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Home Marine InsuranceArbitration The Maritime Advocate–Issue 852

The Maritime Advocate–Issue 852

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Editor: Sandra Speares | Email: contactus@themaritimeadvocate.com

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IN THIS ISSUE

1. Bad day at the office
2. Trade routes
3. Women in transport
4. Red Sea costs
5. German shipping
6. QualShip
7. NIS2 compliance
8. Cargo Safety Programme
9. LNG design
10. Sustainability services
11. West changes
12. Arbitration bias
13. Fire safety
14. Sustainable fuels
15. Kongsberg development

Readers’ responses to our articles are very welcome and, where suitable, will be reproduced. Write to: contactus@themaritimeadvocate.com


1. Bad day at the office

By Michael Grey

Once upon a time, your accidents did not present themselves to a global audience, even before the wreckage had been cleared away. But that was before the onset of CCTV and mobile phones made everyone into voyeurs, able to comment on the mishaps of others, possibly even selling the footage to the highest bidder.

This thought occurred, when watching the slow-motion demolition of half the Turkish port of Evyap by the containership YM Witness, with the forward flare wrecking three of the port’s container ship-loading cranes. Investigations, we are told are continuing, which is something of a statement of the obvious, although it appeared to be an accident that may not be quite so easily explained.

The miracle, amid the spectacle of crashing steelwork, with one crane falling bodily along the quay, one collapsing as only a container crane does and the middle device falling onto the ship’s foredeck, was that only one person was reportedly injured. Some alert person had made sure that the mooring gangs were not exposed on the quay as the ship approached, or at least encouraged them to depart with alacrity, before all that tonnage of overhead steel tumbled among them. The jib, which crashed down and straddled the ship, even managed to push some of its stacked boxes into the harbour.

We have seen too many of these crane-strike incidents for them to be in any way remarkable, although this was notable for the extent of the damage. It was some years ago that I met a specialist who spent his whole life jetting around the world investigating the circumstances for insurance purposes of crane loss and damage and he told me that his life was increasingly busy. What surprised me was his assertion that weather did far more damage than out-of-control ships, as stevedores often seemed to forget to lash down their huge structures with a storm approaching. Then the loose cranes were blown, one into another, and sometimes collapsed into unrepairable mounds of scrap.

The Turkish devastation would appear to be due to either some mechanical failure or misjudgement, with the ship canting towards the quay, with headway, at the worst possible moment. It otherwise did not appear to be a difficult approach, in an unobstructed harbour, in daylight, with a quay uncluttered by other ships.  A slow approach, to lie parallel to the quay, before using the tug and bow thruster to push the vessel alongside, would have been the desired strategy for docking.

The ship’s VDR will surely provide the investigators with a blow-by-blow account of the incident. Perhaps the engine refused to go astern, or perhaps an astern engine movement caused the bow to swing to port. Maybe the thruster refused to thrust when it was needed. A 14000teu ship may be no monster these days, but it is no minnow and it might be asked (perhaps with unfair hindsight), whether more tugs might have been employed both to shove the ship alongside and to act as a controlling brake. But tugs cost money and cheaper options are often demanded in this close-quarters risk business, without their comforting insurance.

I am constantly amazed that pilots seem able to manoeuvre bigger and bigger ships into smaller and smaller berths, with the safety envelopes around them shrinking. It would be, in my opinion, perfectly excusable to tell the port authority, or shipping company owner of some gigantic new monster that the ship is just too big and the port will need to be expanded or the turning circle dredged afresh. But they never do, (or we never hear about it) and the ships, ever larger, keep coming.

They might have the facility of brilliant simulators to hone their handling of these ships, but  there is just no denying the levels of skill (and nerve) that are required. And that in an unforgiving era, where the greens are shrieking about emissions and the need for less powerful engines, everyone is yelling for tighter schedules and faster port turn-rounds and the Houthi pirates are wrecking the supply-chains. The amazing thing is that more cranes don’t end up as scrap. 

It was interesting to read in the latest UKMPA Pilot magazine that a trial with the then biggest containership in the world demonstrated that a boarding pilot took some eight minutes between the boat arriving alongside and an appearance on the bridge. Some interesting implications there, in a busy roadstead, if you think about it. You wonder whether the designers of these fancy new containerships, with the bridge perched on the forecastle head, have thought of that one. But the drivers will be worryingly close to the action, if they get too near to a crane.

Michael Grey is former editor of Lloyd’s List


2. Trade routes

Growth in demand for container shipping imports from China into Mexico in January 2024 increased by 60% compared to 12 months ago, further fuelling suspicions it has become a ‘back door into the US’.
 
This is now one of the strongest trade lanes in the world according to analysts at Xeneta, with 117,000 TEU shipped in January of this year compared to 73,000 TEU in January 2023 (source: Container Trades Statistics).
 
Annual growth in container shipping between China and Mexico had already increased by 34.8% in 2023 compared to just 3.5% in 2022.
 
Peter Sand, Xeneta Chief Analyst, believes the latest data may be further evidence of businesses attempting to circumvent tariffs on goods imported from China into the US, which have ramped up during the ongoing trade war between the nations.
 
