Boston-based Sea Machines Robotics, Inc. has just unveiled a new marine computer vision navigation system designed to improve safety and performance while vessels are underway.

Sea Machines’ new AI-ris, (Artificial Intelligence Recognition and Identification System) uses digital cameras and AI-processing to detect, track, classify and geolocate objects, vessel traffic and other potential obstacles in the majority of operational conditions, day or night, to equip crew with best-in-class situational awareness. Computer vision helps improve safety for vessels and is also a critical technology for the advancement of autonomous command and control systems.

The need for this technology is clear. Boats and ships operate in the planet’s most dynamic environment and the limitations of conventional navigation sensors leave the bulk of perception work to the human eye and brain for continuous scanning of the waterway.

Fatigue, distraction, and confusion can lead to misses and mistakes. The U.S. Coast Guard reported that in 2020, 36 percent of boating accidents were collisions and allisions, with the primary cause being improper lookouts and operator inattention.

The commercial marine industry suffers from similar challenges. Sea Machines designed AI-ris to be ever-alert, with the ability to deliver predictable operational results that can improve vessel reliability, as well as eliminate liabilities caused by human error. Now commercially available, this technology can radically improve vessel safety.

THE FUTURE OF OCEAN MOBILITY

“Sea Machines is dedicated to building the future of ocean mobility. We envision a future with fewer accidents at sea. We are revolutionizing marine navigation with data-driven intelligence, autonomy and connectivity,” said Sea Machines CEO Michael G. Johnson. “AI-ris enables a tremendous performance and safety increase. The superior capabilities of computer vision and AI will ensure a safer, more productive voyage.”

“AI-ris is always scanning for obstacles and can alert the operator of potentially dangerous situations. It also labels objects very small in size, like swimmers, kayakers or animals, to those very large, like another ship,” said Trevor Vieweg, CTO at Sea Machines. “With the ability to detect, classify and geolocate such targets via optical sensors, AI-ris augments and surpasses the capabilities of existing marine sensor technologies, like radar and automatic identification system (AIS), enabling greater performance and achieving the highest levels of safety. In the future, this technology may also help responders detect marine oil spills.”

The AI-ris navigation system is commercially available now and can be installed aboard existing vessels, as well as newbuilds.


Three injured crew members have been taken to hospital following an explosion on a Mediterranean Shipping Co (MSC) container ship off France.

The blast occurred in the engine room of the 8,189-teu MSC Rachele (built 2005) on Tuesday morning, according to the French Mediterranean Maritime Authority.

The incident caused a fire on board and the ship lost power.

Regional emergency authorities were alerted when the vessel was about 40km off Cape Cepet, en route for Fos-sur-Mer.

Several army helicopters and medical teams were sent to the scene, and the three injured seafarers were airlifted from the boxship.

Two of the wounded were evacuated to the Sainte-Anne military hospital in Toulon, and the third to the Sainte-Musse hospital.

There has been no word on their condition.

Switzerland-based MSC has been contacted for further information.

France Bleu reported that the MSC Rachele had been due to be towed overnight to the port of Marseille by a towage company contracted by the shipowner. AIS data shows it anchored there on Wednesday morning.

French authorities ordered the activation of level two of the Organisation de la Reponse de Securite Civile (ORSEC) plan, making it possible to mobilise reinforcements and experts in the area.

Blaze brought under control

The fire on board the vessel was reported to be under control by the afternoon.

Damage to the Panama-flag ship is not yet known.

No immediate threat was identified in terms of pollution or maritime safety.

The MSC Rachele is entered with the North of England protection and indemnity club, as of May this year.

The ship has a clean port state control detention record stretching back to its delivery.


PRINCE RUPERT, BCJune 20, 2022 /CNW/ – Preclearance, which helps travel and trade move more efficiently across the Canada-U.S. border, is a major asset for both of our countries. Preclearance locations have operated at major Canadian airports for years, while more marine and rail locations in British Columbia have U.S. “pre-inspection” operations limited to immigration screening. In recent years, the government has been working collaboratively with the United States to convert them to preclearance.

