SHIP MANAGEMENT INTERNATIONAL ISSUE 109

33

Cover Story

ISSUE 109 MAY/JUNE 2024 THE MAGAZINE FOR THE WORLD’S SHIP OWNERS & SHIP MANAGERS

STRAIGHT TALK 8 – Sounding a warning note on

Salvors,

FIRST PERSON

seafarer safety

a vital last recourse NOTEBOOK 10 – FuelEU Maritime – Achieving compliance: banking, borrowing, pooling and paying

12 – UK maritime services’ expertise in the spotlight at Athens event

14 – Newbuilding prices climb 3% to

25 – Mark O’Neil

President & CEO, Columbia Group and President, InterManager

16-year high: BIMCO

16 – IRI marks half-century of Piraeus office

Get our magazine digitally.

Scan QR code and fill in your details to receive.

HOW I WORK

19 – ICS and HK Government to host high-level summit

20 – SHIPMAN 2024 – Evolution, not revolution

INTERMANAGER OUTLOOK 22 – Updated ISM Code will

need to be consistently enforced to have value

28 – Deborah Layde, Chief Executive, The Seafarers’ Charity

Issue 109 May/June 2024

Ship Management International

5

SHIP MANAGEMENT INTERNATIONAL – ISSUE 109 MAY/JUNE 2024 THE MAGAZINE FOR THE WORLD’S SHIP OWNERS & SHIP MANAGERS

REGIONAL FOCUS

P&I AND LAW 30 – The perils of piracy, an

Singapore

evolving threat

44 – Singapore strengthens as an IMC but higher costs are beginning to bite

DISPATCHES 33 – Salvors remain vital to free

ALTERNATIVE VIEWPOINT 81 – Dr Martin Stopford

The container market super-boom and beyond

55 – Tanker pools: why they work for the industry

flow of trade

SHIP REPAIR 58 – Repair yards adapt

DIGITALISATION 36 – Due diligence needed for

EDUCATION 82 – New Ship Management course launched by BIMCO and CBS

to constant change

digital transformation, says OrbitMI

AD HOC 70 – Our regular diary section

38 – Nordic data skills shortage looms

TECHNICAL 73 – European ferry sector charts

CLEAN OCEANS 84 – Tackling marine plastic pollution

OBJECTS OF DESIRE 86 – Our pick of the most coveted creations

new course

MARITIME SAFETY 40 – Going from A to B: Ferries’

ANALYSIS 76 – Coal trades defy the odds

unique safety challenges and the role of data

SMART & AI 78 – Orca AI moves autonomous shipping forward

REVIEW 88 – Bringing you the best in arts & culture

LIFESTYLE 90 – The ‘new servant class’ as trappings of luxury

79 – Syroco’s new generation weather routing and voyage optimisation tool uses digital twins, data and AI

80 – Autonomy for marine surveys Next issue The July/August issue of Ship Management International magazine (SMI 110) wiil be the one going to the SMM exhibition in Hamburg and will include a special feature on Germany, as well as technical reports on Navigation and Communications.

At the halfway stage between London International Shipping weeks LISW 2023 and LISW 2025, there will also an update on the state of the UK Shipping & Maritime Services sector.

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 109 May/June 2024

The shipping business magazine for today’s global ship owners and ship managers Issue 109 | May/June 2024

STRAIGHT TALK Connect with us /ShipManInter

Visit our website www.shipmanagementinternational.com

Join the debate @ShipManInter

Download our App Ship Management International

Sounding a warning note on seafarer safety

T

his year’s Posidonia was

respiratory tract and can result in

difference between the liner and tramp

characterised by a whole raft

blindness, lung damage or death.”

ship models that regulators must

of announcements relating

The message was underlined by

understand, is also relevant here. While

to design and development of

Posidonia’s Greek shipping hosts.

major container hubs – Singapore,

ammonia-fuelled vessels and even

Hundreds of thousands of seafarers

for example – are doing sterling work

liquid ammonia carriers. While there

will need retraining in order to handle

preparing for the handling of future

may turn out to be no single ‘winner’

future fuels and their technologies

fuels like ammonia, will the same best

among alternative fuels, it’s clear that

safely, Chairman of INTERCARGO and

practices apply at minor ports where

ammonia is among those making the

of the Union of Greek Shipowners (UGS)

the cross-trading vessels so favoured by

early running.

Technical Committee Dimitrios Fafalios

Greek owners call?

But in this ‘dash for ammonia’, as

pointed out during a Greener Shipping

Any appreciation of shipping as

we might dub it, spare a thought for

Summit. And that figure excludes

“the backbone of the global economy,

seafarers having to handle this highly

shoreside staff who are also vital to

supporting the welfare of humanity” - as

corrosive substance. Exposure to high

the safe and green operations of fleets

UGS President Ms Melina Travlos put

concentrations of ammonia in the air,

worldwide, he said, adding: “We cannot

it in her welcome address to Posidonia

according to the New York Health

achieve the IMO’s goals without safety.”

– and of the “seamanship” she said it

Department, “causes immediate burning of the eyes, nose, throat and Published by

Sales Enquiries Julian Berry Editorial Bob Jaques

Finance Lorraine Kimble

Fafalios’ other main point during

requires, must surely begin and end with

the summit, about the fundamental

the safety and wellbeing of seafarers. l

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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.

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 FuelEU Maritime – Achieving compliance: banking, borrowing, pooling and paying

While the shipping industry is still coming to terms with the EU Emissions Trading System (EU ETS) the next decarbonisation initiative, FuelEU Maritime (FuelEU), is rapidly sailing into view, write Antonia Panayides and Alexander Drury of global law firm Reed Smith.

F

uelEU is part of the EU’s Fit for 55 Package and

few different mechanisms and receive a FuelEU document

aims to support decarbonisation in the shipping

of compliance.

industry by setting and gradually reducing,

emission targets from journeys to/from EEA (European Economic Area) ports. The scheme targets the

Paying the price On 1 June of the verification period, a company’s

greenhouse gas intensity of energy used on a vessel.

administering State shall ensure that any ships with a

This is largely determined by the fuel used, with the

compliance deficit, i.e. those that are over polluted during

Regulation rewarding cleaner fuels.

the year, are issued with a FuelEU penalty.

FuelEU enters into force from 1 January 2025 but

If the penalty is paid by 30 June, the ship will receive a

monitoring plans for vessels already calling at EEA ports

FuelEU document of compliance. If a ship has a compliance

must be submitted by 31 August 2024.

deficit for consecutive reporting periods, an uplift multiplier is applied to the penalty.

What is the compliance process?

To comply, a ship must not exceed its set emission target, expressed as greenhouse gas emissions per

10

Using the bank Where a ship has a compliance surplus, and therefore

megajoule of energy used on board. If a ship is at, or under,

does better than the EU’s target, the company may ‘bank’

the target stipulated by the EU, it will receive the important

the unused emissions for the next reporting period. The

FuelEU document of compliance. However, if a ship is over

decision to bank is subject to the appointed verifier’s

the emissions limit, it can still achieve compliance through a

approval and must be made before a FuelEU document of

Ship Management International

Issue 109 May/June 2024

Notebook

compliance is issued. The banked surplus can be used to

must approve the pool composition and allowance

achieve compliance the next year.

distribution across the pool.

Borrowing from the future

The compliance is then assessed across the entire

A ship with a compliance deficit may borrow a

pool rather than looking at individual ships. This allows a

proportion of the next year’s emission allowance to help it

cleaner ship to share any compliance surplus with more

achieve compliance. However, this borrowed allowance and

polluting ships.

a premium is deducted from the following reporting period,

Verifiers will confirm a ship’s emissions by 31 March and

making it even harder to achieve compliance that year. A

companies then have until 30 April to finalise their pooling

ship cannot borrow in two consecutive years.

arrangements, which the verifier must also confirm.

Pooling

Consequences of non-compliance

Finally, a ship can enter a pool. This is not to be

A FuelEU document of compliance allows a ship

confused with a commercial pool. A pool for the

to trade in EEA ports for 18 months, or until the next

purposes of compliance with FuelEU is a voluntary

FuelEU document of compliance is issued. However,

mechanism allowing ships to share their compliance

Member States must lay down rules on sanctions for

surplus/deficit – as long as the pool’s total emissions

non-compliance. If a ship has no FuelEU document of

result in a compliance surplus. Pools can consist of

compliance for two consecutive years, it could be detained

ships from different companies, but every company

or expelled from EEA ports. l

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Notebook

UK maritime services’ expertise in the spotlight at Athens event

H

delivered a keynote address at the ‘Securing

Multraship Towage & Salvage and Chair, International

Your Ships from External Disruptions: Safety and

Salvage Union (ISU) Salvage Sub-Committee; Ben Palmer

Decarbonisation Perspectives’ event organised jointly by

OBE, President of Inmarsat Maritime; Dr George D.

Maritime London and the British Embassy at the Stavros

Pateras, Deputy Chairman, Contships Management Inc

Niarchos Foundation Cultural Centre in Athens as part of

and President, Hellenic Chamber of Shipping; Gordon

Posidonia 2024.

Robertson, Head of Greece, NorthStandard; and Sally-Ann

.E. Matthew Lodge, UK Ambassador to Greece,

Alluding to shipping’s role as a major pillar of the Greek economy, Ambassador Lodge pointed out that

Underhill, Partner, Transportation, Reed Smith LLP. Panel moderator Jos Standerwick, Chief Executive,

“the maritime sector is also one of the major income

Maritime London, said: “Global supply chains are

generators for the United Kingdom and the City of

under a perfect storm of geopolitical pressures and

London. The UK today is one of, if not the, leading global

ships and seafarers are quite literally caught in the

centres for maritime services with around a 25% share of

crosshairs. While the shipping industry has once again

the overall market.

demonstrated the flexibility and resilience that is taken

“Greek shipowners are amongst the City’s biggest clients for legal, insurance, financial and brokerage services,” he continued. “Many made London their home

for granted, we need to learn lessons from the past and be more proactive.”

Entitled ‘Tramp Shipping - the Elephant in the

during the first half of the past century and even if they have

Decarbonisation Room?’ the second session started with a

now moved elsewhere, many connections still endure.

scene-setting presentation delivered by Stephen Gordon,

From major legal firms, marine insurance, P&I clubs

Managing Director of Clarkson Research, followed by a

and brokerage services to one of the largest ship-

discussion. The panel included Nick Brown, Chief Executive

classification societies, the UK offers “a wealth of world-

Officer, Lloyd’s Register; Harry Fafalios, Chairman, Greek

class companies providing expertise across all maritime

Shipping Cooperation Committee (GSCC); Michael Parker,

services sectors,” he added, also referencing the growing

Chairman, Global Shipping, Logistics & Offshore, Citi;

number of UK maritime technology companies. offering

and Charis Plakantonaki, Chief Strategy Officer, Star Bulk

innovative, cutting-edge solutions in line with the need

Carriers Corp.

Proceedings were rounded off by the UK Ambassador’s

for green shipping.

At the ensuing seminar, the opening session on

12

The panel included Eline Muller, Senior Executive,

Reception - traditionally one of Posidonia’s ‘hottest ticket’

‘Ensuring Safety in a Heightened-Risk Environment’

social occasions - this year held at the Stavros Niarchos

(pictured) considered the commercial implications of global

Centre as well.

trade disruption as a consequence of the well-publicised

The Maritime London/British Embassy event was

choke points in key shipping routes, and how the industry

organised in partnership with Inmarsat, Lloyd’s Register,

could work smarter to ensure the safety of assets and

Lloyd’s List and UK Shipping Concierge, and supported by

importantly seafarers.

the UK Department for Trade & Business. l

Ship Management International

Issue 109 May/June 2024

Notebook

Newbuilding prices climb 3% to highest level in 16 years: BIMCO

“S

ince the start of the year, newbuilding prices

second half of 2017. Since then, the ratio has climbed

have risen 3% to their highest level since

from 2.1 in late 2020 to 3.7 currently, the highest

2008. Compared to their most recent low in

since 2010.

late 2020 they are up 53%. During the same period, the order book has grown by 72%, reaching its highest level

increases. The 53% price increase in just 3.5 years may

since early 2012 and is up 2% year-to-date,” says Niels

seem dramatic but it is worth remembering that the

Rasmussen, Chief Shipping Analyst at BIMCO.

average annual price increase between 2010 and 2024

Shipyards’ global order book currently stands at 133m Compensated Gross Tonnage (CGT), an increase of 56m CGT compared to the order book’s most

has only been 2.3% even though manufacturing wages in China have more than tripled.

“Looking ahead, the need to start replacing the

recent low in late 2020. LNG and container ships have

large generations of ships built in the 2000s, as well

accounted for respectively 35% and 30% of the increase

as the need to decarbonise, appear to bode well

while bulk carriers, tankers and LPG have accounted for

for future contracting. Avoiding a massive build-up

the rest.

of shipyard capacity like in 2000s will be critical if

The order book for container ships, however, peaked

shipyards are to avoid a rise in overcapacity and a

during the first quarter of 2023 and has fallen since.

scenario where prices fall back to the levels seen in the

Year-to-date, the container ship order book has fallen

2010s,” says Rasmussen. l

16%, deviating from the overall growth trend together with the bulk carrier order book which is down 3%.

“So far this year, the tanker and LNG segments combined have been the main drivers of growth in the global order book. In addition, the LPG tanker, cruise ship, chemical tanker and RoRo ship order books have seen double digit growth,” says Rasmussen.

Between 2010 and 2020, the shipyard industry was plagued by overcapacity. Therefore, prices only varied +/- 10% from the period’s median price.

Assuming that the available shipyard capacity in a year equals the maximum delivered in the past five years, we can illustrate both the past overcapacity and how the situation has improved.

Between 2010 and 2020, the median order book vs capacity ratio was 2.2, declining to 1.7 during the

14

This improvement has helped fuel the price

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Issue 109 May/June 2024

Notebook

IRI marks half-century of Piraeus office

P

osidonia 2024 marked the 50th anniversary of the

total gross tons of the RMI fleet. Sharing expertise and

Piraeus office of IRI, which provides service and

intelligence with team members throughout IRI’s global

support to owners and operators not only in Greece

network of offices, the Piraeus team also provides significant support for corporate and ancillary services.

but throughout the globe.

Located along the historic Akti Miaouli, the Piraeus

The RMI Registry and corporate regime function

office opened in 1974 as a marine safety centre supporting

in compliance with the rules and regulations of

clients of International Registries, Inc.’s (IRI’s) predecessor

the Organisation for Economic Co-operation and

company offering services in local time, a unique client

Development (OCED), the European Union (EU) and

benefit in the days before digital technology.

European Commission (EC), and the guidelines of the

The office grew to become a regional hub and today is

Financial Action Task Force (FATF). The RMI jurisdiction

the Republic of the Marshall Islands (RMI) Registry’s largest

constitutes a solid contemporary and commercially

regional office offering not only marine safety services, but

oriented legal framework that is globally recognized

also administrative, technical, seafarer, and other maritime

and preferred by private and publicly listed shipping

operations services for clients throughout the world.

companies and organizations worldwide.

“Recognising the five decades of contribution from

“When the Piraeus office opened, this business

the Piraeus office at Posidonia 2024 is very special for

was still conducted mainly through handshakes and

me,” noted Theo Xenakoudis, Chief Commercial Officer

paper,” continued Theo Xenakoudis. “Today, the

and Managing Director, Piraeus. Theo joined IRI more

industry is completely digital – from our online seafarer

than 20 years ago when the office was only four strong

program to our critical inspections checklist. With the

and led by his father Capt. Costas Xenakoudis together

immediate responsiveness of digital technology, we’re

with Capt. John Giannopoulos. “It is humbling to look

able to provide 24/7 service to clients throughout the

back on how far we have come and recognize the hard

world, support to our other 27 offices, share the voice

work, focus on client service, and dedication it has taken

of our clients at international regulatory meetings, and

to get here,” he commented.

ensure that our clients have access to the information,

Today, IRI provides administrative and technical support to the RMI Registry through its decentralised structure of 28 offices worldwide. The Registry continues

technical support, and client service they need to meet the future.”

“The Greek community has always been an important

to be favoured by many Greek owners and operators

market for us,” said IRI President Bill Gallagher. “Over the

who choose a foreign flag.

years we have built a strong local team in Piraeus, one that

As of 31 March 2024, the RMI fleet had 1,506 vessels

not only understands the Greek shipping market, but also

weighing 66.2 million gross tons that were either managed

actively identifies opportunities to strengthen, support, and

or owned by a Greek company, representing 32.9% of the

enhance this community.” l

Bill Gallagher Theo Xenakoudis

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Issue 109 May/June 2024

Notebook

ICS and HK Government to host high-level summit

T

he Hong Kong Special Administrative Region

provide a platform for discussion, encourage unique

Government and the International Chamber of

perspectives, and facilitate the development of

Shipping (ICS) announced their commitment to

actionable solutions to address the challenges facing

host a high-level summit during Hong Kong Maritime Week 2024 in November, highlighting the critical role of global trade in today’s ever-changing landscape.

the industry.

“As an international maritime centre, Hong Kong is well-positioned to serve as a global platform that fosters

This commitment was solidified during a recent

cross-border exchange and synergy,” said Mr Lam. “We

meeting between Guy Platten, ICS Secretary General,

express our gratitude for ICS’s continuous support to

and Lam Sai-Hung, Hong Kong’s Secretary for

the Hong Kong maritime industry, as revealed by its

Transport and Logistics. Recognising the importance

active participation in the annual flagship event HKMW

of collaboration and of addressing the unprecedented

over the past several years. Hong Kong looks forward to

challenges facing global trade, both agreed to facilitate

welcoming the Summit later this year.”

dialogues amongst industry leaders and policymakers

“We are seeing significant challenges to the system

to promote efficiency, sustainability, and resilience in

of trade rules that have ensured growth and prosperity

global trade and shipping.

for all,” said Guy Platten. “This partnership marks

The summit, organised by ICS, will bring together

a significant step towards in the maintenance of an

senior leaders, ministers, government shipping

efficient and sustainable framework for the maritime

ministry DGs, as well as representatives from

industry and for global trade. We are excited to work

ports, logistics, regulators, development banks,

closely with the Hong Kong government to address

international agencies, and invited experts. Building

mutual issues and explore potential solutions which can

on the success of previous summits, it is intended to

then be implemented on a global scale.” l

Notebook

SHIPMAN 2024 – Evolution, not revolution

By Robert Hodge, General Manager at ITIC

O

ne of the most important and widely used standard form contracts in shipping has now been revised. BIMCO SHIPMAN was

last updated in 2009. ITIC was honoured to be part of the drafting team in 1998, 2009 and now 2024. The drafting panel consists of third-party ship managers, ship owners, lawyers and insurers.

