How best to halt C02 emissions rise?

The International Chamber of Shipping (ICS) has stated its clear opposition to the inclusion of shipping in the European Union's Emission Trading Scheme. It has also called on IMO member states to adopt the Energy Efficiency Design Index (EEDI) legislation at the IMO’s MEPC 62 meeting in London next month.

Following its decision to express a preference for a levy, rather than an emissions levy, if a global system of market based mechanisms to reduce carbon dioxide (CO2) is introduced, ICS has outlined in some detail its overall position on the greenhouse gas issue. In this statement ICS says that it “believes that CO2 emissions from international shipping cannot be reduced effectively and meaningfully through the incorporation of shipping into any regional financial instrument.”

The global shipowners' body continues: “Therefore ICS is strongly opposed to the application of any regional GHG scheme to international shipping. In particular, the incorporation of international shipping in the EU ETS is most definitely not suitable for the Shipping Industry and is to be strongly opposed.”

The recent BIMCO general meeting at Vancouver heard criticism of ICS's move to indicate a preference for any market based mechanisms at this stage and it was argued that the emphasis should be on technical measures with Germanischer Lloyd's Hermann Klein talking about harvesting the “low hanging fruit”.

In fact the ICS statement is mainly about technical measures, and says it is confident that international shipping will reduce its CO2 emissions, per tonne-kilometre, through technical and operational measures that will deliver improving ship efficiency, by more than 20% by 2020, compared to 2007.

ICS stresses that the future efficiency of the world’s fleet can best be ensured, in the first instance, by IMO's adoption technical and operational measures for the reduction of CO2 emissions from international shipping. The shipping industry body says that this legislation should include an EEDI for application to new specified ship types.

It accepts however that significant work is still required to determine the appropriate EEDI calculation for some ship types, including ro-ro’s and gas carriers. It also want to see a review clause so that the application of the EEDI to future new ships can be tested against efficiency expectations and for any unforeseen impact prior to each implementation of the EEDI reduction stages.

There should also be, ICS says, a requirement for every ship to have a ship specific Ship Energy Efficiency Management Plan (SEEMP).

ICS does however reiterate its view that: “The global shipping industry has a preference for a market-based mechanism that is levy/compensation fund based. ICS believes that a levy/compensation fund based system is best suited for the Shipping Industry and shipping companies because such a system will ensure that: A: a level playing field is maintained, B: serious market distortion is avoided, C. management of the system will be easier; and D. the desired transparency will be provided.”

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Mark Dickinson, general secretary of seafarers' union Nautilus sparked controversy when he called for an “EU Jones” when addressing the Parliamentary Maritime Group in the House of Commons. The main thrust of Mr Dickinson's presentation was to highlight the need for a coherent UK maritime policy. However his remarks about the need to protect European seafarers and his call for a cabotage policy were widely picked up on.

A Nautilus spokesman later stressed however that the main message to the parliamentarians was that shipping, and seafarers, deserve much more political profile and political priority than they are presently being given.

Mr Dickinson's address marked the middle of Seafarers Awareness Week (6-12 June), which aimed to highlight the importance of shipping and the indispensable work done by seafarers to keep Britain supplied with fuel, food and goods. Mr Dickinson said: “Such initiatives are desperately needed. I think there can be little dispute that there is a general ‘sea blindness’ within society – not just in the UK, but globally. As a consequence, the industry has become increasingly invisible as ports and terminals have moved away from city sites such as London’s docks and into remote and isolated areas well away from population centres."

He highlighted how the UK maritime sector contributes GBP26.5bn to the economy – a 6.6% rise from a previous study taken in 2009. Though he added that UK-flagged ships have accounted for barely half the total under the tonnage tax scheme, and around two-thirds of British-owned ships remain registered under foreign flags.

“We hear much from ministers about the UK needing to trade its way to recovery. Well, as so much of our trade goes by sea, surely shipping should be at the heart of the recovery plan? Sadly, Nautilus struggles to see evidence of a coherent strategy for the sector. I cannot help but feel that our maritime policy is perpetually reactive rather than proactive. And as a consequence our long-standing lead in maritime matters is in danger,” he said.

Mr Dickinson concluded: “It really is high time we had a national statement of vision for our maritime sector – a policy blueprint that contains commitments, aims and ambitions for our shipping industry. Without it, I fear the UK will become increasingly marginalised and become ever more disconnected in our approach to what should be accepted as one of our most vital industries.”

