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SMW 2024: Digital bunkering the way forward for shipping sector, agree panellists

MPA, ZeroNorth Bunker, Ocean Network Express, Working Group on Electronic Documentation for Bunkering, and SSA spokesmen offer respective thoughts.

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SMW 2024: Digital bunkering the way forward for shipping sector, agree panellists

Digital bunkering brings positive contributions to the shipping industry, agreed panellists at the recent Accelerating Digitalisation & Decarbonisation Conference held in Singapore on Tuesday (16 April).

The group, representing various stakeholders of the marine fuels supply chain, shared their perspectives during the Digital Transformation session of the event held as part of Singapore Maritime Week (SMW) 2024.

Maritime and Port Authority of Singapore (MPA)

“It is quite clear to us digital transformation is going to be part of maritime sector,” said Thomas Ting, Director (Technology & Innovation) / Chief Digital Officer, MPA who added the International Maritime Organization (IMO) in July 2023 announced acceptance of electronic bunker delivery notes for both soft and hard copies.”

“We conceptualised this digital bunkering initiative since 2020 and have been talking to bunker buyers, sellers, traders, and other parties to understand their pain points and while doing so discovered obvious benefits technology brings to the marine fuels industry.”

Mr Ting, who was also moderator of the session, shared MPA launched digital bunkering in November 2023.

“We did it because we believe the industry has and could come up with the solutions and for this transformation to take place, we have to start with available technology to date,” he explained.

“We have already announced four whitelisted solutions for electronic bunker delivery notes and there are other vendors coming up.”

ZeroNorth Bunker

Kenneth Juhls, Managing Director, ZeroNorth Bunker said the technology company, amongst four whitelisted firms providing e-BDN solutions, had the pleasure of engaging with Singapore-based physical bunker suppliers and barge operators in the past four to five months.

“We performed a lot of engagement activities to explain the benefits of having a e-BDN solution to partners including chief engineers and bunker surveyors. I really see the e-BDN solution as an accelerant to other digital solutions as there are so many benefits for all parties out there,” he said.

Juhls pointed out the international maritime sector has been closely following the e-BDN development in Singapore.

“We see a lot of interest and everybody is asking us what is it all about and how will that impact us as bunker buyers. We also see other bunker suppliers in other locations keen to learn more about e-BDN,” he noted.

“Moving forward, we need to adapt the e-BDN solution and engage port authorities around the world. There is a lot of work for solution providers with a lot of investments needed; it’s not going to be easy but definitely doable. The shipping industry will eventually lean into this due to all the benefits.”

Ocean Network Express (ONE)

Richard Ho, Deputy General Manager (Fuel Department), ONE agreed on the benefits of e-BDN and proceeded to provide examples.

“Bunker supply operations are one of most complex delivery processes in shipping due to the huge amount of money and paperwork guided by several regulatory requirements including documentation for surveyors, suppliers and the local port authority,” he said.

“All these jobs create a lot of paperwork which doesn’t stop at end of delivery and continues even after payment of bunker invoices.

“We buy bunker fuel from various ports in the world where some of the traditional paper based BDNs look very different. It takes a team of six to seven people to cross-check these BDNs two to three times to verify various parameters, and the whole process takes several hours to complete.”

According to Mr Ho, e-BDNs paired with mass flowmeters (MFMs) simplify the bunkering process and create a sense of trust between counterparties.

“There is no cost to us as a shipowner; in fact, there are cost savings. With e-BDNs we now have verified and validated information from a single source of truth – which is the MFM – to minimise potential fraud and save time from excessive checks.

“Digital bunkering and e-BDN, which are well aligned with the ONE Digitalisation strategy, is going to have a huge impact on how we do things.”

Working Group on Electronic Documentation for Bunkering

Dennis Ho, Co-Convenor, Working Group on Electronic Documentation for Bunkering, pointed out the rollout of e-BDNs will help push the introduction of a digital bunkering supply chain documentation standard in Singapore – which is currently under public consultation.

The standard specifies requirements for the main types of digital documents utilised and exchanged within bunkering supply chains, aligning with established business practices and bunkering standards.

“The digital bunkering supply chain documentation standard is not just about e-BDNs,” he said, while adding, “it also includes 15 other documents involved in the bunkering process.”

“The working group will continue to do regular reviews and updates when it comes.

“This is just the start of this Standard. As the industry begins to adopt the Standard, we will continue to review the Standard and make updates.”

Mr Ho, who is also the Managing Director of bunker trading firm ElbOil Singapore Pte Ltd, noted commercial banks such as UOB, DBS, together with the Association of Banks in Singapore, have been involved in the creation of the documentation standard.

