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IMO2020 Related Claims Starting to Appear: Marine Insurer

Protection and indemnity club Gard has said it is beginning to deal with claims related to the International Maritime Organisation (IMO) 0.5% sulfur cap.

Although cap is still some months away, the club has said it has around 100 claims on its books that are linked to the sulfur rule change in bunker fuel.

The nature of disputes vary, according to the club’s chief executive Thore Roppestad, but include disputes between owners, charterers and bunker suppliers.

“We also have a couple of claims related to machinery damages due to the quality of fuel which is not compliant to the engines and we also have loss of hire incidents, which we will have more of due to scrubber malfunction and other issues”, the executive was quoted as saying by maritime news provider Lloyd’s List.
Machinery damages may start small but can end up big by becoming groundings or major accidents, he added.

Roppestad was participating in an industry panel event in Oslo. P&I clubs cover third party risks in shipping. Engine-related issues are covered by hull and machinery insurance.

Source: Ship & Bunker


Final preparations are underway for a 12-metre-long ship to set sail from Canada and attempt the world’s first transatlantic crossing without a crew.



Final preparations are underway for a 12-metre-long ship to set sail from Canada and attempt the world’s first transatlantic crossing without a crew.

The USV Maxlimer, an unmanned surface vessel, is bound for the south coast of England and will conduct deep sea surveys on the way, guided by a skipper in a control station in Britain. The voyage is expected to take about 35 days.

The ship was built by Sea-Kit International, which develops vessels for the maritime and research industries, for the Shell Ocean Discovery XPRIZE, a competition to autonomously survey the sea bed.It can launch and recover autonomous underwater vehicles but has the potential to operate in different roles with different cargo.”(It is) almost like a utility pick-up vehicle of the sea, it’s robust, it’s adaptable, it’s got a huge range,” said SEA-KIT International Managing Director Ben Simpson.

The vessel is operated by a hand-held remote control when in harbour and when at sea it can stream live data to the controller via multiple satellite links.

“What is now available through technology is very, very similar to what you have on the bridge of a ship and in many ways, I would argue, even more comprehensive,” said James Fanshawe, a director of SEA-KIT.”The controller here in this station can actually see all the way round on the horizon near real-time and in many ships it’s quite difficult to actually even see what’s behind you from the bridge of that ship,” said Fanshawe.


The company said it sees a future for unmanned vessels as they can remove humans from harm’s way.The team said ships that do not need to accommodate people also have significant economic and environmental benefits.”You don’t need a bridge, you don’t need a galley, you don’t need water supplies, you don’t need air conditioning and suddenly the size of that vessel becomes a fraction of the size of vessels currently being used offshore,” Simpson said.The combination of size and hybrid diesel-electric propulsion cuts fuel use by around 95 percent, the company said.




Wilhelmsen Ships Services and Airbus have begun shore-to-ship trials of a new parcel delivery drone in Singapore.

The two companies pointed out that this marks the first time drone technology has been deployed in real port conditions, to deliver a variety of small, time-critical maritime essentials to working vessels at anchorage.

The maiden shore-to-ship delivery flight was made to the Swire Pacific Offshore’s anchor handling tug supply vessel M/V Pacific Centurion, 1.5km from the shoreline of Singapore’s Marina South Pier, carrying 1.5kg of 3D printed consumables.

After depositing its cargo to the shipmaster, the Skyways unmanned air vehicle returned to its base, with the entire flight taking within ten minutes.

Though small drone delivery trials from tugboat to ship have been conducted before by a number of shipping companies and service providers, shore-to-ship delivery of this range and scope has never been explored, prior to this trial, Wilhelmsen Ships Services (WSS) noted.

During the trials, Airbus’ Skyways drone will lift off from the pier with a payload capability of up to 4kg, and navigate autonomously along pre-determined ‘aerial corridors’ to vessels as far as 3km from the coast.

“Less labor dependent than delivery via launch, autonomous unmanned aerial vehicles (UAVs) can potentially reduce delivery costs by up to 90% in some ports and have a smaller carbon footprint than launch boats,” WSS said.

