Maritime Matrix February 2023

DP World to develop mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-

container terminal at Deendayal port in Gujarat, on the western coast of India.

The project involves the construction of a megacontainer terminal at Tuna-Tekra through a Public Private Partnership (PPP). Once complete, the terminal will include a 1,100m berth, and will be capable of handling vessels carrying more than 18,000 TEUs. Total capacity will be 2.19 million TEUs. The contract was awarded by the Deendayal Port Authority under the Build-Operate-Transfer (BOT) basis.

Once complete, the terminal will help unlock future container traffic growth in India, catering to exports and imports from Northern, Western and Central India, reducing logistics cost and enhancing efficiencies across supply chains. The project will complement initiatives of the Government of India, such as the PM Gati Shakti Master Plan

to quadruple the country’s port handling capacity.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “India represents a significant landscape for opportunity. As the value chain becomes more integrated, significant growth opportunities exist across the entire Indian ports and logistics space. With the development of Tuna Tekra mega-container terminal in Gujarat, DP World will be well placed to capture these opportunities, further connecting Northern, Western and Central India with global trade and driving value for all our stakeholders. This is yet another step in our collective efforts with the National Investment and Infrastructure Fund to leverage our expertise in logistics infrastructure and local knowledge to further strengthen India’s supply chain”.

Rizwan Soomar, CEO and MD, India Subcontinent and sub-Saharan Africa, DP World, added: “We are honoured to partner with Deendayal Port Authority in developing this new mega-container terminal at Tuna-Tekra. We are confident that our deep expertise in developing critical infrastructure under Public-Private Partnerships will drive value for all stakeholders involved in this project. We remain enthusiastic to continue playing an important role in developing world leading assets to enable trade flow in key markets of India.”

The new terminal will be constructed and equipped with most modern facilities and equipment over an area of approximately 63 Hectares. The terminal will be well connected to the hinterland through the network of roads, highways, railways and the Dedicated Freight Corridors.

and National Logistics Policy, which has been introduced to provide greater focus on developing multimodal logistics infrastructure promoting economic growth. DP World’s strategic investments in ports and terminals in the country is aligned with the Indian Government’s Vision 2047, which aims

DP World already operates five marine terminals – two in Mumbai, one each in Mundra, Cochin and Chennai – with a combined capacity of approximately 6 million TEUs and with the addition of Tuna Tekra Container Terminal DP world will have a capacity of 8.19 million TEUs. This is along with seven multimodal inland terminals connected to DP World’s rail network, cold storage facilities, and container freight stations. It is also developing three state-of-the-art economic zones across the country in Mumbai, Cochin and Chennai. Agencies

Intex and GRT winner of ACT-3

The AMTOI CRICKET TOURNAMENT Season

3 (ACT-3) was held on 5th February 2023. This event was held after a hiatus of 3 years and was held with great gusto where in 56 Men’s teams and 8 Women’s team competed for the coveted trophy and various cash prizes.

The opening ceremony was held on 4th February 2023 at ACRES Club, Chembur and the Chief guest for the Opening Ceremony was Shri P. K. Agarwal, Pr. Chief Commissioner of Customs, Mumbai. This was well attended by Managing Committee members and Captains of all 64 teams. We also conducted 4 games on the first day and also a friendly match between the managing committee members.

The Tournament on 5th February 2023 was held at St. Andrews Turfpark Bandra (W), Mumbai and was a spectacular event. The matches started off at 8:30 am and went on till evening. It was a carnival atmosphere with Games and Food stalls for family and friends of participating teams which was enjoyed by one and all.

The Winners of the Tournament were as follows:

Women’s Team – Intex International Trading and Clearing Pvt Ltd

Men’s Team – GRT Global Logistics Pvt Ltd

MMT

Big Uncertainty

Chinese demand is the “big uncertainty” for the global liquefied natural gas market in 2023.

According to analyst ING, while Chinese demand for LNG is expected to increase this year, it is “difficult to gauge” exactly how much stronger it will be. “We are assuming for now that Chinese demand will not return to 2021 levels,” Warren Patterson, head of commodities strategy at ING, said in the analyst’s Energy Outlook 2023. “Instead, we are expecting more modest growth of a little over 10% year-onyear.”

Asia as a region is expected to mop up LNG cargoes redirected from a well-supplied European market in the short term, prompting a shift in trade. This

is partly down to a spread between Title Transfer Facility (TTF) priced LNG and Asian spot LNG. TTF traded at a premium to Asian LNG in 2022 to attract cargoes to offset Russian supply losses, but at the start of the year TTF traded at a discount to Asian.

More generally, European gas prices “collapsed” over the Northern Hemisphere winter, Patterson noted. This was down to mild weather and weak industrial demand, which combined meant that gas storage stayed strong. “The region should get through this winter comfortably and prospects also look better for the 23/24 winter.”

Europe built up its gas storage until mid-November 2022, taking it to 95% of capacity, which Patterson

described as “essentially maxed out”. A milder heating season then led to limited drawdowns, putting storage at 72% full by the end of January, above the five-year average of 54% for that time of year.

Storage gains

Patterson noted that assuming Europe does not experience a prolonged cold spell in the current heating season, the region should exit the 2022/23 winter with storage above 50% full. “This is significantly higher than the 26% seen at the end of the last heating season and above the five-year average of 34%.

“Ending this winter with very comfortable inventories makes the job of refilling storage over the injection season and hitting EU inventory targets of 90% by November 1, 2023 easier,” he said.

