Maersk: Massive Innovative Solutions Must Happen in Next 5-10 Years

At the end of last year, the world’s largest shipping company Maersk revealed plans on becoming a carbon neutral company by 2050.

The efforts are in line with the shipping industry’s push to halve its carbon footprint by 2050 compared to 2008.

“We do not by net-zero refer to off-setting CO2 emissions from fossil fuels. By committing to this target, we believe we will drive the transformation of the shipping industry towards use of carbon-neutral fuels,” the company said in its sustainability report for 2018.

Maersk believes that efficiency can only keep shipping emissions stable, not reduce or eliminate them.

“Nevertheless, until decarbonisation is achieved, decoupling business growth from emissions is a necessity, and we have set an efficiency target of 60% relative reduction in CO2 by 2030 from a 2008 baseline. With these targets, we are breaking the mould for climate targets and ambitions in the shipping industry.”

Maersk had set a target of 60% relative reductions by 2020, using a 2007 baseline. By the end of 2018, the company reached 47% reduction since 2007.

These have been achieved through massive investments in optimizing fleet efficiency, with technical retrofittings including capacity boost, new bulbous bows, propellers and engine modifications, as well as by improving planning and optimizing of networks.

However, as explained, this is not enough to reach 60% in two years’ time.

Hence, the company pointed out that massive innovative solutions and fuel transformation must take place in the next 5-10 years.

“Over the last four years alone, we have invested USD 1 billion and engaged 50+ engineers each year in developing and deploying energy efficiency solutions. We expect this investment level to be sustained in pursuit of our new targets. Efficiency gains do not, however, solve the climate change problem. That can only be achieved through decarbonization,” the company said.


Transformation of the 100-Year Old Business Model

Transforming the shipping industry which has run on relatively cheap, heavy fuel for 100 years is not an easy task. In addition to new ship designs and engine types, there is a need for new types of fuel as well as building entire new supply chains for these new solutions, Maersk insists.

“All of this breakthrough innovation will have to take place in the 2020s and is more than any single company can do,” the company adds.

As a result, the shipping major urges all parties involved to collaborate on incentives and development of innovative solutions to usher in  the age of zero-carbon vessels.

“We want to begin a dialogue with cargo owners, regulators, researchers, investors and technology developers, and together set the foundation for a sustainable industry,” Maersk said, pointing out that research and development will be the cornerstone in decarbonizing the shipping industry.

The Pursuit of Solutions Must Begin Now

Zero-emission, commercially-viable vessels must be on the water by 2030, Maersk believes, especially due to the 20-25-year lifetime of a vessel.

“This should be followed by an initial slow ramping up, allowing maturing of technology and supply chain in order to be able to turn around our entire fleet for net-zero carbon emissions in 2050. This leaves us and the industry only eleven years to find the right solutions for a positive business case for decarbonization.

“For the next few years, it is very important not to rule out any solutions. There are several promising technologies at various stages of development. All solutions will come with benefits and challenges to be overcome and only by actively partnering, collaborating and undertaking research and development will we know which ones will win out. There are several technologies and fuels being developed these years within the areas such as advanced biofuels and hydrogen-based fuels.”

Maersk said that it has already engaged in research and test programs in some of these technologies, for example sustainable biofuels.

“Over the coming years, we will expand the range of solutions we are investigating. This will prepare us for selecting a few candidates we will pursue for the first carbon-neutral vessels.

” Our 2030 efficiency target is strong enough to ensure that we continue to decouple CO2 emission levels from growth in trade and volumes shipped. With this target, we will not exacerbate our contribution to climate change while we grow our business, serve global trade and support job creation.”

Container shipping companies cleared in U.S. Investigation

in International Shipping News 27/02/2019

The world’s two biggest container shipping companies on Tuesday said they have been cleared in an investigation of the sector by the U.S. Department of Justice (DoJ).

Denmark’s Maersk and Switzerland’s Mediterranean Shipping Company (MSC) were among several companies ordered to testify in an antitrust investigation that began in 2017 over practices by an industry that is the backbone of world trade.

