1. Say it for seafarers
2. A cracking judgment
3. Shore power notation
4. War risks
5. Near miss
6. Freight training course
7. EU ETS advice
8. Supply chain chaos
9. Ministerial message
10. IACS meeting
11. Market trends
Readersâ responses to our articles are very welcome and, where suitable, will be reproduced. Write to: contactus@themaritimeadvocate.com
1. Say it for seafarers
By Michael Grey
We are terribly worried about our supply chains these days, now we realise that they stretch rather further than the delivery van. It is a concern that was illuminated in the past year, with the spectacular interruption to the westbound voyage of the Ever Given, followed by the revelation that the excitingly expanded Panama Canal was running out of water. Our reliance on global supply chains and globalism in general was strained to the utmost because of the pandemic, when people realised that the garden furniture they had ordered was not going to arrive before the onset of winter and possibly even the following one. The word âon-shoring,â which is not one I would have made up, became common parlance among thrusting City types. âJust in Time,â whether we are talking domestically about the non-delivery of Christmas cards, or that delayed shipment of time-sensitive goods, has become something of a redundant term.
Now the worriers are back with a vengeance, about what cargoes will not arrive in time because of delays and diversions caused by the Iranian-backed Red Sea pirates, which is the only appropriate word to describe those who fire upon passing merchant ships, or hold seafarers to ransom. Will the January sales fail to make their targets because the goods which ought to be in the shops are trundling all the way around the Cape of Storms, or lurking indecisively in the Arabian Gulf or Eastern Med, ship operators wondering what guarantees of protection might be afforded by the military escorts, if they press ahead into the Red Sea?
But we do not, in all the meaningful talk about extended supply chains and whether the goods will arrive in time to get the boxes unloaded and the empties despatched to the East again, hear anything very much about the effect of this violence upon the people who make it all happen. Thatâs the seafarers, who embark upon a new year in a very uncertain climate, with all the nastiness now loose upon our world, and which they cannot, because of their employment, avoid.
None of them would have taken up seafaring employment in the expectation that they would find themselves targeted by an explosive drone or guided missile, just because they happen to be passing within range, and some Revolutionary Guard analyst has detected that there might be some small link with Israel in the ownership of their vessel. It is not much comfort to realise that if the pirate at the controls of the drones succeeds in his mission, the seafarers, once again, become just the collateral in this conflict, as they always are.
It might be that these days there is rather more humanity being shown by ship operators, who have demonstrated their reluctance to see their ships and crews hazarded by high explosive. We have probably learned a bit since the 1980s âtanker war,â when the crews were the collateral when the heroic aviators of Iran and Iraq attacked their ships, but they were expected to just keep on sailing into these hazardous waters, regardless. At least with these latest attacks, there has been something of a pause, as the navies got their protection together and people checked with their insurers.
There is rather too much in the way of man-made hazard facing seafarers as they sail into 2024. The Black Sea is no place for faint hearts, with mines, missiles and real danger in a trip to the ports of the Ukraine. The hostage takers seem to be gathering their forces in the shambles that is to be found in the Horn of Africa and they have never gone away in the Gulf of Guinea, despite the efforts of the coastal states. There are attacks by sea-robbers and maritime thugs in the waters of South-East Asia, a function, it is said, of economic deprivation in their coastal communities.
And something which seafarers in an earlier age never had to face is the insidious increase in the power of the narcotic gangs of South America, who treat merchant shipping as one of their favoured supply chains. Enormous quantities of cocaine and other hard drugs are being funnelled into the major European ports in legitimate cargoes, as well as in underwater hiding places.
Often the seafarers, whose ships are thus utilised, will have to prove that they are innocent of collusion; invariably there will be delay, inquisitions and grief, people held for months or even years, while investigations proceed. Ships crews will be just collateral in another sort of war. We ought to remember what they are facing when our supply chain lengthens in 2024 and wish them smooth seas, fast passages and freedom from all this man-made misery on their voyages.
