threatened with

We have to name the problem to solve the problem.

ROV ensuring the umbilical can run freely. The robotic

shared with regulators and ports – likely to become an

extinction. The impacts of these organisms are under-

Sustainable hull cleaning with full collection and capture is

cleaner uses Soft Jets for non-abrasive cleaning (the jets

increasing necessity as clean sea regulations tighten in

reported and still not well understood, so the global

the only effective method that addresses all three angles -

are 1/10th of the pressure of traditional high-pressure

ports around the world. l

impact on coastal biodiversity and economies is likely to be

climate change, invasive species and local pollution.”

cleaning jets used in drydocks which can impact the hull coating) leaving the antifouling coating unharmed.

even greater that current estimates. The situation has led countries like New Zealand to impose regulations requiring all ships to provide evidence of biofouling management prior to arrival and denying entry to ‘dirty’ ships.

Also to be noted is that the biocide tributytin (TBT)

ECOSUBSEA SYSTEM The Norwegian company’s closed-loop solution has

Onboard the ROV is a powerful suction pump that ‘hoovers up’ all the material removed from the hull and

taken 15 years to develop and perfect and is covered by 50

sends it topside for processing -- up to 1,000 kg per

patent families. Hull cleaning is performed while vessels are

cleaning. The filtering system is staged; the first is a settling tank to catch the largest bio-components such as barnacles, with the remaining biomass fed through increasingly small filters (up to six sizes with additional microfiltration if required), leaving the effluent clean and

Remotely operated robotic hull cleaner at work sending fouling material to the quayside via an umbilical where it undergoes extensive filtration (Photo: ECOsubsea)

free of biofouling. The system thus ensures complete environmental compliance.

ECOsubsea is currently working on a new unit that will be even more effective, with the ability to clean a ship four times faster than has previously been possible.

Currently, a typical cleaning takes eight to 10 hours, with

88

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Issue 107 January/February 2024

Mobile control station alongside NCL’s 2022-built cruise ship Norwegian Prima in the Port of Southampton

107 January/February 2024

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89

Objects of Desire

Objects of Desire » Wear it smart

» The world’s first Hyperfoil

Stay connected in style, and charge through your day with this

A Hyperfoil is a high-performance electric hydrofoiling vehicle with wings

Zegna smart jacket taking clothing to the next level! It’s Smart

to fly above the water. Like a jetski, it has an active stability system using

and high-performance and enables you to charge your day with

Skyride flight control software. Combined, this creates a craft with precise

Power+ and means your phone, powerpack and other items can

balance and agility and means you can fly like a pro. All you need to

be charged conveniently and on the go. The transmitter, USB

do is hit the throttle and feel your stomach drop as you rise above the

cable and power bank must be removed before washing the

water and accelerate from 0 to 45 mph in 8 seconds. Slice through waves

garment or having it dry cleaned.

without a splash and carve tight turns effortlessly. The Valo Hyperfoil harnesses the best of aerospace, motorsport and America’s Cup racing

Technical Fabric Overjacket

technology to create this revolutionary weightless, flying experience.

$1935 zegna.com

Valo Hyperfoil

$59000 ridevalo.com

» Electric joy Its mission is to catalyze the move towards

» Ultra low-light vision

carbon free motoring and it’s the reason why Acrimoto has introduced the all-new

An ultra-low-light marine navigational camera, SIONYX is built around the

Roadster, designed to be the ultimate open-

company’s patented Black Silicon CMOS sensor. It allows mariners of all levels

road fun machine. Featuring dual-motor

to easily spot obstacles and debris in moonless starlight without white light

front-wheel drive, instant torque, and a fully

or expensive thermal cameras – navigating safely, avoiding collisions, and

connected seating stance, it’s possibly the

maximizing time on the water. IP67-rated, it’s built to operate in the toughest

purest expression of the Arcimoto Platform

marine environments. Nightwave’s flexible mounting and video streaming

as it’s designed to be the best! See the full

setups allow both seamless integration with major brand MFDs and the option

range online and get ready to be amazed.

to view live video on your mobile device, so you can navigate confidently in the dark from any vessel with clear colour digital night vision.

