Marco Molica Colella, Senior Innovation Consultant at CiaoTech (PNO Group) looks at the autonomous shipping industry and the journey it will take to improve its sustainability

Autonomy has been in the R&D roadmaps for over a decade, and it is getting serious. Contrary to common- places, it is not a goal by itself, but it can have a terrific impact on the shipping sector’s sustainability, safety, and environmental targets. As a matter of fact, recent and famous projects like Yara Birkeland and ASKO show that environmental targets have driven investments into autonomous shipping vessels by cargo owners.

For sure, the technology behind autonomy inherently supports cost efficiency, but not only or necessarily by replacing crews: differently, it can certainly ease a part of their job. Constrained operations under human supervision can – in fact – limit risks and decrease seafarers’ labour. On the other hand, with increasing personnel in remote control centres, smaller crew accommodations can enable new designs, allowing for more cargo holds and increasing cost efficiency, supporting demand growth. In contrast, smaller vessel fleets can change logistics and improve routes between smaller ports.

Shipping infrastructure and the value-chain

Overall, a more competitive and reliable fleet can generate new seamless and resilient logistics, gaining traction against road transport and supporting the EC targets to decongest them. This may be the case as far as Inland Waterways are concerned, but there is not one business case fitting all scenarios. Looking at the infrastructure and the value-chain, autonomy eventually supports resilience, providing new instruments to withstand contingencies, from pandemics to climate crisis events.

In any case, the picture is complex, and great attention must be kept considering all instances and societal counterparts in the process. We are just at the beginning, although the first use cases are real.

First movers: an R&D stakeholders’ outline

Aiming at better, more efficient, and sustainable operations through digitalisation and automation, the autonomous ships technology perfectly merges into the smart logistics scenario, involving ports and the water transport infrastructure. The liaison between the two areas has just started to be explored. Indeed, the full development of the technology does require automatic mooring, Shore Control Centres and different sensing and telecommunication technologies “off board”. In the EU-funded project AUTOSHIP – Autonomous Shipping Initiative for European Waters, a technology-based Stakeholder Analysis has been performed based on a systematic investigation of the last year’s R&D efforts and investments. Innovators and Investors have been mapped by looking, among other sources, into national and EU funded R&D, start-ups and IP portfolios using multiple databases.

A total of 75 – EU and national – R&D Funded Projects were analysed, with a view also to CEF and TEN-T programmes. They uncovered that only a few emerging initiatives have been looking together at autonomous transport and logistics in the same picture. The R&D has been focussing on building blocks that have been studied separately.

Projects addressing autonomous vessel technology have been developed with a vibrant core in Norway and Germany: like Autoship, they have been implementing and demonstrating key enabling technologies, including sensing and remote control, while relevant regulations are under discus- sion by competent authorities. On the other hand, e-infrastructure and automation in ports have not been directly related to autonomy. Still, they are connected to the requirements that autonomy demands for developing Vessel-to-Shore interfaces.

Emerging market leaders of maritime transport

Correspondingly, by analysing the expertise of 335 involved organisations and mapping their role in the maritime transport and logistics value chain, a prominent number of Technology Providers/Developers (198 organisations) can be found, including emerging market leaders.

The next step is the definition of integrated business cases: the presence of relevant clients (e.g. cargo owners /shippers) has still been limited up to the recent past. However, this trend has rapidly been changing. With the Technology Readiness Level rising, progressively larger and more integrated projects have been developed where the autonomous technology seamlessly connects to cargo-owners, smart ports, and longer value-chains, including the “last-mile” representatives. It is highly likely that this integration will eventually provide the optimal definition of the autonomous/smart shipping market.

Knowledge is key, no matter what industry you are looking at

CIAOTECH S.r.l. is AUTOSHIP’s coordinator. We are the Italian branch of the PNO Group: Europe’s largest independent public funding and innovation consultancy with more than 30 years of hands-on expertise. In AUTOSHIP, our R&D Advisory team is involved in developing the Stakeholder and Market analyses, in a Cost-Benefit-Analysis for autonomous vessel use cases and in shaping the project business and exploitation plans, facilitating communication and outreach.

