Larry Anderson

The maritime industry is not covered by the Paris climate agreement, which seeks to limit global warming to well below 2 degrees Celsius compared to pre-industrial levels. However, carbon emissions from maritime activities account for 2 to 3% of total global warming potential (GWP) worldwide, and the share is likely to increase in coming years, approaching 17% of CO2 emissions by 2050. The International Maritime Organisation (IMO) and its Marine Environment Protection Committee (MEPC) is tasked with regulating carbon usage in the maritime industry and has established aggressive goals – both near-term and long-term – to ensure carbon emissions from the maritime market decrease by at least 40% in 2030 (compared to 2008 levels), and by at least 50% by 2050. MEPC has new emissions reduction and efficiency requirements taking effect in 2023. Measures to reduce carbon emissions Binding across its 170 member states, IMO has adopted mandatory measures to reduce emissions of greenhouse gases under its pollution prevention treaty (MARPOL). The Energy Efficiency Design Index (EEDI) is mandatory for new ships, and the Ship Energy Efficiency Management Plan (SEEMP) is required for all ships. The Sustainable Shipping Initiative (SSI) is a multi-stakeholder initiative to improve the sustainability of the shipping industry in terms of social, environmental, and economic impacts. Founded in September 2010, SSI has 15 members spanning the shipping value chain, from charterers, shipowners and operators, to shipyards, banks, classification societies, and technology companies. Poseidon Principles Poseidon Principles are consistent with efforts of the IMO to reduce shipping’s total annual greenhouse gas emissions The Poseidon Principles establish a framework for banks and financial institutions to assess and disclose the climate alignment of ships to provide guidance and promote responsible environmental stewardship. The Poseidon Principles, signed by 20 financial institutions representing over $150 billion in loans to the shipping industry, are consistent with efforts of the IMO, seeking to reduce shipping’s total annual greenhouse gas emissions by at least half by 2050. Decarbonisation goals Some shipping companies are already setting individual decarbonisation goals beyond the IMO’s target, driven by their customers’ desire to reduce their global carbon footprint. The intensity of emissions has decreased somewhat in recent years because of larger ship sizes and slower traveling speeds. Interim solutions to lower carbon emissions include the use of liquefied natural gas (LNG) as a shipping fuel, which produces less carbon than the oil commonly used. LNG can also be less expensive but is not seen as a permanent solution because it still emits carbon. FuelEU Maritime initiative Global maritime technology networks promote the adoption of low-carbon technologies The European Commission has launched the FuelEU Maritime initiative, seeking to increase the use of sustainable alternative fuels in European shipping and ports. The European Union also seeks to include the shipping industry in a mandatory cap-and-trade carbon market, a so-called emissions trading scheme, as early as 2022. Also, the global maritime technology network (GMN), funded by the European Union, is a network of Maritime Technology Cooperation Centres (MTCCs) in Africa, Asia, the Caribbean, Latin America, and the Pacific. They seek to develop national maritime energy-efficiency policies, promote the adoption of low-carbon technologies and establish voluntary pilot data collection and reporting. Carbon Intensity Indicator (CII) ratings Scope ESG Analysis, a German credit rating, and analysis firm has launched a database to display Carbon Intensity Indicator (CII) ratings for the world’s commercial maritime fleet. Including 70,000 vessels, the Ship Review database provides transparency into each ship’s environmental, sustainability, and reliability/safety performance.  The CII rating system seeks to assist the maritime industry in reducing greenhouse gas emissions, measuring a ship’s operational efficiency in grams of CO2 emitted per deadweight tonnage and nautical miles travelled. Based on 2020 data, more than a third of the world’s fleet could fail to meet upcoming restrictions. GreenVoyage2050 Project The International Maritime Organisation is executing the GreenVoyage2050 Project through the Project Coordination Unit (PCU). The project seeks to help developing countries in their efforts to reduce greenhouse gas (GHG) emissions from ships. Longer-term fixes to lower greenhouse gases include a need for zero-carbon fuels and technologies Phase one of the project, signed with Norway in 2019, is currently underway. Phase one of the GreenVoyage2050 Project is scheduled to run until May 2022. Longer-term fixes to lower greenhouse gases include a need for zero-carbon fuels and technologies; however, they are not currently available at the size, scale, or price the industry needs for broad adoption. New fuels will need to be developed, along with new propulsion systems, upgraded vessels, and a new global refueling network. Need for zero-emissions technologies New zero-emissions fuels and technologies on the horizon include batteries, sustainable biofuels, green or blue hydrogen, and their derivatives such as ammonia and methanol. Blue hydrogen is produced from natural gas by splitting molecules into hydrogen and carbon dioxide and capturing and storing the CO2. Green hydrogen is produced by splitting water through electrolysis and powering the process using renewable electricity sources such as wind and solar.  However, zero-carbon technologies are far more expensive than current bunker fuel oil. A wide variety of global stakeholders are involved in trying to lower the impact of maritime’s carbon emissions on climate change. The maritime industry’s 2 to 3% impact may seem small, but the share could increase over time unless the industry continues to take action.