Michael Grey is former editor of Lloydâs List
2. A cracking judgment
Brian Perrott and Stephanie Morton of HFW have put together some words on the issue of a blast from the past in the law firmâs online series of London Calling comments.
This matter related to a WWII bomb unearthed on a site in Exeter (1). A controlled detonation took place which damaged nearby halls of residence belonging to the University of Exeter.
The University sought to recover physical damage and business interruption loss under its insurance. The insurers declined the claim on the basis of an exclusion for “any consequential loss occasioned by war”. It was agreed by the parties that this gave rise to a proximate cause test.
The Court of Appeal held that the dropping of the bomb was an act of war. It considered that two concurrent causes arose here â the dropping of the bomb and the controlled detonation 80 years later.
The Court assessed that these two causes of the damage were of approximately equal efficiency. Neither would have caused the damage without the other. Furthermore, this combination of causes made the damage inevitable. The fact that one cause occurred much earlier than the other did not necessarily make it less potent.
Consequently, the Court of Appeal applied the Wayne Tank principle. In cases of two concurrent causes, one of which is excluded and the other not, then the exclusion would prevail. As such, there was no insurance cover.
Comments
Loss frequently results from a series of interconnected events. This can give rise to complicated questions of causation.
This case serves as a reminder that the proximate cause will not necessarily be the last one in time. In fact, the Court of Appeal made the point that it may often be the first in time. Where there are potential concurrent causes, timing may not necessarily be indicative of relative efficiency.
(1) The University of Exeter v Allianz Insurance Plc [2023] EWCA Civ 1484
3. Shore power notation
DNVâs updated Shore Power class notation for tankers provides crucial guidance for shipowners who wish to take advantage of shore power while lying at berth. The rules were developed in close cooperation with industry organizations to ensure practicability.
Ports and coastal states around the world have passed or are preparing legislation to curb air pollution from ships lying at berth, and to help cut carbon emissions in general. Using shore power is a great way for ships to keep their on-board systems running without emitting smoke and CO2. As the first rule set of its kind, DNVâs updated Shore Power class notation, effective as of 1 July 2023, addresses the specific safety needs of tankers.
Recent legislative advancements have prompted tanker owners to inquire about rules and standards for shore power for their ship type. The latest version of the California Air Resources Boardâs (CARB) Ocean-Going Vessels At-Berth Regulation, published on 1 July 2023, requires tankers to have emission control strategies in place at specific Californian ports from January 2025. The EU has adopted similar legislation for container and passenger vessels, the ship types with the highest non-propulsion power demand, as part of the Fit for 55 package, including requirements for onshore power supply.
While the EU regulations do not apply to tankers, the unrivalled simplicity of plugging in a cable makes âcold ironingâ an attractive option to meet emission control requirements during port stays of nearly any ship type. What has made the development of appropriate rules for tankers difficult is the type of cargo they carry. âAt DNV, our primary focus is on safety. With tankers that often carry potentially flammable cargoes, the electrical risks can be greater than for dry bulk carriers and containerships. This requires more attention to system safety both on board and on the quayside,â explains Catrine Vestereng, Senior Vice President and Global Segment Director Tankers at DNV Maritime.
For the full details see the DNV website.
4. War risks
In light of recent developments, BIMCO recommends using the latest editions of its War Risks clauses: BIMCO War Risks Clause for Voyage Chartering 2013 (VOYWAR 2013) and BIMCO War Risks Clause for Time Chartering 2013 (CONWARTIME 2013). These clauses contain a broad definition of âWar Risksâ that include warlike operations and hostilities that do not require a declaration of war by states.
However, it is of utmost importance that all parties involved have a comprehensive understanding of these clauses, ensuring they are well-informed and prepared for any potential outcomes.
The maritime industry has recently seen a surge of attacks in the Southern Red Sea and the Gulf of Aden. A Yemen-based rebel group called the Houthis has threatened that all ships coming from or going to Israel, and all ships with links to Israel or Israeli nationals, will be considered a potential target. While this significantly increases the risks for vessels falling within said criteria, the risks to vessels not falling within the criteria are limited to risk of collateral damage, and therefore lower. However, the situation is volatile and may change rapidly.
