E.U. Emissions Vote Disappoints Industry

Date: 2017-02-15
Source: http://maritime-executive.com/article/eu-emissions-vote-disappoints-industry

By majority vote, the Members of the European Parliament have agreed to include shipping in the European Emission Trading Scheme (ETS) Directive as of 2023, unless there is a comparable system agreed under the auspices of the IMO by the end of 2021.

This is not the final text of the revised ETS Directive, which, originally, did not include shipping; it represents the European Parliament’s position for negotiations with the E.U. Council (Member States). These negotiations will start as soon as the Council/Member States have agreed on their own position, which is expected in the next few weeks.

However, the news has still met with wide disapproval.

“INTERTANKO and its members consider the E.U. Parliament’s ambition as totally counter-productive,” said INTERTANKO Technical Director Dragos Rauta. “This undermines the work undertaken by IMO and may upset the spirit of cooperation under which IMO develops global rules for a global industry.”

The E.U. Parliament’s move could be perceived as “urging” IMO to accelerate its rule development. However, the IMO Roadmap, adopted in October 2016, already clearly defines tasks and timelines for the development of regulations aimed at reducing greenhouse gas (GHG) emissions from ships.

The Roadmap is directly aligned with target dates for actions under the Paris Agreement with the strategy to meet Paris’ objectives to be adopted in 2018, followed by an implementation plan with specific targets and measures following in 2023, says INTERTANKO. The timing of the roadmap is entirely consistent with the timeframe agreed in Paris, providing for a harmonised international regime.

The International Chamber of Shipping (ICS) – which represents over 80 percent of the world merchant fleet – says it is disappointed but not surprised.

ICS Director of Policy & External Relations, Simon Bennett, says: “The vote completely ignores the real progress that has already been made by IMO – which under the Kyoto Protocol, to which E.U. Member States are signatory, has a mandate to address CO2 emissions from international shipping.”

IMO adopted technical regulations as long ago as 2011 which will ensure that all ships built in eight years’ time will be at least 30 percent more CO2 efficient than most of the fleet operating today, and the global shipping sector has already dramatically reduced its total CO2 emissions despite an increase in global trade. (A 10 percent reduction over a five year period was recorded by the 2014 IMO Green House Study, which is the latest available data).

Bennett says that trying to include thousands of small shipping companies – including thousands of companies not based in the E.U. – into a system designed for major E.U. power generating companies and steel and cement producers is only going to complicate the reform.

“As we saw when the E.U. unsuccessfully tried to impose the ETS on international aviation, non-E.U. Governments are not going to take kindly to being told that ships flying their flag, when visiting E.U. ports, may have to pay money into E.U. schemes designed to help subsidise the closure of European coal mines.” Bennett said.

The European Sea Ports Organisation (ESPO) believes that a six-year period until E.U. measures are put in place is sufficient time for the IMO to discuss and agree on the necessary target and measures. 2023 must therefore be seen as a milestone. In case this deadline is not met, E.U. measures will have to be introduced. It should however be clear that in case of an international agreement by 2023, the E.U. measures are to be repealed.

“The Paris Agreement has delivered tremendous results due to the international cooperation and the active engagement of developing and developed countries. As climate change is a global threat and shipping an international sector, it’s clear that a regional approach is not preferable. The IMO is by far the right place to introduce a target and measures for shipping emissions.

“Today’s vote in Parliament should be seen as an encouragement for a global solution, given that the foreseen deadline of 2023 is respected. If, however, the IMO will not deliver an emissions reduction target and measures to implement it by 2023, an EU approach seems unavoidable. We therefore hope that the IMO will speed up the process and demonstrate the same level of ambition when addressing climate change as it did on the global air pollution cap agreed last October,” says ESPO’s Secretary General, Isabelle Ryckbost.

European Community Shipowners’ Associations (ECSA) Secretary General Patrick Verhoeven said: “Putting unrealistic pressure on IMO with regional measures that will gravely hurt a global sector and do very little for climate is not the way to proceed. It will unduly complicate the achievement of an effective and timely global agreement in IMO that everyone in the end wants.”

