Digital platform

IBIA on digital revolution: Days of physical bunker delivery notes are numbered

IMO formally confirmed the use of Bunker Delivery Notes in electronic format as an acceptable alternative to the conventional hard copy, if they conform to the regulations of MARPOL Annex VI.

Published

8 months ago

May 29, 2024

Admin

The International Bunker Industry Association on Tuesday (28 May) shared on the maritime industry shifting towards digitalisation including electronic bunker delivery notes:

On 1 January global shipping passed a milestone in the acceleration of digitalisation in the sector that may have gone unnoticed by many. Under the Convention on Facilitation of International Maritime Traffic (FAL), governments are now required to use a single digital platform, the Maritime Single Window, to share and exchange information with ships when they call at ports, effective 1 January 2024.

The intention is to streamline procedures to clear the arrival, stay and departure of ships and greatly enhance the efficiency of shipping worldwide. More than 4.6 million port calls were recorded globally in 2022.

IMO Secretary-General Arsenio Dominguez said: “Digitalisation is critical for greater efficiency in shipping. The Maritime Single Window delivers information between ships, ports and government agencies quickly, reliably and smoothly.”

Meanwhile, in development directly affecting the bunker sector, the IMO has formally confirmed the use of Bunker Delivery Notes (BDN) in electronic format as an acceptable alternative to the conventional hard copy, if they conform to the regulations of MARPOL Annex VI.

This follows the 80th session of the Marine Environment Protection Committee last July, which agreed an additional unified interpretation to regulations 18.5 and 18.6 of MARPOL Annex VI concerning BDN. It is now included in the updated consolidation circular MEPC.1/Circ.795/Rev.8.

The minimum information to be contained in the BDN remains the same in hard copy or electronic format and is specified in Appendix V of MARPOL Annex VI. An electronic BDN should be protected against any edits/modifications/revisions and a verification method used to make authentication possible. As with a paper BDN, an electronic format must be retained onboard for a period of not less than three years from the date of delivery and made readily available for inspection as required.

IMO notes in a statement: “Certain ports are looking to implement electronic BDN as part of a wider move towards digitalisation, including documentation related to bunkering operations. Ship officers should be aware of these changes such as the method to digitally transfer an electronic BDN from the bunker barge to the receiving ship and the subsequent means to securely retain that electronic record onboard for not less than the required time period.”

In a sign of the way things are going, Singapore’s Maritime & Port Authority has approved several suppliers to trial the use of electronic bunker delivery notes (eBDN).

Vitol Bunkers says, with its logistics arm V-bunkers, it is collaborating with technology company ZeroNorth to enhance the efficiency of the bunkering process in Singapore through digitalisation. V-Bunkers delivered over 7 million tonnes of bunker fuels in 2023 for its customers, which was also a record year for Singapore. Its barges delivered around 190,000 tonnes of biofuels, which is nearly 36% of total biofuels volume delivered in Singapore last year.

Rishab Bahl, Managing Director at V-Bunkers, said: “We have chosen ZeroNorth as our partner to help digitalise our delivery process with their eBDN solution. Their deep domain knowledge, a secure and strong solution, and commitment to continuous investments towards digitalisation align well with our objectives for a global roll-out.”

Kenneth Juhls, Managing Director for ZeroNorth Bunker added: “Digitalising the bunker industry is a game-changer that accelerates the green transition. Our partnership with Vitol Bunkers marks significant strides towards innovative and sustainable industry practices, and we’re excited to see how Singapore’s leadership influences this globally.”

Back in November last year ZeroNorth said it had enabled its customer Golden Island Diesel Oil Trading Pte Ltd (Golden Island) to become the first marine fuel supplier in Singapore to go 100% digital in its use of Electronic Bunker Delivery Notes (eBDN).

Commenting on the news, Tomohiro Yamano, General Manager, Marine Fuel Department at Golden Island said: “A month after the Maritime and Port Authority of Singapore (MPA) launched its digital bunkering initiative as the first port in the world to implement eBDN, we are proud to be the first company to fully switch to eBDN in the Singapore bunkering market. To achieve this, we required a solution that would facilitate a seamless workflow to enhance the productivity and efficiency of our marine fuel delivery operations.