As ITIC insures the vast majority of third-party ship managers globally, we must be a part of the process.

Moreover, the professional indemnity insurance that ITIC provides is on the condition the management agreement is on terms no more onerous than SHIPMAN. So, what is new? It is important first to

complicated as the EU initially targeted the manager

discuss what has remained the same. SHIPMAN has

as the sole party responsible for surrendering the EU

been in place since 1988; it is a very well-understood

Allowances (EUAs). The clause was drafted to suit

and litigated contract, so the changes are one of

this situation. The EU then (quite rightly) decided that

evolution, not revolution.

the registered owner should be responsible unless

Firstly, the contract remains one of agency, and

the owner mandates the manager to provide the

the managers are given the authority to act for and

services. ITIC has recently noticed owners requesting

on behalf of the owner. The manager must maintain

managers to agree to a wide variety of EU ETS clauses

their agency status with suppliers. If they do not

not drafted by BIMCO. ITIC advises that the EU ETS

clarify to a supplier that they are an agent acting for

clause from SHIPMAN must be used as it might not be

and on behalf of the owner, they can be held liable

insured if you agree to something more onerous.

for non-payment. Secondly, the standard of care

A second major revision is to allow the manager to

the manager owes to the owner is that they shall

provide pre-delivery services and have the protection

use their best endeavours to provide sound ship

of the contractual terms. A manager may provide

management. Some lawyers comment that SHIPMAN

services several months in advance of delivery. If

is manager-friendly. This is nonsense, as the standard

the agreement has not commenced and a mistake

of best endeavours is onerous and goes beyond the

is made, none of the contractual protections will

usual standard of reasonable skill and care. Thirdly,

be enforceable. The solution was to define pre-

and importantly, the liability section broadly remains

delivery services and allow the parties to agree on

unaltered. The limitation is ten times the annual

remuneration. The ship is deemed to be delivered

management fees, there is an indemnity from the

once the ISM manager is named on the Class

owner to the manager, and the manager is not liable

Certificates – a clearly defined date.

While the revised contract includes several other

for the crew’s negligence.

There have been some important changes. The

changes, it’s important to note that the contractual

agreement took well over a year to draft, as much

protections that ship managers benefit from remain

of the time was spent drafting the European Union

unaltered. ITIC encourages all users to read BIMCO’s

Emissions Trading Scheme (EU ETS) clause. This was

explanatory notes carefully. l

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Issue 109 May/June 2024

InterManager Outlook Updated ISM Code will need to be consistently enforced to have value As the IMO discusses updating the ISM Code, InterManager Secretary General Captain Kuba Szymanski considers the progress

I

nterManager is pleased that the

and has identified the following as key

International Safety Management (ISM)

areas for consideration:

Code is being updated.

•

Better detail on the roles and

Adopted in 1993 and entering into

responsibilities for all key stakeholders

force on 1 July 1998, the purpose of the

including the Master, the designated

ISM Code is to provide an international

person ashore (DPA), ship owners,

standard for the safe management and

ship managers

operation of ships and for pollution

•

prevention. The Code was last amended

critical systems and equipment, and thus

in 2013.

correct identification and management of

We feel the ISM Code review needs

Better guidance on how to determine

associated spares

to address many of the existing gaps that

•

have allowed or resulted in industry groups

and fair culture, and well-being (including

creating their own standards, processes,

mental health), cyber security, and

and systems for working at sea.

connectivity – all in relation to safe,

We see significant value in reviewing

Inclusion of open reporting, a just

efficient operation of vessels

and updating the “Application of”

•

documents, upon which many of

manning levels, and determination of same

the maritime agencies base their

for different vessel types and operations

interpretations and audits/inspections.

•

However, unless the IMO is prepared

Stronger guidance on minimum safe

Better governance on incident

reporting and investigation standards,

to step-up and consistently enforce the

and around reporting of statistics and

implementation of the ISM Code by Flag

associated programs. These must be

States, Class Societies, Port State Control

shared, industry wide, to be of any value

etc, then we do not see any value in

•

making the Code more complex. Effective

definitions, calculations, and metrics

enforcement is essential.

associated with incidents

Detailed review and alignment on

In addition, we see a need to hold IMO accountable for regular and

review and improve the ISM Code and to

thorough stakeholder engagement,

effectively implement it throughout the

to ensure the Code and its application

shipping industry. The ultimate objective

remains relevant and fit-for-purpose

is to develop a widespread safety culture

moving forward.

with every individual feeling responsible

InterManager’s ISM Committee has been considering the detail of the review

22

Ship Management International

This is an important opportunity to

effective updates of all same, and with

Issue 109 May/June 2024

for actions taken to improve safety and performance, which we applaud. l

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First Person Mark O’Neil

President & CEO, Columbia Group and President, InterManager The President of ship management industry association InterManager since November 2020, as well as Columbia Group President and CEO, Mark O’Neil has a clear vision for the future of his sector.

A

ddressing a Round Table organised by SMI entitled ‘Future Proofing Quality Ship Management’ earlier this year, he elaborated on the importance of the General Principles that InterManager had just

introduced for its Members to endorse.

“We’re a service provider”, he began by saying, “and fundamentally,

we’re talking about future proofing ship management to ensure that we remain relevant to our clients.” At the same time, those clients are having to change their businesses - most notably in having to comply with ever stricter environmental regulations, transition to alternative fuels and harness the benefits of digitalisation.

All this means clients “actually have to use us,” he continued, “because we have that suite of services, and we have the resources available. So, I think staying relevant and compelling, aligned and in partnership, albeit in different models to the traditional third-party management is really, really important.

“We have to improvise, adapt and overcome whatever challenges we might face and be client facing. Do what the client wants, the particular client, not a commoditised service, but what the particular client wants and needs us to do.

“We’re in an industry which is undergoing huge transformational change. We’re an industry that is consolidating. We’re an industry that’s digitalising. We’re an industry where some of the traditional liner companies are not calling themselves liner companies

Issue 109 May/June 2024

Ship Management International

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First Person

anymore. They’re calling themselves logistic companies, and

40% or 50%, then we’re not going to do that by a ‘race to

they’re buying airlines and they’re buying trains and they’re

the bottom’ and trying to take vessels from each other. We

buying haulage companies.

have to get out there and persuade the market that we

“Is the term ‘ship manager’ going to become a misnomer in two, three, four, five years’ time? Definitely at some stage

can do it for less and do it better. That’s why these General

being a ship manager will no longer be relevant and certainly

Principles are so vital to us, to get that message out there

not be compelling. So, the ship managers of today not only

and at least aspire for better.”

have to achieve scalability and efficiencies and effectiveness

Elsewhere, the InterManager President has explained

but also develop that integrated platform of services so that

that the association’s General Principles of Conduct and

the client - whoever that might be in whatever shape - is able

Action – to give them their full name – introduced in late

to utilise, and has to utilise, our services.

2023 “will enable operators to be discerning and choose

“The client may be an asset owner, may be a train

between the managers who aspire to comply with a higher

operator, may be a plane operator, may be a vessel operator,

standard of operation and are willing to open themselves up

but it’s all going to be integrated and we somehow have to fit

to third party audit, and those who are not. Compliance by

into that mix and offer our services and manage those assets

the manager must surely affect, and be a factor in, a vessel’s

and optimise the operation of those assets.”

rating by commercial rating agencies.

All the above requirements represent “a big challenge in

“Our General Principles are intended to distinguish

the future”, he added, but clients will expect ship mangers

between players in the ship management sector, between

“to be able to deliver on all of those bases and that’s what

those who talk the talk and those who walk it. You have

we’ll have to do.”

to ask yourself what is there not to support? Why would a

Earlier O’Neil had referred to the multiple disruptions

manager not be a member of InterManager and aspire to

facing shipping, quipping that “the world is never a dull place

the standards set out in the General Principles” – requiring

for ship managers.” He went on to suggest that in fact there

initial self-assessment of compliance and later leading

are very few industries “that are more risk exposed than ship

outside audit of the same, together with a commitment to

management. We take on a huge amount of risk for very, very

self-improve as necessary, he queried.

little reward. In fact, anybody looking at the outside would say, why do they do this for such little reward? They take if something goes wrong, we’re hugely exposed.

Those General Principles are available on the InterManager website: www.intermanager.org Hosting a Columbia Group party at the outset of this

“So, yes, we can change the model and we should

year’s Posidonia fortnight, O’Neil elaborated further on

change the model and we should look at every client on

the importance of such partnership or ‘second party’

their own and get away from the commoditised offering.

management to his audience of predominantly Greek

It may be that it’s a different type of partnership, or it may

owners, a group traditionally averse to letting others look

be a different type of remuneration, or it may be a different

after their ships.

sharing in the upside of the vessel’s operation. We have

“We don’t want to just manage your ships, we want

to be open to every single model that makes sense, not

to manage our partnerships,” he said. “If there is one

sacrificing the quality. I think if you sacrifice the quality, then

thing which distinguishes this fantastic company from

we are on an inevitable downward slope. “

any other ship management company out there, it is the

O’Neil has been prone to using the term ‘second party’

ability to really forge strong partnerships. It is about the

rather than ‘third party’ for this type of customised client

value of these partnerships that matters and that is what

service – or ‘partnership’. In data terms, second party refers

the Greek market is opening up to. Not to third party ship

to information that is compiled by an outside party for a

management but to real collaboration with real partnerships

specific user (such as one-to-one in-depth interviews) rather

that drives optimisation where one plus one equals three or

than ‘off-the-shelf’ material such as mailing lists, and the

four and that is what we are all about.

analogy with ship management services seems apt.

“Only through this partnership can one really work together as a team with our clients and we want that

‘Partnerships’

26

are as good as they are in managing their vessels and we

teamwork, those partnerships and those common

“That is why the InterManager General Principles are so

goals, and we want those common successes. We want

important,” O’Neil told the Round Table. “If ship managers

common ownership as if they were our own vessels. But

are going to attack more of the market, we only have 16%

as importantly, we want to share the upsides and the

of the shipping market. If we want to get ourselves up to

downsides,” he emphsised. l

Ship Management International

Issue 109 May/June 2024

How I Work SMI talks to industry leaders and asks What motivates them and how they deal with the rigours of the shipping industry before finding her way into the charity sector. There she initially worked for an employment training and advisory body that focused on leadership and workplace improvement, where she says she “learnt a great deal, not least from our Trustees who were senior leaders from both industry and Trade Unions.”

Work of The Seafarers’ Charity in its support for seafarers and their families, both working and retired, is “as broad as the exciting variety of roles in maritime,” she says. “Put simply, we believe that a career at sea should be fulfilling, rewarding, safe and free from the unique hardships that can be part of life onboard.

“Everything that we do is about charting a course to make this a reality. We provide funding support for the essential running costs of many of the large well-known maritime welfare charities such as Sailors Society, Mission to Seafarers, Stella Maris and the International Seafarers Welfare Assistance Network (ISWAN).

“In addition, we innovate and drive new improvements in the lives of seafarers, globally.”

One such example, she says, is the charity’s funding for a new ‘allyship’ campaign with ISWAN, co-funded with

Deborah Layde

UKP&I Club. The campaign targets the psychological safety

Chief Executive, The Seafarers’ Charity

to call out inappropriate behaviours. “Inspired by our funded

of women seafarers by urging everyone onboard and ashore research on ‘The Port-based Welfare Needs of Women

“W

orking in a charity is different from the

Seafarers’ by the Seafarers International Research Centre at

corporate world and I absolutely love it!”

Cardiff University,” she relates, “we discovered that women,

says Deborah Layde. “As Chief Executive of

particularly on cargo ships, often fear for their personal safety

The Seafarers’ Charity, I have found my ideal job as the sea is

and isolate themselves.

“Rising reports of bullying, harassment, and sexual violence

deeply rooted in my heritage.

“My father, a Yorkshire-born RN Captain in the fleet air arm,

at sea are alarming,” she continues. “We are committed to

died in a helicopter crash whilst in command of HMS Osprey,

ensuring all seafarers feel safe and experience better working

Portland Naval Base in 1984. I was just 19. My mother was from

lives. By funding charities like Safer Waves and Salute Her

Mousehole, Cornwall and many of her extended family worked

UK, we address sexual violence; prevention is our goal.

at sea in various capacities, from fishing, lifeboat volunteering

The onboard culture that normalises such behaviours must

to merchant mariners.

change. In this regard, we support the Nautical Institute’s new

“I really value being able to help improve the lives of those

leadership and management training courses by providing bursaries for seafarers in between jobs and from low GDP

who work at sea.”

Deborah herself moved up from southwest England to London at an early age, working in a number of different

countries to enhance their leadership skills.”

Founded as King George’s Fund for Sailors, thereafter

jobs – including for design guru Sir Terence Conran and later

known as Seafarers UK, the charity changed its name to reflect

heading up a commercial company employing 400 people –

its support for a global seafaring workforce. Deborah says the

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How I Work

Charity is “proud to champion the full breadth of maritime

engagement and visibility of the charity to a wider audience.

careers for their diversity, unique histories and cultures, and

This leads to increased awareness and support for seafarers.

their huge contribution to our global economy and society.”

We fundraise through corporate partnerships, individual

The charity itself is “incredibly diverse”, she adds, with a head office team (pictured) that comes from 12 different

contributions via appeals and legacies too.”

In her spare time the Chief Executive is a keen on athletic

nationalities and speaks 13 languages, as it discovered when it

pursuits herself. Together with two friends she co-founded a

celebrated International Mother Tongue Day.

Racy Riders cycling group, which now has six regular rides and

“I invest in terms of both time and money to encourage

explore various routes around northwest & central London.

and educate my staff to improve understanding and

The group is planning a week-long cycling trip to the Loire

appreciation of our differences,” says the Chief Executive.

valley in September.

“Monthly, we gather to learn with a clear DEIB (Diversity,

“In addition, I am a passionate walker,” Deborah adds,

Equity, Inclusivity, Belonging) focus. Recently, we shared

“especially long coastal walks” where she aims to complete

interesting facts about our places of birth and celebrated

the entire South West Coast Path – which stretches some 600

different cultural foods. We do not shy away from complex and

miles around the coastline of the mainly the counties Cornwall

under-discussed issues in the maritime sector. We are driven by

and Devon before reaching her native Dorset. She also counts

integrity, and we are bold and live by what we espouse.

herself fortunate in having many long-standing friends whom

“Supporting seafarers requires valuing everyone as equal

she sees regularly.

and equity, diversity and inclusion are central to our Charity’s

Recently The Seafarers’ Charity was proud to announce

mission. When reviewing grant applications, we assess the

King Charles III as its new patron, a royal tradition dating back

diversity of the charity’s leadership and governance. Simply

100 years to George V and carrying on through the reign of

put, a Trustee board lacking diversity (visible and invisible) risks

Elizabeth II. “While our relationship and some of our funding

potentially underperforming in its work for seafarers and we

of maritime welfare charities has a history that is as long as our

can’t have that.”

existence, we aim to innovate and remain relevant to the needs

The Seafarers’ Charity has two major fundraising challenge events each year. One is the 24 Peaks Challenge, which it has hosted for nearly 20 years in the UNESCO World Heritage site

of the modern seafarer and welcome new grant applicants,” says the Chief Executive.

“We raise funds to make impactful grants, informed by our

of England’s Lake District. Here it welcomes teams from all

deep knowledge of the sector. The Seafarers’ Charity is at the

sectors of the maritime industry to elevate seafarers’ welfare.

centre of an ecosystem of support for seafarers - committed

In addition, it has places for charitable long-distance runners to

to making the whole system stronger and more resilient

participate in the iconic London Marathon.

through our fundraising and impactful grant-making. To do

“Challenge events engage participants on a personal

this, we want to engage with the wider maritime community.

level, create memorable experiences and generate a sense

We welcome new corporate partners with whom we can

of accomplishment,” Deborah explains. “The competitive

collaborate with to ensure seafarers and their families thrive.

yet social aspects of these events enhance community

Get in touch.” l

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29

P&I and Law The perils of piracy, an evolving threat

Global piracy incidents are on the increase after a twoyear slowdown. Kristin Urdahl, Senior Loss Prevention Executive of GARD, explores where current piracy hotspots are and what shipowners and crew can do to reduce their risk.

G

lobal piracy and armed robbery are on the

ASIA: MAJOR CONCERN

increase again. The resurgence of Somali pirate

The latest reports from the Regional Cooperation

activity raises concern and, worryingly, there is an

Agreement on Combating Piracy and Armed Robbery

uptick in the number of reports of violence on ships’ crew.

against Ships in Asia Information Sharing Centre (ReCAAP

Figures from the International Maritime Bureau’s Piracy

ISC) show that there were 100 incidents recorded in Asian

Reporting Centre (IMB PRC) show that the number of

waters in 2023, up from 84 a year previously. All these

piracy and armed robbery incidents increased by 4% in

incidents were classified as armed robbery/petty theft.

2023 compared to 2022. In the first quarter of 2024, 33

The Straits of Malacca and Singapore (SOMS) remains

incidents of piracy and armed robbery against ships were

a major area of concern, with 63 incidents in 2023

recorded, up from 27 incidents in the comparable period

compared to 55 in 2022. The Malacca Strait in particular

last year, hence continuing the trend of 2023. And while

has seen an uptick of incidents, with as many as five

these may seem like relatively small increases, the numbers

incidents last year compared to only two during the entire

reveal some alarming developments.

period of 2016-2022.

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P&I and Law

Source: www.gard.no

Bulk carriers are the most frequently targeted vessel type,

all occurred between 500 nm and 1,000 nm of the Somali

and most of the SOMS incidents took place in the eastbound

coastline. There have also been reports of more incidents in

lanes and at night. While these incidents were mostly reported

these waters in April and May of 2024.

as low-level, opportunistic thefts with few injuries, perpetrators

The IMB PRC emphasises the importance of conducting

are often armed with weapons that are used to threaten crew.

thorough threat and risk assessments before traversing these

Hence, the severity of these incidents is on the increase,

waters and of following recommended best practice guidelines.

and ReCAAP ISC warns vessels to exercise enhanced vigilance

The Indian Ocean Voluntary Reporting Area (VRA), which

in the region.

is managed by the UK Marine Trade Operations (UKMTO), remains in effect. Vessels entering the VRA are encouraged

AFRICA: SOMALI RESURGENCE In 2023, the number of recorded incidents in African waters

to report that to the UKMTO and register with the Maritime Security Centre for the Horn of Africa.

increased to 26 from 21 the previous year, with 22 of them occurring in Gulf of Guinea waters.

