Lloyd’s Register (LR) and Inmarsat have announced an industry-first collaboration between a satellite communications provider and classification society to provide a connectivity solution that will address challenges experienced during remote surveys.

The new solution uses LR Remote, a specifically engineered application for remote inspection that enables crew members to livestream video, photos and audio from on board a ship to an LR technical specialist located elsewhere and will be empowered by Inmarsat’s Certified Application Provider (CAP) dedicated bandwidth service called Fleet Connect, available on the Fleet Xpress digital platform.

Fleet Connect provides an uninterrupted dedicated satellite link between vessels and seafarers, offering users function-specific bandwidth that is independent of business-critical vessel operations or crew communications. With no additional communication hardware required to run this application, the separation allows LR Remote to be enabled remotely without any intervention on-site.

Fleet Connect’s dedicated bandwidth is secure and reliable, meaning it can increase the potential of remote surveys on vessels where connectivity restraints have previously limited its use. This approach provides flexibility and 24/7 availability which enables surveyors to perform surveys efficiently using a blend of techniques, reducing the impact of unexpected situations on vessel operations, where surveyors and crew can quickly navigate problems using remote technology.

The new solution is another step towards digital class, opening opportunities for future uses of vessel data in demonstrating compliance and driving deeper insight into vessel efficiency and fleet optimisation. The solution is currently being piloted by LR and Inmarsat with clients specialising in gas carriers and bulker carriers.

“Connectivity is a significant enabler in the digitalisation of the maritime industry. Both Lloyd’s Register and Inmarsat have a mutual goal of unlocking the true potential of technology, thereby transforming remote compliance and enabling digital class. This collaboration ensures our vast certification expertise is accessible anywhere it is needed and demonstrates Lloyd’s Register’s commitment to our clients and to the wider industry in safely navigating shipping’s digital transformation,” said Mark Darley, LR Marine and Offshore Director.

“Inmarsat is delighted to work with Lloyd’s Register on this first-of-its-kind solution, which addresses a specific industry challenge,” said Alberto Perez, Director, Strategy and Business Development, Inmarsat Maritime. “With Fleet Connect’s dedicated connectivity running on the digital Fleet Xpress platform, we can assure high speed uninterrupted access so that remote surveyors are guaranteed a solution that is always available and always reliable when it is most important.”

This collaboration follows increased uptake in remote services throughout the COVID-19 pandemic as access to ships and assets became more challenging. LR has offered remote survey capability for many years, and now, 1 in 3 of the 30,000+ surveys LR performs each year is completed remotely. Subsequently, in May 2020, LR introduced a team of a global team of remote survey champions to support remote surveys within the marine and offshore industries.

The sea trial of the Linblad-owned expedition cruise ship National Geographic Resolution was successfully carried out over the weekend. The sea trial commenced Friday and the vessel returned to the shipyard, Ulstein Verft, on the morning of 6 September for the final construction phase before she goes for her first expedition cruise in Antarctica.

The sea trial tests have included various manoeuvres such as the 360-degree turning test and power tests, as well as emergency tests. Several companies and disciplines have been represented onboard during these days, working closely together with the Lindblad and Ulstein teams.

The National Geographic Resolution is the sister vessel to the National Geographic Endurance which was delivered in March 2020. The Resolution is planned for delivery in 2021, and is based on the CX104 design from Ulstein Design & Solutions.

The Endurance has carried out her first expeditions in Iceland this summer. According to the Captain, Aaron Wood, the vessel has behaved very well, she was incredibly strong and powerful. “Our guests have loved the ship, we have received very positive feedback. She is smooth, comfortable and has very little vibration.”

Kongsberg Digital’s vessel performance monitoring and optimisation service, COACH Solutions, has gained a new customer in United Heavy Lift (UHL) a heavy lift, breakbulk and project cargoes ship operator. UHL has signed up with COACH Solutions to continue its increased focus on digitalisation and reduce its environmental footprint.

“We are very happy to have signed up with COACH Solutions. We can monitor the actual performance of our vessels in our fleet with one, easy to implement, smart tool helping us decrease emissions and our environmental footprint. Additionally, our Captains receive valuable weather routing advice to take the most economical route, maximizing value and keeping our sensitive cargo safe,” stated Jan-Ove Hohl, General Manager Operations UHL.

With the high demands posed by securing sensitive cargo on state-of-the-art vessels, UHL and COACH Solutions are according to Kongsberg the perfect match to ensure that voyages are always optimal – both from a safety and optimisation point-of-view. Trading all over the world in sometimes challenging areas/waters, Coach Solutions is the ideal tool to support and monitor the vessels’ routes and assist in making decisions, both operational and commercial.

