Business

IBIA: ‘Dark fleet’ STS transfers discussed at IMO

Shipping organisations pointed out at MEPC 80 that while there should be no furtive STS operations, distinctions need to be made between legitimate and illicit STS operations.

Published

2 months ago

July 17, 2023

Admin

The International Bunker Industry Association (IBIA) on Thursday (13 July) released an article on concerns raised at IMO meetings including MEPC 80 regarding the increase in ship-to-ship (STS) transfers at sea:

Multiple concerns have been raised at IMO meetings regarding an increase in ship-to-ship (STS) transfers at sea, in particular instances of ships using “dark operations” to hide their whereabouts. The subject was discussed at the IMO’s Legal Committee (LEG 110) in March, and again at the 80th session of the Marine Environment Protection Committee (MEPC 80) in July.

The risks highlighted include that such practices may be used to circumvent sanctions and high insurance costs. From an environmental perspective, if there is a spill, there will be no pollution prevention and the responsible parties may evade liability under relevant liability and compensation regimes. LEG 110 was informed that a fleet of between 300 and 600 tankers, primarily comprised of older ships with poor maintenance, unclear ownership and a severe lack of insurance, was currently operated as a ‘dark fleet’ or ‘shadow fleet’ to circumvent sanctions and high insurance costs.

A document submitted to MEPC 80, MEPC 80/16/4, raised awareness of these issues and proposed a draft Assembly resolution urging Member States and all relevant stakeholders to promote actions to prevent illicit operations of “dark shipping” in the maritime sector.

There was a long discussion on the subject at MEPC 80, during which shipping organisations pointed out that while there should be no furtive STS operations, distinctions need to be made between legitimate and illicit STS operations. As such, care should be taken about the term “going dark” and “dark fleet” as there can be legitimate operational reasons for AIS not working properly, or being switched off due to security concerns. AIS signals have been used by pirates to target tankers.

Following discussion, MEPC 80 agreed to forward the draft Assembly resolution set out MEPC 80/16/4 to the thirty-third session of the Assembly (A 33), together with the comments and views expressed, for further consideration with a view to finalisation and adoption. A 33 meets in late November 2023.

Member States or international organisations that have further comments or proposals in connection to this matter can submit documents to A 33 accordingly.

Photo credit: International Bunker Industry Association
Published: 17 July, 2023

Related Topics:Legal - Crime Legal - Sanction

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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

20 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

20 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

20 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.