March 2023 – Intro by Nagia Mentzi, South Europe Marketing Manager at Lloyd’s Register
The maritime industry is changing. In response to the huge challenges of decarbonisation and digitalisation, our sector is demonstrating collaboration, flexibility and innovation. Women are playing a vital role in that change, as they have always done.
A new project is shining a light on women’s vital role in commercial shipping. ‘Rewriting Women into Maritime History’, led by Lloyd’s Register Foundation’s Heritage and Education Centre, is asking maritime organisations to submit content from their archives about women in the maritime industry, to highlight women’s contribution to commercial shipping.
Here, ten of Lloyd’s Register’s Greece-based maritime experts, who are leaders in their field, give their opinions on the pressing questions in maritime. You may notice all are women.
Zoe Anastassopoulou, Surveyor at Lloyd’s Register
Safety in the era of digital transformation
As we stand at the threshold of a new era, the maritime transport industry is already transitioning into the so-called Fourth Industrial Revolution, with cutting-edge technologies mainly related to big data analytics (BDA), artificial intelligence, cloud computing, internet of things (IoT), and cybersecurity. These tools will create smarter, more interconnected networks, improving performance monitoring and real-time visibility of the vessels.
Communication of all kinds will be improved; between the vessel and shore-based personnel, among crew and officers and between electronic equipment aboard and ashore. Onshore teams will be able to understand immediately what is happening on board, boosting safety and efficiency. Artificial intelligence tools will enhance safety, efficiency, and competitiveness through autonomous vessels and their collaboration with highly skilled seafarers and operators.
IoT will enable condition monitoring and remote control of critical equipment onboard, enhancing system reliability and safety, and monitoring of cargo activities. BDA will enhance safe navigation by analysing data related to weather, sea condition, location of the vessel and speed to anticipate and avoid danger. As the complexity of maritime supply chains increase, innovation in digital systems offers the potential to enhance safety and efficiency.
Anna Apostolopoulou, Global Floating Offshore Installations Director at Lloyd’s Register
How do we close the gap between supply and demand for the energy transition in Greece?
Energy and maritime markets continue making encouraging progress, booming in certain areas, with ongoing discussions around energy security and transition. The industry is tackling inflationary pressures, global macro-economic conditions, and geopolitical change, while trying to encourage investment in the maritime energy transition.
Every country and business should enhance its visibility in all relevant markets and cultivate discussions with stakeholders worldwide over trends, projects, and fields for collaboration, to best position themselves within sustainable business models through to a 2050 net zero goal.
Greece’s position in the Mediterranean Sea and the European Community is significant in the transition. It’s an exciting time with a variety of projects under discussion; increasing efficiencies on offshore platforms, power production from medium and smaller assets such as FSUs/FSRUs/FSRPs, the link between shipping demand and alternative fuels, carbon capture, storage and utilisation, autonomous systems, offshore wind and nuclear power, decarbonisation pathways, EU representation & financing, regulatory frameworks, electrification. Each will play their part in the energy transition, and we’ll be watching them all!
Maria Karahaliou, Trainer & Internal Training Coordinator/ Executive Assistant to South Europe Marine Manager at Lloyd’s Register
Is the investment of organizations in “soft skills” training the way forward in Learning and Development?
When it comes to learning and development, the industry has for many years focused on the development of technical (or hard) skills. This has resulted in the shipping population (both ship and shore-based employees) being highly trained with unparallel technical expertise and knowledge. But is this enough in this always fast-developing and agile community? In an ever-growing global shipping community, with clear intent and understanding that working together as an industry at a global level is the only way forward, the development of soft skills at all levels of any given organization has now become imperative.
To this end, the term soft skills is becoming obsolete in the learning and development community, being replaced with terms such as people skills or (even better) power skills. Development of skills in communication, active listening, teamwork in a diverse open and inclusive way as well and developing leaders to “lead from behind” have now become the key to elevating organizations and also the industry as a whole. For example, hiring or developing a shipping professional with excellent communication abilities, who is adept at reading people, will be a stronger opponent in negotiations. The development of these essential skills for all levels of employees is what will create competitive advantage.
Stavroula Kofopoulou, Specialist Electrotechnical Systems, at Lloyd’s Register
Cyber security: what are the new requirements?
