On the eve of Posidonia 2024, in an exclusive interview with AllAboutShipping’s John Faraclas, John McDonald, President and Chief Operating Officer of the American Bureau of Shipping, responds to the challenges and opportunities the shipping industry faces from the Classification Society point of view on new technologies, such as artificial intelligence, blockchain, autonomous systems, sustainability and environmental impact, cybersecurity, the future of Maritime technology evolving in the next decade and many more…
We bring you verbatim here below his replies:
AllAboutShipping/John Faraclas: What do you see as the most significant challenges and opportunities facing the Maritime industry today, particularly in the context of evolving technologies and digitalization?
John McDonald, American Bureau of Shipping: Uncertainty is perhaps the biggest challenge facing the industry today and this takes various forms. Uncertainty about regulation and compliance, costs, who pays the green premium and which way to jump on alternative fuels and technology.
This is partly because of another big theme – the sheer pace of change and how to handle that. The process of assimilating decarbonization technology creates safety issues that need to be addressed. One of the most important safety issues is the familiarization of the crew with new and emerging fuels and new technologies. For example, the industry has well-established experience in handling ammonia as cargo, but not as fuel, so there is a need for training, education and guidance that enables this to be done safely.
So training is another significant challenge, especially when you consider the skillset of the next generation of seafarers is going to require – dynamic fuels, digital technologies, cyber safety to name but a few – there is a clear requirement for training at scale. The question is who is going to pay for that?
There is plenty of opportunity out there. First movers in decarbonization and energy efficiency technologies could reap significant rewards, particularly under new regulation such as Fuel EU Maritime. Digital technologies also offer vast potential for more efficient operations, reducing emissions and operating costs.
AAS/JF: How is the American Bureau of Shipping (ABS) adapting its classification and certification services to support the integration of new technologies such as artificial intelligence, blockchain, and autonomous systems in the Maritime sector?
JM/ABS:Big data has become a cornerstone for innovation across industries. However, the complexity and sheer volume of this data often exceed the processing capabilities of traditional analytical methods.
ABS is responding by harnessing the power of artificial intelligence (AI), particularly its deep learning capability, and digital technologies to make sense of vast and intricate data sets as the foundation of the next phase of our safety mission and simplifying the complex landscape of marine operations for our clients.
Deep learning algorithms can process and analyze data at a scale and depth unattainable by human analysts or traditional methods. This is the thinking behind new ABS tools we are developing to answer questions on a huge range of subjects in a very short time frame. It is, ultimately, a reimagining of the way we provide our services, with AI providing high-quality, in-depth answers to regulatory, survey and engineering questions and ultimately ABS Rules requirements as well.
AI is the power behind the ABS Regulatory World Map and ABS Regulatory Tracker, a new set of data driven online tools using the latest technology and a deep database of the latest regulatory requirements impacting vessel design, construction and operations.
The map allows a client to quickly find applicable regional, national and port-specific requirements and incentives before entering a port. The tracker is designed to simplify the process of staying up to date with IMO requirements. For vessel designers, shipyards, owners and operators, this tool features a reliable and intuitive way to quickly identify upcoming regulations that might affect new designs or retroactively impact existing vessels.
We are also researching the potential of generative AI to revolutionize the relationship between class and shipyards, optimizing the design process with instant vessel models. Generative AI is used to identify the patterns and structures within existing data to generate new and original content. In this case the training materials are existing models of ships with finite element meshes that the AI uses to build a new version to the shipyard’s specification in seconds instead of weeks of labor.
Autonomous operations is another area with a lot of focus at ABS. We are partnering with some of the industry biggest players to support development of autonomous functions on board. We are working on tugs and LNG carriers, offshore assets and many other vessel types to advance safe application of the technology. We also recently approved the first uncrewed surface vehicle, the Saildrone Voyager. It’s essentially a 10-meter drone and is the first autonomous asset built to ABS Class using the ABS Requirements for Autonomous and Remote Control Functions.
