After a comprehensive structural reorganisation and additional recent adaptions, the global classification societies’ association IACS now wants to respond even faster and better to developments in and around shipping
Last year, IACS had undertaken a comprehensive restructuring. Now, Nick Brown from Lloyd’s Register, the first elect[ds_preview]ed chair, has taken up his position. Speaking at a recent meeting, he highlighted »the need for an even louder voice from IACS during this decade of rapid change as new technologies and new fuels need to be thoroughly understood and risks of adoption mitigated against.«
Acceleration of IACS’ work
Noting the increasing calls for IACS to be more responsive, more visible, and more openly and proactively engaged on the big topics facing the industry, Brown continued: »There is lots for IACS to do and collaboration with all industry stakeholders will be key to our mutual success.«
As he handed over the chair, Koichi Fujiwara from ClassNK said: »IACS response to the Covid-19 pandemic and its rapid expansion of remote surveys was vital in ensuring business continuity while maintaining high safety standards. I hope that this agility will be replicated elsewhere as the new governance changes start to take effect.«
During the meeting, the association dealt with some of the important trends in the maritime industry and how to react as IACS. Not surprisingly, digitalization and environmental aspects were on top of the agenda. »Recognising that the power of digitalisation needs to be fully leveraged to support the global imperative of decarbonization, and the cross-cutting nature of both work-streams«, it was agreed to an acceleration of IACS’ existing work programme. The goal is to deliver relevant outputs in time to lead, influence and inform the decisions being made in shipowners’ and shipbuilders’ offices as well as in the IMO and other regulatory centres.
New expert group
This includes the establishment of an Expert Group for the safety of new technologies and zero or very low carbon fuels; to develop high-level positions on these issues and possible related submissions to IMO, and a commitment to ensure that the short-term measures on GHG reduction recently agreed at IMO are capable of global and consistent implementation.
Another topic on the agenda was the »Information Paper on Remote Surveys«, which was published by IACS. Building on that, the participants also fast-tracked the development of an IACS UR or Recommendation for completion by October 2021 and reaffirmed the intention to engage deeply in discussions on a new output at MSC104.
Recognising the possibility of regulatory obstacles, the group also expanded IACS’ work on modernizing the International Convention for the Safety of Life at Sea (SOLAS). They committed to submitting a paper to International Maritime Organization’s body MSC105 (Maritime Safety Committee) highlighting the need for the regulatory regime to keep pace with new technologies and welcoming the engagement of other industry bodies in this work.
»Noting that digitalization can only be successful if cyber systems are secure«, the progress toward the development of requirements for cyber resilience of on-board systems, the translation of Rec.166 on Cyber resilience of ships into an UR, incorporating the consideration of cyber risk into ISM and initiating discussions with industry on new proposals to IMO following the completion of its regulatory scoping exercise on Autonomous Surface Ships was welcomed.
By the end of 2020, IACS had adopted a new governance model as »part of a long-term strategy to future-proof the association«. Among the measures is the change to an elected Council Chair, who will serve for two years. Re-election will be explicitly possible. Up to now, there has been an automatic rotation among the classification societies.
Simple majority incorporated
In addition, there is to be a chairperson of the »General Policy Group« (GPG) elected for three years, who will join the IACS Secretariat in London. He is to bring the association’s experts closer to the IMO and other industry associations.
Last but not least, there is a move to a simple majority for much of the decision-making and an expanded office of the Chair to allow for faster decision-making. Majority decisions are to be valid when at least 50 % of the registered IACS gross tonnage is reached.
For our annual report on maritime classification we asked the top societies and IACS members for statements and insights regarding some of the »hot topics« for the industry. In the following, we publish some of their replies. These were our questions:
- What is on top of your agenda for 2022?
- The vote of the World Bank has put a damper on LNG development, recommending that the world’s governments stop promoting this technology or even curb existing support. Does this have an impact on your strategy and do you expect politics/regulators to react to this call?
- In what other fields do you expect (or favor) more political regulation for the maritime industry?
- In view of the increasing number of accidents involving large container ships – e.g. »Ever Given« but also »ONE Apus« – do you see a need for adjustments to (classification) rules for stability, navigation and ship safety?