Every year, PNO supports more than 3.000 clients in their R&D processes, realising original data-driven and expert-driven analysis and creating over 300 cutting-edge R&D projects – changing the world for the better. We identify where technologies and business are heading, analysing relevant trends, highlighting the focus of innovation leaders and anticipating changes.

Source: https://www.openaccessgovernment.org/autonomous-shipping-from-autonomy-to-sustainability/143202/

 

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 Hyundai intelligent Navigation Assistant System (HiNAS 2.0) is an AI-based navigation solution that covers all steps for voyage from detection to situation analysis, planning and control.

The system assists in safe navigation by displaying AR (augmented reality) images of detected ships and navigation information. Furthermore, it controls heading and speed for collision avoidance and route tracking.

Developed by AVIKUS, a subsidiary of Hyundai Heavy Industries (HHI), the system creates and controls optimal routes for collision avoidance in the ocean, aiming to reduce crew fatigue and increase fuel efficiency.

The multilateral MoU includes a joint study to deploy autonomous navigation systems on board ships to increase technology uptake by the industry and flag states.

Abu Dhabi Ports and DNV GL to Transform Emirate’s Maritime Ecosystem

During the project, AVIKUS, HHI and LISCR will actively contribute to developing autonomous maritime solutions that comply with DNV Rules on autonomous operations, where AVIKUS aims to obtain an Approval in Principle from DNV as well as the Liberian Flag Administration.

“Through this cooperation, we believe that we will gain momentum to move forward to the next stage of autonomous ship technology. We will try to maintain the leading position in this technology and to increase competitiveness in the future ship market,” said Won Ho Joo, CTO of HHI.

Dohyeong Lim, CEO of AVIKUS said: “This joint development is meaningful in that it includes shipyards, autonomous solution companies, classification, and flag states to commercialize autonomous navigation solutions.

“Based on the results of this project, we will successfully commercialize HiNAS 2.0 and contribute to the improvement of navigation safety and fuel savings.”

Thomas Klenum, Executive Vice President, Innovation and Regulatory Affairs at LISCR said: “As a result of the 4th Industrial Revolution, the fast-paced technology development will pave the way for autonomous shipping.

“This ground-breaking MOU with collaboration between forward-thinking and safety-focused stakeholders will set an example of how artificial intelligence can support and enhance the safety of navigation and reduce GHG emissions.”

“Rightly applied, a higher degree of digitalization can contribute to safety and efficiency enhancements in shipping. Therefore, we are pleased to collaborate with industry technology leaders and help to advance the development of autonomous ships,” said Vidar Dolonen, Regional Manager DNV Maritime Korea & Japan.

Source: https://www.transportandlogisticsme.com/smart-technology-innovation/dnv-signs-mous-to-develop-autonomous-ship-technology

 

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 Liberian Registry, the world’s second largest ship registry, signed a memorandum of understanding (MOU) with maritime industry technology leaders HHI, AVIKUS and DNV to collaborate on autonomous ship technology developments.
Over the last 5 years the Liberian Registry has participated in over 30 joint industry projects, all with focus on innovative ship design features, new technologies and alternative fuels. While the overarching goal with these projects is to decarbonize international shipping, we also have to ensure the safety of navigation. Through the adoption of innovative technologies for autonomous shipping this MOU will seek to enhance both safety of navigation and reduce GHG emissions.
The Hyundai intelligent Navigation Assistant System (HiNAS 2.0) is an AI-based navigation solution that assists in safe navigation by displaying AR (augmented reality) images of detected ships and navigation information. Developed by AVIKUS, a subsidiary of Hyundai Heavy Industries (HHI), the system creates optimal routes for collision avoidance in the ocean, aiming to reduce crew fatigue and increase fuel efficiency.
The multilateral MoU that was signed at Gastech 2022 in Milan includes a joint study to deploy autonomous navigation systems on board ships to increase technology uptake by the industry and flag states. During the project, AVIKUS, HHI and Liberian Registry will actively contribute to developing autonomous maritime solutions that comply with DNV Rules on autonomous operations, where AVIKUS aims to obtain an Approval in Principle from DNV and Liberian Registry.
“Through this cooperation, we believe that we will gain momentum to move forward to the next stage of autonomous ship technology. We will try to maintain the leading position in the technology and to increase competitiveness in the future ship market,” said Wonho Joo CTO of HHI.
“This joint development is meaningful in that it includes shipyards, autonomous solution companies, classification, and flag states to commercialize autonomous navigation solutions. Based on the results of this project, we will successfully commercialize HiNAS 2.0 and contribute to improvement of the navigation safety and fuel saving,” said Dohyeong Lim, CEO of AVIKUS.
“Rightly applied, a higher degree of digitalization can contribute to safety and efficiency enhancements in shipping. Therefore, we are very pleased to collaborate with industry technology leaders and help to advance the development of autonomous ships,” said Vidar Dolonen, Regional Manager DNV Maritime Korea & Japan.