These storage levels put Europe in a “comfortable” storage situation and ensure it is in a better position to manage the 2023/24 heating season. “It certainly isn’t looking as dire as it did just several months ago,” Patterson said. “Therefore, prices do not need to go as high as originally expected going into the next heating season.” ING expects TTF to average in the region of Euro60-65/MWh over the first half of 2023, increasing to Euro75-80/MWh over the second half of the year.

This forecast assumes that there are no further drops in remaining Russian gas flows, that there is a small increase in EU LNG imports over 2023 and that Europe experiences a normal winter in 2023/24. “This should allow the EU to start the next heating season with storage exceeding the European Commission target of 90% by November 1, and the region should get through the winter months in a fairly comfortable manner,” Patterson noted.

That said, ING expects Europe to rely more on storage in the 23/24 winter than it has in the current winter.

Demand destruction’

European gas “demand destruction” has helped maintain those storage levels. ING noted that Eurostat figures showed that EU demand was 25%

below the five-year average for October 2022 while Germany’s weekly data showed declines in the first two weeks of 2023 in excess of 30% from the 201821 average.

This demand reduction is well beyond the European Commission’s target of 15% below the five-year average between August 2022 and the end of March 2023 and therefore, the demand destruction required from April through until March 2024 will be more modest than initially expected. “Our numbers suggest that a 10% decline from the fiveyear average is needed between April 2023 and March 2024 to meet the European Commission’s 90% storage target by November 1, 2023. The requirement for lower levels of demand destruction suggests that prices do not need to go as high as initially expected,” Patterson said.

Going into more detail on the upside risks to ING’s revised forecast, Patterson said that while the bulk of Russian gas flows to the EU have already been halted, there is a risk that gas flows via Ukraine and possibly even through TurkStream are stopped. “If this was to occur, Europe could lose 15-20bcm of gas on an annual basis, which is still a sizeable volume. This would need to be made up either by further LNG imports or through higher levels of demand destruction,” Patterson said. Both would likely need prices to increase from current levels to support them.

The second key risk identified by ING is related to Chinese LNG demand. “We are assuming only a marginal recovery in Chinese import demand this year (a little over 10%), rather than returning to 2021 levels,” Patterson said. “If Chinese demand surprised to the upside, this would mean a tighterthan-expected LNG market, increasing the need for Europe to compete more aggressively with Asia for supply. This would also mean higher-thanexpected prices.”

A final aspect to consider is the anticipated restart of the Freeport LNG plant which could provide “some relief to a tight LNG market”, Patterson concluded. Agencies

Emissions data is crucial for pricing discussion

We are back with another ranking of carrier carbon emissions based on the Xeneta and Marine Benchmark Carbon Emissions Index (CEI). We like to call it “naming and faming”. This week we are taking a look at the very popular and timely Far East to US West Coast trade.

“Why are we doing this?” We want to shine a light on the importance of green shipping and spotlight the progress of carriers.

It’s important that there is a neutral dataset that illustrates this for the industry. We’re in the game of transparency.

We believe that emissions data like ours is a crucial part of the pricing discussion between shippers and carriers.

The CEI between the Far East to the US West Coast rose in Q4 2022, reaching its highest level of the year, but at 96.2, it remains below where it was in Q4 2021 (100.2).

Back then, the strong market conditions meant

ships were speeding across the Pacific and getting stuck in congestion. The change in the queuing system to mitigate this congestion also led to ships sailing slower, thereby reducing CO2 emissions.

In Q4 2022, the average speed increased a little, despite the weaker market conditions. The CEI rose by almost 15% because of this higher sailing speed and because ships were sailing with less cargo on board in Q4 than in Q3.

The average filling factor fell to 76.5% in Q4 2022, its lowest level since Q1 2020, when lockdowns in China dented demand.

The best-performing carrier on this trade in Q4 2022 was HMM, scoring 27% better than the trade lane average.

This is the first quarter since Q3 2021 that HMM’s CEI is below the market average, let alone the bestperforming carrier, but in Q4 2022, its filling factor was higher than the market average.

Agencies

Evolution of Class

Ship ‘classification societies’ have existed for over 250 years. ‘Class rules’ classify ships and marine vessels according to the soundness of their structure, technical and operational standards. The classification rules are designed to ensure an acceptable degree of stability, safety, and environmental impact amongst the vessels’

structures, machinery, propulsion, and steering systems. Marine insurance underwriters, financiers, charterers, shipbrokers, flag states, surveyors and owners use this information to determine the quality and soundness of a vessel.

‘Class Rules’ originally classified the hull condition as A, E, I, O or U, according to the state

of its construction and its adjudged continuing soundness (or lack thereof). Equipment was G, M, or B (‘good, middling or bad’) later replaced by 1, 2 or 3, leading to the well-known expression ‘A1 classed.’

Assigning different classifications has now been superseded. Today a ship either meets the class society’s rules, or it does not. A vessel is either ‘in class’ or it is not. It’s important to understand however, that Class Societies don’t strictly certify that a vessel is ‘safe.’ They simply certify that the vessel complies with their rules – and the reputation

of the veracity of those rules is what gives them prestige and dependability.

However, the original purpose of this system was not to assess safety or seaworthiness of the ship. It was, essentially, to make money by evaluating insurance risk. Marine insurance underwriting essentially started as a game of bets. Underwriters would agree to insure different vessels & voyages based on their objective assessment of the risk of its loss (conversely – the chance of it safely reaching its destination). If the ship safely made the voyage, the underwriter won by collecting premiums and suffering no claim. If the ship was lost at sea, the underwriter lost and paid out the value of the vessel. Thus, an independent rating system of ship quality was developed to help underwriters place shrewd bets.

