In order to improve environmental efficiency, at least in the port, a new alliance of port and shipping companies advocates making a start via »low hanging fruits« and pushes the topic of »Just in Time« with new ideas. By Michael Meyer
[ds_preview]The partners in the initiative include the agency group Inchcape, shipping company Torm, the Port of Rotterdam and shipping organisation Bimco. For a start, the participants are primarily concerned with the tramp market, i.e. calls by bulkers, tankers and multi-purpose vessels.
The consequences of the recent accident in the Suez Canal should be a welcome argument for those involved – even if they are actually less concerned with emergencies or extraordinary situations than with day-to-day operation.
Access to information
The widespread use of green fuels is likely to be a long time coming. »It is not yet foreseeable which propulsion technologies will really prevail in the end, so we have to look at other factors as well,« says Frank Olsen, Chief Executive of Inchcape Shipping Services. He emphasises factors beyond hardware and sees low hanging fruits that need to be exploited, »things we can do today already and which not necessarily require much investment but rather closer collaboration.«
One important aspect is an efficient and safe route execution, not least with a clean hull and fit-for-purpose equipment of well utilised ships. »We also need to focus on just-in-time arrival,« Olsen says. It is important not to waste time, he says, because time means energy consumption when a ship has to wait outside or in the port area. However, he is aware that a shipowner alone cannot influence this: »You have to coordinate with a multitude of actors. Sometimes they have conflicting interests.«
»Let us not wait for the revolution of alternative propulsion systems«
Frank Olsen, Inchcape Shipping Services
The problem is that there is no efficient way of coordination on a neutral platform yet. Access to information is crucial to start planning this. Not only arriving on time is important, tugboats and pilots as well as terminal slots must also be taken into account. In the port, however, it is not only about cargo. Other things have to be planned as well: crew change, spare parts, hull cleaning, bunkers and so on. Ultimately, the Inchcape boss is concerned with end-to-end voyage optimsation: »You can’t just look at a port call, you have to keep the whole voyage in mind in a holistic approach.«
His call for action: »Let’s not wait for the revolution in ship propulsion. There are already possibilities. Lets keep it simple.« Coordination with port authorities, cargo owners and agents is very important. In Olsen’s view, there is still too much of a silo mentality: »We should learn to cooperate, it works in other segments like container or cruise shipping.«
One lever is regulation or contract law, which is why Bimco is also on board. In the past, when »just in time« was an issue from time to time, it was not uncommon for charterers to object.
More pressure on stakeholders
Olsen and Bimco want to avoid overregulation, but the cooperation should not be voluntary either. »It’s a big puzzle to integrate all the suppliers, vendors, authorities, etc. We have to be able to do that. But it can be done through contract law and incentives. Of course it costs money, but you can get the money in from end consumers and investors through ESG marketing, which is becoming increasingly important in global transport chains.«
One of the challenges is bureaucracy, Olsen admits. Even in one port, there are sometimes different systems. A change in technology and interests is likely to take time. »But incremental steps can be taken. Shipowners and operators can drive this forward; after all, they are the most important customers in the port,« says the manager.
»ESG must be given higher priority«
Andreas Greve Jorgensen, Torm Shipping
Andreas Greve Jorgensen, Head of Global Operations at the shipping company Torm, which is very active in the tramp market, confirms that the principle of »just in time« is so simple and so difficult to implement at the same time. But he also notes positive signals: »We see that our customers are becoming more mature, they want data on emissions from their port call. The turning point will be when calls become part of ESG and GHG strategies and when shipowners and charterers don‘t have to pay for them. Crucial factors are voyage optimisation, behavioural optimization – i.e. the willingness to be more flexible and engage in dialogue – and technological improvements. »This can go hand in hand with a return for shareholders,« says Jorgensen. But stronger cooperation is also necessary to make progress by 2030. In order to reduce emissions in the port, he believes it is immensely important to shorten the vessel stay and create synergies with customers: »ESG marketing has to become part of the business model, get a higher priority among all stakeholders, even if it costs money.«
Ben van Scherpenzeel of Port of Rotterdam Authority, who is also chairman of the International Port Call Optimisation Taskforce, stresses that cooperation must be thought of across the entire supply chain: »Everyone must first become aware of their obligations and responsibilities.« He has port authorities and terminals, agents, suppliers and service providers in mind, in addition to the charter and freight contract: »Everyone has to work together, data transparency is crucial.«
As a public-sector partner, he says, no party should be given preferential treatment. »But if we politically recognise the importance of Just in Time for the environment and safety, we can concede priorities because it is then precisely in the public interest,« the port expert says.
Bimco takes care of the contractual framework. Grant Hunter, Head of contracts and clauses, reports from his experience of a change in thinking: »In the past, it was all about saving money. But now issues like ESG and emissions are being added. It’s more complex, but the benefits are also greater.« Since technology has evolved, the timing for Just in Time is far better than in the past.
At Bimco, clauses for charter contracts have already been and are being worked out. The clear aim is to give shipowners and charterers incentives. »This can be, for example, lower consumption and less waiting time,« says Grant, »all parties should have an interest in this.« With the new clauses, he wants to clearly identify general aspects of Just in Time, distribute risks and responsibilities fairly.
New charter clauses
Why is there a need for a new clause at all? »Shipowners still have quite strict requirements from their customers to comply with the contract as quickly as possible, i.e. to transport the cargo. Therefore, securities are needed in the contract that allow shipowners to adjust the speed without suffering contractual disadvantages,« the Bimco expert continues. A clause for data exchange in the port is in the works. Bimco is in line with the International Maritime Organization (IMO) to set a global framework (HANSA 09/20). »So far, each port has its own thing, but we hope that over time the IMO process will prevail,« says Hunter. In principle, he is confident: »It won’t always work for everyone. But we need a change in mindset. Climate change is driving a lot of this. Also with large charterers and cargo customers.« ■