“Innovative technologies that enhances safety of navigation and reduce GHG emissions must be supported from a regulatory perspective, and the Liberian Registry is very pleased to collaborate with the other forward-thinking industry leaders to make this groundbreaking HiNAS 2.0 solution a reality” said Alfonso Castillero, CEO of the Liberian International Ship & Corporate Registry (LISCR).

Source: LISCR

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 Nigerian Maritime Administration and Safety Agency, NIMASA, and the Nigerian Immigration Service, NIS have agreed to deepen existing interagency collaboration with the signing of a Memorandum of Understanding, MoU on Seafarers’ Travel document amongst others.

This agreement was reached when the Comptroller General of the NIS, Mr. Isah Idris Jere led senior officials of the Service on a working visit to the Management of NIMASA. The Director General of NIMASA, Dr. Bashir Jamoh noted that the role of the Nigerian Immigration Service in enhancing security in the maritime domain is crucial, adding that seamless issuance of travel documents to seafarers is a key component in the nation’s quest to grow the maritime industry.

Secure maritime domain

According to Dr. Jamoh, “Security on land is key to achieving a safe and secure maritime domain. NIMASA appreciates the need to work closely with the Immigration Service to improve security in the maritime domain. We need the Service to play a major role in issues of crew nationality, seafarers travel document and managing issues of stowaways, amongst others.”

The NIMASA DG also commended the contribution of the NIS in the implementation of the SPOMO Act

The DG and the Immigration Comptroller General thus agreed to develop a Memorandum of Understanding to provide a framework for the working relationship. The NIMASA DG also commended the contribution of the NIS in the implementation of the Suppression of Piracy and other Maritime Offences (SPOMO) Act, stating “The passing into law of the SPOMO Act, and subsequent prosecutions recorded under that law has involved working closely with the NIS. With that being said, NIMASA will continue to offer our helping hand to the Nigeria Immigration Service even as we anticipate further collaboration.”

Dockworkers registration nationwide

On his part, the NIS Comptroller General identified the issuance of temporary work permits to international vessel crews as well as preventing stowaways, as areas of frequent collaboration between both organs of Government while also commending NIMASA’s automation of dockworkers registration nationwide.

According to him, “Our visit to NIMASA is a signal that the Nigeria Immigration Service seeks continued collaboration and deepened synergy as we collectively work to address the issues facing us in our coastal lines and in maintaining the integrity of our territorial waters. We welcome the Agency’s automation of dockworkers registration and issuance of biometric identity cards as a great step in the task of securing the nation’s ports.”

Source: https://www.maritimeinformed.com/news/nigerian-maritime-administration-safety-agency-nimasa-co-1629709906-ga.1662911661.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

 


With the assistance of approximately 300 applicants, including Officers, Cadets and Seafarers, the call made to Panamanian seafarers interested in embarking, ended up successfully, organized by the Panama Maritime Authority (AMP), through the General Directorate of Seafarers (DGGM), in a joint effort with the leading international maritime transport company in the field of general cargo in Colombia, the shipping company NAVESCO, S.A.