Roadster

$23,900 arcimoto.com

SIONYX Night Vision

$250.00 sionyx.com

» Motion corkscrew

» Blinding speakers High-end active loudspeaker blending radical audio

Brought together in the Up & Down set, these two sommelier tools are

technology with graceful aesthetics and meticulous

the key to mastering every last step of a serious wine tasting. From the

craftsmanship. A loudspeaker that exceeds expec-

bottom to the top, the Oeno Motion Leather&Silver ® lever corkscrew

tations time and time again. Finely tuned to provide

starts the ball rolling with a powerful mechanism that excels in the

balanced, rich audio whether listening to music or

art of extraction. The Bubble Cork Silver ® preservation stopper then

watching a movie. Prepare for exceptional perfor-

draws the ceremony to a beautiful close. The stopper maintains the full

mances of music and cinematic soundscapes, pow-

effervescence of your favourite champagnes and sparkling wines so all

ered by patented Bang & Olufsen technology.

the better to enjoy the next day.

BEOLAB 50

Up & Down

£41,650 bang-olufsen.com

90

Ship Management International

€208.00 atelierduvin.com

Issue 107 January/February 2024

107 January/February 2024

Ship Management International

91

books, theatre, dining, events, culture, films, festival, music, art, dvd, wine

Review Pulling Together, The Making of a Global Maritime Trade Union

Andrew Linington, Foreword by Stephen Cotton, General Secretary of the International Transport Workers’ Federation (ITF)

Saint Peter 362 Oxford St, Paddington, Sydney saintpeter.com.au

Ship masters and officers may not seem like pioneers of trade unionism. However, this history of their unique union, Nautilus International, shows how they have been pitched into the forefront of a long struggle for decent jobs, fair pay and conditions, employment rights, and health and safety – all in an international industry marked by savage and cut-throat competition. This book traces the evolution of today’s organisation from its roots in the Victorian-era expansion of

Holi Festival – India

status and professionalism of its seafarers. It tells

According to experts, Chef Josh

24-25 March 2024

how unions have overcome problems of piracy,

Niland has transformed the way

criminalisation, substandard ships, excessive

we cook, transport, age and store

As the most popular festivals of colours and the celebration of Holi in India, it will paint your adventure into springtime.

work hours and threats of being replaced, not to mention the battle against

fish. His ethical, sustainable and

Embark on an unforgettable journey as people from all walks of life gather to partake in this excitement. Embrace the

government indifference and public ignorance of an industry that is essential

revolutionary approach has received

spirit of unity while coloured water is playfully thrown at each other, breaking barriers and blurring boundaries. Dance

for an island nation. Priced £19.99, hardback.

global recognition. Fellow chefs,

to traditional music, feast on delectable sweets and let loose in the infectious laughter and joy that flows through the

marine experts, seafood companies

air. Holi is a symbol of the victory of good over evil and the importance of unity and inclusiveness that will leave you

and fishmongers have applauded

with lasting memories. Free, at various locations in India (Udaipur, Rajasthan, Mumbai, etc.)

Natural History Museum South Kensington, London SW7 5BD, England

92

the merchant fleet and the moves to raise the

Summer Night Concert Front of Schönbrunn Palace, Vienna & June 2024

and embraced his new philosophy.

A multi-award-winning chef, he is also a restaurateur and author. In 2016, at aged twenty-seven, Josh

Music in the garden takes on another

and wife Julie opened Saint Peter,

dimension in the Viennese summer.

a small fish restaurant in a Sydney

The music is a live performance by

suburb, Paddington. Introducing

A research institution and museum showcasing the

the Vienna Philharmonic Orchestra;

whole fish cookery, Saint Peter, an

wonders of the natural world, a visit to the Natural

the garden is the landscaped park of

Australian Fish Eatery was a highly

History Museum is a must for getting a picture with

Schönbrunn Palace, a UNESCO World

risky venture. But together on a

Dippy the Diplodocus, London’s most popular dinosaur.