Backlogged ports, a shortage of shipping containers and not enough workers are among the factors contributing to supply chain disruptions that have led to shortages of various goods and are likely to impact availability of merchandise, during the upcoming holiday season. Demand is growing rapidly as the impacts of the COVID-19 global pandemic have diminished. However, lingering consequences of the pandemic are continuing to impact the container shipping market. With each element in the system tightly intertwined, any changes tend to ripple with additional repercussions. Slow circulatory movement of containers A direct upshot of the COVID-19 pandemic was to slow the circulatory movement of containers globally. To increase productivity and save time, some vessels began making their return journeys empty, in effect leaving more empty containers at the delivery destination and fewer at the source of shipments. The varied timing of the pandemic in Asia and the West compounded the problem At one point, Asian containers could not be sent back to Asia, because of COVID-19 restrictions in place. The varied timing of the pandemic in Asia and the West compounded the problem. With empty containers stacking up in the West and a shortage in the East, slower circulation of containers and higher demand have led to sharp increases in costs. Millions of TEU dry container units added A lack of new equipment is not the problem. Last year, the industry added about 2.8 million twenty-foot equivalent (TEU) units of dry containers, in line with the 10-year average. Congestion at ports has been going on for months and still continues. Recently, in the San Pedro Bay region, near the Port of Long Beach, in California, there were 144 ships, including 85 ships that were waiting to unload. In Savannah, Georgia, more than 20 container ships were waiting to dock. Ports in the US states of New Jersey, New York and Texas have also seen record backlogs. Majority of influential global ports face backlogs According to one report, 77% of the most influential ports in the world reported above-average wait times this year. The turn-around time for a container in ports has nearly doubled in 2021, in comparison to 2019. A worker shortage at the ports is aggravating the problem and container ships now carry about 30% more goods, which require more labour to unload. Ports are also doing the additional work with fewer people. There is also reduced labour productivity at warehouses and marine terminals. Investment in workforce training to counter bottlenecks Some port bosses expect the bottlenecks to last through the summer of 2022. To address the problem, some ports are investing in workforce training and scheduling night-time appointments to pick up goods. Although a lot of attention is focused on the ports, they are just one element in the troubled supply chain. Even if the ports could increase their capacity, downstream processes would also have to increase their labour force, to accommodate the higher volume. Difficult to absorb impact of global supply chain disruptions In the best of times, the global supply chain operates like a well-oiled machine In the best of times, the global supply chain operates like a well-oiled machine, despite its complexity and the inter-relatedness of various stakeholders. However, the sheer size of the system makes it difficult to absorb the impact of any disruptions. Turning the system around takes time, and a burgeoning global demand for goods, in the aftermath of a global pandemic, makes recovery even more difficult. The Biden Administration in the U.S. has established a Supply Chain Disruptions Task Force, to monitor and address short-term supply issues. This task force is convening meetings of stakeholders in industries with urgent supply-chain problems, such as construction and semiconductors, to identify the immediate bottlenecks, as well as potential solutions. Role of global supply chain more critical now There have been supply chain disruption and staff shortages in several countries, including the United Kingdom (UK), Germany and New Zealand, according to business surveys. As the economy recovered and demand increased, businesses have not yet been able to bring inventories fully back to pre-pandemic levels, causing inventory-to-sales ratios to fall. The role of the global supply chain has never been more critical.