“The now proven, seamless operation of drone deliveries from shore-to-ship, in one of the world’s busiest ports, proves the hard work, investment and faith we, and indeed our partners, placed in the Agency by Air drone delivery project over the past two years was not misplaced,” Marius Johansen, VP Commercial, Wilhelmsen Ships Agency, commented on the successful first delivery flight.

“We are thrilled to launch the first trial of its kind in the maritime world,” Airbus’ Skyways lead, Leo Jeoh, said.

“Today’s accomplishment is a culmination of months of intense preparation by our dedicated team, and the strong collaboration with our partner, as we pursue a new terrain in the maritime industry.”

The Maritime and Port Authority of Singapore (MPA) is facilitating the trial, which started in late November 2018, through the interim use of Marina South Pier as the launching and landing point for Airbus’ delivery drone. At the same time, MPA has designated anchorages for vessels to anchor off Marina South for the trial. The Civil Aviation Authority of Singapore is also working with Wilhelmsen and Airbus to ensure safety of the trials.




Singapore, Airbus Helicopters’ Skyways unmanned air vehicle has successfully completed its first flight demonstration at the National University of Singapore (NUS). The drone took off from its dedicated maintenance centre and landed on the roof of a specially designed parcel station where a parcel was automatically loaded via a robotic arm. Once successfully loaded with the parcel, the Skyways drone took off again and returned to land, demonstrating its automatic unloading capability.

This inaugural flight demonstration follows the launch of the experimental project with the Civil Aviation Authority of Singapore (CAAS) in February 2016 to develop an urban unmanned air system to address the safety, efficiency, and sustainability of the air delivery business in cities such as Singapore. The collaboration was subsequently extended in April 2017 with Singapore Post (SingPost) becoming the local logistics partner to the project.

Airbus Helicopters is the overall Skyways system architect and provider, contributing its capabilities in drone platforms as well as its concept of future parcel delivery. This concept involves systems and structures that allow drones to land, dock with secure structures, discharge or take on payloads, and then fly off to other destinations.

“Today’s flight demonstration paves the way positively to our local trial service launch in the coming months. It is the result of a very strong partnership among the stakeholders involved, especially the close guidance and confidence from the CAAS,” said Alain Flourens, Airbus Helicopters’ Executive Vice President of Engineering and Chief Technical Officer. “Safe and reliable urban air delivery is a reality not too distant into the future, and Airbus is certainly excited to be a forerunner in this endeavour.”

Airbus Helicopters is at an advanced stage of the Skyways project. The research and development phase is progressing well, with equipment and facilities installed at the NUS campus. Various tests are already underway, and the unmanned air system will be demonstrated in the university when the trial service commences this year. Campus students and staff will be able to make use of Skyways to have small parcels between 2kg and 4kg delivered to designated parcel stations within the campus, which is the size of 150 football fields.

“The Skyways project is an important innovation for the aviation industry. CAAS has been working closely with Airbus on the project, with an emphasis on co-developing systems and rules to ensure that such aircraft can operate in an urban environment safely and optimally. For Singapore, this project will help to develop innovative rules to support the development of the unmanned aircraft industry in Singapore. We are pleased with the good progress that Skyways is making and look forward to deepening our partnership with Airbus,” said Mr Kevin Shum, Director-General, CAAS.

“The urban logistics challenge is complex and an ecosystem of parcel lockers and autonomous vehicles will be a key piece to solving this puzzle,” said SingPost Group Chief Information Officer, Alex Tan. “The trial service that is taking off later this year will be an important step forward for SingPost in our efforts to develop solutions for the future logistics needs of Singapore and other cities of the world.”

“Project Skyways aligns with NUS’ vision of serving as a living lab to pilot innovative technologies and solutions. The NUS community is very excited to be the first in Singapore to experience this novel concept of parcel delivery by drones – an endeavour that could redefine urban logistics,” said NU Senior Deputy President and Provost, Professor Ho Teck Hua. “Students from the NUS Faculty of Engineering also have the opportunity to gain valuable experience as interns with Airbus for this project. We look forward to working closely with Airbus, CAAS and SingPost to carry out the campus-wide trial.”