This call, according to what was indicated by the shipping company according to its requirements, was directed mainly to First Officers (Deck and Engine), Chief Engineer, AB, Fitter, Cook, with previous experience, however other positions present during the appointment, were also interviewed.

The Administrator of the Panama Maritime Authority, Noriel Arauz, and the Deputy Administrator of the AMP, in charge, Elvia Bustavino, welcomed the attendees, who from early hours came to the facilities of the General Directorate of Seafarers, in the PanCanal Plaza building, Albrook.

The Director of the DGGM, Captain Juan Maltez, indicated that he is very satisfied with the great attendance, since it is a sign of the interest of the Panamanian seafarers to embark and perform functions on board, which will have a positive impact on their families and it will boost the national economy by attracting fresh foreign exchange; in turn, this brings us closer to the goal established in this Administration, that of creating mechanisms to facilitate the hiring of Panamanian seafarers who need to work on board ships, in this case general and bulk cargo.

The General Manager of the shipping company NAVESCO, Guillermo Solano, accompanied by the Director of the Operations Department, Norman Jimenez Espinel, were in charge of interviewing the personnel for the shipments.

Manager Solano expressed that his visit reinforces the bond created with the AMP, through an Agreement made in March 2020 and that they are pleased with the professionalism and competence shown by the Panamanian seafarers hired on board their ships, being so far, around 40 of them, sailing in their fleet, a figure that they wish to increase, which is why they requested this call.

The President of the Panamanian Association of Naval Officers (APOM), Captain Alberto Herrera, and the Prosecutor of the Association, Captain Aurelio Dutari, were also present, as were the Secretary General and the National Director of Employment of the Ministry of Labor and Work Development (MITRADEL), Winston Ivan Sanchez Aparicio and Alfredo Miter, respectively, who supported the work and reiterated the message to the Panamanian seafarers, that in addition to technical knowledge, it is urgent to strengthen command of the English language as the official language of the maritime industry for security, commercial and labor purposes.

The visit of the top management of the shipping company NAVESCO to Panama, includes a tour of the International Maritime University of Panama (UMIP) and Columbus University, in order to interact with the teaching staff and cadets, to learn more about to the directors, students, teaching staff, as well as the training that is given in these houses of higher education.
NAVESCO is an international company founded in 1980, dedicated to international sea transport and cabotage of solid bulk such as cement, lime, salt, fertilizers, coal, sugar and general cargo such as steel and pipes.

Its activity is mainly carried out in the American continent, especially in the Gulf of Mexico, the Caribbean and Central America, both on the Atlantic and Pacific coasts, the area of operations includes ports in Colombia, Venezuela, Brazil, Argentina, Ecuador, Peru , Chile, Panama, Costa Rica, Salvador, Honduras, Guatemala, Mexico and the United States, for which it uses two (2) vessel sizes: 8,000 DWT and 14,000 DWT, it has twelve (12) vessels, of which nine (9 ) are owned and the others long-term chartered, by English, Dutch and German shipowners.

Source: https://maritimes.gr/en/maritimes-news/46080-call-made-by-the-amp-to-the-panamanian-seafarers-concludes-successfully

 

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

 


Saudi Maritime Congress will reinforce industry leaders’ commitment to achieving climate neutrality and discuss its impact on global supply chains, with the aim of creating a sustainable and safe environment in the maritime sector.

Scheduled to take place in Dammam on September 28-29, 2022, industry leaders will come together to discuss the key challenges and opportunities.

As the leading maritime and logistics event in Saudi Arabia, the conference will witness a number of discussion sessions that will bring together decision-makers from private companies and government bodies from around the world. The aim is to focus on accelerating the transition to clean energy and adopting best practices to reduce carbon emissions.

Accordingly, the conference will highlight the adoption of effective policies and constructive strategies that will promote the transition to clean fuels such as hydrogen as an alternative to carbon intensive non-renewable energy sources. These discussions come at a time when the global community is looking to achieve climate neutrality in the marine sector and solve problems related to greenhouse gases.