He said: “The strength in trade between China and Mexico was building during 2023 but the latest data for January 2024 reveals a massive increase. It is probably the fastest growing trade on planet Earth right now.
 
“A sizeable proportion of the goods arriving in Mexico by ocean will likely be trucked into the US, which gives rise to the suspicion that the increase in trade we are witnessing is due to importers trying to circumvent US tariffs.
 
“In a purely hypothetical scenario, if this growth rate continues, by the year 2031 there will be more containers imported from China into Mexico than the US West Coast. That demonstrates just how rapid the increasing rate of demand for ocean freight shipping has been.
 
“Only last year Mexico City opened a new cargo-only airport, which is another sign that imports are scaling up. I doubt this is happening due to increased demand in Mexico only, but more likely because it is a back door into the US.”
 
Importing into Mexico West Coast ports from China is seen as a viable alternative to goods arriving directly into the US West Coast, but importers will face a potentially volatile ocean freight shipping market as volumes continue to increase.
 
In April 2023, Xeneta data shows long term rates for ocean freight shipping from China to Mexico West Coast dropped below rates into the US West Coast at USD 2110 per FEU and USD 2190 per FEU respectively.
 
Since that point, long term rates have swapped over five times in terms of which trade is the more expensive before finally converging to almost the same level on 14 March this year at USD 1887 per FEU into Mexico West Coast and USD 1892 per FEU into the US West Coast.
 
Sand said: “A maturing trade is also a potentially volatile trade in terms of both the cost of ocean freight shipping rates and service reliability.
 
“If importers are choosing to switch ocean supply chains to the Mexico West Coast there are risks associated with it. This is a prime example of how the ‘best option’ for shippers is likely to change over time as the market develops.”


3. Women in transport

The Women in Transport Equity Index 2023 Report, which looks at gender disparities within the UK transport sector, was released recently. The report   calls for urgent action to break down systemic barriers and forge a path towards a truly inclusive and equitable industry.  

The survey examines workforce composition, leadership diversity, the gender pay gap, and career development.  

Index findings include:

  • Some 23% of the workforce being women, more than half of whom are in non-transport roles.
  • 58% of organisations admitting to a gender pay gap of 11% or more, surpassing the national average.
  • Some 54% of organisations lacking formal targets, commitments, or quotas for gender diversity.
  • 59% offering  no support to primary carers in the form of paid parental leave.
  • While 94% of organisations claim to be open to discussing flexible working arrangements, the reality for women remains far from ideal.
  • 88% offer flexible start and finish times, but this alone falls short of addressing the deep-rooted gender disparities.

Sonya Byers, CEO of Women in Transport, said, “Our report is a wake-up call. The UK transport sector needs urgent and drastic changes to become a beacon of gender equity. It’s time for the sector to move beyond lip service and embrace transformative actions for a fair and inclusive future. This can only be achieved through cross-sector collaboration”.
 
Recommendations for Immediate Action:

  • Scrutinise and rectify the   gender pay gaps within their structures.
  • Implement radical, impactful measures for internal promotions.
  • Champion industry-wide initiatives to empower women into leadership positions.
  • Overhaul policies surrounding paid parental leave, a fundamental right denied to a significant portion of the workforce.

4. Red Sea costs

Persistent missile attacks by Houthi rebels on ships plying the Red Sea route have led to soaring emissions liabilities for shipping companies under the EU ETS as lengthy voyage diversions for Europe-bound vessels have multiplied fuel consumption, according to OceanScore.

An increasing number of commercial ships have been taking the alternative route to Europe via the Cape of Good Hope – adding around 9000 nautical miles, or 80%, to the distance sailed – to avoid the Houthi threat as over 50 vessels passing through the Bab-el-Mandeb strait have so far been targeted by the Iran-backed militant group despite protective measures by a broad multi-national coalition.

The latest figures from Clarksons Research show that container ship transits via the Gulf of Aden to the Mediterranean have dropped 91% from the first half of December as around 620 vessels have been diverted, while bunker and crude tanker transits are down 37% and 31%, respectively. Conversely, Cape of Good Hope tonnage arrivals have risen 81% since December.

The consequent disruption to critical trade routes has resulted in spot freight rates increasing by two to three times versus pre-disruption levels while charter rates are up 28% from December, according to Clarksons.

Furthermore, Hamburg-based maritime technology firm OceanScore has calculated the widescale diversion of marine traffic is fuelling the costs of shipping companies due to significantly higher exposure to the EU Emissions Trading System (EU ETS), which imposes liability for 50% of emissions for voyages to and from the EU and 100% for port calls and transits within the bloc.

OceanScore has estimated the route via the Cape has tripled bunker consumption due to the longer distance and an approximate 25% increase in sailing speed from 16 to 20 knots, based on its AIS tracking of mainly container vessels.

“We have observed increased speeds to compensate for at least some of the longer distance – to keep sailing times and the need for additional tonnage to be deployed at acceptable levels – and this has an inevitable impact on fuel consumption and emissions,” OceanScore’s co-Managing Director Albrecht Grell says.
 