Jörg Langkabel – Area Manager Germany – DNV:
»With the major transformations related to decarbonization and digitalization, the need for trust and assurance in the maritime industry is growing. We will keep on assisting the maritime stakeholders to navigate through the uncharted waters of decarbonization, developing new strategies and advisory services which will support and guide them through this challenging megatrend. At the same time DNV is taking advantage of the opportunities created by digitalization within our own organization, to offer new services and ways of working that enhance the customer experience, improve quality and are more efficient. Our ambitions are to lead the digital transition of assurance in the maritime market. During the pandemic, digitalization turbo-charged by at least half-a-decade. Our strategy of modernization and digitalization of class paid off and we will continue for 2022 and beyond.
We are a long-time advocate of LNG and an early pioneer of its use as a marine fuel. Among the key findings of our »Maritime Forecast to 2050« report was that installing a dual-fuel LNG engine is a robust choice today enabling future flexibility. Advantages include that it is cost-effective asa dual-fuel LNG engine can run on cheaper LNG, compliant (20 % to 25 % reduction in tank-to-wake CO2 emissions) and flexible: if correctly designed, it can potentially be used for other fuels.
Decarbonization is reaching a tipping point – and the IMO’s 2050 goal is coming under increasing pressure from regional and other value chain actors who want a faster transition. IMO’s EEXI and CII are the first steps towards achieving the IMO’s 2030 goal of reducing the CO2 intensity by 40 %. But the EU wants to fully decarbonize by 2050 (this compared to IMO’s goals to reduce carbon emissions by 70 % in 2050). A »Climate Law« and associated policy initiatives will be introduced in 2021 paving the way for stricter rules for ships docking in EU ports e.g. ETS. Meanwhile, the new US administration is pressuring IMO members to commit to decarbonizing by 2050. Furthermore, China, South Korea and Japan have each declared ambitious plans for carbon neutrality – China is to fully decarbonize by 2060. COP26 in November 2021, officially the 26th United Nations Climate Change Conference, will see countries negotiate a strengthening commitment and present plans to combat climate change for the first time since the landmark agreement to restrict global warming at 2015’s COP21 held in Paris. Shipping should prepare for any fallout from COP26 which could result in tighter regulations.
International problems like climate change need international solutions. We believe the IMO is the best vehicle for delivering on shipping’s obligations to reduce emissions. High ambitions when it comes to climate change are of course to be applauded but executing this ambition via a patchwork of regional regulations will only cause confusion, create an uneven playing field and dent market confidence for shipowners.
Since the late 1990s we have seen major improvements in the safety of shipping, and even in the last five years reported (2015–2019) IHS Markit data confirms that we have seen a small but steady decline in ship incidents, both for casualties and total losses. Today, most accidents are down to human error and can be attributed to a handful of incident types. So safety has improved, but we cannot be complacent. Emerging safety concerns include Black swan events (Covid-19), increasing cyber threats, the ongoing crew change crisis and new fuels and technologies. Adopting new fuels and new technologies is the only route to 2050 – their combined benefit is irrefutable. But new fuels and new technologies are creating a new risk landscape, adding to an already complex operating environment. The gulf between the current safety risk picture and our ambitions towards increased digitalization and decarbonization is creating a looming safety gap. The longer we wait to identify and address these safety concerns, the more the safety gap will grow – the more we put in jeopardy our assets, our crew, our environment and our progress towards the smarter and greener future we all desire.
Increased digitalization, too, offers huge benefits – we know that innovative technologies and valuable data drive enhanced efficiency, safety and cost controls. But here too questions endure around a lack of standardization, a growing vulnerability to cyber-attacks and systems complexity. We all understand that decarbonization and technological progress must move with pace and determination. So, from a safety perspective, we simply cannot afford serious incidents which threaten to stymie industry advancement. Silos must be broken down in a collaborative, connected approach to fertilize knowledge sharing, while safety data and information should be shared for the betterment of safety at sea.«
Rico Joehnk – General Manager of the Hamburg office – ClassNK:
»We continue to concentrate on ensuring that, even under Covid-19 conditions, the professional services we deliver in support of seaborne trade remain fully available. In addition, we are strengthening our focus on decarbonization and digital transformation challenges through our role as the third-party certification body.
