The new agreement will look at harnessing the capabilities of the University’s recently opened £3.2 million Cyber-SHIP Lab. This facility is dedicated to simulating and understanding maritime cyber threats and facilitating future secure maritime operations through cyber resilience research, tools, and training. The facility forms part of the University’s Marine Navigation Centre, which includes a physical ship’s bridge used to simulate attacks and test equipment.
BMT was a founding industry supporter of the Cyber-SHIP Lab when it was launched in 2019, based on the firm belief that through the development of these new tools and lab, the UK can become a leading power in maritime cyber security.
Jake Rigby, research and development lead, BMT, said: “BMT is delighted to be working with the University of Plymouth in helping the UK drive the highest possible standards in maritime security. With this knowledge and experience in place, the UK can then offer the benefits of the insights, operational practices and training to the global shipping and marine community. Through combining our expertise and our knowledge, we are confident great strides will be made in enhancing security and cyber protection across maritime.”
Professor Kevin Jones, executive dean of science and engineering at the University and principal investigator on the Cyber-SHIP Lab project, added: “With our ever-increasing dependence on the global maritime sector, ensuring ships and port operations are cyber secure has never been more critical. Advances in cyber technology, and the emergence of new threats, mean this is a constantly evolving area that needs an innovative and joined-up approach. The partnership between the University and BMT is a perfect example of that, uniting our collective expertise in both identifying potential issues and solutions and finding the means for them to be applied in maritime engineering and design.”
The MoU was signed by professor Judith Petts CBE, vice-chancellor of the University of Plymouth, and Sarah Kenny, CEO of BMT, and will kick-start a range of collaboration opportunities from student engagement and employee development to collaborative research and joint consultancy.
When it comes to cyber-attacks, shipowners should assume the worst and expect to be hit at some point.
These concerns are backed by a report from March 2022 showing that shipping companies pay an average US$3.1 million in cybersecurity ransom payments per incident due to gaps in their risk management. Attacks on the maritime industry range from phishing and ransomware to targeting infrastructure or ship systems for financial or political reasons.
More than half of shipowners spend less than $100,000 a year on cybersecurity management, which the organisations behind the report – maritime consultancy firm Thetius, law firm HFW and shipping cybersecurity company CyberOwl – believe isn’t enough.
Additionally, around two-thirds of respondents aren’t sure whether their insurance covers cyber-attacks. Other eye- raising results show that only 55% of industry suppliers are asked by shipowners to prove they have cyber-risk management procedures in place, while 25% of seafarers don’t know what’s expected of them if involved in a cyber incident.
The big worry is that shipping companies haven’t invested enough time or money to shore up their defences, leaving them exposed to attack and short of meeting IMO 2021, the International Maritime Organization’s requirements for cyber-risk management.
Cyber-attacks and vessel safety
Failing to establish safeguards against any cyber risks to vessels, personnel and the marine environment can prove damaging to shipping companies from an operational perspective.
The rapid pace of maritime digitalisation provides shipowners huge benefits in terms of improved efficiency, safety and asset tracking. Such technology has been around for some time and is now an established part of vessel operation.
One example can be found in navigation. Paper charts have long been replaced with digital alternatives on most vessels, to the point where traditional navigation techniques are rarely, if ever, practised by seafarers. Today, some shipowners have gone further and implemented shore-based dynamic route management, to fully optimise vessel efficiency and safety.
A cyber-attack on one of these onboard systems could have dramatic implications on vessel safety. If navigation controls are altered, or charts deleted, it can become very difficult for a crew to safely operate a vessel. The impact could be even more dramatic for digital systems connected to engines or ballast pumps.
Since January 2021, cyber threats have been included in the ISM Code’s risk management protocols. Under the updated protocol, cyber risks must now feature in a vessel’s Safety Management Systems.
This reform means that shipowners must identify and create an inventory for their critical technology and data assets (both hardware and software, IT and operational technology) on board their vessels and linked to their onshore systems. They should also assess the cyber risks to those assets and establish specific risk-mitigation measures to manage and guard against any threats. Additionally, any cyber-security policies must ensure that crewmembers receive the appropriate training to understand the threats, and that the roles and responsibilities for addressing those risks are clearly defined.
