Professional Documents
Culture Documents
06
n 52 per cent of shipping fleet on track to fail
CII - according to an analysis by Bearing
using digital models for fuel consumption and
18 n ow tanker pools help with CII - if you can
H
give ‘easier’ cargoes to vessels which are under
higher risk of being downgraded.
emissions.
TECHNOLOGY
07 n eing prepared for stowaways and refugees -
B
the number of individuals is slowly increasing.
A Britannia P&I Club webinar discussed how to
be best prepared 20 n ptimarin and the end of the BWTS retrofit
O
wave - some companies are so dissatisfied with
their systems they are ripping them out and
replacing them
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O
It is mapping environmental issues against by staff as part of a regular discussion and
CIMF has published a ‘position
each industry organisation working on it to have training programme onboard.
paper’ showing where it stands on a clear picture for resource allocation to deliver These videos can be accessed from https://
reducing greenhouse gas emissions the highest impact. www.ocimf.org/programmes/sire-2-0/sire-2-0-
and air pollution from tanker It is sharing experience among OCIMF technical-videos
operations. members via communities of practice on
Its position is that industry should meet or existing operational best practice to reduce GHG
ISGINNT2 and barges
exceed IMO goals on GHG emissions. “Within emissions from tankers, barges, terminals and
this position,” it will focus on preventing OCIMF launched the second edition of the
offshore vessels.
harm to people and environment, developing International Safety Guide for Inland Navigation
It will advocate OCIMF best practice with Tank-barges and Terminals (ISGINTT 2),
best practise for risk management, exploring the IMO in the further development of measures
feasibility of design and operation of new produced in collaboration with the Central
and technical and operational guidelines. Some Commission for the Navigation of the Rhine
technologies, developing performance measures examples are below.
and fuel initiatives. (CCNR) in association with relevant European
Development of measures to reduce methane barging organisations.
OCIMF will provide and advocate best slip and Volatile Organic Compounds (VOCs)
practice guidance to fuel suppliers, bunkering A launch event was held in the Port of
emissions Antwerp harbour house on Feb 13.
companies and vessel operators.
Discussions about incentivising the use of OCIMF also recently agreed an action to
It will work with relevant industry alternative fuels with lower GHG well-to-wake
stakeholders to advocate safe and practicable develop a global barge guide to further its
emissions than conventional marine fuels ambition to support the global barging industry.
operations concerning the implementation
Amendments to the IGF Code and
of performance measures, new initiatives,
development of guidelines for low-flashpoint
technologies, and fuels to support the industry in
fuels. Drone attacks
meeting or exceeding IMO levels of ambition. The increasing number of attacks by drones
Development of guidelines for cold ironing of
OCIMF encourages its members to against merchant ships has not gone unnoticed,
ships and amendments to SOLAS, if necessary
measure, disclose and self-assess progress said Karen Davis, director of OCIMF.
on environmental performance, continuously Revision of guidelines concerning the
OCIMF has commissioned work to
reflecting on how to improve it. Energy Efficiency Design Index (EEDI),
investigate how these operations are conducted.
Energy Efficiency Existing Ship Index (EEXI),
OCIMF will not make commercial viability “We hope the results will offer insights to
Carbon Intensity Indicator (CII) and Ship
assessments of measures to reduce GHG mitigate this growing risk.”
Energy Efficiency Management Plan (SEEMP),
emissions and air pollution.
including minimum power guidelines.
It supports flexibility of choice of technology Committee highlights
Development of new IMO regulations and the
and feedstock when determining solutions, while Current goals of OCIMF’s Environment
revision of the Initial GHG Strategy.
focusing on risk management and practicability Committee, discussed in a February 2023
of implementation. meeting, are an information paper on the use of
OCIMF working groups are working on SIRE 2.0 training videos
Onshore Power Supply; an information paper
information papers on OCIMF has issued the first five of a series of on the risks associated with shaft/engine power
best practice guidance for applying onshore short training videos on technical aspects of limitation, minimum power guidelines and speed
power supply; best practice guidance for SIRE 2.0. reduction zones; a discussion about Volatile
applying emission control technologies; risks These videos will help stakeholders develop Organic Compounds (VOCs).
associated with shaft/engine power limitation, a clearer understanding of the inspection The Engine Power Limitation (EPL) Working
minimum power guidelines and speed reduction programme, and processes within a SIRE 2.0 Group discussed design, maintenance, and crew
zones. inspection. training to mitigate the risk from reduced engine
It is strengthening controls related to The videos are aimed at vetters in OCIMF or shaft power because of Energy Efficiency
GHG emissions and air pollution reduction member organisations, as well as staff based Regulations.
on OCIMF’s SIRE, BIRE, OVID and MTIS in operators’ offices ashore. The videos can be
TO
programmes. downloaded and circulated to ships for viewing
TANKEROperator
Vol 21 No 2 PUBLISHER / EDITOR ADVERTISING SALES PRODUCTION SUBSCRIPTION
Future Energy Publishing Ltd / EVENTS David Jeffries Very Vermilion Ltd. 1 year (7 issues) - £195
39-41 North Road Karl Jeffery Only Media Ltd Tel: +44 (0)1253 812297 Subscription hotline:
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S
hip to ship transfers are usually Northwest of the country is piped to the port is purchased at a price below a stated ‘cap’,
done for two reasons – to move of Primorsk, near St Petersburg, which can although it may be impossible for regulators
the cargo into a different size only take vessels up to 150,000 dwt. So it to verify without having jurisdiction for
vessel, or to disguise where it has is typically loaded into Aframaxes and then those waters.
come from. transferred to VLCCs later.
According to broker Poten and partners, Most transfers are made either off the Costs paid by Russia
Iran has become a “master” at using ship to Strait of Gibraltar, opposite the Spanish Broker Poten and partners calculated that
ship transfers to hide the origin of its oil. It enclave of Ceuta; or off the Greek at today’s standard rates, moving oil from
ships oil on VLCCs to locations offshore Peloponnese, Kalamata or the Bay of Primorsk in Russia to Vadinar in India would
Malaysia, where it is moved onto smaller Lakonikos. cost $6.42 per barrel with an Aframax for
vessels and taken to the final destination. the whole distance, and $5.06 per barrel if
Russia is doing ship to ship transfers Peloponnese STS using three Aframaxes transferring the cargo
perhaps more to be able to use larger vessels Bloomberg reported in February 2023 that to a VLCC in Ceuta (North Africa, opposite
for cargoes from Primorsk. Oil from the according to its tanker tracking, “millions of Gibraltar).
barrels” of crude However, a recent Reuters article said that
and products a shipowner had issued a $10.5m invoice
from Russia have for an Aframax voyage from the Baltic to
been detected India – which would mean a rate of $14.98
being switched per barrel.
between tankers “If these rates are anywhere near
a few miles representative of the premiums that can
off the Bay of be achieved by moving Russian crude, it
Lakonikos, in is no surprise that certain vessel owners
the South of the are willing to take the reputational and/or
Peloponnese, sanctions risk. In a few voyages owners can
Greece. earn their investment back,” Poten said.
The transfers
take place over Vortexa analysis
6 miles from
In January 2023, ship data company Vortexa
the coastline,
reported that it was seeing an “increase
making them
in ship-to-ship transfer activity (STS), at
outside Greece’s
previously uncommon locations.”
territorial waters.
The average age It cited Offshore Ceuta (Spain), and
of the tankers offshore Kalamata (South of Peloponnese)
involved is 18 as emerging key hubs for STS transfers of
years, with the Russian Urals oil, which is loaded onto a
oldest built in tanker in the Baltic port of Primorsk. This
1997, so 26 years amounted to 9 per cent (Ceuta) and 11 per
old, Bloomberg cent (Kalamata) of Russian Urals exports in
said. December.