“We are planning a series of public engagement for the digital bunkering supply chain documentation standard to clear any doubts,” he stated.

“Our hope is eventually, other ports will adopt this standard. Adding on, we recognise the industry players will take time to adopt, hence, we have made the Standard to be backwards compatible as a requirement.”

Singapore Shipping Association

Apostolos Boutos, Marine Fuels Committee Chairman, Singapore Shipping Association stated digital bunkering brings many benefits to both bunker suppliers and ship owners within the maritime ecosystem but highlighted work still needs to be done in certain key areas.

“A lot of shipowners and buyers are still lagging behind in digital bunkering trials and we have to convince them digital bunkering is beneficial,” he pointed out.

“Also, there is the question of who pays for the cost. The responsibility of the bunker barge operator, ship owner, or bunker suppliers as the technical provider for the e-BDN solution is progressively addressed.

“Network connectivity within the port plays a pivotal role in digital bunkering. Gaps in network connectivity, where disruption occurs in some areas of the anchorage where the mobile network is not so strong and of the receiving vessel’s structure interfering with the network connection of the bunker tanker are areas currently being addressed. Though it must be mentioned all e-BDN solution providers offer an offline option too.

“Data security and ownership are also topics being discussed at SSA. Further, there are several e-BDN solution providers in Singapore. Regarding crew training, what happens when a bunkering firm is using solution ‘A’ but another vessel using solution ‘B’ for e-BDN? A current suggestion is for workflow between all e-BDN solution providers to be relatively similar and forms to be standardised.”

Editor’s note: For more information SSA has prepared a detailed FAQ on Digital Bunkering in Singapore which covers various aspects related to the eBDN implementation. The full FAQ document can be found at the SSA website (https://www.ssa.org.sg/wp-content/uploads/2024/03/vAprSMW-FAQ-on-Digital-Bunkering-Final.pdf)

Related: IBIA: MEPC 80 confirms acceptance for electronic bunker delivery notes
Related: Singapore set to become first port in the world to debut electronic bunker delivery notes
Related: ZeroNorth enables Golden Island to become Singapore’s first 100% digital bunker supplier
Related: Singapore: EnterpriseSG issues call for public comments on digital bunkering supply chain documentation
Related: Former PA to Hin Leong Trading Founder refutes OK Lim’s claim on his role in firm

 

Photo credit: Manifold Times
Published: 30 April 2024

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Alternative Fuels

DNV: Use of ammonia as a bunker fuel among highlights in IMO MSC 109

Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted and interim guidelines for the general use of ammonia as fuel were approved during session.

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Classification society DNV on Saturday (7 December) shared a statutory news article that provides a summary of the 109th session of the International Maritime Organization’s (IMO) Maritime Safety Committee (MSC 109) including adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel and approved draft interim guidelines for ammonia as a marine fuel.

The following is an excerpt from the news update relating to bunker fuels:

The 109th session of the IMO’s Maritime Safety Committee (MSC 109) was held from 2 to 6 December 2024. Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted, and interim guidelines for the general use of ammonia as fuel were approved. The IGF Code was amended to improve the safety of ships using natural gas as fuel. MSC 109 further approved draft SOLAS amendments to enhance the safety of pilot transfer arrangements and progress was made on the new safety code for Maritime Autonomous Surface Ships.

Meeting highlights

  • Adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel
  • Adopted amendments to the IGF Code for ships using natural gas as fuel
  • Approved draft interim guidelines for ammonia as fuel
  • Approved draft amendments to SOLAS Regulation V/23 and the related performance standards to improve the safety of pilot transfer arrangements
  • Advanced the non-mandatory Code on Maritime Autono- mous Surface Ships (MASS)

Amendments to mandatory instruments 

Ammonia cargo as fuel (IGC Code) MSC 109 adopted amendments to Paragraph 16.9.2 of the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) to enable the use of ammonia as fuel on ammonia carriers.

An MSC circular to encourage the voluntary early implementation of the amendments to Chapter 16 was approved. 

The amendments will enter into force on 1 July 2026.

Safety of ships using natural gas as fuel (IGF Code)

MSC 109 adopted amendments to the International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code), based on experience with the code since its entry into force in 2017.

The amendments include:

  • Clarified application provisions
  • Alignment with the IGC Code on suction wells for fuel tanks extending below the lowermost boundary of the tank
  • Alignment with the IGC Code on discharge from pressure relief valves to discharge to tanks under certain conditions
  • Clarified requirements to fire insulation for deck structures in relation to fuel tanks on open deck
  • Clarified requirements for hazardous ducts through non-hazardous spaces and vice versa
  • Updated requirements for the hazardous zone radius for fuel tank vent mast outlets, increasing to 6 metres for zone 1 and 4 metres for zone 2

The amendments will enter into force on 1 January 2028.

