The Palau International Ship Registry’s (PISR), the world’s leading digital registry, has registered a significant rise in its ranking within the Paris Memorandum of Understanding (PMoU) Flag State performance list in the first half of 2022. As of 1 July 2022, PISR lies at the top third tier of the Grey List of flag states.

This rapid progress through the PMoU list is a result of PISR’s digital journey and organisation-wide dedicated to creating a leading registry for its customers and a sustainable registry for the industry. This was detailed in the annual report released at the 55th meeting of the Paris Memorandum of Understanding held on 14 June 2022.

This improvement marks an exceptional achievement for PISR – the transition process through the “rite of passage” in the regulatory lists of Paris and Tokyo has traditionally been much longer. Panos Kirnidis, CEO of the PISR stated that, “Our rate of progress is a testament to the combination of our own unique technology, our staff and the way they blend together. Within the last 5 years, PISR has achieved the most improvement within all the Flags in Paris MOU in record time, reaching Grey Listing in both the Paris and Tokyo MOUs.”

Celebrating 5 years at the helm of its European Head Office based in Greece, Kirnidis continued, “The past few years have been exceptionally challenging for owners and operators. They have had to keep up with tightening environmental regulations and requirements, followed by a pandemic which brought other issues as well as a crew change crisis which led to increased pressures and demands. At PISR, we were ready to help. Our unique digital solution was in place to meet the needs of our clients and this helped them in a commercially viable and sustainable way.”

A key area of focus for the registry was the development of its in-house Deficiency Prevention System (DPS), which supports owners and operators in avoiding financially damaging detentions while at the same time ensuring safer and more efficient voyages. Kirnidis added, “The DPS is our own internally-developed software system, combining technology and the human element, which has successfully led to considerably minimising fleet detentions. It is simple to use, highly effective and accessible via a desktop or even a smartphone. The DPS has directly impacted our exceptional rapid rise up the Grey List ranks, and the journey does not stop here. We are continuously re-assessing and enhancing our strategy, adding talent and technical expertise to our team. This makes us confident that we will see even further growth and improvement in our listing in the years to come.”

PISR has a firm understanding of what owners need and that is reliable and dependable services, information in real time, and a proactive registry which is always one step ahead; all of which sit at the core of PISR’s mission. This is clearly evidenced by its successful journey so far and in being recognised as one of the world’s fastest growing and most innovative ship registries. Kirnidis concluded by saying, “We are determined to rise to the White List and we already have the strategy in place to achieve it. The future is digital and PISR will pave the forward via its creative and unique technology solutions combined with its expert team. We will continue to grow as a flag and do our part as a registry to contribute to the sustainable future of this industry.”
Source: Palau International Ship Registry’s (PISR)


Explosive Ordinance Disposal Mobile Unit (EODMU) 3 Sailors embarked on the Nimitz-class aircraft carrier USS Abraham Lincoln (CVN 72), conducted a helicopter visit, board, search and seizure training aboard the Arleigh Burke-class guided-missile destroyer USS Dewey (DDG 105) in conjunction with Helicopter Sea Combat Squadron (HSC) 14 and Helicopter Maritime Strike Squadron (HSM) 71 to enhance maritime interdiction operations (MIO) skillsets.

“Maritime security and interdiction operations showcase the U.S. Navy’s capability and willingness to protect the lawful uses of the sea and deter illicit activity,” said Rear Adm. J.T. Anderson, commander, Carrier Strike Group (CSG) 3. “These operations are designed to enhance and sustain our proficiency while visibly countering malign influence, especially in vital areas of international maritime trade.”

EODMU 3 platoon 322 led the training after fast-roping onto Dewey’s flight deck to tactically secure the vessel, search for and respond to realistic improvised explosive devices (IEDs) found during MIOs.

“This type of multi-unit integration training is essential to ensure the successful execution of expeditionary maritime interdiction operations,” said Explosive Ordnance Disposal 1st Class Zach Dorfman.

“Together with HSC-14 and HSM-71, we rehearse these scenarios while deployed to 7th Fleet in order to refine our tactics, techniques, procedures and interoperability. This event was a culmination of the hard work that the team has put in over the last few months to demonstrate our ability to respond to any emergent threat in the region.”