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Iranian tanker company NITC, which lost its hull and machinery cover from European marine insurers on May 9 this year, says it has moved swiftly to secure alternative H&M cover elsewhere. In a statement it is says the new H&M arrangements made by NITC for its modern fleet of tankers, which have an unblemished safety record, involve “highly-rated” underwriters from outside the European Community.

It says that about 80% is now underwritten by Asian insurers, with the remaining 20% placed in Iran. An NITC statement stresses that it is not on any list of UN, US or EU targeted companies since it is not engaged in - nor has it been accused of - any prohibited activities such as carrying materials linked to nuclear power generation or the import of refined petroleum products.

It says: “NITC has not been subject to any sanctions. Its vessels are chartered by international oil majors, and routinely sail to EU, Asian and other international ports.”

However, NITC says that, along with all other Iranian companies, it has has fallen foul of a blanket ban on EU-based insurers providing cover for Iranian-based entities – despite, it says, having legal opinions to the effect that its ships registered in Cyprus and Malta qualify NITC for exemption under EU Regulation 960.

The company adds that its cover with Iranian domestic companies does not include Tehran-based Moallem Insurance Co. which has already been targeted under the EU sanctions.

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Owners will be "hard pressed to find the right people to manage these complex vessels"

UK-based shipping industry recruiter Faststream warns that shipowners taking part in the LNG vessel order spree could face serious difficulties in finding experienced superintendents to run these vessels in the coming months and years, particularly in Europe.

The company says that it has already seen triple the number of vacancies for shore-based technical staff with LNG vessel experience in 2011 compared with the whole of last year. It says that many shipowners are now recruiting people with general tanker experience rather than an LNG specialism to run their ships.

The average salary for LNG shore based staff are typically at least 10 per cent higher than for tanker staff, with LNG technical superintendents earning between GBP62-65K per year.

LNG specialist Golar said recently that the worldwide LNG fleet stood at 359 vessels including floating storage and regasification units, with a further 35 on order, 16 of which have been ordered this year, including six by Golar at Samsung.

Fastream group CEO Mark Charman said: “With the capacity of the LNG market said to rise from 300 bn cu m to 380 bn cu m by 2015, I believe that shipowners are going to be hard pressed to find the right people to manage these complex vessels. This has always been a specialist market, but the latest DFDE LNG vessels are equipped with electric engines and using propulsion systems which have not been around for long, so finding experienced LNG people to run these vessels is going to be a real challenge.”

He added: “Seafarers serving on LNG vessels are amongst the most highly paid in the shipping industry and luring them ashore has always been difficult. In the UK, the impact of the immigration cap has meant that importing experienced superintendents from outside Europe is no longer an option and the problem is only going to get worse.”

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Lower rank coals are more susceptible to self-heating

The UK P&I Club has warned that bulk carriers loading coal in Indonesia still face problems and so it has published a simple How to monitor coal cargoes from Indonesia checklist While self-heating incidents involving coal cargoes have been problematic for centuries, the problems associated with carrying coal by sea are today much better understood, says Karl Lumbers, a director of Thomas Miller P&I, manager of the UK P&I Club.

He says: “When coal cargo oxidises, it spontaneously generates heat and toxic gases such as carbon monoxide. This can lead to flammable atmospheres in the hold, depletion of oxygen in those spaces and corrosion of metal structures. Lower quality coals such as lignite are more prone to this process than higher quality coals such as anthracite. Understanding the quality of coal being shipped and how to monitor it is fundamental to reducing the risk of self-heating, and possibly the outbreak of fire.”

The club says it believes one country whose coal exports present a real threat to ships and seafarers is Indonesia and it further notes that incidents have become increasingly frequent in recent years. The problem is primarily related to the nature of the coals, and may be exacerbated by the way they are handled prior to and during loading. Coal shipped from Indonesia is likely to contain a significant proportion of lower-rank coals in the sub-bituminous and lignite (brown coal) categories. In general terms, lower rank coals are more susceptible to self- heating than the high rank coals.

The UK Club stresses that shippers’ descriptions of the cargo, e.g. “steam non-coking coal in bulk”, may not reflect the nature and properties of the coal being presented for shipment. Detailed recommendations for the safe carriage of coal are contained in Appendix 1 of the International Maritime Solid Bulk Cargoes (IMSBC) Code, which became mandatory worldwide on 1 January 2011 and which should be familiar reading for all deck officers serving on bulk carriers and other types of ship that carry bulk cargoes, even if only occasionally.