The maritime sector, which until recently was considered relatively safe due to the lack of internet connectivity and the isolated nature of ships in the sea, is showing vulnerability in cybersecurity breaches on operational technology as it enters the digital era.
In 2021, attacks targeting ships increased in frequency by 33%, on top of a 900% increase in cyber attacks against ships and port systems in the three years up to 2020, according to the Atlantic Council’s Cyber Statecraft Initiative.
Recognising the growing issue, the International Association of Classification Societies adopted two unified requirements in April 2022; “UR E26 Cyber resilience of ships” and “UR E27 Cyber resilience of on-board systems and equipment”.
Shipowners, designers, shipyards, integrators and suppliers should expect new rules or guidelines from classification societies for conducting engineering reviews and surveys onboard vessels built after 1 January 2024. The new regulations will use this structure:
- Identify: develop organizational understanding against cyber threats
- Protect: develop and implement appropriate safeguards to protect ship against cyber incidents.
- Detect: develop and implement appropriate measures to reveal and recognize a cyber incident onboard.
- Respond: develop and implement appropriate procedures on how to react to cyber security incidents.
- Recover: develop and implement appropriate procedures to restore systems affected by cyber incidents.
Although these requirements are non-mandatory for existing ships, shipowners are recommended to consider their adoption as soon as possible in order to optimize their fleet performance and be better prepared for the 1 January 2024 deadline.
Anastasia Kouvertari, Project Manager, Maritime Decarbonisation Hub at Lloyd’s Register
Destination zero: what are the next steps?
There are some positives in the challenge of decarbonising the maritime sector. All actors can and should collaborate towards safe, technically feasible and commercially viable zero emission shipping.
Long-term system change may chart the same course as with previous transitions, starting with niche markets that then expand, merge and replace the current regime and business models. What is meant by niche markets in shipping ecosystem is protected spaces, where trust is cultivated amongst all stakeholders to a level that allows experimentation, with co-evolution of technology and regulatory developments. Shipping will continue to have a primary role in the global economy in the following decades.
Discussions are shifting from vessels to assets, from environmental protection alone to sustainability, from performance to operational efficiency, from crew welfare to upskilling and reskilling of personnel onboard and ashore. Putting safety at the centre of every initiative in the energy transition pathway, shipping will excel technologically, foster new investments, embrace social justice issues and reset the definition of ‘readiness’ for the whole maritime supply chain, comprising its fleet, ports and the invaluable human element.
Anthi Miliou, Head of Sales – In Service at Lloyd’s Register
How can the advancements in technology change classification?
Our industry is transforming. Vessels and crews are more connected than ever before.
Access to information and innovative technologies are changing how our industry operates, taking classification to a new level. At Lloyd’s Register, we are looking at innovative ways of advancing the way we undertake surveys – using data and digital information to streamline classification. Through a combination of physical, remote and digital, we achieve optimum balance and efficiency. Nowdays, in an era of increased connectivity and advancements in technology, we build upon our human capital and expertise, augmenting the ability of our surveyors to support owners effectively.
We apply effective assurance techniques and we build trust in innovative technologies, ensuring vessels’ safety, operational availability and market competitiveness.
Elina Papageorgiou, Maritime Strategic Growth Director at Lloyd’s Register
What do you think are the biggest challenges that the industry will have to overcome?
The next 20 years are going to be hugely transformative for shipping as we look towards adopting new technologies that will reduce the longer-term emissions from shipping and the move to low and zero carbon fuels.
One has only to look back to 2022 to appreciate the volatility of the global economic outlook that will continue to present both uncertainties and opportunities. Very few would have predicted Russia’s invasion of Ukraine and the response of the Western world. Now, a year later, this conflict has had a profound impact. Globally, inflation is the leading concern for people around the world, overtaking coronavirus. Concerns on decreasing energy security is one of the biggest drivers of inflationary pressure. And China’s Covid Zero policy in place throughout last year had an impact across the maritime sector. On the other hand, for shipping, 2022 saw stock prices worldwide increase by 29% on average.