Under Before the war, half of the ship-to-ship
sanctions rules, transfers of Urals oil took place offshore
European Union Skaw, also known as Skagen, Denmark’s
companies may Northernmost town.
only provide After the war started, many Urals ship
assistance or to ship transfers were taking place near
equipment, such the Azores, in the Mid Atlantic, handling
as fenders, to the 60 per cent of Urals ship to ship transfers
International Registries, Inc.
in affiliation with the Marshall Islands piraeus@register-iri.com transfers if the from May 2022 to August 2022. The oil
www.register-iri.com
Maritime & Corporate Administrators
cargo onboard was being transferred into VLCCs which
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April - May 2023 l TANKEROperator
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were discharged in China. But this became transfers offshore Ceuta was 20 years, the Spain, learned that the ship had done a
unfeasible in the Autumn and Winter due to oldest was 26 years. The average age of ship to ship transfer from a vessel named
high tides. tankers doing transfers offshore Kalamata “Elephant” in the Alboran Sea (just East
Vortexa has tracked that every Urals cargo was 15 years, Vortexa said. of the Straits of Gibraltar). A certificate of
transferred into a VLCC in Kalamata had an More from Vortexa is online here. https:// origin for the cargo was found stating that it
ultimate destination of India, which it could www.vortexa.com/insights/crude/new-key- came from the vessel “Nobel”.
reach via the Suez Canal. Although fully locations-emerging-for-russian-urals-sts- First LNG STS transfers
laden VLCCs have too deep a draft to use the activity/ Titan LNG of Amsterdam, Netherlands,
Suez Canal, so need to sail around the Cape reported that it was involved in its first ship
of Good Hope, Vortexa says. Maersk tanker rejected in Spain to ship transfer on the anchorage of Skagen,
The Urals cargoes transhipped offshore In February 2023, Spanish authorities between Denmark and Sweden, in February
Ceuta went to both China and India. Ceuta reported that a Maersk Tankers vessel 2023. Its bunkering vessel Optimus took a
is closer to Primorsk, and it makes sense to “Maersk Magellan” had been banned from cargo from Hoegh Norway’s tanker Arctic
tranship the Primorsk cargo as quickly as Spanish ports, because its cargo was found Princess.
possible into a VLCC, which has a lower ton to have been previously carried in a vessel “Thank you Fendercare Marine, Höegh
mile cost. which had formerly gone under the Russian LNG, TB Marine Shipmanagement (Riga)
Vortexa also observed that many of flag. and Equinor for your trust and cooperation
the tankers moving to Russian trade had The cargo had been transhipped from a for this operation,” the company wrote on its
previously been carrying Iranian and vessel named “Nobel”, which was Cameroon LinkedIn page.
Venezuelan oil, so were outside the ‘western’ flagged, but had been Russian flagged up to Meanwhile in Greece, the first LNG ship
system. July 1, 2022. The rejection was under the to ship transfer took place in November
Chinese operators accounted for 65 per terms of EU regulations prohibiting access 2022, with 140,000 cubic meters of LNG
cent of the ship to ship transfer activity to any vessel changed from Russian flag was transferred, also from the Arctic
offshore Ceuta, and Dubai operators to another flag after February 24, 2022, or Princess to GasLog Athens, a new Floating
accounted for 60 per cent of the ship to ship registered under the Russian flag after April Storage Unit (FSU) currently anchored at
activity offshore Kalamata, Vortexa said. 16, 2022. Pachi, west of Athens.
TO
The average age of tankers involved in The maritime authorities of Tarragona,
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“ e have learned to navigate
the rough seas, being
navigators and seafarers,”
said Dr Nikolaos P Tsakos,
Founder, President and CEO of Tsakos Energy
Navigation (TEN). “We have been able to
grow in difficult times. [But] “this year might
be one of the best years in the company’s
history.”
He was speaking in an investor presentation
on January 12, organised by Capital Link,
which can also be viewed on YouTube (see Screenshot from webinar. Dr Nikolaos P Tsakos, Founder, President and CEO; Paul Durham, CFO;
link below). George Saroglou, COO; Harrys Kosmatos, Corporate Development Officer, all of Tsakos Energy Navigation
(TEN)
The company was founded in 1993 so
celebrating its 30th year. The company began market give TEN the ability to make a profit than at the previous year end, increased by
with 4 vessels, one Aframax, one Panamax, when the market is strong. over $200m. This will help us to reduce
and two product carriers. The past 30 years TEN aims to charter vessels for long periods outstanding debt at an accelerated pace,” he
included the 1997 Asian financial crisis, the when the market is strong and so good rates said.
9/11 crisis of 2001 and collapse of trade which can be obtained, Dr Tsakos said. “Already, in the past six years, outstanding
followed, the credit crisis of 2008, and since Long term charters have been secured for debt has fallen by about $500m and it
2020 the Covid crisis and Ukraine crisis, Mr all of the 6 vessels in newbuilding, which are continues to shrink.” Having lower debt “will
Tsakos said. to be delivered between Q3 2023 and Q2 of help us finance new vessel opportunities
Today it has a fleet of 66 tankers on the 2025. A further newbuilding is on option. which may arise in future,” he said.
water, with a further 6 newbuilds and a further 4 of these 6 vessels are dual fuel (LNG “We still expect our revenue to grow into
newbuild on option. The fleet includes crude powered) Aframax tankers. 2023 as the market continues to remain firm.”
oil and oil product tankers, LNG tankers and The company’s current and long term clients
shuttle tankers. include Equinor, Chevron, ExxonMobil, Modernising the fleet
TotalEnergies, BP, Shell, Sunoco, Petrobras, Dr. Nikolas P. Tsakos noted that the prices for
Financial risk management Vitol, Pemex, Trafigura, Gunvor Group, second hand vessels are some of the highest he
TEN has 66 vessels “on the water” at the Koch Industries, Irving, Flopec, Cheniere, has seen, and this is something Tsakos is able
moment. Of these, 40 vessels (61 per cent) Mitsui, Glencore, PEMEX, Neste Oil, Uniper, to take advantage of.
have ‘market exposure’, so they make more or Hyundai Glovis and Tesoro, he said. So, this “Our aim is to modernise the fleet, taking
less money based on the strength or weakness includes oil and gas companies, refineries and advantage of situations. We are looking to sell
of the market. This is either due to a ‘profit traders. 7 or 8 of our vessels - older generation ships.
sharing’ arrangement in a long term contract, Equinor is TEN’s largest charterer with 9 That would give us a very big capital gain for
or from actually being on the spot market. vessels on long term contracts and 4 newbuild year 2023,” he said.
George Saroglou, COO of Tsakos Energy vessels on long term contracts. “These are deals that are progressing -
Navigation, did not provide details about The company has an “almost 94 per cent” things might happen, might not go through.”
the profit sharing arrangement, but these utilisation rate, which Mr Saroglou describes 90 per cent of the vessels in the fleet were
agreements typically mean the charterer pays as “a very big number”. originally built for TEN or its clients.
more money to the shipping company for a It has achieved this utilisation rate despite As a long term player, “the best time to buy
vessel on time charter when the spot rate is bringing forward some vessel special surveys a vessel is when nobody will lend you money
higher. into the current period, in anticipation of a because nobody is there to compete with you,”
44 of the 66 vessels, or 67 per cent, have market upturn, he said. he said.
‘secured revenue contracts’, such as a long
For example, in 2012-2013, when share
term time charter. Some of these include a
Financial performance prices were very low, “that was a way to buy
profit sharing element.
At the time of the webinar TEN did not yet cheap ships against long term contracts,” he
The idea is that the vessels with secured have its annual results for 2022, but it was said.
revenue provide TEN with a reliable source already “clear that the annual number will be Asked which vessel class he is most
of funds which can be used for repaying strong based on the quarterly results,” said ‘bullish’ about, Dr Tsakos replied that
loans, the vessel operating expenses, finance Paul Durham, CFO. “Aframaxes have been a very good size of
expenses, overheads, chartering costs and
“Cash reserves are in a far better position vessel, Suezmaxes have always played a big
commissions. The vessels with exposure to the
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role. We will be looking at those vessels, but longer distances to Europe, such as from the effectively see two separate tanker markets.
looking for those vessel to be built with some US, West Africa and the Arabian Gulf. “It is very easy to imagine that over the next
kind of dual fuel arrangement.” The longer routes reduces supply of tankers two quarters or year we could be faced with a
“We will not order ships on speculation to the ‘Western’ market. “That’s an indicator situation where some sectors could experience
with the existing technology.” of things to come over the next few years,” he a negative growth [in fleet size], against an
There is much interest from charterers for said. increase in oil demand, China coming back to
dual fuel vessels, although “a bit dampened by Another factor is that the tanker order book the fray, a prolonged war,” he said.
the huge price of gas.” today is “one of the lowest order books in So for a tanker operator, “we are very
“Major oil companies are still looking for 25-30 years,” he said. optimistic on how things look,” he said.
transactions like this. We’ve done Equinor. In 2010 and 2018, the number of tankers
We are in discussion with other major on order was 10-20 per cent of the number of Shuttle tanker market
companies, for transactions that would help vessels, he said. “Today the order book is just TEN currently operates four shuttle tankers on
build new quality ships.” under 4 per cent.” “very long contracts,” of up to 15 years, Dr
Vessels in the current order book will be the Tsakos said.