An experimental project aimed at developing a safe and economically viable aerial unmanned parcel delivery system for use in dense urban environments, Skyways is one of a number of innovative Urban Air Mobility projects currently being researched at Airbus. These also include the Racer high-speed helicopter demonstrator, as well as the Vahana and CityAirbus autonomous flying vehicle concepts.

About Airbus
Airbus is a global leader in aeronautics, space and related services. In 2016 it generated revenues of €67 billion and employed a workforce of around 134,000. Airbus offers the most comprehensive range of passenger airliners from 100 to more than 600 seats and business aviation products. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world’s leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide.



Specialist insurer Beazley has created an innovative marine cyber insurance product to meet the rapidly developing needs of vessel owners and operators.

Should a cyber incident impact a vessel’s operational capabilities, Beazley Cyber Defence for Marine provides insurance for physical damage and loss of hire.

At the heart of the product are risk management services designed to reduce the likelihood of a cyber incident occurring and demonstrate compliance with forthcoming International Maritime Organization (IMO) guidelines. By 1st January 2021, vessel owners and operators must have incorporated measures to manage cyber risk into their existing risk management processes, which have traditionally focused on the physical risks to safe shipping operations.

There are three elements to the risk management services included within Beazley’s product: a self-assessment questionnaire; a cyber security workshop; and an on-board cyber survey.

The product has been launched at a time when operational technology has become more digitalised. New challenges have also arisen out of greater interconnectivity between shore-based and on-board systems, including those responsible for navigation, propulsion and power control. A breach of an operating system on board a vessel could, for example, lead to a grounding or collision.

The cover, which focuses on the operational technology of vessels, complements Beazley’s other marine products and existing cyber cover for information technology systems. It can be bought on a standalone basis or as part of a package.

Richard Young, Beazley’s head of hull and war, said: “Ship owners and operators are dealing with the increased threat of cyber-attack as well as the impact of human error and increasingly interlinked vessel operating technology and IT systems. Our preparation services reduce the risk of an incident occurring and the indemnity provides owners with clear cover and limits. Should the worst happen and a cyber incident impacts the smooth running of vessels, clients can be confident they are protected with affirmative cyber cover.”


BIMCO and INTERTANKO have jointly published Q&As addressing the contractual implications owners and charterers should keep in mind when chartering ships fitted with scrubbers. The Q&As highlight the key charter party clauses and concepts which should be reviewed for both time and voyage charter parties.

“We are pleased to have worked with BIMCO to provide advice and assistance for owners who have chosen this route to 2020 compliance. We will continue to develop the Q&As as experience of scrubber use develops,” said Michele White, General Counsel at INTERTANKO.

BIMCO’s Head of Contracts and Clauses, Grant Hunter, adds:

“We regularly receive questions about chartering issues relating to scrubber-fitted ships. These Q&As jointly produced with INTERTANKO will offer many useful answers as well as guidance.”

The Q&As consist of three parts. The first part deals with the implications of using scrubber-fitted ships under time charter parties, the second part deals with voyage charter parties and the third part addresses general considerations such as enforcement, fines and prohibition of open-loop scrubbers.

The main focus is on time charter parties as it is expected that this is where the use of a scrubber will have the greatest impact.

BIMCO and INTERTANKO have individually published clauses addressing the coming into force of MARPOL Annex VI Regulation 14 and 18 dealing with the reduction of sulphur oxide emissions from the current 3.50% m/m to 0.5% m/m. However, these clauses do not deal with the special operational, technical and commercial requirements of scrubbers installed on ships.

In early 2019, a BIMCO and INTERTANKO working group discussed whether there was a need for a dedicated “scrubber clause”. The working group concluded that, for the time being, no “scrubber clause” should be published. This is because the scrubber is, once installed, a “normal” piece of equipment and does not require any special status or special legal regime. The existing standard clauses (such as off-hire, drydocking and maintenance) will work in a time charter context in cases when the scrubber is not working.


