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Quarterly Neptune Declaration Indicator shows continued rise in vaccinations and still fewer crew members onboard after expiration of their contracts

The Neptune Declaration Crew Change Indicator for the third quarter of 2022, shows that the number of seafarers onboard vessels beyond the expiry of their contract has decreased from 4.2% to 3.3% since the last Indicator was published in July. Third Quarter Indicator The number of seafarers onboard vessels for more than 11 months has remained stable at 0.3% since May 2022, down from 1.3% in August 2021, when the numbers were at the highest level. The Third Quarter Indicator also shows that the aggregate percentage of seafarers from the sample who have been vaccinated has risen from 89.3% to 92.8% during the past quarter, which is an increase of 3.5 percentage points since July. Crew change restrictions China remains the main challenge due to continued severe restrictions and lockdowns Ship managers report that the situation remains largely stable since the last indicator in July 2022, with fewer crew change restrictions, flight cancellations, and lockdowns, even though the situation in Ukraine still causes delays overall. China remains the main challenge due to continued severe restrictions and lockdowns, with the non-Chinese crew still being prohibited from crew changes in Chinese ports.  Strict protocol requiring Japan also maintains a somewhat strict protocol requiring review and approval of crew movements at the first Japanese port, which causes delays especially when vessels performed crew changes within 14 days before arrival in Japan, while other countries, such as Brazil, still refuse to disembark non-vaccinated crew.  Finally, ship managers continue to report growing recruitment efforts to ensure the necessary crew onboarding. Vaccination rates Most ship managers experience little resistance toward vaccination among their crew Vaccination rates continue to grow above and beyond national averages, although ship managers also report concerns about the duration of existing vaccination immunity, continued risks of new variants, and expected rising numbers in coming months. Most ship managers experience little resistance towards vaccination among their crew, yet some ship managers also see a certain degree of vaccination fatigue emerging. Ship managers still actively pursue vaccinating all unvaccinated crew members, some ship managers now report vaccination rates of 100% among the existing crew, while also having unvaccinated seafarers awaiting vaccinations in their home countries. Crew Change Indicator “The Crew Change Indicator for the third quarter of 2022 shows that the crew change challenges are diminishing globally, however with regional challenges pertaining in Asia, notably in China, due to continued Covid restrictions despite record high vaccination rates overall,” says Ph.D. Susanne Justesen, Project Director Human Sustainability, Global Maritime Forum. "The most recent Indicator thus suggests that the global crew change situation has stabilised." Aggregated data The Neptune Declaration Crew Change Indicator is published every quarter and builds on aggregated data The Neptune Declaration Crew Change Indicator builds on aggregated data from ten managers: Anglo-Eastern, Bernhard Schulte, Columbia Shipmanagement, Fleet Management (FLEET), OSM, Synergy Marine, Thome, V.Group, Wallem Ship Management, and Wilhelmsen Ship Management which collectively have about 100,000 seafarers currently onboard. The Neptune Declaration Crew Change Indicator is published every quarter and builds on aggregated data provided by the ship managers to the Global Maritime Forum. The proportion of vaccinated seafarers The data is used to calculate a weighted average of the percentage of seafarers who have been onboard vessels beyond the expiry of their contract of employment, a weighted average of the percentage of seafarers who have been onboard vessels for over 11 months, and a weighted average of the percentage of seafarers who have been vaccinated. As top ship managers are making significant efforts and are often better placed in facilitating crew changes, the Neptune Declaration Crew Change Indicator cannot be used directly to calculate the full number of seafarers impacted by the crew change crisis. Likewise, the calculated percentage of seafarers who have been vaccinated is likely to overestimate the actual proportion of vaccinated seafarers.