Other lines included Germany’s Hapag Lloyd.

Container companies, which transport everything from TVs to bananas, have tried reduce costs through alliances to pool sailing schedules and port calls. Critics say this can lead to reduced services and increased prices for customers.

Privately-owned MSC, which is the world’s No.2 line, said it had been informed by the DoJ that the department had closed its investigation into MSC and the global container shipping industry without bringing charges or imposing penalties.

“This is an important decision where the global container shipping industry has, once again, been fully investigated and exonerated,” the company said in its statement on Tuesday.

A.P. Moller Maersk confirmed that the DoJ had closed its investigation and had released Maersk from any obligations under the Grand Jury subpoenas issued in March 2017.

Camilla Jain Holtse, A.P. Moller Maersk’s head of competition law and policy, said the company had provided full cooperation throughout the investigation.

A spokesman for Hapag Lloyd declined to comment.

The investigation could have resulted in large fines at a time when the container sector is struggling with slowing global economic growth.

Last week Maersk warned that trade headwinds would slow container demand growth this year, sending its shares down 10 percent. The stock was down 2.3 percent at 1343 GMT on Tuesday and Hapag Lloyd was down 2.8 percent.

The U.S. investigation followed separate cases in other jurisdictions in recent years.

In 2016 European Union antitrust regulators accepted an offer from Maersk and 13 competitors to change their pricing practices to stave off possible fines.

Gordon Campbell on why shipping is New Zealand’s big new trade problem

So Jacinda Ardern and Theresa May have signed a piece of paper promising peace in our time when it comes to our trade with Britain.

Hard Brexit deal or no Brexit deal at all, there will be something called ‘regulatory continuity’ that will ensure the rules governing our trade with Britain won’t change overnight. Reportedly, Ardern thinks this should re-assure our meat industry, even though (small detail) this piece of paper is not a guarantee of trade access. So if and when Britain crashes out of the EU causing goods to pile up on both sides of the Channel and our lamb exports can’t get through to Britain for the Easter trade etc etc at least we’ll be able to sleep easy in our beds knowing that the red meat quota hasn’t changed for now. Small comfort, one would think.

Right now, a statement from Theresa May on Brexit has as much credibility as a statement by Donald Trump about North Korea’s plans for scrapping its nukes. Despite her recent crushing defeat in the Commons, May is continuing to playing chicken with Britain’s future, for personal and party advantage. No change there. She is still gambling she can terrify enough of her MPs (and the public) about the chaos of a ‘no deal’ such that Parliament will eventually ratify her wretched deal as the least worst option available. In these circumstances, New Zealand is useful only insofar as we can contribute to the illusion that Number 10 is open for something that looks like business as usual. It isn’t, of course. On both sides of the Atlantic, the practices of normal government are in virtual shutdown.

The Marpol Treaty “Tax”

Brexit is not the only concern. To date, the Ardern government’s biggest crisis came in the spring of 2018 when global fuel prices rose, and the public chose to blame the price hikes on domestic fuel tax increases. At the pump, people largely ignored the major global spike in the price of oil and raged instead about the relatively minor tax add-ons imposed by central and regional government. Panicked, the government blamed the oil companies. Luckily for all concerned, the global oil price suddenly slumped, and the political problems have largely subsided. Holiday motoring, which could have been a nagging reminder all summer of the intersection between fuel taxes and petrol prices, has caused no ripples on the political pond.

In 2019 though, a new and different kind of fuel price Godzilla is coming over the horizon, and it is likely to boost the prices of everything going in and out of the country, from Amazon packages to milk powder. It is called the Marpol Treaty, and like many things that change the world for better and worse, it started out with the best of intentions. Basically, the Marpol Treaty is a set of UN-mandated regulations (devised by the International Maritime Organisation) that among other things, is aimed at cracking down on the pollution emitted by ships, and the crucial bits are in Annex VI. As Bloomberg News recently reported, the global shipping fleets currently consume about 3.8 million barrels a day of fuel oil — in the main, this is heavy, lower-value stuff from a refining process that contains about 1 to 3.5 percent sulphur. That content level is about to change:

From January 2020, new rules from the International Maritime Organization will limit sulphur-dioxide emissions from ships. All else equal, a ship would need to burn fuel with only 0.5 percent sulphur content or less to comply.