AMERICAS: CALLAO CAUTION

The enhanced naval presence and cooperation between

South and Central American and Caribbean waters saw

coastal authorities in the Gulf of Guinea has clearly borne fruit

another year of welcome improvement for the region, with

in recent years, with the number of piracy incidents in the

just 19 incidents. Sadly, however, the lion’s share – 14 of these

region dropping from 84 in 2020, to 35 in 2021 and 19 in 2022.

incidents – took place at Callao anchorage in Peru.

But the slight upward trend noted during last year may signal the end of this encouraging trajectory.

The IMB PRC highlighted Takoradi Anchorage, Ghana, as one of the world’s top five locations for piracy and armed

According to IMB PRC, seven crew were taken hostage at Callao anchorage over the course of 2023, and guns and knives were reported in most of the incidents. This region therefore continues to represent a significant risk for crew.

robbery in 2023. It is important to note that some 80% of the incidents that occurred in Gulf of Guinea waters last year took place when the vessel was anchored or berthed.

HOW TO PREPARE It’s important to remember that the level of threat from

The number of crew kidnappings in Gulf of Guinea waters is

piracy and armed robbery, as well as the modus operandi

also on the increase, with 14 crew members kidnapped in three

of pirates, differs from one region to another - and it may

separate incidents over the course of 2023, compared to just

change quickly.

two in a single incident in 2022. IMB PRC statistics show that

Before entering a piracy-prone area, it is vital that vessels

the region accounted for some 75% of all reported hostages

obtain the most up-to-date information about threats from

in 2023, and the kidnapping of another nine crew in the region

security experts and local sources. The ship’s security plan

in January 2024 serves to further highlight the risks in Gulf of

should be reviewed in the light of any new information received

Guinea waters.

and a voyage-specific risk assessment carried out.

An uptick in piracy incidents off the coast of Somalia is

Crews must be briefed and trained on these plans and

cause for concern. While the number of attacks had been

the vessel’s emergency communication plans should also be

dropping in recent years, prompting the shipping industry to

regularly tested.

lift its Indian Ocean High Risk Area in January 2023, incidents

Given that vessels may be particularly vulnerable while at

appear to be picking up once more. In December 2023, the

anchor, crews should be hyper-vigilant when at high-risk ports.

IMB PRC reported the first successful hijacking of a vessel off

A proper lookout remains one of the most effective methods to

the coast of Somalia since 2017. Since then, the first quarter

protect a ship, enabling potential attacks to be identified and

of 2024 saw five more incidents in the Western Indian Ocean,

defences to be deployed swiftly.

including two hijackings and a vessel being fired upon. All

A longer version of this article was first published on

five of these incidents were attributed to Somali pirates and

www.gard.no. – ‘Piracy and armed robbery at sea – Gard’. l

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Dispatches

Salvors remain vital to free flow of trade

By James Herbert, Secretary General, International Salvage Union

S

ome years ago, the Executive Committee of the

But in recent years we have also seen several notable

International Salvage Union (ISU) was considering

incidents in which casualty vessels themselves have caused

the key messages that the industry should adopt to

the interruption. This has been demonstrated very clearly in

ensure that its value was recognised by the wider shipping community. Naturally saving lives and protecting the

the recent case in Baltimore (more anon).

However, the DALI’s Allison with Baltimore’s Key Scott

environment were foremost along with saving property –

Bridge was preceded by perhaps a string of other incidents.

both ship and cargo. But it was also agreed that we should

In 2016 the 19,000 TEU boxship CSCL INDIAN OCEAN

make more of the role ISU members play in “keeping ports

grounded in the river Elbe with potentially serious consequences

open and trade flowing”.

for trade into and out of Hamburg. She was refloated by ISU

We do not need to rehearse again the importance

member Smit Salvage after many days of dredging and with a

of shipping to world trade: it is fully recognised. And

dozen tugs. The channel did remain open to the significant port

destabilising events like the wars in Ukraine and recently

but there were restrictions, and it does not take a great leap of

the Middle East - leading to attacks on merchant vessels

imagination to see the potential consequences had the main

in the Red Sea and its approaches - only serve to remind

channel to Hamburg been blocked.

politicians and consumers how much we rely on a small

Similarly, in 2017, the CSCL JUPITER grounded in the

number of shipping lanes (often passing through choke

Scheldt outbound from Antwerp. Salvors, ISU member

points) many of which are subject to threat.

Multraship Towage & Salvage, assessed a grave risk of

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Ship Management International

33

Dispatches

CSCL JUPITER is refloated after grounding in the Scheldt outside Antwerp

serious structural damage and worked quickly with an

enormity of these vessels makes handling them as

array of tugs to rapidly refloat the containership. Had she

casualties very challenging - for example, reaching up

been unable to refloat, Antwerp – the second largest port

and over the top containers on the deck (maybe 150

in Europe – would have been blocked as the grounded

or more feet above water level) to remove them, then

JUPITER was a hazard to navigation and interfering with

to transport them to available wharfage for temporary

the main channel of this difficult waterway.

storage and backload them.

And the world looked on at the grounding of the EVER

It is testament to the ability, experience, people and

GIVEN in 2021 which blocked the Suez Canal for six days

equipment of the professional salvors - the ISU members -

causing significant trade interruption. Again Smit Salvage

that all of these incidents had a satisfactory conclusion.

But there is concern about the sustainability of the

re-floated the containership.

Not long after the Suez incident the EVER FORWARD

industry. ISU statistics show that gross income for all ISU

grounded in the Chesapeake Bay in the US in 2022. She

members was down by some 40 per cent in 2022. We

was refloated by ISU member Donjon-Smit after lightening

await the 2023 numbers but a major turnaround is not

of some 500 boxes by crane barge and substantial

expected. Returns in the salvage industry have always been

dredging operations.

variable but any sector facing that kind of contraction must

And now we have seen in real time the DALI Francis Scott

be concerned. And we know that our key stakeholders

Key Bridge disaster at Baltimore. The response involved

recognise that the industry must be sustained – they say so

substantial assets and clearance work by Donjon and others

publicly. But it needs adequate funding.

and the vessel was refloated by ISU member, Resolve Marine.

The ISU position is that awards under Article 13 of the

The common theme of all these incidents is the actual,

1989 Salvage Convention - that is to say ‘no cure, no pay’

or potential, interruption to trade in blocked or impeded

with the contractor talking all the financial risk and only

ports; the stranding of large values of cargo on the vessels

being paid based on an assessment of the value of the

and the wider disruption to other shipping.

ship and cargo saved - must remain the cornerstone of the

These incidents also all involved containerships

industry. It is essential to fund the investment in people,

which, in the ‘just in time’ logistics model, are the

training and equipment that is needed to continue to

world’s warehouses as well cargo carriers. And the

provide professional services around the world.

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Dispatches

The best contract for most emergency response

toxic materials as well as plastic nurdles which have been

situations remains the Lloyd’s Open Form and the ISU

identified as one of the most damaging pollutants due to

promotes and encourages its use and has worked had with

their persistence and difficulty in recovery if lost.

With increasing vessel size the quantity of bunkers

other to increase its use even though there is no expectation of a return to the days of 100 or more LOFs each year.

Increasingly we hear insurers worried about the cost of

involved in casualties can be substantial. The cases ISU members deal with annually typically include

salvage but when considering awards, we must encourage

about a dozen cases with more than 2000 tonnes of

owners and insurers to recognise the value preserved by

bunkers on board. In an era where, rightly, one tonne

salvors and not focus on the cost.

of bunkers over the side is unacceptable this is a

No piece on the salvage industry is complete without

huge contribution to environmental protection, to say

reference to the vital contribution that the salvage industry

nothing of the huge costs and reputational damage

makes to protecting the marine environment. In many

that might otherwise be incurred.

situations it is only the professional salvors that stand

Considering the ISU’s key messages, it is not difficult

between a casualty and an environmental catastrophe.

to make the case for the professional salvor. And the cases

In 2023 ISU members provide services to vessels carrying

highlighted above, and so visible to the general public,

1.9 million tonnes of potential pollutants. It included

show clearly the importance of the professional salvor in

187,000 tonnes of crude oil and 400,000 tonnes of

keeping ports open, trade flowing and the environment

containerised cargo likely to include various hazardous and

clean and preserving the value of property. l

Round-the-clock DALI salvage operations undertaken

Scale of the problem faced after March 26 M/S DALI accident

400-foot-wide swath of the federal channel cleared

by May 20, permitting all pre-collapse, deep-draft commercial vessel transits of the Port of Baltimore

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Digitalisation Due diligence needed for digital transformation, says OrbitMI

R

apid technological change, complex regulation and

now investing in product development to expand its suite

competitive pressures are driving digital transformation

of applications predicated on the Orbit vessel performance

in the shipping industry. But navigating a confusing

monitoring platform after recently forging a landmark

software landscape can be difficult and sound decision-making is essential to minimize innovation risk, according to OrbitMI. Industry spending has soared in recent years on intelligent

partnership with class society Bureau Veritas.

Riaz believes the collaboration with BV strengthens OrbitMI’s position in the marketplace as a trustworthy supplier

process automation solutions geared to boosting efficiency,

of sustainable solutions, giving clients clear visibility about

reducing costs, curbing emissions and improving safety for

its ability to cater to their requirements over the long haul as

shipping companies, with research firm Thetius estimating this

technology evolves in tandem with shifting regulation. This

market will grow at a CAGR of 13.8% to reach $26bn by 2027.

is especially important given the need for new data-driven

The benefits of these solutions, intended to automate time-

solutions for decarbonization to gain compliance with green

consuming manual tasks and eliminate human error, are clearly

regulations such as the EU ETS, CII and upcoming FuelEU

evident, with Thetius citing a 95% increase in productivity, a

Maritime, he adds.

30% reduction in costs and time savings of up to 30% among

According to Thetius’ recent study ‘Navigating new

companies surveyed for its study ‘Avoiding the digital divide’.

financial seas’, among the challenges with digital adoption

Inevitably, this has given rise to a frothy digital marketplace

are sourcing and implementing future-proof technology that

with an ever-growing array of applications in areas such as

remains relevant and delivers value over time due to rapid

voyage optimization, vessel performance monitoring, cargo

technological evolution, as well as adopting solutions that are

and vessel tracking, pre- and post-fixture, procurement, crew

integrable with existing systems and can be adapted in line

and vendor payment, as well as other administrative tasks.

with changing business needs. Consequently, it states that new

The latest overview of the maritime technology landscape from Skysail Advisors shows there are now around

solutions should be “high-impact, agile and scalable”.

Given financial risks, shipowners and operators must

160 software vendors - of which 24 alone are offering vessel

carefully assess the cost-benefit ratio in making digital

performance monitoring solutions - with ongoing merger

investments, considering potential efficiency gains, operational

& acquisition activity and company exits affecting the

improvements and long-term savings to justify the initial outlay.

composition of this market.

Return on investment (ROI) can be a moving target, dictated

Against this backdrop, OrbitMI’s CEO Ali Riaz emphasizes

by how well aligned the digital solution is with the actual

the importance of due diligence in decision-making processes

needs of the business, integration with existing systems and

when making software investments, with the potential longevity

compatibility with the end-user, which can all prolong the time

of the vendor a key factor.

to payback.

“Companies need to dive deeper before deciding by

Maritime technology specialist Jochem Donkers, principal

determining what they want to achieve at a strategic and

consultant with Skysail Advisors, believes a lot of technology

tactical level. Think quality over haste. There is risk on both

adoption is “more push than pull”, with some opportunistic

the buyer and vendor side, so finding the right product fit and

vendors looking to capitalize on market demand by promoting

focusing on long-term partnership are beneficial for all parties,”

products that are innovative yet do not have a product-market

he says.

fit and may not meet the requirements of the shipowner to tackle a specific task.

SUSTAINABLE SOLUTIONS

Donkers says, while any IT project will have a degree

New York-based software-as-a-service (SaaS) company

of uncertainty, shipping companies need in-house

OrbitMI, which was spun out of Stena Bulk five years ago, is

competence to evaluate vendor offerings when

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Digitalisation

developing digital systems, in the same way as a naval architect is needed to design a ship.

“There needs to be an understanding of the scope of what is needed and an assessment of risk. The more one understands about the opportunities and limitations of

Riaz says: “The most acute pain point for shipowners is opportunity cost due to time wasted on implementing a solution that did not work, especially with the clock ticking on new regulation.”

OrbitMI is easing the process of technology adoption and

technology, the more one can understand and de-risk digital

mitigating financial risk through its subscription-based SaaS

investment projects,” he says.

platform that can be trialled with no upfront costs, unlike ‘black box’ solutions that typically require heavy investments in IT

DECISION-MAKING FRAMEWORK Thetius proposes a decision-making framework that entails

infrastructure and can often entail protracted implementation processes with lots of trial and error.

identifying the challenges of technology adoption, assessing

In contrast, the Orbit platform is essentially a suite of

the potential of digital tools and reflecting on the process

scalable and adaptable solutions that are compatible with

through a feedback loop to determine whether these tools are

existing systems, which enables rapid onboarding. Multiple

performing in line with expectations and business needs.

APIs from various vendors are integrated into the platform to

The research firm’s strategy director Nick Chubb told a

facilitate data-sharing with intelligent connected workflows and

recent ‘All hands on tech’ webinar that Thetius hosted: “Often

actionable insights that can deliver greater productivity, versus

we can end up with a sub-optimal solution because we do not

siloed data systems that hinder interaction between company

ask the honest reflective questions: is this working effectively

departments and slow down business efficiency.

and doing what was intended, and are we getting the

“To make effective progress with innovation, shipping

expected return on investment? Having that reflective process

companies must have a clear understanding of their

means better decisions can be made going forward.”

requirements and definite criteria to evaluate vendors based

The price of failed IT investments is not only lost time and

on their longevity, credibility and ability to provide future-

money, but also that technology adoption becomes stalled and

oriented, flexible and collaborative solutions tailored to

companies may be left with systems that can quickly become

the needs of the end-user that can deliver value in the long

outdated amid the fast pace of innovation and a shifting

run,” Riaz concludes. l

regulatory environment.

Ali Riaz, CEO, OrbitMI

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Digitalisation

Nordic data skills shortage looms

By Kenneth Johansen, Business Development Manager at online freight-fixing platform Sea.

W

hile the maritime industry

But while digitisation underpins these

the standards that govern the collection,

may not be synonymous

technologies, data standards are the

use, and exchange of data across

with being at the cutting

foundation of digitisation in shipping.

shipping workflows.

edge of innovation, the Nordics have

This means that a shortage of data

From there, data standards can go

historically bucked this trend. Compared

skills will stunt innovation in the maritime

a long way in streamlining processes,

to other regions, we see a more

sector. Luckily, when speaking to our

improving our progress towards

progressive approach to technology

clients and peers in the Nordics we see

sustainability, and reducing potentially

adoption and a greater willingness

a growing acknowledgement of this. A

costly disagreements. For example,

to embrace digitisation. In fact, with

staggering 80% of ship owners believe

when a ship is chartered, factors like fuel

Finland, Denmark and Sweden regularly

expertise in IT and digital competency

consumption, speed, and emissions will

featuring in the top four spots of the

will be paramount in the coming decade.

be monitored by a number of parties.

Digital Economy and Society Index

As an industry, we must address the

If everyone is referring to the same

(DESI), its unsurprising to see this

scarcity of data experts. This way, we’ll

source of truth, the chances for differing

naturally translates into their maritime

be ideally positioned to implement the

data on emissions are slim, reducing

sector as well.

innovations that are already delivering

the impact of inconsistent grades and

However, analysis from the

efficiencies and new revenue streams in

ratings for vessels.

Norwegian Shipowners Association

other industries. After all, implementing

Adopting data standards is a

reveals a growing shortage of digital

analytics to bolster decision-making is

challenging, industry-wide endeavour -

skills, which could slow the region’s

undermined if an organisation lacks the

but a worthwhile one. It’s the first step

digital transformation - and perhaps

capabilities to understand and action

in truly modernising one of the world’s

the long-term prosperity of this sector

those insights. Admittedly, addressing

most ancient industries. In essence,

as a whole. And while the region

this will take time. But through

these standards are a bridge, connecting

leads on digitisation, data standards

partnerships with leading universities,

the Nordic maritime industry’s

remain another important obstacle that

proactive upskilling and training, that skill

aspirations for digital transformation

may slow the adoption of connected

gap will narrow, if not close eventually.

with the reality of its digital skill gap.

Through strategic investments in

technologies in the coming years.

Data standards needed

talent development and technology

of emerging technology such as AI,

With these skills in place, the

infrastructure, the Nordics are poised

IoT or advanced analytics is crucial to

maritime industry will be much better

to lead the charge towards a digitally

driving growth and improving efficiency.

placed to come together and agree on

empowered maritime future. l

Like in other industries, the adoption

38

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Issue 109 May/June 2024

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Going from A to B: Ferries’ unique safety challenges and the role of data

Tallink Silja’s Baltic Queen

NAPA Stability for Ferries

By Markus Tompuri, Chief Stability Officer, Safety Solutions, NAPA

T

he global ferry industry transports over 4.3 billion

reporting and regulatory requirements are all changing the

passengers every year, which puts it at par with the

way organizations operate, from the bridge to the boardroom,

commercial aviation sector, according to a study

and are pushing the sector towards greater accountability and

conducted by Oxford Economics on behalf of Interferry. It is a

transparency. The industry is already tackling these challenges

vital service for many communities, but as one of the shipping

and adopting digital tools to empower crews to make better

industry’s most ‘visible’ segments to its end customer, ferry

informed, time-critical decisions on passenger safety that are

operators are also under increasing public and regulatory

grounded in data.

pressure to transform their operations to become more efficient, safe and sustainable, while maintaining profitability.

Why now?