Neptune Indicator still confirming a ‘new normal’, while transition into a new phase of the Indicator

The latest Neptune Indicator research shows that the number of seafarers onboard vessels beyond the expiry of their contract has decreased slightly to 4.2% from 4.3% in the last month, while the number of seafarers onboard vessels for over 11 months has remained stable at 0.3%. For the eighth consecutive month, Global Maritime Forum observe little change in the numbers reported, as it confirm the entry into a ‘new normal’. The Neptune Indicator also reports a 2.8 percentage point increase in seafarer vaccines, from 86.2% in June to 89.3% in July. Increased seafarer vaccines Ship managers reported few new developments or difficulties in carrying out crew changes. While restrictions in some countries persist, quarantine requirements have loosened in China and overall COVID-related crew change restrictions have eased. Seafarer vaccines have reached high numbers and ship managers continue to actively provide vaccinations to their crew, whether onshore in ports or their home countries. There do remain some insecurities around vaccines and ship managers report a global shortage of Ukrainian and Russian crew due to the ongoing conflict. Data indicator moving forward The group confirmed the value of having an Indicator providing up-to-date information A year after the first report was published, the ship managers providing data to the Indicator convened in early June 2022 to take stock of the past year and to discuss the need for the Indicator moving forward. The group confirmed the value of having an Indicator providing up-to-date information on the crew change situation. Frequency of COVID-19 In light of the easing of the COVID-related crew change crisis, it was agreed to move from monthly to quarterly reporting with the possibility of increasing the frequency if new variants of COVID-19 and/or other crises start negatively impacting the possibility of carrying out crew changes. The group also expressed a willingness to explore how the Indicator could be developed to cover other areas of importance to seafarer wellbeing such as access to shore leave. Supporting seafarer wellbeing “I am encouraged by the willingness and desire of ship managers to collaborate and share data that can be used to monitor and push for access to crew change," says Kasper Søgaard, Managing Director, Head of Institutional Strategy and Development, at Global Maritime Forum.  Kasper Søgaard adds, "We look forward to continuing the work on the Neptune Declaration Crew Change Indicator and developing the initiative so it continues to support seafarer well-being." Neptune Declaration Crew Change Indicator Neptune Declaration Crew Change Indicator builds on aggregated data provided by the ship managers The Neptune Declaration Crew Change Indicator builds on aggregated data from ten leading ship managers: Anglo-Eastern, Bernhard Schulte, Columbia Shipmanagement, Fleet Management (FLEET), OSM, Synergy Marine, Thome, V.Group, Wallem Ship Management, and Wilhelmsen Ship Management which collectively have about 100,000 seafarers currently onboard. The Neptune Declaration Crew Change Indicator builds on aggregated data provided by the ship managers to the Global Maritime Forum. The proportion of vaccinated seafarers The data is used to calculate a weighted average of the percentage of seafarers who have been onboard vessels beyond the expiry of their contract of employment, a weighted average of the percentage of seafarers who have been onboard vessels for over 11 months, and a weighted average of the percentage of seafarers who have been vaccinated. As top ship managers are making significant efforts and are often better placed in facilitating crew changes, the Neptune Declaration Crew Change Indicator cannot be used directly to calculate the full number of seafarers impacted by the crew change crisis. Likewise, the calculated percentage of seafarers who have been vaccinated is likely to overestimate the actual proportion of vaccinated seafarers.

Neptune Indicator numbers remain consistently stable, pointing to a return to a normal situation