What it’s like to sail a giant ship

Date: 29 Nov 2016
Source: http://www.bbc.com/future/story/20161128-what-its-like-to-sail-colossal-ships-on-earths-busiest-sea

The mood on the bridge is a little tense. It’s after 11pm and no one is talking because what’s about to happen is pretty rare. Easing the Ebba Maersk – one of the largest container ships in the world – past another vessel her size in such narrow waters will be nerve-wracking even for this seasoned crew. “It’s something you don’t see every day,” Ovidiu Dinicut, the First Officer, tells me later.

The Ebba meets the Barzan, a container ship of a similar scale, coming the other way as she heads out of Felixstowe on the south east coast of the UK. The distant lights of the port blaze in the night, silhouetting containers and cranes behind us.

(Credit: Chris Baraniuk)

The Ebba’s crew is used to navigating crowded shipping lanes – but the seas are getting busier. (Credit: Chris Baraniuk)

This will be one of the trickiest parts of the voyage, as there is far less room to manoeuvre here than on the open sea. This close to shore the water is not very deep and the lane in which huge ships like these can travel is narrow.

The Ebba is on its way to Rotterdam in the Netherlands. It’s a journey that will take her past the busiest shipping channel in the world. And it’s getting more crowded. In 2015, more very large ships came to the Port of London – 70 miles (113km) down the coast from Felixstowe – than ever before. In total, 45.4 million tonnes of cargo passed through the port, 2% more than the previous year.

  • This story is part of Future Now, a new section launching today dedicated to in-depth stories about the people, events and trends that are shaping our world. We will be publishing regular stories about technology, energy, economics, social science and much more – find out about our mission and upcoming stories here

Nearly all the things you own came from somewhere else in the world and they reached you by ship. On land it’s easy to forget that at any given moment there are around 50,000 merchant ships crisscrossing the oceans – carrying as many as 5-6 million containers stuffed with goods. With global trade increasing, the ships are getting bigger and the shipping routes becoming crowded.

It’s easy to forget that at any given moment there are around 50,000 merchant ships crisscrossing the oceans

“It’s getting significantly busier. And because of the increase in traffic, vessels find themselves increasingly constrained by other traffic using the waterway,” says Roger Barker at London’s Trinity House, a maritime and navigation charity. “They’re also passing closer together because they’re following the same defined routes.”

Mark Charley, a ship pilot from the Harwich Haven Authority, is on board to assist the Ebba’s crew. He and the pilot temporarily posted on the approaching Barzan routinely join ships like these to guide them in and out of port. It is moments like this that everybody here trains for.

Both pilots communicate on walkie-talkies. Everyone’s eyes are on the colossus ahead. Charley calls out instructions to the Ebba’s Third Officer, Rey Coronel, who is controlling the rudder. “Port 10,” Charley calls. “Port 10,” comes the reply, as the ship’s direction is adjusted. “Midships,” says Charley. “Midships,” says Coronel.

  • Watch a timelapse video of the balletic action on display in container ship ports

The behemoths – both around 400m-long (1300ft) – are not moving at anywhere near their top speeds. Even so, the Barzan almost looks like it is coming straight at us, its lights bearing down on us in the darkness.

When two very large ships sail past one another, there is a huge – yet not immediately obvious – displacement of water around their hulls. When close, these currents rush against each other, pushing the ships’ bows apart as they begin the pass and pulling the sterns together as they complete it. If not properly positioned, the sterns could easily collide as a result.

The Ebba is longer than the Empire State Building is tall and well over 200,000 tonnes when loaded

The smaller of the two, the Ebba is still 19m (62ft) longer than the Empire State Building is tall and well over 200,000 tonnes when loaded. The surface area of her profile means that a high wind can push and pull her like a giant steel sail, making turning against a gale difficult or even impossible.

And you can’t just slam on the brakes if something goes wrong. “If there’s an emergency and you need to stop as fast as possible, then you need to run the engines full astern,” says Dinicut. “Of course it depends on the ship’s loading, on the wind and the waves, but if I were to estimate that from 10 knots [11mph] to a complete stop it would take her maybe 15 minutes – or two miles. It’s an enormous distance.”

(Credit: Chris Baraniuk)

Container ships are gargantuan steel beasts, each able to carry at least 10,000 containers (Credit: Chris Baraniuk)

With the final course adjustments made, the Ebba and Barzan pass in the night. Looking across to the other ship, she can’t be more than a couple of hundred metres away. “It’s an impressive sight, isn’t it?” says Captain Roel van Hoete. After overseeing the whole manoeuvre, he looks thrilled.