Heritage site which welcomes you to the

small budget, the couple managed

The Natural History Museum is the place for dino lovers

annual Summer Night Concert. Free, the

to create a bustling neighbourhood

from everywhere, although there is much more to the

open-air Sommernachts konzert in the

favourite. Within its first year, the

museum than ginormous skeletons. The taxidermy is

palace grounds allows you to relish in

restaurant achieved significant

incredible, while the inquisitive approach to the wider

the classical music programme with a

global interest. Not to be missed

universe will make science geeks out of hardened

world-class conductor and soloist(s).

when in town. Open for a la carte

cynics. Research continues here, making it a living

Be aware that the park closes if it reaches

lunch and dinner. From $125 per

museum of thought and curiosity.

capacity so do travel early!

person. Book online.

Ship Management International

Issue 107 January/February 2024

107 January/February 2024

Ship Management International

93

Lifestyle

Lifestyle Holidays extraordinaire: the road less travelled

By Margie Collins

A

The wreck of Titanic - object of dives and tours - which split into two as it sank on 14 April 1912 - was discovered in 1985 during an expedition led by oceanographer Robert

grappling with a growing justice and reform movement and questions about exploitation and voyeurism.”

The Hotel La Prison in Beziers, France, opened last year

Ballard. “It lies in total darkness more than two miles

as a renovated luxury hotel. Missouri State Penitentiary

below the surface of the North Atlantic,” wrote Graham

in Jefferson City encourages tourists to take photos of its

Paton in The Times. “To get to it sightseers must endure

old gas chamber where 40 inmates died. Robben Island

a voyage over treacherous waters, followed by a five-hour

Prison, where Nelson Mandela spent 27 years, attracts over

dive to the sea bed in a cramped submersible.” On 18

50,000 tourists a year. “Most tourists want to learn a bit of

s temperatures plunge to sub-zero and snow

are currently for sale – secluded places that have not yet

June last year at about 105 minutes into a descent towards

history, the conditions in which historical prisoners were

flurries blur a weak winter moon, fat holiday

been loved to death.

Titanic, the 22ft submersible Titan imploded and stopped

incarcerated for unjust reasons,” wrote Andrew Wein in

communicating with its mother ship, instantly killing the

Tourism Review.

brochures land in post-boxes with a pleasing thud,

Sleep tourism, said Conde Nast Traveller, is the travel

While penitentiary tourism smacks of morbid curiosity,

luring us with bouquets of clichés and promises. Do we

trend we’ve all been waiting for - part of the trillion-dollar

really want to see another Disneyfied temple? Engage

wellness tourism industry fuelled by people who prioritise

“I think the wreck should be treated as the grave site

in dawn towel-wars to bag a sunbed by the hotel pool?

their wellbeing. You go on holiday to get quality, restorative

that it is,” said William JV Neill, former emeritus professor

being managed by luxury hotel groups – notably the Four

Watch a stampede of rolling suitcases as anti-tourism

sleep. Working with hypnotherapists and sleep clinicians

at Aberdeen University. “To take tours cheapens it and

Seasons Sultanahmet in Istanbul, a jail from 1919 to 1969,

activists snarl at new arrivals shouting “Airbnb dehors!”?

who prescribe treatments to the sleep-deprived and burnt-

ties in with this deeper trend in disaster tourism. I think we

which housed some well-known people including artists,

Some tourist destinations have become less hospitable

out, luxury hotels and resorts offer programmes focused on

should let those souls rest in peace.”

writers and political leaders.

especially during the sweaty months of summer. Nebraska

getting a good and rebalancing shut-eye. Hastens, Swedish

– one of American states people do want to visit – ran a

maker of some of the most expensive mattresses in the

travellers who visit gruesome locations associated with

programmes are led by journalists, diplomats and political

passive-aggressive ad campaign: “Nebraska: Honestly, it’s

world, opened a sleep spa in Coimbra, Portugal. Rooms at

tragic or catastrophic events – genocide, earthquakes

analysts. “Our aim is to give people access to and the

not for everyone. Famous for our flat, boring landscape.