A properly formulated Safety Management System should cover worst-case measures to ensure that a vessel and its crew remain safe should a system fail, which may include hard-copy back-ups or manual overrides. It should also include regular audits to ensure new risks are identified, and a commitment to continuous improvement.
It is important that shipowners work proactively to ensure that their Safety Management Systems are fully up to date and fit for purpose, yet it can be a complex task. Such systems are inherently technical, and an owner may need outside support to properly evaluate and understand vulnerabilities.
West’s Loss Prevention department can provide vessel and issue specific guidance and support in improving Safety Management Systems – both to meet regulations and to improve the safety of a vessel. Our expert team is ready to give practical advice to any Member, and can help ensure a vessel stays safe and P&I cover remains valid.
Major commercial risks
Vessel safety is not the only cyber risk shipowners face. Phishing attacks, where cyber-criminals posing as legitimate institutions send individuals or companies emails to obtain sensitive information, are perhaps the biggest concern for most owners.
Cyber whaling, a particularly dangerous variation of phishing, is becoming more common. In these attacks, emails target a group of senior executives or digital gatekeepers using personal vocabulary and information to trick them into cooperating. Messages are usually from fake email accounts that look almost identical to a genuine sender’s address.
The criminals behind cyber whaling aim to socially engineer their victims, to trick them into making financial transfers or sharing confidential material. Anyone duped into doing either usually has no idea until it’s too late – which would be incredibly disruptive to shipowners’ shore- side and sea-based operations.
An attacker could gain access to the organisation’s computer system, forcing the shipowner to take the entire office function offline. In this instance, the company would have to painstakingly organise hundreds of paper, rather than electronic, records and forms.
The ramifications can extend to ships, with vessels stuck at ports or unable to secure bunkers. Payment, logistics and planning systems could be completely decimated, while compliance paperwork may force some owners to temporarily cease some trades.
How to plan for cyber-attacks
Some of the principles inherent in the ISM Code can guide a shipowner across other parts of their business. IT and digital teams should regularly identify and conduct an audit of all potential cyber threats, while staff need training to spot the warning signs and understand the systems in place for blocking hackers.
Staff within the organisation should never share any personal information in an open, online public forum. For example, an attacker could verify an employee’s identity by using their birthday, after sourcing that information from the victim’s LinkedIn profile.
Given that even the best defences can be breached, owners should also plan to mitigate the impact of any successful attack. This may include maintaining back-up systems and servers where appropriate to keep office functions online if under attack.
It is also important to protect against worst-case scenarios through proper, specialist insurance. Where cyber risks onboard a vessel are covered by P&I, other commercial risks are not – and must be insured separately.
West is proud to have partnered with Astaara, the only specialist marine cyber insurer in the market. Astaara can cover a client’s entire business, including shoreside operations, and provides unique business interruption cover on a tailored basis.
Astaara also offers marine cyber-risk management consultancy services, working with clients to measure and improve their cyber-risk profile through a five-stage process. By building a comprehensive picture of an organisation’s cyber enterprise risk management and increasing resilience, they can dramatically improve security. The process also covers business continuity planning to ensure rapid recovery should an event occur.
Ultimately, shipowners are responsible for building and maintaining strong defences to deter or prevent cyber incidents. Building resilience is critical, both for vessels and backroom functions. Yet, even the most secure systems are vulnerable – and shipowners must work closely with insurers, including their P&I insurer, to ensure business continuity if the worst were to happen.
Source: West of England, by Bill Egerton, Chief Cyber Officer (Astaara)
The aviation safety sector is the study and practice of managing aviation risks. It is a solid concentration of regulations, legal documents, investigations of accidents and near-miss aviation incidents. On top of them lie lessons learned and shared knowledge; reports, facts and stats forming a cognitive super vitamin, that the aviation community uses to keep their business healthy and safe.
The above concept is successful. People trust the aviation sector and consider it the safest transportation. Sadly, when it comes to cybersecurity the community feels quite exposed and vulnerable. Stats that are not available, dark corners, and a lack of lessons learned from cyber incidents are some of the aspects that blur its reputation. Wouldn’t it be better if businesses and organizations adopt the successful “how-to” of the aviation safety sector to increase their cybersecurity level and the confidence of the community?