“We are very excited to have United Heavy Lift come onboard COACH Solutions. UHL are at the forefront of pushing digitalisation and decreasing carbon emissions. With their absolute expertise within the multipurpose/heavy lift industry, we look forward to collaborating with UHL, creating actionable insight for decisions with alerts, dashboards and reports helping them reduce emissions and gain efficiencies,” said Anders Bruun, CEO, COACH Solutions.

Newbuild spend for Vehicle Carriers (LCTCs / PCTCs / PCCs) broke the $3.2Bn level last week, following big volume orders from Eastern Pacific and Zodiac according to analyst VesselsValue (VV). An astonishing amount of money for a niche sector, exceeding the previous 6 years total combined. If options are included a staggering $4.4 billion has been agreed year to date.

Japanese shipyards have raised tariffs to $100 million for dual fuel LNG 7000CEUs, up by $10 million compared to last year. Chinese yards have followed but maintain a healthy discount quoting $88 million for an equivalent spec. Rapid steel price inflation combined with a post Covid supply vacuum, have skyrocketed newbuild prices following a barren period of low orders stretching back to 2016. All 40 Vehicle Carriers confirmed this year (56 including options) are dual-fuel LNG powered, forming a premier PCTC/LCTC asset class for an electrified car market.

Secondhand sales prices exploded in Q2 as operators battled to secure tonnage. Twenty two year old Asian King (6400 CEU, Dec 1998, Hyundai Heavy) sold for $23 million in June. A remarkable price when it is considered the Perseus Liberty (6,400 CEU, Jan 1999, Imabari) of very similar age and size sold for $13.8 million just two months earlier. Such price inflation has inevitably led to talks of a super cycle buoyed by a hot charter market. Firmed rates of $30,000 p/day for midsized 5000 CEUs, and $35,000 p/day for 6500 CEUs are earning (EBITDA) owners 8 to 10 million per annum after OPEX.

Values for a standard 5YO 6500 PCTC have spiked by 19% since April, tipping past $56 million from July as per VVs Fixed Aged Values data. The Viking Conquest (6700 CEU, Jan 2017, Jinling) sold for $45 mil on April 23rd (VV at $47.2 million day before sale, SS due Jan 2022). This seemed a high price at the time, not now.

An average number of sales have completed this year because owners are reluctant to let go of tonnage in a supply starved market, anticipating higher values. Some operators have chartered out their owned PCTCs enticed by lucrative, better earnings from a booming rate environment. Values for 10YO and 20YO PCTCs have shot up following some exceptionally high sold prices paid by buyers with few alternatives. Car Carrying assets are hot property, but next year could get hotter.

According to VV, current market conditions could last into 2024 based on an underlying lack of tonnage. Looking back to 2010, a healthy number of deliveries hit the water at 8% of the fleet excluding units less than 1000 CEU. However, by 2013 deliveries had more than halved stabilising around the low 20 vessel mark through to 2018. Before declining into single figures from 2019 prior to Covid. The current orderbook at 5% projects 4 deliveries in 2022, 10 in 2023, and 19 in 2024 These are low numbers for the next couple of years and 2022 looks particularly ominous with Covid continuing to weigh on supply. The foundations for short supply can be originated back to 2016 when orders averaged just 5 vessels per year until 2021. Owners have reacted this year with a respectable number going on a major shopping spree, but they are paying a high price for leaving it late.

VV believes that battery electric vehicles (BEV) trade growth has the potential to significantly impact voyage earnings for a major share of the current Car Carrying fleet, because electric cars weigh 20% more than conventional diesel/petrol equivalent models. This means less cars can be loaded onboard a typical PCTC whenever there is a high volume of BEV bookings, because the average density per car unit has increased, eating into deadweight capacity.

Essentially, PCTCs with low deck strengths will be disadvantaged as BEVs start to dominate over time, diminishing the earning opportunity of the asset. Whilst modern PCTCs and LCTCs equipped with stronger decks from 0.3t/m2 upwards, will hold more value due to the higher earnings opportunity derived from the better stowage factor.

Vessels trading to used car markets such as Africa are less exposed to this headwind. However, this is already an issue for ships operating on major East West liner routes delivering finished new cars to European and North American markets with long term ramifications for fleet development. Logically, demand for stronger decked ships will increase. Cargo miles will also receive a credit in the short to midterm, as more capacity is required to carry the same volume of seaborne cars around the world. This is assuming global demand remains relatively static, whilst BEVs continue to take share in sales and exports.

UK-based Harland & Wolff, the iconic shipyard with over 160 years of maritime and offshore engineering pedigree, has welcomed 13 new apprentices to its flagship Belfast site as part of its very first ‘Apprentice Induction Day’.