Broader market ones which replace the ‘departing vessels’. Because they are on long contracts, we can
Looking at the broader market, Harrys And 10 per cent of the current global fleet say that the lower the market rate is for shuttle
Kosmatos, Corporate Development Officer, is over 20 years old, and 24 per cent over 15 tankers, the better the relative returns, he said.
noted that global oil demand had already years old, he said.
recovered from pre-pandemic levels. Older tankers may be expected to find a The presentation can be viewed online here.
The Ukraine invasion had led to “elongation market ‘on the other side’, carrying Russian
https://www.youtube.com
of routes” – because Russian oil is banned oil to India and China, he said. These are
watch?v=yZKsCkb4Y6M TO
from Europe, it is replaced by oil travelling vessels which, until recently, competed in
the international commercial arena. We will
F
rom Baku, oil can reach international
markets via the Baku–Tbilisi–Ceyhan
(BTC) pipeline, which crosses
Azerbaijan, Georgia and Turkey to the
Mediterranean.
The BTC pipeline was built to carry oil from
Azerbaijani oilfields, offshore but on the West
of the Caspian Sea, to international markets.
Oil and gas companies in Kazakhstan are
showing a reluctance to provide annual volume
commitments, says Semurg Invest, the project
developer and operator of Kuryk port. This
includes Shell, Chevron, ExxonMobil, ENI and
Inpex. The terminal could be built with under Soon to see a tanker terminal? the port of Kuryk, Kazakstan
$100m investment. If the companies would
technical and regulatory issues. The disruption be operational by early April 2023. This will
commit to using the terminal it would encourage
was interpreted by many experts as a warning provide a route for grain out of the region to
others to invest.
from Russia that Kazakhstan should stay silent Middle Eastern and African countries. The
Currently, about 80 per cent of Kazakh oil about the war or face economic disruption, terminal already has rail links and power
reaches international markets via the Caspian according to news reports. supplies.
Consortium Pipeline, which runs through Russia
Oil sales account for 60 per cent of In December 2022, UAE based port operator
to the Black Sea port of Novorossiysk, which
Kazakhstan’s export revenue and a fifth of AD Ports Group signed an agreement to set up a
is under 100 miles from Crimea. Oil and gas
the country’s GDP. Kazakhstan is keen to joint venture with KMTF (Kazmortransflot), an
companies in Kazakhstan need to pay Russia
increase the country’s export capacity through offshore logistics and services subsidiary of the
to transport their oil. All Kazakh exports to the
the Caspian Sea to 400,000 barrels a day / 20m Kazakh National Oil Company (KazMunayGas).
west go through Russia via various routes.
metric tons per year. The BTC pipeline has a The joint venture will operate offshore vessels
This exposes them to the possibility of war capacity of 1.2m barrels a day. and tankers, including in the Caspian Sea. It will
related disruption. During 2022, Russia began be 51 per cent owned by AD Ports Group.
The first part of the project at the Kuryk
disrupting flows through the pipeline. It cited TO
port is to build a grain terminal, expected to
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T
he nationalities with the most feature more prominently in the data of a vessel deck, looking at the water, where
stowaways are Ghana, Nigeria places where stowaways try to get onboard, a small boat passed below the rudder of a
and Tanzania, said Simon Rapley, including on ro-ro vessels. ship and a number of men jumped out of the
Divisional Director - Loss In Britannia’s data, the number of cases per rudder space into the boat. The ship crew had
Prevention with Britannia P&I, speaking at a year is “generally trending downwards”, but been aware that they were there, so the men
Britannia P&I Club webinar on Feb 28. still at 50-60 cases per year, and on average 2 went to find another ship.
There is a slow decline in the number to 2.5 people per case, he said. People have also hidden in store rooms,
of stowaways from many West African the engine room, inside the funnel, in
countries, including Ghana, Nigeria, Getting onboard and hiding crew accommodation, in chain lockers and
Cameroon and Ivory Coast, he said. “IMO “A stowaway doesn’t care if it is a container rope storage bins, and behind panels in
has done a number of workshops in West ship or tanker. If a vessel is going from accommodation.
Africa to reduce the number of stowaway Lagos they don’t care where it is going, they The chain locker storage room is a
incidents and it’s working to a degree.” just want a way out,” Mr Rapley said. particularly dangerous space, because the
Tanzanian nationality stowaways often The easiest way to board the vessel is up rusting of the chain can deplete oxygen in the
board vessels in South Africa, in particular the gangway or ladder. Some climb mooring air, he said.
Durban, he said. ropes and anchor chains, or get onboard The largest number of stowaways Britannia
The International Group of P+I clubs inside box containers loaded by crane. P&I has seen on one vessel is 23.
collect figures on stowaways every four There have been cases of vessel security Typically, stowaways will make
years, and the latest available is for 2017. guards and stevedores themselves becoming themselves known to crew within a day of the
These show that the number of incidents is stowaways. vessel’s departure, Mr Rapley said. They will
gradually declining, although the number of Stowaways then need to hide, at least until not typically take food and drink with them,
individuals involved is going up, so more the vessel departs and has gone too far to so will get hungry and thirsty. “
people per incident. want to turn back. People may hide onboard In one case, a product tanker departing
The IMO also collects data, but the in cargo holds on dry bulk vessels, or empty from Lagos, a crew member heard a knocking
International Group’s figures are around 10x containers on container ships. They can sound coming from a space above the rudder.
higher, showing that IMO must be missing hide inside cranes or inside lifeboats. “Now He opened a manhole, and 15 stowaways
many incidents, he said. we have fully enclosed lifeboats, who is came out.
In data from Britannia customers, where checking [if anyone is inside]? Not normally
it can access more detail, there are a high anyone,” he said. Preventative measures
number of incidents in West Africa where “One particularly favourable place to hide Britannia recommends three security guards
Lagos and Port Harcourt have particular is the void space around the rudder trunk,” are employed at the wharf to guard the vessel,
prominence. Also South Africa, Kenya, he said. “You can get quite a considerable one by the bow, one by the stern, and one at
Morocco and Spain, he said. number of persons in that area.” the accommodation ladder. It can be useful to
Ports in Northern Europe are starting to Mr Rapley showed a video taken from have your vessel security access controls at
Screenshot from webinar. From left to right: Simon Rapley, Divisional Director - Loss Prevention with Britannia P&I; Ilka Beck, associate director of the “People
Risk” team at Britannia; Michael Robertson, senior marine consultant, Van Ameyde McAuslands
Regulations
Online Maritime Training and Certification At IMO, there are amendments to the stowaway regulations coming into
force in 2024, covering limits to payments to stowaways, and spreading
the word about attempts to board.
The regulation’s full name is The Convention on Facilitation of
International Maritime Traffic” (the FAL Convention), originally from
1965 but with many amendments since.
The amendments coming into force in 2024 state that stowaways
should not be given any financial payments or other benefits “beyond the
minimal requirements to ensure the security, general health, welfare and
safety of the stowaways while on board or on shore”, because “that might
act as an incentive to reoffend or as an encouragement to other persons
attempting to stow away onboard ships.”
Another amendment is a recommendation that all cases of stowaways
detected in port attempting to join a ship should be reported to the
appropriate port authorities, who should inform all nearby ships.
Refugees
Ships may also take on refugees, for example because you see them at
Marine sea on an unsafe vessel. You may need to pick up hundreds at once. This
Advanced Dangerous
Environmental is a different situation, they don’t need to hide anything.
Liquids
Awareness
“Make sure boarding arrangements are safe, have life saving
arrangements, board women and children first, and one at a time,” Mr
Rapley said.
Basic Training Tank Ship “Check their possessions, you don’t want people coming on with
Polar Code Liquefied Gases
lighters or matches if it is a tanker. You don’t want knives or guns. Move
them away from boarding to a safe area. Secure the bridge and the engine
room. Several hundred people roaming around [can be] very difficult to
Engine Room Vessel Personnel control.”