Unlike the rest of the industry, however, ferry operations

Data has always had a key role to play in ensuring ferries

have their own safety and stability challenges due to multiple

remain stable, safe and efficient. Today, with the introduction of

daily loading and unloading to tight schedules, compounded

cloud-based technologies, crews and their colleagues ashore

by the task of transporting heavy vehicles and potentially

can tap into new opportunities for more streamlined data

dangerous cargo. In addition to this, operators need to

collection, analysis and reporting, and do more with the data

accommodate frequent changes in vessel weight distribution,

they have. This includes better day-to-day communication

due to fluctuations in passenger bookings.

between shoreside and offshore teams and access to live

Above all, ferries transport people which means continuous investment in safety is non-negotiable.

shipboard data on all safety aspects of a fleet, from loading conditions and stability margins to watertight doors status.

The inherent complexity of the ferry sector comes to

This enhanced communication between teams

the fore in the face of shipping’s digital transformation and

provides vital, real-time information for the continuous

decarbonization. Cloud-based stability management, rising

monitoring and dynamic adjustment of the ship’s stability

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Issue 109 May/June 2024

Maritime Safety

parameters by crew and shoreside

Grandi Navi Veloci vessel serving Italian islands

teams alike, which is critical in case of an emergency.

Data and advanced stability software can also be used to help ferry operators perform rapid stability and loading calculations to account for dynamic cargo loading. This is why we launched NAPA Stability for Ferries, to respond Alongside this, digital stability

to the sector’s unique demands. The

within a short time, high passenger

platform’s calculations are based on

volumes, strict environmental regulations

management solutions can also help

NAPA’s advanced 3D modelling, which

especially near highly populated busy

with deadweight optimization to reduce

accounts for the ship’s unique design,

waters, and complicated customs and

fuel consumption and remain safe

and uses this to cover a wide range

immigration requirements.

and stable. This is done by reducing

of calculations related to hydrostatics,

Navigating this complexity and

unnecessary ballast water or adjusting

intact stability, damage stability, and

managing tightening record-keeping

the vessel’s speed and trim to minimize

longitudinal strength.

requirements is where electronic

resistance and improve efficiency. In the

record-keeping and cloud-based

longer run, this performance data can

and Tallink Silja Line announced their

data management are critical. Digital

be analyzed to build operational models

adoption of NAPA Stability for Ferries,

data-capturing tools such as NAPA

that are tailored to each ship and will

with installations already confirmed

Logbook take some pressure off the

help maximize their fuel efficiency on a

on seven GNV vessels and ongoing

crew by automating data entries

given route.

sea trials for Tallink Silja Line on their

and simplifying all technical and

vessels Silja Serenade and Baltic

environmental reporting, like EU-

Queen. Their investment in digital tools

MRV, MARPOL, ESG, CII, and more.

reflects a commitment to enabling

Building on experiences in the cruise

their crews to make faster, easier and

sector, the same data collected

cornerstone for informed and reliable

more reliable decisions that enhance

through electronic logbooks for

decision-making. It will continue

operational efficiency.

regulatory compliance also opens new

to ground safety, environmental,

Recently, Grandi Navi Veloci (GNV)

These safety insights can boost

Towards better data management Data has and always will be the

opportunities to optimize all areas of

operational and commercial decisions

operational efficiencies, allowing

ship operations, from ESG, greywater

based on each vessel, fleet, and the

operators to do more with the data that

management, and seafarer workloads

sector’s unique operational profile

they already have at their fingertips.

and downtimes.

and challenges.

NAPA’s partnership with Stena Lines is

Given that vessels typically travel

testament to the long-term benefits of

short distances on regular routes and

to enhance its reporting and

cloud-based performance monitoring and

return to the same ports, ferries have

transparency on the journey to

reporting systems in enabling a smooth

unique decarbonization challenges and

net-zero, advancements in digital

exchange of information between ships

opportunities. The sector faces limited

technologies are allowing teams to be

and shore, supporting improved decision-

options to optimize routes because

more ambitious and assured in their

making, predictive maintenance, and

vessels travel on pre-defined itineraries.

strategies than ever. Ferry operators,

operational optimization.

This means it can’t rely on weather

and the industry more broadly, can

routing to save fuel and emissions.

rely on digital solutions to inform

While the sector continues

Next stop: Tighter regulations

Nevertheless, the sector can still

their decarbonisation efforts in the

The world we operate in is changing

accelerate its decarbonization and is

immediate term, while gaining the

and ferry operators are not immune

one of the most promising shipping

data and insights to plan for the

to the universal challenge facing the

segments for batteries and fuel cell

longer term.

shipping industry for compliance with

technologies. Back in 2015, the sector

reporting requirements. But what does

saw the entry into service of the world’s

that there doesn’t need to be a

make the ferry sector unique is factors

first electric ferry in Norway, and many

trade-off between good business and

such as crossing multiple jurisdictions

more since.

doing good. l

This is driven by the conviction

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43

Regional Focus

Singapore strengthens as an IMC but higher costs are beginning to bite

A

ccording to the latest edition of the

and digital technologies has enabled Singapore

Menon Economics Leading Maritime

to regain its position. On the Maritime Finance

Cities of The World 2024, Singapore

and Law pillar, Singapore has climbed significantly,

continues to be the leading maritime city in the

going from 8th to 4th Place. However, Busan

world unaffected by the global conflicts and the

overtook Singapore and has the leading position

rising environmental changes of the industry.

in the Maritime, Technology, leaving Singapore in

Singapore has retained its spot as a world-

2nd Place.

leading maritime hub due to being ranked as number one in three out of five pillars.

maritime centre continues to remain

It continues to maintain its leading position

unchallenged but the spectre of rising costs still

in the Attractiveness and Competitiveness pillar,

refuses to go away, forcing many companies to

and has reclaimed its top spot in Shipping Centres

reassess the way they use the City state to their

and Ports and Logistics, overtaking Athens and

maritime advantage.

Shanghai respectively. A consistent strategy for innovation and investment in green transformation

44

Singapore’s position as a major international

Ship Management International

Issue 109 May/June 2024

As one industry leader told SMI, companies are still choosing Singapore because of its

Singapore Report

geographical position and its influence in the region,

according to Demetris Chrysostomou, Managing

but they are outsourcing a lot of their services to

Director Asia region, the Group has succeeded

cheaper centres in the region such as Manila and

in being viewed as a global entity with a strong

India, leaving Singapore as the base for the senior

presence in Asia. Shedding previously held

director, the ‘strategists of the businesses’.

perceptions of being a European shipmanagement

From the Columbia Group’s perspective,

company has resulted in a larger and more effective

Singapore remains very important because it gives

footprint in the region. All of this against the

the Group a regional base for managing Asia.

backdrop of the Group having a major presence

And there is no other jurisdiction in Asia which

in Singapore; a ship management office and

gives companies like Columbia, the tools it needs

representation in Shanghai; a representative offices

to operate a central base. It has the international

in Japan, Korea and Taiwan as well as a CSM Manila

credentials that other countries in the Far East still

office and Columbia Aurus Shipmanagement in

struggle to emulate.

India. In addition, the Columbia Group also owns/

Cracking the Far Eastern market has been a strong priority of the Columbia Group and

partners and operates Manning Agencies in Philippines, China, Indonesia, Vietnam and India.

Issue 109 May/June 2024

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45

Singapore Report

Photo credit: MMXeon / Shutterstock.com

“So if you look at the developments

Demetris Chrysostomou again: “I

office in Shanghai Office getting a lot of traction here.

over the last couple of years, our

think there are a number of factors at

footprint in Asia is becoming pretty big,”

play. If we look at the Chinese market,

said Mr Chrysostomou.

it is maturing but we have always

that more and more vessels are

had a challenge with this market

being outsourced. So third party

pushing in the market, raising the

because while there are a lot of large

management is becoming more and

profile and we are starting to see clients

shipowners there, a lot of things were

more important to them and they are

in the region viewing Columbia as a

carried out in a localised way. Yes, the

becoming more interested in the value

global company with a significant Asian

Chinese market has matured rapidly

added services,” he said.

presence and capabilities. As a global

and grown rapidly but with this

group, I think this is also coming across

maturity and growth, they have also

Korea, where the managers there are not

pretty nicely. People are starting to

become more international.

that international, groups like Columbia

“These regional offices are actively

“Taiwan is very similar in

As with countries like Japan and

can offer the access to international

understand that shipmanagement is a

“The Chinese market at least, is

core but we are actually an integrated

looking more and more to international

products and markets that they may not

maritime services, logistics, energy and

ship managers. Yes, it’s still third party

have access to themselves, he stressed.

leisure platform with a lot of value to

ship management they’re looking for,

Goodwood Ship Management

bring to clients and through these group

but whereas before they were looking

has seen its fleet grow to 45 vessels,

companies we are developing business

for it on their terms with managers

with the emphasis on tankers – 24

directly with ship owners actively in Asia.

working in the localised way they did

VLCCs, four Suezmaxes and one LR

So, we are also managing to get traction

things, with impetus more from the

tanker, not to mention 13 bulk carriers

on that. It’s not just the message. We’re

commercial side, they’ve become more

and three containerships – but it is

also starting to see business being

global and international ship managers

adamant that it remains a medium-

developed for some of these platform

are becoming more important. But of

sized ship management company,

companies in Asia,” he added.

course at the same time.

mostly catering for the needs of its shareholders plus third-party clients.

But how is the market is

“They still expect management

Asia changing and what are the

out of China because it is important to

A target fleet number of 50-60

principals demanding?

them. Therefore, we see our Chinese

ships seems reasonable, believes

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Kamal Uddin Ahmed, company Chief

tankers were not doing that great

comply with all the requirements of

Executive Officer.

business, so they diverted to the bulk

the oil majors. So we want to work

Goodwood’s major customer is

carrier sector and they asked us to

with ship owners who are in line with

DHT, Norwegian-based but publicly

manage their ships because we were

our thinking,” he said.

listed in the US. As well as being

managing their tankers before.

“So that’s how we ended up with

a customer, they are also a large

It is important that the Goodwood team is able to manage its vessels to

controlling shareholder at more than

bulk carriers. But we are not very

its standards, so there is uniformity

50%. Because they are the controlling

keen to expand on the bulk carrier

across the fleet. “Because if we do not

shareholder, there is a tenuous

side actually, we are very keen to

have full control of every aspect of the

link between Goodwood and the

expand on the tankers side.

ship management process, then the

US equity markets. Another larger

“So we want to be a boutique

quality changes, and we don’t want to

customer is NGM from Greece, as

ship management company, we are

see that. We are very much focusing

well as SINGFAR in Singapore as well

not here to expand and increase

on that, to maintain a standard quality

as Norse Management, owners of the

the number of ships, we don’t have

across the fleet. We want to do

three containerships.

that strategy at all. Our board is

business with quality ship owners, and

very, very clear on that. We will be

we want to maintain our reputation in

operator, from the very beginning, we

focusing with only the quality ship

the oil industry,” he added.

opened the company in 2008, we are

owners, those who are similarly-

Headquartered in Singapore,

mostly focusing on tankers. NGM also

minded to us, and we can control

Goodwood has a crewing office

started with us with the many tankers,

our standard, the Goodwood

in Mumbai where it sources all its

but over the last couple of years, the

standard. And our standard is to

officers from.

“So we are actually basically a tanker

Kamal Uddin Ahmed, CEO, Goodwood Ship Management

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Singapore Report

“No, this is the headquarters, this is the head office.

We have our subsidiary office in Mumbai, only for crewing. This is our own company in Mumbai as well as a dedicated training centre, we have got all officers from India. Investing in its officers from cadets is important to the company “and we try to maintain this unless we suddenly see an expansion of our fleet, when we have to hire people in from outside,” he said.

But in line with the industry, the main concern facing companies like Goodwood is sourcing quality crews.

Especially on the bulk carrier side.

There are not too many shipping companies that can boast a lifeline as long as Wallem but at 120 years old it has a lot of experience and knowledge at its disposal. But despite this, its Managing Director of Ship Management Ioannis Stefanou remains focused on what fleet growth means for the company.

“We’re very much positioning ourselves as a medium size ship management company being able to provide the tailor-made solutions we don’t think that the biggest ship management companies are able to provide.

“They say they can, but I don’t really believe they’re able to give that attention to the owners that we can give as a medium-sized manager,” he said.

“Our key focus is to understand our ship owners’ strategy and growth plan and see how we can partner with them, to actually support them and to actually support them to achieve their aims, and, of course, support them to actually make money to meet their targets,” he added.

According to Mr Stefanou, the company currently manages between 170 and 180 ships and is looking at a 50% sustainable growth pattern over the next three to four years. Certainly targeting shipowners with 10 to 20 ships, fleet sizes that are just that little bit too small to offset the higher in-house management charges related to the increased regulatory environment.

As Mr Stefanou added, its all about being transparent: “Its about playing with open cards with the shipowners and not about us telling them this is the Wallem way. We look at how they conduct their business and see how we can add value”.

And it is the Asian and European market where the growth can come from, according to Wallem.

“Many of the European owners see us as an extension of their technical teams and work more closely with us on a day-to-day basis. One thing we have seen change over the last four to five years is that some owners have a preference on making sure that their management team is sitting fairly close to where they are.”

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Pressures over crew availability will mean that

various positions in Ship Management, Marine Insurance,

more and more ships will start to move into third party

Post Chartering & Consultancy Services, with his last role

shipmanagement, as owners look to take advantage of

having been the head in Eurasia’s business development

their supply of competent seafarers. Having a manager

activities in Europe & Asia. When Eurasia merged with

for your vessels allows you to scale up or down your

parent company – Bernhard Schulte in 2007, Rajiv was

fleet as required,” he said.M.T.M. Ship Management is

appointed Director Crewing Services.

another ship management company with realistic growth

In 2011, he joined M.T.M. Ship Management Pte

strategies on its mind as well as a sensible attitude to

Ltd in Singapore as General Manager for their ship

the decarbonisation debate. Managing a fleet of over

management services & worked in that function until

70 chemical and product tankers as well as handysize to

2020 when he was appointed Managing Director of

supramax bulk carriers, it recently established Tristar-

M.T.M. Ship Management.

MTM Ship Management, a joint venture ship management

“We have implemented a very robust energy

company with a major UAE energy provider to expand

management plans for ship and shore, individually and

services in the Middle East.

together, something that is being monitored on a daily,

“The environment was always very important but now

weekly and monthly basis by the shipowners.

the regulators have forced the environmental regulations

“The industry is moving towards cleaner fuels like

on us, which I think is good because we should protect

LNG, ammonia and methanol and there are ships on the

the environment for future generations. But I see

water burning ammonia, methanol and good LNG. This

decarbonisation as an opportunity, not a problem,” said

definitely requires a lot of training for the ship’s crew as

Capt Rajiv Singhal, Managing Director.

well as the shore staff because they are not conventional

Rajiv Singhal began his sea career in 1983, sailing as Captain on OBOs and large crude tankers with Orient Ship

fuels,” he said.

Agreeing that the process was more of an evolution,

Management (Hongkong) and Acomarit Ship Management

Capt Singhal said that in his opinion biofuel was the

(UK) until 1998. In 1999, he came ashore for Eurasia Ship

best alternative for existing ships. “We have conducted

Management where, between 1999 and 2007, he held

experiments with biofuel on our ships and we have seen a

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Singapore Report

reduction in our emissions. Technically, it is also the

some small and negligible deviations to the course-

most economical solution,” he added.

line, but in turn, optimise rudder movements. It

Executive Ship Management takes its ESG

management of hull and propeller cleanliness

collaboration with its ship owners and partners to

contributes positively towards fuel performance and

operate vessels in an environmentally-friendly and

reduction of carbon emissions. The shipboard team

more efficient manner.

regularly monitors engine performance to identify

One of its ongoing projects focuses on

54

is well-established in the industry that the timely

responsibilities very seriously and works in close

if there is increasing hull and propeller resistance

navigational operations aimed at reducing emissions

due to fouling or other reasons. If the engine

from ships. Aiming for a lowering of fuel consumption

performance and diagnosis prompt a need for such

by 0.25% to 1.5%, and consequent reduction in

course of action, propeller cleaning and/or polishing

emissions, the company has implemented the

as well as hull cleaning is undertaken as soon as

optimum tuning of a ship’s autopilot system on

time and schedules permit. Other strategies include

selected vessels in collaboration with its affiliated

encouraging its ship owners to adopt low friction

maritime training institute, SIMS. Optimum tuning

anti-fouling paint that help the vessels become more

of the autopilot system helps in reducing fuel

operationally efficient and benefit the environment

consumption and the associated wear and tear to the

by emitting less carbon into the atmosphere, the

ship’s steering gear.

company said.

The project aims to develop adaptive systems

This approach is slowly but steadily gaining

to be incorporated into the autopilot that allow for

ground as a good number of ship owners-taking

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Singapore Report

Tanker pools: why they work for the industry

I

ncorporated in early 2009, WOMAR began as a 50/50 joint venture between Heidmar, Inc and other investors.

Headquartered in Singapore, it operated the Marida Tanker

Pool (10-14kdwt Coated IMO II Tankers) and later expanded its partners to include other tanker pools – Stainless Tanker Pool (19-25kdwt Stainless IMO II ships) and Sakura Tanker Pool (Aframax Tankers).

April 2014 marked a new milestone when BW Group acquired Heidmar’s 50% stake in WOMAR. The Group made a purchase of 11x 20kdwt Stainless Steel IMO II chemical

Manish Jain

tankers, entrusting the commercial management of the entire fleet to WOMAR. In Sep 2019, FDX Offshore based in Westport, Connecticut acquired Womar. The purpose of the Womar/ FDX Offshore relationship is to build the best independent pool operator in the shipping industry. Anchored in Womar’s current chemical tanker pools, the partnership intends to both expand its chemical tanker & product tanker pools by adding Orca Tankers Pool (25- 29k DWT IMO II ships) and Denali Tankers Pool (30- 40k DWT ships) as well as initiate and grow independent pools in other classes of ships.

Today, it continues its founding quest as specialists in the commercial asset management of chemical and oil tankers and trades worldwide with a focus on chemicals, vegetable oils, clean and dirty petroleum products and crude oil.

SMI caught up with Manish Jain, Chief Operating Officer at Womar Logistics in Singapore to explain the motivation behind the pool strategy.

“The pools make a perfect platform for owners who do not have sufficient fleet to open worldwide offices. They are pure investors and ship owners who want to enjoy market earnings rather than giving the ship up on fixed time charter.