The Minister of Public Safety, the Honourable Marco Mendicino, and the Minister of Transport, the Honourable Omar Alghabra, today announced the conversion of the first marine location in Canada to preclearance, at the Alaska Marine Highway System Ferry Terminal at Prince Rupert in British Columbia.

U.S. preclearance at this location will help bolster travel and trade by ensuring secure, fast, and reliable service for travellers heading by ferry between British Columbia and Alaska.

Travellers can now fully clear U.S. Customs and Border Protection at the Alaska Marine Highway System Ferry Terminal in Prince Rupert, resulting in a quicker and easier arrival in Alaska. Until 2019, Prince Rupert had a more limited pre-inspection facility. Preclearance will also better serve the people of Metlakatla First Nation in British Columbia and the Metlakatla Indian Community in Alaska, who rely on the ferry service.

Canada and the United States share the longest border in the world. The 2019 Agreement on Land, Rail, Marine, and Air Transport Preclearance authorizes expanded preclearance for travellers at land, rail, and marine facilities in both countries, as well as at additional airports. The conversion of the existing immigration pre-inspection services at Prince Rupert to a preclearance facility is another example of our countries’ shared commitment to facilitating travel and strengthening our economies.

Quotes
“The newly converted U.S. preclearance facility in Prince Rupert, British Columbia represents a major milestone for our two countries, as the very first marine preclearance location in Canada. Given its significant benefits from both an economic and security perspective, the government will continue working with our American partners to expand preclearance at more airports, ports and train stations so people and goods can move more smoothly across our shared border.”

– The Honourable Marco Mendicino, Minister of Public Safety

“For many years, Canadians have enjoyed the benefits of preclearance when flying to the United States. Now, for the first time, the Canadian marine facility, the Alaska Marine Highway System Ferry Terminal in Prince Rupert, will also provide U.S. preclearance. By facilitating the transit of people and their accompanying goods between the two countries, we further promote economic growth in the Prince Rupert area.”

– The Honourable Omar Alghabra, Minister of Transport

“The formalization of the U.S. Customs and Border Protection (CBP) preclearance process at Prince Rupert is the result of a multi-year effort by the Government of the United States, the Government of Canada, and the State of Alaska that will enable passengers to easily travel between Canada and Alaska using the Alaska Marine Highway System Ferry Service. CBP Officers and Agriculture Specialists will process passengers at Prince Rupert prior to departure, thereby facilitating legitimate entry into the United States.”

– Bruce Murley, CBP Acting Director of Field Operations in San Francisco

Quick Facts

  • Preclearance is the process by which border officers from the United States carry out immigration, customs, and agriculture inspections and other requirements in Canada before allowing the movement of goods or people across the border.
  • Canada and the United States have a long history of successful preclearance operations, with over 16 million passengers a year precleared for flights to the United States from Canada’s eight largest airports prior to the COVID-19 pandemic.
  • In March 2015Canada and the United States signed a new treaty entitled the Agreement on Land, Rail, Marine and Air Transport Preclearance between the Government of Canada and the Government of the United States of America (LRMA), which was a commitment of the 2011 Beyond the Border Action Plan. It entered into force in August 2019.
  • The Government of Alaska operates the ferry service between Ketchikan, Alaska and Prince Rupert, British Columbia, and leases the Alaska Marine Highway System Ferry Terminal from the Port of Prince Rupert. This immigration pre-inspection facility has historically enabled the ferry to transport approximately 7,000 passengers and 4,500 vehicles across the border every year.
  • According to the Prince Rupert Port Authority’s 2021 Economic Impact report, the Port contributes significantly to the local, regional, and national economy, directly supports 3,700 jobs and approximately $360 million in wages annually. It is also the third largest port in Canada by value of trade.

SOURCE Public Safety and Emergency Preparedness Canada


Russia on Wednesday said it has offered “safe passage” for Ukraine grain shipments from the country’s Black Sea ports but is not responsible for establishing the corridors, as Turkey suggested that ships could be guided around sea mines.