The response to ClassNK’s 2020 launch of certification services dedicated to innovative technologies has exceeded expectations. Under the new framework »Innovation Endorsement«, we have certified 70 ships and four products and solutions powered by innovative technology.
ClassNK will continue to promote this initiative in support of the innovations that can help resolve our industry’s various challenges.
For the coming year, we will also give special attention to offering the comprehensive support the industry needs for smooth compliance with short-term Greenhouse Gas Emissions (GHG) reduction measures like Energy Efficiency Existing Ship Index (EEXI) and the operational carbon intensity indicator (CII).
The pathway to decarbonization is uncertain and complex, with some industry players choosing to utilize LNG as a fuel. The role of class societies includes responsibility for ensuring the safety and effectiveness of actual projects; we will continue work with rigor to support the practical needs of our industry.
Given that appropriate and commonly applied regulations can encourage fair competition and technology development, we hope there will be timely action to assist the emerging solutions that aim to meet to challenges of decarbonization and digitalization – including autonomous shipping.
At this stage, we prefer to refrain from linking specific ship types or incidents to any discussions related to rule amendment. The industry learns from its experiences and incorporates them into standards, and this is reflected in the well-organized nature of existing structural rules.
Alongside a number of stakeholders, ClassNK is part of the chain of contributors to maritime safety and is always ready to provide its expertise for further rule improvements as required.«
Vassilios Kroustallis – Vice President – ABS Europe:
»By the time 2022 dawns shipowners will need to have engaged fully with the implications of the IMO’s medium term measures, the EEXI and CII. As of May 2021, almost 40 % of shipowners had still not implemented a decarbonization strategy despite these impending regulations. This issue needs to be top of the agenda now because both measures will have a broad impact and require changes to the way the majority of ships are operated. While it is possible to convert to a low carbon fuel and comply we think few owners will do this in practice, so the strategy will likely require an engine power reduction and the use of energy efficiency devices. Both will have an impact on performance and sailing speeds and could make some vessels more attractive to charterers than others.
Owners will have to also be aware that their ability to raise finance will increasingly be dependent on meeting the ESG requirements of their principals and by demonstrating those credentials to lenders. While our focus remains on core safety services, we are increasingly responding to client needs for advice and input on how to comply with regulations and respond to market mechanisms.
Despite the recent comments about the lifecycle emissions of using gas as fuel, a panel of experts and a survey of more than 400 attendees at an ABS webinar exploring decarbonization suggest there is still confidence in LNG’s potential to help reach regulatory goals in the coming decades.The third publication in the ABS Low Carbon Shipping series also highlighted LNG’s importance among the various alternative fuel options, looking into current ship designs, and how LNG can start a transition to alternative fuels. Owners of internationally-trading ships face increasingly complex investment decisions as they try to navigate the most efficient course to the low-carbon future and it’s clear the industry needs LNG as a transitional fuel. It could also support the transition to zero-carbon and carbon-neutral fuels that are required to get the industry to 2050 such as Hydrogen.
The regulatory framework for the development and use of new technology must remain up to date. This issue in part lies behind the formation by leading flag states and class societies of the Maritime Technologies Forum (MTF) which will undertake technical and regulatory research and provide expertise and leadership to assist the shipping sector and its regulators in addressing technology challenges.
Key focus areas for the forum will include energy efficiency, alternative fuels and increasing levels of autonomy and MTF members will collaborate on research and draw on their collective regulatory expertise to offer unbiased advice to the shipping sector.
ABS is focussed on how to secure containers safely given the challenges introduced by larger ships, higher container stacks, flexible bridges and increased stack weights. To address these complexities, we have enhanced our Guide for Certification of Container Securing Systems with new companion software, ABS C-LASH®. Central to the guide is a newly-developed nonlinear analysis procedure that represents a significant improvement over traditional formulas for container securing. Used with the ABS C-LASH, the Guide helps users evaluate mixed, external and internal lashings at multiple tiers and multiple lashing points, twist-lock gaps in both vertical and horizontal directions and the effect of lashing bridge flexibility.«
Mark Darley – Marine & Offshore Director Lloyd’s Register:
»Shipping’s decarbonisation is high on our agenda for 2022 and beyond. LR launched the »Maritime Decarbonisation Hub« in 2020 to help the shipping industry navigate the significant transition to zero-carbon and in the decade leading to 2030, we want to support changes with practical, pragmatic and commercially viable solutions.
