July 2022 saw total container throughput (full and empty) up 3.7 per cent over July 2021 with a total of 285,561 TEU.

Year to date container volumes are up 3.7 per cent.

Total empty container movements were 16.2 per cent above July 2021.

Full overseas imports were up 3.9 per cent on July 2021 with strong trade flowing through post Shanghai lockdowns, whilst full container exports were down 5.7 per cent on July 2021, with miscellaneous manufactures, timber, barley, non-alcoholic beverages and fresh fruit below last year’s levels.

Full container transshipments came in at 11.1 per cent below July 2021.

Container trade for early August 2022 is tracking above the comparative month in 2021.

The news comes after container volumes at Australia’s largest container port have suffered since the beginning of this year.

In May 2022, the port saw total container throughput (full and empty) decline 6 per cent over the same period the previous year, with a total of 271,053 TEU.

Year-to-date container volumes were also down 1.9 per cent.

“The global supply chain continues to be challenged, and despite some evidence of consumer spending slowing due to inflationary pressures, there remains ongoing congestion at major hubs and inland networks,” the port wrote in its trade outlook.

Overflow of volume has been seen to neighbouring ports due to industrial action across parts of the USUK and Germany, the port wrote, in addition to weather issues, ongoing issues related to the Ukraine conflict, and the fact that ports are continuing to work through large volumes of backlog cargo.

“Trade volumes to Australia remain strong however congestion continues to be seen in the Oceania region due to severe weather and vessel bunching. Locally the supply chain remains resilient and we continue to monitor the situation ahead of peak season.”

Source: Shanghai lockdown

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


AAL Shipping (AAL) has undertaken a salvage operation to remove two tugs from the Mersey River in Devonport on the north-west coast of Tasmania that had been sunk by a cement carrier in January. Chosen for the job was the 31,000DWT 700 tonne heavy lift vessel, the AAL Melbourne, and involved the lifting of the tugs and their onward shipment along the East Coast to Brisbane. New South Wales based emergency response, salvage and environmental support specialist, United Salvage, engaged AAL to supply a vessel from its longstanding ‘Asia to Australia East Coast Liner Service’.

The first tug, the 420 tonne York Cove, was carefully pulled out of the Mersey on Sunday 7th August by the AAL Melbourne using her two port-mounted cranes working in tandem – the tug having had large holes cut into her hull to allow trapped water and sediment to drain. The second tug, the 455 tonne Campbell Cove, was recovered and loaded onto the AAL Melbourne a few days later. Both tugs were securely lashed to the weather deck of the ‘mega size’ vessel in preparation for their onward shipment to Brisbane and utilising specifically designed cradles loaded previously in Burnie.

Chris Yabsley, Chartering Manager at AAL Australia, commented, “United Salvage originally planned to use a floating crane and barge to recover these tugs. However, once we demonstrated that our A-Class vessel could not only recover the tugs but also transport them back up the East Coast for delivery to Brisbane, it was clear that AAL would be the perfect partner.”

Nicola Pacifico, Head of Transport Engineering at AAL, explained, “The recovery was carefully planned and modelled over several months and involved collaboration with several key stakeholders including United Salvage, TasPorts and cargo insurers. Even the Australia Maritime Safety Authority (AMSA) was required to confirm our calculations with our ship’s class (DNV). Lifting took time as the tugs weighed significantly more than expected, due to trapped water and fuel. Working throughout the evening on the second tug, the full weight of the tug stayed on our ship’s cranes overnight – awaiting the salvage company to pump out whatever was still trapped inside her.”

Yabsley added, “As the proposed position of our vessel during the salvage operation impacted the swing basin for critical port operations needed to keep Tasmanian supply chains open, we worked closely with the Harbour Master and Pilots to avoid impacting other port movements. The removal of the sunken tugs allows Devonport to return to normal operations.”

TasPorts CEO Anthony Donald estimated that more than 100 people worked on the project. “We not only had the significant challenge of tide and weather, but also the natural eddies in the area and potential marine pollution,” he said. “TasPorts worked closely with EPA Tasmania, which had representatives on site to advise on environmental management. The insurers and salvors, that have extensive international experience, say it was one of the most complex salvage activities they have ever undertaken. The salvage itself was slow and deliberate and reflects the detailed and collaborative planning that was required to complete the operation successfully.”