Resource with Designated
Security Duties
“Keep authorities, managers, charterers fully informed,” he said.
Management
“We recommend you don’t take photos or videos of refugees. There’s
been cases where they take offence. If you are 25 crew and have 200
Let us help build your Training Matrix to meet refugees, that’s a difficult situation to be in.”
ISO, ISM and QHSE requirements “If conditions are too dangerous, speak to authorities. If you think the
vessel is not safe to take them onboard, talk to authorities. Keep detailed
records in the logbook.”
Mariner Skills
43 Danbury Road McAuslands perspective
Wilton, CT 06897 Michael Robertson, senior marine consultant with Van Ameyde
McAuslands, agreed that the biggest risk area in the world for stowaways
is the African continent.
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April - May 2023 l TANKEROperator
MANNING
“Tanzanian and Kenyan nationals regularly “Stowaways seek to assume a nationality Once stowaways have been discovered
seek passage to the Red Sea, Gulf and Far in hope of gaining sympathy from an onboard, they pose a security risk to the
East,” he said. immigration official during the interview crew. “They need to be put into secure
Van Ameyde McAuslands is a marine process,” he said. accommodation to keep crew safe,” she said.
surveying and consultancy firm which can Ms Beck gave an example of a stowaway
assist to resolve stowaway and refugee cases, Deterrence who was onboard one vessel for 7 months
including working for insurers. Mr Robertson The International Ship and Port Security in the Covid period, from May 2020 to
leads its “crew care” team, which handles a (ISPS) code, introduced after the Sept 11 December 2020. The shipping company
wide variety of claims. 2001 attacks to prevent terrorism, “is adhered tried to disembark the person in 23 different
The big challenge for the shipping to quite closely in some parts of Europe,” countries. Covid travel restrictions and lack
company is working out how stowaways can he said. This will make it much harder for of flights added to the problem.
be discharged, he said. someone unauthorised to get to the vessel’s
In Far East ports, cases “are notoriously berth. The person, a national of Central African
difficult to resolve,” he said. “In my opinion, the code has improved Republic, boarded the vessel in Douala,
“There’s been little willingness to assist, general security, but there remain areas where Cameroon, disguised as a stevedore, and so
authorities choose to look the other way, it appears that governments are not investing was not found by security guards with dogs.
leaving the shipowner and [P&I] clubs enough in security of ports, particularly on At the next port, in Brazil, no-one was able
members to fend for themselves.” the African continent,” he said. “Stowaways to leave the ship at all.
The UK is fining shipping companies take advantage of the lack of security, The ship then went to Europe, and security
£2000 per stowaway, and this is likely to particularly during the night-time period.” guards were taken onboard in Gibraltar, who
increase in 2023, he said. The UK has also Mr Robertson recommends that security were themselves unable to leave the ship for
been refusing entry to stowaways. A similar guards should wear high visibility clothing, 5 months. “They were not happy, and very
picture is happening in other European ports. so they can be easily seen by stowaways and costly,” she said.
This means that stowaways “spend act as a deterrent. The ultimate cost paid by insurer was “just
extended time onboard vessels,” until “On one ship, there was a board [on the under $550k.”
reaching a port willing to accept them, he berth] saying, ‘next port Vladivostok,’” he There are many different authorities which
said. The vessel is blamed for having poor said. need to be involved. As well as immigration
security. and embassies, you involve airlines, airport
“Stowaways can become so frustrated at Claims handling authorities and health authorities.
their situation that they become aggressive,” Britannia is currently seeing about 22 It may be worthwhile for the shipowner to
he said. stowaway insurance claims a year, and 8 send the vessel back to the embarkation port.
Although people often have “rather high claims for saving refugees at sea, from its Despite the initial costs in ship time, it will
expectations” of the reception they are going members. The biggest refugee claim was for save much trouble later, she suggested.
to get in Europe. 300 people in a single case. For refugees, the situation is different,
If a consulate or embassy is willing to Insurers can pay expenses “necessarily because of obligations by countries to accept
provide travel documents to enable them incurred in maintaining, landing, deporting them under international agreements, and
to leave the ship, then the next question is or repatriating stowaways or persons saved at they do not need travel documents to claim
whether they are willing to do this on the sea, including diversion expenses,” said Ilka asylum. The biggest spending made by the
basis of a phone interview, or insist on a face Beck, associate director of the “People Risk” shipowner, and later claimed back from the
to face interview, which may be possible to team at Britannia. insurer, could be for purchasing food. TO
Tank Cleaning Equipment Tank Level Gauging Gas Freeing Fan P/V Valves Electropneumatic Gauging
www.scanjet.se
M
ost people in the maritime toxic leader. Many times people stuck on A story from the Navy
industry are familiar with the idea a ship with a toxic leader feel that there is Tom Sharpe OBE, a former commanding
of a toxic leader, who ‘manages’ absolutely nothing they can do about it. officer in the UK Royal Navy, told the story
people by making threats to scare There have even been studies showing that of an experience he had in 2004 on the HMS
them and occasionally carrying them out. toxic leadership can be “highly effective” for a Somerset vessel, as third in command of the
The challenge for the people responsible for certain period of time, although after that time ship. An officer was appointed to the vessel
placing this ‘toxic leader’ onboard is that toxic “the wheels come off,” said Stephen Window, who was already widely known to be a toxic
leadership can look very similar to someone former training strategist with the UK Ministry leader. “It became clear to us shortly after
pushing crewmembers for better results, if you of Defence, responsible for the strategic and he joined that his modus operandi [way of
cannot see the unhappiness and pain being operational development of the Nautical working] was fear and recrimination, rather
caused, or perhaps even if you can. Institute Academy course portfolio. What is than mentoring,” Mr Sharpe said.
In many cases toxic leaders are only ‘toxic’ to one person may be good or beneficial “It was surprising how fast this toxicity
removed when it becomes clear that the to another. took hold. He was very difficult to work with
performance of their team is insufficient, But for crew members, “it is difficult to very quickly. Junior officers were particularly
because people are too scared to do their thrive, you are continually watching your back targeted. A few senior ratings were targeted.
jobs properly. The toxic leader is essentially and trust isn’t there. That affects morale, it has We spent most of our time trying to work out
abusing power, rather than supporting the an impact on safety, people are scared,” he what to do about it.”
people they lead. But this can take a while to said. Mr Sharpe discussed this officer with the
become evident to others. These were some themes discussed at a vessel’s captain on four different occasions,
Many ‘toxic leaders’ do not themselves Nautical Institute webinar on February 21, and each time seemed to be worse than the
realise what they are doing, or cannot be made including speakers with backgrounds in senior last. He tried to alert the Navy’s onshore sea
to see it, because they are following patterns positions in the UK’s Royal Navy, but with training organisation, who should be able to
of behaviour taught to them, perhaps by their experiences which will be relevant to many identify toxic behaviour and act, but they failed
parents. people working on tankers. to do anything. On the contrary, they endorsed
Some shipping companies offer routes to The audience were asked if they thought the behaviour as appropriate, when the vessel
go over a leader’s head, so crewmembers can seafarers have adequate resources to deal with was about to go to a ‘high threat theatre’ (the
report on a troublesome leader to the office. serious HR incidents. Only 29 per cent said second Gulf War).