Zedwell, London’t first sleep-centric hotel, are soundproofed,

and volcanic eruptions: Pripyat in Ukraine, scene of the

understanding of major issues in the news but draw the

Lucky for you, there’s nothing to do here.” These

equipped with noise-reducing walls, floors, doors, mood

Chernobyl nuclear disaster of 1986; the ghost town of

line at going anywhere that would endanger customers.”

vagabond shoes are yearning to stray though! Where then?

lighting. No anxiety-inducing attractions – TVs, radios, phones

Belchite in Zaragoza, Spain; Pompeii’s ruins; the Fontanelle

Political tourism is “travel behind the headlines for

Barcelona? Kidding? Again?

- here. The Mandarin Oriental in Geneva teamed up with a

cemetery in Naples with thousands of human skulls; Craco

enquiring minds”, to countries stricken by war, trouble and

private medical sleep clinic to curate a programme that tracks

in Matera, Basilicata; the leper colonies of Japan; the

strife – Afghanistan, Syria, North Korea, Iran, Libya.

guests’ sleep patterns and sleeping disorders.

terrifying dolls of Xochimilco in Mexico hanging from every

The world is vast and not indifferent to travellers with serious money to burn. James Bell, managing director of

five passengers onboard.

The strange allure of disaster tourism is magnet for

some prisons have been bought, renovated and are

Nicholas Wood founded Political Tours, whose

Hostilities in parts of Syria continue but President Assad is determined to open the country to tourists, hence

Turquoise Holidays, says the “£100,000 holiday is not far off

Travel-jaded people who hanker for new, challenging

being normalised.” Abercrombie & Kent has almost sold out

excitements are well-served by the danger and adventure

In 1972 Uruguayan Air Force flight 571 carrying 5 crew

Damascus issuing visas again. North Korea welcomes over

of their 2024 £100,000 villa holidays. The Caribbean island

tourism industry – risk-taking holidays that depart from

and 40 passengers including an amateur rugby team struck

5,000 tourists every year, with the Wonsan-Kalma tourist

of Canouan has become famous for saving billionaires from

comfort zones. Swimming with orcas in the Norwegian

a mountain ridge in the Andes and crashed. Twenty-nine

zone being developed to increase visitor-numbers. “They

having to mingle with mere millionaires. A nine-month round-

fjords, ski marathons in Switzerland’s Engadin valley, desert-

died; 16 survivors, stranded in freezing temperatures for 72

have great beaches,” endorsed Donald Trump. “You see

the-world cruise aboard Royal Caribbean’s Serenade of the

survival courses with just a machete, tarpaulin, map, freeze-

days, were faced with the choice of eating the remains of

that whenever they’re exploding their cannons into the

Seas set passengers back $60,000 - $117,000, and their antics

dried food, harpoon and a satellite phone for emergencies.

team members or starving to death. Hundreds of tourists

ocean. I said to Mr Kim, ‘you know, instead of doing that,

make a pilgrimage to the site every year.

you could have the best hotels in the world right there.’”

Travellers who yearn for extreme escapism and isolation

aboard have become TikTok hits.

tree as a reminder of the body of a girl found nearby.

Billionaires flock to Courchevel’s Chalet Edelweiss to

in what is called “get-lost travel” are cast out to be alone in

“Feel the Jail” programme of Tihar Jail in Delhi allows

A chain of luxury resorts, from the Red Sea to the mountain

hobnob with their kind during a £620,000 two-week-long

hostile environments – the Peruvian Amazon, the wilds of

tourists to spend time in prison cells, eating the same food,

of Al Soudha, is being developed in Saudi Arabia, spearheaded

stay over Christmas. Or they hire – or buy – their own

Patagonia, the mountains of Morocco, the Mongolian steppes,

wearing the same uniform, sleeping on floors as inmates

by Crown Prince Mohammed bin Salman, with billions of

private islands, currently in high demand as they provide

remote uninhabited islands – safe in the knowledge they are

who include gangsters, killers, the occasional tycoon and

dollars being spent to create a new tourism mecca. The

the quintessential minimal contact with mere mortals. They

being invisibly trailed by a well-trained crew. “Get-lost trips are

politician. “Prison tourism relies heavily on the gruesome to

religious and moral police have not lowered their guard, but in

come with fully furnished and staffed houses, pools, tennis

like epic productions and can require 18 months’ planning,”