Oh sure, there are a few ways of mitigating the impact. “Scrubbers” can be installed on board to wash the bad sulphury content into the sea, but they’re expensive to install and operate, and obviously they add to marine pollution. Very few ships will have them in place by 2020. New ships can be built to run on liquified natural gas, but obviously, that’s no answer for the existing fleets. Also, ships can be induced to steam at slower speeds, which would cut down on their emissions. New Zealand, which is famously far from its markets, would probably not welcome any move guaranteed to bring its exports/imports to market at a slower pace.

In fact, distance is one reason why the Marpol Treaty regulations may impact more severely on New Zealand than on most other nations. The advent of the Internet and digital commerce may have shrunk distance in many respects, but lets not kid ourselves. As the New Zealand official briefing papers on Marpol point out:

New Zealand relies on international shipping to move some 98 percent (by weight) of its imports and exports.

And moreover:

Over 96 percent of international maritime trade, including almost all ships involved in New Zealand’s international trade, is carried on ships registered to States that have acceded to Annex VI [which contains the sulphur emission rules]

Oh, and there’s yet another problem. The Marsden Point refinery does not seem able to cope with the changes that are coming down the pike:

The cost of retooling Marsden Point to convert all high-sulphur residues to MARPOL-compliant product will be high and prohibitively expensive. The refinery is currently exploring if it is possible to produce smaller volumes of 0.5% sulphur fuel, and what may be required to achieve this. This has not yet been fully scoped nor costed. Currently, high sulphur by-products from refining have commercial value to Marsden Point. Once the 0.5 % sulphur requirement comes into force, this situation may change, affecting the refinery’s business model in this regard. In the event that there is a major shift to low SOx fuels, there is an open question as to how the high sulphur residues will be disposed of or used.

Do I hear the cliché “perfect storm”? Here’s another contributing factor to that storm. As the folks at Bloomberg point out, the transition to a low-sulphur diesel or gas oil fuel is also likely to push the price of the good low-sulphur diesel sharply upwards. At which point of course, President Trump could decide to intervene, if only to stop any sharp increase in fuel costs for MAGA-cap wearing truckers from undermining his chances for re-election in 2020:

While fuel-oil prices would tank, the price of low-sulphur diesel would, all else equal, jump. That’s a problem for truckers — like the ones ferrying Amazon’s goodies around — for whom fuel has fluctuated between roughly 20 to 40 percent of the cost-per-mile over the past decade. This explains why President Trump…might want to slow the International Maritime Organisation’s roll in 2020. However, since the U.S. effectively agreed to the rules a decade ago via an act of Congress, delaying or thwarting them isn’t a simple process. Despite efforts by the Trump administration to turn it, a supertanker is bearing down on drivers, oil majors, and even Amazon.com Inc.

Footnote: According to the government briefing document linked to above, New Zealand needs to get its position together on the Marpol Treaty Annex VI process quite soon. A Cabinet decision to accede to the process is expected in the first half of 2019. All going well, a parliamentary select committee would then consider the National Interest Analysis (NIA) and treaty text, and report back to Parliament by mid-2019. Government agencies would complete work on the regulatory amendments required to put the Treaty provisions into domestic law by the third quarter of 2020, and New Zealand would hope to deposit its instrument of accession with the IMO by late 2020, with the aim of putting our compliance into effect by the beginning of 2021. Right now, public submissions are being invited, and the closing date is 11 February 2019. Werewolf will continue to report on this issue.

Annabel Young: Get ready for fuel price rises in 2019

Prices are expected to climb rapidly as demand increases, especially in New Zealand. Photo / File

NZ Herald By: Annabel Young

COMMENT:

Prices at the petrol pump were a regular item in the 2018 news but spare a thought for businesses that buy fuel by the tonne (1000 litres). In shipping circles, the expectation is that the price of oil-based fuel products will rise steeply in 2019 and that they will keep going up. International price rises will be reflected in prices in the domestic market, at the suburban fuel pump.