But these routes are not always effective, yes. Mr Sharpe alerted the captain of the flotilla
particularly if the company has trust in the
10
April - May 2023 l TANKEROperator
(group of vessels). He also did not do anything, incorrect,” Mr Sharpe said. to question the pilot or master if they have a
but instead reported on Mr Sharpe to his Mr Sharpe said he did not think the wearing doubt about the safety of their instructions, he
vessel’s captain before leaving the ship. “We of uniform, or visible displays of rank said.
felt that we were on our own thoroughly in this encouraged toxic behaviour, as some others
eight-month period.” have suggested. “Rank can be used as an Psychological perspective
Eventually one officer on leave had a mental excuse. The issue is the person hiding behind “A toxic leader is enjoying a kind of ego trip,
breakdown and another officer “was heading the rank.” a cloud cuckoo land of power,” said Dr Steve
the same way”. Price, a Consulting clinical hypnotherapist and
“These people were my responsibility. It Pilotage Master Mariner, who worked for many years
became apparent that the ‘quiet word’ wasn’t In the world of marine pilotage, both masters on a Naval vessel with a toxic leader.
working, something more drastic needed and pilots can be ‘toxic’, said Capt. Don “They are skilled manipulators and skilled at
to be done,” Mr Sharpe said. “I called the Cockrill, former Port of London pilot and drawing attention to themselves.” But it “will
sea training legal advisor and took what I former secretary general of the United leave a debt which has to be paid by others.”
considered to be a personal risk, assuming Kingdom Maritime Pilots’ Association. Often “The short-term effectiveness can lead to
the information would find its way out of the it happens “without the guilty party realising organisations tolerating toxic leadership. [But]
system.” they are doing it.” there comes a crisis point, an HR problem or a
“This set-in-train a series of processes, There are pilots which have an “almost serious accident.”
questions and interviews that ultimately dictatorial manner”; there are captains who do Investigating or resolving toxic leadership
provided his demise.” not make pilots feel welcome, he said. needs “a lot of experience, a degree of
It had also come to the Navy’s attention It does not help that pilots and bridge teams compassion, both for victims and perpetrator,”
that sailors around this toxic officer had often only have a few minutes to try to create a he said.
substandard performance. “People were working relationship, he said. It involves creating a “solution space”, for
becoming so scared to do their jobs, they were It also does not help that the actual legal understanding the problem and seeing where
ineffective.” role of the pilot is not the same in every part of the legal boundaries are.
Reflecting on it now, the big question is the world. In some places they are legally an It is very helpful if there is an effective ‘back
how, when everybody in the Navy ‘knew’ advisor, in other places they have responsibility channel’ for reporting problems to shore based
about this person and their problem, “somehow for navigation of the ship. And this legal status management. This was absent in Mr Sharpe’s
nobody knew or was paying attention.” is often overlooked or misunderstood. Navy story, and needed to be created, he said.
“He was referred to as ‘a good man to go Pilots are not infallible individuals, and it is “My advice190mm wide
to seafarers x 130mm
is they should keep
to war with’ by people above him. Absolutely important that all other crewmembers feel able a diary. Diaries are valuable as a source of
Musasino X-Radar
“
those behaviours in, the training dollars go It may be better
if someone else
included in the programme;
down the toilet.”
is asked to have • Harbour manoeuvres are supported by manned
“A master or chief will go back on the ship,
models of large ASD and tractor tugs.
Since
subsumed2012, theculture
by the prevailing reading
on board. of the
Six months after he felt so passionately about
a discussion with
that person. In this
For further information please contact:
VLCC
training he sector
will have revertedhas
to remained
type.” case the discussion
Ship Handling Research and Training Centre,
”
A better way is if the shipping company should be done
Ilawa, Poland
one of oversupply
sends training mentors onboard, such as the
ship superintendent, and this person watches
in a neutral area
(not in a cabin), tel./fax: +48 89 648 74 90 or +48 58 341 59 19
behaviour on the bridge. If they see toxic and focus on facts, e-mail: office@portilawa.com
- McQuilling
leadership in action, they can tell the person to try to avoid www.ilawashiphandling.com.pl
Growing interest in
methanol and biofuels –
DNV’s perspective
Interest in methanol fuel has grown a great deal. Is this the right direction? A DNV webinar
explored the issues with methanol, biofuel and other future fuels, including regulations and
lifecycle assessment
O
ver the past 10 months, since Big change There are two sets of European regulations
April 2022, “methanol has become “We are witnessing a historic moment in for maritime emissions coming into force in
part of the [ship fuel] picture shipping. The fuel shift is happening as we the next couple of years, the Emission Trading
for the first time,” said Christos speak,” he said. Scheme and FuelEU Maritime.
Chryssakis, business development manager “A fuel shift does not happen every In 2024 we will see shipping being included
with DNV Maritime. generation. The last one happened a century in the Emissions Trading Scheme. Companies
He was speaking at DNV’s webinar on ago when we went from coal to oil and took will have to buy carbon allowances equivalent
February 28, “Emerging alternative ship fuels several decades. Now it’s a move from oil to the CO2 they emit, for voyages between two
– focus on methanol and biofuels.” to several different fuels. We expect this to EU ports. There is a transition period, so they
“Methanol is the fuel that has very big happen even faster.” don’t have to buy the full amount from the
growth. That’s something we see in new The change is driven by investors, banks, start, and vessels with a voyage only calling
building discussions.” charterers, pushing for greener shipping, at one EU port will only need to buy half as
Companies operating methanol fuelled and charterers sometimes even dictating the much.
tankers include MOL, NYK Bulkship, Westfal- fuel choice. Sometimes companies are under The number of carbon allowances on the
Larsen, Marinvest, Waterfront Shipping, and pressure to reduce emissions faster than the market is reducing every year, which pushes
Proman Stena Bulk. IMO regulations demand, he said. prices up. EU carbon prices were around
DNV saw yet more orders for methanol Newbuilds of larger vessels are choosing Euro 20 per tonne up to the end of 2020, but
vessels in February 2023, for all ship types, alternative fuels more than newbuilds of have since passed Euro 100 as of the end of
including container ships and bulk carriers, Mr smaller ones, he said. February 2023.
Chryssakis said. All vessels being planned to use alternative This represents a 50 per cent increase in fuel
There is also a continued growth in newbuild fuels so far are ‘dual fuel’ vessels, so can also cost for vessels going between European ports.
vessels able to run on LNG fuel, he said. run on conventional fuels, Mr Chryssakis “This will incentivise energy efficiency for all
For LNG, engine manufacturers are putting noted. And even if operated solely on ships,” Mr Chryssakis said.
a lot of effort into solving the methane the alternative fuel, they will need some It will also incentivise the use of biofuels, if
slip problem, where some methane passes conventional fuel as pilot fuel to run the this can avoid a requirement to pay ETS costs.
through the engine and out of the exhaust engine. Another regulation coming in 2025 is
un-combusted. “In the medium to long term The webinar audience was asked, if they FuelEU Maritime, which requires that the
this is not going to be a problem,” he said. ordered a new building in the next 1-2 years, lifecycle emissions of fuels used by shipping
what would be their most likely choice. is reduced every five years. All ships calling at
20 per cent said conventional fuels / European ports will have to comply with this
biodiesel; 25 per cent said LPG / LNG; 38 per from 2025.
cent said methanol; 12 per cent said ammonia “This is still under negotiation - we don’t
or hydrogen; 4 per cent said onboard carbon know the final form of it,” he said. It probably
capture. means they need to use “at least a certain
amount of biodiesel.”
Tightening regulations
At IMO, there will be a strategy review about Methanol operations
tightening emission goals this year. IMO’s The closest we have to regulations for how
current goal is to reduce absolute greenhouse methanol fuelled tankers should be operated is
gas emissions by 50 per cent by 2050, but IMO guidelines MSC.1/Circ.1621 (December
“there’s stronger pressure to go to zero.” 2020) on using ‘methyl/ethyl alcohol as fuel’
“It’s very hard to predict what the outcome (methyl alcohol is another name for methanol).
of these discussions is going to be. We expect As ‘guidelines’ they are not strictly
to be somewhere between the current targets mandatory. But DNV has contacted several
and zero. We should expect more clarity by flag administrations requesting that they accept
Christos Chryssakis, business
development manager with DNV Maritime July,” Mr Chryssakis said. this circular as a basis for giving approval
14
April - May 2023 l TANKEROperator
DECARBONISATION
for methanol fuelled ships, since there is no very different properties,” he said. So the ‘lifecycle’ emissions additionally
other regulation available, said Øyvind Skåra, Interest in biofuels has grown despite the take into consideration the CO2 emitted to,
Principal Engineer with DNV. fact that, under legislation as it currently or removed, from the atmosphere, when the
IMO is in the process of developing stands, the use of biofuels has no impact fuels are produced and transported. This would
guidelines for operating methanol fuelled on the vessel’s EEXI / EEDI calculation, count as the ‘well to tank’ section of the
vessels to be included the IGF Code (full because those calculations are based only on lifecycle, if you follow the jargon.
name: International Code of Safety for Ship characteristics of the ship itself, he said. The IMO regulations for CII and EEDI /
Using Gases or Other Low-flashpoint Fuels). The use of biofuels also does not impact EEXI currently only address the tank to wake
The text is expected to be concluded in 2025, your CII score according to how the calculation emissions. The EU ETS is also based on tank
then come into force into 2028. is defined in the regulations, although there to wake emissions, but with a carve-out for
One regulatory question DNV has already have been some cases of reductions for specific the use of biofuels based on the CO2 absorbed
had to consider is how methanol can be vented, companies using biofuels agreed by flag state when growing the plants.