“So, we will pool all the ships from some investors and ship owners and once we have the fleet of ships, we can take cargo contracts and provide services to the charterers. If a vessel breaks down, we can provide another ship. So, there’s the reliability on the service side and after that it is down to your track record, your earnings, your transparency, and how good you are.

Your performance, your reputation and the fees you charge and the earnings are delivered,” he said.

“It’s all about the commercial management of the ships but in a pool you will definitely offer way more than what a time charter can offer because a pool is like a partnership for certain reasons,” he added.

But the adverse effects of a rising market are that some owners will sell their vessels because they can secure higher prices. What is your view on this?

“You have to have a constant supply of ships and you need to have skin in the game. So we are buying ships ourselves – 30% of the ships in the fleet are owned by us. The rest are very close partnership owned, old time-chartered or long-term arrangements,” he added. l

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Singapore Report

heed of the potential benefits to the environment despite

requirement of Energy Efficiency Existing Index (EEXI)

the forbidding initial cost - are coming forward to coat

which will also be a major factor in reducing emissions

the vessels with low friction anti-fouling paint. This,

from our managed vessels. In addition, as an initiative to

undoubtedly, is one initiative which will pay rich dividends

minimise the environmental damage due to emissions,

in the long run.

a number of its managed vessels are fitted with an

In a joint effort with its ship owners, ESM has

exhaust gas recirculation (EGR) system which reduces

proposed and retrofitted vessels with greener

the production of NOx. Biofuel Trials Alternative fuel

technology that will help to reduce emissions of

is another route that the industry is exploring through

particulate and carbon. Out of all its managed vessels,

a wide range of research and technology. ESM has

around 35% are fitted with an Exhaust Gas Cleaning

collaborated in such exploration, providing valuable live

System (ECGS) which has significant benefits in reducing

data and feedback from ships towards validating the

SOx content from emissions. Its vessels are also fitted

research findings. Since 2020, ESM has been conducting

with other energy-saving devices and techniques

trial runs with biofuel, VLSFO, B-30 and LSMGO B-50 and

that indirectly reduce emissions such as Mewis Duct,

has received the green light from classification societies,

Propeller Boss Cap Fins, Emulsified Fuel System, Rudder

flag states, and engine makers. It has explored the

Bulb, Variable Frequency Drive Motors, and Waste Heat

potential of implementing the use of biofuels with one

Recovery Optimisation.

of the largest ship owners, Trafigura. With the switch to

The process of fitting Engine Power Limitation on board vessels is also currently underway to meet the

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alternative fuel, ESM is hopeful for a reduction of 25% in carbon emissions after deducting biogenic carbon. l

Ship Repair Repair yards adapt to constant change Bolstered by demand for environmental-led upgrades to vessels, the ship repair industry continues to prosper, despite ongoing disruptions such as the Red Sea crisis and new technical demands of alternative fuels

“G

enerally, the shiprepair and conversion market in West Europe, and whole of Europe, has been very positive,”

says Gibdock MD Richard Beards, with the yard “exceptionally busy” since November 2021.

“This year has seen a full occupancy rate of all three drydocks,” he continues, together with a strong orderbook for the future. “So both shiprepair and Gibdock are in a very solid place.”

Of course, one reason that the yard has not noticed any downturns due to disruptions such as vessels choosing the longer Cape route rather than risking passing through the Red Sea is Gibraltar’s geographical position at the entrance to the Mediterranean, requiring little diversion in either case. “It reinforces Gibraltar’s strategic location,” says Beards. “In times of change location is key, and Gibraltar is second to none in that respect.”

On the subject of environmental technology refits, Gibdock has still been undertaking “the odd scrubber and ballast water treatment systwm installation,” he relates. “but what we’re seeing more is paint applications, where owners are trying to be a bit more advanced with higher technology of paint.”

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As regards the increasing adoption of alterative fuels, Beards feels that both Gibdock and the shiprepair industry generally are well equipped. “In port here we have

have six per trade – steelwork, mechanical and electrical – giving 18 in all.

The yard counts itself fortunate going forward in being

undertaken LNG dual-fuel retrofits,” he says, “and if we can

fully booked with a varity of clients – military, ferry, offshore

conquer that then I’m sure we can meet future demands.

(including windfarm and cable-laying) and superyachts. This

The industry generally is very good at reinventing itself and

represents “a nice blend of markets,” concludes Beards,

moving with the times.”

“which is important to us.”

In terms of Gibdock’s own facilities, it is currently

Attending the Asia Pacific Maritime event in Singapore

completing an upgrade of its 60 Hz shore power

this April, representatives from Colombo Dockyard in Sri

capabilities at the yard, “which is good for owners and the

Lanka likewise highlighted the yard’s strategic position,

environment.” Also, in conjunction with the Government, it

close to the main Asia-Europe trade route but far enough

is improving its apprenticeship scheme, where ideally it will

away from the Red Sea to avoid the turbulence in that

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Ship Repair

area. Sri Lanka also requires only minimal diversion for vessels calling the Indian coast, they pointed out, with the yard’s newly formed Rapid Response Afloat repair team able to be mobilised swiftly at any of the country’s major ports (Colombo, Trincomalee Galle and Hambantota) to attend to multiple types of afloat repair.

Colombo Dockyard is celebrating its 50th anniversary this year, having clocked up over 30 years of collaboration with Onomichi Dockyard of Japan in 2023. Last year also saw it complete a notable contract in the form of carrying out drydock repairs on a Very Large Gas Carrier belonging to Ravi Mehrotra’s UAE-based Foresight Group and managed by Wilhelmsen Shipmanagement, Malaysia.

Across in Greece, Chalkis Shipyards is also embracing innovation and digitalisation, signing with MTIS to implement an all-in-one digital platform, utilising a 360-degree approach to operations management.

This strategic move is set to boost end-to-end productivity, it says, delivering substantial sustainability gains and operational efficiencies through smarter operation, production, and supply chain management. The advanced digital platform will also enable realtime updates on vessel work progress, enhancing transparency and communication with clients.

ONEX Shipyards, with facilities on the island of Syros and at Elefsis, is one of Greece’s oldest and largest shipyard groups and one of the larger groups in the Mediterranean, carrying out repairs as well as newbuilding. It has been investing heavily in green technologies and has just joined the Green Award programme incentivising environmental frontrunners, in order to “help shipping companies make a just energy transition by cutting down their emissions to meet the net-zero target before 2050,” says Group President and CEO Panos Xenokostas, also President, Hellenic Shipyards Association.

“Whether it be consultation, design, construction, or maintenance, we provide tailored support to make it possible,” he adds, a comment that might well apply to the highly versatile and innovative shiprepair & conversion sector in general. l

Foresight Group VLGC at Colombo Dockyard

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Left to right: Rudder horn before and after repair; new tailshaft and propeller boss installation

SGS completes propeller shaft replacement and class-approved rudder horn repair while afloat

S

Upon the completion of the rudder

ubsea Global Solutions (SGS)

and installed a customized cofferdam

recently completed a challenging

to accommodate the damaged rudder

horn repair and its detailed Magnetic

underwater repair for a commercial

horn at the pier-side lay berth. This

Particle (MP) inspections and non-

shipowner whose vessel had suffered

cofferdam was carefully planned to allow

destructive testing and evaluation

severe grounding damage including a

for the safe and efficient installation of

of results (NDE), the final safety and

badly damaged propeller, partial loss of

a 10 ton plus main propulsion tail shaft

environmental checks and respective

the rudder horn, rudder damage, and

and enable inspections of the shaft line

approvals were given. This allowed the

even a bent main tail shaft. Due to delays

and its bearings to be completed. New

cofferdam to be removed, enabling

in receiving the replacement shaft line and

bushes and bearings were fitted and

SGS to proceed with the manufacturer-

rudder on-site, the emergency drydock

after all laser alignment checks and

approved reinstallation of the new

slot to complete the repair works ran

replacements were completed and

replacement rudder.

out and the vessel had to be towed out

signed off, it was time to install the new

Finally, each of the new variable pitch

unfinished to make way for the shipyards

replacement propeller tail shaft neatly

propeller blades were fitted one-by-one

existing priority commitment. With high

within the stern tube, something rarely if

by rotating the new propeller boss above

costs and insurance implications for towing

ever done with a ship afloat before.

water to restore the vessel’s propulsion

Back inside the cofferdam, the

system to optimal functionality. Project

to a distant drydock, an alternative option was needed.

damaged rudder horn needed to be

close out checks of all systems and rigorous

Kevin Peters, Director of

permanently repaired by welding on a

testing confirmed the success of the repair

Technical Sales & Environmental

newly cast steel section to the existing

work and smooth operation of the systems,

Services explained: “Leveraging our

structure. This task required technical

ready for the crew to sail again.

extensive experience, we submitted a

design modelling of what part of the

This repair project combined

comprehensive proposal, embodying our

rudder horn would be removed and the

several regular repairs that Subsea

‘thinking in the water’ philosophy. Our

qualifying a new DNV weld procedure to

Global Solutions undertakes multiple

Technical Services team and in-house

meet class approval for the permanent

times a year. By avoiding the need for

project managers crafted a detailed plan

repair. This task also highlights Subsea

drydocking, SGS minimized downtime

which was meticulously reviewed and

Global Solutions leading commitment to

and knock-on costs for the vessel owner,

accepted by all relevant stakeholders,

quality and safety – very few commercial

ensuring the vessel could return to

including the vessel owner, classification

diving companies or underwater service

service swiftly and safely. The project’s

societies, manufacturers, and hull and

providers possess inhouse technical

success underscores SGS’s expertise,

machinery insurers where applicable.”

services expertise that include a

dedication, and capability to deliver

dedicated welding engineer and design

high-quality, cost-effective solutions in

project team.

the marine industry. l

To enable the in-water repairs, our in-house diver technicians fabricated

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Innovative ‘cold straightening’ offers numerous advantages

I

n the maritime industry, the integrity of a vessel’s propulsion system is essential/paramount. If not addressed promptly, a bent shaft can lead to significant downtime, costly repairs,

and even more severe long-term damage. This is where the innovative technique of cold straightening comes into play, offering a lifeline to ships worldwide.

Cold straightening is a specialized process that restores bent shafts to their original condition without the need for heat.

MarineShaft, a leader in this field, specializes in the technique, which is fully approved by all major classification societies.

Their method involves the use of a hydraulic press capable of exerting up to 8,000 tonnes of force, straightening shafts ranging from 20 mm to 1,500 mm in diameter, regardless of

Paglia Orba propeller shaft bent after casualty

length. The work is truly craftsmanship and requires years of know-how and training.

MarineShaft’s pioneering expertise in cold straightening is backed by years of experience. Their service has been recognized since 1972 when Bureau Veritas first approved their cold straightening method.

The advantages of cold straightening are numerous and include: •

Permanent Repair: Classified as a permanent solution, the process returns shafts to a near-new condition, with a maximum deviation of just 5/100 mm.

•

Speed: Often, repairs can be completed within 24-48 hours, minimizing downtime.

•

Cost-Effectiveness: It is a more economical alternative to manufacturing new shafts.

•

Paglia Orba propeller shaft after cold straightening

Material Integrity: The metallurgy of the shaft material remains unaltered, ensuring longevity.

•

Environmental Impact: Cold straightening is an ecofriendly option, significantly reducing CO2 emissions compared to new production.

MarineShaft’s services have a global reach, with shafts

being straightened from all corners of the world. The universal approval of their technique means that wherever a vessel suffers propeller or rudder damage, cold straightening often emerges as the most profitable solution. MarineShaft is based in Denmark and receives rudder and propulsion equipment from all over the world.

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NG Explorer shafts cold straightening and crack test before and after (Liquid penetrant testing)

Ship Repair

Lathe capacity of 27-metre-long shafts

MarineShaft offers a large variety of repair services both

One of the worst bendings MarineShaft has repaired was

in-house and on-site. However, cold straightening is only

a bent propeller shaft belonging to the ferry Paglia Orba,

performed in-house. MarineShaft prides itself on its in-house

that a few years back damaged its propeller equipment due

cold straightening capabilities, ensuring that every repair

to a casualty.

is up to the highest standards of quality and precision. The

The almost 19-metre-long propeller shaft had a

fully equipped workshop ensures fast access to other repairs

deflection of 7.7 degrees - almost 250 mm out of centerline

that may be needed, such as laser cladding, lathe machining,

at the worst area. The intermediate shaft and twine tubes

and raw materials in stock for the replacement of liners, etc.

were also cold straightened. In this case additional repair of

MarineShaft’s comprehensive inventory includes a 27-metre

bearing journals was carried out by laser cladding, another

lathe, 200-ton lifting capacity, and two laser cladding units.

in-house repair method.

Approximately 100-200 shafts are cold straightened by per

MarineShaft’s cold straightening method is not only

year. Even minor deflection can cause huge damage to the

environmentally friendly and cost-effective but also time

vessel’s operation.

efficient. It’s a decision that keeps vessels operational and profitable, underscoring the company’s commitment to

REFERENCE CASES A recent job was for the famous National Geographic

providing top-tier service with minimal disruption to their clients’ operations. l

Explorer, which sails in the waters of Antarctica in wintertime and the Arctic in summertime.

The vessel was in drydock in Denmark when on-site runout measurements revealed deflection to both propeller and intermediate push rods measuring about 12 metres in length and Ø90mm in diameter.

The push rods were sent to MarineShaft workshop in Hirtshals for cold straightening.

This repair case also included manufacturing new push rod assembling flanges, and the advantage of in-house facilities came to bear with raw materials in stock for fast manufacturing.

The intermediate push rod was also modified with bonze liners, which were delivered from the manufacturer. In only 4 days the work was completed and with class approval from the involved classification society DNV.

Hydraulic press force 8000 tonnnes max diameter of shaft 1500 mm and no limitation to length

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Ship Repair

Belzona repairs propeller shaft on ship carrying Olympic torch

H

istoric ship the Belem navigated into the bustling port city of Marseille in May, marking the arrival

The Belem made her maiden voyage in 1896, the same year as the first Olympic Games

of the Olympic torch in France. Over 150,000

spectators gathered to witness as the Ship sailed into the bay, accompanied by over a thousand boats.

Last year, Alliatech, one of Belzona’s French distributors, had been involved in the restoration of this historical vessel, considered to be the last great French merchant ship, thereby allowing the Olympic torch-carrying voyage to take place.

As well as possessing an impressive 22 sails with a huge surface area of 1,200 m2 (1,435 yd 2), Belem has two 575 horsepower diesel engines, blending tradition with modernity.

Upon inspection, the propellor shaft on this 19th Century naval ship was found to be severely damaged, suffering from heavy corrosion and pitting. The customer was keen to preserve the shaft, given its historical significance; replacing it would be extremely costly, and they were reluctant to lose a piece of the original vessel.

It was vital that the chosen solution could reconstruct the damaged areas of the shaft and protect it from future seawater corrosion.

Alliatech, a Belzona-authorised distributor with over

Propeller shaft showed heavy wear due to seawater corrosion

40 years of experience, was chosen to carry out the repair.

The application took place whilst the Belem was in dry dock in the Saint-Nazaire Shipyards as part of the Ship’s extensive restorations. After grit-blasting and salt-washing the surface, the damaged propeller shaft needed to be reconstructed back to its original profile. Belzona 1111 (Super Metal), a repair composite for metal repair and resurfacing, was chosen for the rebuilding.

Two coats of Belzona 5821 were then applied to protect the shaft from future seawater corrosion. This product was specially designed to offer long-term protection from erosion and corrosion under immersion, thus providing excellent defence against the effects of salt water.

The application of these two Belzona products allowed the original 127-year-old shaft to be retained, avoiding the costly replacement, and maintaining an important piece of Gallic naval history. l

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Propellor shaft rebuilt using Belzona 1111 (Super Metal) after first coat of Belzona 5821

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Ad Hoc

First ever IMO Gender Equality Award Ms Despina Panayiotou Theodosiou, co-CEO of Tototheo Global, was honoured with the first ever IMO Gender Equality Award, presented by Secretary-General Arsenio Dominguez, for her role in empowering women during her tenure as President of WISTA International.

Ms. Panayiotou Theodosiou commented that it was a tremendous honour to have been chosen for the award. “Over the last 10 years raising awareness of the incredible work women are undertaking within the maritime industry and the importance of gender diversity, equity and inclusion have been a key focus for me on both a personal and professional level,” she said.

“With that said, we still have a long way to go, and I’d like to take this opportunity to encourage everyone to continue to break down the barriers, acknowledge the need for change and work together to create a more inclusive and diverse maritime industry,” she added.

The award recipient also extended her gratitude to the Cyprus President Nikos Christodoulides and Shipping Deputy Minister Marina Hadjimanolis for having supported her nomination. l

RNLI celebrates 200 years with mile-long flotilla As the UK’s Royal National Lifeboat Institution (RNLI) celebrated its 200th anniversary this year, more than 40 rescue vessels, including both current and historical RNLI lifeboats as well as international boats, came together to form a flotilla more than a mile long.

The flotilla, which closed the two-day event held in Poole, Dorset, consisted of more than 20 historic RNLI lifeboats, the current lifeboat fleet including the most modern 25-knot lifeboat, the Shannon class, alongside current inshore lifeboats and the RNLI inshore rescue hovercraft.

International lifeboats were welcomed as part of the two-day event having travelled from France, Netherlands, Germany and Sweden. The oldest rescue craft taking part was a Swedish rowing lifeboat from 1868 (pictured). l

InterManager ExCom member runs London Marathon for seafarers InterManager Executive Committee member Karen Avelino successfully completed the London Marathon in late April to raise funds for The Seafarers’ Charity (see also How I Work p.28-9).

Philippines-based Karen, who is Executive Director of Business Development Shipping for Philippine Transmarine Carriers (PTC), ran alongside her daughter Karmel Avelino, a graphic designer at Carnival Cruise Line.

The mother-daughter team have run several marathons in the Philippines but this was their first oversea. The world-renowned London Marathon covers 26.2 miles (42.2km) and takes in famous landmarks such as Buckingham Palace, The Cutty Sark and Tower Bridge.

Karen said: “I have accumulated 17 years’ of experience in the maritime industry at PTC, the largest crew management company in the Philippines. My daughter and I are determined to do all we can to help raise funds for our maritime professionals. Running the London Marathon under the banner of the Seafarers’ Charity is our way of expressing gratitude to the valued seafarers we serve.” l

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Posidonia 2024 breaks records, underlines greening of Greek fleet The 28th edition of the biennial Posidonia Exhibition attracted the biggest turnout of its 55-year existence with 32,527 visitors and a record 2,038 exhibitors from 82 countries and 23 national pavilions at the Athens Metropolitan Expo venue.