Ukrainian grain shipments have stalled since Russia’s invasion and ports blockade, stoking global prices for grains, cooking oils, fuel and fertilizer. The United Nations is trying to broker a deal to resume Ukraine grain exports and Russian food and fertilizer exports, which Moscow says are harmed by sanctions.

“We are not responsible for establishing safe corridors. We said we could provide safe passage if these corridors are established,” Russia U.N. Ambassador Vassily Nebenzia said.

“It’s obvious it’s either de-mine the territory, which was mined by the Ukrainians, or ensure that the passage goes around those mines,” he told reporters at the U.N.

Turkish Foreign Minister Mevlut Cavusoglu earlier on Wednesday said it would “take some time” to de-mine Ukraine’s ports but a safe sea corridor could be established in areas without mines under a U.N. proposal, adding that Ankara was still awaiting Moscow’s reaction to the plan.

“Since the location of the mines is known, certain safe lines would be established at three ports,” Cavusoglu said. “These (commercial) ships, with the guidance of Ukraine’s research and rescue vessels as envisaged in the plan, could thus come and go safely to ports without a need to clear the mines.”

The U.N. has been “working in close cooperation with the Turkish authorities on this issue,” said U.N. spokesman Stephane Dujarric, and was grateful for them “working so constructively to find a solution to this problem.”

Dujarric added: “In order for this to go forward there will be a need for agreement from the Ukrainian side, from the Russian side.”

Kyiv fears that de-mining its ports would leave it far more vulnerable to Russian attack from the Black Sea.

“Our military people are against it, so that’s why we have very, very limited optimism for this model,” David Arakhamia, Ukrainian lawmaker and a member of the country’s negotiation team with Russia, said at an event in Washington on Wednesday.

Cavusoglu discussed the plan with Russian Foreign Minister Sergei Lavrov in Ankara last week, but said further discussions with Moscow and Kyiv were needed. Lavrov then said the onus was on Ukraine to clear mines around its ports for commercial ships to approach. read more

Moscow denies responsibility for the food crisis, blaming Western sanctions.

Turkey, which has the second-biggest army in NATO and a substantial navy, has good relations with both Kyiv and Moscow, and has said it is ready to take up a role within an “observation mechanism” based in Istanbul if there is a deal.

Turkey state broadcaster TRT Haber said a hotline had also been created between Turkey, Ukraine and Russia. Over the hotline a general from each country can take part in talks to “discuss the issue more closely and reach a result”, it said.


Alistair Hackett, managing director of Ocean Safety, talks about the risks of a cost-conscious industry and how sailors need to make safety their real priority.

The last two years have been turbulent for the marine safety arena – as it has for many industries – however the future is positive, according to Hackett. “The core principle of the business has always been to supply knowledge, advice, solve problems for customers and provide top-of-the-range safety equipment. We must never become ‘box shifters’ of average quality product – there is too much average quality product in our industry,” warns Hackett.

“Like everything in the world, safety equipment has become more and more cost conscious,” he explains. “While the standards of regulation are constantly improving – which is a great thing – what we are finding is that more people are wanting to build product to the lowest cost possible that meets the regulation. And whilst in some areas of the industry there is a definite market for that, this is safety equipment that we’re talking about. We should be in a position as an industry where we constantly strive to make sure that all of the kit that the industry supplies to individuals is to the very best of its ability, the highest standard that can possibly be used afloat.

“So you constantly have this battle within industry of what’s cheapest but ticks the box and what is actually best suited for the environment it’s going to be used in. And bear in mind that we are dealing with product that’s very, very rarely used.

“Don’t get me wrong. You are far better to have the equipment than no equipment at all – everybody has to tailor the budget to their own desires,” Hackett says.

While sailors can ‘tick the box’ and physically have the required equipment on board to enter a race, regatta or event, is it the best their budget allows for? And, crucially, have they spent the time understanding the equipment and does all the crew know how to utilise it effectively?

Hackett (pictured left) – and many marine safety experts – warn of the risks of consumer complacency whereby the public never believe an emergency afloat will happen to them. While the vast majority of sailors will cite safety as top of their priority list on board, Hackett says in reality the time spent learning about safety products, how to store, use and deploy them doesn’t reflect this.