The scheme will run in line and with partnership from Northern Regional College and will see apprentices range from 17 – 28 years old, with a mixture of genders. The induction day gave the newest recruits a chance to tour the site as well as learn more about the company’s heritage and significance within national and international maritime sectors.

Steven Wright, General Manager at Harland & Wolff (Belfast), who started his career as a Harland & Wolff Apprentice commented, “We are extremely excited to be welcoming our first intake of apprentices to Belfast and to the Harland & Wolff Group. This is a great opportunity to pass on the vast skills, knowledge, and expertise of our current employees to the next generation of marine engineers and shipbuilders. As work ramps up throughout the yard and with significant investment towards on-site innovation, it is an incredibly exciting time to join the business. Infamously known as the birthplace of British shipbuilding and maritime excellence, our apprentices will not only gain valuable first-hand industry experience but will be able to continue our proud legacy – all whilst doing so with the backdrop of Samson and Goliath, our iconic gantry cranes.”

Harland & Wolff Apprenticeships are offered across three distinct functions, Trade, (welders, pipefitters, electricians, riggers, fabricators, etc) Technical, (engineers, naval architecture) and Business Support (sales, administration). Highlights of the unique training programme include practical on-the-job training, one to one mentoring alongside its experienced workforce, shipyard training facilities and the opportunity to earn while you learn.

Harland & Wolff is a multisite fabrication company, operating in the maritime and offshore industry through five markets: commercial, cruise and ferry, defence, oil & gas and renewables and six services: technical services, fabrication and construction, decommissioning, repair and maintenance, in-service support and conversion.

Its Belfast yard is one of Europe’s largest heavy engineering facilities, with deep water access, two of Europe’s largest drydocks, ample quayside and vast fabrication halls. As a result of the acquisition of Harland & Wolff (Appledore) in August 2020, the company has been able to capitalise on opportunities at both ends of the ship-repair and shipbuilding markets where this will be significant demand. In February 2021, the company acquired the assets of two Scottish based yards along the east and west coasts. Now known as Harland & Wolff (Methil) and Harland & Wolff (Arnish), these facilities will focus on fabrication work within the renewable, oil and gas and defence sectors.

Industry coalition SEA-LNG recognises significant growth in LNG-fuelled vessel orders in 2021. According to the latest report from Clarkson Research Services, LNG-fuelled vessel orders are approaching 30% of Gross Tonnage on order, representing a substantial part of shipping’s overall capacity when these vessels are delivered.

2021 has been a banner year for new LNG dual-fuel vessel construction contracts as reported by DNV and others. This trend is expected to continue. Major deep-sea sectors of the maritime industry are embracing LNG in efforts to reduce both local and global emissions, as LNG-fuelled vessels are one of the only options today that meet the reduced emissions required of environmental finance.

It is anticipated that over 90% of the new Pure Car and Truck Carriers (PCTC) that will enter the market in the coming years will be LNG dual fuel. Likewise, containership owners and operators are moving to LNG-fuelled tonnage, with orders for LNG-fuelled liners increasing five-fold since January 2020. Tankers and bulkers are also following suit, with increases of seven-fold and two-fold respectively over the 18-month period.

According to SEA-LNG, owners and operators of deep-sea vessels continue to recognise that LNG is available now, it is proven safe, reduces SOx and particulates to negligible levels, NOx by up to 85%, and GHG emissions by up to 23%. It can also achieve the IMO’s 2030 target of reducing CO2 emissions by 40% compared to 2008 by the use of bio-LNG products as a drop in fuel. This transition to bio-LNG, and eventually synthetic LNG, will enable the industry to meet the IMO 2050 targets. This process utilises established LNG infrastructure without investing in new and costly infrastructure around the globe for unproven fuels.

Peter Keller, Chairman of SEA-LNG said, “The deep-sea shipping industry understands that while LNG may not be the end game, it is the best starting point to get to net zero. It provides a very clear and achievable plan which starts today. We know the need is real and waiting is no longer an option. Recognition for this plan and the pathway forward is continually growing – borne out by the data from both Clarksons and DNV. And the acceleration in uptake of newbuilds fuelled by LNG demonstrates confidence in this pathway through its bio and synthetic cousins.”

Keller concluded, “The advantage of LNG is that both bio-LNG and synthetic LNG are ‘drop-in’ fuels. There are no compatibility issues, and any ratio combination of bio-LNG, synthetic and ‘conventional’ LNG can therefore be used to fuel a large proportion of the deep-sea merchant fleet. It has the potential to scale incrementally in line with the growing availability of biomass and renewable energy, while delivering significant GHG reductions, starting now.”