Sailors attached to this unit are tasked with responding to reports of IEDs from any of the ship’s VBSS teams conducting MIOs in the ABECSG.

Abraham Lincoln Carrier Strike Group (ABECSG) is on a scheduled deployment in the U.S. 7th Fleet area of operations to enhance interoperability through alliances and partnerships while serving as a ready-response force in support of a free and open Indo-Pacific region.

 


Ports and Maritime Organization (PMO) lodged a complaint to the International Maritime Organization (IMO) over the seizure of its tanker in Greek waters

hief Executive of Iranian Ports and Maritime Organization (PMO) announced the strong protest of the country to the International Maritime Organization following the seizure of Iranian oil tanker by the Greek government.

While protesting against the illegal seizure of Iranian oil tanker by Greece which was done with the support of US government, Deputy Minister of Roads and Urban Development Ali Akbar Safaei said that the Greek government’s illegal action against Iranian ship is contrary to the goals and positions of the International Maritime Organization (IMO) as an international maritime authority.

Speaking with the Secretary-General of the IMO Kitack Lim, Safaei emphasized that this is not the first time that Iranian merchant ships and oil tankers have been directly or indirectly seized by the United States.

In recent years, a number of Iranian tankers have been seized by the United States and subsequently, Iranian Ports and Maritime Organization, on behalf of the Islamic Republic of Iran, lodged its complaint to the Legal Division of the International Maritime Organization (IMO), he continued.

Stating that the US actions are against the security in the seas as well as safe passage, the deputy roads minister stipulated, “Our ships and sailors have been under constant threat following harsh US sanctions. Therefore, we hope that IMO will pay special attention to this issue.”

As Iranian ship had requested emergency assistance from the Greek authorities, they, with the support of the United States, have seized the Iranian merchant and cargo ship and unloaded its cargo, he said, adding that such move is considered ‘an act of piracy’.

IMO Secretary-General, for his part, said that members of the International Maritime Organization are aware of Iran’s concern and protest against the recent events and “We are opposed to any discrimination or attack on maritime safety and security.”

Kitack Lim stated that he will bring up the issue in the upcoming meeting of IMO Assembly to find a solution.


Lloyd’s Register (“LR”), a global provider of maritime professional services, has acquired OneOcean, a leading supplier of voyage compliance, safety and environmental solutions, from Equistone Partners Europe (“Equistone”), a leading European mid-market private equity firm.

This move will accelerate LR’s ambitions to be the maritime industry’s trusted adviser for compliance, safety, performance and sustainability solutions, enabling clients to benefit from more efficient, cleaner & safer operations.

The pedigree of OneOcean will expand and considerably complement LR’s existing digital solutions, including fleet management (Hanseaticsoft) and vessel performance and optimisation (i4 Insight, C-MAP Commercial and Greensteam) portfolios.

OneOcean solutions are currently used by more than 16,000 vessels to support and optimise compliance, safety and environment, increasing transparency and simplifying complex regulations and tasks to enable teams to work more transparently for efficiency and enhanced decision making.

OneOcean was created by the merger of ChartCo, in which Equistone first invested in 2016, and Marine Press in 2019. With Equistone’s support, OneOcean has changed and grown rapidly, with four acquisitions, two divestments, a merger and a complete cultural change from product distributor to leading-edge software solutions provider.

LR Group CEO Nick Brown said: “The acquisition of OneOcean propels LR to the position of a leading digital player in the maritime industry enabling clients to make better commercial day-to-day decisions, reducing risks, improving operation efficiencies and critically meeting complex maritime regulatory requirements. We recognise that there has never been a more pressing need for specialist maritime advisers to guide and support clients through the fundamental changes they face, helping to define the route to compliance, operational efficiency, sustainability and competitive agility. With this acquisition, LR will be an even more valuable partner to our clients.”

Martin Taylor, CEO of OneOcean said: “We are really looking forward to working with Nick and his team to create a catalyst for change in an industry that needs to adapt as rapidly as when coal replaced sails. OneOcean has grown phenomenally over the last 20 years to be a clear market leader, now joining the LR family provides a fantastic home for the next chapter of growth. Together we have the scale, reputation and expertise – combining both digital and advisory capabilities – to meet the challenges faced by the industry. This is an exciting move for OneOcean, LR and the wider maritime community.”