The Q&A document is available to download from the BIMCO and INTERTANKO websites:

BIMCO: https://www.bimco.org/BIMCO-INTERTANKO-Scrubber-QA

INTERTANKO: https://www.intertanko.com/info-centre/intertanko-guidance



Frequently asked questions (FAQ)

Q1: What are the risks related to the introduction of AGM?
Q2: Why does the maritime industry have a role in managing AGM risks?
Q3: Which ports are infested by AGM and at what time of the year
do the AGM females lay their eggs?
Q4: Which countries regulate and inspect arriving vessels for AGM?
Q5: What are the criteria for classifying a vessel as high risk of AGM?
Q6: What is required from a vessel that is classified as high risk of AGM?
Q7: Are the regulating countries performing AGM inspections all year round?
Q8: What happens if AGM egg masses are detected during port inspections?
Q9: What are the county specific requirements?
United States of America (US)
New Zealand
Q10: How can the crew reduce the vessel’s risk of AGM infestation?
Q11: Are there other relevant sources of AGM information?

The Asian Gypsy Moth (AGM) is a
destructive forest pest known to
spread via ocean-going vessels in
international trade. Vessels calling
at certain ports in the Asia Pacific
between May and September
should therefore be inspected
and “certified free of AGM” prior
to departure, this to minimise the potential for regulatory action when
arriving in a country where the pest is not native.


AGM is an exotic pest with established populations only in countries in the Asia Pacific, such
as Russia, China, Korea, and Japan. If introduced in countries where it does not exist naturally,
it has the potential to seriously affect the country’s agricultural and forest resources. Adult
moths frequently lay their egg masses on vessels and shipping containers, and since these
egg clusters often survive to hatch at ports of call around the world, exclusion efforts are
considered a priority by many local port authorities.
Preventing the introduction and spread of AGM is a shared responsibility that relies on
cumulative efforts at origin, en route and at arrival in port. However, it is the responsibility of
the ship operator to meet all port entry requirements related to AGM and managing the risk
at its origin to ensure that a vessel is free of AGM upon departure from ports in the infested
areas is recognised as the key measure.


General knowledge about the AGM and each country’s requirements on how to manage
AGM risks will minimise the potential for regulatory action and delays during port entries.
The purpose of this FAQ is therefore to provide answers to some of the AGM related
questions raised by Gard’s Members and clients, to summarises the requirements set forth by
each of the regulating countries and provide links to relevant government websites. The FAQ
also contains guidelines for how the crew can carry out systematic self-inspections onboard
the vessel while en route.


The United States has detected and eradicated many AGM infestations in the past and in an AGM pest alert from April 2016, their Department of Agriculture describes the risks as

follows: “Large infestations of AGM can completely defoliate trees, leaving them weak and
more susceptible to disease or attack by other insects. If defoliation is repeated for 2 or
more years, it can lead to the death of large sections of forests, orchards, and landscaping.
Any introduction and establishment of AGM in the United States would pose a major threat
to the environment and the urban, suburban, and rural landscapes.”


Attracted to lights, the AGM females often lay their eggs on a vessel’s superstructure.
Vessels and cargo, such as containers, are therefore known to be involved in the artificial
spread of the pest by carrying the egg masses from one port to another. AGM egg
masses tolerate extremes in temperature and moisture, and the larvae can, under the
right conditions, hatch from an egg masse up to a year after it was attached to a vessel’s
structure. After hatching, the larvae travel great distances with the wind to find food and
may colonise in a new country if left unaddressed. It is therefore vital that the maritime
industry and relevant port authorities collaborate on measures to minimise the risk of AGM
incursions and implement procedures and policies emphasising vessel inspections.


AGM is found in Asia Pacific and there are high density populations in ports in East Russia,
Northeast China, Korea, and Japan. These AGM infested areas are also referred to as the
regulated areas or the risk areas.
The AGM flight season, when females lay their eggs, extends from May to September,
primarily from July to September in East Russia and northern Japan, from June to
September in Korea and China, from mid-May to mid-September in the remaining parts of
Japan depending on the specific port location. The AGM flight season is also referred to as
the specified risk period or the high-risk period in each of the regulated areas.


Countries where this pest is not native and that are currently known to regulate and inspect
arriving vessels for AGM are: the United States, Canada, Chile, Australia and New Zealand
(the regulating countries) and question Q9 below provides an overview of their relevant
requirements. However, authorities in other countries are also likely to be alert to the risk of
this invasive and destructive pest.