Opening the event was Prime Minister Kyriakos Mitsotakis, accompanied by Minister of Maritime Affairs and Insular Policy, Christos Stylianides; Union of Greek Shipowners (UGS) President Ms Melina Travlos; and Theo Vokos, MD of Posidonia Exhibitions.

Some 68 different maritime conferences took place at the exhibition and in Athens during so-called Posidonia ‘week’ - really more a fortnight these days - including a panoply of sporting events, including sailing, soccer, golf, basketball, running and cycling.

Posidonia 2024 also hosted its normal wealth of parties and receptions, featuring elements of the old and and new.

The traditional British Ambassador’s Reception, for example, was held at the Lighthouse rooftop venue atop the Stavros Niarchos Foundation Cultural Centre this year because the Ambasador’s Residence – one of Athens’ finest neo-classical buildings, formerly the home of Prime Minister Eleftherios Venizelos – was undergoing renovation.

Lord Mountevans of the UK House of Lords, also Chair of the Baltic Exchange and Honorary President of Maritime London, delivered one of the welcome addresses.

Meanwhile, Columbia Group had got the fortnight off to a flying start with its glittering evening reception for more than 260 guests at iconic venue the Four Seasons Astir Palace Hotel in Vouliagmeni (pictured). Navios then held a series of eve-of-exhibition events at its offices on the famed Akti Miaouli waterfront of Piraeus.

Another major Greek shipowner prominent at the event was Evangelos Marinakis’ Capital Maritime, which placed an order for six LNG dual-fuel-capable VLCCS with a Chinese yard during Posidonia, signalling Greece’s willingness to adopt environmentally friendly shipping solutions.

As events unfolded, Marshal Islands flag administrator IRI (International Registries, Inc.) celebrated the 50th anniversary of the opening of its Greek office (see p.16), while longstanding classification partner of Greek shipping ABS announced its plans to open a Hellenic Ship Safety Center to help maritime training in Greece adapt to the new era of alternative fuels.

Proceedings came to a close with the traditional UGS press conference pictured, where Melina Travlos stressed Greek owners’ commitment to sustainability, as well as to a strong social footprint. l

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Technical

European ferry sector charts new course

By David Tinsley

specialists gives ample expression to

C

electrical energy from four 9,600kW diesel generators

strategies addressing a low-carbon future.

complemented by a considerable battery installation of

The ‘sustainability’ drive, informed by legislative and

8.8MWh capacity. P&O Pioneer made her commercial

corporate decarbonisation goals, is grounded in the

debut on the Dover/Calais service last June, followed in

bid to ensure long-term viability and profitability, as

March this year by P&O Liberte. Results to date endorse

the capital and ongoing expenditure associated with

the company’s projection that the Fusion newbuilds would

ensuring green credentials places unrelenting pressure

cut fuel consumption by 40% relative to the 30-year-old

on net earnings power.

ships hitherto employed on the run, with a corresponding

urrent fleet investment by European ferry

P&O Ferries has opened a new chapter in the annals of the cross-Channel passenger and freight business

The hybrid power and propulsion system uses

saving in carbon emissions.

The battery banks have been sized to provide the capability

through the introduction of the world’s largest double-

to deliver full power for harbour manoeuvring and during

enders, dubbed the Fusion class. Melding the company’s

the period alongside. Overall manoeuvring time on each

UK operating expertise with advanced Nordic design, engineering and propulsion solutions, P&O Pioneer and consort P&O Liberte are innovative in the blend of technologies embraced.

For Polish service: the latest iteration of the long-running, Visentini-built series

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Technical

240-metre Stena Estelle, the largest of the 13 E-Flexer ro-pax ferries ordered to date

sailing has been reduced through the adoption of a double-

Changing order on the Channel: P&O Ferries’ Fusion-class double-enders

ended configuration with two bridges, obviating the need to go about (turn) in port. The requisite handling precision has been conferred by the use of fully-azimuthing, Azipod electric propulsion units, two at each end of the hull.

Based on a design developed by the shipowner in conjunction with Danish consultancy OSK-ShipTech, the vessels had been ordered from Guangzhou Shipyard International in September 2019, at a total price of EUR 260 million (now equating to $280 million). Each ferry offers a freight payload equivalent to some 2,600 lane-metres, plus dedicated space for

company’s Vessels of Tomorrow programme, which calls

nearly 200 cars, and has an adjustable passenger capacity, up

for investment of around DKr 7.3 billion ($1.05 billion) over

to a maximum 1,500 during peak periods.

the next six years in a total of six, so-called ‘green’ ro-pax

Coupled with the changes in crewing arrangements

ferries. Two of these will be battery-powered, while two will

dramatically imposed in 2022, the commissioning of the new

be specified with methanol fuel capability and two with an

generation should have a pronounced effect on the economics

ammonia capability.

of P&O’s flagship route, a primary conduit for trade between

The pair of battery-electric ferries are expected to be

the British Isles and continental Europe, and one subject to

deployed in eastern Channel service by 2030, and long-term

intense competition.

planning foresees the eventual introduction on the Channel

The ships have been conceived to be carbon-neutral at

of six fully electric newbuilds. The relatively short crossing

some stage in the future, contingent on the development of

distances involved provide a practicable basis for vessels

‘plug-in’, electric shore charging stations at Dover and Calais.

designed to run wholly on battery installations, and the scale

In keeping with the ultimate, zero-emission goal, the Fusion

of the systems envisaged is implicit in the DFDS claim that the

design has been prepared for adaptation whereby the battery

ships would rank as the world’s largest all-electric ferries.

plant would be extended, removing diesel-generator capacity.

Although hydrogen is not embraced by the Vessels of

P&O will have a competitive edge for only a limited time

Tomorrow initiative, DFDS is involved in research on hydrogen

on the eastern Channel, as DFDS has announced plans for

as part of the company’s ongoing analysis of possible net-zero

ferries featuring exceptionally large battery installations, also

scenarios for both vessels and road transport. With support

anticipative of the development of shore-based infrastructure

from the Danish Maritime Fund, and in conjunction with

at the port terminals in the UK and France. Such facilities would

Lloyd’s Register and H2 Energy, the company is looking at the

need to be sized for feed rates commensurate with extremely

feasibility of hydrogen propulsion using the ro-ro freight vessel

demanding ferry turnaround schedules. Cooperation between

Magnolia Seaways on the Esberg/Immingham route.

the shipowners and ports, and government bodies, on both

In the meantime, Brittany Ferries has made a commitment

sides of the Channel is accordingly critical to the realisation of

to two Stena E-Flexer ro-pax vessels under construction in

such investments that are bound in with decarbonisation goals.

China, each of which will have an energy storage system of

Following discussions with French and UK government

11.3MWh capacity, significantly in excess of that of P&O’s

officials, DFDS has affirmed its commitment to the

fleet entrants. The first of the 195-metre newbuilds, Saint-

‘electrification’ of cross-Channel transport in the long-term.

Malo, is due for handover by the end of this year, with a view

The initial stage of the strategy is to be realised within the

to commencement on the Saint-Malo/Portsmouth service

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in February 2025, and is expected to be closely followed by

500 and ro-ro intakes of 2,800-4,600 lane-metres. Furthermore,

the Guillaume de Normandie on the Caen (Ouistrehamn)/

a new C-Flexer type of 216 metres, using multi-fuel battery

Portsmouth route.

hybrid propulsion, covers freight carrying applications from

The E-Flexer type, conceived by Stena RoRo and

3,500 to 5,050 lane metres.

developed in conjunction with consultancy Deltamarin of

Chinese production is providing Stena with a cost-

Finland and China, has attracted wide market favour. The

competitive means of realising a sophisticated and versatile

series now spans a total of 13 vessels, 10 of which have been

series of vessels. At the same time, the programme has

delivered to date.

elevated Chinese shipbuilding’s standing in a specialised sphere

The commercially adept design approach has been such

of the market. The shipyard has shown its mettle in meeting

that the programme displays a high degree of customisation

challenges as regards noise and vibration control, undertaking

and adaptation within a standard platform yielding cost

outfitting and accommodation in keeping European passenger

benefits from serial production. Stena RoRo has secured long-

standards and expectations, and ensuring lightship weight

term charters for the E-Flexer generation not only from Stena

parameters while maximising payload lane-metres, while

Line and Brittany Ferries, but also DFDS, Corsica Linea and

also adjusting the design platform as required to individual

Marine Atlantic.

contractual criteria determined by charterer requirements.

Long-run efficiency and viability, and intertwined

Privately-owned Cantiere Navale Visentini, one of the

environmental considerations, have been elemental in the

last remaining bastions of European large ferry production

planning for the E-Flexer type, which yields about 25%

in the face of the Chinese shipbuilding industry’s global

less CO2 emissions per freight unit relative to existing

domination of the ro-pax sector, is nearing completion of

ro-pax vessels.

its largest-ever vessel. Destined for long-term charter to

Propulsive power is based on two medium-speed engines

Polferries, the 216-metre Varsovia is the latest iteration

rather than the four-engine configuration widely favoured for

of a design platform that has been continually enhanced

large ferries, with geared-down drive to twin propellers for

and adapted over the past 30 years. True to the Visentini

speeds of around 22 knots. The fully feathering nature of the

marque, the latest ship from the northeast Italian yard is

controllable-pitch screws means that, when running in economy

powered and formed to make 24 knots with nearly 2,900

mode at less than 18 knots on a single propeller, the other

lane-metres of freight and 920 passengers.

propeller can be feathered so as to reduce resistance.

Always a most determined negotiator with shipbuilders,

Besides the incoming Varsovia, Polferries will account for one of three dual-fuel, hybrid/electric ro-pax ferries

Stena RoRo has looked to China to realise the E-Flexer

ordered through Polskie Promy from Remontowa

concept, and the performance to date of the shipyard

Shipbuilding at Gdansk. Each of the trio of domestic

contractor CMI Jinling Weihai (formerly AVIC Weihai) has

newbuilds will be laid out for about 200 trucks and 400

vindicated that decision.

passengers, and feature Azipod electric azimuthing

The November 2019 handover of the Stena Estrid for Irish Sea service with Stena Line signalled the beginning of deliveries, and the 13th order was confirmed in January 2024,

main propulsion units and an LNG dual-fuel power plant supplemented by a battery installation.

As with Varsovia, the 196-metre Remontowa-designed

under an agreement with French western Mediterranean

vessel for Polferries, and the two other ships to be operated

operator Corsica Linea.

by PZM subsidiary Unity Line, will serve the Swinoujscie/Ystad

Although the ‘standard’ E-Flexer has a length overall of 214.5 metres, tonnage completed so far has included two

seabridge linking Poland with Scandinavia. Deliveries are scheduled in 2025, 2026 and 2027.

longer ships of 240m, while the 10th in the series, delivered

Each shipset of four main generators will be driven by

this year into eastern Canada service with Marine Atlantic,

Wartsila 31DF dual-fuel medium-speed engines, which give

embodies a modified form of just under 203 metres, to meet

added, future fuel flexibility by allowing operation on bio-

the 204-metre length restriction imposed at Port-aux-Basques,

LNG either on its own or blended with standard LNG. The

Newfoundland. The three outstanding E-Flexer newbuilds

inclusion of an energy storage system provides redundancy

booked by Stena RoRo for long-term charterer to Brittany

as well as conferring a boost power capability and peak-

Ferries and Corsica Linea will also be shorter variants of the

shaving function, and will obviate the need to fire-up an

‘standard’ design.

extra engine in certain situations.

Stena RoRo has recently embellished its offering with

Long-term financial success in the intensely competitive

a range of versions incorporating much smaller passenger

European short-sea ferry market hinges more than ever on

accommodation but larger freight capacity. Designated the

the most circumspect consideration of market, cost and

E-Flexer 300-500 series, the designs are between 190 and 240

legislative evolution, and of practical solutions to energy

metres in length, embracing passenger complements of 300 to

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Analysis Coal trades defy the odds

By Ian Cochran

D

espite the political clamor for the banning of fossil fuels, the global coal trade has seen an increase in recent months.

By the middle of May, it was back up to pre-Covid

levels, Italian broking house Banchero Costa said in a recent report.

Through 2023, global seaborne coal loadings increased by 5.8% year-on-year to 1,339.5 mill tonnes (excluding cabotage), based on AXS Marine tracking data.

In the first quarter of 2024, this firm trend continued, as global coal loadings rose by 3.2% y-o-y to 329 mill

As for this year, overall coal shipments could fall by

tonnes, from 318.6 mill tonnes recorded in the same

1-2% and 2-3% in 2025, BIMCO said in another report.

Whereas India has continued to ramp up coal mining,

period last year.

Analysing the coal exporters, in 1Q24, exports from Indonesia increased by 6.3% y-o-y to 128.2 mill tonnes, whilst Australian exports were up by 8.5% y-o-y to 84.4

China saw its domestic production fall 4.1% y-o-y during the first quarter of 2024, thus supporting imports.

Overall, Chinese coal mining could increase by only 1% this year, according to the China Coal Transportation

mill tonnes.

However, Russian exports declined by 17.8% y-o-y to 37.7 mill tonnes during the same period, while US exports

and Distribution Association.

BIMCO also said that between January and April,

increased by 4.8% y-o-y to 21.9 mill tonnes, and South

2024, China’s electricity generation from renewables

Africa’s exports rose by 5.3% y-o-y to 15.1 mill tonnes.

surged 12% y-o-y, significantly outpacing the 6% growth

Elsewhere, Colombian shipments increased by 20.6% y-o-y to 15.4 mill tonnes in 1Q24, but Canadian exports

in generation from fossil fuels.

Thus far this year, Chinese electricity generated from

fell by 1.5% y-o-y to 11.6 mill tonnes, and Mozambique

renewables has accounted for 25% of the country’s

registered a drop of 9.7% y-o-y to 4.4 mill tonnes.

production. This is a record for this time of year when

Looking at imports, Mainland China’s share increased

renewables are typically weaker.

by 16.6% y-o-y to 94 mill tonnes in the first quarter of this year, while Indian imports rose by 20.4% y-o-y to 60 mill tonnes. However, Japan’s imports declined by

While steam coal shipments to China rose 29%

11.6% y-o-y to 38.9 mill tonnes, and South Korea’s share

y-o-y, they are starting to feel the pressure from

fell by 2.2% y-o-y to 29.7 mill tonnes. European Union

stronger renewables.

member importers saw a slump of 49%, falling to 15.3 mill tonnes.

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“Between March and April, shipments fell 7% y-o-y as electricity generation from fossil fuels

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Analysis

“If these investments are successful, we may soon see peak steam coal demand in China and a gradual decline in shipments,” Gouveia added.

Turning to India, coal imports have remained strong, due to firm electricity demand and import mandates from the government to ensure sufficient power plant inventories. Electricity demand is expected to continue growing rapidly in India, but strong domestic mining could limit import demand growth going forward.

In April, Australia’s Bureau of Meteorology announced the end of El Niño and said that La Niña only rose by 1% y-o-y,” said Filipe Gouveia, BIMCO

could follow sometime from July. This shift is expected

shipping analyst.

to negatively impact coal demand in South and

“Drybulk shipping has benefited from weak hydro

Southeast Asia, BIMCO said.

power and a 4% y-o-y decrease in Chinese coal mining, due to safety concerns. While hydro power already rose 22% y-o-y in April, it is uncertain when coal mining could recover.

“Stronger domestic mining in the second half of 2024, combined with strong electricity generation from renewables, would cool steam coal shipments into China,” Gouveia warned.

Panamax and Supramax bulkers would be most affected by a potential reduction in Chinese steam coal shipments. Overall steam coal accounts for 14% and 9% of all cargoes carried by these bulker types, respectively, BIMCO said.

Looking ahead, the International Energy Agency (IEA) estimated that China will account for almost 60% of the world’s new renewable energy capacity by 2028.

This would be enough not only to cover the growth in electricity demand, but also to replace some of the existing electricity generation from coal power plants.

Under El Niño, the region typically experiences a warmer and drier climate, boosting electricity demand from air conditioning plants, and weakening hydro power generation.

Coal needed by the larger Asian power plants is

“The medium-term outlook for coal shipments rests in the

usually shipped on Capesize or Panamax size bulkers

Chinese government’s hands. To successfully continue to shift

from dedicated export facilities, such as those to be

towards renewable energy, they must increase investment in

found at Australia’s Newcastle (NSW) and South Africa’s

China’s electricity grid and improve energy storage.

Richards Bay. Australia is the world’s largest shipper of metallurgical coal used to make steel, and the second biggest exporter of thermal coal, used mainly to generate electricity.

The maximum coal carrying bulker size is around 205,000 dwt, such as the so called ‘Newcastlemaxes’.

As mentioned above, coal cargoes are also transported on smaller bulkers, including Handymaxes and Supramaxes. These are favoured in China, due to the country’s relatively shallow draft ports with the exception of the giant import terminals, which were built to handle VLOCs. l

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Smart & AI Orca AI moves autonomous shipping forward

O

rca AI describes its operational platform for ships as the

as with Elon Musk’s Starlink have opened the door for advanced

first step in introducing autonomous features to vessels

technologies such as AI on board vessels to improve operational

already on the water. In 2022, it powered the world’s

efficiency and safety.

first autonomous commercial ship voyage with NYK, and is now

“It’s a welcomed pivotal moment, as despite the majority of

working on the second phase of fully autonomous ship technology

global cargo [being] transported by sea, the maritime industry

to be rolled out in 2025.

has lagged behind industries such as aviation when it comes to

Founded by naval technology experts, Yarden Gross (pictured above) and Dor Raviv, Orca AI’s platform maximises voyage safety,

keeping up with technological innovations.

“Ships deal with increasingly congested waterways, severe

operational efficiency and sustainability for ships and fleets. It

weather and low-visibility conditions creating difficult navigation

features a fully automated watchkeeper that processes multiple

experiences with often expensive cargo. We’ve recently proven

sources of visual information during navigation at sea, mimicking

forward-thinking companies that adopt our technology have seen

and enhancing human watchkeeping at the most complex marine

huge operational improvements from year to year, in creating a

traffic situations in real time.

safer and more efficient shipping industry. These Improvements are

In 2023, there were over 2,500 significant marine incidents.

crucial for shipping companies in meeting corporate sustainability

In the same period, working with the biggest global shipping

targets, but importantly the benefits are far reaching beyond just

companies including MSC, NYK, Maersk and Seaspan, Orca AI

the customers.”

reduced close encounters by 33% and crossing events by 40%

Catherine Leung, Co-Founder & Partner at MizMaa Ventures, an investor in Orca AI, adds: “It’s clear that AI

across 15 million nautical miles.