The idea behind
The recent cyber attacks renewed the interest of the industry, academia, and the US government in a form of a Board that could investigate cyber incidents. In the spring of 2021, a workshop was organized on creating a cyber incident investigative capacity modeled on the National Transportation Safety Board (NTSB). The NTSB is considered the most robust set of aviation safety programs. It acts as an independent Federal agency charged by Congress with investigating aviation accidents and major transportation incidents. NTSB investigates the causes and issues safety recommendations to prevent future disasters.
The workshop examined the feasibility of whether aviation safety procedures can be adopted by the cybersecurity sector to improve its posture. The output was a report where key findings were highlighted, research questions were recorded and a road map of recommendations was proposed. The report concluded that the cybersecurity industry does not have processes or authoritative and independent investigations whose focus is publishing lessons learned from cyber incidents and enabling improvements.
Policymakers in the cybersecurity industry have urged for an agency that will investigate cyber attacks and incidents, identify leaks and gaps in security controls and inform the community. From that perspective, the NTSB transportation safety paradigm is used frequently as an analogy, since it provides body, maturity, and substance to that concept.
The “cyber NTSB” conceptual approach
The workshop involved 70 expert minds who worked over four months on the concept of creating a “Cyber NTSB”, an idea born back in 1991. The problem handed over to the participants was the same as in the NSF 2014 Report: “A critical problem in cyber security is a lack of reliable, consistently reported data about security incidents. The lack of data makes it difficult for others to learn from these attacks, and is leading to misplaced priorities”.
The workshop was predicated on assumptions, all of which hold that the present cybersecurity safety system is insufficient and should be adjusted to match what the aviation safety industry performs. What the participants observed was that cybersecurity lacks information, knowledge and wisdom, not data; these are abundant.
Key findings of the workshop
At first, the workshop examined how a Board can be alerted about incidents to determine whether they merit investigation. Unlike in aviation, cyber incidents are not kinetic like air crashes and are wrapped with secrecy, as companies fear liability and damaged brand reputation, making their discovery difficult. The workshop’s findings were that:
The Board can use existing reporting mechanisms effectively by filling the gaps between them.
Cybersecurity and IT lack incentives for voluntary reporting, although it is clarified that information sharing does not violate antitrust laws.
The awareness of the Board can be enhanced by individual reporting, although it may be considered as a company’s weakness and low investment in security.
Having an adequate reporting system present, the next question arose: which incidents require investigation? The workshop highlighted that there should be quantitative and qualitative criteria that will trigger the investigation procedure. Furthermore, it would be extremely useful if the Board could investigate not only incidents but trends as well. If it could track the cybersecurity ecosystem, identify common failures and trends in attack patterns, and associate best defense practices against these trends.
Next, the steps for a successful investigation were examined. How should investigations run, what exactly should be investigated, and what techniques should be used? The Board concluded that:
Fact-finding should be a collaborative process; the analysis independent. As happens in aviation incidents, a lot of parties provide expertise related to the investigation, but they are excluded from the analysis and don’t contribute to the final report.
Slow and careful investigations give value to the effort. Deep and detailed questions help knowledge gaining for the incident. Failures of the involved products, tools, and controls are significant and need to be looked at.
The independence of the NTSB allows the Board to evaluate regulators and regulations.
Publishing reports of incidents and “near-miss incidents” is paramount. The workshop concluded that since there are no reliable data, records, and history of cyber incidents that can be used to build policies and response plans based on what has happened, the defender community often fights cases they don’t completely understand.
Finally, the reporting system should use narratives and numbers, as this will improve the “learning and sharing” concept, but should share knowledge wisely. There might be sensitive data, like “pilots’ last words to families”, that need to be disseminated with discretion.
The next steps
If safety was a fashion show, no doubt that aviation safety would be the top model; delicate but sturdy, where the maturity of time would add more charm to her. The challenge is whether cybersecurity can walk shiny on the same runways as aviation safety. The workshop proved that this is feasible if all parts cooperate to integrate knowledge to the highest possible security level.