Goal-based new ship construction standards

Goal-based standards (GBS) for the new construction of bulk carriers and oil tankers are, conceptually, the IMO’s rules for class rules. Under the GBS, IMO auditors use guidelines to verify the construction rules for bulk carriers and oil tankers of class societies acting as Recognized Organizations (Resolution MSC.454(100)).

Initial GBS verification of Biro Klasifikasi Indonesia (BKI) BKI has requested GBS verification of their ship construction rules for bulk carries and oil tankers. MSC 109 agreed that the BKI rules comply with the GBS, provided non-conformities and observations are rectified and verified in a new audit.

North Atlantic wave data (IACS Recommendation No. 34, Revision 2) MSC 109 noted that IACS is currently undertaking a review of its Common Structural Rules (CSR) for bulk carriers and oil

tankers to reflect advances in data, materials, technologies and calculation methodologies. The CSR are implemented in the individual class rules of the IACS members, which are subject to compliance with the GBS.

MSC 109 further noted that IACS has now issued a revision of the North Atlantic wave data to ensure more scientific data as a basis for the rule formulas in the CSR. The new scatter diagram in Revision 2 of IACS Recommendation No. 34 shows the probability of occurrence of different sea states and is based on wave data from advanced hindcast wave models combined with ships’ AIS data for all SOLAS vessels in the period from 2013 to 2020.

MSC 109 agreed that an observation from the initial CSR audit in 2015, that the scatter diagram in Revision 1 of IACS Recommendation No. 34 was based on past statistics, was now considered addressed.

MSC 109 further invited IACS to provide more information about the assumptions, modelling and technical background for Revision 2 of IACS Recommendation No. 34, and agreed that the GBS audit of the revision to follow should be carried out in conjunction with the consequential rule changes in the CSR.

New technologies and alternative fuels 

Identification of gaps in current IMO instruments MSC 109 continued its consideration of potential alternative fuels and new technologies to support the reduction of GHG emissions from ships from a safety perspective. The intention is to identify safety obstacles, barriers and gaps in the current IMO instruments that may impede the use of the various alter- native fuels and new technologies.

MSC 109 agreed to add “swappable traction lithium-ion battery containers” to the list of alternative fuels and new technologies. The list already includes fuels and technologies such as ammonia, hydrogen, fuel cell power installations, nuclear power, solar power, wind power, lithium-ion batteries and supercapacitor energy storage technology.

Recommendations to address each of the identified barriers and gaps in the IMO regulatory framework will be considered in a Correspondence Group until MSC 110 (June 2025). Application of the IGF Code

MSC 109 agreed on draft amendments to SOLAS to clarify that the IGF Code applies to ships using gaseous fuels, whether they are low-flashpoint or not. The term “gaseous fuels” was added to the definitions in SOLAS Regulation II-1/2 and to the application provisions of SOLAS Regulations II-1/56 and 57.

The draft amendments are expected to enter into force on 1 January 2027, subject to adoption by MSC 110 (June 2025).

Carriage of cargoes and containers

Ammonia as fuel

MSC 109 approved draft interim guidelines for the safety of ships using ammonia as fuel.

Ships carrying liquefied gases in bulk (IGC Code)

MSC approved draft amendments to the IGC Code to incorporate the large number of Unified Interpretations developed since the latest major review of the code, which entered into force in 2016. The primary objective of the draft amendments is to remove ambiguity and promote the consistent implementation of the IGC Code requirements.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 9 December, 2024

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Technology

Singapore: MPA and MISC to integrate digital technologies into marine operations

MoU between the two parties include exchanging data and technology trials between MISC and MPA for tankers through the Just-in-time Planning and Coordination platform under digitalPort@SGTM.

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Singapore: MPA and MISC to integrate digital technologies into marine operations

The Maritime and Port Authority of Singapore (MPA) on Thursday (5 December) said it has signed a memorandum of understanding (MoU) with MISC to strengthen collaboration in innovation, research and development (R&D) and test-bedding activities, to advance digital transformation in the maritime industry. 

The MoU was signed by Mr David Foo, Assistant Chief Executive (Operations and Operations Technology), MPA, and Mr Mohd Denny Mohd Isa, Vice President, MISC Marine, and witnessed by Mr Teo Eng Dih, Chief Executive, MPA, and Mr Zahid Osman, President and Group Chief Executive Officer, MISC Berhad.

As part of the three-year arrangement, both parties will focus on integrating sustainable digital technologies into marine operations, enhancing processes through data-sharing initiatives and cybersecurity innovations. 