Tim Swales, Partner at Equistone, said: “This business has undergone remarkable transformation and growth over the past six years, since we first invested in ChartCo and then supported the formation of OneOcean through the merger with Marine Press. Martin and his team have built a high-quality business that is in the vanguard of the marine industry’s shift towards digital solutions, and it has been a pleasure to work with them. In Lloyd’s Register we are confident we have found the right partner to support OneOcean through this next stage of its growth.”

The deal is subject to regulatory clearance and is expected to be complete by the end of the summer.


Incidents of piracy at sea may be at their lowest for 27 years according to theICC International Maritime Bureau, but the threats remain significant, demanding fresh data-driven approaches as well as security hardware

While the Indian Ocean – especially the coast of Somalia – was for years the world’s most dangerous area for piracy, now the Gulf of Guinea is where global anti-piracy focuses its attention. Even though incidents there last year were more than 60 per cent down on 2020, crews continue to face hostage-taking, kidnap, and violence. More than 70 seafarers were kidnapped over the year and last September, for example, pirates fired assault rifles, injured crew, and abducted an engineer from the MV Tampen that had anchored off Gabon. Although many attacks occur in in-shore waters, pirates in this region are also ready to venture far out to sea in search of quarry.

The Singapore Straits and waters around Indonesia and the Philippines also continue to witness acts of piracy. And, despite the global decline in piracy last year, incidents continued in South American waters and in anchorages off Haiti. Despite many collaborative initiatives, and programmes such as the EU Coordinated Maritime Presences for the Gulf of Guinea, it is unlikely piracy will be eradicated. The Straits of Malacca have been a hotpsot for piracy for decades, for example, and endemic poverty in coastal west Africa provides a pool of labour that criminal gangs exploit.

An increasing role for digital solutions

The continuing battle against piracy demands that shipping operators revise their approaches in an era of digital innovation. While most vessels already carry a wide array of systems for identification, navigation, cargo handling, and weather monitoring, they need to integrate faster alerting and a broader range of intelligence sources, providing greater insight and a more streamlined approach.

At the very least, vessels carrying ship security alert systems (SSAS), should conduct more thorough testing. These systems are required under the International Ship and Port Security code. They silently alert owners, flag states, and authorities when they are undergoing armed robbery or piracy. The hardware of a SSAS management solution onboard a vessel should automatically display alerts, tests, and position reports on a web-based SSAS management service, providing all the necessary data to mitigate risks in the event of a security event. Onboard hardware should automatically display alerts, tests, and position reports, providing customised test alert profiles and unlimited numbers of recipients.

Real-time risk assessments and maritime domain awareness

More far-reaching, however, is the need for operators to integrate intelligence on piracy risk into their monitoring technology so they have a solution providing insight before and during a voyage. Maritime domain awareness platforms increasingly fulfil this requirement, allowing users to track, monitor, and review the historical movements and ongoing progress of any ship. They provide complete situational awareness by monitoring a vessel from different perspectives, enabling operators to identify specific risks in what is effectively real time.

A domain awareness platform will combine the tracking systems most vessels already employ, but to far greater effect. Commercial vessels are obliged to operate AIS (automatic identification systems) and LRIT (long-range tracking and identification technology). AIS broadcasts the vessel’s ID and position on VHF (and satellite), and complies with the International Maritime Organisation’s Safety of Life at Sea Regulations (SOLAS). LRIT, a satellite-based technology, is an IMO-designated closed loop reporting system that flag states and port states employ for security and safety. A domain awareness platform combines these sources, plus Inmarsat positional data, to provide persistent, real-time tracking.

They can include real-time reports of piracy events, along with forecasts and risk assessments based on factors such as sea state and weather. Predicted sea state should be part of continuing piracy risk assessments, correlating wave height and weather with historical patterns of illegal behaviour in specific areas, enabling operators to re-route where necessary. Wave height is significant because pirates frequently use smaller vessels and such intelligence adds to the insight that operators can act on to reduce their exposure and improve crew safety.

The most effective maritime domain awareness platforms integrate these capabilities and provide operators with customisable intelligence about events in specific areas or time-frames, covering kidnapping, ransom, hijacking, and armed robbery, alongside terrorist attacks and other maritime crime. This reduces complexity and improves decision-making to enable faster responses.