“I’ve had lots of discussions with people undertaking the Fastnet race, entering high-end yacht races or families who are going off on some sort of major bluewater trip and when you talk to them about safety, they’ll say it’s right at the top. And yet, in reality, if they’ve just spent £25,000 on new sails and £15,000 on safety equipment, I can guarantee you that the crew will spend far more time trying to learn how to use their new sails to make the yacht go faster than they will do practicing man overboard and other safety drills.”

“That’s again where it falls into the ‘it won’t happen to me’ bracket. And so you end up in this scenario where you are constantly trying to persuade people to take as much interest in maritime safety as they possibly can because you have to make sure that they understand that it might just be them who crashes into a container in the middle of Christchurch Bay and the boat sinks in two minutes. And when that happens, that is not the time to start learning how your safety kit works.”

Hackett speaks from realms of experience – after sailing and racing all his early life, he got fully involved in the offshore marine industry in 1990 when he started work for Chay Blyth’s The Challenge Business, and went on to become logistics director for all four Global Challenge events, which lead to working with the team responsible for 51 circumnavigations over a 16-year period. In the role, he worked closely with Ocean Safety as the events principle safety supplier, which led to a natural progression into the marine safety industry in 2006. A member of the RORC Special Regulations Committee, he also sits on the World Sailing Safety Committee and during his time at Ocean Safety, Hackett has managed the safety training for the last four Volvo Ocean Races.

“It’s really important that people have a desire to want to learn how their safety equipment all works, which is why things like a sea survival training courses are so important and why talking to people is so critical.

“Buying the equipment is ten per cent of the story. The owner and everybody in the crew has to understand how that equipment works, when to use it, what are the implications of using it, and so on.”

Despite safety equipment rarely being used onboard, Hackett believes: “It’s incumbent on the industry that we all push as hard as we can to make sure that people understand the intricacies of using safety equipment. Because when we do have to use it, that is not the time to start reading the instructions. You’ve got to understand it right from the get go.”

To move things forward and increase consumer awareness and maritime safety onboard, Hackett says more discussion and more practice is needed. He cites the RYA and RNLI’s ‘useless unless worn’ lifejacket campaign as a hugely successful message that changed attitudes towards lifejackets.

“[The campaign] was just unbelievable and has transformed attitudes. Interaction with the products has just gone through the roof along with people’s understanding of lifejackets and what they can do for individuals. Couple that with event organisers and regulatory bodies stating, ‘right, you must wear a lifejacket to do this or you must have lifejackets to do that’, and all of a sudden the industry has seen a massive increase [in lifejacket use on the water]. And also a massive improvement in the design of the product – because if people have to wear lifejackets they want them to be comfortable and to look half decent. And secondly, because the rules say that they have to have them and they have to wear them in certain conditions it puts them in a position whereby they think okay, well if I’ve got this thing I’ve got to wear it what do I have to do with it? How do I use it? When do I use it? How will it integrate with my integral AIS unit that was built into it? So it just promotes this discussion and advancement.

“We need to make sure that there are campaigns like that constantly running so that people understand what’s involved in maritime safety,” he adds.

Hackett says the leisure sector has some great opportunities as end users become more interested in their need for safety equipment. Developments in lifejacket technology will continue and how they integrate with more MOB electronics is coming to the fore. “As such a personal lifejacket will become more technical in design and use. The need to always produce smaller and lighter products will always be there so looking at new fabrics for liferafts and so on will continue. In addition, it is important that customers always get value for money so looking at extended periods of service for equipment is an interesting area however it is often difficult to justify due to the environment the equipment is stored in.

“Like most industries, protecting the environment is important and the inflatable products we use nearly all use large volumes of CO2 to inflate them and the fabrics are mainly polymer-based. Working towards ‘cleaner’ products will always be at the forefront of development going forward.”


The U.S. Merchant Marine Academy cadet formerly known only as “Midshipman X” has now revealed her identity. She is Hope Hicks and is one of two USMAA students who are filing related complaints against Maersk Line Limited in New York state court.