Modelling analysis conducted by the firm, based on the case of a 14,000-TEU container ship, has shown the number of EU Allowances (EUA), or carbon credits, necessary to cover emissions would rise from 1800 per voyage to 5200 per voyage with the current 40% liability requirement under the three-year phase-in of the EU ETS from 1 January 2024, rising to 70% next year and 100% in 2026.

This would translate into a near-threefold increase in EUA costs from €98,000 to €285,000 per voyage this year, based on the current carbon price of around €55 per tonne of CO2, or a hike of €18 per twenty-foot equivalent unit (TEU), according to OceanScore, which is supporting companies with its web-based ETS Manager application for tracking, accounting and allocation of EUAs.

Grell points out that, if the volatile carbon price returns to the level of around €100 that it reached a year ago, these costs would nearly double. “With complete phase in of the EU ETS to 100% of emissions, we would see another 250% increase that would bring the cost mark-up per box to around €80,” he says.

“It goes without saying that changes in sailing speeds, different vessel sizes, utilizations and the overall energy efficiency of the vessel used will all have a significant impact on the above analysis – but the general trend will be the same,” Grell adds.

While €80 per box “sounds like a lot of money”, he underlines that EUA liabilities are still not the major cost driver for current high freight rates that reflect increased bunker expenses and tonne-miles sailed with the Cape route.

“The threat level to Red Sea shipping remains high and it is uncertain how long this situation will persist for ocean freight given the Houthi attacks continue unabated. Shipping companies must therefore prepare and take account of higher emissions liabilities for the foreseeable future,” Grell says.
“Ultimately, however, the issue of EUA and other costs is secondary to ensuring the safety of crews and ships, which of course is the primary consideration and must remain paramount.”


5. German shipping

The German Shipowners’ Association (VDR) has published new data on the situation of the German shipping industry. President Gaby Bornheim and CEO Martin Kröger were able to report positive developments despite a difficult geopolitical environment for the shipping industry: Overall, Germany continues to have the seventh largest merchant fleet in the world and remains world leader in container shipping. Recently, significantly more young people have also opted for a career in the shipping industry.

 Shipping is increasingly confronted with challenges caused by wars and conflicts. The Red Sea has become unsafe for navigation owing to attacks on merchant vessels by Houthi rebels, a situation stemming from the ongoing conflict in the Middle East. Large parts of the Black Sea remain a war zone and high risk area for shipping due to Russia’s attack on Ukraine. Additionally, the strain between China and Taiwan, along with tensions in the South China Sea, are continuously intensifying.

“The current geopolitical developments are worrying. Even though the shipping industry is in principle crisis-tested and can react flexibly to new geopolitical conditions, stability and security are essential in the long term. If maritime supply chains continue to be constantly disrupted, at some point our sea-based supply will be at risk,” explains VDR President Gaby Bornheim. Germany conducts approximately 60 percent of its import and export activities via shipping routes, facilitating the entry of essential goods such as energy, food, clothing, technology, furniture, and medicines into the country.
 “Maintaining a robust merchant fleet within the country is, and continues to be, of paramount importance for Germany. The encouraging current figures highlight the stability of the German merchant fleet,” says Martin Kröger, CEO of the VDR.

At the end of 2023, the German merchant fleet consisted of a total of 1,800 ships (previous year: 1,839 ships) with a gross tonnage (GT) of 47 million (previous year: 44.8 million GT). This means that Germany remains the seventh largest shipping nation in the world. Greece, China and Japan occupy the first three places in this order. Germany remains the leader in container shipping (29 million GT), ahead of China (28.1 million GT).

The majority of German shipping companies are small and medium sized enterprises. 80 percent of the companies have fewer than ten ships. 881 ships in the German merchant fleet fly the flag of an EU country at the stern, among them 259 the German flag, 386 the flag of Portugal, 135 the flag of Cyprus, 41 ships the flag of Malta, and 60 the flag of another country of the EU. Therefore, every second German ship sails under the flag of an EU country.

Attracting and competing for young talent is of critical importance to the shipping industry. Thus, it is heartening to observe that the number of new training contracts in the shipping industry for the 2023 training year has increased by approximately eleven percent compared to the previous year. Last year, 418 young people started training at sea (previous year 377) and 214 on land (previous year 192).

“The future of our shipping sector hinges on the skills and enthusiasm of well-trained young individuals. Their contribution is essential for advancing and future-proofing shipping in Germany. It is encouraging to see a growing interest among the youth in pursuing careers in the shipping industry. We remain committed to drawing young talent to maritime professions, reinforcing the notion that shipping is an attractive and promising field of work,” says VDR President Bornheim.

One of the biggest challenges facing shipping is the transition to climate-neutral operations by 2050. The industry is undertaking significant efforts and investments to realize this goal. In a landmark decision, the European Union has resolved to incorporate maritime shipping into the EU Emissions Trading System starting in 2024. Consequently, shipping companies will be required to compensate for their CO2 emissions within the EU and acquire emission rights.