Charley, the pilot, clambers down a ladder to a tiny boat that will take him back to shore. The Ebba is on her way.

About 90% of all non-bulk cargo in the world is shipped not by road or plane, but by sea. There are now more than 30 container ships longer than 390m (1280ft). These vessels are truly gargantuan steel beasts, each able to carry at least 10,000 containers – and sometimes almost double that many. The Ebba herself was fully loaded when she arrived at Felixstowe from Sri Lanka a few days earlier.

About 90% of all non-bulk cargo in the world is shipped not by road or plane, but by sea

The sheer size of these ships makes them difficult to manoeuvre. That, coupled with the fact that so many vessels traverse British waterways, means that once-rare episodes like the nail-biting passing of the Barzan are becoming more common.

On this journey, the Ebba will pass just northeast of the busiest shipping lane in the world – the Dover Strait, which is used by more than 400 commercial vessels every day. Other shipping hotspots include the Panama Canal, the Strait of Hormuz in the Persian Gulf, and the Cape of Good Hope. With so much traffic, Barker says that the challenge for captains and navigators is growing.

As well as being difficult to stop and manoeuvre, big ships also lie deeper in the water than their smaller cousins. This makes things more complicated for people like Barker, who must keep tabs on the shipping traffic flowing around Britain and make sure that any wrecks are quickly flagged to passing vessels.

(Credit: Chris Baraniuk)

The shaft from the engine to the propeller is more than 100 metres long. It would take Usain Bolt ten seconds to run from one end to the other. (Credit: Chris Baraniuk)

Take the example of a medium-sized fishing vessel. Even one just 50m (164ft) long, far smaller than a container ship, would pose a real threat if it sank upright with its bow hidden just under the waves.

What’s more, in busy waterways you are surrounded by many different vessels, all with their own limited movement. As the Ebba moves closer to Rotterdam the following morning, she passes a large cargo ship for Hoegh Autoliners carrying road vehicles. Another that looks like a bulk carrier crosses the Ebba’s path in the distance. On the horizon, within just a few miles of us, are five other ships. A smaller Maersk container ship, the Idaho, appears a little later.

With so much traffic, the challenge for captains and navigators is growing

However, the Ebba’s crew is used to navigating places like this. First Officer Dinicut has been all around the world on Maersk vessels. Dinicut is from Romania and is stationed aboard the Ebba for two months at a time, with two months off in between shifts. But navigation is only one of his duties. He is also responsible for staffing, balancing the load of the containers taken on at each port, managing the ship’s security and occasionally acting as the medical officer.

(Credit: Chris Baraniuk)

The Dover Strait is the busiest shipping channel in the world, used by more than 400 commercial vessels every day. (Credit: Chris Baraniuk)

The ship helps out as much as she can. Built in 2007, the Ebba is equipped with all kinds of modern instrumentation that let her crew pilot her safely. Demonstrating the radar on the bridge, Third Officer Coronel shows how it can pick up anchored vessels, the coastline, nearby buoys and even estimate the course of moving ships.

This data is used by the electronic chart display, which shows the depths of the sea at any nearby point, obstacles like sand banks, and other ships in the area relative to the Ebba’s position. The ship can even plot its own predicted course based on her current movement. Finally, there is a paper chart and some powerful binoculars on the bridge. Sometimes you can’t beat a good pair of eyes.

Down in the engine control room, Second Engineer Henrik Jensen is bursting with facts about the sheer scale of the Ebba. “All numbers regarding technical issues on this ship are huge,” he says, gesticulating with arms spread wide.

There isn’t a bigger diesel engine anywhere in the world than the one that’s on E-class ships like the Ebba

He reels off some of his favourite examples. There are 5,000 individual alarm channels that can alert the crew to everything from too much pressure in an oil tank to a valve that is not closing properly. The rudder is 110 sq m (1184 sq ft) – bigger than many London flats. The shaft from the engine to the propeller is more than 100m (328ft) long. And the engine itself? There isn’t another diesel engine bigger anywhere in the world, on land or sea, than the one that’s on these E-class Maersk ships like the Ebba.