To that end, the workshop sums up several research questions around adapting lesson learning systems from aviation, and key findings for further investigation. Finally, it suggests a series of recommendations for the Cyber Safety Review Board (CSRB) and Congress to evolve “Cyber NTSB” concept into reality; an entity that can learn from mistakes and successes, sharing knowledge generously.
Unionized workers aboard the decommissioned FPSO Petrojarl Foinaven have safety concerns about their last labor action. 50 workers are planning to go on strike while the Foinaven is under tow to Hunterston, Scotland, and union Unite accuses the operator of doing too little to ensure their safety during the voyage.
The workers aboard the Foinaven plan to go out on strike over the terms of their severance pay. Staff involved in the decommissioned platform’s operations will be laid off this month, and the union claims that shoreside employees of the operation are getting a much larger severance package.
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The trade union has slammed Altera, the vessel’s operator, for maintaining what it calls a ‘wall of silence’ over the safety of the 50 workers who intend to go on strike Friday. During the strike, Foinaven will be under tow from the Foinaven oil field west of the Shetland Islands to Hunterston, an industrial terminal on the Firth of Clyde. The FPSO is expected to reach the port by early next week.
Unite claims that Altera has refused to respond to safety concerns raised over the emergency services provisions for the vessel if it comes into distress or if a fire breaks out, as the workers will remain onboard while on strike. The workers include crane operators, electricians, deck crew and production technicians.
A fire incident onboard the Foinaven occurred in April, prompting the temporary evacuation of 30 nonessential staff.
“We remain deeply concerned for the safety of the crew during the tow, which is likely to involve around 50 people, for the Foinaven itself, the towing vessels and the wider environment should anything go wrong,” said Vic Fraser, Unite industrial officer.
Fraser said that Unite had asked Altera if it had been in touch with regulators and other parties involved in the tow – like Maersk, the towing provider – to make sure that all were aware of the implications of the strike.
Fionaven is owned by a Teekay subsidiary and operated by Altera on behalf of field operator BP. The oil major ended the contract for the vessel after suspending production from the Foinaven field in 2021.
The FPSO is set for decommissioning after decades of operations in the harsh environment west of Shetland. Following redelivery, Teekay will be responsible for its recycling, which will be carried out at an approved shipyard in compliance with UK regulations.
The ship recycling market has remained in a difficult state with very few demolition candidates. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “there was more upheaval to report this week, this time coming from Bangladesh, where despite price levels showing signs of improving, the Bangladeshi Government introduced new restrictions to limit the outgoing volume of U.S. Dollars for ‘essential’ purchases only. This will now pose serious questions concerning these improved levels for any available tonnage in the foreseeable future. As such, the government announced that any Letter of Credit exceeding USD 5.0 million must be approved by the Central State Bank for opening. In addition, reports this week suggest that the Government of Bangladesh has sought a USD 4.5 billion loan from the International Monetary Fund as it seeks assistance to cope with the mounting pressure on their economy. It is understood the Bangladeshi Taka has devalued by about 20 pct against the U.S. Dollar over the last few months weakening the country’s finances. We are already hearing of cash buyers facing difficulties reselling any larger LDT tonnage that they have in hand due to these restraints and it is expected that this will continue for some time, thus the question will be, whether Bangladesh will be aggressive to purchase any large LDT vessel that comes into the market. Concerning times indeed for the local Chattogram market! Elsewhere, India is seemingly the more stable and competitive market, but again the dwindling of tonnage being circulated is a cause for concern for the domestic industry. Across their border, the recyclers in Pakistan look set to take a position on the side-lines as their price levels remain far less competitive than their counterparts in India and even Bangladesh”, the shipbroker concluded.
Source: Clarkson Platou (Hellas) ltd
Meanwhile, Allied Shipbroking added this week that “the ship recycling market appears to have noted another slight step back, with offered prices levels across the Indian Sub-Continent having noted another correction as of this past week. Activity continues to remain at sluggish levels, though the slakc in buying appetite is only one half of the equation at hand. We are still seeing a very small number of demo candidates coming to market these past few weeks, while given the lower price levels on offer this trend is likely to continue to hold for the remainder of the summer period. In the separate demo destinations and more specifically that of Bangladesh, conditions for local breakers seem to be deteriorating further, with the local economy in a tight squeeze and local banks likely to find it difficult to support the market under these conditions.