Here is why this is happening and how it will affect you.

By January 2020, most ships in the world will be subject to restrictions on sulphur emissions. This is the effect of a treaty known as Marpol Annex VI which imposes a maximum level for sulphur content of emissions at 0.5 per cent. Currently the maximum limit is 3.5 per cent sulphur content although it should be noted that in practice, many ships operate below that level.

New Zealand has not ratified Marpol Annex VI yet but it is assumed by the sector that this will be done by at least 2023. In the meantime, the majority of ships operating around New Zealand are flagged to countries that have ratified the Annex and they are therefore bound by it.

Sulphur emissions from fuel are a result of the fuel used and there are a number of ways to address this, but there is no easy option. The fuel oil used by most ships originates from crude oil as the fuel is the residual left after the diesel or other distillates have been extracted. The residual becomes bitumen and fuel oil, termed HFO, IFO and LFO. When the residue is no longer used as a shipping fuel, it may continue to be used in shore-based oil-fired consumers, eg power stations.

Designing a new vessel to operate on an alternative fuel to oil is much easier than retrofitting an existing ship. By way of example, a shift to methanol would be a great way to solve the emissions problem but it costs about $2 million extra to build a methanol ship; whereas it costs significantly more to retrofit an existing vessel. So methanol, being emissions free and locally sourced from Taranaki, looks perfect but may be difficult to implement as a replacement.

Liquefied Natural Gas (LNG) is another option widely available in Australia, but in New Zealand it is tricky to source. Nuclear power is not currently an option for commercial vessels (it is for warships) but may feature as a civilian propulsion choice in the future.

The practical option for most current ships operating on fuel oil is to shift to a lower sulphur oil-based fuel. The obvious choice is diesel because other low sulphur oil-based fuels are not yet in significant production.

An alternative to switching fuels is to install so-called “scrubbers”, that is equipment that uses sea water to clean emissions. About 1 per cent of the current world fleet uses scrubbers; and it is not expected that scrubber production will be able to scale up in the short or medium term. Of course, the scrubber option is only useful if the current higher-sulphur-content fuel remains available.

So what is the likely impact of most ships in the total worldwide fleet shifting to diesel? Ship operators expect significant increases in fuel costs and also worry about availability. At current prices, diesel is at least 35 per cent more expensive than the fuel currently used by ships. Prices are expected to climb rapidly as demand increases, especially in New Zealand as we already rely on importing at least 30 per cent of current diesel needs and would have to import any increased usage.

To achieve the 2020 deadline, it is expected that the worldwide conversion of ships to a low-sulphur fuel will begin in mid-2019. The effect will be a steep rise in demand for diesel. And increased demand means increased prices. The six month lead-in is because changing the type of fuel used by a ship is not as easy as switching on a lamp. It is almost a case of saying that the engine has to want to change.

Around the world, the change in fuel is expected to throw up a range of engineering issues on every vessel, and in some cases the issues will be unable to be resolved leading to the removal of that vessel from the fleet. Some ship lines have already imposed an additional tariff to cover the cost of the switchover.

As the price rises in the world market, the effect on the price of any oil-based fuel (not just diesel) at the local petrol pump is likely to be substantial and immediate.

The impact of higher costs of ship operations will also play out in the cost of everything that you buy because virtually everything has a component of transport in its price.

Ship operators are even wondering if they will be able to source fuel at all.

• Annabel Young is the executive director of the New Zealand Shipping Federation which represents coastal ship operators.

MSC Zoe: Islands hit as 270 containers fall off ship

Extensive debris has washed up on islands off the Dutch north coast after some 270 containers including chemicals fell off a cargo ship in a storm.

As the extent of pollution became clear on five islands including Terschelling, coastguards searched the North Sea for missing containers.

The cargo fell off the MSC Zoe near the German island of Borkum, but the tide carried many of them to the south-west.