In reaction to the Houthi threats, some owners have halted passages through these areas. Because the threat to vessels varies with the degree to which they fall within the Houthi- defined criteria, the situation brings to light the need for owners to review their War Risk Clauses. They must carefully evaluate whether, and under which circumstances, they can refuse to navigate specific routes to minimise exposure to hostile acts which could jeopardise their crew and vessel.
Owners’ rights to request alternative orders
Under VOYWAR 2013, Owners have certain rights that they can exercise under specific circumstances. These rights are detailed in subclauses (b), (c), and (d).
Subclause (b) gives Owners the right, before loading begins, to cancel the charter party or refuse to perform any part of it that may expose the vessel, cargo, crew, or other persons on board to âWar Risksâ, based on the reasonable judgment of the master and/or owners. If, however, the contract provides for loading or discharging within a range of ports and the nominated port(s) may expose the vessel to âWar Risksâ, the owners shall first ask the charterers to nominate a safe port within the range. They can only cancel the contract if the charterers do not nominate a safe port within 48 hours of receiving the request.
Looking to subclause (c), it stipulates that owners are not obligated to continue loading cargo, sign bills of lading, or proceed on any voyage or part thereof, including through any canal or waterway that may expose the vessel, cargo, crew, or other persons on board to âWar Risksâ. This applies from the commencement of loading to the completion of discharge. If such an exposure should appear, the owners may request the charterers to nominate a safe port for discharge. If the charterers fail to nominate a safe port within 48 hours of receiving the request, the owners can discharge the cargo at any safe port of their choice. They are entitled to recover the extra expenses of such discharge from the charterers and, if the discharge takes place at a port other than the loading port, to receive full freight as if the cargo had been carried to the discharging port. If the extra distance exceeds 100 miles, they are entitled to additional freight proportional to the extra distance.
Under subclause (d), owners have the right to alter the route of the voyage if they reasonably judge that the vessel, its cargo, crew, or other persons onboard may be exposed to âWar Risksâ at any point after the loading of cargo has begun. This applies to any part of the route, including canals and waterways, which are typically used for a voyage of the contracted nature.
If there’s an alternative, albeit longer, route to the discharging port that is deemed safer, owners can decide to take this route. They are required to notify the charterers of this change. In this scenario, if the total extra distance travelled exceeds 100 miles, Owners are entitled to additional freight. The additional freight will be calculated proportionally to the extra distance travelled, represented as a percentage of the original freight contracted for. This essentially means that the additional freight would be the same percentage of the contracted freight as the extra distance is to the distance of the original, normal, and customary route. This subclause gives Owners the flexibility to prioritise the safety of the vessel and its crew by altering the route while also providing for the recovery of additional costs incurred due to the longer route.
The BIMCO War Risks Clause for Time Chartering 2013, grants similar rights through subclause (b). It states that the vessel shall not be obliged to proceed to or required to continue to or through any port, place, area, waterway, or canal (“Area”) if the master and/or owners in their reasonable judgement believe it could expose the vessel to “War Risks”. This applies regardless of whether the risk existed on the day of the charterparty or if it emerged later.
If the vessel is already in an “Area” that subsequently becomes or is likely to become dangerous, the vessel is free to leave that “Area”. This clause allows owners to refuse charterers’ orders under certain conditions, requiring charterers to order the vessel to a safe port for either loading or discharging, depending on the situation.
Unlike VOYWAR 2013, CONWARTIME 2013 doesn’t consider the timing of threats arising. In time charters, the charterer, who takes over the vessel operation upon delivery, bears costs and delays if owners justifiably refuse voyage orders. Under such charterparties, which include the CONWARTIME 2013 clause, charterers must employ the vessel according to the charterparty’s terms.