attract visitors who take selfies in striped jumpsuits,” wrote

2020 Saudi Arabia started issuing visas to visitors, relaxing their

courts, landing pads. Around the world, over 550 islands

said Tom Marchant, founder of Black Tomato, to The Times.

Hope Corrigan in Mother Jones. “But the entire industry is

strict dress code and travel restrictions for women.

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Ship Management International

Issue 107 January/February 2024

107 January/February 2024

Ship Management International

95

Lifestyle

“You haven’t been to India until you’ve been to

Be an island bagger – a new competitive breed

an Indian wedding,” advertised an Indian travel firm.

of traveller sailing from Britain’s shores by boat, ferry

Travellers browse wedding listings online and pay to be

or kayak – in a race to visit over 6,000 British isles.

invited to the wedding of their choice – which could last

“These islands are among the last places you can

for days.

have micro-adventures. You wake up on the beach

Auto Trader says demand for commercial vehicles

are curious and bob up and down. It’s a magical

movement”, camper vans are being converted into

experience,” said Denise McLellan, the ‘queen’ of

mobile homes by people who have mostly walked

island-baggers, to the Times.

away from homes, material possessions and careers

Glamour is back in sleeper-train travel, with

to explore the freedom of the road and travel

carriages being transformed into grand suites with

unencumbered. Ditch the car, said geographer Daniel

elegant bathrooms, attended by butlers and meals

Raven-Ellison to The Times, and get there slower. “We

concocted by Michelin-starred chefs. “The thrill

have footpaths connecting towns and cities. You can

comes from the hoot of the train in the night, that

save money, improve your health, enjoy a network

just the other side of a curtain lies South Africa’s

connected by railways and roads, which might take a

Karoo desert or the Alps, or the Devon coast

little longer but that slower way of getting from A to

while you lie in the dark under a tangled blanket,”

B has all these benefits.” Slow Ways maps of Britain

rhapsodised Julian Glover.

connect pedestrian-friendly and traffic-free towns and

One day Elon Musk (or his son X) will take

villages – the Pennine Way, the Southwest Coast Path,

humankind to Mars, opening new frontiers. British

the West Highland Way, among others.

astronaut Tim Peake said: “We know exactly how to get

Where will your next holiday take you? The Arctic

there. I reckon we will be in Mars by the late 2030s.”

to see glaciers before they melt and wildlife disappear?

There is a waiting list of some 800 people willing to

“There is a risk,” says the Environmental Committee

pay $450,000 for a seat on Virgin Galactic’s suborbital

of Arctic Circle, “that thousands of tourists are

missions – to view the stars in a 72-minute round trip

contributing to the degradation of the very unspoilt

across the invisible Karman Line. Jon Goodwin, 80, the

environment they came to see.” Or Antarctica – an

first paying tourist on Galactic’s VSS Unity, refused to

inhospitable wilderness of white – the sought-after

let a diagnosis of Parkinson’s deter him from his ride.

destination of those who pay up to $50,000 to stay

Landing back on terra firma, he said: “What am I going

in a heated igloo, dive beneath the icebergs, kayak

to do now? I suppose there’s always the moon.”

alongside seals. Scientists say that earth’s southernmost

96

and hear sea birds coo, chirr and chunter. The seals

is up 57% since 2020. In the growing “van life

What good are wings, after all, without the courage

continent is changing faster than any other area of the

to fly? “The woods diverged in a road,” wrote Robert

planet, its temperatures having risen by 3C over the

Frost, “and I took the one less travelled by, and that has

past 50 years.

made all the difference.” l

Ship Management International

Issue 107 January/February 2024