If the ocean were a national economy, it would be the seventh largest in the world. Contributions of the oceans to energy production, transport and sustainable food production are essential to the global economy. In the global ‘blue economy,’ environmental protection and economic growth are intrinsically linked, especially in the maritime industry. The European Union has detailed a realistic agenda for the blue economy to play a major role to achieve the objectives of the European Green Deal, seeking to replace unchecked expansion with clean, climate-proof and sustainable activities that tread lightly on the marine environment. Preserving marine ecosystems “A sustainable blue economy will create tangible opportunities for new jobs and businesses,” says a European Commission report. “They will be created by work to mitigate the impacts on oceans and coasts to build a resilient economic model based on innovation, a circular economy and a respectful attitude to the ocean.” Businesses that use or generate renewable resources, preserve marine ecosystems, reduce pollution and increase resilience to climate change will be incentivised, while others will need to reduce their environmental footprint. A sustainable blue economy offers many solutions to achieve European Green Deal objectives A sustainable blue economy offers many solutions to achieve European Green Deal objectives. Many of the current activities need to reduce their carbon footprint, while new, carbon-neutral activities need to take centre stage. The blue economy can contribute to carbon neutrality by developing offshore renewable energy and by greening maritime transport and ports. Greenhouse gas emissions The European Green Deal calls for a 90% reduction in greenhouse gas emissions from all modes of transport, and this includes maritime transport. The world’s sea lanes are a key link to the global trading system. Though it generates comparatively fewer emissions than transport by road or air, maritime transport generates both carbon and other polluting emissions due to the volumes and a heavy reliance on fossil fuels. To support the decarbonisation and depollution of energy production, maritime transport and ports, the European Commission will create a Blue Forum for users of the sea to coordinate a dialogue among offshore operators, stakeholders and scientists engaged in fisheries, aquaculture, shipping, tourism, renewable energy and other activities. It will develop synergies between their activities and reconcile competing uses of the sea. Greening port services The blue economy can help alleviate pressure on the climate and on natural resources for food production It will also pursue the objective of zero-emission ports, including through its work with the sustainable ports sub-group of the European Ports Forum, to discuss with relevant stakeholders and share and promote best practices and bottom-up initiatives in greening port services. Biodiversity conservation and protection should be considered as foundational principles of maritime economic activity. By using marine resources better and by choosing alternative sources of food and feed, the blue economy can help alleviate pressure on the climate and on natural resources for food production. Better knowledge of the ocean and its ecosystems, together with free access to data, will enable industry, public authorities and civil society to make informed decisions. Sharing marine data Through common standards and open access principles, the European Marine Observation and Data Network (EMODnet) collates the measurements of hundreds of institutions to make the EU a model of best practice in sharing marine data and ocean observations. The Copernicus marine environment service provides satellite data and forecasting services in the EU sea basins and in the world. Since 2018, the blue economy report has mapped the blue economy in the EU Work is ongoing to improve the digitalisation of the ocean, the resolution and usability of the data and to transform this data into knowledge and tools for the benefit of a range of stakeholders. Socio-economic data are important inputs for policymakers and for businesses, who have to make snap decisions in a rapidly evolving environment, especially in times of crisis. Since 2018, the blue economy report has mapped the blue economy in the EU. Marine biological resources A user-friendly blue economy indicators tool tracks economic progress. The European Market Observatory for Fisheries and Aquaculture and the Blue Bioeconomy Report have collected, curated and disseminated data on the fishery and aquaculture markets and on innovative uses of marine biological resources. The commission proposes a maritime policy for this decade that will make the transition envisioned in the European Green Deal a reality in the ocean economy. The Commission will work with the European Parliament, the Council and other EU Institutions, where appropriate. It will reach out to all maritime stakeholders to engage with them in shaping a sustainable blue economy in a fair and equitable way.