Legal Considerations and implications of rerouting
Considering the current volatile situation in the Southern Red Sea and the Gulf of Aden, the ongoing attacks in these regions may provide possible grounds to invoke the VOYWAR 2013 or CONWARTIME 2013 clause. However, the decision to refuse to proceed or reroute under these two clauses must stand up to legal scrutiny. Specifically, under English law, such a decision must not only be made in good faith but must also be “objectively reasonable”. The Triton Lark [2012] case reinforces this, stipulating that owners should make “all necessary enquiries” before deciding on a course of action such as refusing to proceed.
While these clauses provide a means to prioritise safety, invoking them could result in financial implications for charterers. For instance, invoking the VOYWAR 2013 clause may lead to additional freight charges. Similarly, invoking the CONWARTIME 2013 clause can result in extra hire days and increased fuel costs for time charterers. In both scenarios, it may also have a bearing on the bill of lading holders.
n practice, an owner’s possibility to refuse to proceed on a particular route under these clauses will depend on the specifics of the contract and the situational facts for the particular voyage and vessel. It is an evaluation which must be carefully made taking all aspects into account. Given the circumstances in the Southern Red Sea and the Gulf of Aden, it is crucial also to consider the extent to which the vessel meets the criteria defined by the Houthi.
Conclusion
The inherent complexities and risks within the maritime industry, particularly for vessels navigating high-risk areas such as the Southern Red Sea and the Gulf of Aden, highlight the critical importance of the VOYWAR 2013 and CONWARTIME 2013 clauses. These clauses serve as important tools for owners, enabling them to prioritise safety in hostile and warlike situations. However, all parties involved must fully comprehend the potential financial implications that may arise from invoking these clauses.
In situations of doubt, and in any case before attempting to invoke a war risk clause, it is imperative to seek legal advice and / or consult with a P&I Club. This helps ensure informed decision-making that effectively balances safety concerns with financial considerations. It further addresses the legal implications of making decisions based on the war risk clause contained in a charterparty – especially in situations currently seen in the Southern Red Sea and the Gulf of Aden where all situations must be evaluated individually.
5. Near miss
The International Marine Contractors Association has outlined the details of a near miss during lifting operations.
A member of the deck crew put themselves in the line of fire during landing of a structure on the back deck of a vessel. The installation aids (bumper bars) were insufficient to stabilise the load, resulting in the structure being landed narrowly missing the individual, and damaging an adjacent container. The bumper bars were a critical barrier for keeping the banksman safe on the walkway but as they were not spaced far enough apart for the structure, they allowed a rotational movement of the load.
What went right
Before landing the structure, the area had been barriered off and non-essential personnel removed from the area;
All the containers were checked to ensure no-one was working inside them during the lift.
What went wrong
The individual was focused on landing the structure in a tight space and was relying on the bumper bars to keep him safe in the event of unplanned movement of the structure.
Even though the design of the installation aids (bumper bars) was within the vesselâs design code, they were not there to protect people, but there as aids to landing and moving structures around the deck without damage. As they were not designed for personnel protection, the distance between them was not considered.
Lessons and actions
There was a general misconception that installation aids can be used as personnel protection devices, but this is not their design nor their appropriate use;
Moving the counterweight location and bumper bars was seen as an improvement by the vessel team and therefore they did not go through a Management of Change (MOC) process. Even perceived improvements may have negative consequences and need to be managed;
Despite all the good work done in pre-job planning, the banksman still put himself in the line of fire. In hindsight, this area should have been a complete no-go zone.
Take into account when planning work, the difference between âwork as imaginedâ and work as actually done;
Remain aware of the close environment and understand that during lifting activities, the exclusion zone may change;
Review tasks where installation aids are being relied on for personnel protection. Should a wider exclusion zone be put in place for these tasks?
6. Freight training course
January 2024 will see the British International Freight Association (BIFA) add a new training course to its one-day freight essentials training portfolio.