The complaints are being filed on the plaintiffs’ behalf by law firms Sanford Heisler Sharp and Maritime Legal Solutions. They allege that Maersk failed to adequately protect USMMA midshipmen from sexual assault and sexual harassment while working aboard Maersk ships as part of the USMMA’s Sea Year program.

Hope Hicks, whose complaint was filed yesterday, shook the maritime industry last year when, under the name “Midshipman X,” she publicly described her treatment while serving as an engine cadet aboard a Maersk Line ship, identified in yesterday’s filing as the Alliance Fairfax

SAME SHIP NAMED IN BOTH FILINGS

The second complaint is being filed on behalf of another USMMA student under the name of “Midshipman-Y.” She simultaneously filed a motion under a New York law that provides parties with the right to proceed anonymously where special circumstances concerning the plaintiff’s privacy and the nature of the proceedings outweigh the presumption of openness in court proceedings.

According to the complaint, that will be filed once the motion for anonymity is granted, Midshipman-Y was so severely sexually harassed aboard a Maersk ship (again identified as the Alliance Fairfax), during her Sea Year that she slept clutching a knife for protection.

Sanford Heisler Sharp notes that the USMMA Sea Year Program requires, as a precondition to graduation, that students work on commercial ships for months at a time to gain practical shipboard experience. Maersk and other commercial shipping companies contract with the federal government and receive subsidies in exchange for, among other things, employing students from the USMMA during their Sea Year.

Hicks’ complaint alleges she was the only woman aboard her assigned Maersk vessel during her Sea Year in 2019 and that, while on board, she was raped by one of the ship’s top-ranking officers, a man more than 40 years her senior. According to the complaint, when Hicks confronted the officer, she was told no one would believe her if she made a report. According to the complaint, Hicks suffers from severe and ongoing emotional distress as a result of the traumatic events she experienced on the Maersk vessel.

Midshipman-Y’s complaint alleges that she experienced extreme sexual harassment, unwanted touching and discrimination while on board the same Maersk vessel two years later. According to the complaint, Midshipman-Y was severely sexually harassed by a crewmember who was known to other Maersk officers and crewmembers as being violent. Although crewmembers and officers were allegedly aware of the harassment, no one intervened or reported the misconduct. The complaint further alleges that Midshipman-Y was treated less favorably than male crewmembers on account of her gender.

“Driven to desperation, at the first opportunity, Midshipman-Y begged USMMA representatives to get her off the ship prior to the completion of her required sea time,” says Sanford Heisler Sharp. “As a result of the traumatic experience, Midshipman-Y had to take an academic setback and is unsure if she will ever be emotionally capable of completing the USMMA.”

According to both complaints, Maersk was aware of the prevalence of sexual assault and harassment on its ships. Specifically, U.S. Transportation Secretary Anthony Foxx suspended the Sea Year program in 2016 amid allegations of rampant sexual assaults and harassment of cadets during Sea Year voyages. Once reinstated, regulations required Maersk and other shipping companies participating in the Sea Year program to enact and enforce procedures to protect against sexual assault and harassment of USMMA midshipmen aboard their vessels.

“FORSEEABLE AND PREVENTABLE”

“What happened to Hope and Midshipman-Y was both foreseeable and preventable by Maersk,” said Steven J. Kelly, partner at Sanford Heisler Sharp and counsel for plaintiffs. “Maersk acknowledged that it owes a special duty of care to USMMA cadets, yet even after the Sea Year program was reinstated in 2017, Maersk failed to implement and enforce adequate policies and procedures to protect these young women.”

The complaint alleges that even after the 2016 temporary suspension of the Sea Year program, Maersk was complacent about its sexual assault and harassment prevention duties. According to the complaint, Maersk’s indifference to its duties was evident when one of Hicks’ Maersk supervisors tasked her with logging onto a computer and completing the required sexual assault and harassment training on behalf of a number of other crew members. Following the publication of Midshipman-X’s story, Transportation Secretary Pete Buttigieg again suspended the Sea Year program in November 2021.