such as when removing methanol vapour from regulators, he said, At the MEPC80 meeting But lifecycle emission standards are
a tank, or what happens when it is spilled. in June this year “the use of biofuels under CII coming, because everybody recognises that the
will be considered explicitly.” emissions from producing the fuels should be
Methanol is naturally found in the sea, IMO will shortly start making lifecycle taken into account.
being produced naturally by phytoplankton. It assessment of greenhouse gas emissions IMO’s lifecycle assessment (LCA)
causes much less environmental impact when for biofuels (see next section). This will be guidelines will be made available at the next
spilled than conventional hydrocarbon fuels. different for different types of biofuels, such as MEPC meeting in July 2023. These will
“It dissolves readily in water, and only high whether it is made from a bio material which also cover biofuels, said DNV’s Øyvind
concentrations create lethal conditions or a would otherwise be a waste product. Sekkesæter.
changing effect on local marine life,” Mr Skåra Companies using biofuels do get benefits These “are going to be essential for having
said. under the EU ERV (Emissions Reporting a common standard, a common language, as to
Methanol vapour is heavier than oil and Verification) scheme, where ships using which fuels are low or carbon neutral fuels,”
however, so there can be higher explosion risks biofuels can reduce the amount of emissions he said. “This is an essential part of regulatory
from a cloud. they need to report, and the amount of development.”
Any fuel vapours left in tanks, or in enclosed Emission Trading Scheme (ETS) certificates The FuelEU Maritime regulations, coming
spaces after a spill, are explosion risks. they need to purchase, when ETS regulations into force in 2025, look specifically at lifecycle
All fuel tanks need to be inerted during for shipping come into force. assessment of fuels (see next article).
normal operations, replacing the air above the Some shipping companies using biofuels A lifecycle assessment can make methanol
tank with nitrogen, so it cannot ignite. “We have seen challenges on board with material made from fossil gas look much less attractive
recommend you have a nitrogen generator compatibility, such as fuel reacting with as a future fuel, because although it reduces
onboard,” he said. components in the fuel supply system, he emissions by 5 to 10 per cent on a tank
If it is a tanker, then it is important to have said. There have also been problems with fuel to wake basis, some calculations show it
complete separation of the cargo and fuel filters. increasing emissions by 10 per cent compared
system, so methanol cannot come into contact You need to consider their combustion to conventional fuels on a lifecycle assessment
with other liquids. properties, lubrication properties, corrosive / basis, unless some of the fuel is made from
Methanol also carries less energy per volume acidic properties, potential for leaving deposits biofuel. This topic is explored in more depth in
than conventional fuels, so you need tanks which block pipes, their range of operating the next article.
twice or 2.5 times the size. These tanks need temperatures, the fuel storage stability, and Biofuels and electro fuels also have
cofferdams around them (a barrier to hold the mixability. Also, you need to consider whether emissions in their production, so the lifecycle
fuel if there is any leak), which takes up more they can be used by other fuel consumers assessment calculation will have an impact on
space. onboard, such as lifeboats, he said. their overall benefit.
You may need to consider the NOx
Biofuels emissions, although use is normally permitted Ethanol, LPG, ammonia, and
There has also been a big growth in interest if the existing ship engine is able to use hydrogen
in biofuels for shipping over the past year. the fuel without changes to NOx critical Ethanol can also be used as a fuel, but so far
Several shipping companies have trialled them, components, and use is always permitted for the demand for it has been very low, DNV’s
with most trials initiated by cargo owners, biofuel blends of under 30 per cent, he said. Mr Chryssakis said. This means that engine
said Øyvind Sekkesæter, consultant with “We think biofuels is a real option especially manufacturers do not have much interest in
DNV. Several owners of container vessels are on the short to medium term,” he concluded. developing the technology.
“starting to use biofuels on a regular basis.” “We expect the uptake will be incentivised by LPG can be used as a fuel, and offers an up
There were 300,000 tonnes of pure biofuel greenhouse gas regulations and pressure from to 15 per cent reduction in carbon emissions.
used in 2022 in the maritime sector, some other stakeholders such as cargo owners.” It has only been used as a fuel on LPG carriers
of which was blended, so a total of 900,000 “There is significant potential to increase so far.
tonnes of fuel with some biofuel in it. This supply of biofuels from today’s very low LPG tanks can be used to store ammonia, so
sounds like a big number but it was “only 0.1 level,” he said. a vessel built to store LPG can be converted to
per cent of the total maritime energy mix of ammonia fuel when fuel and engines become
2022.” Lifecycle emissions available.
It is important to remember that there are A big question for methanol fuel, and for Many shipping companies are getting ready
many different types of biofuels, the only thing biofuel, is the lifecycle emissions, known as to order ammonia fuelled vessels, when they,
they have in common is that they are made by ‘well to wake’. This is different to the ‘tank to and the fuel, becomes available, Mr Chryssakis
processing biomass. “Biofuels is a very generic wake’ emissions, which only address emissions said. Engine manufacturers plan to bring
term that covers a wide range of fuels with in the vessel’s exhaust. engines to the market at the end of 2024 or in
S
hipping companies may be surprised processed in a chemical reaction known as the differences – as is advised for any fuel,” it said.
to know that methanol is usually Fischer-Tropsch process to produce methanol. But to comply with FuelEU Maritime,
considered worse on lifecycle During this process, it is common for CO2 to shipping companies using methanol fuel will
greenhouse gas emissions than be generated as a by-product as a result of the need to blend in some methanol produced from
conventional fuels, since it is being presented as complex chemical reactions involved. This is biofuels.
a ‘green’ fuel. usually captured and removed from the syngas, The term ‘green methanol’ is being used,
but some may escape. which is a confusing term. When the ‘green’
This only matters for well to wake
calculations. On a tank to wake approach If the methanol is made from coal, the increase label is applied to hydrogen or ammonia fuel, it
(emissions from the vessel itself), methanol emits is even worse. means fuel produced from renewable electricity.
up to 10 per cent less CO2 than conventional We don’t yet know how IMO is going to But the term ‘green methanol’ is applied to
fuels. Its use will help companies with their CII calculate the lifecycle impact of fuels. But the methanol from biofuels, as well as renewable
scores, because these only cover the tank to wake European Union has already partly stated its electricity.
section of the fuel’s lifecycle. methodology as part of the “FuelEU Maritime” Methanol still contains carbon (the molecule
Shipping companies won’t get 10 per cent proposal. is CH3OH). Green methanol can be made with
improvement in their CII number, because “We have an idea [but] still they have not biogas (CH4) reacted with “biogenic CO2”.
they also have to factor in the burden from decided on the exact methodology for the This is CO2 produced from burning an organic
carrying methanol as fuel, since it has a lower lifecycle. This is something they are doing now. material such as wood, on the basis that the same
energy density, and so can increase the vessel’s Later this year we should get more clarity,” Mr CO2 was absorbed from the atmosphere when
deadweight. Chryssakis says. the wood was grown. So, it does not create any
FuelEU regulations are separate to EU ETS; net addition of CO2 in the atmosphere when
Also, you will probably still be burning combusted as part of a fuel.
conventional fuel in auxiliary engines, because EU ETS does not take the lifecycle into account,
auxiliary engines which can run on methanol but FuelEU is a separate rule about reducing the There are a number of bodies which can
have only recently become available. The overall lifecycle greenhouse gas impact of fuel certify biofuels for the amount of CO2 emitted
nitrogen generator will itself use more fuel, over time. or removed in producing them.
says Christos Chryssakis, maritime business The FuelEU regulations currently calculate an There is not a great deal of “green methanol”
development manager with DNV. So the final increase in GHG emissions of 8-9 per cent from currently produced,. But fuel producers would
emissions saving tank to wake may be more like using methanol fuel if it is made from natural make it if they could see the demand, Mr
5 per cent. gas. The same figure has been arrived at in Chryssakis says. So shipowners wishing to
But if making a lifecycle assessment, you several studies, Mr Chryssakis says. buy it will probably need to sign longer term
need to consider how much CO2 emissions were A report from the Methanol Institute agreements with producers.