By detecting and alerting crew to high-risk marine targets,

has a crucial role in advancing the maritime sector and I’m

Orca AI optimises operations to avoid unnecessary manoeuvres

excited to see Orca AI pushing the boundaries of what’s

and speed drops, reducing fuel burn and emissions. The improved

possible in shipping. Making smarter navigation choices not

navigational decisions enabled by Orca AI resulted in an average

only boosts safety but also cuts down on fuel use and CO2

$100 - 300k saving in fuel per vessel per year (3-5%) and 172,716

emissions. That’s what makes the Orca AI platform stand

tonnes of CO2 reduction last year.

out and be trusted by the leading shipping companies in

Orca AI also enables proactive threat mitigation from diverse threats such as drone attacks and piracy by empowering personnel

the world.”

Leading P&I Club NorthStandard also endorses Orca AI’s

of vessels, to anticipate and counteract these risks, bolstering

platform having recently entered into an agreement whereby its

vessel security and protecting crews and sensitive cargo.

Members are incentivised by reduced premia to adopt the solution

Yarden Gross, Orca AI CEO and co-founder, says: “Innovations in high-speed, low cost, global connectivity, such

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in order to improve safety. l

Smart & AI

Syroco’s new generation weather routing and voyage optimisation tool uses digital twins, data and AI

F

rance-based Climate Tech startup

operating constraints including arrival time

Syroco has announced that

and sea conditions allowing safe navigation.

TotalEnergies, in cooperation

When the vessel is equipped with wind

with Socatra, has chosen to deploy

propulsion assistance, which is the case with

its weather routing and voyage

Alcyone, the routings integrate the optimal

optimisation platform on M/T Alcyone.

conditions to make the most of the wind

This installation uses digital twin, data

assistance on the route.

and AI (Artificial Intelligence) to optimise

Alex Caizergues, CEO and co-

the energy efficiency of the vessel during

founder of Syroco, comments: “We are

voyages to reduce fuel consumption and

proud to be selected by TotalEnergies

particularly simple. The ability of the

greenhouse gas emissions.

for this deployment. Our collaboration

digital twin to take into account the

with Socatra demonstrates the ease

different modes of propulsion - including

TotalEnergies, Alcyone is a 183-metre

of use of our solution and precisely

wind - and to address demanding

tanker sailing under French flag and

measures the gains it brings.”

operational constraints also makes it

Owned by Socatra and chartered by

operating on transpacific routes. Built in

Sébastien Roche, General Manager

a valuable tool to support exchanges

2022, the ship has just been equipped

Shipping Performance and Innovation

between the crew, the shipowner and

with two rotating masts (Rotor Sails) from

at TotalEnergies, confirms: “The use

the charterer.”

manufacturer Norsepower.

of the best digital tools and weather

Syroco is a Climate Tech startup

routing available today makes it possible

that uses the challenge of innovation to

a digital twin calculates and simulates

to optimise the performance of the

support the energy transition of maritime

precisely the behaviour of the vessel

vessel and her rotating masts. The fuel

transportation by providing fleet owners

depending on the conditions in which it

and emissions savings contribute to

and operators with a platform to

operates. The twin, based on data and

reduce immediately and sustainably the

evaluate and improve the efficiency and

artificial intelligence, takes into account

environmental footprint of our maritime

impact of their ships.

elements such as the shape of hull and

transportation activities.

At the heart of the Syroco platform,

appendage, hydrodynamic studies,

The company was born from the

‘We selected Syroco for this first

complementary expertise of its founders

propulsion efficiency, use of wind by

installation after an in-depth study of existing

in the scaling of hypergrowth startups,

rotating masts, energy consumed on

solutions and are particularly optimistic about

data and artificial intelligence, naval

board, etc.

the gains brought by the solution.”

architecture and racing boat design,

Leveraging precise weather and sea

Hector Firino Martell, Fleet Manager

extreme sports and offshore racing.

data, Syroco calculates an optimised

at Socatra, concludes: “The Syroco

Alex Caizergues, Syroco’s co-founder, is

routing at any time. The proposed route,

solution is very quick to deploy on a

a kitesurfer and two-time sailing speed

updated as often as necessary, accounts for

ship, and its adoption by the crew is

world champion. l

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Smart & AI

Autonomy for marine surveys

By Matthew Ratsey, MD of the world’s first charter firm for high-endurance uncrewed surface vessels, Zero USV.

A

s the ‘blue economy’ grows apace, so too does

market which bond multiple bearers (4G, LTE, satellite, etc)

the potential of uncrewed surface vessels (USVs)

autonomous navigation and edge collation of survey data are

in the quest to reduce pressure on human capital

becoming much less of an issue, and certainly this will continue

and improve productivity on the oceans. Furthermore, with the onboarding of artificial intelligence (AI) alongside

to develop.

With AI, survey companies can automate and optimise

much developed satellite connectivity and navigation,

speed, in addition to immediate-course and whole voyage

USVs are going further and longer with ever greater

routing for fuel optimisation and vessel safety. This yields cost-

reliability and precision.

saving benefits for vessel owners, fleet managers, insurers, and

Marine surveying is a high-growth sector. Over the next

cargo customers.

10 years, global offshore wind capacity alone is projected to

Furthermore, with AI, survey companies are ingesting

increase almost tenfold, from 34GW to 330GW, driving the

data the entire time and whether it is object data from the CV

installation of more than 80,000 new fixed or floating moored

(computer vision) system or the data from the radars and AIS,

turbines. Each of these will require accurate sea-floor data for

all of it can be used to train the AI data sets and curate these

the life of their installation, potentially for up to 30 years. The

for improvements in the field.

marine survey and mapping industry is set to remain in rude

As for the USVs, they need to deploy the sensors that are

health for some years to come. And there are many other

fit for purpose, such as Navtech’s high-definition W-band radar

industries requiring hydrographic and geophysical surveying,

which significantly aids near range situational awareness and

from seabed-extraction to utilities, biotechnology, power,

obstacle detection & avoidance for LOMO’s (Low observable

telecoms, to subsea wrecks and exploration.

marine objects) such as fishing pot markers.

Traditionally, marine surveying has relied heavily on crewed

By dint of their much lighter payload (no crew with all their

vessels. It’s long been the assumption, from navigation itself,

attendant food, water and accommodation) USVs help reduce

to deployment and recovery of sensors, to data-collection,

carbon emissions, so they are greener, as is their energy source,

interpretation, and reporting. The complexity of these tasks

the sun, meaning that they can travel further, and longer,

in parallel with dealing at the same time with often physically

without shifts and other human dynamics.

challenging environments might naturally lead one to rule

Without a full understanding of the power and reliability

out USVs, and yet the opposite is true as autonomy proves

of AI, it’s easy to see why some still fear the deployment

itself increasingly capable of boosting productivity, safety and

of USVs in congested shipping lanes, and yet as The

economy of physical, financial and human resources.

Mayflower proved, with its autonomous Atlantic crossing in

Whilst it may still be argued by a few that USVs and

2022, the reality is very different, and it’s only going to get

marine autonomy is restricted to areas away from structural

better. USVs can also work in pairs or even fleets, looking

or geophysical ‘hazards’, I’d argue strongly that this isn’t the

out for out each other, or in tandem with crewed vessels if

case, with advances both in AI and in connectivity technology,

needs be.

particularly in providing robust communications ‘over the

Whatever the future, get ready for more computers to

horizon’. With the ushering in of low earth orbit (LEO) satellites

take the helm of survey vessels exploring ever further corners

such as Starlink, and hybrid connectivity solutions hitting the

of the ocean. l

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Alternative Viewpoint AdHoc

The container market super-boom and beyond

By Dr Martin Stopford, leading maritime analyst and economist

M

ark Levinson concluded his book about

demand over the cliff (crude shipments fell 30% in the 1980s).

containerisation (The Box) with a chapter entitled

VLCCs contracted for $60 million went to layup, or in a few

“The Shipper’s Revenge”. Containerisation

cases, to scrap.

Another thirty-five years later, in 2007/8 bulkers hit the

changed the world, he says, with savings for shippers and consumers that cannot be calculated. But by the 1970s,

jackpot. In June 2008 Capesize rates peaked at $300,000/

hard-nosed shippers and non-conference shipping lines

day and by October, when the Credit Crisis struck, the bulker

had undermined liner tariffs, gradually manoeuvring liner

orderbook was 80% of the fleet. Luckily, thanks to financial

companies into the free market of low returns.

easing and China’s growth, the collapse was not as bad the

As a result the container lines got earnings which Jeremy

1980s. But it was a miserable decade, eroding dry bulk equity.

Clarkson (of Top Gear fame, now a farmer) would describe as

And so to the box ship super-boom, which appeared out of

“diddly squat”. From 1981 to 2019, the average container’s

nowhere. In 2019 the world economy was looking tired, and so

net revenue before interest, depreciation and tax (EBITDA) was

were container investors - their orderbook had at last shrunk to

roughly $200/ TEU (Figure 1). A bargain for shippers but hardly

8% of the fleet (after having had 50% on order in 2008).

Then as the pandemic struck in March 2020, the global

covers fleet capital costs!

In the last three years, however, things have changed.

network of box services was violently disrupted. First ships

Figure 1 shows that containerships, like tankers and bulkers,

backed up in China, with no cargo to load, but global cargo

can generate immense wealth. In 2020 revenue jump to $259/

kept moving, so rates rocketed (Figure 1). When, in March

TEU; in 2021 it surged to $819/TEU; and peaked at $1,416/

2021, the Ever Given blocked the Suez Canal for six days it

TEU in 2022; before falling to $291/TEU in 2023.

was the cherry on the cake. Cash poured in and containers had

This classic super-boom sends a multi-billion dollar message

their day in the sun.

So what is the message? There are two. The first is

to shippers. The modern container fleet, with its crucial cargo, is not just a docile cow waiting to be milked. Delayed delivery

that super booms are rare, so shippers can relax (the

of car components was all over the news and shipping even

orderbook is back up to 20% of the fleet). The second is

got blamed for global inflation - who would have thought it!

that containerisation is too important for shippers to ignore.

The message is simple economics – get container customers

Container transport is susceptibility to disruption and when

competing for slots, and the sky’s the limit.

that happens, its market power is formidable. Maybe

Of course booms like this are infrequent. There was a

they need to rethink the container logistics system as the

similar one a century ago, in 1920, caused by a desperate

industry enters the brave new world of decarbonization and

shortage of cargo steamers after World War 1. A 7,500 tonne

geopolitical change. It takes two to tango and although the

cargo steamer, which had cost £40,000 before the war, peaked

new system, like the old one, may not create super profits, but

at £258,000 in 1920, then fell to £60,000 in September 1921.

it might create a safer world. l

Thirty-five years later, the Suez Canal closed in the summer Onassis reputedly made $80 million trading his tankers spot.

Egypt had blocked the canal with sunken ships, and both Onassis and the oil companies believed it would go on for least five years. But they were wrong. By April 1957, Egypt had cleared the canal and the tanker market dived into a long and unpleasant recession.

Fast forward to 1973 and another tanker super-boom saw record spot rates and time chartering. Tankers accumulated an enormous order book, with disastrous bad timing. In October 1973 the Arab oil embargo and record oil prices pushed tanker

1,600 Cash (EBITDA) $ per TEU (estimate)

of 1956 causing a tanker super-boom, during which Aristotle

1,400 Covid March 2020

1,200 1000 800 600 400

1980s Recession

Asia Dashcam China Crisis Crisis Boom 1997 2000 2003

China Boom 2010

Post boom slump

200 0 1981 1986 1991 1981 1995 2001 2005 2011 2015 2016 2021 Figure 1: Net container revenue/TEU 1981 (EBITDA) Source: compiled by MS from published company data

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Education

New Ship Management course launched by BIMCO and CBS In a unique collaboration, BIMCO and the Copenhagen Business School (CBS) Blue MBA Alumni Association have unveiled a new Ship Management Diploma Program.

A first five-day course is to be taught at the CBS facilities in Frederiksberg, Denmark this September 15-20.

U

nder a ‘Ship Management Academy’ branding, the

performance, and relations management. The programme

new programme is described as a comprehensive

also includes insights into the global maritime industry,

and intensive course designed to equip

geopolitical trends, and the expectations of shipowners,

participants with the essential knowledge and skills required in the dynamic world of ship management.

cargo owners, and operators.

Participants will explore principles in ship management,

This program covers various topics, ranging from the

legal aspects, and vessel operations, emphasising the

commercial context of ship management to the intricacies

importance of customer-centric approaches, organisational

of operational excellence and the latest advancements in

structures, and the need for scale and efficiency. Practical

the maritime industry.

sessions, including case studies, will provide students with

From the outset, participants will explore the fundamentals of ship management, including its history, core stakeholders, and the role of a ship manager as

hands-on experiences, such as analysing the business case for outsourcing ship management services.

The program also covers regulatory frameworks, energy

both an asset and risk manager. They will examine the

efficiency measures, and alternative fuels, reflecting the

competitive landscape and crucial aspects like reputation,

industry’s commitment to environmental sustainability.

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Education

It explores performance management, key performance indicators (KPIs), and the role of digitalisation in enhancing service delivery excellence in depth.

Upon completing the entire programme, all participants can take an online test and receive a certificate of Completion issued by BIMCO. The course organisers say the Ship Management Academy presents an unparalleled

CBS’ BLUE BOARD LEADERSHIP PROGRAM

T

he Copenhagen Business School also recently introduced a Blue Board Leadership Program (BBLP), funded and supported by the Danish Maritime Fund, as an initiative

of CBS Board Leadership Education and the Blue MBA Alumni Association.

BBLP benefits from the involvement of specialist professors

opportunity for professionals seeking to

from CBS and other international universities and business

navigate the intricate waters of contemporary

schools, of experienced board members, of partners from EY

ship management. The combined maritime

(Ernst & Young) versed in annual report and finance practices,

academic expertise of the CBS Blue MBA

and of law firm Kromann Reumert.

Alumni Association and BIMCO’s commercial

The course is fully aligned with latest industry developments.

and practical experience provide a unique

For example, CBS points out how the Environmental, Social and

learning opportunity. Participants will:

Governance (ESG) agenda is of increasing importance, saying:

•

Understand the operational and legal

“ESG standards measure the impact of a business or other

implications of the contractual relationships

organisation on society and the environment while seeking

between ship managers and their principals.

to show how transparent, well-grounded, and accountable a

•

company’s governance is in leadership, executive pay, audits,

Gain and insight into how standard ship

management contracts develop and learn about

internal controls, shareholder rights and other indicators.”

the changes between the previous and the

Shipping companies are increasingly being expected to make

newly revised forms.

self-assessments in terms of ESG, making it vital that Blue

•

Boards stay abreast of best practice in these areas.

Understand the legal concept of “Agency”

and the importance of clarity when acting on

The next Blue Board Leadership Program will take place in

behalf of a named principal.

two modules of four days each: Class of 2025 module 1 from

•

December 2-5, 2024; module 2, from January 27-30, 2025,

Recognise the factors affecting the supply

and demand of seafarers and the effect on

both held at CBS facilities. Further information is available from

crew managers.

program directors Kim Vestergaard kv@cbs-executive.dk and Irene Rosberg ir.mba@cbs.dk. l

BIMCO and CBS will issue electronic course files as Adobe PDF files, enabling participants to make personal notes. All documentation and presentations will be in English. Course access details will be provided upon completion of registration.

After the training, participants can take a final assessment (open-book test). If they pass, they will receive a Certificate of Achievement with a grade (distinction, merit, or pass).

Those who do not take the assessment will receive a Certificate of Attendance.

Course price is €3,800 for a BIMCO member, €4,550 for a non-member. A 10% group discount is available for registering three or more participants. l

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Clean Oceans

Tackling marine plastic pollution Marine plastic pollution is already recognised as a major issue but continuing to discuss the sources of litter from shipping, the future of regulation and enforcement mechanisms are key, says Emma Forbes-Gearey, Loss Prevention Officer at West P&I Club.

lastic production surged from 5 million tonnes

P

Plastic debris, being mostly buoyant, accumulates

in the 1960s to 460 million tonnes by 2019. Its

in ocean currents, forming large patches like the ‘Great

durability, versatility, and lightweight nature have

Pacific Garbage Patch’, which is about 4.5 times the size

led to widespread use. However, these benefits have

of Germany. However, floating plastic is just a small part

also resulted in plastic being spread worldwide, and

of the issue. The United Nations Environment Programme

enduring plastic waste is significantly contaminating

estimates that only 15% of marine litter floats on the

marine ecosystems.

surface, another 15% stays in the water column, and the

About 80% of marine plastic debris originates from land-based sources such as waste and litter, while around 20% results from accidental ship discharges, ship waste,

rest sinks to the seabed. The concerning reality is, we are only really seeing the tip of the plastic iceberg.

The National Oceanic and Atmospheric Administration

and lost fishing gear known as ghost gear. This ocean

states that a plastic bottle can take about 450 years to

pollution impacts aquatic ecosystems, human health

decompose, while a fishing line can last up to 600 years.

and maritime industries. Although ship-sourced plastic

Plastics, being largely non-biodegradable, persist for

represents a smaller percentage of pollution, it is still

decades, breaking down into microplastics (particles

substantial, and the shipping industry has the regulatory

less than 5mm) that are ingested by marine life. The

nous and capabilities to help combat this source of

Environmental Investigation Agency warns that by 2050

pollution. Plastic also poses some risks to shipping, for

there could be more plastic than fish in the oceans.

example ghost gear being caught in propellors, disrupting vessel operations and navigational hazards and delays.

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Meanwhile, the United Nations Environment Programme estimates there are already at least 51 trillion microplastic

Clean Oceans

particles in the oceans. These particles can absorb toxins, concentrating them up to a million times more than the surrounding water, and potentially entering the human food chain, raising major human health concerns.