Groups of marine insurance underwriters used to assemble at a cafe called the Lloyd’s Coffee House in 1750’s London to underwrite insurance for ships - and unofficially formed the first classification society. ‘Lloyd’s Register’ officially came into existence in 1764. Bureau Veritas later formed in 1828, Det Norske Veritas (DNV) in 1864, and Germanischer Lloyd in 1867. The American Bureau of Shipping (ABS) formed in 1862, and Registro Italiano Navale (RINA) in Genoa in 1861. ClassNK formed in Tokyo in 1899.

There are now more than 50 class societies worldwide. They employ naval architects, ship surveyors, material engineers, piping engineers, mechanical engineers and electrical engineers, often located at ports and office buildings around the world. Det Norske Veritas (DNV), earlier known as DNV-GL, is the largest class society. Det Norske Veritas (1864) and Germanischer Lloyd (1867) merged in 2013 to form the new DNV-GL. In 2021, they became known simply as DNV.

Class societies are the foremost authority on marine technical standards, and the greatest source of marine structural knowledge. Their expertise is highly sought-after by the shipping industry, engineers, fabricators, metallurgists, naval architects, academics and maritime lawyers. Class societies are perhaps the greatest credit to shipping safety since the industrial revolution –and continue to be today.

Texas utility to provide reliable and cost effective power to customers

The technology group Wärtsilä will supply the generating equipment for a new approximately 190 MW power plant to be built in Texas, USA. The order was placed by Lower Colorado River Authority (LCRA), a river authority based in Austin, Texas providing wholesale power to the Texas power grid. The contract was booked as order intake by Wärtsilä in September 2022.

Central Texas is experiencing rapid economic growth with a number of blue-chip companies moving into the area, along with a 30 percent increase in population between 2010 and 2020. This and similar growth in other areas of the state has created the need for additional generating capacity to meet the state’s growing need for power.

The project will be a peaker power plant capable of starting and stopping rapidly to provide dispatchable power to increase reliability and provide power to balance the grid when renewable and other generational resources are not available or are insufficient to meet the needs of Texans.

“This new dispatchable peaker power plant with Wärtsilä technology will support the Texas power grid within minutes,” said Randa Stephenson, LCRA chief commercial officer. “We sometimes need more power that can be available quickly, depending on market conditions and demand. We believe Wärtsilä’s technology, experience and technical know-how will be a good match with our plans to provide reliable, cost-effective power to our customers and the Texas power grid.’’

“The energy sector is in the midst of a rapid transformation where flexibility is becoming all important. The situation in Texas reflects very clearly these changes, with sharply rising demand being served by an aging fleet of inflexible power plants. Grid balancing is also needed in order to respond to increasing inputs of energy from renewable sources, and Wärtsilä technology provides this. We congratulate LCRA for having the vision to add further flexible resources to its portfolio,” commented Risto Paldanius, Vice President, Americas, Wärtsilä Energy.

The plant will be located in Central Texas and will operate with ten Wärtsilä 50SG engines running on natural gas. It is expected to become fully operational in 2025. Each Wärtsilä engine consumes little to no water every week, which in Texas, an area often affected by drought, is an important feature.

Wärtsilä has installed over 70 engine power plants in the USA since 1981 and 15 energy storage facilities with a total combined capacity of over 4500 MW.

Team Matrix

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SETTING A COURSE FOR THE FUTURE

Encouraging a cultivation culture

Why Human Resources?

There is only one answer. It is a profession that is becoming increasingly important day by day. Human resource management is a vast area that covers the entire expanse of an organization. Given its vastness and the impact of its coverage, many sub domains are present of which culture plays a big role.

The culture of a company has a powerful impact on every employee. Various factors make up the culture of a company. The way a company treats its employees and what working environment it provides is an important factor. Another important aspect that decides a company’s culture is its employee makeup. Companies must be inclusive and try to employ people from different religions, races, and genders. A good mix of people from different backgrounds helps to bring more perspectives.

People need to enjoy their work. When workers enjoy what they do, their productivity is much better. Companies should try to make work a game that all can enjoy. This will bring more creativity and ensure better interaction between employees. The decisions made by top management also become part of a company’s culture. Its mission, vision, and values must inspire staff members to work for the company and for a more significant cause that positively impacts society.

An excellent corporate culture is where every employee gets an opportunity to exhibit their skills. All workers must get a chance to perform and grow. The importance of studying human resource management is that these courses will teach them how to bring that culture into an office and enlighten everyone with its values. Managers should also ensure that new employees are made to feel comfortable by others and given guidance about how to be part of a team. Companies should develop a culture of helpfulness in the workplace.

Making a good worker stay on is not easy. There are so many companies looking for such people, and they will be ready to make a better offer for experienced people. Opportunities are plenty for someone who is qualified and is willing to work hard. There are many reasons why someone leaves a company. Compensation can be an important issue. Everyone works for money, and there is always a need for more as people improve their lifestyles. But this is not always the reason.

Understanding why people leave a firm is the main reason why we study human resource management. An important reason quoted by many employees is a lack of opportunity to use one’s skills. Every employee wants to feel useful to their company. They want companies to use their capabilities for achieving corporate goals. When this is not done, workers will feel frustrated and think about seeking opportunities elsewhere. HR officials must ensure that every worker is fully utilized.

Culture plays a significant role in moulding these factors. Hence a cultural generation is required in organisation. In the maritime domain special efforts need to be undertaken in regenerating a new culture of motivation and involvement

The Author Neetu Jaiswal, Founder & CEO Nevoxel Consulting www.nevoxel.com

Everyone Plays

Barge Mantra Presents Maritime Indoor Sports League (Misl) 2023 – The Largest Corporate League for ALL stakeholders of the Maritime Industry – took place on 11th of February at the Renaissance Federation Club in Andheri West, Mumbai. 32 Companies from all walks of the Maritime Industry took part in this one - day fest & garnered a participation of 275 registered players!