Source: Allied Shipbroking
Things have been holding slightly better in India, though with lack of strong competition from Bangladesh and Pakistan and with the Indian Rupee struggling to hold steady, it looks as though all appetite amongst buyers to give out any bullish offers have evaporated for the time being. Pakistan has also seen increasing levels of difficulties emerge. Facing both economic and political uncertainty at home, local breakers are backing down from any strong offers, while the increased monsoon rains of late are also causing disruptions in operations for the time being”.
In a separate note this week, GMS , the world’s leading cash buyer of ships, said that “fears and concerns across the sub-continent recycling markets continue to grow as local currencies across all major ship-recycling destinations continue to worryingly depreciate by the day and some even tougher restrictions reportedly set in place on the opening of fresh Letters of Credit (L/Cs) in Bangladesh this week, as the foreign currency crisis in the country deepens further. In fact, the currencies have been such a source of frustration for the ship recycling community that the U.S. Dollar transactions are getting uncontrollably out of hand. The Pakistani Rupee has depreciated by a whopping 44% since the start of the year and shows few signs of stabilizing just yet. Bangladesh too has not escaped the forex collapse and remains in a perilous state. In fact, this week, the Bangladeshi government has applied to the IMF for a USD 4.5 Billion bailout, with the economic crisis continuing to eviscerate ‘non-essential’ large dollar value international trade.
Source: GMS,Inc.
Moreover, on the Bangladeshi L/C front, any L/C over USD 3 million now has to be approved by the Central State Bank – this is down from the USD 5 million limit imposed just last week and illustrates just how grave the situation is locally. Inflation in Bangladesh too is the highest it has been for a decade at about 7.50% whilst the Bangladesh Taka has depreciated by about 11.5% in the year to date in further troubling signs. India, ironically (given it’s volatile steel plate prices), remains the strongest and most resilient economy, but it is hardly encouraging to see competing markets in such dire straits, with talks plaguing the region that a similar collapse as that seen recently in Sri Lanka could be a serious possibility for those under siege countries. Finally, in Turkey, the situation is mirroring the Pakistani market, with weakening steel plate prices and a currency that seems doggedly intent on breaching TRY 18 at some point. As such, ship recycling is taking a backseat to these far more prescient worries at the moment – with nearly no new sales at least troubling recyclers for the time being”, GMS concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
Container shipping capacity between the Far East and the US East Coast has risen sharply from last year as shippers have shifted volumes towards the East Coast (USEC) and away from the West Coast (USWC) – and carriers have responded by adjusting their networks.
In the past three months (as of July 24th), capacity between the Far East and the US EC rose by 18.9% compared to the same period in 2021 (Source: Sea-Intelligence).
Over the 12-week period, the average capacity deployed by carriers on this trade was 210 000 TEU. Compared to the average weekly capacity in the same period last year, this is the equivalent of adding four 8 750 TEU ships a week.
In contrast, capacity deployed between the Far East and the USWC has fallen by 1.7% in the 12-week period, to an average of 310 000 TEU a week. In other words, there is still 100 000 TEU a week more sailing from the Far East to the USWC than there is to the USEC.
The share of capacity between the two has, however, been adjusted. Last year, in the three months ending 24 July, 66.1% of the capacity from the Far East to the US went to the West Coast. This year that share has fallen to 61.3%.
Looking at volumes shipped in May reveals a similar shift in the share between the two coasts.
The share going to the West Coast has fallen to 59.8%, with the share to the East Coast rising by 4.4 percentage points in May 2022 compared to May 2021.
Volumes from the Far East and the US East Coast are up by 11.9% year to date and were up 7.3% in May 2022 alone compared to the same time last year.
As many of these containers have been moved away from the West Coast to the East Coast, there has been a corresponding drop in volumes imported through the US West Coast from the Far East. These are down 8.0% year to date and were down by 12.8% in May alone compared to May 2021. Total imports from the Far East to North America have risen 0.9% year to date.