released in the manufacturing process. recommended that default carbon footprint “I think that for the rest of this decade, if you
The process of making methanol involves factors should not be used for methanol at all, want to get access to green methanol, you have
reacting natural gas (methane) and steam to due to differences between plants. “The carbon to talk to a producer and get an agreement. You
produce ‘synthesis gas’, a mixture of hydrogen footprint of methanol should be measured and won’t find it available on the market,” he said.
and carbon monoxide. This gas mixture is further certified to account for individual plant-specific TO
16
April - May 2023 l TANKEROperator
DECARBONISATION
T
he ‘net zero’ calculation was made zero emissions through our blended methanol
on the basis that the biomethanol product using bio-methanol produced from
in the blend was made from biogas renewable natural gas at our facility in
from rotting animal manure. If this Geismar, US,” said Mark Allard, Methanex’s
gas had not been captured, it would have Senior Vice President, Low Carbon Solutions.
been released to the atmosphere as methane, “As the world’s largest methanol producer,
which is a much worse greenhouse gas than we are establishing a network of relationships
CO2. with leading renewable natural gas suppliers
So this biomethanol can be considered and assessing other pathways, including
‘carbon negative’, on the basis of the large carbon capture and storage and e-methanol, to
greenhouse gas emissions its production, and provide solutions for the marine industry and
ultimate release of the carbon as CO2 rather other customers.”
Cajun Sun arriving in Antwerp after the
than methane, caused not to be made. world’s first ‘net zero’ trans Atlantic voyage
When this biomethanol is blended with on methanol fuel. Photo credit: Willem Jan Boer,
DDC Smart Inspections The voyage
fossil methanol, the ‘negative’ emissions
of the biomethanol is cancelled out by the International Sustainability & Carbon The tanker, the dual fuel Cajun Sun, was
positive emissions from creating fossil Certification (ISCC) programme. loaded in Geismar with methanol cargo, and
methanol, and also from the combustion of supplied with methanol bunkers. It departed
Bureau Veritas conducted an audit of the
the whole fuel at sea, making the whole fuel on January 17, 2023 and arrived in the Port of
greenhouse gas emission calculations from the
‘net zero’. Antwerp on February 4.
bio-methanol fuel blend, including the fossil
The blend was approximately 80 per cent methanol part of the blend, consumed during The vessel is commercially operated by
bio-methanol and 20 per cent conventional the voyage. Methanex’s subsidiary Waterfront Shipping.
methanol. The vessel is owned and technically operated
Climate Neutral Commodity, an
by Mitsui O.S.K. Lines, Ltd (MOL).
The auditor of the carbon intensity of independent certification party, validated
the biomethanol was certified under the the net-zero voyage against best practices Waterfront operates the world’s largest
International Sustainability and Carbon as defined by the ISCC and issued the methanol ocean tanker fleet with 19 of its
Certification (ISCC) system. The fuel was certification. 30 vessels equipped with methanol dual fuel
produced at Methanex’ facility in Geismar, technology. MOL also owns 40 per cent of
“We’re proud to bring the marine industry
Louisiana, which is certified under the Waterfront Shipping. TO
a tangible solution to transition towards net-
C
II will push VLCC owners in their score for some time, while vessels and CII impact for all.
into new territory as they with improving ratings will not have that At the same time, the cash flow and
tackle shipping’s first true reflected in their grade until the start of the operational advantages that the pool
decarbonisation regulation. next calendar year. These inconsistencies represents mean that owners can be
Arguments between shipowners and their limit CII’s usefulness for charterers as an confidently profitable, CII-positive, and
charterers are simmering, with BIMCO indication of the efficiency of a vessel. flexible in the face of shipping’s next
caught in the crossfire. Shipowners and operators are forced challenge.
Regardless, CII is here now, and tanker to find the right balance between some The pool simplifies a shipowner’s role,
shipping needs to comply. But how? lucrative CII-negative fixtures and CII- providing regular cash flow based on their
CII represents the first global carbon positive voyages, and between cash flow and vessel’s earning potential in the current
emissions regulations applied to the efficiency technologies. This can create a market conditions and reducing the need for
international shipping fleet. It is something trade-off between CII scores and short-term operational staff. Shipowners can allocate
the industry needs to implement to stand a profitability for any ship. this resource elsewhere, including evaluating
chance at hitting IMO’s emissions targets. Shipowners must understand how to and implementing low or no-carbon
Yet, CII is not perfect and has several operate and trade their ships to tackle this, technology across their fleet.
well-documented flaws. achieving a good CII rating, ensuring that Choosing the right pool can help
For instance, while installing low-carbon they incorporate these requirements into shipowners meet high CII standards for their
technologies will make a passing grade charter party agreements. vessels whilst improving their commercial
easier, a highly efficient vessel will not They must adaptively manage their performance.
necessarily have a good rating. A highly vessels speeds and idle days throughout the Another issue is that cash flow can
efficient vessel that sits at anchor for several year, ensuring that vessels average a passing effectively bar small or cash-poor
days will require bunker fuel to power its grade whilst maximising profits. shipowners outside of a pool from longer
generators, emitting CO2 yet travelling no CII represents another stream of data that routes, which are often the most profitable.
distance. This means that an idle, efficient must be analysed and converted into insights This is because the shipowner must pay for
ship may have a worse score than an older, and actions. bunkers before they receive freight payment
less efficient, but highly utilised ship. from a charterer. These routes are inherently
VLCC owners have to tackle a difficult Pool participation CII-positive, as they maximise constant-
trade-off between CII ratings and speed travel and minimise time at anchor.
The volume of ships in a pool allows
commercial performance. CII-negative shipowners and operators to benefit from This challenge is something that Tankers
voyages may represent commercial benefits, greater economies of scale, financial International is acutely aware of and can
while CII-specific contractual clauses may robustness and flexibility through greater compensate for with the size and structure
be considered negotiable by charterers. utilisation across their fleets, helping them of its pool.
CII concerns add a new dynamic to data to mitigate any impact on CII ratings. Tankers International has included
analysis. Shipowners need to consider the Pool partners can take profitable CII- indicative voyage CII scores in its Tankers
potential impact of a voyage on the vessel’s negative fixtures while maintaining ratings International VLCC Fixture app, showing
CII ratings, alongside usual factors such as across the fleet by spreading those voyages an estimated letter grade rating and
pricing and supply and demand side market across the pool based on CII scores to date. comprehensive calculation for every VLCC
trends. voyage fixed.
By doing so, the collective pool of ships
Whilst this entered into force from can maximise earnings while the pain of
1 January 2023, CII scores will not be CII-negative voyages is minimised for any
published next to vessels until January 2024. individual vessel.
At the same time, those scores will be out of Providing a large pool of vessels to
date for 364 days every year, and will only choose from can ensure that high-paying
reflect the average performance up to the voyages that may incur a negative CII rating
end of the last reporting period. are shared out appropriately between vessels
This lack of data means that vessels with to ensure the best balance between profit
falling ratings will not see that reflected
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DECARBONISATION
Managing chartering
complexity and emissions
Chartering is getting increasingly complex, with emissions data being a major factor driving the
complexity. But digital tools and available data can do a great deal to make it easier. Veson and
RightShip explained how
C
hartering is getting more complex, complete tasks has grown. RightShip
with decarbonisation being one All these systems need different logins, and Veson partners with RightShip, an organisation
of the biggest factors driving the for someone to leave their work in one system to which gathers data about every vessel in the
complexity, said Joshua Luby, go into another one. world, like a credit rating agency.
Group Product Manager at Veson Nautical, RightShip calculates a ‘safety score’ for every
speaking at a webinar on Feb 2, “Keeping up Minimum steps vessel in the world, based on information it has
with contract complexity”. available, said Chris Saunders, chief product
To manage the complexity, we can start by
In one poll, understanding the minimum that charterers need officer with RightShip.
70 per cent to do, Mr Luby said. The factors
of maritime with the biggest
Charterers need, as minimum, to understand
stakeholders said impact on the
the market conditions and find appropriate
their workflow score are actual
vessels in it; ensure vessels meet the
has changed incidents,
organisation’s standards, including vetting
as a result of and port
requirements and GHG requirements; be able to
regulations or state control
generate a shortlist of acceptable vessels which
internal emission deficiencies,
can actually meet the cargo need; propose a
policies. The EU he said. It
‘market equivalent rate’ to the shipowner; and
Joshua Luby, Group Emission Trading also considers
Product Manager, Veson put together the contract.
