Business

China publishes new measures for ship pollution response regime

MSA no longer publishes recommended SPRO Agreement wording and parties are now free to negotiate all terms, updates No

Published

4 years ago

February 24, 2020

Sachin Shanbhag, Claims Director of marine insurer, North on Friday (21 February) published an article on new regulations of the People’s Republic of China on the prevention and control of marine pollution from ships:

We refer Members to previous Circulars resting with Circular No 2015/013 of June 2015 on the Regulations of the People’s Republic of China (PRC) on the Prevention and Control of Marine Pollution from Ships and the requirement that Owners/Operators of (a) any ship carrying polluting and hazardous cargoes in bulk or (b) any other ship above 10,000 GT enter into a pollution clean-up contract with a Ship Pollution Response Organisation (SPRO) before the ship enters a PRC port or engages in loading, discharge or ship-to-ship transfers outside of the port but within 20 nautical miles off shore.

Members are informed that the PRC Maritime Safety Agency (MSA) recently published new Measures of Administration on Agreement for Ship Pollution Response Regime, which will become effective on 1 March 2020. In conjunction with the new Measures, the MSA has also published a Directory of Hazardous Bulk Liquid Cargo Apt to Cause Pollution (the “Directory”) for which oil booms need to be deployed during cargo operations or an Agreement with a SPRO needs to be concluded. The International Group (IG) has checked this effective date with the China MSA and it has been confirmed that this date will remain as 1 March 2020 and will not be postponed due to the COVID-19 outbreak.

As can be seen from the attached updated SPRO table, there is no material change to the SPRO requirements as a result, however Members will note that from 1 March 2020, no SPRO Agreements will be needed for any of the following:

Any ship under 10,000 GT either in ballast or carrying a liquid cargo in bulk not listed in the Directory; or
Any ship driven by clean fuels and carrying a liquid cargo not in bulk.

Oil booming is only required, inter alia, for ships loading, discharging, transferring over 300 MT of cargoes listed in the Directory.

Pursuant to the new Measures, the MSA no longer publishes its own recommended SPRO Agreement wording and the parties are free to negotiate all terms. A new Committee has been established under the auspices of the China Diving and Salvage Association (CDSA) which is due to take responsibility for training and assessing the capabilities of SPROs, establishing a central database for information as to SPRO capabilities and negotiating contract terms. However, this Committee is in its infancy such that for the time-being the position remains unchanged from that advised in the previous Circular (Circular No 2015/013 of June 2015) and Owners are advised to check with local agents, MSAs and the Club for the purposes of identifying SPROs in individual Chinese ports.

Members should also note the following:

Where the port which the ship is entering, leaving or operating from does not have a SPRO with the required level of response capability, the Owner is not required to enter into an Agreement with a SPRO;
Owners are required to report to the MSA any SPRO that does not fulfil its emergency standby obligations, and
Owners are required to continue to report to the local MSA any cases of ship sourced pollution in the waters of the PRC.

The IG has reviewed the existing IG recommended SPRO Agreement wording in light of these developments and, at present, it is recommended that Owners continue to sign SPRO Agreements on the attached IG recommended wording. Members will be informed if there are any changes to the Agreement wording, including in light of any future negotiations with the CDSA Committee. It is recommended that Owners entering into new SPRO arrangements continue to ensure that the SPRO also provides an accompanying response tariff (which can be checked with the Club).

The IG will continue to monitor developments, particularly the work of the CDSA and report to Members. In the interim, any Member requested to agree to a variation of the attached recommended contract is advised to check with the Club to ensure that such variations do not cause the contract to fall outside the scope of the IG Guidelines.

If Members are in any doubt about the contract and SPRO tariff, then it is recommended that they contact the Club before contracting with any SPRO.

All Clubs in the International Group of P&I Clubs have issued similar Circulars.

Source: North
Photo credit: sergio souza on Unsplash
Published: 24 February, 2020

Business

Singapore: Maritime Census 2023 survey deadline extended to 23 October

‘MPA is conducting an annual survey to collect timely statistics on the maritime industry’s activities, technology, sustainability and manpower developments,’ says the port authority.

Published

5 hours ago

September 28, 2023

Admin

SG bunker tanker sailing Photo by Manifold Times

The Maritime and Port Authority of Singapore (MPA) on Wednesday (27 September) said the Maritime Census 2023 survey deadline has been extended to 23 October.

“MPA is conducting an annual survey to collect timely statistics on the maritime industry’s activities, technology, sustainability and manpower developments,” it said in a social media post.

Maritime firms selected for the survey will be notified by email or post to complete the survey online via go.gov.sg/mpasurvey .

“Your participation will help us shape policies and programmes that will drive #MaritimeSG forward,” it added.

Manifold Times previously reported MPA announcing it was conducting the census to collect timely statistics.

Photo credit: Maritime and Port Authority of Singapore
Published: 28 September, 2023

Alternative Fuels

GCMD, BCG survey highlights three maritime decarbonisation archetypes

Survey identified three decarbonisation archetypes within the shipping industry, differentiated in their outlook, investment appetite and the challenges faced.

Published

5 hours ago

September 28, 2023

Admin

RESIZED Venti Views on Unsplash ship vessel

The Global Centre for Maritime Decarbonisation (GCMD) and Boston Consulting Group (BCG) conducted an industry survey to take stock of shipowners and operators’ progress in establishing six elements needed for the shipping industry to reach net zero, according to BCG on Wednesday (27 September).

The survey saw strong participation from 128 shipowners and operators across vessel types, fleet sizes and geographies, which collectively own or operate 14,000 merchant vessels, and account for USD500 billion in revenue.