Frank Mueller, General Manager of AAL Australia, concluded: “This operation would not have been possible with either a container or ro-ro vessel, which is ironic as in this period of extended port and terminal congestion across Australia, those vessels are being prioritised over MPP and general cargo vessels for port entry slots and our resulting waiting times are severe and imbalanced. It not only showcases the versatility of our modern heavy lift fleet and engineering capability but also demonstrates AAL’s commitment to the Australian market as, unlike other operators, we have serviced the region nonstop for over 25 years ­– making AAL an easy and obvious choice for United Salvage.”

Source: https://cyprusshippingnews.com/2022/08/23/aal-recovers-400-tonne-sunken-tugs-from-the-mersey-river-in-tasmania/

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


  • Global chemical distributors belonging to International Chemical Trade Association have endorsed a safety guidance issued by organizations engaged in moving dangerous goods
  • A white paper, “Safety Guidance for Dangerous Goods Storage and Handling Facilities,” along with “Warehouse Checklist,” was issued last December by four global trade groups
  • ICTA promotes safe and sustainable chemical supply chains based on chemical distributors deep knowledge of chemicals and global markets

Global chemical traders have backed a safety guidance issued last December by a collective of organizations engaged in handling and moving dangerous goods.

Its latest endorser is International Chemical Trade Association (ICTA), which promotes safe and sustainable chemical supply chains. ICTA says it believes the chemical distribution industry has a key role in enabling chemistry to make a positive societal impact.

“Chemical supply chains rely on an interplay of different actors to deliver dangerous goods safely across the globe,” said Douglas Leech, chairman of the ICTA Transport & Security Committee.

Leech was quoted in a press release issued on August 18 by the International Cargo Handling Coordination Association (ICHCA), one of four global trade groups that issued the white paper, entitled “Safety Guidance for Dangerous Goods Storage and Handling Facilities.”

A pivotal element of the white paper is a warehouse checklist. A practical management tool, the checklist format is a significant addition to the other elements of the white paper.

Broken down into eight key functional areas of operation, the warehouse checklist’s 14 pages are designed to be comprehensive yet easily digestible as an everyday device for maintaining safety management vigilance.

“Chemical distributors cooperate closely with [logistics] and warehousing companies to make this happen. These guidelines will help them to jointly prevent incidents in their warehouses – keeping workers, neighbors, and the environment safe,” said Leech.

ICTA said that, aside from taking responsibility for their own operations, chemical distributors interact with their customers and suppliers to help them to work more safely and securely.

ICTA considers the white paper and the safety efforts that it represents as a step forward in guiding operators to improve their already high standards.

The safety guidance issuers were ICHCA, International Vessel Owners Dangerous Goods Association (IVODGA), National Cargo Bureau (NCB) and World Shipping Council (WSC). They are global trade organizations that drew on their combined expertise and experience in moving dangerous goods around the world to produce the guidance.

Richard Steele, ICHCA chief executive, welcomed the additional support from ICTA. “To make a real difference to the standards of safety in supply chains that feature hazardous materials, it is vital to reach all involved and create a critical mass of like-minded partners,” he said.

“The endorsement of our work by such an authoritative voice as ICTA is therefore decidedly welcome,” Steele said in the press release.

ICTA now joins a number of influential industry stakeholders that have endorsed the guidelines.

The early endorsers were Baltic and International Maritime Council (BIMCO), Bureau International des Containers (BIC), Container Owners Association (COA), Council on Safe Transportation of Hazardous Articles (COSTHA), Danish Shipping, International Chamber of Shipping (ICS), International Federation of Freight Forwarders Association (FIATA), International Group of P&I Clubs (IGP&I) and Through Transport Mutual Insurance Association Ltd (TT Club).

Both the “Dangerous Goods Warehousing White Paper” and the “Warehouse Checklist” are downloadable at  https://ichca.com/warehousing-safety-guidance

Established in 1952, ICHCA International is an independent, not-for-profit organization dedicated to improving the safety, productivity and efficiency of cargo handling and movement worldwide. It provides a focal point for informing, educating, lobbying and networking to improve knowledge and best practice across the cargo handling chain.

Source: https://www.portcalls.com/chemical-traders-back-guidance-moving-dangerous-goods/

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


As COVID-19-related guidance eases around the world, Royal Caribbean International has announced new protocols to more closely align with the broader travel industry. Starting Sept. 5, the cruise line will welcome all guests – unvaccinated and vaccinated – to sail

The new guidelines are:

  •  Unvaccinated guests can cruise with negative results from any commercially available test, including self-tests
  •  No testing is required for vaccinated guests sailing on cruises that are nine nights or less.
  • For all sailings, guests 5 years old and younger have no vaccine or testing requirements.
  • On sailings of 10-plus nights, guests – vaccinated or unvaccinated – must provide a negative test within three days of their sailing date.