Introduction to Freight has been designed for anyone who is a complete newcomer to the world of freight and logistics and is a practical course for beginners that will give participants a good foundation in the processes involved when importing and exporting goods.
BIFAâs freight and customs training courses aim to be the most engaging within the industry, whether that be an online class, face-to-face, or eLearning. Delivered by a team of industry experts, the various courses have gained a well deserved reputation for being very informative and delivering great value for money; and that will be the case for the new course. In 2023, BIFA has trained over 1000 learners face-to-face on its various courses.
By the end of the course, participants can expect to be able to identify all parties involved in the process of importing and exporting goods, whilst understanding the process of a shipment, as well as the roles and responsibilities of the freight forwarding and logistics company and the various carriers involved.
Furthermore, the course will ensure that they will be able to determine the main elements required when arranging a shipment between a buyer and seller; and understand the common documents that may be needed and are used within the industry.
The course will define why shipping instructions are required and explain their roles and responsibilities.
It will also explain the differences between the commercial invoice and the packing list, and determine information that needs to be provided; whilst providing an overview of Incoterms 2020 and their role in the terms of sale.
Carl Hobbis, member services director at BIFA, who has management responsibility for the trade associationâs training and development services said: “The course is an ideal starting point from which to move on to BIFA’s âFreight Forwarding Essentialsâ and âCustoms Essentialsâ courses, which give more insight into specific aspects of the logistics industry and customs processes, respectively.
“Anyone working for a BIFA member wishing to participate in the new course can take advantage of a special introductory offer and save ÂŁ100 when they book and secure their spot on this course for only ÂŁ190.â
Full details of all BIFAâs training courses can be seen here: https://bifa.org/training-development/courses/.
7. EU ETS advice
The EU ETS (Emissions Trading Scheme) regulation coming into force on 1 January 2024 will have a transformative impact on the maritime industry. Shipping companies operating under the EU ETS will have to further optimise voyages to mitigate the increased costs of CO2 emissions. To help clients to manoeuvre in this challenging new regulatory environment, Weathernews has updated its SeaNavigator content and service offering to include:
⢠Enhanced data management: Resilient data collection to minimise errors in ship reports.
⢠Validation and monitoring: Comprehensive data validation together with a smart ship-reporting tool to prevent errors in the report.
⢠Automated EU ETS voyage data record: Identification and calculation of CO2 impact during EU ETS-covered voyages.
⢠Streamlined voyage records: User-friendly features for keeping and managing EU ETS voyage records.
These new features include the integration of simulation and predictive capabilities enabled by bespoke AI-driven machine-learning technology. With the EU ETS requiring precise voyage estimates, Weathernews’ smart solution allows users to simulate vessel routes using different speeds and even changes of destination, so they can accurately estimate voyage time (ETA), fuel consumption, and the CO2 cost impact.
The vessel performance database behind this function includes not only ships already using Weathernewsâ routing service, but all other vessels submitting AIS data â amounting to over 32,000 ships globally. This broader coverage empowers customers’ chartering managers, operation managers, and commercial departments to make informed decisions regarding voyage costs both pre- and post-fixture.
8. Supply chain chaos
Consumers around the world will pay the price for the unfolding crisis in the Red Sea after missile attacks on merchant ships plunged supply chains into chaos.
Latest data from leading industry analysts Xeneta shows spot rates in the ocean freight shipping market spiked by 20% after major shipping liner companies announced they were avoiding the Red Sea amid the attacks by Houthi militia.
Peter Sand, Xeneta Chief Analyst, said: âThe region is essentially in a war situation because it is too dangerous for many vessels to sail through the Red Sea and therefore also the Suez Canal, which is the major artery for world trade.
âShips are now being re-routed via the Cape of Good Hope, but not only will this add up to 10 days sailing time, it will cost up to USD 1 million extra in fuel for every round trip between the Far East and North Europe.
âIf we look at container shipping alone, Xeneta estimate the diversion via Africa will also require additional shipping capacity in the region of one million TEU (20ft equivalent shipping containers).
