Decarbonisation: Uncertainty In Shipping

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  • Incidents arise due to constraints on ships, and people are continuously adapting to constraints on ships.
  • There’s a lot of huge automation on the vessels these days, and these ships, which are the new ships that will come out, will also have a new number of automations.
  • There are upcoming changes in the industry, such as the new life cycle analysis from the International Maritime Organisation (IMO) and the introduction of an IMO carbon tax.

During the 2023 SAFETY4SEA Singapore Forum, Ansuman Ghosh, Director Risk Assessment, UK P&I Club, centered his presentation on the critical topics that need to be addressed as soon as possible, so that the shipping industry may go ahead with confidence in the direction of net zero, reports Safety4sea.

Why do incidents occur on ships?

Incidents arise due to constraints on ships, and people are continuously adapting to constraints on ships. Unclear procedures and equipment design limitations. Additionally, constraints like skill shortages, manpower shortages, and budget limitations just follow. At this juncture, we have to plan for a seamless transition.

Technology readiness

Talking about LNG as an example, which has served the industry for maybe 10 years now as a transitional fuel, but it continues to involve it. There are a lot of issues with LNG. LNG technology is continuously evolving with numerous different engine types and different methane abatement technologies, so it is still not there. However, there is a lot of confusion, even in LNG vessels, with a limited number of seafarers, and these seafarers are highly in demand and are changing. So, it is always a rush to grab these LNG engineers or even Master Mariners. So unfortunately, these problems have remained with LNG, and they will remain if we don’t have these transitions properly done.

There have also been huge problems with methanol, and operators who are managing vessels with methanol as fuel are operating vessels for a very short period of time because there have been a lot of problems with these vessels.

The maritime industry is also moving into automation. There’s a lot of huge automation on the vessels these days, and these ships, which are the new ships that will come out, will also have a new number of automations.

Retrofitting

Retrofits have always been a challenge, and we have seen that with ballast water management systems or maybe even with scrubber systems that have been installed hastily.

It is not only about alternative fuels but also about retrofitting. Because there is already a huge pool of vessels—maybe more than 6,000—that are prime candidates for retrofits, we must do something about these existing ships. Retrofits have always been a challenge, and we have seen that with ballast water management systems, or maybe even scrubber systems, which have been installed hastily.

The challenges associated with the adoption of new fuels, such as methanol and ammonia, in the maritime industry include retrofitting vessels to integrate new fuel systems, addressing safety concerns, and ensuring compliance with regulatory uncertainties, especially regarding emissions ratings.

Additionally, there are upcoming changes in the industry, such as the new life cycle analysis from the International Maritime Organisation (IMO) and the introduction of an IMO carbon tax. The potential advantages and disadvantages of different fuels, coupled with uncertainties related to pricing and volatility, are also explored.

There are complexities in energy trading and the transfer of costs among stakeholders, including shipowners, charterers, and consumers. The emergence of ETS schemes from various states adds another layer of uncertainty, requiring a clear and standardized approach to global carbon taxes.

Contractual issues between shipowners and charterers are highlighted, with the speaker noting that wide charter party clauses and the complexity of CII clauses from organisations like BIMCO can disadvantage charterers. The impact of vessel ratings on commercial value and potential challenges in enforcing sanctions and compliance with PSC regulations are also discussed.

Summarizing the risks associated with decarbonization, the speaker mentions changes in cargo types, variations in workmanship between countries and shipyards, potential disputes, warranty claims, and performance issues. The importance of crew training for handling new fuels and automated systems is emphasized, along with the need for problem-solving skills.

The article has been edited from Ansuman’s Ghosh presentation during the 2023 SAFETY4SEA Singapore Forum

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Source: Safety4sea