AAS/JF: With the increasing focus on sustainability and environmental impact, how is ABS promoting and supporting the adoption of green technologies and practices within the Maritime industry to reduce emissions and enhance sustainability?
JM/ABS:Support from ABS for the industry’s decarbonization journey comes in many forms. We participate in hundreds of Joint Development Projects, many of them pioneering – in fields as diverse as ammonia, hydrogen and liquefied CO2 carriers as well as carbon capture technology.
Decarbonization also requires development of the rules, the guides and the related documents and Approvals in Principle that encourage innovation. These programmes also mean that class must continue to develop in-house talent relative to new technologies and add to our skills base when needed.
ABS operates a Global Sustainability Center in Houston, Copenhagen, Athens, Singapore and Shanghai – that are assisting our clients on new fronts, to address new challenges of sustainability.
We are also developing digital tools to simplify compliance with environmental regulation for our clients. A good example is Carbon Diligence, which offers simplified emissions validation and access to critical decarbonization KPIs, helping to make quicker and smarter decisions.
Achieving the reduction targets that have been set for shipping requires the existing fleet to become much more efficient. It will not be possible to completely renew the existing fleet to use alternative fuels by 2050, which means the need to retrofit a large percentage of the existing fleet is essential.
There is a significant amount of work to be done between now and 2050 if we hope to hit net zero. Our research also shows that this can be achieved, and we continue to map the pathway for the industry to get there. We will need to harness the potential of energy efficiency improvement technologies to reduce aggregate fuel consumption by 15 percent on the existing fleet and newbuild vessels. At the same time, we will need carbon capture rolled out across much of the oil burning fleet, reducing onboard CO2 emissions by 70 percent. Those that do not or cannot adopt carbon capture may need to switch to e-diesel or zero-carbon biofuels.
The industry is in a continuous process of change. There are very challenging times ahead, but we are on the right path to a more sustainable industry.
AAS/JF: How do you envision the future of Maritime technology evolving in the next decade, and what role does ABS play in driving innovation and ensuring safety standards in this rapidly changing landscape?
JM/ABS: We have recognized for some time that the next wave of innovation is coming, and we need to be ahead of it to ensure safety can adapt. To that end, we have built a technology foundation to innovate in a new digital landscape across industry sectors and processes, to equip the marine and offshore industries for important challenges as they transition into digitalized operations on a sustainable trajectory to net-zero carbon.
This has involved adopting techniques from other industries like aerospace and automotive, such as product life-cycle management databases, natural language processing (NLP) and multi-physics modeling and simulation.
Technologies like digital twins, augmented reality (AR), autonomy and artificial intelligence are changing maritime and are being added to our Rules, standards and the service infrastructure for which we are known to ensure safety keeps pace with the rate of technological advancement.
We are excited about new visualization technologies like AR and mixed reality (MR) that have the potential to provide users with realistic virtual representations of assets that can play an essential role in training and inspection. Combined with advanced sensor information, visualization technology could provide a user with real-time and historic information for a vessel or offshore asset, possibly aiding in future autonomous or remote-control functions.
The continued evolution and maturity of AI and machine learning can support the development of sophisticated digital twin models and could eventually enable effective condition-based maintenance.
Carbon Capture has the potential to play a key role in the energy transition puzzle, enabling the continued use of hydrocarbons and the production of blue fuels. Development of this technology onboard is going to be important, as is the transport of CO2 by sea.
Increased electrification is another foundation of the energy transition and this technology is likely to see significant development. Energy storage systems such as batteries or supercapacitors offer broad application possibilities, including being used in hybrid systems on traditionally fuelled vessels.
Advances in alternative energy systems, such as fuel cells, hybrid systems and nuclear power, are also likely given their ability to contribute to decarbonization of the global fleet. As international regulations evolve and advanced reactor development matures, nuclear power has exciting potential for providing maritime industries with a zero-emission energy source. ABS is working with industry partners and governments to support its development.