Running these giants is costly, though. There’s significant pressure on the industry for ships to be more efficient, desite already tight margins. Shipping remains essential for world trade but the container market is in a slump. On the day that the Ebba departed Felixstowe, the Financial Times published a report about plummeting profits in the sector. Maersk Line’s own net operating profit for the first quarter of 2016 was down 95% on the same quarter the previous year. The downward trend continued into 2016’s second and third quarter.

Still, most of the world’s ships sail on. When docked at Felixstowe the containers on the Ebba were loaded and unloaded until just a minute or two before she sailed. She had plenty of room to spare, but containers were still piled high above the lower decks.

And when she approaches Rotterdam – Europe’s largest port and the sixth largest in the world, at two thirds the size of the Isle of Wight – an industrial ballet takes place. The Ebba sails towards her quay but with the help of tugs must pirouette 180 degrees in order to reverse into the berth. A container ship is being loaded nearby. In the background, driverless vehicles deliver containers to automated dockside cranes.

The crew have no idea what’s inside these many thousands of containers that they move millions of miles

Within minutes of tying fast, another set of cranes have lowered over the Ebba and her own entourage of driverless trucks will soon be bringing new containers and ferrying other ones away.

In two days, the Ebba will carry these to Hamburg in Germany and then Le Havre, France. The crew typically have little idea about what is inside the many thousands of containers that they help move across millions of miles. They are told about hazardous or specialist cargo, but otherwise the boxes could contain anything from toys to car parts to clothes.

(Credit: Chris Baraniuk)

When we approach Rotterdam – Europe’s largest port and the sixth largest in the world– an industrial ballet takes place. (Credit: Chris Baraniuk)

In the ship’s office, Dinicut tries to put the experience of being a crewmember on a vessel like this into words. “It does create a certain sense of freedom. You do feel it sometimes, when you’re out at sea and coming out of these busy ports, you see the open sea, it gives you a feeling of, ‘Ah, I’ve done a good job, I can relax for five minutes’,” he says.

“But then you start all over again.”

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Maersk’s Difficult Year

Source: http://maritime-executive.com/article/maersks-difficult-year
Date: 2017-02-08

2016 was a difficult year with headwinds in all markets, said A.P. Moller – Maersk CEO Søren Skou, in releasing the group’s annual results. The group delivered an underlying profit of $711 million in 2016 and a loss of $1.9 billion negatively impacted by impairments of $2.7 billion in Maersk Supply Service and Maersk Drilling.

Skou said the result was “clearly unsatisfactory.”

The difficult business environment during the year enabled industry consolidation and a major container carrier went out of business, while Maersk Line continued its cost leadership strategy and gained significant market shares, he said.

Maersk Line recorded a loss of $376 million due to poor market conditions leading to sustained lower freight rates partly offset by higher volumes and lower unit costs related to lower bunker price, higher utilization and cost efficiencies.

Due to gradual improvements in container rates, Maersk Line expects an improvement in excess of $1 billion in underlying profit for 2017 compared to 2016. Global demand for seaborne container transportation is expected to increase two to four percent.

Additionally, Maersk Line reached an agreement on December 1, 2016 to acquire Hamburg Süd, the world’s seventh largest container shipping line and a leader in the North-South trades. The transaction is expected to be completed by end 2017.

The consolidation in the container shipping industry as well as the challenging oil price environment had a negative impact on earnings in APM Terminals, which over the past years has been significantly expanding its terminal network, particularly in emerging and oil dependent economies.

APM Terminals reported a profit of $438 million. Lower profit in commercially challenged terminals in Latin America, North-West Europe and Africa as a consequence of liner network changes and weak underlying markets was only partly offset by cost saving initiatives.

Damco reported a profit of $31 million, while Svitzer recorded a profit of $91 million.

Maersk Oil recorded a profit of $477 million, positively impacted by operating cost reductions of 36 percent, ahead of the targeted 20 percent for the period 2014-2016, lower exploration costs, higher production efficiency and reduction of abandonment provision of $93 million.

Despite significant cost optimization initiatives, Maersk Drilling and Maersk Supply Service were severely impacted by continued large scale cost reductions and project cancellations in the oil industry and the large inflow of new capacity over the last years. In line with the group’s new strategy, all oil and oil related businesses initiated processes to prepare for separation from A.P. Moller – Maersk.