The latest Indicator shows that the number of seafarers onboard vessels beyond the expiry of their contract has decreased slightly to 4.3% from 4.5% in the last month, while the number of seafarers onboard vessels for over 11 months has remained stable at 0.3%. These numbers remain very close to what has been reported since December 2021, confirming a stabilisation of the situation. Neptune Indicator The Neptune Indicator also reports a 2.8 percentage point increase in seafarer vaccines, from 83.6% in May to 86.2% in June, as seafarer vaccinations keep increasing at a good and steady pace. Ship managers continue to report mixed developments regarding the global crew change situation.  Restrictions and shortages A shortage of Ukrainian and Russian seafarers was reported due to the ongoing conflict and restrictions Positive developments were reported with an observed decline in the number of infected seafarers onboard vessels while crew change restrictions and quarantine requirements have been eased in several places, such as in some Chinese cities. Nonetheless, strict restrictions persist in Japan and despite the easing of Chinese restrictions, there remain many difficulties in conducting crew changes. In addition, a shortage of Ukrainian and Russian seafarers was reported due to the ongoing conflict, sanctions, and restrictions. Seafarer vaccination growth Seafarer vaccination growth remains strong as high levels of inoculation are being recorded. While there persist some difficulties in vaccinating seafarers while onboard, ship managers are looking into providing vaccines to seafarers once in their home country. Complications related to the vaccination of Russian and Ukrainian seafarers persist, as progress is slow. Additionally, there are still concerns about the risk of infection onboard and access to booster doses. Stabilisation trend “The June Neptune Indicator reinforces the stabilisation trend of the first half of 2022 and still records positive progress on vaccines,” says Kasper Søgaard, Managing Director, Head of Institutional Strategy and Development, at Global Maritime Forum. Kasper Søgaard adds, "Global challenges and country restrictions continue to complicate some crew changes, but the overall picture points towards a return to a more normal situation." Crew Change Indicator Neptune Declaration Crew Change Indicator is published once a month and builds on aggregated data The Neptune Declaration Crew Change Indicator builds on aggregated data from leading ship managers: Anglo-Eastern, Bernhard Schulte, Columbia Shipmanagement, Fleet Management (FLEET), OSM, Synergy Marine, Thome, V.Group, Wallem Ship Management, and Wilhelmsen Ship Management which collectively have about 100,000 seafarers currently onboard. The Neptune Declaration Crew Change Indicator is published once a month and builds on aggregated data provided by the ship managers to the Global Maritime Forum. The proportion of vaccinated seafarers The data is used to calculate a weighted average of the percentage of seafarers who have been onboard vessels beyond the expiry of their contract of employment, a weighted average of the percentage of seafarers who have been onboard vessels for over 11 months, and a weighted average of the percentage of seafarers who have been vaccinated. As top ship managers are making significant efforts and are often better placed in facilitating crew changes, the Neptune Declaration Crew Change Indicator cannot be used directly to calculate the full number of seafarers impacted by the crew change crisis. Likewise, the calculated percentage of seafarers who have been vaccinated is likely to overestimate the actual proportion of vaccinated seafarers.