Eng. Abdulaziz Sabri, President of Bahri Ship Management said: “As one of the world’s largest VLCC owners and operators, Bahri’s participation in the Saudi Maritime Congress, which will bring together the global maritime community, is an ideal opportunity to explore and identify the key drivers of carbon neutralisation for the sector and ensure that we are on the right track. We are also keen to participate in the discussions about the energy alternatives that would be available in shipping, and to learn about the latest developments regarding the use of innovative technologies.”

The maritime sector is a major tributary of Saudi Arabia’s economy and an essential element in supporting the Kingdom’s Vision 2030. Moreover, the country’s significant fleet is instrumental for the industry.

Chris Morley, Group Director of Maritime Events at Informa Markets, said: “The Saudi Maritime Congress provides a comprehensive and integrated platform to amplify the effectiveness of thought leadership debate. Contributors, stakeholders, and participants at the event all play a vital role in the creation and provision of innovative solutions to everything from future fuels to the adoption of technology throughout the maritime industry. It’s important to the whole team at Seatrade Maritime that we support our communities and customers and provide a catalytic experience that contributes to the objectives of the maritime industry.”

He added: “The Kingdom is among the twenty largest economies in the world and has the largest purchasing consumer base in the region. Therefore, the vital role that the maritime sector plays in the Kingdom’s plan for economic diversification cannot be downplayed. We believe this event plays an important role in supporting sector growth and stimulating action toward the goals of Vision 2030.”

Saudi Arabia has increased the tonnage of its marine fleet, which includes 368 tankers and ships, reaching 13.5 million tons.

Source: https://www.marasinews.com/

 

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 decision by Ukraine late in August to exempt its seafarers from mandatory service in the armed forces, and to be allowed to leave the country to work on ships internationally, would free up manpower for both Ukrainian grain exports and the wider global shipping industry, reported Reuters, citing major industry figures.

The move was a concession by Ukraine that its merchant shipping workforce, one of the largest worldwide, would be able to serve the nation better in both economic and military terms by working on ships.

Ukrainian seafarers make up 4% of the total global mariner workforce of 1.89m sailors.

It was first announced in late August by Prime Minister Denys Shmyhal, and was decreed into law by his cabinet last Friday September 2nd, according to a copy of the order published on Monday evening.

Ukraine is looking to maximize its grain shipments via the Black Sea Grain Corridor agreed in late July and scheduled to run until at least late November/ early December. Viktor Vyshnov, deputy head of Ukraine’s Shipping Administration, told Reuters that “we understand that the grain corridor depends on them (seafarers) and the world of international logistics also depends on them”.

Shortly after the grain export deal was agreed it was noted that it would be difficult to find the seafarers to crew the estimated 80 vessels stuck in Ukrainian ports since the end of February. Most of the crews on board had long been evacuated, leaving the port-locked vessels with a minimum tick-over crew.

Able-bodied Ukrainian men aged 18-60 are barred from leaving the country, but Ukraine’s government has now waived the ban for qualified seafarers and those studying for a mariner qualification.

“According to the decree, all seafarers, whether they are leaving from Ukrainian ports or are going abroad to fulfil their contracts, can obtain the possibility to leave Ukraine,” Vyshnov said.

Shmyhal had said in August that the decision would be good for the Ukrainian economy, as it would “allow thousands of sailors to get jobs and (state) budget receipts to grow.”

Natalie Shaw, director of employment affairs at the International Chamber of Shipping, said that “the (ICS/BIMCO) report predicts that there will be a need for an additional 89,510 officers by 2026 to operate the world merchant fleet, and Ukraine supplies over 76,000 of the current workforce.”

The staffing situation on ships arriving in Ukraine was complicated by a lack of clarity on the status of Russian merchant sailors. The grain corridor deal made no comment on the status of Russian mariners aboard ships that entered Ukrainian ports.

Ukraine border agency spokesperson Andriy Demchenko told Reuters that, while he did not know of any cases of Russian seafarers receiving visas to enter Ukrainian territory during the invasion, this did not theoretically stop them from sailing into Ukrainian ports if they remained aboard their ship. “If these people are refused entry … then they must remain aboard the ship until it leaves the port.”