The shift in volumes has also led to a change in congestion around the two coasts.
Record high imports to the US East Coast have seen schedule reliability drop to 18.7% in June, indicating that fewer than one in five ships are arriving on time, according to Sea-Intelligence. Those that are arriving late have an average delay of 9 days.
Fewer ships arriving on the West Coast mean that even as onshore disruptions continue to pose huge problems, schedule reliability has in fact improved, reaching 24.8% in June, its highest level in over a year. However, this still means that three out of four ships are arriving late, clocking to an average delay of 9.9 days.
Source: Xeneta
Anew Concentrated Inspection Campaign (CIC) has been announced by the Paris and Tokyo MOUs (Memoranda of Understandings), specifically focusing on STCW compliance. So, ship owners, operators, Masters and crews should now focus on the specific details as clearly identified by them as listed below.
The campaign will run for three months, from 1 September 2022 to 30 November 2022. The CIC inspections will be applicable for all ships and conducted in conjunction with the regular Port State Control inspection. A ship will be subject to only one inspection under this CIC during the campaign period.
The campaign on STCW aims to confirm that:
• The number of seafarers serving on board and their certificates are in conformity with the relevant provisions of the STCW Convention and Code and the applicable safe manning requirements are as determined by the Flag State Administration;
• All seafarers serving on board, who are required to be certificated in accordance with STCW Convention, hold an appropriate certificate or a valid dispensation, or provide documentary proof that an application for an endorsement has been submitted to the Flag State Administration;
• The seafarers on board hold a valid medical certificate as required by STCW Convention;
• The watch-keeping schedules and hours of rest indicate compliance with the requirements of the STCW Convention and Code;
• The CIC will assist in raising the awareness of shipowners, operators and crew on the specific requirements in the STCW Convention and Code.
All vessels must fully comply with their statutory and non-statutory requirements, be duly manned and show evidence of their crews’ qualifications during PSC inspections. The shore-based management also has to meet their obligations, contributing effectively and prudently to a successful and non-detainable inspection of the vessels under their management.
Any CIC which is focused on raising the awareness of owners, managers, vessel’s crew, to the specific requirements of the STCW Convention and Code needs to be applauded. The outcome of any PSC inspection influences the status and the performance of all Flag Administrations.
PISR has introduced its own proprietary DPS (Deficiency Prevention System) to help and support the prevention due to deficiencies on vessels prior to being inspected by PSC Authorities. DPS is a uniquely designed and developed system by PISR, which raises awareness of the importance of the prevention and remediation of deficiencies, contributing to the safety of life at sea, the prevention of marine pollution and is provided as part of our standard service to our clients.
DPS has been fully administrated by PISR with the main objective to introduce a more preventive and risk-based approach to all ships registered under PISR , especially to those that have been identified as Priority 1-2 in our system, which may be eligible for inspections by working proactively with these vessel PISR helps them to enhance their quality status. The success of the DPS is evidenced through PISR’s significant rise in its ranking within the Paris Memoranda of Understanding (PMoU) Flag State performance Review covering 1 January 2019 until 31 December 2021. PISR lies within the top third tier of the Grey List of flag states.
It is self-explanatory that “Prevention” is better than “Correction” on any shipping industry issues.
PISR as a proud member of the IMOs STCW White List since 2019 will support the Paris-Tokyo MOU CICs with immediate effect, advising all registered vessels of the campaigns, so that vessels operating under their flag fully meet all requirements as outlined in the campaign.
Safety and environment awareness should not only be implemented only during a campaign, BUT should ALWAYS be adhered to, duly verified by attending PSC surveyors along with issued inspection reports.
If you need any help or guidance on what this might mean for your fleets, don’t hesitate to contact us at info@palaureg.com and we will be able to assist you further.
Source: PISR (Palau International Ship Registry)
The 12-metre vessel, which had set sail from Portugal’s capital Lisbon, sent out a distress signal late on Monday evening from the Atlantic Ocean.
Spanish coastguards found the upturned boat, but the sea was too rough to rescue him – so the sailor had to wait until morning.