Due to local regulations, sailings to or from Australia, Bermuda, Canada or Singapore still require guests to be vaccinated, the company said.

Source: https://www.cruiseindustrynews.com/cruise-news/28093-royal-caribbean-international-welcomes-all-guests-with-new-protocols.html

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


  • July throughput reached 935,345 TEUs, up 2.5% from previous record in July 2019
  • August imports forecast to begin easing from record highs with retailers cancelling orders as shoppers rein in pandemic spending
  • China factory orders just reported are slowing and top US importer Walmart cutting billions of dollars in orders to align inventory levels with expected demand

Port of Los Angeles saw a record throughput in July, with an estimated 935,345 twenty-foot equivalent units (TEUs) of containers, outpacing by 2.5% the previous record set in 2019 and setting the fifth monthly record in seven months in 2022.

The Western Hemisphere’s busiest port, however, expects August imports to begin easing as retailers cancel orders in the wake of shoppers’ pullback from freewheeling pandemic spending, its executive director Eugene Seroka said on August 17.

Los Angeles and its sister Port of Long Beach handle more imports from China than any other US ocean trade gateways, and their forecasts are considered an economic barometer.

“Remarkably, we continue to move record amounts of cargo while working down the backlog of ships almost 90%, a huge accomplishment by all of our partners,” Seroka said.

“Even with the current rail challenges, our marine terminals are more fluid than last year. That’s due in part to our Port Optimizer data portal that allows our stakeholders to see around corners and tackle problems before they arise,” he said in a news briefing.

Seroka noted that the Southern California supply chain landscape has improved, noting ships are now waiting for space at many other ports around the country.

“Our terminals have capacity,” Seroka added. “For cargo owners looking to re-chart their course, come to Los Angeles. We’re ready to help.”

Seroka was joined at the media briefing by Matt Schrap, chief executive of the Harbor Trucking Association. Schrap discussed the impact of AB5 on California truckers, how to attract and retain new drivers and the trucking industry’s transition to cleaner vehicles.

Transport workers went on strike in late July protesting against the Assembly Bill 5 (AB5) authored by former Assembly Member Lorena Gonzalez in 2019. Provisions in the bill require workers to satisfy a three-part test to be considered independent contractors.

While official July cargo volume will be available soon on the Port’s website, Seroka offered estimates on Wednesday that are expected to change only slightly when final.

July 2022 loaded imports reached an estimated 485,472 TEUs, an increase of 3.4% from the previous year and 8% higher than the previous five-year June average.

Loaded exports reached an estimated 103,497 TEUs, up 13% from the same period last year. Empty containers were estimated at 346,376 TEUs, increasing 5% from last year.

Seven months into 2022, the port has moved an estimated 6,349,248 TEUs, on pace with the record 10.7 million TEUs set last year, the busiest calendar year in its 115-year history. However, times are changing and the global economy is slowing.

“Imports will begin to ease somewhat. I expect to see that reflected in our August cargo numbers,” Reuters quoted Seroka in a report.

“China factory orders just reported were slowing and some US retailers continue to say they have elevated inventories,” he said. Incoming shipments at Los Angeles and Long Beach have been running more than 25% higher than before the pandemic in 2019.

Walmart, the No.1 US importer of containerized goods, said on Tuesday it had “cancelled billions of dollars in orders to help align inventory levels with expected demand.”

Seroka expects the port to handle fewer appliances, sporting goods and fixtures for bathrooms and kitchen remodels – as some of those purchases are not likely to be repeated in the near term.

“The heady days of growth in imports are quickly receding,” Hackett Associates founder Ben Hackett wrote in an August 2022 report prepared with the National Retail Federation (NRF), according to Reuters.

While Hackett and NRF expect second-half imports at major US container ports to decline versus 2021, they project that full-year 2022 imports will rise 2.1% to 29.7 million TEUs, which would be a record, Reuters said.

“The takeaway is that harder times are ahead, at least until mid-2023,” said Hackett, whose outlook calls for the import decline to deepen in 2023.

Source: https://www.portcalls.com/la-port-sees-record-july-as-imports-ease/

 

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


will be installed on Hapag-Lloyd’s 7,500-teu-Ningbo Express in Dubai in September. The ship saves between 10 % and 13% fuel and CO² emissions, depending on the sailing condition.