Initial images showed children’s toys and TVs on Dutch beaches.

But officials said three containers carried toxic substances, and Dutch and German coastguards warned local people to steer clear of them.

One of those containers had a cargo of peroxide powder, and a 25kg bag of the chemical was found on the island of Schiermonnikoog on Thursday, along with several containers and their contents.

What happened to the MSC Zoe?

The Panama-registered ship is described as the biggest in Europe, with a potential cargo of 19,000 containers.

Containers in the Wadden Sea
Image captionThe Dutch coastguard searched for containers near the islands on Thursday

As Storm Zeetje buffeted northern Germany with gale force winds late on Tuesday night, 270 containers of Zoe’s cargo fell off the ship as it made its way through the Wadden Sea from the Belgian port of Antwerp.

Waves of up to 10m (33ft) in height were reported on the night and images from the Dutch coastguard showed dozens of containers balanced precariously like dominoes on the deck, about to fall into the sea.

By Wednesday morning, strong tides had already swept some of the containers on to beaches on Terschelling, Vlieland and Ameland and Dutch and German coastguard planes scoured the sea for the others.

Map of Wadden Sea

There were fears that other shipping could be damaged by the cargo. The Geneva-based MSC company which owns the ship has asked a salvage company to use sonar equipment to help retrieve the missing containers.

Overnight into Thursday, the MSC Zoe docked at Bremerhaven. Several containers were spotted in German waters and a further 11 were seen by the Dutch coastguard floating between the islands of Ameland and Schiermonnikoog.

How bad is the pollution?

By Thursday five Dutch islands in the Wadden Sea had seen debris from the MSC Zoe wash up on its beaches.

On Texel, Vlieland, Terschelling, Ameland and Schiermonnikoog volunteers were helping on Thursday to clear up the mess spilt the previous day. Around 100 soldiers were being sent to the islands part of the clean-up operation.

Among the rubbish found on Terschelling’s long, sandy beaches were shoes, bags, cushions, chairs, TVs and plastic cups.

Broken TVs lay on the beach on Terschelling hours after the containers fell into the sea
Image captionBroken TVs lay on the beach on Terschelling hours after the containers fell into the sea

Children found pink toys among the rubbish.

Volunteers had to scoop polystyrene packaging from the dunes.

On Ameland, local officials said 130,000kg of debris had been cleared up along an 8km (five-mile) stretch of beach.

When the MSC Napoli ran aground off the south-west coast of England in 2007, 80 containers washed ashore. Police had to shut a local beach as people scoured the debris for motorbikes and other merchandise.

Police had to use old laws on scavenging that require people to return goods from the stricken ship.

Although some flat screen TVs were found in the debris on Wednesday, most concerns on the Dutch islands focused on the environmental damage to the area.

How Cargo Ships Can Go Green

Shipping is the lifeblood of global commerce — more than 80 percent of world trade goes by water. But the industry is also an environmental menace, producing as much carbon dioxide annually as Germany.

The International Maritime Organization has helpfully called for ships to produce about 85 percent less sulfur by the end of next year, and to halve their total greenhouse-gas emissions by 2050.

The shipping industry is properly responding with various obvious strategies: emissions-scrubber systems, slower operating speeds, and the use of cleaner-burning fuels, including liquefied natural gas. These are essential steps — yet not adequate. To meet the 2050 target, shippers will need to try alternative sources of energy.

To begin they’ll need to invest in developing complimentary sail and solar power. Energy storage is needed, too, to take advantage of these intermittent power sources. Other technologies needing further experimentation include zero-emission hydrogen fuel cells and biofuels, which can be made of everything from leftover cooking oil to algae.

Not all improvements need to be highly technological or hugely expensive. One practical idea is to remove the barnacles that attach themselves to ships’ hulls. The drag this creates can increase a vessel’s fuel consumption by as much as 20 to 40 percent. Several new technologies can do the job: chemicals that repel the mollusks; polymers and Teflon-like coatings that make it harder for them to attach themselves; and underwater drones that scrub them away without needing to put the ship in drydock.