“We endorse the principle of emissions pricing, recognizing it as a potentially effective tool for enhancing climate protection,” says Martin Kröger. “Nevertheless, it is imperative for the German government to now promptly specify the modalities of integrating shipping into the emissions trading scheme, as a legislative proposal to transpose the european regulation into national law has yet to be presented. For us, the cornerstone of our operations is not only planning certainty but also the assurance of uniform competitive conditions on an international scale. While we support emissions pricing as a policy measure, it must be implemented consistently across the globe. The fragmented approach of regional specificities is untenable for global shipping and undermines effective climate protection. Furthermore, we seek to avoid the redundancy of compensating for the same emissions more than once,” says the VDR CEO.

All new data on German merchant shipping can be found at: https://www.reederverband.de/en/facts-figures-maritime-shipping-germany


6. QualShip

The Republic of the Marshall Islands (RMI)   has once again achieved the  United States Coast Guard’s (USCG’s) QUALSHIP 21 status, marking 20 consecutive years.

“Compliance is very important to us as a registry,” commented Bill Gallagher, President of International Registries, Inc. and its affiliates (IRI), which provide administrative and technical support to the RMI Registry. “In today’s environment, owners and operators benefit from having an active and engaged partner by their side supporting them from not only the technical, compliance, and inspections side, but also in having an active dialogue with global PSC,” he continued.

“Our fleet operations and technical teams meet regularly with PSC authorities and representatives to learn, discuss, and work together,” said Brian Poskaitis, Senior Vice President, Fleet Operations. “The RMI values the QUALSHIP 21 program and has sustained the highest level of compliance of any flag year-over-year. Stakeholders that take this program seriously know that it drives compliance and improves fleet quality worldwide,” he continued.

“Our fleet operations teams meet with PSC authorities to share our inspections and audit processes, solicit feedback, and ensure two-way open communication. We share information from PSC with our owners and operators and develop resources to help them efficiently prepare for inspections, make informed decisions, and ultimately reduce the risk of disruption to their itinerary and keep the ships moving safely,” noted Chief Commercial Officer Theo Xenakoudis.


7. NIS2 compliance

As the EU NIS2 Directive deadline looms on the horizon, organisations worldwide are proactively getting ready to comply, classification society DNV says. The NIS2 Directive aims to bolster cyber security capabilities across essential and important sectors across the EU. While some nation-states have yet to announce specific laws, action is needed now if a company falls under these categories. Achieving compliance can be time and resource-intensive, particularly for companies still developing their cyber security organisation. Why wait until the eleventh hour?

DNV has put together some helpful resources with best practices and practical information to provide guidance in defining if an organisation falls within the scope, and if so, to provide support in building a successful strategy to comply with the NIS2 requirements.

Access the NIS2 Resource Centre


8.  Cargo Safety Programme

Despite mandatory international and national regulations on the transport of dangerous goods, these goods continue to be mis-declared or not declared, driving an alarming increase in ship fires. Addressing the need for improved safety measures, the World Shipping Council (WSC) is developing the Cargo Safety Program and has announced that the National Cargo Bureau (NCB) has been selected as the independent provider for the Cargo Safety Program digital platform.

NCB is a non-profit organisation and leader in delivering safety initiatives and services to the maritime industry. Its software, Hazcheck, used for the detection, inspection, and validation of dangerous goods, is well-established in ensuring the safe and compliant transportation of cargo. The WSC Cargo Safety Program solution will be an evolution of that platform building on Hazcheck Detect, a proven cargo screening tool currently processing over 10 million bookings per month. The system emphasizes the importance of standardization and a unified approach to cargo screening and inspection, including a feedback loop for inspection results, ensuring that safety procedures are consistent and comprehensive.

“WSC and NCB have a shared commitment to the safety of life and cargo at sea. With NCB’s considerable expertise and experience, the Cargo Safety Program is a substantial new tool for making workplaces safer for ship crews, transport workers, and communities, as well as enhancing operational efficiency for shippers,” explains John Butler, President & CEO of the WSC.

“As an organization founded with the purpose of preventing maritime disasters through the enhancement of safety, we are honoured to be selected to deliver this solution and are excited to witness the collaborative benefits of a global, standardized approach to cargo screening and inspections. This is truly a transformational step for the industry,” says Ian Lennard, NCB President and CEO.”

The Cargo Safety Program will rely on a digital solution made up of a Common Screening Tool, Verified Shipper Database, and a Database of Approved Container Inspection Companies, provided and operated by NCB as an independent third-party vendor.

The core functionality of the system will be to screen booking information against a comprehensive keyword library and risk algorithm. High-risk bookings will be flagged for further investigation and/or inspection, and lessons learned through experience will be used to continuously improve the screening tool.  The emphasis is on identifying and correcting worrying conditions before containers with dangerous cargoes are introduced into the supply chain.

This common safety approach will significantly mitigate the risks associated with non-declared or improperly declared, labelled or packed dangerous goods across the supply chain. At the same time, the system will streamline the transport of compliant dangerous goods in line with national and international regulations.

Learn more about the Cargo Safety Program: Cargo Safety Program — World Shipping Council


9. LNG design

Bureau Veritas (BV) has announced the successful conclusion of a Joint Development Project (JDP) with Hanwha Ocean for the development of a 270K LNG carrier.