2023 looks to be a year of continued volatility and cautious optimism. Lower economic growth, higher inflation and concerns about debt sustainability are all negative indicators. However, the reopening of China is positive news and this suggests we will have mixed fortune for different sectors.
Regulation will have an impact, such as the mandatory implementation of EEXI (Energy Efficiency Existing Ship Index) for ships to measure their energy efficiency and to initiate the collection of data for the reporting of their annual operational carbon intensity indicator (CII) and CII rating. It is also mandatory for ships to have a verified Ship Energy Efficiency Management Plan, or SEEMP Part III, on board to document how their vessel plans to achieve its CII targets.
Continued uncertainty and challenges are the new norm but with opportunities and the resilience of the industry, the next decades of action will transform the world as we know it for generations to come.
Matina Petrou, South Europe New Construction Sales Lead at Lloyd’s Register
Do you think that shipowners and operators can retrofit their way through the maritime challenges, or will only new construction do?
The need to reduce GHG emissions remains one of the biggest problems for our industry to resolve. Alternative fuels and emissions abatement technologies are now on the agenda. However, the cost of these technologies, associated with the slow progress on global infrastructure and fuel availability, remain the major concern for shipowners.
CII compliance requirements and carbon pricing measures, if implemented, could result to stranded marine assets. Therefore, new building or retrofitting must be included in a company’s long-term strategy as early as possible.
Considering the increased shipbuilding prices and scarcity of shipyard slots, ship owners are reluctant to invest in new builds. Retrofitting assets can be an alternative, with the help of planning from experienced engineers.
Before selecting abatement or energy saving technologies, shipowners should carefully consider their fleet’s operational profile and carry out the relevant techno-economical estimations to mitigate the risk of investment. In addition, the selection of a shipyard with a competitive track record on conversions and retrofits is of utmost importance.
Lloyd’s Register with its network of global experts can provide valuable market insight and updates on the latest technological developments and assist shipowners with the selection of a technically and commercially viable newbuild or retrofit strategy.
Chrysa Tsesmeli, FOBAS Assistant Specialist at Lloyd’s Register
Are biofuels the route to shipping decarbonization?
In order to meet the IMO GHG reduction strategy targets by 2050, a switch to alternative low carbon or carbon-free fuels is inevitable. At this stage, there is no leading alternative fuel solution, with many different fuel options are being worked on such as ammonia and hydrogen or bio-based fuels such as bio-methane, bio-methanol etc. However, looking at the availability and technological challenges, biofuels such as FAME or alternative ones such as HVO are being considered as ‘drop in’ fuels to accelerate the energy transition.
Over the past couple of years, many ships have successfully trialed biodiesel. As there is no major modification or alteration required in the ships’ engines or other systems, biodiesel is considered a quick win. Ships need to have a thorough risk assessment before using such fuels as they have limited oxidation stability and are prone to microbial contamination when in contact with certain materials such as zinc or copper.
There are two main challenges hindering the widespread adoption of biofuels. Firstly, though they may reduce wake emissions, the whole process of biofuel production needs to be considered for its environmental impact, when assessing any benefit. Secondly, availability of biodiesel is scarce. Considerable investment is required to upscale production of biodiesel to make it a viable option for shipping industry.
Maria Vitoratou Zisimatou, Maritime Decarbonisation Athens Centre Senior Specialist, Team Leader, at Lloyd’s Register
What we can learn from the complexities of current and forthcoming environmental regulations?
Dealing with complexity requires early involvement, thorough understanding of usually poly-parametric situations, effective analysis, and focused collaboration. Starting from the latter, in a complex environment, no conclusion can be reached in isolation. Stakeholders are many and interrelations exist between commercial, legal, and technical pathways.
In this respect, the first step is to achieve an in-depth understanding of what the requirements call for, as in many instances we have seen that inaccurate perceptions exist. Building on that, proper analyses should follow, aligned with strategy mapping with respect to environmental compliance and how to approach the ESG framework. Knowing this as early as possible provides a company with a way to assess options in a dynamic manner. In other words, it is key to be prepared early not only for having the ability to explore more options but also for all the employees at sea and ashore to engage into the sustainability culture and be properly trained and educated. Lloyd’s Register acts as a trusted adviser to support our clients to navigate safely and confidently in a challenging regulatory environment.