Another easy improvement known as cold ironing stems from the days of coal-powered fleets: When ships are being unloaded at a port, they use electricity supplied from the shore rather than their own power systems. California already has cold-ironing requirements at its commercial ports. Other states and nations should follow its example.

And then there is, literally, the nuclear option. The idea of fitting commercial craft with nuclear reactors isn’t actually new: in the late 1950s, the U.S. government funded the building of the Savannah, which served as both a cargo carrier and passenger liner for a decade; Russia’s nuclear-powered container ship Sevmorput, launched in the 1980s, is still in service.

It’s still possible that the advantages of nuclear — no emissions and tremendous speed — can eventually overcome the additional costs involved with developing the technology and protecting against catastrophic accidents or terrorist theft.

None of these strategies can work alone, and some may turn out not to work at all. But the shipping companies, shipbuilders and nations whose economies depend on them are going to need to get more inventive — 2050 is coming faster than they think.
Source: Bloomberg

“Mediocre” Performance Stifles Global Ports

Global major terminal operators maintained a throughput of 41.69m teus in Q3 2018, but the “growth rate of the global terminal operators fell further to 5.8%, the lowest in the past two years,” a new report shows.

The Shanghai International Shipping Institute’s ‘Global Port Development Report of Q3 2018’ found global terminal operators had a “mediocre” performance in Q3 and Chinese and US ports in particular have suffered as a result of the US-China trade war.

The report confirms that “the escalating Sino-US trade war and shipping alliances’ trim or shutdown of liners and control on shipping space hindered the growth of the container shipping market.”

Container throughout down

Cargo throughput in the world’s major ports in Q3 2018 is up 7.4% year-on-year, but the growth rate of container throughput has declined, showed the report.

Cargo throughput rose to over 3.01bn tonnes in Q3 2018, but container throughout fared less well with 92.57m teus of containers handled, merely increasing 2.7% year-on-year.

Performance in production suffered as the escalating China-US trade friction ripped over to products suitable for container shipping, such as small-sized equipment and white goods.

Among the US ports, the Port of South Louisiana and the Port of Long Beach were most affected. The import and export volumes of major products hit by the tariff all fell to various extents, and the cargo throughput of these two ports dropped 1.9% and 3.4% year-on-year, respectively.

Of the Chinese ports, Shenzhen Port has the highest proportion of container throughput for the China-US shipping routes, which accounts for 27% of its overall container throughput. The trade war will dampen its business related to the international shipping routes by 4.5%, stated the report.

As trade friction continued to escalate, the throughput of Shenzhen Port fell 2.6% year-on-year to 6.9 million teus; with slow growth in exports and a withering container volume transferring to China and exporting to the US, the port saw its container throughput plunge 10.4% year-on-year to 4.82m teus.

Other issues which impacted growth and performance included increasingly strict environmental protection policies and a downward trend in global dry bulk cargo throughput.
Source: Port Strategy

MAN Cryo Takes Further Step towards Cleaner Shipping in World-First

MAN Cryo, the wholly owned subsidiary of MAN Energy Solutions, has – in close cooperation with Fjord1 and Multi Maritime in Norway – developed a marine fuel-gas system for liquefied hydrogen.

Multi Maritime’s hydrogen vessel design for Fjord1, including the fully integrated ‘MAN Cryo – Hydrogen Fuel Gas System’, has been granted preliminary approval in principle, “AIP”, by the DNV-GL Classification society. The award is significant in that the system is the first marine-system design globally to secure such an approval.

Dr Uwe Lauber, CEO of MAN Energy Solutions, said: “Winning this approval is a significant development for a number of reasons. As a solution for vessels employed on relatively short maritime routes, such as ferries, this technology is a world-first and showcases our company’s ability to deliver genuinely innovative solutions. Furthermore, Hydrogen is a clean fuel whose profile fits perfectly with the general desire within the industry to move towards cleaner technology. The possibilities for this technology are varied and exciting.”

