Fleet Optimization and Innovation Headlines of the Week 2018/07/11

Paris MOU Illustrates Risk and Opportunity

Two weeks ago, I had the honor of meeting Richard Schiferil who is the Secretary-General of the Paris MOU. A Master Mariner, Richard has been working for the improvement of our industry for the past 29 years at the Paris MOU, an agency which is committed to eliminating substandard ships through a harmonized system of Port State Control. Regrettably, he is retiring shortly (if you know Richard, please urge him to reconsider this decision!).

Just today I saw the infographic produced by the Paris MOU, which both astonished and dismayed me. I was astonished by the number of inspections conducted (over 17,000!); I was dismayed that over half of the inspections identified deficiencies. “Well”, you might think (as I did) “they are looking for minor issues in order to justify their existence”. I was very wrong.

Take a look at the top 5 deficiencies:

Safety of Navigation
Fire safety
Labor Conditions
Lifesaving Equipment
Certifications and documentation

These are fundamental issues to the safe and efficient transport of trade; these are a “given” in modern society. In our world of transparency, these deficiencies stand out as a violation of both safety and commercial standards for an industry. And this is in Europe! Imagine what the situation is in areas with less oversight!

As an industry, we have an opportunity to raise our standards, and our commercial viability. Existing, and future, regulations should be the baseline with a goal of exceeding them. We are accelerating towards a future that is murky with the only known quantity being that change is inevitable. “Let go or be dragged” easily comes to mind.

At SHIPPINGInsight this year we will be examining the many opportunities our industry must manage and embrace to be a more efficient, profitable, and safer industry. Businesses can either grasp the mantle and transform to play a defining role in the future…or be left behind.

Keep optimizing,

Carleen

Carleen Lyden Walker
Chief Evolution Officer
SHIPPINGInsight
IMO Maritime Ambassador
+1 203 255 4686 (o)
+1 203 260 0480 (m)
c.walker@shippinginsight.com
www.shippinginsight.com

News of the Week
July 11, 2018

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Cyber Security

Cyber threat on ships – What is true, what is vision, what is fantasy?

2018-07-04 – Increasingly, we find articles on cyberattacks in shipping in LinkedIn and other global media. Especially after the cyber-attack in June 2017 on the APMM computer network with the malware “NotPetya” and the associated costs of more than US $ 300 million, which caused APM Container Terminals to be paralyzed worldwide, this topic was put on the agenda. By the way, not only APMM was affected. Numerous other companies were also affected, including the Russian oil and gas producer “Rosneft”. It should be noted that specialists in the computer security software industry assume that the malware has been injected into accounting software through a software update. According to IT specialists, “NotPetya” only affects Windows systems. . . READ MORE

Emissions

Cleaner fuels are looking messy for marine cargo insurers

2018-07-05 – If you work in shipping and you read the news, it cannot have escaped your attention that from January 1 2020 the permitted amount of sulphur in marine fuel oil will fall from 3.5% m/m (mass by mass) to 0.5% m/m, globally . . . READ MORE

Frontline and DHT lead VLCC embrace of scrubber technology

2018-07-09 – Last week’s scrubber commitments by VLCC giants Frontline and DHT Holdings could be a “game changer” for the sector, brokers Gibson argues in its latest weekly report. . . . READ MORE

Markets

‘One Belt, One Road’ to reshape world shipping trade?

2018-03-06 – China is constantly inviting countries into cooperation on all fronts, infrastructure, trade, and joint investments aiming to a more efficient, green and sustainable transport through better logistic solutions. In particular, a master plan, the One Belt One Road initiative (OBOR), has been under development since 2013, in order to build trade and infrastructure networks, connecting Asia with Europe and Africa through the ancient Silk Road routes. But, what this initiative means five years later and why it’s so important, not only to port operators, but also to the wider freight industry supply chain?. . . READ MORE

Global gas trades reshaped as ship crosses Northern Sea Route unassisted from Yamal to China

2018-07-06 – In a landmark moment reshaping global gas trades the laden Vladimir Rusanov LNG carrier arrived at the Bering Strait today, completing an 11-day voyage along the Northern Sea Route from the Yamal LNG plant at Sabetta port. . . READ MORE

BIMCO: 2018 Has Been ‘Historically Bad’ for Crude Oil Tankers

2018-07-10 – The first half of 2018 has been a historically bad year for crude oil tankers as earnings hit their lowest level on record in heavy loss-making territory, according to shipping industry association BIMCO. . . READ MORE