Hanwha Ocean’s proprietary hull design for a 270K LNG carrier was developed to anticipate and fulfil the future demands of the LNG market. By optimising the hull’s performance and maximising cargo capacity, it exceeds the capabilities of the existing 263K LNG and FSRU design. This collaboration marks a significant milestone in the partnership between Hanwha Ocean and Bureau Veritas, showcasing their combined expertise in advancing cutting-edge LNG carrier technology.
 
Throughout the project, Hanwha Ocean prepared the development of Hull Key Drawings for the 270K LNG carrier design in compliance with BV’s requirements and relevant regulations. Subsequently, Hanwha Ocean and BV agreed to jointly develop this new size vessel to secure structural reliability and obtain an Approval in Principle.
 
To verify the Hull Key Drawings provided by Hanwha Ocean, BV performed 2D local scantling and 3D Cargo Hold Finite Element Analysis, assessing the longitudinal strength of the hull, as well as the yielding and buckling of longitudinal and transverse members. Fatigue analysis was also conducted using a local fine mesh to evaluate the details of hull structures sensitive to fatigue.
 
Upon the completion of the comprehensive verification of the hull design, the certification was delivered to Hanwha Ocean on February 28, 2024.
 
Sang-Don Kang, Vice President of Basic Design Department of Hanwha Ocean, said: “The newly developed 270K LNG carrier is dedicated to minimizing unit freight costs, and ensuring structural robustness for the vessel’s safety performance. I am pleased that the structural reliability of this new vessel will be verified once again through this JDP with BV.”
 
Capt. Drago Pinteric, Country Chief Executive, Bureau Veritas Korea, commented: “The development of a new standard 270K LNG carrier holds immense importance for BV as it aligns with our core responsibilities of ensuring safety, compliance, and quality in maritime operations. This involvement reinforces BV’s commitment to industry leadership, innovation, and the promotion of sustainable and safe shipping practices. We commend the strong collaboration between Bureau Veritas and Hanwha Ocean, showcasing a robust partnership in the maritime and related industries. Such alliances contribute to enhanced safety, quality assurance, and sustainable practices in the ever-evolving maritime landscape.”


10. Sustainability services

IR Class Systems and Solutions, through its division – Indian Register Quality Systems (IRQS),   has announced the introduction of a pioneering initiative aimed at advancing environmental responsibility across maritime and non-maritime sectors. The suite of sustainability services encompasses ESG (Environmental, Social, and Governance) and GHG (Greenhouse Gas) verification, validation, training, and certification, marking a significant milestone in its commitment to promoting sustainability.

These services aim to assist diverse stakeholders in understanding, implementing, and adhering to sustainability standards and regulations. By offering verification, validation, and certification services, ISSPL-IRQS ensures that sustainability efforts are credible, transparent, and compliant with industry norms and regulatory mandates.

Commenting on the initiative, Vinay Kshirsagar, Director at ISSPL, stated, “Our new suite of sustainability services underscores our dedication to driving positive environmental outcomes. By providing stakeholders with assurance and expertise, we empower them to embrace sustainable practices and navigate the complexities of sustainability standards and regulations.”

In addition to verification and certification services, ISSPL-IRQS offers comprehensive training programs designed to enhance the expertise and capabilities of professionals across various disciplines. These programs enable professionals to integrate sustainability considerations into their daily operations and decision-making processes effectively.


11. West changes

The West of England P&I Club (West) has announced the creation of two new specialist claims teams and a number of key promotions in its London office, in response to evolving trends in shipping’s claims landscape.
 
To enhance and strengthen the West’s service, and to build on the existing expertise within its claims department for crew, passengers, and third-party personal injury and death claims, West has established a People Claims Team. This new team will also provide a platform for knowledge transfer and training across all of the Club’s regional offices.
 
West has also established a Charterers Comprehensive Cover (CCC) Claims Team to provide a focused service for handling the claims generated by this class of business. Charterers cover is an increasingly important and expanding area for the Club, with continued growth in this sector as highlighted in West’s recent renewals circular.


12. Arbitration bias

Apparent bias in arbitration: treading a fine line is the topic in the recent Hill Dickinson viewpoint In most cases where a party to an arbitration seeks to have an arbitrator removed on the grounds that there are justifiable doubts as to their impartiality, the allegation is usually that the arbitrator has demonstrated apparent, not actual, bias.

The applicable test, an objective one, was laid down by the Supreme Court in Halliburton -v- Chubb [2021] AC 1083 and is whether a fair-minded and informed observer, having considered the facts, would conclude that there was a real possibility that the tribunal was biased.

In this case, the English Commercial Court removed a sole arbitrator under s.24 of the Arbitration Act 1996 (the Act). The Court found that there could be no reasonable objection to the fact that the sole arbitrator knew a number of the factual witnesses and all three of the expert witnesses on one side. That was to be expected in a relatively small and specialist industry. However, the Court agreed that there was an appearance of bias, based on the arbitrator’s remarks about the parties’ expert witnesses generally, and in particular the remarks made towards the assured’s experts, which suggested that the arbitrator did not have an open mind on one of the central issues in dispute. For full details see the Hill Dickinson website.