MAN Cryo developed the Liquid Hydrogen Marine Fuel Gas System design in-house at its headquarters in Gothenburg in close cooperation with the shipowner, Fjord1, and ship designer, Multi Maritime, in Norway.

Louise Andersson, Head of MAN Cryo, said: “To secure this approval in principle shows the determination that MAN Energy Solutions has to advance cleaner shipping solutions.”

She continued: “Our strategy is to actively work with our customers to design and promote cleaner ways of powering vessels, and the competence and energy within MAN Cryo conveys this strategy excellently.”

Fuel-gas system for liquefied hydrogen

The system has a scalable design that allows easy adaptation for different shipping types, sizes and conditions. The design is suited for both above- and below-deck applications, offering ship designers the flexibility to optimise their designs in relation to efficiency, and to cargo or passenger space.

MAN Cryo has long experience with cryogenic gases and solutions for storage and distribution. The company has also made numerous hydrogen installations over the years on land that, in combination with its extensive experience from marine fuel-gas systems for LNG, have been invaluable when designing the new system.

Liquefied hydrogen has a temperature of -253° Celsius and is one of the absolutely coldest cryogenic gases there is, which places system components and materials under extreme stresses. Another design challenge was hydrogen’s explosive nature, with the MAN Cryo engineering team accordingly placing top priority on safety.

Once liquefied, hydrogen is reduced to 1/800th of its volume, compared to that of its gas phase, facilitating a more-efficient distribution. As a fuel, hydrogen does not release any CO2 and can play an important role in the transition to a clean, low-carbon, energy system. Liquefied hydrogen can be used to charge batteries for electrical propulsion via fuel-cell technology. MAN Cryo states that it sees a bright future for hydrogen applications globally as part of its target of achieving zero fossil emissions within the marine sector by 2050. In particular, Norway is currently developing several promising hydrogen applications.

The Maritime Energy Transition

Shipping in particular is facing great challenges with regard to more environmentally-friendly fuel sources, which is why MAN Energy Solutions has argued in favour of what it terms a ‘Maritime Energy Transition’ for some time as the most promising way to achieve a climate-neutral shipping industry.

The term ‘Maritime Energy Transition’ stems from the German expression ‘Energiewende’ and encapsulates MAN Energy Solutions’ call to action to reduce emissions and establish natural gas as the fuel of choice in global shipping. It is also an umbrella covering all MAN Energy Solutions’ activities in regard to supporting a climate-neutral shipping industry. Launched in 2016 after COP 21, the initiative has since found broad support within the shipping industry and German politics.

About MAN Cryo

MAN Cryo offers systems for the storage, distribution and handling of liquefied gases and has a pioneering reputation within the marine sector and LNG business development. It supplied the world’s first LNG fuel-gas system for the ‘Glutra’ ferry in Norway in 1999, a vessel that is still operational to this day. More recently, in 2013, MAN Cryo supplied the world’s first bunker vessel, the ‘SeaGas’, with operations in Stockholm, Sweden. The design for the conversion of the SeaGas was also provided by Multi Maritime with whom MAN Cryo has a long-time cooperation.
Source: MAN Energy Solutions

On Course Towards Administrative Simplification For Shipping

ECSA and the World Shipping Council (WSC) welcome the adoption of a General Approach on the proposal for a European Maritime Single Window environment by Transport Ministers yesterday.

European co-legislators have been working intensively to reduce the administrative burden shipping faces. This burden stems from today’s unharmonised and inefficient reporting obligations and mechanisms within the EU. ECSA and WSC are pleased with the progress being made in both Council and European Parliament towards the establishment of a European Maritime Single Window environment (EMSWe).

Martin Dorsman, ECSA’s Secretary General, commented: “With the adoption of this General Approach the Member States agreed to facilitate, simplify and harmonise the reporting to be done and take a step towards a real internal market for shipping.”

John Butler, CEO and President of the World Shipping Council commented: “The shipping industry is looking to the EU Institutions to deliver a European Maritime Single Window environment that remedies the deficiencies and costs that arose from the original Directive and its lack of a common blueprint for implementation by Member States. Because of those experiences it is even more important to make sure the agreed legal framework provides what’s needed to bring about real and tangible benefits to Europe’s maritime commerce”.