The UK Club says its new checklist is intended not as a substitute for reading the full IMSBC Code but as an ‘aide memoire’ for the guidance of shippers, shipowners, charterers, surveyors, ships’ crews and other parties involved in the loading and carriage of cargoes of coal.

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The dry and wet market sections of the Baltic Exchange’s Freight Market Information User Group (FMIUG) have two newly elected chairmen. Philippe van den Abeele, Managing Director of Castalia Fund Management (UK) now heads the dry section and Jeremy Harris, Freight Derivatives Trader - Crude at Shell Trading & Shipping leads the wet section.

They take over, respectively, from Stefan Albertijn of Toepfe and Matthew Holme of Trafigura. The group, made up of shipowners, charterers, operators, and freight derivative traders, provides the Baltic Exchange with regular advice on its freight market indices and route assessments.

Commenting on his appointment Philippe van den Abeele said: “As chair I will be continuing to ensure that the FMIUG provides the Baltic Exchange with the support it needs to develop both its indices and ensure the success of the Baltex electronic trading platform for the dry FFA market. Input from the market place is key to the delivery of the Baltic’s independent services and I would encourage principals to join this group.”

Jeremy Harris said: “The tanker FFA market is now well established and despite the previous Chair’s excellent work in promoting the market, it still has significant growth potential. As Chair, I will ensure the user group continues to work with the Baltic Exchange to look at new ways of increasing liquidity and encouraging new market participants to continue the growth of the FFA market. Work will continue towards dollar per tonne contracts, as settling trades against Worldscale, a floating number, is clearly a barrier to many potential market participants. Like Philippe I encourage all principals to join this group.”

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BMT ARGOSS, a Netherlands-based subsidiary of international design, engineering and risk management consultancy BMT Group, has taken on 12 new staff including naval architects, wave specialists and software engineers and plans to recruit six more in the coming year. The company says its latest recruitment drive is intended to further strengthen its ship response expertise and offer additional web-based information services using existing vessel performance monitoring capabilities.

Han Wensink, director of BMT ARGOSS says: “The worldwide demand for raw materials and energy is increasing. This means that ports are expanding, the transport of oil and LNG is rising and offshore energy infrastructures such as wind farms are quickly being established. Our ambition is to establish ourselves as a worldwide centre of expertise for MetOcean services and ship response simulation. "

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Crane guidance now available

TT Club, ICHCA International and the Port Equipment Manufacturers Association (PEMA) have jointly published safety specifications for container quay cranes.

Experts, working from TT Club insurance claims records and with combined operational experience, have recommended minimum standard safety features to promote safety. The genesis for the project was a TT Club global analysis of insurance claims by ports and terminals, which revealed that 34% of the cost of asset-related claims worldwide was directly related to quay container cranes. While a range of technologies now exist that can significantly improve the safe performance of quay container cranes, and help address some of the most common causes of accidents and claims, many of these features are not currently included as standard on new cranes.

The three organisations set out to identify and recommend a baseline specification for quay container cranes in relation to safety features that should be included in specifications, tenders and quotations for new quay container cranes. The new document is intended for use both by buyers and suppliers of quay container cranes.

TT Club says that, while the recommendations do not carry any force of law, all three parties, hope that the safety features outlined will be embraced both by buyers and suppliers as a voluntary industry standard.

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The Lloyd's Register Educational Trust (LRET) has awarded the Netherlands' University of Twente GBP1m over the next five years to establish The LRET Maintenance Research and Education Programme, which will be at the core of the university’s new Centre of Excellence in Maintenance Engineering. LRET says that maintenance plays a key role in assuring the health of industry and public services such as transportation.

The University of Twente estimates that there is as much as Euro 400bn presently invested in public and private sector assets in The Netherlands alone, requiring Euro 18bn to be spent each year on maintenance, and creating jobs for about 150,000 people.

LRET funding will be used to set up three elements of the programme: a Master of Science in Maintenance Engineering; an International Master of Science in Maintenance Management (involving two other Dutch universities, the Technical University of Eindhoven and the Technical University of Delft); and research on the fundamental principles of maintenance, which will be aligned with the post-graduate teaching programme. Research in most fields of maintenance will be covered in study projects, knowledge exchanges and coaching for the public and private sectors.

LRET is a wholly independent charity created by the Lloyd’s Register Group, its sole benefactor, which has donated another £10 million to The LRET for the present fiscal year. The LRET currently funds more than 20 university research centres throughout the world with committed funds exceeding £11 million.

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