The International Transport Federation’s Stephen Cotton said that “common sense says Russian-owned ships and Russian-crewed ships should be very careful about visiting Ukraine. At the moment I would not recommend it.”

Russia’s President Vladimir Putin said on Wednesday September 7th at an economic forum in Vladivostok that Russia and the developing world had been “cheated” by the UN-brokered Ukrainian grain export deal. He said that he would look to revise its terms to limit the countries that can receive shipments. This could mean that any continuation after the end of the original 120-day term would be at risk, or could mean that a revision would be sought even earlier than this. However, Putin said that Russia would carry on with the deal in the hope that its aims would still be achieved, indicating that the corridor was safe, for now.

“What we see is a brazen deception … a deception by the international community of our partners in Africa, and other countries that are in dire need of food. It’s just a scam,” Putin said.

Putin warned of a global food crisis if the situation was not addressed and said he would contact Turkey’s President Tayyip Erdogan to discuss amending the deal to restrict which countries can receive shipments.

“It is obvious that with this approach, the scale of food problems in the world will only increase … which can lead to an unprecedented humanitarian catastrophe,” he said.

“Almost all the grain exported from Ukraine is sent not to the poorest developing countries, but to European Union countries,” claimed Putin.

According to UN data, Turkey, which is not part of the EU, has been the most frequent single destination for shipments from Ukraine, with cargoes also going to China, India, Egypt, Yemen, Somalia and Djibouti.

Putin also said some restrictions on Russia’s fertilizer exports had been eased, but “clever sanctions” were still complicating Russian trade.

“There are no direct sanctions against products, but there are restrictions related to logistics, freight, payments and insurance. Many of these elements of restrictions remain,” Putin said.

Ukraine responded by saying that Russian complaints about the deal were “flabbergasting” as the deal gave Russia no role in determining where the grain goes.

Ukrainian presidential adviser Mykhailo Podolyak said on Wednesday that “the agreements signed in Istanbul … concern only one issue, and that is the transfer of cargo ships through the Black Sea. Russia can’t dictate where Ukraine should send its grain, and Ukraine doesn’t dictate the same to Russia”.

Source: https://insurancemarinenews.com/insurance-marine-news/change-in-ukraines-domestic-seafarer-rules-will-help-global-shipping/

 

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

 



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


Turkish President Tayyip Erdogan this week will urge Russia to send more goods in a greater volume though the Black Sea corridor when he meets Russian President Vladimir Putin next week, broadcaster Haberturk said on Friday September 9th. It was claimed that Erdogan wants to keep Russia engaged in the arrangement.

Putin last week floated the idea of limiting the arrangement, claiming that it was delivering grain, other food and fertilizer to EU nations and Turkey rather than to the poor countries that really need it.

Erdogan was quoted as saying that “as Mr Putin said, those ships (using the corridor) are going to either developed or developing countries. Maybe that’s why Mr. Putin doesn’t ship Russian products. Of course, in our meeting in Samarkand, we will now ask him to send Russian products through the corridor with ships”.

“If Russian grain starts to arrive, we will send this grain, other products, all of them, until they reach these poor African countries”, Erdogan continued.

Erdogan and Putin are set to hold talks on the sidelines of a summit of leaders of the Shanghai Cooperation Organization in Uzbekistan on September 15th and 16th.

Steering a careful middle course that has been the hallmark of Erdogan’s political position throughout the year, he said that Putin had been right to complain that grain was going to wealthy countries. The Istanbul-based coordination group JRCC that monitors the deal has said that just 30% of cargo has gone to low and lower-middle income countries. “There are many countries in a difficult situation, especially in Africa, which we need to embrace and send these goods to as soon as possible,” Erdogan was quoted as saying.

It has been noted by Reuters that too few ships were arriving in Ukraine to clear sufficiently rapidly the mountains of grain that have built up over the eight months of war.

Even if the agreement holds, the dangers of sending ships into the heavily mined Black Sea, along with a lack of large vessels and the exclusion of a major port, have meant that the volumes transported were well below Ukraine’s goal of doubling farm exports to at least 6m tonnes by October.