Kenneth Juhls, Managing Director for ZeroNorth Bunker at ZeroNorth, added: “Bunker procurement has been a traditionally cumbersome process, burdened by manual documentation. We’re delighted to be helping Golden Island eliminate these manual processes to streamline documentation, drive efficiencies and boost productivity across its operations as a global eBDN solution on the market.

In a separate development in the move towards shipping industry digitalisation, major container line Pacific International Lines (PIL) says it has completed full integration with the Singapore Trade Data Exchange (SGTraDex) platform, making it the first shipping line to do so. PIL says in a statement: “This achievement, realised through a collaborative effort with KPI OceanConnect, signifies a transformative step towards global digitisation in PIL’s maritime operations.”

According to PIL, the integration, initiated early last year and concluded in December, has enabled it to leverage SGTraDex to improve the way transactions are conducted with its stakeholders, including suppliers and financial institutions. This is another key step forward in improving efficiency and transparency in maritime operations.

As part of the integration, PIL successfully executed an overseas bunkering transaction with KPI OceanConnect, demonstrating the feasibility of using SGTraDex for transactions beyond Singapore. PIL says the transaction highlighted the data highway’s potential to streamline complex processes and facilitate smoother collaborations between shipping lines and their beneficiary chain of organisations.

Since the successful overseas bunkering transaction, PIL has completed more than 40 transactions through SGTraDex. The adaptability of SGTraDex is evident in its ability to handle a diverse range of transactions, showcasing its relevance across the maritime sector.

Prior to this integration, PIL had to export and email documents to suppliers, who then manually uploaded key information onto the e-invoicing portal.

Photo credit: International Bunker Industry Association
Published: 29 May 2024

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Classification Society

LR: Risk sharing key component to viable emissions reduction

When major change is introduced on a ship, there are numerous aspects to consider by all stakeholders involved which all add risk.

Published

2 weeks ago

December 31, 2024

Admin

Shipping must be open to sharing the risks associated with emissions reduction to enable the uptake of energy savings devices and technologies (ESDs/ESTs) and digital applications, stated classification society Lloyd’s Register (LR) representatives during a presentation at Athens during early December.

The responsibility of investing in and driving the uptake of new solutions must be borne by all relevant stakeholders and not sit solely with the shipowner. This extends not only to financial exposure, but also new vessel design and data sharing.

When major change is introduced on a ship, there are numerous aspects to consider by all stakeholders involved which all add risk. Energy producers, the energy consumers, the associated supply chains, and the investors, insurers, regulators, class societies and governments – all have critical, but different and highly inter-related roles to play within the transition.

“We are in a new era of shipping that comes with a different set of rules, including shipping companies’ approach risk and risk sharing,” shared Elina Papageorgiou, Global Strategic Growth Director and VP Greece and Cyprus at LR at the Powering Progress: Innovation and Energy in Maritime event.

“Longer-term investment decisions should also be informed by the decisions of shipping’s clients’, clients – the cargo owners – and align with their emissions reduction ambitions.”

David Lloyd, Director, Energy Transition at LR, meanwhile noted: “Smart vessel operation and well-informed, data-led investment decisions can significantly support vessel compliance. What’s more, investments don’t have to be extensive to achieve results.”

“Whilst uncertainties around bigger challenges such as alternative fuels and future requirements are resolved, ESDs and digital solutions can support the commercial viability of vessels as we approach 2030 with often surprisingly low levels of investment. But these investments should be shared across all stakeholders and not be limited to owners and financiers.”

Fotis Belexis, Technical Director of Starbulk Carriers, were amongst speakers discussing risk sharing across stakeholders for complex capital investments.

He pointed out that as existing vessels age, they cannot be replaced by newbuilds as there is insufficient global shipbuilding capacity to replenish the fleet with newer tonnage.

As such, older vessels may therefore remain in the market for longer than expected and not depreciate in value as has been the case in the past. Banks and other lenders must realise this and adjust their depreciation and lending models to suit when ship owners want to finance retrofits of ESDs on their older ships.