The players had an opportunity to take part in 8 different activities – Chess, Carrom, Indoor Rowing (the only team sport), Swimming, Sketching, Personality Contest & Table Tennis.

Hosted by Capt Purnendu Shorey, Co- founder of Offing Group as well as Capt Anupam Raizada, Co-founder of Offing Group supported by Team Offing – MISL 2023 was truly an event like no other.

The event was supported by FOSMA, MASSA & AMTOI, along with HSBC who was the banking partner of MISL 2023. Trust Travel was the travel partner and JNB Sports was the Rowing Partner.

Capt Raizada & Capt Shorey

INDIAN REGISTER OF SHIPPING came in with a large contingent and an unbeatable spirit & bagged the Gold (Leader of Overall Medals Tally) for MISL 2023.

ELEGANT MARINE SERVICES came in close and won the Silver (Runner Up of Overall Medals Tally).

MISL 2023 followed a come one – bring one policy – where all participants were allowed to bring one cheerleader to the event. Fun and frolic flowed, while the activities took place – Participants and their families got temporary tattoo’s made and also tried their luck in the gaming arena!

Team Offing thanks all the participating companies & participants and is looking forward to the next edition in 2024 & promises to make it their biggest yet!

For more information, please visit www.misl.in.

MMT

Asia HSFO market likely to garner strength

The Asian high sulfur fuel oil market is likely to strengthen, and quite significantly so, from prevailing levels as oil majors and trading giants begin to increasingly eschew Russian-origin oil, traders said.

Several market participants including oil majors, leading traders and shipowners had already voluntarily distanced themselves from trading

Russian-origin oil since its invasion of Ukraine a year ago.

The G7-led coalition’s decision to impose from Feb. 5 price caps on seaborne Russian petroleum products has however upped the ante in terms of constraints to finance, ship and insure Russian oilrelated trades.

As such, the volume of Russian oil product flows, including vast amounts of fuel oil, into major trading hubs in Asia, which has hitherto been a destination of choice for these barrels, is likely to decline, traders said.

“You can probably see that [Russian oil eschewal] starting to take effect in the forward structure and the print values for the window,” a Singapore-based fuel oil trader said in reference to the recent uptick in valuations of the Singapore HSFO market.

The spread between front-month FOB Singapore 380 CST HSFO swap and front-month 380 CST Rotterdam barge, also known as the East-West swap spread, which measures the viability to ship oil East, was assessed at $19.5/mt on Feb. 22. The spread, which was assessed at $1/mt on Feb. 10, has surged almost twentyfold in a matter of eight trading days, S&P Global Commodity Insights data showed.

“Think the ARA [Amsterdam-Rotterdam-Antwerp] region is weakening, and Singapore seems to be pulling product,” another Singapore-based fuel oil trader said.

A strengthening of the Asian 380 CST HSFO market was also reflected in the uptick seen in refining margins for the product.

The front-month FOB Singapore 380 CST HSFO swap spread against front-month Brent swap rose to minus $17.58/b at the Feb. 22 Asian market close, a near nine-month high. The front-month 380 CST HSFO crack has strengthened by over $5/b from two weeks ago, when it was assessed at minus $22.88/b on Feb. 10.

An optimistic market sentiment is also reflected in the consolidation of the market structure at the front of the Singapore 380 CST HSFO swaps curve, which has strengthened from minus $2.5/mt on Jan. 12 to $3.3/mt on Feb. 15, before inching lower to $2.75/mt on Feb. 22, S&P Global data showed.

“There’s a little bit of strengthening going on down the 380 curve. Europe has been softer and the EastWest has really taken a big move up,” a trader said.

Agencies

New initiative to reduce cargo loss at sea launched

Some of the world’s biggest maritime cargo carriers are joining forces with the world’s first industrial safety technology accelerator to launch a new innovation initiative to reduce cargo loss at sea.

Evergreen Line, HMM, Maersk, the Offen Group, ONE (Ocean Network Express), Seaspan as well as Lloyd’s Register are joining forces with Safetytech Accelerator to find and advance technology innovations from across maritime and other industrial sectors to reduce the incidence

and impact of cargo fires or cargo loss overboard.

The scale and breadth of the challenges facing operators is growing and continues to evolve. These include, through the increasing carriage of lithiumion batteries either in containers or within electric vehicles on car-carriers and the increasing growth in complexity and size of modern container vessels. Fire and cargo loss at sea not only has an immediate impact on the safety of those onboard but also creates the potential for significant environmental damage.

The Safetytech Accelerator Cargo Fire & Loss

Innovation Initiative (CFLII) is a collaborative technology acceleration program that will help tackle the issue through shaping joint requirements, identifying technology solutions, undertaking carefully designed trials and developing best practices and recommendations.

The Initiative has a broad scope encompassing three significant topics of concern. The first relates to onboard cargo control, including whether cargo has been properly, loaded, secured and monitored during transit. The second area covers the ability to detect fire onboard and stop its spread through effective onboard response, particularly on large container ships and car-carriers. The third relates to the challenges created by the increasing scale of vessels.

Global Containerships Segment Director at Lloyd’s Register (LR), and Chair of the Maritime Cargo Fire and Loss Initiative, Nick Gross said, “We’re excited to start this initiative, working alongside the Anchor Partners to trial and adopt innovative technology for the prevention of cargo fires onboard, thus helping to make container shipping a safer operation. From LR side, the objective of the initiative resonates with our mandate to improve the safety of ships and crew, as well as protect the marine ecosystem. We believe it is vital to work together to tackle the increasing risk of cargo fires onboard container ships.”