For nearly 30 years, the International Convention for the Prevention of Pollution from Ships (MARPOL) Annex V has banned rubbish disposal from ships. Plus, additional guidelines for MARPOL Annex V to address single-use plastics onboard ships were developed and adopted in 2017. However, recognising the need for stricter measures, the IMO has also adopted an action plan to improve port reception facilities and developed guidelines for managing single-use plastics on ships.

Another key regulatory framework is the 1972 London Dumping Convention, which prohibits the intentional dumping of waste from ships, except for materials on the ‘reserve list’, which excludes persistent plastics. Through this convention, deliberate dumping of fishing gear is prohibited unless necessary for vessel or human safety.

Enforcing these regulations in international waters is challenging though, as flag states often lack incentives to comply.

However, there are positive examples of proactive measures. For instance, Canada mandates gear loss reporting and gear marking for traceability, and the Thai Union, a major seafood company, requires tuna suppliers to mark non-biodegradable equipment.

Plastic pollution from cargo and fishing gear is as hazardous as oil pollution, a bold claim but one that is supported by the fact that plastic will endure for hundreds of years longer than oil, is a more widespread issue and is being absorbed into food chains.

Despite this, in general regulations lack enforcement mechanisms and have not been aggressively enforced.

However, recent developments indicate a positive shift. In March 2022, the UN Environment Assembly began creating new legally binding legislation on plastic pollution, focusing on the marine environment, with a target completion date of December 2024. Additionally, the IMO has drafted recommendations for transporting plastic pellets, pending approval by the Marine Environment Protection Committee.

The scale and damaging impact of marine plastic pollution on marine ecosystem cannot be overstated and, while it is the minority, plastic from ships and shipping must be effectively regulated and tackled.

It is not all doom and gloom however as the issue of shipdischarged plastic pollution is gaining prominence within the international shipping community. Continued coordinated efforts from international regulators, national lawmakers, and private maritime companies are essential, with significant progress anticipated and needed in 2024. l

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Objects of Desire » New-depths drone With 360° omnidirectional movement and hovering capabilities, this underwater robot will carry out tasks with complete freedom and flexibility. Equipped with a 176° ultra-wide-angle camera lens, the E-GO is achieving an industry-leading 146° field-of-view underwater. The newest ROV from Qysea, the Fifish E-GO comes with robotic arm with parallel gripper and 200 metres of cable and features a sleek and curved exterior inspired by the hammerhead shark.

E-GO Underwater Drone

€7,995.00 store.qysea.com

» Luxury leisure This ultra piece of freedom can be combined in several ways to offer an amazing additional space on the water whatever the activity. With its unique handle connection system you can easily build your ideal docking station for your Jet Ski, Tender, Seabob, SUP, Foil board and much more. Aesthetic soft, non-skid, durable saltwater and UV resistant materials guarantee luxurious and long-lasting comfort, providing the pinnacle of comfort and joy on the water. Featuring a platform, cover, table, sofa, backrest and mesh for protection, it has everything covered.

Floating pavilion

Separates from $300 theyachtbeach.com

» Evolutionary classic Top binocular maker Leica has managed to improve its range even further. With a new glass allowing for more light to pass through for observing in twilight, its high-performance binocular allows for more brighter images and better colour reproduction than ever before. In a stylish and robust design, made from magnesium and titanium, the HD-Plus Zagato is coated in a rubber armouring for extra protection on the most active expeditions. Wind and weather resistant, these binoculars can withstand the hardest rain and high humidity and they are both compact and lightweight.

Binoculars Ultravid 8x32 HD-Plus

£3,090.00 astroshop.eu

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Objects of Desire

» Sustainably slick This exquisite jewellery for men is crafted in France using recycled precious materials.

Inspired by industrial design and, more specifically, by the architecture of cable-stayed bridges, the iconic cable bracelet juxtaposes minimalist design with high technicality.

A creative approach where form follows function results in a twisted precious metal cable sealed by a cylindrical clasp with an invisible screw.

18ct Yellow Gold Slick Bracelet

€3,250 Legramme.com

» Padel anyone?

Sometimes referred to as padel tennis, this relatively new racquet sport of Mexican origin, is played in doubles, great fun putting a slightly different ‘spin’ on tennis and squash. Sharing similar scoring as tennis, the courts have walls and the balls are played off them like in squash using stringless bats. Since 2023 over 25 million players take part in over 90 countries, with Padel’s popularity growing in the pandemic. So for anyone who fancies something new, sporty and fun, Padel’s your game.

New courts start off at around $25,000 each.

Padel court

From $25,000 each alibaba.com/pla/super-padel

» Security with a twist Döttling has created a standout among the outstanding with the GranCircle safe. Fifty-two individual controllable watch winders enclose a limited, hand-made Naeschke pendulum clock with an unusual runtime of four weeks after one winding. The base accommodates the world’s smallest hi-fi sub-woofer by Elac, a VDS high-security safe with certified fire protection, eight additional watch winders and jewellery drawers, a climate-controlled humidor made of Spanish cedar wood and an exclusively implemented minibar. An absolute masterpiece.

GranCircle Safe

Price on request doettling.com

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Review

Wolfs Junge Zimmerstraße 30, Hamburg, 22085, Germany wolfs-junge.de/ Led by chef Sebastian Junge, the accent here at this Michelin star restaurant in the beautiful city of Hamburg, is on sustainable, regional cuisine as the epitome of ‘nose to tail’ eating. The ingredients are sourced from selected producers with some of the vegetables and herbs grown by the restaurant itself. Serves simple midday fare such as home-made bratwurst and an ambitious, creative set menu including Angeln Saddleback, kimchi and fermented onion in the evenings. Using organic produce from Gut Wulfsdorf and sourcing ingredients from urban gardening around the restaurant, the season dictates the menus and highly recommended with one fine star to prove it.

The Light Between Oceans,

by M.L. Stedman4 Random House, Australia A poignant exploration of love, loss, and moral ambiguity the scene is set against the haunting backdrop of the Australian coast. The novel’s connection to the sea is not just a setting but a central character that shapes the lives and destinies of the protagonists, Tom and Isabel Sherbourne. The story unfolds and is set in the 1920s on a remote island where Tom, a WWI veteran, is the lighthouse keeper. One day, a boat washes ashore carrying a dead man and a crying baby. Raising the baby girl as their own the decision sets off a chain of events that brings joy, conflict, and ultimately, moral dilemmas as they grapple with the implications of their choice. The sea symbolises the unpredictable nature of life and the consequences of human actions.

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

Miss Saigon Sands Theatre, 10 Bayfront Ave, Singapore 018956 Aug 15 – Sept 15, 2024

Modern Visions Tate Modern, Bankside, London, SE1 9TG tate.org.uk As one of the most visited galleries in London and the world, Tate Modern consistently satisfies the highest of expectations. 2024 is no exception as

A sung-through stage musical

Tate is poised to meet and exceed them with a promising lineup ranging

by Claude-Michel Schönberg

from Yoko Ono to ongoing showcases from last year, including the

and Alain Boublil, with lyrics

retrospective of Philip Guston and the extended run of Yayoi Kusama’s

by Boublil and Richard Maltby

Infinity Mirror Rooms. ‘Modern Visions’ also features Banksy’s provocative

Jr. It is based on Giacomo

street art, with this immersive exhibition running from July 10 to

Puccini’s 1904 opera Madama

September 15, offering a must-see for art enthusiasts.

Butterfly, telling the tragic tale of a doomed romance involving

Billy Joel and Sting

an Asian woman abandoned by

Las Vegas , Nov. 9, 2024

War, and Madame Butterfly’s

See two of the most respected

an American lieutenant and a

recording artists in history - who are

geisha is replaced by a romance

headed to Allegiant Stadium for a

between a United States Marine

one-night-only performance. These iconic musicians will each perform their

and a seventeen-year-old South

most beloved songs from throughout their careers. The show promises to be an

Vietnamese bargirl. It’s a highly

unforgettable evening of live music and will mark Billy’s first show in Las Vegas

acclaimed production known for

since performing at Allegiant Stadium in February of 2022, and Sting’s return

its powerful performances and

following his critically acclaimed ‘My Songs’ show that ran at The Colosseum at

stunning stage design and one to

Caesars Palace in 2021-2023. Tickets are on sale now at allegiantstadium.com

see in Singapore this summer.

her American lover. The setting of the plot is relocated to 1970s Saigon during the Vietnam story of marriage between

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Lifestyle

The ‘new servant class’ as trappings of luxury

By Margie Collins

I

t is arguably true, as Harvard psychologist Steven Pinker wrote, that human welfare

has improved dramatically by almost any measure – longevity, health, prosperity, education, literacy and leisure. It is also true that there is no amount of money or income beyond which one does not aspire to have more. Witness the super-rich setting themselves apart from those who are merely affluent.

Over the past year, the world’s richest people became significantly even richer. Billionaires added a whopping $2tn to their wealth, with 2,781 of them making it to Forbes’ much-anticipated annual list; 14 of them classed as centibillionaires. Altogether, they are worth more than $14tn.

It says in the Bible that those at the bottom of the income-distribution scale will always be with us. But even as wages have started to grow faster, life satisfaction has declined with levels of prosperity stagnating; people feeling left behind and insecure. The rise of AI and automation is already posing grave threats to jobs and to wellbeing. Jobs are just not catching up with people’s ambitions, aspirations and spending necessities.

“Wealth work”, said MIT economist David Autor, is when the economy is not producing enough jobs, creating what The Atlantic calls the “new servant economy” – when the super-rich have others do what they can’t – or won’t – do for themselves. “Some of these folks are content with these tasks as they provide income and flexibility,” wrote Derek Thompson. “Others find themselves stuck in a cycle of jobs [aka gigs or side hustles] beneath their education and career-experience levels.

The longer they stay in a servant-class role, it becomes almost impossible to break free and obtain a well-paying corporate position with a future.”

‘Super fixers’ can get their clients into private islands, members-only clubs, Michelin-starred restaurants; enrol their children into top boarding schools; acquire highly coveted Hermes Birkin and Kelly bags, art and jewellery; sign up super pop stars to sing at weddings, bar mitzvahs, birthday bashes – anywhere in the world, any time; dirhams no object.

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Lifestyle

“For Jeffrey Epstein,” wrote The Times’ Gerard Baker,

GP surgery, part-wellness clinic, part-longevity adviser.

“it was essential that he rehabilitate himself. In New York

Medical-care concierge is staffed by doctors, consultants,

there is no cleaner bill of social health than being friends

nurses, therapists who provide unlimited doctors’ at-home

with all the important people in this furiously ambitious city

or in-clinic appointments. “Modern private medicine is no

– Wall Street chiefs, media figures, entertainment moguls,

longer just about discreet clinics and ensuring patients get

top-flight lawyers, professional socialites – all eager to

to see consultants quickly,” wrote Harry Wallop in Times

advance their own careers that they’ll scramble a mountain

Magazine. “Although it is that.” An increasing number

of ordure to get ahead, holding their noses as they slip and

of doctors are setting up their own private-medicine

slide through the muck.”

companies offering clients personalised health services,

‘Wealth therapists’ – aka ‘money shrinks’ – are the go-to agony aunts and uncles of the stupendously wealthy who manage their clients’ assets, finances, taxation, investments

immediate attention, care and convenience required for their healing and wellbeing.

People worried about the progressing deterioration

and philanthropy. They serve at the pleasure of grand

of their bodies and faculties are turning to fitness/health

poobahs who have become so excessively wealthy they are

and longevity coaches and gurus who treat ageing as

in danger of losing any sense of the value of money. Wealth

the ‘ultimate disease’, hence their motto: “Don’t die.”

therapists mediate between warring multigenerational, multi-

Mining the ‘secrets’ to living the longest and healthiest

parental family factions, educate and guide clients’ children

lives, their clients are subjected – variously – to fasting,

and grandchildren on wealth management as the younger

vegan or paleo diets, cryotherapy, stem-cell injections,

generation begins to count on their inheritance in what

fresh-blood transfusions, rejuvenation therapies, surgical

economists are calling the global great wealth transfer of some

and laser tweakments.

$48tn when the older generation shuffles off their mortal coil.

“There are more than 700 companies [backed mostly by

Some of these wealth therapists have to deal with the

billionaires] in this field curing the disease of ageing and they

‘gold-digger problem’ as when their client acquires a new

have no problems attracting money,” said scientist Venki

lover or spouse. How much financial information should

Ramakushnan of the MRC Laboratory of Molecular Biology in

a client divulge when they acquire a new partner, posits

Cambridge, to The Times. “We’re all worried about growing

Diana Chambers, family-wealth adviser. And should they

old and dying. A lot of companies capitalise on this anxiety.”

know the private jet on the runway is yours?

Inundated with calls to tend to the beauty needs of

A round-the-clock team of doctors, therapists,

the wealthy, Charlie McCorry launched Perfect 10 beauty

nutritionists, chefs and butlers tends to the needs of

concierge because she found that “there are many rich

clients who spend weeks, months at some of the most

people who want massages in the middle of the night,

expensive rehab facilities in the world, including Zurich-

mani-pedis, spray tans, blow-dries on the other side of

based Paracelsus. People suffering from burnout,

the world.” She has beauticians, hair and make-up stylists,

addictions, depression, the loss of mirth and purpose

masseuses who are flown in by private jets, spend months

in life, and too exhausted to function normally receive

on one job or client alone, and called upon at any time

discreet care and treatments at the hands of the

of day or night to perform costly ministrations that self-

founder, Dr Werner Gerber, and his team. A patient,

important wealthy people indulge in.

he said, moved into his house seeking help; if it had

“We have more butlers, more domestic servants in

become known he was having problems, there would

the UK now than in either the Georgian or Victorian era,”

have been a devastating impact on the share price and

said Alex Lawrie, property PR adviser to the super-rich,

his entire company would have collapsed.

to The Times. “It’s half social prestige, half Mary Poppins’

For a fee of £9,900 a year, London-based Solice Health offers its members fast-track private medicine: part-private

romance.” It’s also a characteristic of ‘learnt helplessness’ in the face of the stern simplicity of life.

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Lifestyle

Since 2021, demand for household staff has increased

Sarah Thomas, who spent years tutoring children

by 400%, making it the era of the un-sackable worker. Staff

of wealthy families, wrote “Queen K” based on her

can include pet minders, personal shoppers, gardeners and

experience of working for a Russian billionaire’s peripatetic

landscape artists, event and party planners – in a near-

family, moving between a Monaco penthouse, a Tuscan

perfect country of extravagance, froth and bubble.

holiday home, a ski chalet in Courchevel and a superyacht

Butlers who are responsible for the management and

moored in the Maldives. “A lot of these families lean quite

operations of a household and its staff can earn up to

heavily into fortune tellers, acupuncturists, hairdressers,

and over £100,000 a year (with perks). Housekeepers of

people who can talk to them about themselves. But it’s not

town and country houses are expected to be well-versed

equal. They think of these people as friends, but they are

in etiquette, silver service and the maintenance of homes

paid to suck up to them,” she wrote.

that resemble palaces and luxury hotels, with prize-winning

Tutors prepare children for school exams and supervise their free time and extra-curricular activities which can

gardens fit for Architectural Digest.

Over the years, houses of the ultra rich have become

include ballet, polo, piano, tennis. They help parents get

complex and technologically complicated to run as they

their children into pukka boarding schools or prepare them

began to include cinemas, gyms, wine cellars, equestrian

for Oxbridge or the Ivy League. According to the Sutton

paddocks, temperature-controlled walk-in wardrobes,

Trust, demand for tutors is soaring; 30% of pupils are now

iceberg basements, ballrooms, outdoor/indoor swimming

being tutored, up from 18% in 2005. Super-tutors – some

pools, laundry blocks, security tech, staff quarters and

are former teachers fed up with unruly pupils, collapsing

guest cabins. Some homes are so big they require two

school buildings and complex curriculum changes – are

worker shifts daily and back-up for weekends and holidays.

highly paid. Young graduate tutors earn between £40-50/

“People are buying large houses with no idea how they work,” said Nuria Cantera, md of Manto Household

hour or anything from £36,000 a year.

Meanwhile, according to a recent report by the

Management, to The Times. “I see husbands giving

Institute of Student Employers on the salaries of graduates

servants a set of instructions so sophisticated you want to

impacted by the cost of living crisis: “Prospects for

cry. It takes at least two people to change a Savoir bed.

graduates are increasingly bleak with entry-level pay at

People want to know literally how to do the laundry as

poor levels. Some jobs which were once golden tickets to

they’ve never used a washing machine before, or how to

stable careers are just not there anymore.”

Then there are people who charge upwards of

change the loo roll.”

Not to be confused with butlers, a valet (aka

£2,000 just to clear their throats. This echelon of a

‘gentleman’s gentleman’, the female equivalent being

very discreet and secretive servant class includes PR

a lady’s maid) serves the male head of the household,

practitioners, crisis and reputation managers who can

responsible for his clothing and grooming. “High levels of

edit a client’s past, add a legend or three to their profile,

personalised care and attention beyond polishing shoes

rescue them from the sewers of social media and the

or steaming a garment before an event is required of a

maw of scandals. Hook them up with the right charities

valet,” said Alexandra Parker-Larkin who teaches aspiring

and causes that may lead to honours, a knighthood

candidates. “The best valet pre-empts what their client

or a peerage. These enablers – lawyers, accountants,

needs; he is paid to think for them.” Valets and ladies’

bankers, tax experts – help oligarchs, dictators, social

maids save their principals from humiliation arising from

mountaineers, arrivistes, wildly controversial figures as

poor social manners, wearing the wrong apparel or using

well as global entrepreneurs obtain golden visas, ascend

the wrong cutlery.

heights of respectability, wash their money in the laundry

Servants are signifiers of wealth and privilege;

of respected financial centres and ease their way into

advertisements of one’s income bracket. These include

the gilded ‘Establishment’, all the while extending their

nannies to whom parents subcontract parenting, and who

largesse and patronage along the way.

have sole charge of their children. Many highly experienced

But remember, a wide industry of Stakhanovites

nannies (£120,000 a year) have master’s degrees in child

(workers in the Soviet Union who regularly surpassed

psychology and speak several languages; some are given

production quotas and were specially honored and

their own apartments and cars. Increasingly built into their

rewarded) depends on these ultra-rich and their very

contracts these days are stipulations that they should not

conspicuous consumption. It’s not written in the Bible, but

expose their charges to anything with a screen, to limit how

sometimes the fate of the 99% is bound up with how the

much tech minors use.

1% lives – and spends. l

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