Rolls-Royce Sells Commercial Marine Business to Kongsberg

2018-07-06 – Rolls-Royce has signed an agreement to sell its commercial marine business, to Kongsberg, for an enterprise value of £500 million ($660 million) and net proceeds of around £350 million to £400 million. . . READ MORE

ESPO welcomes Port Reception Facilities draft, calls for stricter ‘polluter pays’ principle

2018-07-10 – The European Sea ports Organisation (ESPO) welcomes the proposals by the European Parliament on the review of the Waste Reception Facilities Directive. The proposals are aiming to better protect the marine environment and decrease the administrative burden for stakeholders. The Draft Report will be discussed in the Transport Committee meeting of 10 July. . . READ MORE

Trade Wars Threaten to Derail Container Revival: Drewry

2018-07-04 – “In the March report we said that we were hopeful of a peaceful resolution, but at this point in time we must accept that tariffs are going to become a reality. The only question now is: how severe will they be?” said Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster. . . READ MORE

Compliance

REGULATORY WATCH: The Global 0.50% Sulfur Cap: 30 months and counting down …

2018-07-11 – In early June, the U.S. Coast Guard (USCG) and U.S. Environmental Protection Agency (EPA) held a public workshop in Washington to help the agencies prepare for the January 1, 2020 deadline for worldwide implementation of very low sulfur marine fuel that meets the new 0.50% sulfur cap as set forth by the International Maritime Organization (IMO). . . READ MORE

Paris MoU: Detention rate stable, bans increased in 2017

2018-07-03 – Paris MoU issued its annual report on Port State Control, revealing a slight increase in the number of inspections and a slight decrease in the detention percentage for 2017; 3.82% compared to 3.84% in 2016. However, the report shows a significant increase in the numbers of refusal of access in 2017; 33 compared to 20 in 2016. . . READ MORE

ClassNK reports 426 PSC detentions in 2017

2018-06-27 – ClassNK issued its PSC annual report, revealing 426 reported PSC detentions relating to 383 ships from January to December 2017. The number of ships detained represents about 4.5 % of the total number of ships in the NK fleet. Detention ratio of the NK fleet in 2017 is about 5.0%. . . READ MORE

Fuel

US Gulf contaminated bunkers can lead to engine damage

2018-07-05 – Contaminated IFO 380 bunkers in the US Gulf have resulted in a significant number of vessels experiencing system clogging and, in more extreme cases, engine damage, the North of England P&I Club warned. The problem is not limited to one fuel supplier and it is difficult at this stage to identify the definitive source. However, the contamination has been linked to the use of fuel oil cutter stock, a product added to residual fuels to reduce viscosity. . . READ MORE

OP/ED: The 2020 Sulfur Cap – Growing Pains or Mass Hysteria?

2018-07-09 – At the stroke of midnight on January 1, 2018, the global shipping industry will be expected to comply with the IMO agreed upon 0.5% sulfur cap for bunker fuels with few waivers available. . . READ MORE

New study focuses on hydrogen fuel cell research vessel

2018-07-05 – A new ship design and feasibility study, led by Sandia National Laboratories, in cooperation with naval architect Glosten, the Scripps Institution of Oceanography and DNV GL, could soon make marine research pollution-free for both the air and the ocean. . . READ MORE

7/2/2018: MARPOL Annex VI fuel oil consumption reporting

2018-07-02 – The Office of Design and Engineering Standards recently issued Marine Safety Information Bulletin 05-18, “Authorization of Classification Societies for the Issuance of Statements of Compliance – Fuel Oil Consumption Reporting.”. . . READ MORE

Chevron Marine Lubricants receives NOLs from MAN Energy Solutions for use of ACOM with Taro® cylinder lubricants

2018-07-11 – Following successful field testing, Chevron Marine Lubricants have been issued with two NOLs (No Objection Letters) from equipment manufacturer MAN Energy Solutions, for the use of three of its Taro® cylinder oils with their cylinder oil mixing system, ACOM. . . READ MORE

IBIA Promotes Sensible Approach to Sulphur Testing

2018-07-08 – International Bunker Industry Association (IBIA) is continuing its efforts for IMO to adopt guidelines ahead of 2020 that will promote a uniform approach to fuel oil testing and reporting protocol for the verification of compliance with MARPOL Annex VI sulphur limits. . . READ MORE

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