In general, and since the AGM larvae can hatch from egg masses up to a year after they
were laid/attached to the vessel, a vessel which has called at a port in a regulated area
during the specified risk period of the current or previous calendar year is considered high
risk of AGM. However, there is no uniform international definition of the regulated areas or
specified risk periods and we refer to Q9 and the country specific requirements for further


The regulating countries generally require all arriving vessels to declare whether they have
traded to ports within the regulated areas in the current or previous specified risk period and
the need for an inspection will be determined based on an assessment of the vessel’s overall
AGM risk. Most regulating countries also require vessels to be certified free of AGM. Please
see Q9 for details about each country’s entry requirements.


Vessels entering a regulating country may be subject to inspection at any time of the year
to verify freedom from AGM. However, as the potential for larvae to hatch from egg masses
attached to a vessel in port, and spread, depends on the local climatic conditions at a
specific port, each of the regulating countries may specify certain periods of the year with
heightened surveillance and more systematic inspection for AGM. Please see Q9 for details
about each country’s inspection procedures.


Actions imposed on the vessel depend on each country’s regulation, taking into account
climatic conditions at the time of entry as well as the degree of AGM infestation, and the
stage of development of the egg masses detected.
In some cases the vessel may be allowed to berth before being cleaned and handled with
insecticide spraying whilst alongside. In other cases, if the vessel’s itinerary indicate that the
presence of AGM life stages are possible and large amounts of egg masses that appear fresh
and viable for hatching are detected, the risk may be considered too high and the vessel can
be ordered to leave the country’s territorial waters immediately. In extreme cases, vessels
may be refused entry for up to two years during the AGM risk periods in that country (e.g.


Below is a summary of available information from each of the countries known to regulate
and inspect arriving vessels for AGM. Each country’s definition of AGM regulated areas
and specified risk periods as well as entry requirements and inspection procedures are





The case for autonomous ships keeps getting stronger as evidence of its commercial viability gathers pace, says One Sea eco-system lead Paivi Haikkola, who is in Singapore to attend Sea Asia 2019.

The main advantage relates to cost savings especially in fuel consumption with electricity powering more of the propulsion, she explained. The greater use of electricity as opposed to fuel also plays a role in reduced emissions as the maritime industry looks toward the global sulphur cap of 0.5% for marine fuels coming into effect next year.

Another push for autonomous shipping comes from the safety dimension, with the sensors on board to provide greater situational awareness, she added.

One Sea works with marine technology firms, ports, safety organisations, class societies and related companies to “further anything to do with maritime,” Haikkola explained. Founded in 2016 and led by innovation accelerator DIMECC (Digital, Internet, Materials & Engineering Co-Creation), One Sea is backed by Business Finland but its activities have repercussions far beyond its borders.

Research funding agency Business Finland had earlier financed Advanced Autonomous Waterborne Applications (AAWA) research.

There has been steady progress since One Sea’s founding, with Finnish legislators having authorised the DIMECC-managed Jaakonmeri Test Area off Finland’s west coast as the world’s first zone open for testing autonomous maritime traffic. Other areas internationally are being explored for similar tests.

Autonomous vessels may account for up to 17% of global shipping by 2040 according to a recent World Maritime University study but some sectors are likely to embrace it sooner than others.

“Short sea shipping where vessels move back and forth on the same route, road ferry types,” are candidates for early adoption, Haikkola said. Geographic areas catering to such marine traffic include northern Europe and parts of Asia.



Danish shipping authorities have adopted a Remotely Piloted Aircraft System (RPAS), which uses drones to detect emissions levels from ships.

The maritime emissions drone system, developed by the European Maritime Safety Agency (EMSA), is to be deployed along the Great Belt region where large tankers travel to and from the Baltic Sea. UAS Skeldar V-200 drones equipped with sulphur gas sensors, or “sniffers”, capable of detecting the sulphur emissions of individual vessels, will fly into ships’ exhaust plumes and transmit the resulting emissions data directly to the relevant authorities in Denmark. Where ships are found to have breached the EU’s maritime emissions regulations, the offence will be reported in THETIS-EU, EMSA’s port control information system.