Specifically, fuel and fuel technology choice is a prominent topic, particularly when trying to predict and maximise the return for new vessel orders and to ensure future fuel availability and, with EEDI and CII metrics, to ensure existing tonnage remains competitively relevant during their service life.
Clearly, these decisions depend on multiple factors; trading area, vessel type, technology readiness and commercial attractiveness and therefore there is no »one-size fits all« solution. Flexibility in this transition is the key word and as much of a dual fuel readiness, whether a combination of; VLSFO, LNGf, LPGf, ammonia, methanol, fuel cells, hydrogen or indeed nuclear can be assessed and in turn implemented during newbuildings over the next 2–3 years, the more compliant and competitive flexibility this will give. Clearly the challenge is not in the technology readiness but in the commercial impacts.
That said, 2021 marks our 150-year anniversary operating in Germany, more than 260 years globally. While we continue to celebrate significant milestones such as these, our agenda hasn’t changed – our focus has always been our clients and the wider maritime industry. Helping stakeholders navigate major change remains central to LR and our role as a trusted advisor.
Today, LNG-fuelled ships still make up a small fraction of the world fleet and in the case of LNG there was no commercial barrier. The barrier was in ensuring the supply of the fuel was available in the ports where it was needed.
The first zero-carbon vessels will be dual fuel to address supply and infrastructure concerns. There won’t be pure hydrogen or ammonia vessels initially.
There are strong views on LNG as fuel. Some owners who need to order now will probably look to LNG but like every marine fuel, current and future, it comes with its own portfolio of opportunities, challenges and uncertainties. These need to be recognised and built into investment decisions and it is important to remember the decarbonization of maritime is a journey over decades.
Regulatory action is now one of the most important factors for shipping’s decarbonisation prospects. According to the decarbonisation survey, we and a partner conducted October through to December last year, respondents saw the »lack of clear, detailed regulations« as the single greatest potential barrier to decarbonisation.
Bold policy and regulation is also needed to build market expectation that shipping will have sustainable economic activity which is worth investing in. This will likely remove uncertainty and allow the necessary capital to flow into the industry. Without this, it is difficult to see how an energy transition in shipping can happen.
The Covid-19 pandemic has also highlighted the critical role seafarers play in keeping global supply chains open. Despite efforts made by international organisations, unions, companies and governments around the world in supporting crew transitions and welfare, the crew change crisis continues, and more action is needed to safeguard and protect seafarers.
Specifically, fires onboard are a significant safety threat. Most containerships use smoke detection systems where air is continuously sucked through pipes and directed to a detector in the below deck cargo hold. Once smoke reaches the detector, an alarm is triggered, and the pipes automatically release CO2.
One primary challenge is that this process is slow – by the time the smoke reaches the detector the conditions are too hostile for crew to enter and spraying CO2 into the hatch may not be effective in tackling the fire within a container.
Earlier this year, Safetytech Accelerator and Seaspan announced a pilot which hopes to improve real-time detection of potential fires below deck through the early detection of slight increases in a container’s temperature. This can enable smaller issues to be resolved before they become dangerous – protecting people and assets, as well as providing cost savings.«
Jianui Mo – Vide President – China Classification Society:
»In the future, we will increase the investment in the two major areas, green and intelligent technology. CCS will continue advancing the technical research of new energy such as methanol/ethanol, hydrogen fuel and ammonia fuel, as well as the development and pilot application of relevant rules and regulations. Moreover, we will strengthen the research on the application of new energy and energy-efficiency technologies for vessels, and study the impact of the IMO energy-efficiency measures on existing ships.
In terms of intelligent technology, we will further research the intelligent survey and testing technologies and speed up the construction of »digital CCS«. Meanwhile, we will promote the construction of digital ecosystem and digitization-related work according to the plan, build a digital service platform, strengthen the application of blockchain-based ship data service chain, and establish a shared working alliance.