In total, there are plans to equip at least 86 ships with the new and more efficient propellers. At the same time, 36 vessels will receive a new, flow-optimised bulbous bow.

During the scheduled dry dock stays, a resistance-reducing coat of anti-fouling paint will also to be applied to all vessels on the part of the exterior hull beneath the waterline. Most of the measures will be carried out by 2025 and make a significant contribution to helping the company to achieve its climate targets.

“We aim to be climate-neutral by 2045. To reach this goal, we have set ourselves the interim target of reducing the CO2 intensity of our own ships by 30% already by 2030. To do so, we are investing in new future-proof ships while simultaneously focusing on making our existing fleet fit for the future. The fleet upgrade programme will boost the energy efficiency of the entire fleet,” said Dr. Maximilian Rothkopf, COO of Hapag-Lloyd.

The investment volume of the fleet upgrade programme will be in the three-digit million range. Hapag-Lloyd also placed a  $1.98bn order for 12 LNG-powered ships placed two years ago.

Source: https://www.seatrade-maritime.com/containers/hapag-lloyd-launches-fleet-upgrade-programme

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


The barge would receive ammonia that has been transported by ship as a liquid and then regasify it for the gas to be sent to an onshore pipeline. NYK would provide the project management and decide on the base design; NSY would work on hull design and layout; ClassNK verification of safety and guidelines; and IHI on the discharging process.

“The parties will promote R&D with the aim of becoming a solution for introducing ammonia fuel mixed combustion to coal-fired power plants that domestic electric power companies are currently working on,” a joint statement said.

Meanwhile Singapore’s Jurong Port has come together with , Mitsubishi Heavy Industries Asia Pacific (MHI-AP) and JERA Asia in inking a Memorandum of Understanding (MoU) to jointly explore establishing a 100% ammonia direct combustion power plant on Jurong Island.

MoU involves conducting a study into 60MW class gas turbine combined cycle plant fueled by 100% ammonia is planned to be set up to produce carbon-neutral electricity, as well as provide ship fuel for bunkering.

“We feel this MOU could help pave the way for encouraging the adoption of hydrogen in Singapore through aggregation of demand across multiple sectors, mainly the power sector and the maritime sector, thereby addressing the chicken-and-egg conundrum of infrastructure versus demand needs for maritime and domestic power generation,” Ooi Boon Hoe, Chief Executive Officer, Jurong Port.

Jurong Port is also a member of the Castor Initiative which is aiming to develop ammonia-fuelled vessels by the middle of the decade. The other members of the initiative are MISC, Lloyd’s Register (LR), Samsung Heavy Industries (SHI), MAN Energy Solutions, the Maritime and Port Authority of Singapore (MPA), and Yara International.

MISC plans to invest in an ammonia-fuelled vessel as part of the initiative while Singapore’s MPA aims to develop the ability to fuel such a vessel in two – three years.

As Seatrade Maritime News reported last week Singapore shipyard group PaxOcean Engineering and bunker vessel operator Hong Lam Marine have inked a Memorandum of Understanding (MoU) with Bureau Veritas (BV) to develop an ammonia bunker tanker design.

Some in the industry, however, have expressed concern over the safety of handling ammonia as marine fuel and its toxicity if there is a spill.

Source: https://www.seatrade-maritime.com/sustainability-green-technology/ammonia-fuel-gains-momentum-asia

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


Dubai Misdemeanour Court gave five men, the vessel’s Indian captain and four Pakistanis owning and representing shipping, trading and cargo companies, suspended sentences of one month, and fined each man AED100,000 ($27,200), for their role in an explosion on 7 July last year that could be heard 25km away.

It was found that they failed to carry out the correct safety procedures, when a container with 640 barrels of organic peroxide type C was left on the quay in the hot sun, Abu Dhabi-based English-language daily The National reported. Other containers with similar contents were also apparently involved in the incident.

The hazardous containers arrived onboard the Ocean Trader at Dubai’s Jebel Ali Port on 27 June from China, and were stored over an 11-day period, causing the contents of the barrels to heat up and spontaneously combust as they were being moved onto a vessel for further transit. During the transfer of the containers to the vessel, gas leaked from the barrels into the container, resulting in an explosive mixture, the court heard.

“The court found that organic compounds were allowed to decompose, which was a direct result of negligence by the cargo shipping company,” the publication said. “Decomposition led to an exothermic reaction and pressure from fumes built up, according to expert testimony to the court.”