Scheme adds a factors such as
Nautical (screenshot from Charterers would also rather do these tasks Chris Saunders, chief
webinar) major complexity product officer with the record of
themselves, not rely on their broker to do them,
to contracts, if the RightShip (screenshot from
the flag state
he said. webinar)
costs are being paid by charterers. you are using.
Then you need a work process which enables
Checks need to be made about whether a The data should be treated as an estimate
all of this to be done with the minimum number
voyage will impact a vessel’s CII rating. rather than fact. Charterers might determine that
of steps, he said. Software can assist here.
Other than emissions related complexity, there they will not sanction any vessel with a safety
Software could make it easier to check
is also a rise in “index linked” contract terms, score of 0/5; but for vessels with a score of
whether a vessel you are considering has already
where payment for shipping is linked to the 1/5 or 2/5, they put them under closer scrutiny
been approved by your organisation, or check
price of something else. These terms can often before chartering.
the vessel against your organisation’s standards,
have caps and floors, limiting how high or how RightShip also estimates a greenhouse gas
he said.
low the price can go. rating for all vessels, based on its assessment of
Software could provide “contextual decision
Checks need to be made about whether the vessel’s emissions performance, using data it
support,” providing data useful to your current
a certain trade line is becoming subject to has available.
decision, including data your company already
sanctions. RightShip does not ‘approve’ vessels, but its
has, or data available externally.
Every line of trade has its own complexities, vetting inspectors make recommendations to
Software could automatically record the
and many charterers handle multiple lines of their charterer client about a ship’s suitability
reasons the various decisions are being made, so
trade. for a certain voyage, based on the charterer’s
you can later find out why you chose a certain
When it comes to making calculations, in criteria, and all charterers can have different
vessel over another one.
the past it was often done with “back of napkin criteria.
If you later find out that another choice of
calculations”, or people having their own Over 40 per cent of RightShip’s vetting
vessel would have been better, you can refine
spreadsheets and making their own estimates, or services are provided for tankers, including oil,
your decision processes for future decisions.
just using knowledge they carried in their heads. gas and chemicals, Mr Saunders said, although
The webinar audience was asked, “which
But there are limits to this, particularly when all vessel types are covered. “Tanker vessels
of these elements do you feel you are lacking
one person is out of the office and someone else receive a safety score and GHG rating like any
the most today with day-to-day workflow?” 38
has to understand what they were doing, he said. other vessel.” TO
per cent said “data aggregation and accuracy,”
So charterers do their work with an increasing
38 per cent said “efficiency and process
number of digital systems. In an audience poll, You can watch the webinar online at https://
automation,” and 25 per cent said “contextual
69 per cent said that the number of different veson.com/webinar-recording/keeping-up-
decision support.”
chartering systems they need on a daily basis to with-contract-complexity/
S
till some extensions are given, fitted a system with one of the ‘first mover’ Digital to manage the cloud data.
mostly due to Covid and the BWTS suppliers, but this system did not
Ukraine war, says Tore Andersen, have an up to date approval from the US Reliability and muddy waters
executive VP sales and marketing Coastguard, he said.
A UV-based BTWS should be highly
with Norwegian BWTS supplier Optimarin. Another company had a system which reliable when you are operating in normal
The rush to fit systems before the deadline was proving very unreliable. “Eventually (clear) waters, Mr Andersen says. But some
has not proven to be as big as many expected. customers say, ‘sorry pal we need something understanding of how BWTS works is needed
“I believe we will drag on to 2025,” he said. which works every day,’” Mr Andersen said. if you are loading muddier ballast waters.
Many shipping companies were short of There is growing interest from regulators The Optimarin system analyses how clear
funds during the Covid pandemic, which made around the world in testing systems once they the water is, and for muddier water, it will
them reluctant to fit systems; but after the are in operation, Mr Andersen said. At the automatically reduce the water flow across the
pandemic they were so busy they did not want moment, most systems are never tested for lamp, so that there is more time for the UV
to take ships out of service to fit systems, he how well they work in operational use, only rays to kill the organisms.
says. So they are requesting extensions from tested at the point of commissioning. But there
If the water is too muddy for even a slower
their flag state and sometimes getting them. is nothing preventing stopping regulators and
flowrate to work, shipping companies can
Some other companies are seeking to avoid port state authorities doing checks, he said.
transfer the muddy water with clear seawater
the requirement to install systems, by limiting Sometimes systems were installed and once they are in open seas. This is known as
the vessel to one nation’s waters. Ships do not tested in a part of the world with very little ballast water exchange.
need to have systems if they only operate in marine life, so a not very challenging test for
Crew often do not have time to learn the
the waters of a single authority, or only in the the systems.
details about how BWTS works, so shipping
local waters of a single authority and on the The US is already getting quite strict about companies have been asking their suppliers to
high seas. testing and untreated ballast water, he said. make it as easy for them as possible, including
As an example, in Norway, a few general If your ship enters a US port with ballast in with software tools to assist onboard, Mr
cargo shipowners have chosen to trade only its tanks it is unable to treat, and needs to Andersen says.
in Norwegian waters, and therefore avoid the discharge in order to load cargo, there can be a
need to install BWTS, he said. $50,000 fine, he said.
About Optimarin
After all existing ships have been required Norway is considering how operational
to fit systems, all further BWTS will only be testing could be done, he said. “The South of Optimarin has been involved in making ballast
installed when the ship is being built, which Norway has mussels from the Mediterranean, water treatment systems for 30 years, and has
generally means that the shipyard decides and they didn’t come from an aeroplane. We sold 1500 systems so far. It provides a filter
which system to install. This means the should take care of our deep fjords.” and ultraviolet lamp-based system.
decision may be much more about price, Mr Today it has a revenue of NOK 400m per
Andersen said. year, and 45 employees. The components are
OptiLink
Optimarin is developing manufacturing manufactured by different parts suppliers, with
Optimarin has developed a digital support at least two different suppliers for each item.
partnerships with a number of Chinese system for its BWTS called OptiLink. The
suppliers, so its product can be made in China, Optimarin owns the “brain” of the system
data from sensors on the BWTS is sent to and the software. It produces its own UV
to better support the Asian shipbuilding cloud servers, and can be read and interpreted
market, he said. chambers and manifolds, and handles project
by Optimarin staff. The shipping company can management and logistics for installation and
also see it. repairs.
Does it work? The data can be used to populate forms It claims to have the first BWTS system in
Shipping companies are taking an increasing required by some port authorities, he said. the world with US Coastguard approval.
interest in how well the system is running, he One use of the data is to track where in Its system is designed to be easily installed
said, rather than just caring that it is legal to the world ships are seeing water with higher on all types of vessels. It can be delivered both
use. “Five years ago, an owner would say, ‘as sediment levels, which are harder to treat with as individual components, for adaptability in
long as there’s a stamp I’m happy’. Now they a UV-based BWTS, because the light cannot tight spaces, or mounted on a skid.
look at how many hours it is working.” penetrate the water so easily. This is often a
Its UV chamber should be expected to
Optimarin has seen a number of shipping problem in a harbour which is connected to a
last as long as the ship lasts for. A valve
companies asking Optimarin to replace their river, which can carry muddy water.
on a BWTS may need replacing after 5-10
existing systems, Mr Andersen said, without The software is usually upgraded every 5 years. A UV lamp and filter would normally
revealing details about the numbers, ship types years, which will require a ship visit, or can be need changing after 1000 hours or 2.5 years,
and original manufacturers. done ‘over the wire’ with OptiLink. whichever happens sooner, Mr Andersen said.
In one example, a shipping company had Optimarin works together with Kongsberg TO
20
April - May 2023 l TANKEROperator
AN ALTERNATIVE
BALLAST WATER ▪ NO FILTERS
▪ TREAT AT SEA
TREATMENT SYSTEM ▪ CONTROL COMPLIANCE
Meet us at
MTB Marine Asia
12-15 April, 2023
Seoul, Korea
new ocean
2023
Your Arena for
Ocean Solutions
opportunities.
And make a
new #PartnerShip
Buy tickets
Nor-Shipping 2023
Oslo, 6-9 June
22
April - May 2023 l TANKEROperator