Insights & Opinions from thought leaders at Fleet Management Limited

Ammonia’s role in the future of maritime decarbonisation

Ammonia is gaining traction as a future fuel in the maritime industry, primarily due to its potential to significantly reduce greenhouse gas emissions. A key driver for ammonia's interest is that it can be carbon-free when combusted, which aligns with the maritime industry's increasing pressure to meet emissions regulations. However, most ammonia production currently relies on fossil fuels. Transitioning to "green ammonia" production is crucial for sustainability. If "green ammonia" is produced using renewable energy sources, it offers a pathway to near-zero emissions shipping. Safety measures and regulations Ammonia’s volumetric energy density – higher than hydrogen – makes it more practical for onboard storage. However, ammonia is toxic, which requires stringent safety measures and regulations for handling and storage. The combustion of ammonia can produce nitrous oxide (N2O), a potent greenhouse gas. Therefore, mitigation technologies are needed. Building the necessary infrastructure for ammonia bunkering and supply will be a significant undertaking. Developing guidelines for safe use Ammonia is poised to play a significant role in the maritime industry's transition to a future The International Maritime Organization (IMO) is developing guidelines for the safe use of ammonia as a marine fuel. Increasing numbers of companies are investing in the development of ammonia-fueled vessels and technologies.   European Union (EU) legislation, such as the EU Emissions Trading System (ETS) and the FuelEU initiative to support decarbonisation, are pushing the maritime industry towards the use of alternative fuels, which is increasing the potential of ammonia. While challenges remain, ammonia is poised to play a significant role in the maritime industry's transition to a more sustainable future. Ongoing research and development   Ongoing research and development are focused on improving safety, reducing emissions, and scaling up production. In essence, ammonia offers a promising pathway for the maritime industry to reduce its carbon footprint, but its widespread adoption depends on overcoming technical and logistical challenges. Working toward the future of ammonia Progress is already happening as the maritime industry works toward a future that includes the use of ammonia as a fuel. For example, one project underway aims to be a pioneer in establishing a comprehensive and competitive supply chain to provide clean ammonia ship-to-ship bunkering in the U.S. West Coast. Progress is already occurring as the maritime industry works toward a future A feasibility study is being conducted at the Port of Oakland, Benicia, and nearby major ports on the U.S. West Coast. A Memorandum of Understanding (MOU) between American Bureau of Shipping, CALAMCO, Fleet Management Limited, Sumitomo Corp. and TOTE Services LLC is jointly conducting the feasibility study. "We are proud to share our industry-pioneering expertise in ammonia as a marine fuel to support this study on the U.S. West Coast,” said Panos Koutsourakis, Vice President of Global Sustainability at the American Bureau of Shipping. “Our expertise in developing safety guidelines will support the consortium to address the ammonia-specific set of safety and technology challenges.” More global ammonia developments In another development, three LPG/ammonia carrier ships have been ordered at the South Korean shipyard HD Hyundai Heavy Industries (HD HHI). Danish investment fund European Maritime Finance (EMF) and international shipping company Atlas Maritime have confirmed the order. HD HHI’s parent company, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), revealed the order for $372 million in March 2024. The three 88,000 cubic-metre LPG dual-fuel carriers, capable of carrying and running on ammonia, are scheduled for delivery in December 2027. The vessels will be named EMF Viking I, II, and III. Also, Lloyd’s Register (LR) and Guangzhou Shipyard International have signed a joint development project to design the world’s largest very large ammonia carrier (VLAC). The design of the 100,000-cubic-metre vessel has been assessed in line with LR’s Structural Design Assessment and prescriptive analysis. The gas carrier will have an independent IMO Type B tank for safe carriage of the chemical. Zero-emissions operations The cargo ship, which will be 7,800 dwt, is designed to transport timber from Norway to Europe “As major economies look to co-fire ammonia in their coal power stations to reduce the CO2 footprint of their national energy mix, shipping will play a key role in distributing clean hydrogen-based commodities such as ammonia, thereby supporting nations to meet their Paris Agreement commitments," says LR's Chief Executive Nick Brown. Furthermore, a partnership of companies from Norway has ordered a pioneering short-sea cargo ship that will advance the industry’s ability to provide zero-emissions operations. The cargo ship, which will be 7,800 dwt, is designed to transport timber from Norway to Europe and will be the first to operate on ammonia and electricity. Amogy’s ammonia-to-electrical power system A start-up company focusing on ammonia-to-power technology, Amogy, demonstrated the first tugboat powered by its cracking technology just short of the fourth anniversary of the company’s launch. The trip of a 67-year-old tug along a tributary of New York State’s Hudson River is part of the company’s works to develop and commercialise its technology to decarbonise the most difficult industries. Amogy’s ammonia-to-electrical power system splits, or “cracks,” liquid ammonia into its base elements of hydrogen and nitrogen. The hydrogen is then funnelled into a fuel cell, generating the power for the vessel. Research points to the risks of ammonia The chemical, made of hydrogen and nitrogen, can also be burned as a zero-carbon fuel Today and in the future, ammonia, a main component of many fertilisers, can play a key role in a carbon-free fuel system as a convenient way to transport and store clean hydrogen. The chemical, made of