Alexander Saverys, CEO of Belgium-headquartered shipping group CMB, which shipped from Ukraine prior to the war, told Reuters that “for the moment, we do not send our ships to Ukrainian ports because we don’t believe it is safe. The situation on the ground is still very volatile and there is a clear danger to our seafarers’ lives. There is also a real risk of being stuck in port.”

At the current rate of exports, it would take around six months to ship the rest of the grain left over from last year’s harvest through the three ports included in the pact – Odesa, Chornomorsk and Pivdennyi – with the help of rail exports, according to Reuters’ calculations.

But by then another mountain of grain would have built up from the current harvest, including 20m tonnes of wheat and Ukraine’s corn crop, which is expected to total around 30m tonnes.

Since they have been unable to sell the Ukrainian farmers did not have the money to invest in their fields, meaning winter wheat planting is on track to be about a third below last year, according to Denys Marchuk, deputy chair of the Ukrainian Agrarian Council.

Dmitry Skornyakov, chief executive of Ukraine farm company HarvEast, said that one reason the sea corridor was not “game-changing” was because prices being paid for grain in Ukraine were not high enough to make massive exports immediately viable. As a result his company was cutting its planted wheat area and drilling no barley or rye this year. “We will definitely see less wheat and if we wait until spring and the situation remains as it is we will see a dramatic decrease in corn,” he said.

Another problem was that reaching previous shipment levels would require four 50,000 tonnes vessels every day , according to Josh Brazil, vice-president for global supply chain insights at project44. But the current range of vessels departing Ukraine were much smaller. The average cargo size has been estimated at around 20,000 tonnes.

Alex Stuart-Grumbar of Shipfix told Reuters that, at current cargo sizes, approximately a thousand voyages would be required clear the backlog. Larger ships carrying more than 60,000 tonnes of grain have been redeployed to other regions, including North and South America. It would take weeks to reposition because the grain export seasons in those other regions are underway. A sizeable crop in Brazil was tying up many vessels.

“We are, at the moment, unable as yet to position any of our assets in the Black Sea and therefore are unable to look at this business,” Khalid Hashim, managing director of leading Thai listed dry bulk shipping company Precious Shipping, told Reuters.

While some marine insurers have provided coverage to enable grains to set sail from Ukraine’s ports, shipping companies remained concerned. Insurance, by its nature, tries to avoid the creation of moral hazard. Shipping companies are required by insurers to retain some skin in the game.

“It is one thing to be insured against a calamity, it is another to put our crew and our ship potentially in harm’s way,” said CMB’s Saverys.

US-listed dry bulk shipping company Genco said that it was looking at how to go about working in Ukraine. Genco CEO and president John Wobensmith told Reuters that there were “challenges with insurance, most importantly keeping our crew safe and there are a lot of other logistics issues in terms of the convoys and load times. We are not quite there yet”.

Viktor Vyshnov, deputy head of Ukraine’s Shipping Administration, said more use of the corridor was needed to bring down insurance costs but acknowledged that the war was constraining shipowners. “Some of them are still afraid for their ships,” he said.

Ukrainian farming minister Solsky admitted hat “our main and biggest problem…is that our demand for logistics is several times higher than the supply”.

The problem has led to innovative thinking Ukraine and Poland are planning to build a 600-km pipeline to deliver Ukrainian sunflower oil to the Polish port of Gdansk, the Ukrainian agriculture ministry quoted the minister Mykola Solsky as saying on Thursday September 8th.

Ukraine last year was the world’s largest sunflower seed grower and sunflower oil exporter. The new pipeline could transport around 2m tonnes of sunflower oil per year, the minister said, but Solsky noted that “Ukraine needs to create alternative, powerful export logistics routes. Since we process a lot of oilseed crops, the pipeline is one of these options”. He said that the Polish side had “positively accepted” the proposal.

Source: https://insurancemarinenews.com/insurance-marine-news/turkeys-erdogan-to-ask-putin-to-ship-more-via-black-sea-corridor/

 

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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