The man’s survival was “verging on the impossible”, said coastguard divers.
His boat sent a distress signal at 20:23 local time on Monday, 14 miles (22.5 km) from the Sisargas Islands, near Spain’s north-west Galicia region.
A rescue ship carrying five divers as well as three helicopters set off to find and rescue the man, who has not yet been named.
A diver was winched onto the ship’s hull to seek signs of life and the man responded by banging from inside.
The sea was rough and the sun had gone down, so the rescue team attached buoyancy balloons to the boat to stop it from sinking and waited until morning.
The next day, two divers swam under the boat to help the sailor out, who they found wearing a neoprene survival suit and submerged in water up to his knees.
The man then jumped into freezing water and swam under the boat towards the sea’s surface.
In a tweet, Spain’s Maritime Safety and Rescue Society said: “Each life saved is our biggest reward.”
The Maritime and Port Authority of Singapore (MPA) and the Port of Rotterdam Authority have signed a memorandum of understanding (MoU) to establish the world’s longest Green and Digital Corridor to enable low and zero carbon shipping.
Signed by Ms. Quah Ley Hoon, Chief Executive of MPA, and Mr Allard Castelein, CEO of the Port of Rotterdam Authority at the Marina Bay Sands Convention Centre on the sidelines of the biennial World Cities Summit, the MoU will bring together stakeholders across the supply chain to realise the first sustainable vessels sailing on the route by 2027. The signing was witnessed by Mr S Iswaran, Minister for Transport and Minister-in-Charge of Trade Relations, Singapore, and Mr Ahmed Aboutaleb, Mayor of Rotterdam.
Singapore and Rotterdam are among the largest bunkering ports in the world, making them vital links on the Asian-European shipping lanes. While international shipping currently uses largely marine gas oil (MGO) and low-sulphur fuel oil, sustainable alternatives such as biofuels, including biogases, are increasingly being made available. Other alternatives such as synthetic methane, hydrogen, and hydrogen-based fuels including ammonia and methanol are in various stages of R&D for future trials and deployment.
Each alternative fuel has its own challenges relating to costs, availability, safety, and restrictions in range due to lower energy density compared to fossil fuels. To tackle these challenges, the two port authorities agreed to bring together a broad coalition of shippers, fuel suppliers and other companies to collectively work on potential solutions.
Beyond alternative fuels, the MoU also aims to optimise maritime efficiency, safety, and the transparent flow of goods by creating a digital trade lane where relevant data, electronic documentation and standards are shared. This will facilitate the seamless movement of vessels and cargo, and optimise just-in-time arrival of vessels from port to port.
Credits: Port Of Rotterdam
The port authorities will work with the Global Centre for Maritime Decarbonisation and the Mærsk Mc-Kinney Møller Center for Zero-Carbon Shipping as action partners, as well as other industry partners across the supply chain, including bp, CMA CGM, Digital Container Shipping Association, Maersk, MSC, Ocean Network Express, PSA International, and Shell for a start. This will enable the Green and Digital Corridor project to raise investment confidence, attract green financing, and kickstart joint bunkering pilots and trials for digitalisation and the use of low- and zero carbon fuels along the route.
Mr S Iswaran, Minister for Transport and Minister-in-Charge of Trade Relations, Singapore, said: “Decarbonising shipping is an urgent climate action priority, which requires the collective efforts of the entire maritime sector. As a trusted global maritime hub, Singapore contributes actively to IMO’s efforts to make international shipping more sustainable, and global supply chains more resilient. This MoU with the Port of Rotterdam demonstrates how likeminded partners can work together to complement the efforts of the IMO. It will serve as a valuable platform to pilot ideas that can be scaled up for more sustainable international shipping.”
Allard Castelein, CEO of the Port of Rotterdam Authority, said: “Shipping is among the most important industries to decarbonise, owing to its large international reach and volume, which continues to grow. By bringing together parties across the supply chain along one of the world’s biggest trade lanes, we can enable carriers to switch to zero-carbon fuels and speed up the transition to more sustainable shipping”.