“Speaking up against a powerful corporation is intimidating, which is why, up to this point, Hope has declined to reveal her identity, opting instead to go by the moniker Midshipman-X,” said Christine Dunn, partner at Sanford Heisler Sharp and counsel for plaintiffs. “But, today, Hope is publicly identifying herself in an effort to seek justice for the sexual assault and harassment that she, and others – like Midshipman-Y, endured aboard Maersk vessels.”

Ryan Melogy, Founder of Maritime Legal Solutions and co-counsel for plaintiffs, who is himself a USMMA graduate, noted that “For years there have been reports of widespread sexual assault and harassment in the maritime industry, yet nothing has changed. Now real change may finally be on the way thanks to the bravery of survivors like Hope and Midshipman-Y. These courageous young women are standing up, speaking out, and saying “this has got to stop!”


Approximately two (2) months before the end of the Duterte Administration, the Philippine Coast Guard (PCG) conducts the formal commissioning of its first 97-meter multi-role response vessel (MRRV) into the Coast Guard service – the Barko ng Republika ng Pilipinas (BRP) Teresa Magbanua, named after one of the strongest and bravest female warriors in Philippine history.

On behalf of President Rodrigo Roa Duterte, Department of Transportation (DOTr) Secretary Arthur Tugade leads the commissioning ceremony at Pier 15 within Port Area, City of Manila on May 6, 2022.

Japan Ambassador to the Philippines, His Excellency Kazuhiko Koshikawa and Japan International Cooperation Agency (JICA) Chief Representative Takema Sakamoto also grace today’s momentous event.

The BRP Teresa Magbanua (MRRV-9701) has a maximum speed of not less than 24 knots, an endurance of not less than 4,000 nautical miles, and is capable of conducting sustained maritime patrols in the country’s maritime jurisdictions.

It is modeled after the Japan Coast Guard (JCG) Kunigami-class vessels and is expected to improve the PCG’s maritime security and maritime safety operations in the vast exclusive economic zone of the country.

The second 97-meter MRRV that will be commissioned as BRP Melchora Aquino (MRRV-9702) is slated to arrive in Manila next month.

The BRP Teresa Magbanua (MRRV-9701) and BRP Melchora Aquino (MRRV-9702) are part of the DOTr’s Maritime Safety Capability Improvement Project (MSCIP) Phase II to intensify the modernization of the PCG.


President Rodrigo Roa Duterte led the commissioning Sunday of the Barko ng Pangulo ng Pilipinas (BRP) Melchora Aquino of the Philippine Coast Guard (PCG), which is expected to improve its capability to monitor the country’s costlines.

During the commisioning in South Harbor in Manila, President Duterte expressed his gratitude to the Department of Transportation (DOTr) for a job well done.

“The Coast Guard has an excellent record and participation even sa struggle sa Mindanao. You have helped government a lot maintaining its independence and integrity as a republic. So bilib ako sa inyo,” he said.

“And I said at no other time na ang Coast Guard binigyan ng importansiya. At I can only thank my classmate, Arthur Tugade, for husbanding the entire agency sa Coast Guard.”

The President read the commission order before the MRRV 9702 commanding officer and granted the official permission, commencing BRP Melchora Aquino’s official duty as a commissioned vessel.

Named after Filipino revolutionary Melchora Aquino, who was considered the Mother of Katipunan, the MRRV 9702 is one of the two largest white ships acquired by the DOTr for the PCG through its Maritime Safety Capability Improvement Project (MSCIP) Phase 2.

The newly commissioned vessel will conduct sustained maritime patrols in the country’s maritime jurisdictions, including the West Philippine Sea and Philippine Rise.

The BRP Melchora Aquino is modeled after the Japan Coast Guard’s Kunigami-class vessel that has a maximum speed of not less than 24 nautical miles per hour and endurance of not less than 4,000 nautical miles.

It is similar with BRP Teresa Magbanua (MRRV 9701), another vessel acquired by the government. PND


Korean Register (KR) has developed a new class notation for the safe marine transportation of electric vehicles, as a result of its collaborative research with leading Korean shipping companies and shipyards.