Moving forward, the room agreed energy saving devices (ESDs), such as wind-assisted ship propulsion, digital solutions and smart operations should all be considered as the in-service fleet using traditional marine fuels seeks to shave its bunker fuel consumption to comply with IMO’s Carbon Intensity Indicator, EU ETS (Emissions Trading Scheme) and FuelEU regulations – the latter will which be in effect as of 1 January 2025.

As emissions reduction targets increase, with steeper increments than currently planned potentially being announced at the Marine Environment Protection Committee meeting in May next year, data-led insight and scenario planning will become more important to understand where efficiencies can be gained.

Photo credit: Lloyd’s Register
Published: 31 December 2024

Bunker Fuel

Singapore: ExxonMobil completes 100 digital bunker deliveries with Bunkerchain

“As the first accredited bunker fuel supplier to introduce MFMS in Singapore, we are proud to lead the way in implementing eBDNs,” the company said in a social media post.

Published

3 weeks ago

December 23, 2024

Admin

ExxonMobil on Friday (20 December) said it has successfully completed over 100 bunker deliveries using electronic bunker delivery notes (eBDNs) in collaboration with Singapore-based Bunkerchain, its first approved eBDN vendor.

“As the first accredited bunker fuel supplier to introduce MFMS in Singapore, we are proud to lead the way in implementing eBDNs,” the company said in a social media post.

Ognjen Plakalovic, Head of Asia Pacific Aviation and Marine Sales, ExxonMobil, said: “Our implementation of eBDNs is expected to help drive efficiency, enhance trust, and boost productivity. We continue to advocate for transparency and value the advantages of digitisation.”

Starting from April 1, 2025, marine fuel suppliers in Singapore must offer digital bunkering services, including electronic bunker delivery notes (eBDNs). The Maritime and Port Authority of Singapore (MPA) expects this initiative to save the industry up to 40,000 man-days annually.

According to the MPA, the move will also enable more efficient data sharing between bunker buyers and suppliers, which will help streamline administrative processes, improve accountability, and facilitate regulatory compliance.

“Integrating eBDNs with mass flow metering systems (MFMS) greatly minimizes the risk of manual errors or intentional tampering with fuel quantity figures, thereby enhancing integrity and trust in fuel transactions,” the company added.

Photo credit: Manifold Times
Published: 23 December, 2024

Alternative Fuels

NYK and Yusen Logistics introduce digital platform for GHG emission management

NYK and YL will use the platform by allocating to platform customers the GHG emission reductions achieved through use of alternative fuels in their ocean, air, and land transport services.

Published

3 weeks ago

December 23, 2024

Admin

NYK and Yusen Logistics introduce digital platform for GHG emission management

Japanese shipping firm Nippon Yusen Kabushiki Kaisha (NYK) on Thursday (19 December) introduced a digital platform with Yusen Logistics Co., Ltd. (YL) for managing greenhouse gas (GHG) emission reductions.

The platform is provided by 123Carbon B.V. (123Carbon), a Netherlands-based startup working on decarbonising the logistics sector.

NYK and YL, a comprehensive logistics group, will use the platform to support the reduction of Scope 3 GHG emissions by allocating to platform customers the GHG-emission reductions achieved through the use of alternative fuels in their ocean, air, and land transport services and issuing certificates confirming those reductions.

Process for Managing and Allocating GHG-Emission Reductions

NYK

Generates and manages GHG-emission reductions through the use of biofuels in its bulk shipping business, recognises the environmental value of these reductions, then allocates them to YL and issues a certificate of confirmation. The first allocation will be completed on the platform after verification by a third-party certification organisation.

Procures GHG-emission reductions generated by ocean shipping companies like NYK and its airline partners and provides accompanying certificates. Additionally, for land transport, YL will utilise sustainable fuels derived from waste cooking oil and other renewable materials to power its own trucks in some countries and areas, actively creating and managing GHG-emission reductions as a transport operator. A one-stop service on the platform will be officially launched by YL shortly.

Key Features of the Platform

Customers can monitor GHG-emission reduction methods and the alternative fuels used to generate the reductions.
The management and allocation of GHG-emission reductions are secured using blockchain technology to prevent data tampering.
The entire process, from calculating GHG-emission reductions to allocating, is verified by a third-party certification organisation to ensure the platform's reliability and transparency.

Photo credit: NYK
Published: 23 December, 2024