ABS is responding to the speed of technology development by positioning our services closer to our clients, to ensure the right capabilities are in the right location. This is why we have opened a network of Global Technology Centers in key maritime locations. We have created the Singapore Innovation and Research Center and, also in Singapore, the Global Electrification Center. Then we have the Ship Design and Innovation Center in Shanghai and the Intelligent Systems Technology Center in Seoul, the Global Ships Systems Center in Athens, the Engine and Control Systems Center in Copenhagen and a Global Technology Center in Houston.
AAS/JF: As cybersecurity threats continue to pose a significant risk to the Maritime industry, what measures is ABS taking to enhance cybersecurity standards and promote a secure digital environment for vessels and maritime infrastructure?
JM/ABS: Cyber-enabled physical systems send oceans of data streaming off vessels, introducing new vulnerabilities and meaning we now need to be able to understand what we cannot see. This is a new addition to the safety approach as well as structure and mechanics, now we have an emerging safety system related to software and data.
A range of industry stakeholders, including regulators, the U.S. Coast Guard and investors, expecting owners to be able to demonstrate that they have taken the necessary steps to protect their assets against cyber vulnerabilities.
The ABS CyberSafety team brings decades of maritime and high-tech manufacturing control system cybersecurity experience to developing the industry’s first practical guidance for establishing a cybersecurity plan that is scalable to the needs of an individual fleet. We have developed a clear and simple method for understanding, measuring and mitigating the risks inherent to cyber-enabled equipment, with support at every stage of an asset’s lifecycle.
AAS/JF: How would you deal with the demand for class related services and consultation services related for example, to new technologies that are not yet assessed in the current rules and regulations?
JM/ABS: The rate of technological development is so rapid and brings with it profound safety challenges that traditional prescriptive approaches may start to struggle to keep pace. And this could cause a block on the innovation and adoption of technology that we will need if we are to hit 2050 targets.
This is why ABS has changed its approach, introducing comprehensive rules designed to adapt to a new and dynamic technological world. ABS Marine Vessel Rules now include an extensive set of newly developed functional requirements and a standardized risk-based methodology which provides a path for class approval. These rule enhancements are a result of a multi-year collaboration with industry, shipyards, owners, equipment manufacturers, designers and regulators.
By enhancing our rules with risk-based requirements and strengthening our technical content to add functional requirements aligned to prescriptive criteria, ABS enables the safe and rapid adoption of innovation and technology to support the industry’s evolving decarbonization and digital strategies.
Under key safety and environmental objectives, the rules introduce categories of critical ship design elements, each underpinned by detailed functional requirements, which are comprehensive, easily accessible and provide clear technical guidance.
Alternative arrangements and new technologies may be accepted if designers, shipyards, owners, equipment manufacturers or others demonstrate compliance with the functional requirements. Applicable ABS prescriptive rules remain in place for conventional designs, technologies and arrangements that follow the traditional approval process.
AAS/JF: and finally, what is the role of the ABS group? What extent does it relates to the bureau classification services?
JM/ABS: The ABS value proposition is derived from the three different parts of our business — with ABS Bureau’s core classification services, the ABS Group of companies, inc.’s (ABS Group) risk and consulting services and ABS Wavesight’s maritime software as a service working together to deliver enhanced value for our clients.
ABS GROUP provides comprehensive engineering and risk management solutions to support safer, more reliable assets and operations in a range of industries in addition to marine and offshore, including oil, gas and chemical, power and energy, industrial manufacturing and government.
ABS Group’s risk consulting subsidiary, ABS Consulting, has developed a unique and holistic approach to risk management based on decades of industry-wide experience that considers the total risk picture. It helps our clients manage and mitigate both catastrophic and operational risk.
ABS Consulting’s data-driven risk and reliability solutions cater to clients’ unique needs, ultimately helping them create a safety culture that becomes an inherent part of the organization.
Thank you very much Mr. McDonald for your swift response and enjoy Posidonia 2024!