The duo found high decarbonisation ambitions: Most respondents viewed net zero as a strategic priority, and 77% had already set concrete decarbonisation targets. The industry has also mobilised resources to decarbonise: respondents are investing 2% of their revenues into green initiatives, and 87% have personnel working toward green objectives.

The path to net zero for shipowners and operators requires six elements:

A robust strategy and roadmap
Four specific decarbonisation levers to reduce emissions: operational efficiency, technological efficiency, fuel transition, and shipboard carbon capture
Enablers such as dedicated sustainability teams, strategic investments in green initiatives, internal carbon prices, and digitalization

While the industry has made some progress in adopting mature and cost-effective efficiency levers, adoption of complex or nascent levers remains low. Drop-in green fuels are constrained by costs and supply-side gaps, and optimism for future cleaner fuels is yet to translate into firm commitment.

The industry is now at a pivotal point, with many shipowners and operators ramping up their decarbonisation efforts. Three-quarters of respondents plan to increase investments in green initiatives. Stakeholders can build on this momentum with a variety of supportive actions. But to be effective, they need to tailor their interventions to address the specific challenges that shipowners and operators face at each stage of decarbonisation.

Three Decarbonisation Archetypes

GCMD and BCG saw three archetypes, differentiated in their outlook, investment appetite, and the challenges faced.

Frontrunners have the greatest ambitions and are willing to invest heavily. They are pushing boundaries, adopting even nascent decarbonisation levers, such as wind propulsion and air lubrication. A majority plan to pilot shipboard carbon capture solutions by 2025. Frontrunners are also planning to adopt methanol and ammonia as early as 2026 and 2029 respectively, and the availability of fuels and bunkering infrastructure will be critical to enabling adoption.

Followers believe in decarbonising their fleets, but have tighter investment thresholds and a near-term outlook. They have kept pace with Frontrunners in adopting mature and cost-effective efficiency levers, such as main engine improvements and slow steaming, but are behind in the adoption of nascent levers, such as wind propulsion and air lubrication.

Conservatives are still early in their decarbonisation journey, likely due to a lack of awareness and familiarity with the various decarbonisation levers, and the capabilities to assess and deploy them. They are best supported by measures that increase their familiarity with the levers and help contextualise them to their specific fleets and operational requirements.

The research highlights five key actions for stakeholders:

Conduct technical pilots and facilitate data sharing, especially for nascent levers

Create innovative financing mechanisms to de-risk adoption of less mature levers
Raise awareness, contextualize levers, and build capabilities, especially among Conservatives
Start to build out future fuels infrastructure at ports
Develop mechanisms to equalize and share the costs of levers across the ecosystem
Maritime decarbonization is a complex, critical endeavor. The successful implementation of these five key actions demands a whole-of-value-chain approach. By working together, stakeholders can transform the maritime sector into a beacon of environmental stewardship, and set a course for a greener future where decarbonization and commercial success go hand in hand.

Note: The GCMD-BCG Global Maritime Decarbonisation Survey report can be downloaded here.

Photo credit: Venti Views on Unsplash
Published: 28 September, 2023

Ammonia

Itochu enters MoU with firms for study of ammonia bunkering safety for container carrier

Through this cooperation, several companies and organisations will come together to discuss and study safety issues during ammonia bunkering of a container carrier that uses ammonia as a bunker fuel.

Published

5 hours ago

September 28, 2023

Admin

Itochu enters MoU with firms for study of ammonia bunkering safety for container carrier

Tokyo-based Itochu Corporation on Tuesday (22 September) said it has executed a Memorandum of Understanding for a joint study of ammonia bunkering safety for an ammonia-fuelled container carrier among eight companies and organisations with the aim of implementing the use of ammonia as a bunker fuel in shipping industry.

Through this cooperation, several companies and organisations will come together to discuss and study safety issues during ammonia bunkering of a container carrier that uses ammonia as a main fuel.

“This MOU for Ammonia Bunkering Safety for Container Carrier is an important milestone for social implementation of the use of ammonia as marine fuel on a global scale, and also a necessary step toward the realisation of the Integrated Project consisting of the construction of a global ammonia supply chain and the development of ammonia-fuelled ships by ITOCHU and its partner companies,” the firm said in a statement.

A joint study that will be carried out under the MOU is a successive phase of the existing Joint Study Framework launched in 2021 by 34 companies and organizations including ITOCHU and Joint Study Framework for Ammonia Bunkering Safety launched in 2022 by 16 companies and organizations including ITOCHU, and focused on discussion and study of safety issues of ammonia bunkering to ammonia-fueled container carriers among experts from port authorities, container liner operators, bunkering related players and shipping company.

A key subject of the joint study under this MOU for Ammonia Bunkering Safety for Container Carrier is the safety assessment for simultaneous operations of container cargo operations and ammonia bunkering in a container terminal, which is generally required for container carriers to achieve operational efficiencies.

ITOCHU said it is promoting a development of ammonia-fueled container carriers with potential partners following the development of ammonia-fuelled bulk carrier, which obtained Approval in Principle in 2022. ITOCHU will accelerate the development of an ammonia-fueled container carrier based on findings of this MOU for Ammonia Bunkering Safety for Container Carrier and plans to bring it to the international shipping market in late 2020s.

ITOCHU will accelerate the development of sustainable energy systems through these initiatives and ensure its contributions to the SDGs and improvement of related efforts, one of the basic policies laid out in its new medium-term management plan, as the company pursues a low-carbon society.

The eight companies and organisations are; Algeciras Bay Port Authority, Spain; Port of Rotterdam, Netherlands; CMA CGM, France; A.P.Moller Maersk A/S, Denmark; Mitsui O.S.K. Lines, Japan; Pavilion Energy Singapore, Singapore; TotalEnergies Marine Fuels, Singapore; and ITOCHU.