Shipment of goods around the world has continued throughout COVID-19, but the pandemic has afforded unprecedented challenges to the maritime industry. When the pandemic necessitated health restrictions and limited international travel, the impact on crew change practices was monumental. More than a million seafarers work in demanding conditions to support 80% of world trade. Crews were trapped on board vessels for months and months, unable to return home and extending their tours of duty indefinitely. Especially impacted were major crew change port countries in Asia where the majority of seafarers reside. Protective health measures Seafarers are facing extended tours of duty and high levels of fatigue that could lead to a serious accident More than 18 months into the pandemic, the ongoing crew change crisis appears as intractable as the disease itself. Seafarers are facing extended tours of duty and high levels of fatigue that could lead to a serious accident. Thousands have been left stranded on ships beyond the terms of their contracts. If the crisis has an impact on safety, ships may be unable to continue operations, which could threaten the global supply chain. The International Maritime Organization (IMO) has issued a Framework of Protocols for crew change, recently updated, including recommendations such as designating marine personnel as ‘key workers,’ exempting them from travel restrictions, simplifying requirements for identity documents and approvals, implementing screening procedures, and providing basic protective health measures against COVID-19. Key maritime hubs Recognising a shared responsibility to resolve the crew change crisis, more than 800 companies and organisations have signed the Neptune Declaration on Seafarer Wellbeing and Crew Change. The declaration’s action points include recognising seafarers as key workers, implementing ‘gold standard’ health protocols, and ensuring air connectivity between key maritime hubs for seafarers. The declaration also promotes more collaboration between ship operators and charterers to facilitate crew change. The declaration’s action points include recognising seafarers as key workers Data from the 10 largest ship managers reflects a 50% increase between May and July 2021 in the proportion of seafarers onboard vessels beyond their contract expiry. The fast-spreading Delta variant has aggravated the problem, and a report for July suggests the problem is getting worse. The Maritime Labour Convention says the maximum continuous period a seafarer should serve on board a vessel without leave is 11 months. Crew change crisis However, the number of seafarers aboard vessels beyond their contract expiry has risen recently from 5.8% to 8.8%. The International Transport Workers’ Federation (ITF) estimates that more than 300,000 seafarers have extended their working periods on board due to delay in connection of their relief. Factors aggravating the crew change crisis include: There are many stakeholders with shared responsibilities that must be addressed. Collaboration and transparent sharing of information are needed to solve the problem. Working together is the only path to a solution. Lack of vaccine availability. Seafarers in developing countries do not have access to vaccines. Large seafarer nations such as the Philippines are reporting vaccine shortages. Priority access to vaccines is a critical factor in resolving the crew change crisis. Continuing high infection rates and domestic lockdowns. Given the Delta variant and other factors, it is clear the pandemic is far from over. Supply chain demands The crew change crisis has gone on for a year and a half, with the highest cost falling on seafarers, their health, and their families’ wellbeing. The importance of maintaining the global supply chain demands that the industry, the biggest ports and the key shipping transit points around the globe work collectively to address the lingering challenges of the crew change crisis.

The Mayflower departed from Plymouth, United Kingdom, this June with the intent of retracing the route of its famous historical namesake. The difference is that, in the case of the modern Mayflower, there was nobody on board the vessel, which operates autonomously. The vessel is able to assess the current environment, identify and avoid hazards, and maintain situational awareness using the ship’s edge computing technology. The Mayflower Autonomous Ship (MAS400) is a project of the marine research non-profit ProMare, incorporating IBM automation software. It uses artificial intelligence (AI) and solar energy, providing a platform to enable deeper understanding of issues such as climate change, ocean plastic pollution, and conserving marine mammals. Complex computer technologies The initial voyage of the Mayflower Autonomous Ship came to an end three days later when a mechanical problem developed with the ship’s generator. Over the course of the journey, MAS400 cruised at an average speed of 7 knots and covered 450 nautical miles in a west-southwest direction, according to ProMare. Plans are for MAS400 to return to the water and resume tests and long-range trials within weeks Ironically, it was a hardware component that ended the trip and not directly related to the complex computer technologies that enable the vessel to operate autonomously. Plans are for MAS400 to return to the water and resume tests and long-range trials within weeks. The innovation that drives the MAS400 project is also enabling a worldwide trend toward autonomous shipping technologies, which are poised to revolutionize the trade sector by increasing sustainability and minimizing vessel collision. Remotely controlled ships When discussing automation in the maritime sector, it is useful to consider the various degrees of autonomy. In addition to the traditional ‘manned’ approach, an automated ship might run pre-programmed software to analyse conditions. Alternatively, a fully autonomous ship can analyse data to calculate the consequences and risks and make independent decisions. The transition from manned to fully autonomous is likely to occur in degrees in the coming years. At the first stage, ships may be equipped with automated processes and support for human decision-making. More automation helps to reduce mental workload for the crews and increase their productivity. At the next level, remotely controlled ships may be deployed with crews on board. The crews could ensure safety of entering and departing a port, with the ocean passage more automated. Collision avoidance methods The crews may be eliminated, and the ships operated completely by remote control Alternately, the crews may be eliminated, and the ships operated completely by remote control. The final stage is fully autonomous ships, which include the ability to determine actions and make decisions independently. Advantages of autonomous shipping include less possibility for human error, lower crew costs, safer treatment of aquatic life, and better fuel efficiency. Current collision avoidance methods do not adequately compensate for human error, which would not be a problem with broader adoption of autonomous ships. On-board computer systems can deploy AI and machine learning to collect and crunch data on position, speed and route to more accurately address the risk of collision. Collision avoidance systems have been developed by companies such as Orca AI and Fujitsu Laboratories. Monitoring fleet movements The degree of autonomy will vary based on the types of trade and trading patterns Implementing the technology will require a large capital investment, both in the ships themselves and in onshore operations centres to monitor fleet movements. With no crew at all on board, maintenance issues of moving parts will be a challenge on long voyages. Desirability of autonomy varies by the application. For example, a small inland and coastal craft might be more easily automated than a large trans-Atlantic container ship. How soon will autonomous ships be the norm? It is likely to be within the next several years. For example, the Yara Birkeland is an inland electric container ship that is likely to be fully autonomous by 2022. Broadly speaking, the degree of autonomy will vary based on the types of trade and trading patterns. Looking long-term, there is a need for an in-depth cost and benefit analysis of the technology, which will pave the way for broader adoption.