ECSA and WSC are pleased to see in the Council’s text a clear commitment to establish a harmonised data set, which is essential to reach real trade facilitation. The Council has agreed that the data elements must be kept to only the essential reporting information that is required and that additional temporary requirements are only added in exceptional and duly justified circumstances. Martin Dorsman added: “This is a very necessary addition, as we must be sure that once the spring cleaning of the reporting obligations is completed, this will not be undone the next day by allowing authorities to request without restrictions, any additional information in parallel to the EMSWe harmonised data set.”

The European Parliament Transport Committee is also making important improvements to the proposal. Both the draft report of MEP Ms Clune, the rapporteur, as well as several of the amendments tabled by her fellow MEPs are in line with requests from the industry to simplify and harmonise, not only the data, but also the reporting mechanism.

Martin Dorsman added: “On this last element, the ‘how’ to report the data or the so-called ‘reporting interfaces’, we stress the need to make sure these interfaces are truly harmonised and common, both for system-to-system reporting and manual reporting using websites. We very much welcome amendments from MEPs that look at providing a single acess point at EU level and harmonisation of the manual reporting tools (the Graphical User Interface). We stress this would not replace existing well-functioning reporting mechanisms, provided by some port community systems and national single windows. However we should not forget these do not exist in all ports and Member States. We cannot miss this unique opportunity to bring all EU ports to an advanced level by providing a common baseline standard, to the benefit of trade in general and short sea shipping in particular.”
Source: ECSA

World’s First Digital Shipping Company to Form in 2019

Shipping Container IoT visionary Loginno is leading an all-star initiative to select one shipping company, whose entire container fleet will be digitalized in 2019.

They call this initiative “The Contopia Factor,” or TCF for short, a paraphrase of the well-known reality show using a new buzzword. Contopia (a mesh of “Container” and “Utopia”), is a term used to describe a world where every shipping container is real-time IoT connected.

Contopia, Shipping Container Utopia by Loginno

During the 6-month process, shipping companies of mid to small size will have the chance to submit an executive summary, detailing what they will do exactly if they are selected to equip their entire fleet with Loginno’s patented AGAM devices. A panel of industry leaders will then decide who will be the lucky winner to be propelled to the forefront of marine innovation.

“The benefits to the selected shipping company are huge,” says Nir Gartzman, co-founder of theDOCK, one of the leading global maritime innovation hubs, who is also a partner in TCF, “first and foremost, the selected shipping company will be forever etched in history as the first shipping company to go full digital on their container fleet, but not only that: creating Contopia will have a significant effect on the bottom line of that shipping company, decreasing operational costs, and gaining competitive advantages because of the upgraded services they could offer their customers.”

theDOCK is part of a group of Contopia partners, all innovation leaders and market leaders in their space, such as Lloyd’s Register (leader of the classification and marine services market), Sunwoda (electronics manufacturing giant) and IAI (defense innovation leader), with more to be unveiled soon. Says Dr. Rami Pugatch, one of the leading operations researchers at the department of industrial engineering and management at BGU, itself a TCF partner: “We are going to create a unique sandbox, previously unseen in the marine sector, in which many Contopia use cases could be tested in real-life scenarios.” Some of the use cases include the onboarding of scale-less weight measurement, SOLAS VGM compliant, the development of a “Cyber Seal” certificate to replace a container’s physical seal, as well as use cases in operational optimization, supply chain management, smart cargo insurance and frictionless country borders.

“The shipping industry is ripe for disruption and for a dramatic technological upgrade,” said Shachar Tal, Loginno co-founder in a recent interview to software giant SAP. Loginno co-founder Amit Aflalo adds: “The Contopia Factor serves shipping companies with an offer they can’t refuse: a package of competitive advantages, profitability improvements and the halo of being a true innovator. I don’t know of any eligible shipping company who would miss such an opportunity.”
Source: Loginno