13. Fire safety

A new fire safety study by   Survitec has revealed that existing fire-fighting methods used to extinguish machinery space spray and pool fires on conventionally fuelled vessels are inadequate when dealing with methanol-based fires.

This follows extensive comparative fire tests on dual-fuel marine engines using diesel oil (DO) and methanol, carried out amid growing interest in methanol as an alternative marine fuel.

“Our tests confirm that traditional water mist fire suppression mechanisms do not perform as expected on methanol pool fires and methanol spray fires. A completely different approach is required if these ships are to remain safe,” said Michal Sadzynski, Product Manager, Water Mist Systems, Survitec.
 Methanol is a methyl alcohol (CH3OH) that burns in a completely different way than hydrocarbon  fuels and has a much lower flashpoint of 12°C (54°F). However, while there are established fire safety regulations and testing standards for diesel fuels, clear test protocols for alcohol-based fuels such as methanol and ethanol have yet to be developed.

“We believe this is a high-risk situation that needs immediate action,” stressed Sadzynski. “Methanol fires are far more aggressive than fires involving traditional hydrocarbon fuels. Methanol fires have different physicochemical properties and so they cannot be extinguished as easily or with the same approach.”

The Survitec tests found that while water mist systems are highly effective in absorbing heat and displacing oxygen on diesel fires, they do not produce the same results on methanol fires.

“We had to completely rethink nozzle placement, spacing and other factors to make water mist suppression effective on methanol. For instance, the range for nozzle installation height is much lower than that needed to put out a diesel fire,” he said.
 This finding indicates that if existing vessels are retrofitted to run on methanol, they would need to overhaul and redesign their fixed fire-fighting arrangement completely.

For bilge areas, statutory rules formulated in IMO MSC.1/Circ.1621 establish a requirement for an approved alcohol-resistant foam system for ships running on methanol. For the first time, a fixed, low expansion foam system is mandatory under the rules when it comes to protecting machinery space bilges.

“Our tests demonstrate that standard discharge devices do not properly extinguish methanol pool fires in the confined bilge space. It is crucial to deliver properly expanded foam on the methanol pool fire and this is not an easy task within such a narrow space where throw length is limited,” said Maciej Niescioruk, Product Manager, Foam Systems, Survitec.

He said, “MSC.1/Circ.1621 provides us with a starting guideline but it is very general and therefore open to interpretation. Moreover, methanol compliance for Local Application Firefighting (LAFF) systems is not yet covered. As an industry, we need to come together and develop comprehensive and robust fire test standards and safety rules tailored to methanol’s unique properties.”

The stark conclusion of the investigation arrives at a time of increasing orders for methanol-fuelled ships. The greener fuel is seen as a panacea to meeting the industry’s emissions abatement targets, and forecasts predict accelerated adoption rates.

Orders for methanol-fuelled newbuilds increased by 9% in the last 12 months, 2% more than those for LNG-fuelled ships. Analysts suggest the methanol-fuelled fleet will account for 20mgt by 2028.

“We are seeing a significant uptake in orders for methanol-fuelled vessels, with 2023 being the breakout year for this alternative marine fuel. With more methanol-powered ships being built every year, the industry must act now to prevent dangerous gaps in fire safety,” said Niescioruk.“We encourage all stakeholders to come together to address methanol’s unique fire risks and create clear standards, new testing protocols and updated safety rules for methanol.”


14. Sustainable fuels

Sustainable shipping fuels could reach cost parity with fossil fuels as early as 2035 with the help of decisive emissions policy such as carbon taxes and emissions limits, according to a new report launched by technology group Wärtsilä.

The report, titled ‘Sustainable fuels for shipping by 2050 – the 3 key elements of success’, reveals that the EU Emissions Trading Scheme (ETS) and FuelEU Maritime Initiative (FEUM) will see the cost of using fossil fuels more than double by 2030. By 2035, they will close the price gap between fossil fuels and sustainable fuels for the very first time.

Transporting 80% of world trade, shipping is the engine room of the global economy. However, despite being the most efficient and environmental way to transport goods, it emits 2% of global emissions, equivalent to the annual emissions of Japan. Without action, this could increase by more than 45% by 2050.

In 2023, the International Maritime Organization (IMO) set a target of achieving net zero emissions by 2050. Existing decarbonisation solutions, such as fuel efficiency measures, could cut up to 27% of emissions[v]. Wärtsilä’s report argues that sustainable fuels will be a critical step in eliminating the remaining 73% but radical action is needed to scale them. The industry suffers from a “chicken and egg” challenge – ship owners won’t commit to a fuel today that is expensive, only produced in small quantities, and may be usurped by another fuel that scales faster and more affordably. Meanwhile, it is difficult for suppliers to scale production without clear demand signals.

Wärtsilä has produced new modelling that shows a timeline of which fuels are likely to become widely available on a global scale, when and at what cost. To accelerate this timeline, the report argues that decisive policy implementation, industry collaboration, and individual operator action must coalesce to scale the production of these fuels.

