Fleet Optimization and Innovation Headlines of the Week May 22, 2018

Nearly lost in the flurry of regulations and proposed regulations is the issue of “Who pays?”.  The amount of investment necessary for compliance, or anticipated regulations, is staggering.  With scrubber and BWMT running into the millions per unit (plus infrastructure, down time, etc.), these changes are a major capital investment– not to mention the investment needed for a digital overhaul to prevent cyber threats, increase efficiency, equipment automation and more.

So who is going to finance new technologies and how do we manage risk of non-performing equipment?  I have spoken with many ship financiers about this topic.  While many publicly tout their company’s commitment to sustainability, when pressed about whether they would fund equipment manufacturers who are providing such equipment, the answer is no because “We can arrest ships, we cannot arrest equipment.”  This is actually a flawed argument as, in this era of “smart” equipment, where digitalization is key, if a default situation occurs, the financier could simply have the equipment disabled.  This would secure the asset (equipment) as the owner does not want to be out of compliance so will pay the equipment manufacturer, who in turn pays the bank.

Next month’s Marine Money conference in New York demonstrates what a large issue financing regulatory change is having on industry.  With the convergence of regulatory, operational and financial factors, the money guys are paying attention.

As Jerry Maguire said, “Show me the money”!!

Carleen

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Global seaborne trade projected to surpass 12bn tonnes this year

2018-05-21 – Global seaborne trade is projected to rise to over 12bn tonnes in 2018, working out at 1.57 tonnes for every person on the planet, according to data carried in the latest weekly report from Clarkson Research. . . READ MORE

Interview: Kitack Lim, Secretary-General, IMO

2018-05-16 – As the International Maritime Organization (IMO) celebrates its 70th anniversary, Kitack Lim, Secretary-General, sits in his London office with a sense of satisfaction that in his two plus years at the helm of IMO tremendous strides have been made toward significant greenhouse gas emission reductions, punctuated by the recent MEPC meeting where the target was set for a 50% reduction in CO2 emissions by 2050. But the Secretary- General’s sense of satisfaction is tempered with the fact that his job has just begun and his plate is full. Decarbonization, Digitalization, Autonomous Ships, Ballast Water Management, Cyber Security, Piracy and Protecting the Seafarer … the list is long of agenda-topping items that the IMO must simultaneously digest in this historic and fast-changing period. . .READ MORE

ABS wins fleetwide Canadian Coast Guard contract

2018-05-17 – The Canadian Coast Guard has awarded classification society ABS a contract to provide classification and certification services for its existing fleet of 114 vessels and future vessel acquisitions.. . . READ MORE

Esben Poulsson warns IMO of the ‘unholy mess’ the sulphur cap could bring

2018-05-21 – Esben Poulsson has been reelected chairman of the International Chamber of Shipping (ICS) for another two-year term.  Poulsson used his reelection to once again warn the International Maritime Organization (IMO) that “chaos and confusion” is on the cards imminently unless a number of issues are quickly resolved pertaining to the January 1, 2020 global sulphur cap on shipping. . . READ MORE

Shipping’s sulphur cap will spur crude prices to reach $90 a barrel: Morgan Stanley

2018-05-17 – Bent crude will reach $90 a barrel by 2020 thanks to the IMO’s impending sulphur cap on shipping, a new report from Morgan Stanley maintains. . . READ MORE

Paris MoU to Focus on Air Pollution from Ships

2018-05-16 – The Paris Memorandum of Understanding on Port State Control (Paris MoU) unveiled its plans to focus attention on marine air pollution in the near future.  This development anticipates the new maximum limits for sulphur in ships fuel oil, which is due to enter into force on January 1, 2020. . . READ MORE

New Rules on Ship Emissions Herald Sea Change for Oil Market

2018-05-17 – New rules coming into force from 2020 to curb pollution produced by the world’s ships are worrying everyone from OPEC oil producers to bunker fuel sellers and shipping companies.  The regulations will slash emissions of sulfur, which is blamed for causing respiratory diseases and is a component of acid rain that damages vegetation and wildlife. . . READ MORE

Report: Biofuels the Most Affordable Zero-Emission Option for Shipping

2018-05-17 – Advanced biofuels may represent the most affordable zero-emission alternative for the shipping industry, a report prepared for Sustainable Shipping Initiative (SSI) finds.  The fact that biofuels can be used in a way that very closely mirrors current technology — i.e. through internal combustion — means that associated additional costs are kept to a minimum of the fuel price itself. . . READ MORE

Riding Shipping’s Digital Wave

2018-05-18 – A smart shipping survey conducted in January 2018 found that, while the majority of maritime industry executives believe digitalization and big data will transform the sector, only 8.7 percent  currently see it as a major part of their operations.  Unpredictability and disruption have made the past decade anything but smooth sailing for the global shipping industry. . . READ MORE

IMO establishes autonomous vessels taskforce

2018-05-18 – Discussions on how to address maritime autonomous surface ships have begun at IMO.  The Maritime Safety Committee (MSC) is debating how to proceed with a regulatory scoping exercise, which is expected to touch on an extensive range of issues, including the human element, safety, security, interactions with ports, pilotage, responses to incidents and protection of the marine environment, for different levels of autonomy. . . READ MORE

Second GMDSS Service Approved

2018-05-21 – The Iridium network has been approved to provide Global Maritime Distress Safety System (GMDSS) services, signaling an end to a decades-long satellite communications monopoly by Inmarsat.  The IMO’s Maritime Safety Committee (MSC) has agreed to recognize that the Iridium network meets all the criteria of the IMO needed to provide mobile satellite services in the GMDSS and to adopt the “Statement of Recognition” proposed by the U.S. as a Committee Resolution. . . READ MORE