hydrogen and nitrogen, can also be burned as a zero-carbon fuel. However, new research led by Princeton University scientists illustrates that even though it may not be a source of carbon pollution, ammonia's widespread use in the energy sector could pose a grave risk to the nitrogen cycle and climate without proper engineering precautions. Use of ammonia U.S. National Science Foundation (NSF)-supported research found that a mismanaged ammonia economy could ramp up emissions of nitrous oxide, a long-lived greenhouse gas around 300 times more potent than carbon dioxide and a major contributor to the thinning of the stratospheric ozone layer. The use of ammonia could lead to substantial emissions of nitrogen oxides, a class of pollutants that contribute to the formation of smog and acid rain. And it could directly leak fugitive ammonia emissions into the environment, forming air pollutants, impacting water quality and stressing ecosystems by disturbing the global nitrogen cycle. Negative impacts of an ammonia economy The researchers found that the potential negative impacts of an ammonia economy "We have great hope that ingenuity and engineering can help reduce our use of carbon-based energy sources," said Richard Yuretich, a program director in NSF's Division of Earth Sciences. "But caution is advised because of unintended environmental spillover effects that may result from new technology." The researchers found that the potential negative impacts of an ammonia economy may be minimised with proactive engineering practices, but the possibility of risks should not be taken lightly. Addressing an inconvenient reality As interest in hydrogen as a zero-carbon fuel has grown, so too has an inconvenient reality: It is notoriously difficult to store and transport over long distances, requiring storage at either temperatures below -253 degrees Celsius or at pressures as high as 700 times atmospheric pressure. Ammonia, on the other hand, is much easier to liquify, transport and store, and capable of being moved around similarly to tanks of propane. Nonetheless, the cycle of nitrogen is delicately balanced in Earth's critical zone, and extensive research must be undertaken to investigate the repercussions of ammonia combustion and to develop new methods to minimise the risks. Challenges of ammonia as a maritime fuel Here's a breakdown of the key challenges of using ammonia for maritime fuel:   Toxicity and Safety: For human health, ammonia is highly toxic, posing a serious risk to human health through inhalation or skin contact. This necessitates stringent safety protocols, advanced leak detection systems, and thorough crew training. Relating to the environment, leaks can also harm aquatic ecosystems, requiring robust containment and mitigation measures. Combustion Challenges: Ammonia's combustion characteristics are less favourable than traditional fuels, requiring modifications to engine design and potentially the use of pilot fuels. Emissions: Combustion can produce nitrogen oxides (NOx) and nitrous oxide (N2O), both of which are harmful pollutants. Mitigating these emissions is crucial. "Ammonia slip" is also a concern, in which unburnt ammonia is released. Infrastructure and Supply Chain: Establishing a global network of ammonia bunkering infrastructure is a massive undertaking, requiring significant investment and coordination. Scaling up "green ammonia" production, using renewable energy, is essential for its sustainability. This requires a robust and reliable supply chain. Storage: Ammonia has specific storage requirements, and onboard storage systems must be designed for safety and efficiency. International Standards Needed: Consistent and comprehensive international regulations and standards are needed for the safe handling, transportation, and use of ammonia as a marine fuel. While the IMO is developing Guidelines, complete and ratified rules are still needed. Economic challenges: "Green ammonia" is currently more expensive than traditional fuels, although costs are expected to decrease as production scales up. Significant investments are needed in research, development, and infrastructure to make ammonia a viable maritime fuel. Also, dedicated ammonia-fueled engines are still under heavy development, and do not have widespread availability. The path to commercialisation Overcoming the variety of technical and other obstacles will require collaboration among governments, industry stakeholders, and research institutions. The timeline for ammonia deployment in maritime applications is actively unfolding, with key milestones happening now and soon. 2025 marks the first trials of two-stroke, ammonia dual-fuel engines on oceangoing ships. Engine manufacturers like MAN Energy Solutions and WinGD are progressing with their engine development, with initial deliveries soon. These pilot projects are crucial for gathering real-world data and building confidence in ammonia as a marine fuel.   Development of comprehensive regulations As the maritime industry faces, ammonia is hoped to play a growing role in the fuel mix Gradual commercialisation will follow in the late-2020s as the technology matures and the infrastructure develops. The focus will be on refining engine technology, improving safety protocols, and establishing bunkering facilities in key ports. Wider adoption will likely follow in the 2030s, depending on factors such as the cost of green ammonia, the development of comprehensive regulations, and the expansion of the global supply chain. As the maritime industry faces increasing pressure to decarbonise, ammonia is expected to play a growing role in the fuel mix. Future of maritime It's likely that a combination of ammonia and other alternative fuels and technologies will be used in the future of maritime. Alternatives include methanol, liquid natural gas (LNG), hydrogen, biofuels, electric propulsion, and even nuclear power.  Ammonia is a strong contender, bit it faces stiff competition from other promising technologies. The maritime industry's transition to a sustainable future will likely involve a diverse mix of fuel solutions.

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