The 1993-built Ocean Trader is owned by Sash Shipping based in Dubai according to the Equasis database and the vessel’s current status as in casualty or repair.

A government statement issued on July 8, 2021, the day after the original incident, said that casualties were avoided due to the “quick action of Jebel Ali Port’s officials who ordered an evacuation of the vessel and the immediate area when a leakage and smoke was seen.”

“Following the fire, Dubai Civil Defense, Jebel Ali Port, Dubai Police and other relevant authorities also took immediate measures to ensure operations across the Port, including Terminal 1 where the incident took place, continued normally without any interruption,” it said.

Despite the original claim that there were no injuries in the explosion, The National said Dubai Public Prosecution charged the five men, as well as five companies, with wrongfully causing the incident and subsequent damage, as well as the injury of five men. The companies were also fined $27,200.

Jebel Ali ranked as the world’s 11th-biggest port in 2020, with throughput of 13.5m teu, according to the World Shipping Council, a figure that rose to 13.7m teu in 2021.

Source: Dubai Misdemeanour Court

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


The maritime industry contributes nearly 940 million tons of CO2 emissions annually which accounts for nearly 2.5% of the world’s total CO2 emissions (Source: UK Research and Innovation)

 

But in less than 120 days from now, the IMO’s two new regulations – Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) – will apply to existing ships of 400 gt and above.

IMO’s intention is for these new regulations is to reduce the total greenhouse gas emissions from shipping operations by 50% by 2050 (against its 2008 emission levels) and carbon intensity of all ships by 40% by 2030.

The EEXI regulation is one of the most significant measures by the IMO to promote more environmentally friendly technologies and reduce the shipping industry’s carbon footprint. For CII, the annual rating ranging from A to E will be issued based on ratio of the total mass of CO2 emitted to the total transport work undertaken in each calendar year and if the rating is below ‘C’ corrective action must be taken immediately.

All of which raises interesting questions about the options available to ships of a certain age – let’s call them vintage assets. One engine manufacturer has warned that more than 80% of bulk carriers and container ships will be in the lowest C,D and E CII categories by 2030 if no action is taken, damaging their commercial viability.

Is scrapping the only commercially feasible option for vintage assets which fall foul of the new regulations? Taking a holistic approach, looking at the vessel’s full life cycle assessment, is there a case for extending the life of older vessels, rather than consigning them to the scrap heap?

If the purpose of EEXI and CII is to save the environment, phasing out vintage assets could be unintentionally counter-productive and lead to greater environmental damage.

How so?
Analysis clearly shows that newbuildings are responsible for significant energy consumption/GHG emissions when taking into account the transportation and handling of the raw materials used in steel production.

In their academic paper on “Assessing Environmental Impacts of Ships from a Life Cycle Perspective” joint authors Stefanos Chatzinkolaou and Nikolaos P. Ventikos state: “The Life Cycle Assessment (LCA) of building, operation and recycling is studied for a panamax tanker and impact on human health (climate change) and ecosystem quality is estimated. The results show that the “ship building has 40% impact and steel production process under the scope of ship building alone responsible for nearly 90% of the total CO2 emissions.”

For a universal approach – also now referred to as the Circular Economy – a life cycle assessment/material balance analysis of the ship’s operational life must also be evaluated.

Circular economies preserve value in the form of energy, labour, and materials with the maximum value extracted from resources before they become waste. It is a framework to tackle not only climate change but also biodiversity loss and pollution.

There are three simple ways shipping can become more Circular.

The first is to consume less – which ensures better use of resources. The second is to consume better. The third is to create systemic change.
And change is already happening. There are other methods to reduce EEXI including retrofitting clean technologies, waste heat recovery systems, air lubrication technology, wind-assisted propulsion, to name a few.

Clearly, questions remain over the commercial viability of retrofitting expensive energy-saving equipment on older vessels. It is clear from the evidence that repairing and extending the life of (mid-sized, vintage) ships is more environmentally friendly than building a new one. The sooner this ‘uncomfortable truth’ is accepted, the better.
Source: GMS https://www.gmsinc.net/article/extending-the-life-of-a-ship-bad-for-the-environment?utm_source=social-media&utm_medium=article&utm_campaign=social-media-article-extending-life-of-ship

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


As it becomes increasingly clear that greenhouse-gas emissions must be drastically cut over the next 30 years in order to save the planet’s climate as we know it,1 there is a growing realisation that the transition to net zero needs transformational change from all industries. And shipping, which is responsible for nearly 3% of man-made CO2 emissions,2 is no exception.