Roger Holm, President of Wärtsilä Marine & Executive Vice President at Wärtsilä Corporation says: “Achieving net zero in shipping by 2050 will require all the tools in the toolbox, including sustainable fuels. As an industry, we must focus on coordinating action across policymakers, industry and individual operators to bring about the broad system change required to quickly and affordably produce a mix of sustainable fuels. Policy in Europe is showing just how impactful action at the international level can be, closing the cost gap between fossil- and low-carbon fuels for the first time.”

Wärtsilä’s modelling shows sustainable fuels will be 3-5 times more expensive than today’s fossil fuels in 2030. As ETS and FEUM show, policy is key to closing the price gap. The report argues that policymakers should:

Maximise certainty: Set an internationally agreed science-based pathway for phasing out fossil fuels from the marine sector, in line with IMO targets.
Boost cost competitiveness: Adopt a global industry standard for marine fuel carbon pricing.

Increase global collaboration between governments on the innovation and infrastructure necessary to deliver sustainable fuels at scale worldwide.

The sector must collaborate with stakeholders from inside and outside shipping. The report calls on industry to:

  • Pool buying power: Initiate sector-wide procurement agreements to pool demand from multiple shipping operators.
  • Collaborate with other sectors: Convene with leaders in aviation, heavy transport, and industry to establish a globally recognised framework for the production and allocation of sustainable fuels.
  • Share skills: Establish an industry-wide knowledge hub for the purpose of sharing expertise, skills and insights.

Every euro an operator saves in fuel costs at today’s prices, could be worth 3-5 times that by 2030. That means companies such as Carnival Corporation, which made a 5-10% efficiency gain through its Service Power Upgrade Program, could cut its fleet wide fuel costs by as much as $750 million per year in 2030.[vi] All operators can benefit from improving the efficiency of their vessels – the technology is readily available today.

Holm adds: “If there is one take away from our report, it is that smaller operators need not feel powerless. They have a major role in accelerating towards net-zero emissions shipping. Taking steps to improve fuel efficiency and invest in fuel flexibility can deliver immediate returns, reducing both emissions and operating costs. But action must be swift – we have the lifecycle of just a single vessel to get this right.”

Investing in fuel flexibility is the most financially viable way to avoid the risk of stranded assets. Wärtsilä has been developing multiple fuel options. Most recently, Wärtsilä launched the first commercially available 4-stroke engine for ammonia fuel, which can immediately reduce emissions by over 70%, compared to diesel.

The report provides a roadmap for the future of sustainable fuels, identifying how the industry can more rapidly and affordably scale these fuels and achieve full decarbonisation by mid-century – within the lifetime of just a single vessel. Readers can access and download the report here.


15. Kongsberg development

Kongsberg Discovery is celebrating the 30th anniversary of its inertial navigation product portfolio with the release of Seapath® 385, a system combining new hardware and advanced navigation algorithms to unlock optimal precision for hydrographic surveying.
 
Seapath 385 combines state-of-the-art inertial technology and processing algorithms with multi-frequency GPS, GLONASS, Galileo, Beidou, QZSS and geostationary satellite signals. The system integrates raw inertial sensor data either from Kongsberg Discovery’s high performance MGC® (Motion Gyro Compass) or MRU (Motion Reference Unit), together with GNSS data, and RTK, PPP or DGNSS corrections.

The result is an integrated, robust and highly accurate solution that, says Vidar Bjørkedal, VP Sales at Kongsberg Discovery, “delivers unique performance, every time.”

“Since 1994, Seapath has set the benchmark for excellence in hydrographic surveys across the entire ocean,” Bjørkedal comments. “The 385 pushes the bar higher than ever before.

“By uniting data from an array of critical sources, integrating our market leading inertial navigation technology, and then enhancing both the hardware – boosting processing power and upgrading interfaces – and refining our algorithms we’ve taken a new evolutionary step in this demanding technology niche.”

For surveyors demanding the ultimate in precision, the benefits of the 385 range are compelling. Thanks to the system’s inertial sensor and updated navigation algorithms, dead reckoning performance is second to none. In addition, another layer of robustness is added by the innovative utilisation of GNSS antennas for both positioning and heading determination. 

A new post processing format contains all necessary data and system configuration in a single file, with the possibility of achieving centimetre position accuracy through downloaded satellite orbit and clock data, or data logged from base stations.

The modular system, with a processing unit running all critical computations independent from the user interface on the HMI Unit, offers easy installation and continuous, reliable operation. Measurements are highly precise, with a data rate of up to 200 Hz at multiple monitoring points, easily accommodating sensors or systems relying on motion or position data across the vessel.

“For hydrographic surveying where high-precision heading, position, velocity, roll, pitch, heave and timing are critical, Seapath 385 stands alone,” Bjørkedal adds. “By building on the legacy of operational and technological expertise we’ve acquired over the last 30 years we can position ourselves to continually meet customer demand and solve challenges with this kind of breakthrough solution.

“It’s an exciting step forward, giving the market the means to facilitate next level seabed mapping for the most challenging applications and environments. It’ll be fascinating to see what results it achieves.”