An operator can monitor each vessel’s progress on its voyage, continuously monitoring speed and estimated time of arrival. But when the vessel deviates from its predicted path, the operator will automatically receive an alert, enabling them to check and collaborate with the relevant authorities in the event of a hijack or piracy attack. They can then mobilise assistance far more quickly and effectively, and minimise further risk.

More effective surveillance for all stakeholders

The entire world is becoming more data-driven, and the shipping industry should be no exception. Data and actionable intelligence are now essential to the business continuity of ship operators, to safety at sea, and ultimately, to competitive advantage. For governments, flag administrations, and maritime authorities concerned about security, maritime domain awareness solutions facilitate the safeguarding of waters and ensure the success of coastal surveillance operations.

Right across the shipping industry and its complex ecosystems of charterers, forwarders, operators and carriers, streamlined domain awareness platform technology should be a critical weapon in the battle against violence, kidnap, and robbery at sea. The current decline in piracy may only be a lull and should not be an excuse for complacency or inaction.


The 2022 installment of Indo-Pacific featured a record 736 exhibitors from around the world, the largest turnout in 20 years, and saw more than 25,000 visitors over three days.

Indo Pacific International Maritime Exposition

The Indo-Pacific International Maritime Exposition was held in Sydney, Australia, from May 10th – 12th, bringing together naval defence and commercial maritime organisations from around the world. This year, not only was it Propspeed’s first time attending the show but it is also believed to have been the largest defence industry event ever held in Australia.

The 2022 installment of Indo-Pacific featured a record 736 exhibitors from around the world, the largest turnout in 20 years, and saw more than 25,000 visitors over three days. Australia’s Minister for Defence and Minister for Defence Industry also visited the show.

Director’s comments

The enhancement of being part of the New Zealand brand was a value creator for us, as was the faultless support”

I have been going to marine shows all over the world for the last 10 years. I have never been at a better show, full stop. The quality of inquiry, exposure to large spending customers, and potential for new business were all available,” says Clint Jones, Commercial and Defence Sales Director, Propspeed.

The enhancement of being part of the New Zealand brand was a value creator for us, as was the faultless support from the entire team at NZTE pre, during, and post-show. We would do the next Indo-Pacific in a heartbeat and thank NZTE for organising the show and enabling our successful presence.”

Live demonstrations

Indo Pacific was also the first opportunity to conduct live demonstrations with the new Corrosion Protection Tank. Created in partnership with Marine Protection Systems, the tank is used to demonstrate the relationship and performance of various anodes and coatings.

The Propspeed team was joined by Brian Gatt from Marine Protection Systems, who ran daily demonstrations which were a big success with show attendees. Overall, this show was a big success for Propspeed, and it was incredibly lucky and grateful to have the support of NZTE who helped to make this possible.


Ten armed men have reportedly carried out a heist in the Gulf of Mexico, stealing equipment, tools, materials and other items from a Campeche Bay oil platform, that is owned by Pemex.

According to information, the armed group arrived in three vessels, forcing the hostages, including employees of Pemex and its contractor Evya, to load them with various goods they stole from the site.

The navy’s maritime traffic control center was notified of the crime about 20 minutes after the heist had ended, and luckily there were no reports of injuries.

Pemex has not yet reacted to reports of an assault, but local media inform that Pemex sources confirmed the incident.

Recently, another piracy attack took place against the OSV Crest Tarasco, belonging to the Protexa company, which carries out work in the Gulf of Mexico.

According to sources, a group of at least five heavily armed people illegally boarded the ship off the coast of Dos Bocas, Tabasco, obtaining loot consisting of tools, communication equipment and 35 autonomous breathing apparatus.

The attack took place when personnel warned of the presence of a boat with an outboard motor in the vicinity of the ship. The pirates boarded the ship carrying weapons, firing several shots into the air to intimidate the crew.

No crew was injured, although they pointed out that the insecurity that exists in the Gulf of Mexico is increasing, which is why fear grows for the integrity of the workers who work, not only on the boats , but also on offshore platforms.


Transport Canada confirms in Ship Safety Bulletin 11/2022 that COVID-19 vaccines approved in Canada continue to be available to foreign seafarers.  The bulletin provides links to websites that contain information on how a foreign seafarer can obtain a COVID-19 vaccine in Canada. Further, this bulletin refers shipping companies, agents and seafarers to Ship Safety Bulletin 06/2022 for guidelines respecting the mobility of asymptomatic, presumed non-Covid-19 carrying seafarers.