The President of Evergreen Line, Eric Hsieh, said, “We are committed to talent training to help provide a safe, high quality working environment for our seaman. By participating in an enterprise such as the Cargo Fire & Loss Innovation Initiative we aim to work closely with all stakeholders to guard the safety of container shipping transportation.”

The Chief Maritime Officer of HMM, Kim Gyoubong, said, “I am pleased to join this collaborative initiative with major industrial partners, expecting to develop advanced technology for significantly reducing the risk of safety-related accidents. HMM will give top priority to providing more reliable and differentiated shipping services by securing the safety of our ships and transported cargo.”

The Head of Marine Standards & DPA of Maersk, Aslak Ross, said, “The safety of our people is always of highest importance. Reducing the risk of cargo

fires is accordingly a key priority for Maersk and the industry at large. The main root cause for cargo fires on container ships is the integrity of dangerous goods throughout the supply chain. Therefore it is a problem that can only be improved through industry wide solutions and for that reason we are a strong believer in sharing of learnings across the industry to improve safety. The Safetytech Accelerator Cargo Fire & Loss Innovation Initiative is a good platform to bring stakeholders together to find new effective solutions to the problem of cargo fires.”

The Managing Director of ONE, Hiroki Tsujii, said, “Given the rapid changes in both the shipping industry as well as the nature of cargo shipped, though ONE’s record of cargo fires are minimal, we are careful to not be complacent and continuously seek ways to improve our capabilities. Hence, we see the value of efforts such as this Cargo Fire & Loss Innovation Initiative (CFLII) which enables collaboration across industry stakeholders and provides the opportunity to share, learn and improve.”

The Director, Marine Standards and Designated Person Ashore at Seaspan, Alfred Gomez said, “Safety is at the very core of our culture at Seaspan. We are pleased to partner with our fellow industry leaders on an innovative initiative aimed at continuous improvement and solving for existing and emerging challenges within our dynamic industry.”

The Managing Director of Safetytech Accelerator, Maurizio Pilu, said, “Safeytech Accelerator’s mission is to help solve some of the most complex safety, risk and resilience challenges in industry through open innovation and collaboration. Eliminating cargo fire and loss is a big challenge in the maritime industry and while accidents are thankfully infrequent, their impact can be extremely large. Together with the Anchor Partners we hope this new collaborative technology acceleration initiative will help industry make significant progress towards that goal.”

Agencies

Raising Day

The Indian Coast Guard (ICG) is celebrating its 47th Raising Day on 01 Feb 2023. From a modest beginning with just 07 surface platforms in 1978, ICG has grown into a formidable force with 158 ships and 78 aircraft in its inventory and is likely to achieve targeted force levels of 200 surface platforms and 80 aircraft by 2025.

ICG is now considered to be one of renowned Coast Guards in the world due to its achievements and for the efficiency with which it operates its assets in a challenging environment thereby ensuring round the clock safety and security. True to its motto “Vayam Rakshamah” meaning “We Protect”, the service has to its credit saving over 11,881 lives since its inception in 1977 with 279 lives saved in the year 2022 alone.

To ensure security in the Maritime Zones of India, the Indian Coast Guard has maintained 24 x 7 vigil by deploying about 50 to 60 ships and 10 to 12 aircraft daily. This is to fulfill the nation’s expectation to keep our seas free and secure in order to facilitate sustainable progress on blue economy efforts by various stakeholders, besides ensuring a safe environment for maritime transportation through our sea lanes. It is envisioned that the future ICG shall be omnipresent by showing presence all over as यत्र, तत्र,

The vast seas with overlapping jurisdiction provide avenues for anti-nationals to exploit the sea routes by posing themselves as mariners at work at sea. The Maritime Law Enforcement has been strengthened multifold and the hawk eye

vigil by the ICG in our near coast and blue waters has resulted in seizure of weapons, contraband and narcotics worth Rs. 2924 Crores. The recent cases of apprehension of Pak Boat ‘Al Sohili’ with about 40 Kg of Narcotics alongwith 06 pistols, 12 magazines & 120 live rounds are telling examples of ICG’s robust detection and response mechanism against such inimical designs. We have also institutionalized mechanism of sharing information with littoral countries, as a result of which they have been successful in apprehension of drugs and contraband worth Rs.3260 Cr in 03 different operations. Our collaborative actions have created an effective deterrence and created a shield at sea where the penetration by the smugglers has been made nearly impossible.

On the aviation front, the Coast Guard is now more focused on updating its existing capabilities. Recently, the ICG has concluded a maiden contract for 10 Multicopter Drones in consonance with GoI policy of embracing drone technology, capable of being launched from both ships & shore stations. Further, to overcome the obsolescence in Dorniers, a contract has been signed for Mid-life upgrade of 17 Aircraft with state-of-the-art system/sensors. Procurement of additional 100 drones by 2025, Multi Mission Maritime Surveillance Aircraft (MMMA) and Twin Engine Helicopters (TEHH) are also envisaged to bolster the operational capability of the Indian Coast Guard. In addition, modernization of airfields operated by the Coast Guard is also being undertaken under the ‘Modernization of Air Field Infrastructure (MAFI)’ project with installation and commissioning of modern airfield equipment like DVOR, HPDME and Air Traffic Management System (ATMS). The said up-gradation of navigation aids and infrastructure under this project would enhance the operational capability of air operations even in poor visibility and adverse weather conditions, whilst enhancing aero safety.