âThere is capacity in the market, but it will come at a cost, and we could see ocean freight shipping rates increase by 100%. This is a cost that will ultimately be passed on to consumers who are buying the goods.â
US Secretary of Defense Lloyd Austin recently announced âOperation Prosperity Guardianâ, a coalition task force to combat the Houthi attacks and protect merchant ships sailing through the Red Sea and Gulf of Aden. This builds upon the existing Task Force 153 in the region to tackle piracy.
Sand added: âWe are now seeing action from politicians, but we do not know how or when this coalition will be successful in opening safe passage for vessels through the Red Sea and Gulf of Aden.
âEverything is at stake here because free-flowing global trade affects almost every single human being on earth. The Suez Canal is absolutely critical with many billions of dollars in goods passing through every day from the Far East towards North Europe, Mediterranean and US East Coast.
âOcean liner companies are taking decisive action in re-routing via the Cape of Good Hope but there are still many unknowns and the longer this disruption lasts the more expensive and painful it will be.
âSupply chains have still not fully recovered from the pandemic, with schedule reliability between Far East and North Europe standing at just 64%. This latest crisis could set that recovery back even further.
âFor example, Maersk has stated it does not know when it will be safe to sail through the Bab-el-Mandeb Strait and CMA CGM Group has issued a notice of Force Majeure, which perhaps suggests they do not believe this situation will be resolved in the immediate future.
âWe may also see this impact current negotiations between shippers and ocean freight carriers for long term contracts lasting the duration of 2024. Shippers may feel a level of concern that long term rates could follow the spot market and increase dramatically as a result of this crisis.â
9. Ministerial message
In his first public address to the maritime industry, the new Maritime Minister, Lord Davies of Gower, told those gathered for Sailorsâ Societyâs annual Carol Service that this Christmas we need to âspare a thought for our seafarers, for their contribution, their safety and their wellbeingâ.
And he said they were âworking in the harshest work environment on the planet.â
Lord Davies said that while âSanta will be travelling the globe, many of the presents under the tree will have been brought to us by seafarers, travelling at much slower speeds than Santa and crossing the oceans with fortitude.â
He told representatives of the maritime industry, funders and supporters of the charity that âseafarers face separation from home and we know this has serious implications for mental health and wellbeingâ, adding that this is why the work of organisations like Sailorsâ Society is so important and why the government was supporting the Mental Health in Maritime pledge.
Thanking the Society for his invitation, Lord Davies said he was delighted to attend the service as this was one of his first public engagements since being appointed Parliamentary Under-Secretary in the Department of Transport last month âI have only been doing this job for a few weeks, so I am delighted to come and speak to you.â
Welcoming the Minister to All Hallows by the Tower, Sara Baade, CEO of Sailorsâ Society, told the 170-strong congregation: âI want to thank you, not just for coming here today but for your continued support. Whether this is through a trust and foundation, through other funding or knitting woolly hats for crew, without you we could not do our work supporting the worldâs 1.9 million seafarers. So, thank you.â
Among those who read the lesson were Ian Wilkinson, Vice President of Sales Excellence, Inchcape, Tony Carroll, Secretary of The Baltic Exchange Charitable Society, Peter Broadhurst, Senior Vice President, Maritime Safety and Regulatory, Inmarsat and Sailorsâ Society Trustee, Catharine Bacon.
All Hallows is the oldest church in the city of London and survived the great fire of London in 1665. It has close links with the River Thames, the Port of London and shipping world-wide. The church is the home of the Maritime Foundation Memorial Book, which records the names, and where possible the circumstances, of people lost at sea with no known grave.
Sailorsâ Society Christmas Appeal https://www.sailors-society.org/christmas-appeal23
10. IACS meeting
IACS Council, meeting recently in London for its 88th session (C88), welcomed the significant progress being made by the Association to deliver measures to ensure the safe decarbonisation of the industry. Work towards Unified Requirements (UR) in support of battery power, hydrogen and carbon capture is well advanced while a UR on Ammonia as a fuel will be published imminently. Alongside IACS submissions to IMO, IACS is meeting its commitment to working closely with flags and industry in the shared drive to decarbonise, most recently through the signing of a Letter of Intent with Singapore and the establishment of a joint industry working group on safe decarbonisation.