The new class notation, which is called ‘AFP-C(EV)’, was developed following cooperation with Korean shipyards and a joint research project conducted last year with Hyundai Glovis and G-Marine Service which sought to develop safety measures for vehicle carriers transporting electric vehicles.

With an increasing number of electric vehicles being transported on vehicle carriers and some recent high profile and serious onboard fires, the maritime industry’s interest in fire safety for such voyages has increased dramatically.

The International Maritime Organization (IMO) and other related organizations have emphasized the need to develop safety regulations for the marine transport of electric vehicles. However, detailed regulations are still in the discussion stage and to date, no realistic guidelines have been issued.

KR’s newly developed ‘AFP-C(EV)’ will be assigned to vehicle carriers that meet specific requirements related to fire detection and fire extinguishing facilities, and the notation will reflect realistic safety requirements.

“Our newly launched class notation will help to improve safety onboard vessels carrying electric vehicles. KR will continue to provide high-quality technical services and contribute to marine safety using the results we have acquired from our collaboration with maritime industry,” said KIM Yeontae, Executive Vice President of KR’s technical division.
Source: Korean Register


The shipping industry needs a fixed carbon price to mitigate the uncertainties of its energy transition and to avoid manipulation of carbon markets, the secretary-general of the International Chamber of Shipping said June 9 in an interview.

The industry has come to widely accept that carbon must have a cost, under the polluter pays principle, but opinions remain divided over exactly who that polluter is and how they should pay.

There have been extensive discussions in the European Union on including shipping in its emissions trading scheme, although these struck a roadblock June 8 when the European parliament rejected a series of proposed reforms to the ETS.

The ICS is against regionalized regimes and believes in direct funding for shipping’s energy transition, something which the earlier EU ETS proposal would not have provided, instead directing proceeds to a general taxation fund. “We believe in a global system; market-based measures are the best way of achieving those aims,” Guy Platten, ICS secretary-general, told S&P Global Commodity Insights on the sidelines of Posidonia 2022, a shipping industry event in Athens.

This must come from the International Maritime Organization and ensure proceeds go directly to research and development for investment in sustainable fuels for shipping, he said.

Price volatility

In Europe, shipping companies are set to be included in the EU ETS under proposals currently being discussed by lawmakers, although the June 8 surprise rejection could set the legislative process back by months. The legally binding scheme, which currently includes power generators, factories and airlines, requires companies to have their CO2 emissions independently verified by third party auditors and to surrender carbon allowances to match their annual emissions.

EU carbon allowance prices increased by 139% in 2021 on higher demand due to an economic recovery and increased use of coal for power generation, as well as on expectations of tighter supply in future due to legislative reforms.

EU Allowances for December 2022 delivery were pegged at Eur80.14/mtCO2e ($85.90/mt) at the close June 8, according to Platts assessments published by S&P Global Commodity Insights, down from Eur80.80/mtCO2e on June 7.

Outside of the compliance markets, many companies are also setting voluntary targets to reach net-zero emissions by 2050 and buying and retiring carbon offset credits to neutralize any CO2 emissions that cannot be reduced.

CORSIA-eligible carbon credit prices gained 900% in 2021 and were assessed by Platts at $5.05/mtCO2e at the close June 8, unchanged from the previous day.

Some market sources believe market-based trading schemes such as this are the fairest way to price carbon and that such a mechanism, with fluctuations in price, is more palatable in the US, where there is more ideological opposition to a flat rate, which is construed by some as an externally imposed tax, a diplomatic source said.

However, a flat rate confers the important quality of predictability, Platten said. “A levy is the simplest, most transparent way of doing it. We would very much advocate a levy, which is something you can plan for,” he said.

Global needs

The EU is not the only region where there has been talk of an ETS.

There has been discussions about comparable schemes in other regions, for example in the US. “This fractionalization of all the different schemes will be an absolute nightmare,” Platten said. Shipping is by its nature an international business and it needs a global approach, he added.

However, with no clear proposal on global carbon pricing so far from the IMO, it may take bold actions from regional actors such as the EU to lead the way and hopefully galvanize the IMO, one shipping source said.
Source: Platts


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