Notices & Miscellany

LR report

LR’s new report on Fit for 55: Managing compliance and optimising operations under the EU’s new regime delves into the intricacies of the EU’s new regulations affecting shipping from 2024 onwards. It provides a comprehensive overview of the new EU Emissions Trading System and Fuel EU Maritime regulations, outlining the key compliance requirements and potential penalties.

It also explores the broader implications of the “Fit for 55 ” package, encompassing the Alternative Fuels Infrastructure Regulation (AFIR), Revised Renewable Energy Directives (RED III) and Carbon Border Adjustment Mechanism (CBAM) .

The report offers actionable insights and recommendations for minimising exposure to carbon prices and penalties, highlighting the importance of effective fleet management and utilisation, strategic routing, charter agreements and efficient emission trading strategies.

To download this report for shipping click here.

BTA AGM and dinner

The British Tugowners Association says the Annual General Meeting, Conference and Dinner 2024 will take place at the Wotton House, Surrey on 1 May, with an overarching theme of People & Skills.

Further requests for information should be directed to the BTA secretariat Robert Merrylees: rmerrylees@ukchamberofshipping.com.

Cycling challenge
Interunity Group, a leading maritime services provider, has launched the first iteration of IG Cycling – THERMO2024, a new sporting challenge held across the Southern Pindos mountain range, Greece on June 1. The ride will raise important and much needed funds for its primary charity Elpida, as well as the Common Seas charity, ahead of  Posidonia 2024.

More than 100 riders will take part in the challenging touring race over courses of 80km or 160km, reaching summits of around 1400 meters, and with over 4,000 metres of climbing on the full route. The race will start and end in the village of Thermo, three hours from Athens.

Environmental compliance

ICS has given advanced notice of the publication of Shipping and the Environment: A Guide to Environmental Compliance, Fifth Edition. We expect to release the print book in mid-April and the e-book in late-March through e-book partners.

Order your print copies today

Distress signal

Leading marine safety equipment manufacturer, Daniamant, announces the launch of ODEO SOS – a cutting-edge electronic visual distress signal (eVDS), bolstering its lineup of maritime safety solutions.

The ODEO SOS redefines safety at sea with its advanced features and unparalleled reliability, providing sailors, maritime professionals and outdoor enthusiasts with a crucial lifeline in emergencies.
The fourth eVDS in Daniamant’s range, the ODEO SOS is designed to meet US Coast Guard requirements, meaning it can be used instead of pyrotechnic flares in some countries, when used with the distress flag (provided). The ODEO SOS is a high intensity strobe light providing an internationally recognised SOS morse signal. It is equipped with state-of-the-art technology and built to the highest standards of quality, reliability and durability.

For more information visit https://www.daniamant.com/products/odeo-sos.
 
Brookes Bell
Brookes Bell, the leading multi-disciplinary technical and scientific consultancy for the marine and energy sectors, has expanded its Naval Architect team in Glasgow with the appointment of Dr Kaan Ilter, a renowned specialist in vessel design, hydrodynamics and structures.

Zero Point Four
After years of extensive research, The Maritime Accelerator for Resilience (MAR) has released the findings of its landmark study in a book entitled ZERO POINT FOUR, spearheaded by Rear Admiral James Watson   and  a  panel of maritime, security, ocean and supply chain experts. This critical analysis delves into the challenges and strategic imperatives facing US maritime security, emphasizing its indispensable role in global commerce, national defence, and international peacekeeping and offering near, medium and long term leadership opportunities to mitigate America’s vulnerabilities.

Purchase your copy today!

Please notify the Editor of your appointments, promotions, new office openings and other important happenings: contactus@themaritimeadvocate.com


And finally,

(With thanks to Paul Dixon)

Proverbs of the 3rd Millenium

* Home is where you hang your @.

* The email of the species is more deadly than the mail.

* A journey of a thousand sites begins with a single click.

* You can’t teach a new mouse old clicks.

* Great groups from little icons grow.

* Speak softly and carry a cellular phone.

* In some places, C:\ is the root of all directories.

* Oh, what a tangled Website we weave when first we practice.

* Pentium wise, pen and paper foolish.

* The modem is the message.

* Too many clicks spoil the browse.

* The geek shall inherit the earth.

* Don’t byte off more than you can view.

* Fax is stranger than fiction.

* What boots up must come down.

* Windows will never cease.

* Virtual reality is its own reward.

* Modulation in all things.

* There’s no place like your homepage.

* Give a man a fish and you feed him for a day, teach him to use the Net and he won’t bother you for weeks


Thanks for Reading the Maritime Advocate online

Maritime Advocate Online is a fortnightly digest of news and views on the maritime industries, with particular reference to legal issues and dispute resolution. It is published to over 20,000 individual subscribers each week and republished within firms and organisations all over the maritime world. It is the largest publication of its kind. We estimate it goes to around 60,000 readers in over 120 countries.

**

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The Maritime Advocate–Issue 852 – All About Shipping – D-Empire Logistics March 23, 2024 - 9:25 AM

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