We believe we should pay attention to the potential of Bio-LNG and synthetic LNG for rapid growth in the global supply and consumption. At the same time, we should not ignore the risks and challenges in applying zero-carbon fuels such as hydrogen and ammonia on ships. The low-carbon transformation of ship energy is a system engineering that needs strong support from the entire energy industry chain, from wellhead to fuel tank and to propeller. As we know, through 20 years of development, LNG, as a marine fuel, there has been a relatively complete and mature industrial chain built, which is difficult for other low-carbon or zero-carbon fuels to surpass and replace in a short time.
We believes that LNG fuel has significant advantages in terms of sustainability, contribution to emission reduction, availability, economy, technological maturity, completeness of relevant regulations, etc.. We will continue taking it as a feasible direction for further research and development. For the future-oriented zero-carbon emission solutions, CCS regards hydrogen and ammonia fuels as the key development directions. We believes that the clean energy with good prospect of development and application in the future mainly includes LNG, methanol, hydrogen, ammonia and nuclear energy.
CCS believes it is necessary to enhance the regulation of shipping industry in the following areas:
Prevention and control of Covid-19. In the context of normalization of pandemic prevention and control, it is important to issue or update the pandemic prevention and control guidelines for ships and crews, and provide guidance for the global shipping community to strengthen the pandemic prevention and control, so as to ensure the safety, health and employment of the crews. It is expected to bring forth a new branch of ship health under international maritime regulations frame in the future, which requires classification to carry out research in advance.There is no detailed supervision framework for remote survey and the application and execution are not explicit so far. It is necessary to draft the uniform requirements on remote survey and develop the remote survey under the common standards of Flag State and RO.
GHG emissions reduction. So far, in the initial IMO strategy on reduction of GHG emissions from ships, there has been only target set for the overall carbon emission intensity and the total GHG emissions of the fleet. However, the emission reduction potential of new ships varies from the existing ones, and the emission reduction capacities of different types of vessels are also different; so, it is necessary to study how to break down the overall target to different types of vessels and enact specific policies and regulations.
Safe application of alternative fuels. Due to the significant differences of physicochemical properties between the low-carbon/zero-carbon alternative fuels and fossil fuels, there will be different safety risks in the storage, supply and utilization of such alternative energy on the ships. Therefore, it is necessary to study and formulate the technical standards as soon as possible.«
Matthieu de Tugny – President, Marine & Offshore Bureau Veritas:
»In 2022 we will continue to help our stakeholders reduce risk while improving performance. Performance is sustainability focused and about reducing GHG emissions. R&D and rules for new fuels are vital. But the future will be about more than fuels and GHG emissions.
We are in a transition and all fuels are transition fuels. No-one can predict what will happen: we need to be ready for a fast changing world. We have the expertise to support new hydrogen based fuels. LNG is the best fuel available at any scale for owners who need to make decisions now.
Bio-methane, as an immediate drop in route to further reducing GHG emissions, is available. The number of LNG fueled ships in operation, so far, is very small (less than % of the world fleet). The sooner the right incentives and regulation are put in place, the sooner e-fuels can become competitive.
We must address carbon pricing and well-to-wake impacts as the International Maritime Organization (IMO) is now doing: we will soon see if shipping can retain control of the process as we seek the right mix of incentives and regulations to reduce GHG emissions in line with the Paris ambitions.
BV’s work, and our rules, are directly connected with the UN Sustainable Development Goals (SDGs) as we help shape a world of trust – and it is good to see more people talking about trust.
For us it is key – as a global testing, inspection and certification (TIC) company. And with more ships in class than any other classification society, we are trusted to safeguard the lives of so many thousands of seafarers, offshore workers and passengers. We work to retain that trust every single day.
Our containership rules, revised in 2020 and further updated in January, are constantly updated and have been developed based on deep understanding. We continue to invest in R&D to keep our rules up to the demanding environment and operational needs of modern shipping.
Michael Suhr – Regional Director North Europe – Korean Register:
»Since the fourth industrial revolution becoming more and more embedded in the maritime industry, our first priority is to accelerate the transition to be the industry leading digital classification society.
First of all, we are always looking to enhance the operational efficiency and simplicity of the survey work process and to improve the safety of the working environment for shipping companies and surveyors by applying new technologies like remote inspection techniques such as drones and crawlers or virtual reality.