In keeping with the nation’s vision of ‘SAGAR’ and ‘Neighbourhood First’ the Indian Coast Guard has imparted training to several Officers and Personnel below Officer ranks from friendly foreign Countries in the year 2022. In the last one year, sanction for creation of 657 posts have been accorded by GoI, which will assist Indian Coast Guard in effectively

discharging its duties as a credible, reliable and omnipresent maritime force.

On the marine environment protection front, the ICG being the Central Coordinating Authority for Oil Spill response in Indian EEZ, has ensured that there were no major oil spill incidences in Indian waters throughout last year. ICG has undertaken active pollution response preventive measures and coordinated with stakeholders for mitigation of oil spill risks during grounding of MV Princess Miral off New Mangalore, MT Global King-1 off Porbandar and MT Parth off Ratnagiri in last one year. In order to test the readiness, a National Level Pollution response Exercise (NATPOLREX-VIII) was conducted off Goa in Apr 2022 wherein 13 CG Ships, 09 Aircraft, two foreign Coast Guard Ships participated. The exercise which was witnessed by Observers from 19 countries showcased ICG capability to respond to any major oil and Hazardous and Noxious Sustances (HNS) spill in Indian EEZ and to extend support to friendly countries in case of any contingency.

The ICG has been a pioneer in inducting indigenous assets in line with ‘Make in India’ and ‘Atmanirbhar Bharat’ wherein the Service recently has inducted 06 ships built from Indian Shipyards, 04 Air Squadrons by inducting 16 ALHs built by M/s HAL in the year goneby. Further, 21 ships are under construction at 03 shipyards including 02 Pollution Control vessels, which will be our frontline ships for combating marine pollution in our AoR and beyond.

The President of India, Vice President, Prime Minister and Defence Minister have extended greetings and congratulated the Indian Coast Guard on completion of 46 glorious years of yeoman service to the nation and appreciated the remarkable role played by the service in pursuit of the nation’s interests in the Maritime Zones.

Converting Offshore Vessel to charge with Wind Power

Two separate projects are getting underway in the UK and Norway both looking to convert the support vessels used for offshore wind farms to fully electric operations. The concept looks to tap the electricity generated by the wind farms and store it in battery systems that would be used to charge CSOVs (Construction Service Operation Vessel), CTVs (Crew Transfer Vessel), and other support vessels for wind farms.

The organizers of the project in the UK, point out that the major barrier to converting these vessels to sustainable operations is the range and duration at which electric and hybrid vessels can operate. Oasis Marine, which will lead the UK project, highlights that currently the vessels are charged at their service bases in port, but the wind farms are too far from shore to allow the trips to be fully completed on battery power. The challenge will only increase as wind farms move further offshore and grow larger in scale requiring more time on site for the support vessels.

By enabling offshore charging from a zero-emission energy source, the CTVs and other vessels will be able to operate on battery power eliminating their emissions. Oasis Marine says the initial goal is to operate on electric power for the majority of the time, extending the operational range of the CTVs. They believe the breakthrough technology will enable full electric operations in the future.

The UK recently awarded this project approximately $1.8 million as part of the government-sponsored Clean Maritime Demonstration Competition (CMDC). The grant supports the two-year project to develop the infrastructure for charging hybrid and electric CTVs. The project involves a series of partners including Oasis Marine which had already conducted tests on its sea charging buoy. Turbo Power Systems will design, build, and test a high-power DC power supply for the conversion of power from the wind turbine to the charging unit while Verlume will supply a modular battery energy storage system with integrated intelligent energy management. The Offshore Renewable Energy Catapult, the UK’s technology innovation and research center for offshore renewable energy will be responsible for CTV requirements. Vattenfall, operators of Aberdeen Bay Windfarm, will be participating in the project.

“The ability to re-charge vessels offshore is crucial for decarbonizing maritime. Initial sea trials of the Oasis Power Buoy were conducted in early 2022 and this CMDC funding allows for progression to full infrastructure testing,” said George Smith, Managing Director of Oasis Marine.

The first phase of the project will develop the power transfer to batteries systems that will power the charging buoy. In the second phase they will be working with Vattenfall regarding the technical and regulatory requirements, they aim to demonstrate the system on a turbine at their European Offshore Wind Deployment Centre in Aberdeen Bay. During the demonstration, a hybrid CTV will operate from Aberdeen Harbour to the wind farm, to then connect and recharge from the Oasis Power Buoy while waiting in the field as maintenance technicians work on the turbines.

Several companies have been working on similar projects also looking to provide charging capabilities at offshore facilities. In 2022, Maersk Supply Services launched a company, Stillstrom, and working with Orsted and the Port of Aberdeen has been working on feasibility studies for charging buoys.

The Norwegian government through its Green Platform Initiative awarded approximately $3.7 million to the Ocean Charger project being led by Vard at the end of 2022. The program held its kickoff meeting on February 15 in Ålesund, Norway as it also works to research, test, validate, and commercialize an energy transfer system for battery-powered ships offshore. Their project is scheduled to run for three years. Vard is currently building a CSOV for REM Offshore, the REM Power, a 278-foot CSOV, which is planned to be part of the test project. The vessel was recently chartered to ASSO Subsea for two years to support RWE in the construction and commissioning of the Sofia offshore wind farm in the UK.

Agencies

Causa Proxima

One of the tenets of insurance is the idea of Proximate Cause, often known as Causa Proxima. The phrase “causa proxima et Non Remota Spectrum” in insurance law denotes that the immediate and not the remote cause should be considered. The proximate cause should be the immediate, not the distant, cause, and the insurer will always take this into account when settling a claim.1 The phrase “proximate cause” was initially used to describe the active and effective cause that starts a chain of events that leads to a result without the help of any outside force and that originates from a fresh, independent source.