Maersk Drilling reported a loss of $694 million, positively impacted by termination fees of approximately $150 million moved from 2017 to 2016, high operational uptime and savings on operating costs offset by ten rigs being idle or partly idle versus three rigs last year.

Maersk Supply Service reported a loss of $1.2 billion, impacted by impairments of $1.2 billion, lower rates and utilization as well as fewer vessel days available for trading due to divestments and lay-ups.

Maersk Tankers recorded a profit of $62 million, negatively impacted by declining rates, partly offset by improved commercial performance, contract coverage and cost savings.

“Our top priorities for 2017 remain integrating our Transport & Logistics businesses, taking out cost in APM Terminals and Damco, closing the Hamburg-Süd acquisition as well as progressing the work on finding structural solutions for each of our oil and oil-related businesses,” said Skou.

“For 2017, we expect A.P. Moller – Maersk to deliver an underlying profit above 2016, mainly driven by an improvement in underlying profit in excess of $1 billion in Maersk Line compared to 2016.”

Change of Chairman of the Board 

Michael Pram Rasmussen will step down as Chairman of the Board of Directors of A.P. Møller – Maersk effective at the Annual General Meeting which will be held on March 28, 2017.

The board intends to elect Jim Hagemann Snabe to succeed Rasmussen. Snabe says: “A. P. Moller – Maersk is a very strong company, with an impressive history and impact on global trade, and it has enormous potential in a world of constant change. I look forward to working with the board and the management team on the transformation that lies ahead of us, as well as securing a strong future platform for our oil and oil related businesses.”

Marine insurers fear protectionism

Date: 8 Feb 2017
Source: http://fairplay.ihs.com/safety-regulation/article/4281806/marine-insurers-fear-protectionism
Global trade risks a threat to the maritime sector, says IUMI president.Global trade risks a threat to the maritime sector, says IUMI president. Credit PA

The president of the International Union of Marine Insurance (IUMI) has warned that globalisation is in “crisis” and it threatens the future of the maritime sector.

Dieter Berg, was speaking as IUMI held its annual winter meeting in London where he said the rise of protectionism had the potential to impact marine insurers and their clients.

Berg highlighted the concerns IUMI had in the current climate, with the threat to global trade as a key challenge for the year ahead.

“There are still issues with the global economy,” he said. “We still have a degree of destabilisation and the sovereign crisis in Europe is still to be sorted and this comes alongside the expected opening of complex negotiations over Brexit.

“Globalisation is in crisis, and it comes from the increase in protectionist measures across the world. We depend on the free movement of exports for global trade.”

Berg said IUMI was also concerned at the rise in politicians blaming globalisation for domestic economic problems which furthered there moves towards protectionism coupled with the collapse of free trade deals.

“A return to national idealism would be disastrous for us as marine insurers and our clients in the maritime sector.”

Away from the economic issues Berg said the marine insurance market was still suffering from the supply of marine insurance capacity outstripping the demand from the clients.

“It is a concern for all in the industry,” he added. “Marine pricing at renewal remains under pressure but there does seem to be some degree of levelling out.

“The challenge for underwriters at present is cycle management and we remain concerned about cargo storage and value accumulation. The losses at Tianjin highlighted the potential for losses, and as a result in Europe we have seen some automotive risks difficult to place.”

When asked if he felt that while cycle management was necessary the market was now seeing a “new norm” for pricing Mr Berg said he felt the situation had not reached the point where the pricing cycle was at an end.

“I still very much believe in the insurance cycle. There are new issues in the market in terms of the arrival of new alternative capacity from capital market and pensions fund driven by the difficult investment return environment at present and there is nothing to say that will not continue until investment markets improve.”

Contact Jon Guy

At last: Container Shipping Industry to Benefit from Harmonised Interchange Inspection Criteria

Source:http://www.containerownersassociation.org/
Date: July 1st 2016

In a significant breakthrough for the container shipping business, the two criteria currently used when inspecting containers during the interchange process between operators and leasing companies are now to be harmonised.