 

The maritime transportation sector, which has played a pivotal role in keeping world trade alive for years, is now at an inflection point. It is coping simultaneously with surging demand and strained supply chains,3 as well as soaring energy prices,4 even as it seeks to make decarbonisation a priority. However, given the scale and urgency of the problem, lowering emissions will require an all-out effort from industry players as well as proactive regulators and governments supporting the decarbonisation agenda.

At the same time, the journey to a green future will also not come cheap.5 Crucially, banks can aid the shipping industry’s decarbonisation efforts by financing investments in green technologies while linking lending decisions to a company’s environmental impact, and supporting clients with risk management solutions that enable them to better align their operations with the transition to net zero, says Gaurav Moolwaney, Regional Head of Shipping Finance, Europe and Americas, and AME, Standard Chartered.

What are banks doing and is it enough?
In the age of digitalisation, shipping companies have access to mountains of data that can be used not just to improve day-to-day voyage efficiency and predict repair cycles but also boost safety. They can also leverage data insights to explore and adopt alternative fuels, and efficiently deploy capital towards interim and long-term decarbonisation solutions.6

Similarly, banks are using analytical tools to assess climate considerations and measure sustainability data from various sources, including borrowers, in order to make better lending decisions. This is key because commercial banks are the largest source of financing for the shipping industry.7 That means lenders have the power to catalyse change across the industry, including by closely tracking borrowers’ scope-3 emissions,8 which encompass a wide range of indirect emissions that occur across a company’s value chain.

Furthermore, many banks are working towards ensuring their lending portfolios have net-zero emissions by 20509 as investors begin to measure the performance of financial institutions by the yardstick of scope 3 emissions.10 This is particularly relevant to the shipping industry, whose operations touch a range of upstream and downstream functions,11 and whose long asset lifespans and high dependence on fossil fuels means decarbonising the sector will be a capital-intensive exercise.

For instance, shipping companies will need financing to acquire new vessels powered by alternative fuels. Then there are the cost spreads between fossil fuels and alternatives, such as hydrogen and ammonia, which are high, and green fuels are expected to remain expensive for a long time.

Additionally, any comprehensive shift towards the use of greener fuels will not only be expensive, but also complicated. It requires manufacturers to design new engines; port operators and fuel suppliers to build refuelling infrastructure; and energy companies to invest heavily in producing renewables at capacity.

Will banks play an outsized role in more than just funding the future?
According to Standard Chartered estimates, investments of up to US$1.5 trillion in technology, operations and fuels are needed to halve shipping’s carbon emissions by 2050, with about 87% of that likely to be used towards land-based infrastructure.12 Other predictions suggest the industry may need to foot a much bigger bill – as high as US$2.4 trillion to achieve net-zero emissions by 2050.13
Given the extent of capital required, experts agree that the pace at which the shipping industry moves towards a net-zero future will be dictated by the financial sector. For their part, banks have acknowledged the enormity of the role they play in decarbonising shipping by joining hands with the industry in 2019 to help bring the IMO’s goals to fruition.
This led to the creation of the Poseidon Principles – a framework to assess and integrate climate considerations into banks’ lending decisions in a bid to encourage and support decarbonisation in the shipping industry.14 And signatory banks are expected to gradually align their portfolio towards companies achieving a 50% reduction in emissions by 2050 in line with IMO2050.

Industry leaders concur that the Poseidon Principles have already started to positively influence lending decisions and encourage shipowners to adopt greener practices to secure funding.

These considerations clearly demonstrate that the push to decarbonise shipping must be a collaborative effort that combines commitment and direction from industry leaders with regulatory consistency and clarity, and monetary support from banks and financial institutions.

Gaurav Moolwaney concluded, “We believe it is absolutely critical that our clients are thinking about decarbonisation. Of course, nobody has the perfect solution today, but…if they can present us with a plan we can factor that into our lending decisions, and thus play an active role in helping to produce an ideal outcome.”
Source: Standard Chartered

 

CREWEXPRESS STCW REST HOURS SOFTWARE - Paris and Tokyo MoU have announced that they will jointly launch a new Concentrated Inspection Campaign (CIC) on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) from 1st September 2022 to 30th November 2022


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SHIP IP LTD
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Phone ( +359) 24929284
E-mail: sales(at)shipip.com

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