According to Pawsey v. Scottish Union and National (1908), “proximate cause” is defined as the “active, efficient cause that sets in motion a chain of events that results in a result, without the participation of any force begun and operating actively from a new and independent source”.

Description of Causa Proxima

In Insurance law, causation is a key concept. According to some, insurance is a social tool that offers monetary compensation for the effects of misfortune or hazards. Insurance protects dependents from economic risks but cannot replace lost life or property. An effective and efficient process is one in which the cause and effect are directly related, and the cause is sufficiently powerful to allow for the logical prediction of each subsequent occurrence up to the realisation of the desired result. 2 Direct, dominant, effective, and immediate causes

can all be proximate causes. A review of a few legal proceedings can show how the court determines the proximate cause.

Application of the Principle in Marine Insurance

The adage “causa proxima” is appropriate in the situation of marine insurance when the loss is brought on by maritime risks. The Hague Visby Rules, which provide a defence for the carrier against liability for loss or damage, describe perils of the sea as “perils,” “dangers,” and “accidents” of the sea or other navigable waters.3

In Dudgeon v. Permbroke4, a ship with a time policy was insured, but it was lost because of the ferocious winds and seas. The insurer claimed that because the ship was unfit for a cruise, they were not responsible. By using the maxim causa proxima, the House of Lords determined that the violent action of the wind and waves was the loss’s immediate cause. As a result, the insurance company was held liable even though the loss could not have occurred without the concurrent action of a different cause not covered by the policy, namely the ship’s unseaworthiness.

When two Proximate Cause Exists

In Global Process Systems v. Syarikat Takaful 5, the court was concerned with the issue of whether two proximate causes may exist and, if so, what would happen in light of the policy’s provisions. It is important to keep in mind that if two causes are equally close together, there is no problem. To put it another way, the policy reacts if there are two proximate causes, one of which is covered by

the policy and the other is not excluded. However, the policy does not apply if there are two proximate causes, one of which is specifically prohibited and the other of which is covered. In this instance, the policy in question expressly disallowed the inherent vice, which was raised by the respondents as an argument.6

Regarding the theory of proximate cause, there are two schools of thought: one supports the simple proximate cause, while the other takes a somewhat different stance on the idea, as stated by Lopes LJ: “The rule does not refer to immediate causation, but the efficient or dominating cause.” The cause that is actually close is therefore the one that is close in proximity.

The Indian courts have generally adopted this second school of thought, emphasising the efficient proximate cause rather than just the proximate cause.7

Propensity of the Principle under the Marine Insurance Act of 1963

The Latin phrase causa proxima translates as nearest, closest, or direct cause. It mostly applies to marine insurance cases. According to section 55 of the Marine Insurance Act of 1963, the insurance company is solely responsible for covering losses that were brought on by the closest or most immediate causes covered by the policy, not more remote causes.

Finding the cause is not difficult if there is just one possible cause. Concurrent causes, or causes that happen at the same time, must be divided into insured perils and exempted perils. The insurer would be held liable if the insured risk was the first occurrence in a series of events that led to the loss to the covered subject matter. The insurer’s obligation depends on whether the new peril, cause, or event is an insured peril or an exempted peril in the event that the chain of events is interrupted by the involvement of a new and independent cause. The insured must demonstrate that the loss was directly brought on by the insured hazard.8

An important insurance theory called “proximate cause” looks at how a loss or damage actually happened and if it was caused by an insured hazard. It is a well-established rule that establishing proximate cause is necessary in order to determine whether a claim is covered by the policy. As was noted in a situation that was previously covered, selecting the most recent event is not a wise course of action; rather, it is a routine process, and this observation reinforces the need of the rule of causa proxima. The very nature of causality is complexity.9

A crucial aspect to remember in the context of “immediate cause” or “nearest cause” is that only the immediate action, not the remote cause, shall be taken into consideration when determining the proximate cause. All causes of loss are not taken into consideration; rather, the cause must be “effective,” “dominant,” and “operative.” It ought to demonstrate a direct influence on the outcome of the deed. Proximate cause, to put it simply, “operates to determine the genuine cause, not the actual.”

MMT

1 By Devikrupa D, ‘Proximate Cause Is it Interpretation of Courts or Is there any clear definition, IJLMH Journal Vol 1 Issue 3, https://www.ijlmh.com/wpcontent/uploads/2019/03/Proximate-Cause-Is-itInterpretation-of-Courts-or-Is-There-Any-ClearDefinition.pdf. (January 23rd, 2023)

2 By Manjeet Kumar Sahu, The Rule of Causa Proxima as a Principle of Insurance, Kathmandu School of Law Review, Vol 4 Issue 1, (January 23rd, 2023)

3 By Manjeet Kumar Sahu, The Rule of Causa Proxima as a Principle of Insurance, Kathmandu School of Law Review, Vol 4 Issue 1, (January 23rd, 2023)

4 (1877) 2 AC 284

5 2010 (3) All ER 248.

6 By Manjeet Kumar Sahu, The Rule of Causa Proxima as a Principle of Insurance, Kathmandu School of Law Review, Vol 4 Issue 1, (January 24th , 2023)

7 By Tushar Sharma, The Doctrine of Proximate Cause, A Study of the History and Development of the Maxim, Journal on Contemporary Issues of Law , https://jcil.lsyndicate.com/wp-content/ uploads/2021/06/01.-The-doctrine-of-proximatecause.pdf, January 24th 2023.