Condition Based Maintenance (CBM) technology is also on the top of our list. We are working with ship owners and data analysis companies to install sensors on essential and auxiliary equipment on board newbuild and existing vessels to collect meaningful data which will be used to promote practical maintenance and energy efficiency of vessels.
Some of the other digitalization work undertaken by KR is building big data platform, ship cyber security certification, KR’s 3D based drawing approval, e-certificates, etc.
With Korea being an IT powerhouse, we have been able to hire engineers who are competent both in maritime engineering fields and IT technology. We are quite confident that our highly skilled people will provide us a competitive edge required to excel in this time of digital transformation.
The International Maritime Organization (IMO), at the 76th MEPC meeting, announced the enforcement of more stringent decarbonization regulations. Among them, the assignment of Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII) will be applied to existing ships from 2023, creating a great challenge to the maritime industry.
To this regard, KR has been providing customized technical services to allow its customers to adopt the most beneficial countermeasures for their individual vessels, such as determining exactly how much engine power limitation and reduction in ship speed is required. KR has also launched web-based smart software to provide EEXI calculations and CII, offering an easy and simple way to check whether a vessel meets the EEXI requirements or not.
Besides, KR has recently published six visual presentations on its Youtube channel, offering comprehensive guidance on EEXI/CII compliance, with details of its preliminary analysis and introducing energy saving devices which will help shipping companies to make the necessary changes to manage their decarbonization progress. KR is also developing manuals and will be offering training seminars to support this important and rapid industry transition.
As a transition fuel, there seems to be no better option than LNG for international shipping at this point in time. However, LNG is also fossil fuel, albeit emits less harmful gases into our atmosphere than the conventional carbon-based fuel. Consequently, to meet IMO‘s 2050 GHG goal, the use of LNG alone will not be enough and substantial portion of world’s merchant tonnage will need to burn alternative fuels that leave little or no carbon foot print.
However, in order to select right kind of alternative fuels, various factors such as price competitiveness of alternative fuels, eco-friendliness of whole fuel production process, infrastructure such as bunkering facilities, and safe transportation, etc. need to be considered.
Although various studies are currently underway to determine which alternative fuels would be the best choice for international shipping, for the time being, the hydrogen and ammonia seems to be two feasible options for ocean-going ships.
As a result, KR has been publishing regular technical information on carbon neutral fuels, such as ammonia, bio and hydrogen fuel, examining the technical advantages and disadvantages and providing an economic analysis on how each fuel is used. KR intends to complete and publish its new technical rules on carbon neutral fuel for shipping/propulsion vessels by 2023.«
Giosuè Vezzuto – EVP Marine – Rina:
»Our focus will be on energy transition and environmental, social and governance (ESG) criteria. We already have several projects and initiatives and are working with engine manufacturers and ship owners to deliver solutions to take the industry towards zero carbonization. Our work covers LNG as a transition fuel along with ammonia, hydrogen and bio-methane for a zero-carbon future. We have new classification rules for the use of ammonia as a fuel and expect to use these in projects in 2022. Cybersecurity is another key topic for the coming year, and we are working to help support cyber resilience. All these areas of our business will be supported with digital tools.
The IMO has set ambitious targets for 2030 and 2050. The goal is decarbonization, but this requires not only the technology but also availability of zero carbon fuels at economically sustainable levels. To succeed, we need to take advantage of the flexibility of technology that can be installed today and that can adopt the green fuels of the future. Today, LNG offers a substantial reduction in CO2 emissions and the engines will be able to burn green fuels in the future. While we see the point the World Bank is making, improvements in LNG technology have been made and, while LNG is not the fuel for 2050, it is a bridge and important step to allow the shipping industry to start the decarbonization process.
One of the biggest hurdles for green alternatives today is that they are still more expensive than traditional fuels. Governments could help by working on market measures to compensate the price difference.
The Ever Given accident was probably caused by a manoeuvring problem, not related to class regulations. Although we should wait for the final investigation reports, the apparent cause of the ONE Apus incident was heavy weather and not related to safety or stability rules. Routes are already selected based on weather forecasts, but real time tools to measure the actual sea spectrum around the ship advising on best heading and speed to reduce ship accelerations would offer an immediate increase in safety. Such technology is already in use in passenger vessels.«