The cruise ship industry has cracked the code on keeping passengers and crew safe from the coronavirus (COVID-19) spread, including changes to on-board HVAC systems, to use more outside air and to filter out particles as small as the novel coronavirus. The industry, which voluntarily suspended worldwide operations at the beginning of the COVID-19 pandemic, under the guidance of international and national health authorities, plans to resume worldwide operations fully later in 2021. Health protocols to mitigate COVID-19 risk The cruise ship industry resumed sailing in parts of Europe, Asia and South Pacific in July 2020 The cruise ship industry resumed sailing in parts of Europe, Asia and South Pacific in July 2020 and completed more than 200 sailings by the end of 2020. The success of these early sailings demonstrated the effectiveness of new protocols to mitigate risk of COVID-19 among passengers, crews and at destinations. The industry will resume operation in the United States, Canada, Mexico, the Caribbean and elsewhere in 2021. Cruise operators, such as Royal Caribbean, have implemented new HVAC systems as part of the protocols. Royal Caribbean's HVAC system for 100% filtered air Royal Caribbean says its HVAC system now continuously supplies 100% fresh and filtered air from outdoors to all indoor spaces. There is a total air change up to 12 times an hour in staterooms and about 15 changes per hour in large public spaces. Fan coil units provide an extra layer of protection in local spaces, such as public venues and staterooms, continuously scrubbing the air of pathogens and using MERV 13 filters to capture aerosols between 1.0 and 3.0 microns with 90% efficacy. Bio-aerosol assessment study Royal Caribbean participated in a bio-aerosol assessment of its ‘Oasis of the Seas’ ship by the University of Nebraska Medical Center. The study involved releasing billions of 1-micron aerosol-sized microspheres, each containing a uniquely DNA-barcoded inert virus surrogate, at pre-selected spaces throughout the ship. The test was intended to determine the efficiency and effectiveness of the vessel’s indoor air management strategies and to understand spread of aerosols through the HVAC system.  Low risk of cross-contamination of air Testing results led to minimal changes, such as ensuring air exchanges are close to hospital standards and using MERV 13 filters Over a week aboard the Oasis of the Seas, scientists released billions of the individually tagged microspheres and then tracked where they went and how long they lingered in the air, and on surfaces. Testing results led to minimal changes, such as ensuring air exchanges are close to hospital standards and using MERV 13 filters. The study confirmed that cross-contamination of air between adjacent public spaces is extremely low and undetectable in most test cases. Royal Caribbean’s Healthy Sail Center determined seven important elements the cruise line can do to manage indoor air and keep it clean. These elements include: Enhanced filtration to the highest level possible Optimise airflow patterns Use negative pressurisation in isolation rooms Minimise unfiltered, re-circulated air Increase number of air changes per hour Use portable HEPA filters in congregate areas Maximise outdoor functions and physical distancing return to operation of cruise ships At the start of the COVID-19 pandemic, between March 1 and July 10, 2020, the Centers for Disease Control and Prevention (CDC) discovered nearly 3,000 cases of COVID -19 or suspected COVID-19 infections and 34 deaths across 123 cruise ships. In October 2020, the CDC lifted its no-sail order, laying out guidelines for big-ship cruising to resume operations in U.S. waters. The Cruise Lines International Association (CIA), which represents 95% of the cruise ship industry, has said its members will return when the time is right and that timing will be based on factors, including input from scientists and medical experts. Cruise companies also have new technologies available to them now. For example, the Italian company, Integra provides an air sanitizer that uses an odorless disinfectant to combat airborne illnesses. It can be installed in 15 minutes.