Clean tanker rates across Asia-Pacific reached multiyear highs June 16, and a record for some routes, as strong demand to lift naphtha cargoes from the Persian Gulf and deliver distillates to Africa and Australia drove up the daily earnings of owners, despite rising bunker prices.

Ships are ballasting to Asia from almost every corner of the world to push up their earnings. It is definitely positive for the owners to position their fleet in the East, one of the brokers said.

Owners of both Long Range I and II, or LR1s and LR2s, are raking in the moolah, earning around $55,000 daily at current freight on the benchmark Persian Gulf-Japan route, according to brokers’ estimates.

Earnings are even better for Medium Range, or MR, tankers around $60,000/day on the key Singapore-Australia route, prompting ships to ballast from even Latin America.

Clean tankers are enjoying hefty earnings at a time when the dirty tankers are bleeding, with VLCCs bearing daily losses of more than $20,000 on key Persian Gulf-East Asia routes. Fundamentals are totally different for VLCCs, where heavy supply with hardly any scrappings in recent years, is more than sufficient to meet the current demand, said a broker in Singapore.

A flurry of LR1 fixtures, including at least 10 since late-last week to move naphtha on the Middle East-North Asia routes, is pushing up rates for the last five successive trading days, gaining a whopping 145 Worldscale points during the period, according to S&P Global Commodity Insights data.

Owners are holding back their ships in anticipation of even further increase, said a chartering executive in North Asia.

“Charterers are not looking, but instead begging for LR1s,” said a broker in Copenhagen.

MR rates on the key South Korea-Australia and Persian Gulf-East Africa routes are in uncharted territory, at all-time highs, breaking the previous records set in April 2020, according to S&P Global data.

For LR1s, the latest deal on the Persian Gulf-Japan route has been done at w375, for loading in the last week of June, a 25-month high.

Sources pointed out that the ongoing rally is different from the previous one in March when rates increased due to the strong demand for gasoil from Europe and dislocation of tonnage due to the Russia-Ukraine war.

This time, the driver is naphtha and not all ships can load the product due to technical restrictions, they said. That a substantial chunk of all LR1s are controlled by a handful of companies such as Hafnia, has not helped matters for charterers, they added.
According to the shipping industry estimates, at the beginning of the week, close to 35 LR1s and LR2s each were projected to be available for loading in Persian Gulf and India during the next three weeks, but with several among them not suitable for naphtha loading and controlled by same owner, rates kept moving up.

The three week LR1 availability is below the average of 50 seen in the last few months, said a chartering source in Japan.

Supply has tightened because cargo count has increased. There have been more than 60 LR1 fixtures so far for loading in the first half of June compared with around 53 in the same period last month, according to the shipping industry estimates. The corresponding increase for LR2 is to 49 from 41.

Australia demand, China exports

As lockdowns eased in China and demand for gasoil and jet fuel picked up in Australia, shipments on MR tankers in North Asia started to rise significantly late-last month and freight tested fresh highs in June, sources said.

LRs, which were on a downturn, smelt an opportunity to fill in the supply gap in North Asia and so did MRs in Singapore, they said. While MRs from Singapore started to ballast to North Asia, LRs which brought in naphtha from the Persian Gulf, got backhaul cargoes and delayed their return to the Middle East, they added.

Finally, demand from Africa meant that rates for loading in India and Persian Gulf for delivery in the continent also rose as supply tightened.

It all conjured up into a scenario where rates for every segment and region pushed up to fresh highs for the year. “It’s a cascading effect, one leading to another,” said a source with an LR owner.

“The market has flipped, MRs in Persian Gulf are leading the charge while North Asia is trailing,” said a chartering executive with a global commodities trading company.

Distortions

In the process, the rise in rates is creating a distortion in the market in terms of unusually high differentials between various segments. A case in point is the discount that LR2s enjoy over LR1s on the key Persian Gulf-North Asia routes. It is currently at w75, according to S&P Global Commodity Insights compared with the usual w10-40.

As a result, it will be significantly cheaper to charter LR2s instead of LR1s but the differential is not of an extent where 55,000 mt cargoes can be loaded on LR2s as ‘partials’, said a chartering source.