As the scale and pace of digitalisation within shipping continues to accelerate, IACS Council emphasised that implementing the many and varied benefits of digital solutions can also introduce new safety risks to the ship. To support industry in managing these changes safely, and recognising the multi-decadal nature of the challenge, C88 agreed to establish a new Safe Digital Transformation Panel (SDTP). Bringing all IACSâ current digitalisation activities within a single forum allows for issues such as MASS, cyber safety, data management and exchange and digital assurance, as well as their associated regulatory structures, to be taken forward in a holistic manner. As with the Safe Decarbonisation Panel, IACSâ new SDTP will focus its attention on the safety implications that accompany increasingly digitised ships and on working closely with industry and equipment manufacturers to ensure that its work programme is carefully tailored to meet the needs and priorities of the shipbuilding and shipowning communities.
Elsewhere at C88, Council was advised that all IACS QSCS audits returned to pre-COVID levels in 2023 and also welcomed the substantial progress that the International Quality Assessment Review Body (IQARB) is making in achieving wider recognition at IMO while also expanding to non-IACS ROs and in allowing greater flag State participation. C88 also noted IACS ongoing engagement with the IMO, both in its contribution to the committees (over 150 papers submitted in the last 24 months) as well as in support of the IMO Secretariat.
Finally, C88 endorsed the election of the new General Policy Group Chairman, Ajay Asok (ClassNK) who will take over from Li Zhiyuan (CCS) on 1 July 2024.
The IACS Council also met with a number of industry association representatives where useful exchanges were held on the implications of decarbonisation for seafarers and port operations, IACSâ plan for industry consultation on the evolution of common structural rules and the consequential impacts, the outcomes from Tripartite and IQARB.
C88 was also the last meeting under the tenure of Nick Brown (CEO LR), whose term as Chairman of the Association finishes at the end of the year and who will handle over to Roberto Cazzulo (RINA) on 1 January 2024.
Speaking after C88, the IACS Chairman said:
âI am delighted that IACSâ new governance arrangements, which saw me become the first elected Chair, have demonstrably improved the agility and responsiveness of IACS. This has allowed us to launch the Safe Decarbonisation Panel (SDP) and the Safe Digital Transformation Panel which positions IACS well for the two major challenges of our time. In combination with our efforts to embed Human Element considerations across the IACS work programme, we are now well positioned to quickly develop and publish common technical requirements necessary for the various alternative fuels and technologies and digital solutions that are being considered by the industry.â
Incoming Chairman, Roberto Cazzulo stated âI am keen to become the IACS Council Chair for 2024-2025. In my experience, I have never seen a moment like this, with great challenges as well as great opportunities for class. A lot of work planned in the next couple of years within IACS will be about safe decarbonisation and safe digitalisation, contributing to the IMO strategy, not forgetting the human element and the role of surveyors and technical staff dealing with novel technologies.â
11. Market trends
Niels Rasmussen of BIMCO said recently in a viewpoint piece that the International Maritime Organizationâs (IMO) targets for the use of zero or near-zero fuels in 2030 can be met using sustainable biofuels. Many different sectors will compete for those fuels, so shipping is focusing on transitioning to alternative green and blue fuels. Today, only 1% of bulk, container, and tanker ships are prepared for using these fuels and fuel availability is low.
The IMO targets that near-zero greenhouse gas emission fuels shall represent at least 5% of the energy used by shipping in 2030, while striving to hit 10%, he said.
âThe 1% of ships currently prepared to burn alternative fuels make up 2% of the fleetâs deadweight capacity. Another 1% of ships and 4% of deadweight capacity are readied for alternative fuels so they can more easily be retrofitted.