Ms. Quah Ley Hoon, Chief Executive of MPA, said: “This MoU further strengthens the strong partnership between Singapore and Rotterdam. It reaffirms Singapore’s commitment towards facilitating a multi-fuel bunkering transition as part of the Maritime Singapore Decarbonisation Blueprint 2050, and accelerates our digitalisation efforts to optimise maritime efficiency and improve supply chain resilience. The pilot will complement efforts undertaken by the shipping industry, including partners such as Google Cloud, and the IMO to support decarbonisation and digitalisation transition for international shipping, as we work towards developing and scaling up green and digital solutions for wider adoption.”
Bo Cerup-Simonsen, CEO of the Mærsk Mc-Kinney Møller Center for Zero-Carbon Shipping, said: “The Singapore-Rotterdam Green Corridor is fully in line with our strategy to accelerate the decarbonisation of the maritime industry by supporting first movers. We need bold projects like this to leverage the learnings and further develop green partnerships across the value chain. Connecting globally leading partners around one of the major trade-lanes will allow us to demonstrate concrete, scalable decarbonisation solutions that can inform and inspire industry as well as policy makers around the world.”
Professor Lynn Loo, Chief Executive Officer of Global Centre for Maritime Decarbonisation (GCMD), said: “International shipping will have to deploy at least 5% zero-emission fuels in its fuel mix by 2030 for the sector to meet a Paris-aligned net-zero target. To this end, green corridors provide a framework to harmonise standards and regulations, increase green fuels availability and strengthen their supply chains, and attract green financing for bunkering infrastructure buildout at ports involved. GCMD is excited to be an action partner in the development of the world’s first green and digital corridor. We will operationalise meaningful route-base, port-to-port pilots along this green corridor to help international shipping navigate and accelerate its transition towards a zero-carbon future.”
The Maritime & Port Authority of Singapore (MPA) has concluded its investigation the sale of bunker fuel which contained high concentration levels of Chlorinated Organic Compounds (COC) and it said previously was sold to around 200 ships in March by Glencore and PetroChina. Around 80 ships reported engine, fuel pump and other issues.
The contaminated Heavy Fuel Oil (HFO) was loaded at the Port of Khor Fakkan, United Arab Emirates (UAE) onto a tanker and shipped to floating storage facilities in Tanjung Pelepas, Malaysia to be further blended. It was then delivered to Glencore’s storage facilities in Singapore where part of the cargo was sold to PetroChina.
Releasing its conclusions on Wednesday MPA said it found no evidence Glencore or PetroChina had intentionally contaminated the HFO.
However, it was discovered that fuel tests on the HFO carried between 21 – 23 March carried out by a laboratory engaged by Glencore contained concentrations of COCs that ranged from approximately 2,000 ppm to 15,000 ppm. While not part of standard ISO 1827 tests such high levels of COCs are also unusual in bunker fuel.
The authority said: “MPA’s investigation found that despite this, Glencore continued to supply bunkers blended with the fuel purchased that was contaminated with high levels of COC to vessels in the Port of Singapore from 22 March 2022 to 1 April 2022.
“By doing so, Glencore contravened the terms and conditions of its Bunkering Licence (Bunker Supplier) in failing to ensure that no bunkers supplied by it were contaminated.”
In that period a total of 24 vessels were supplied with contaminated fuel by Glencore and at least three vessels reported issues with their fuel pumps and engines as a result.
For breaching its bunkering licence the MPA is suspending Glencore’s license for two months from 18 March.
“MPA has also asked Glencore to improve its internal procedures to ensure that prompt action is taken in future when it becomes aware of, or reasonably suspects, any irregularity in fuel quality,” the authority said.
The MPA is not taking any action against PetroChina which it said promptly stopped supplies of the fuel by 19 March after its own tests showed it was contaminated with high levels of COCs.
The port authority stressed it takes compliance with the bunkering regime seriously. “MPA has reminded all licensed bunker suppliers to adhere strictly to the terms and conditions of their licences. MPA takes a serious view of contraventions of the bunker supplier licence terms and conditions, and will not hesitate to suspend or cancel the relevant licences, where necessary,” it warned.
The largest bunkering port in the world Singapore bunker sales were 50.04m tonnes in 2021, of which 49.99m was fuel oil.
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