Both the ship sizes have slightly different supply fundamentals and the position list is taking care of itself, said a source with an LR owner.

In contrast, the gap between LR1 and LR2 rates on Persian Gulf-Europe routes is small due to limited demand to move gasoil to the continent.
Source: Platts


Amid the gloom of spiralling energy costs, inflation, war, and the recent United Nations IPCC report which revealed that global carbon emissions are still rising, and governments are not following through on COP 26 assurances, shipping’s own endeavours to cut carbon emissions are in sharp focus. Congested ports, broken supply chains, and Covid-related hold-ups more generally, compound the concerns.

 

Yet the customers of many container lines – large and small – tell a different story. They can’t wait to speed up shipping’s decarbonisation journey and, what’s more, they say “We’ll pay for it!” Many are already engaged in a series of pilot projects. Others have set up new lobby groups, such as coZEV – Cargo Owners for Zero Emission Vessels – to further the cause by aggregating demand.

Singapore is the latest signatory to the Clydebank Declaration, agreed at COP 26, to which 23 countries have now pledged their commitment. The Clydebank Declaration aims to establish six green corridors where trailblazing shippers, carriers and fuel providers cooperate to cut emissions and try out new sources of ship energy. I see these six green corridors multiplying fast in the months ahead.

At LR, we believe that having the right metrics to measure is an essential component of the fuel transition process. So we’ve built a model – First Movers Framework – designed to assess all of the variables in the equation – well-to-wake emissions, fuel production, supply, transport and infrastructure, safety, regulation, technology readiness, financial implications, and societal response.

Putting this model into practice, we have also launched a new project in Asia – the Silk Alliance – based on container trade between Singapore and Hong Kong. It’s a fine example of the collaboration that is essential in the fuel transition process.

Our partners include MSC, Wärtsilä, Wan Hai Express Feeders, PIL, Keppel Offshore & Marine, Asian Development Bank etc. We expect other stakeholders to become involved – perhaps including one or more signatories to the Poseidon Principles initiative which now accounts for about 50% of global ship finance lending.

To me, two aspects of the Silk Alliance stand out. One, it’s not open-ended. It’s a 12-month project building on our First Movers Framework and a completed pilot study. And two, it’s not limited to new ships and fuels which are not yet available, we can address the challenge of retrofits and decarbonising existing vessels.

I believe that the container sector should be the primary focus for several reasons. In terms of monetary value, the world’s container trades are estimated to account for about 60% of global seaborne trade. Not only do carriers operate ships on specified routes with fixed schedules, but they also carry cargoes for many different customers.

No single shipper, therefore, bears the brunt of dramatically higher fuel costs. Analysts often use trainers as an example. A 20-foot container has capacity for about 3,000 boxes of trainers. For every additional $100 of freight charged for the box to cover more expensive fuel, that’s three cents per pair. Admittedly, most white goods are larger and take more space. But extra fuel costs would still mean only a few extra dollars.

It is logical to start small, with the Silk Alliance and green corridor projects. But these initiatives will spill over to other routes in other regions, and we can scale up fast. The world’s largest liner trade between Asia and Europe offers the most impact potential of any single route, for which the intra-Asia focus of the Silk Alliance provides a good foundation!

We must also manage the enthusiasm of shippers. They may wish to commit their products to ships running on zero-carbon ammonia, for example, but the technology does not yet exist. The first ammonia internal combustion engine is under development and not expected until late 2024 or 2025.

Having shipping’s customers onside is very encouraging, but the testing and assurance of new fuel technologies is essential and cannot be rushed. However, if such fuels were now available, shippers would be seeking RFPs – Request for Proposals – and committing significant volumes of cargo on five- or ten-year deals. That would, in turn, enable shipowners to consider switching to sustainable marine fuel, in the knowledge of a reliable payback.

But we must be realistic. Let’s not forget the regulatory process. Scrutiny of and compliance with competition rules, and approvals from the authorities that oversee them, can take a long time. The liner sector is no stranger to regulatory probes into its business models.

Yet, despite these challenges, I am optimistic. In the container business, the collaboration that is necessary to meet shipping’s unprecedented challenge is now even stronger than it was because we have many of our leading customers onside.
Source: Lloyd’s Register


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