Until no , th r h v b n t o diff r nt int rch ng insp ction st nd rds: th “IICL-5” crit ri (m n g d b th Institut of Int rn tion l Cont in r L ssors); nd th “Common Int rch ng Crit ri ”, administered b th CIC Group of l sing comp ni s, comprising fiv of th orld’s l ding cont in r lessors (Triton Container, Seaco, Florens Container Services, CAI and Blue Sky Intermodal) who r pr s nt ov r 50 p rc nt of th orld’s l s d dr fr ight cont in r fleet.
Launched in August 2007 as an alternative to the IICL-5 criteria – and endorsed the following year by the Container Owners Association – CIC has enabled shipping lines to benefit from a significant reduction in repair costs by eliminating unnecessary repair to containers. An additional advantage has been a more environmentally friendly approach to container maintenance, with reduced container handling.

The harmonisation process has been undertaken by the leasing industry, which has recognised that the container business – shipping lines, leasing companies and container depots – will benefit from a single standard. Discussions have taken place in recent months between CIC members and the IICL as to how the two different criteria might be harmonised.

Although there are some small adjustments to the most recent version of CIC (see Table below), the new standard preserves all the main benefits offered by CIC. It also offers more consistent and accurate equipment inspections and repair estimates, bringing efficiencies to all parties.

The harmonisation is taking place simultaneously with the introduction of the IICL 6th edition into the industr (“IICL-6”). Both, CIC nd IICL m mb rs xp ct th t th h rmonis d int rch ng st nd rds will create a better path to more accurate estimates, less disputes and more trained professional inspectors.

The updated version of the CIC standard is scheduled to be introduced for off-hire activity taking place from August 1st, 2016 onwards.

A technical bulletin is available on the CIC website (www.cic-standards.info) nd lso on th COA’s website (www.containerownersassociation.org). For further information please contact Patrick Hicks at the COA Secretariat onsecretary@containerownersassociation.org or telephone +44(0)20 8390 0000. CIC Standards Update

As a result of the harmonization of the two standards the following updates are made to the CIC standards as of 01 August 2016:

Roof panels Table – 5.5

  • ROOF INTO- THE-CUBE DEFLECTION: 40mm (1-9/16 in ) downward bow measured from the inside lower surfaces of the top side rails to the inboard roof corrugation
  • ROOF UPWARD DEFLECTION: 40mm (1-9/16 in ) upward bow measured from the inside top surfaces of the top side rails to the inside of a recessed roof corrugation

Rear and front headers – Table 5.1

  • If more than 35 mm (1-3/8 in) deep, REPAIR

Flooring height difference – Table 5.6

  • If difference is more than 5 mm (3/16 in), REPAIR

All other CIC standards remain as currently defined. Starting with the IICL – 6th edition, the CIC will follow all future updates and revisions adopted on the IICL inspection criteria.

This technical bulletin should be applied to all units gated-in as of August 1st, 2016.

 

About the Review

In 2012, omnibus budget legislation included changes to various pieces of federal legislation that apply to the review of projects, which included amendments to the Navigable Waters Protection Act (including its renaming to the Navigation Protection Act). These changes were intended to streamline regulatory review processes by focusing the scope of application of the legislation.

The amendments to the Navigable Waters Protection Act, which came into force in 2014, concentrated the application of the Act on 162 of Canada’s busiest commercial and recreational navigable waterways by introducing a list of Scheduled waters (i.e., oceans, lakes and rivers). The Navigation Protection Actcontinues to prohibit depositing or throwing materials that may interfere with navigation in all navigable waterways.

The Government of Canada has promised to review the recent changes to the Navigable Waters Protection Act, restore lost protections and incorporate modern safeguards.

The Minister of Fisheries, Oceans and the Canadian Coast Guard, along with the Minister of Transport, are asking Parliament’s Standing Committee on Fisheries and Oceans and the Standing Committee on Transport, Infrastructure and Communities to examine recent changes to the Fisheries Act and the Navigable Waters Protection Act and to hear from Canadians.

As an independent and public forum, a parliamentary committee can hear from witnesses and invite experts. All Canadians are welcome to submit briefs or ask to appear as witnesses. You can also attend the hearings in person or watch them on the parliamentary web channel.

 

#1. Seafarers carry over 90% of the world’s trade

We all know that without shipping, the import and export of goods on the scale necessary for the modern world would not be possible. But did you know that over 90 per cent of world trade is carried by the sea, with the help of over 1.5 million seafarers, of virtually every nationality?