âHowever, 29% of the ships and 42% of the deadweight capacity in the order book are expected to be delivered prepared or readied for alternative fuels. Even if no existing ships are recycled, 4% of the fleetâs deadweight capacity will be prepared to burn alternative fuels once all the ships in the order book have been delivered in 2028. And another 4% will be readied for retrofit.
âAs 1-2% of the fleetâs deadweight capacity is recycled every year, the share of the fleetâs deadweight capacity readied or prepared for alternative fuels will end higher by the 2030 deadline. It will be the older ships using bunker fuel that will be recycled, and more ships prepared for alternative fuels can be ordered, delivered, or retrofitted before 2030.
âWith 5% of ships in the fleet and 55% of ships in the order book readied or prepared for alternative fuels, the container sector is expected to reach the highest share of alternative fuel use. Once the order book is delivered, at least 23% of the container fleetâs deadweight capacity will be readied or prepared for alternative fuels. The tanker fleet will reach at least 7% while the bulker fleet will reach at least 4%.
âSo far, LNG has been shippingâs most popular alternative fuel, however, methanol and ammonia have been gaining popularity. Whether enough blue and green fuels will be available for shipping in 2030 has remained a question but with COP-28âs call for a tripling of renewable energy capacity by 2030, it now appears more likely that sufficient green and blue fuels can be produced to allow shipping to meet the 2030 targets â even without biofuels.â
Notices & Miscellany
International Law Firm is Hiring
Law firm Chalos & Co is seeking well qualified litigation associates to work in its New York and Houston offices. The firm handles a wide range of matters including admiralty, maritime (civil and criminal), general liability, commercial disputes, and white-collar criminal defense.
Interested candidates must have federal and state court litigation experience and the ability to handle multiple cases simultaneously. The successful candidates will be admitted to practice law in state and federal courts, have excellent phone and email etiquette, the ability to travel as/when needed and a deep commitment to their clients.
The firm offers a friendly, business casual environment with excellent benefits which include medical, dental, vision, paid vacation, parking, and a retirement savings plan (with employer match).
If interested, please send a CV, writing sample and salary requirements to ezellers@chaloslaw.com.
EXMAR changes
Listed Belgian shipowner EXMAR is setting a strategic milestone as Carl-Antoine Saverys will be the new CEO, taking over from Francis Mottrie who will stay on board as COO.
Carl-Antoine Saverys will take over formally as CEO from 1 January 2024. After assuming various roles in the shipping industry, he has made an invaluable contribution to the company over the past six years in his deputy roles at EXMARâs infrastructure department and thereafter at the shipping department. Joining him at the executive top level are newly appointed CFO, Hadrien Bown, and Executive Director Infrastructure, Jonathan Raes, member of the Executive Committee since 2018.
Francis Mottrie will assume a supporting role as COO from 1 January, alongside Jens Ismar, Director Shipping. Both remain on EXMAR’s Executive Committee to support the transition.
Please notify the Editor of your appointments, promotions, new office openings and other important happenings: contactus@themaritimeadvocate.com
And finally,
(With thanks to Paul Dixon)
RESOLUTIONS THAT YOU CAN ACTUALLY ACCOMPLISH!
10. Read less.
9. I want to gain weight. Put on at least 30 pounds.
8. Stop exercising. Waste of time.
7. Watch more TV. I’ve been missing some good stuff.
6. Procrastinate more.
5. Drink. Drink some more.
4. Start being superstitious.
3. Spend more time at work.
2. Stop bringing lunch from home: I should eat out more.
and last but not least…
1. Take up a new habit: maybe smoking!
Thanks for Reading the Maritime Advocate online
Maritime Advocate Online is a fortnightly digest of news and views on the maritime industries, with particular reference to legal issues and dispute resolution. It is published to over 20,000 individual subscribers each week and republished within firms and organisations all over the maritime world. It is the largest publication of its kind. We estimate it goes to around 60,000 readers in over 120 countries.
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