These include exchanging data and technology trials between MISC and MPA for tankers through the Just-in-time Planning and Coordination platform under digitalPort@SGTM, data sharing and cloud services to support the use of e-clearances and e-certificates in the Port of Singapore and onboard Singapore-registered ships and conducting cyber solution trials with the Maritime Cyber Assurance and Operations Centre.

They will also collaborate with Singapore’s vibrant research ecosystem to explore the use of artificial intelligence, digital twins, and semi-autonomous vessel operations to improve shipping efficiency and safety. 

Additionally, the partnership will prioritise talent development, identify emerging skillsets for onshore ship management, upskill seafarers to operate alternative-fuelled vessels, and ensure a future-ready workforce for the maritime industry through training under the Maritime Energy Training Facility. 

Mr Teo Eng Dih, Chief Executive of MPA, said: “MISC, with its expertise in ship management and sustainable shipping practices, is a good partner for MPA to develop solutions to help digitalise and optimise shipping operations. We look forward to deepening our partnership with MISC Marine to transform the work for seafarers and professionals for more resilient and efficient shipping services.”

Mr Zahid Osman, President and Group Chief Executive Officer of MISC Berhad, said: “MISC is proud to partner with the Maritime and Port Authority of Singapore to accelerate the maritime industry’s transition towards a sustainable future. This MoU underscores our shared commitment to harnessing digital innovation, enhancing ship management efficiency, and preparing the workforce for advancements in alternative fuels and cutting-edge technologies.”

 

Photo credit: Maritime and Port Authority of Singapore
Published: 6 December, 2024

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Bunker Fuel

Cost-efficient strategies can significantly cut price of FuelEU Maritime compliance, says DNV

Adoption of the most cost-effective strategy can result in savings of up to 16% or USD 21 million over a vessel’s lifetime compared to using Bio-MGO as a compliance option, according to new DNV white paper.

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Classification society DNV on Thursday (5 December) said compliance with FuelEU Maritime requirements will be expensive but applying certain strategies can significantly reduce the cost.

This was one of the main highlights of its latest white paper outlining FuelEU Maritime requirements and compliance strategies for shipowners. 

Effective from 1 January 2025, the rules mandate stringent greenhouse gas (GHG) emission intensity requirements for ships over 5,000 gross tonnage (GT) transporting cargo or passengers for commercial purposes in the EU/ EEA. GHG emissions are calculated from a well-to-wake perspective. In addition to emissions from onboard combustion, this calculation also includes emissions related to the extraction, cultivation, production, and transport of the fuel. 

The regulation includes provisions for crediting ships using wind-assisted propulsion.

The DNV paper provides shipowners with insights to reduce compliance expenses and avoid major penalties. It contains a comprehensive overview of the regulation, including a case study which highlights a range of different compliance strategies. 

This shows how the adoption of the most cost-effective strategy can result in savings of up to 16% or USD 21 million over a vessel’s lifetime compared to using Bio-MGO as a compliance option.

Knut Ørbeck-Nilssen, DNV Maritime CEO, said: “It is essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation to make informed business decisions. Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance at reduced costs.

“Just paying the penalty could prove a more costly option. All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements. Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain.”

The report provides recommendations for shipowners including securing long-term fuel agreements and implementing energy efficiency measures. It also recommends considering pooling as a mechanism for sharing and optimizing costs. This is underpinned by a call to begin preparations immediately. The report also highlights how, by leveraging digital tools, maritime stakeholders can access verified emissions data, a key factor in compliance and maintaining both operational and commercial integrity throughout the value chain.

A key point emphasized in the report is that the International Maritime Organization is also set to introduce similar regulations in the near future, with a net-zero framework expected to be adopted in the fall of 2025 and come into force around mid-2027.

It is absolutely essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation so that they are equipped to make informed business decisions. Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance and significantly reduce costs.

“Doing nothing and paying the penalty could prove to be a costly option. All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements. Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain.”

The report provides recommendations for shipowners including securing long-term fuel agreements and implementing energy efficiency measures. It also recommends considering pooling as a mechanism for sharing and optimizing costs. This is underpinned by a call to begin preparations immediately. The report also highlights how, by leveraging digital tools, maritime stakeholders can access verified emissions data, a key factor in compliance and maintaining both operational and commercial integrity throughout the value chain.

A key point emphasized in the report is that the International Maritime Organization is also set to introduce similar regulations in the near future, with a net-zero framework expected to be adopted in the second half of 2025 and come into force around mid-2027.

Note: The full whitepaper titled ‘FuelEU Maritime: Requirements, compliance strategies, and commercial impacts’ by DNV can be downloaded here.

 

Photo credit: DNV
Published: 6 December, 2024

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