#2. Shipping is One of the World’s Most Dangerous Occupations

While the number of casualties per year is on a steady decline and revised safety regulations are coming into play, shipping remains one of the most dangerous occupations in existence. In 2015, there were a reported 2,687 total casualties at sea, and the threat of piracy is still very real, with cyber safety issues making this even more of a concern in recent times.

#3. Life at Sea can be Extremely Lonely

An estimated two-thirds of ship crews have no means of communication while on the open sea, and only one in ten will have freely available internet. With such a lack of connectivity, the life of a seafarer can be one of extreme loneliness with fatigue, mental health issues and stress commonplace. The Wellness at Sea coaching programme launched by Sailors’ Society is one example of the efforts being made to promote the health and well-being of the world’s seafarers, and providing them with the support they need.

#4. Women Only Account for 2% of the World’s seafarers

Despite the estimated 1,647,500 seafarers in employment worldwide, women still only make up around two per cent of the industry. Women’s International Shipping & Trading Association (WISTA) is an international organisation for women in Maritime whose efforts are aimed at supporting women within the sector, and promoting a more balanced workforce.

#5. Shipping Provides the Greenest form of Goods Transport

Shipping is the least environmentally damaging form of commercial transport and is a minor contributor to marine pollution in comparison to the land-based industry. Recognised as the most efficient form of commercial cargo transport, the work of the seafarer is important to us all in the move towards a greener and more sustainable future.

At CrewConnect, we’re looking at how the incredible work of seafarers impacts our daily lives, and why we all need to offer our support. Our focus is on connecting people and professionals across the global Maritime community and starting a conversation around what matters. CrewConnect Global 2016 is bringing industry leaders and professionals together from around the world, with a focus on the future of shipping and forming the crews of tomorrow. Join us at the event, or connect with us today!

 

Shipowners seeking protection from rising political risks

Date: 1 Feb 2017
Source: http://fairplay.ihs.com/safety-regulation/article/4281471/shipowners-seeking-protection-from-rising-political-risks?hootPostID=e952a4929a735564fbfce3297ff16c53

Shipowners are turning to the insurance sector for greater protection as global political and credit risks continue to rise.

Julian Macey-Dare, international leader of the credit and political risk practice at broker Marsh, told Fairplay the firm had seen increased enquires from the shipping sector for political risk and credit cover.

Speaking as the broker published its annual political risk map, Macey-Dare said the rise in protectionism and the political instability in the US, Europe, and emerging markets had spurred shipowners to take out more protection.

“Concerns over the threat to global supply chains and disruption have seen marine businesses looking for cover to reduce their risks,” he said. “In recent weeks, we have had an enquiry from an owner who was looking for cover for a deal to lease supertankers [very large gas carriers] for the transport of LNG.

“Their fear was over the ability of the energy company to pay the charter fee over the 20-year duration of the deal,” he explained. “Much of the concern for the marine sector surrounds asset values. The value of vessels has reduced.

“The issue for the market is that companies are able to pay for vessels as long as the commodity rates are higher than the charter rates – and at present this is not the case for many.”

Macey-Dare added, “We have seen political instability in the case of Europe, with Brexit and in the UK. This year we will have elections in France, the Netherlands, and Italy. While we do not have a crystal ball, the rhetoric that is emerging around these elections is similar to that in the UK and the US, so there is a possibility that the political status quo will be disturbed.”

The geopolitical situation was unlike anything he said he had seen for years, he told Fairplay, so multinational businesses were cautious about the potential for disruption.

“In the past, it has always been a fear that the government of the country in which the company was looking to invest was the potential risk, should it choose to seize assets or raw materials,” he explained. “However, although it is early days, the Trump administration has made it clear it wants to retain investment in the US, and as such [US government officials] may demand firms remove investment from overseas and return it to the US.

“There is a clause in a political risk policy to cover what is deemed ‘forced divestiture’, and I have seen maybe two claims based on this clause in my time in the industry. Insurers may well look more carefully at this cause of loss and look to see if they are providing the cover their clients require.”

He added that the number of claims for political risk and violence losses were at a level almost unseen before.

Contact Jon Guy