The implementation of RPAS monitoring is expected to boost enforcement of the EU Sulphur Directive, which limits passenger vessels to fuels with a maximum sulphur content of 1.5 per cent. Since the Directive capped sulphur emissions from shipping, emissions around control regions have fallen by more than 50 per cent; with an average fuel compliance rate of 93 per cent. Enforcement of the Directive in Denmark is the duty of the Danish Environmental Protection Agency with the support of the Danish Maritime Authority, which shores up the agency’s work by conducting in-port ship inspections.

Along with the Fuel Sulphur Content sniffer system, the maritime emissions drone will be equipped with cameras capable of photographing vessels during daytime and at night; as well as an Automatic Identification System (AIS) receiver to enable the RPAS to identify and track offending ships. Authorities will be able to track the flight path of the drone in real time using EMSA’s RPAS data centre, which provides flight details, images, video and measurement data. EMSA has developed RPAS solutions to assist in maritime surveillance operations in a number of fields, including detection and prevention of illegal, unreported and unregulated fishing, drug trafficking and illegal immigration.




Reaping the full benefits of incident investigations is a complex challenge. DNV GL integrated human, organizational and technical dimensions, also known as its “HOT” approach, to help Carnival Corporation & plc develop a more efficient investigation process with outcomes that have greater impact.

DNV GL’s experience from a range of hazardous industries suggests that while most companies are relatively confident about their incident notification and lesson-sharing systems, they often struggle with the critical step in between: the effectiveness of their investigation process.

The maritime industry takes a predominantly reactive approach to high-frequency safety events and human error – action is typically taken after the damage has occurred, rather than proactively. The industry is still learning to understand that reducing occupational accidents has little or no effect on the number of major accidents with more complex causes and more severe consequences. Limiting the focus of attention to the symptoms of malfunctioning systems, or blaming someone who made a mistake, has little effect on the more underlying causes of an accident.

Identifying root causes of incidents

What is needed is a standardized, systematic and traceable investigation methodology that allows companies to identify the root causes of incidents and derive the necessary cultural changes. The incident investigation process should be embedded in a safety management system that unearths underlying causes, explaining both how and why processes in the safety management system succeed or fail. When this is clear, systemic measures for improvement can be identified.

Because of its sheer size and global reach, Carnival Corporation & plc (Carnival), the world’s largest leisure travel company, plays an important role in setting safety standards for the industry. This includes learning from near misses, incidents and accidents to prevent reoccurrence. When performing incident investigations, Carnival was facing the same challenges many in the maritime industry struggle with.

Richard Brilliant, Chief Audit Officer heading Carnival’s Risk Advisory & Assurance Services (RAAS), explains: “We understood that investigations are a powerful tool for learning and improving. Taking a critical look at our processes, we realized there were opportunities to reduce the amount of time it took to perform investigations, to make sure the content and format of reports were appropriate, and that we had a five-star organizational and process model that supported investigator competency and investigation quality.”

HOT dimensions of safety management

In pursuing its continuous improvement philosophy, Carnival launched an initiative to assess their incident investigation process against best practice, with an emphasis on identifying the root causes of incidents. Asked to assist Carnival in this process, DNV GL offered its “HOT” approach that highlights the interdependencies between the human (H), organizational (O) and technological (T) dimensions to optimize management performance and foster a mature organizational culture.

In this scheme, the management system assessment (O) is based on DNV GL’s International Sustainability Rating System (ISRS), which represents best practice in safety and sustainability management. It is designed to help customers understand how to manage complex and emerging risks and demonstrate to their stakeholders that their risks are under control. Incident investigation is included in the ISRS “Learning from Events” process.

DNV GL’s approach to safety culture assessment (H) includes a tool for digging into the underlying causes of identified weaknesses in safety performance. It reveals discrepancies between the intended processes of a safety management system and what actually happens on the work floor.

The combination of these two assessments helps organizations chart gaps between their governance on risk (risk management in theory) and the employee perception of risk (risk management in practice).