8 By Arjun, Principle of Causa Proxima, NSW BUZZ Study Channel, https://nsw-school-holidays.com/ principle-of-causa proxima/#:~:text=According%20 to%20section%2055%20of,not%20for%20other%20 remote%20causes. January 24th 2023.

9 By Tushar Sharma, The Doctrine of Proximate Cause, A Study of the History and Development of the Maxim, Journal on Contemporary Issues of Law, https://jcil.lsyndicate.com/wp-content/ uploads/2021/06/01.-The-doctrine-of-proximatecause.pdf, January 24th 2023.

For the purposes of this paper, any court that has admiralty jurisdiction, whether English, American or Indian, will generally be referred to as “admiralty court”

The Co-Authors

Advocate Capt Rahul Varma Founder, Ally

Maritime and Legal Services and Ship

Recycling Specialist

Mr Sagarnil Ghosh

Intern, Ally Maritime and Legal Services

SSY enters global offshore sector

Simpson Spence Young (SSY), the world’s largest independent shipbroker, has announced in a joint statement with Westshore Shipbrokers AS that it has agreed terms to acquire the Norwegian shipbroker, with Westshore becoming part of Simpson Spence Young AS going forward.

The acquisition is part of SSY’s wider strategy to enter into the global offshore sector which will further complement its already wide range of shipbroking services.

Based in Kristiansand, Norway, Westshore has accumulated over 35 years’ experience since launching in 1987 and remain one of the most recognised names in the offshore space. Specialising in chartering, market intelligence and sale and purchase of offshore vessels, Westshore are widely regarded as industry experts both in Norway and around the world.

Speaking on today’s announcement, Stanko Jekov, SSY Managing Partner comments: “This

acquisition marks the first step in realising one of SSY’s key strategic objectives, to become a major global player in offshore. We have ambitious plans for this market and I’m confident we can add real value in this sector.”

Jekov continues: “Westshore have built an impressive business and reputation in the offshore industry and I’m excited that together we can continue to provide unrivalled, local expertise in one of the major offshore shipping hubs in Europe.”

Also commenting on today’s announcement, Goran Rostad, Westshore Managing Director said: “This strategic move will enable Westshore to leverage on SSY’s worldwide network, considerable analytics resource and wide-ranging expertise in the shipping space. I’m delighted that through this acquisition, we will be able to offer new opportunities for both our team and clients and provide even greater levels of service under the umbrella of a major global brokerage.”

Agencies

Goran Rostad Westshore Managing Director

Stanko Jekov SSY Managing Partner

Improving Ballast Water Management

Canada is funding new research focusing specifically on the challenges of ballast water management for vessels operating in the St. Lawrence River region and the Great Lakes in an effort to further prevent the introduction of invasive aquatic species into the region. While evidence shows that ballast water management systems (BWMS) are an effective tool, Transport Canada is seeking to further expand the implementation and enforcement of the 2021 Ballast Water Regulations by addressing the issues created by the environment in this region.

The Minister of Transport, the Honorable Omar Alghabra, announced C$12.5 million (US $9.25 million) in funding to launch the Ballast Water Innovation Program as part of Canada’s Oceans Protection Plan. It is part of an overall increased awareness of the issues in many parts of the world and a new focus on reducing the potentially harmful effects. New Zealand’s increased enforcement and Australia’s new regulations on biofouling made headlines at the beginning of 2023 as several cruise ships were told they needed to clean their hulls before proceeding to port.

According to Transport Canada, the challenge they face is that the St. Lawrence region and Great Lakes present unique water conditions that challenge the current BWMS technologies. Among the issues, they point to are cooler water temperatures, freshwater conditions, and heavy sedimentation rates. Most ballast water management systems they noted have been developed for warmer salt-water conditions typically encountered by ocean-going vessels.

“Our government is taking action to limit the introduction and spread of aquatic invasive species through the Ballast Water Innovation Program. This will support our dedication to protecting Canada’s coastlines and waterways,” said Minister Alghabra. “The Oceans Protection Plan is helping to protect the environment by supporting sustainable marine shipping practices, and today’s announcement is a further demonstration of this commitment.”

During his presentation, he highlighted Canada’s effort to fight zebra mussels, which are native to the Caspian Sea but were introduced in 1986 to the Great Lakes region through the discharge of ballast water pumped overboard by a cargo ship. The Minister said the mussels in the Great Lakes cost Ontario nearly C$250 million annually.

The new program will support the shipping industry’s efforts to advance solutions to improve the performance of BWMS in the Great Lakes and St. Lawrence region. They also aim to increase the availability of information which can also be used to inform future regulations. Canada will also use the findings as part of its efforts to improve the Ballast Water Management Convention.

Transport Canada is now accepting applications for research funding from Canadian vessel owners and operators, Canadian port authorities, not-forprofit organizations, public sector organizations, and academia until May 10, 2023. They expect the approved projects to begin in 2023.

Agencies

Losing Streak

The Baltic Exchange’s main sea freight index snapped its seven-week long losing streak and posted its second-biggest weekly jump ever on Friday, as rates for all vessel segments rebounded.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was up 67 points, or about 8.2%, at 883, an over one-month high.

The main index rose about 64% for the week, the biggest gain since mid-June 2020.

The capesize index gained 63 points, or about 11%, to 636. It was up about 135% for the week, also the biggest jump since the week ended June 19, 2020.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, gained $517 to $5,271.

The panamax index was up 102 points, or about 8.7%, at 1,271, a seven-week high. The index saw its first weekly gain in eight sessions, up nearly 57% — the most since the week ended June 6, 2009.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, were up $919 at $11,439.

Among smaller vessels, the supramax index rose 56 points to 996. It was up about 43% for the week, posting its biggest weekly rise on record.

Agencies

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