This week, Fathom Maritime Intelligence put expert ship efficiency discussions firmly on the global agenda at the fifth annual Ship Efficiency: The Event, this year as an official part of London International Shipping Week.
Ship Efficiency: The Event 2015 saw more than 350 maritime professionals enter London’s Queen Elizabeth II Conference Centre for two days of debate, discussion, seminars, workshops and a bustling exhibition.
In this week’s industry spotlight, Fathom looks back at the successes and highlights of Ship Efficiency: The Event 2015.
Welcome Session
– A Fathomable Welcome – Alison Jarabo, Director Fathom
– Chairman’s Welcome – David Balston, Director of Policy UK Chamber of Shipping
Ship Efficiency: The Event was opened by Alison Jarabo, Director Fathom Maritime Intelligence, giving a ‘fathomable welcome’ to the delegates. Ms Jarabo highlighted the importance of efficiency in meeting the challenges the industry currently faces and being overall successful. Ship Efficiency: The Event is a place to discuss efficiency in all its facets and to learn about the wide array of solutions out there. She concluded her speech by saying“We hope this conference and exhibition proves the industry is breaking boundaries and making strides towards a safer, more efficient and more attractive industry. “
Following the speech, David Balston, Director of Policy of the UK Chamber of Shipping and chairman of the Ship Efficiency Conference, welcomed the audience and set the scene for two interesting days of presentations, discussions, questions and debate.
2015: The Year of Recovery?
– Smarter Operations for the Future – Ronald Spithout, President Inmarsat Maritime
– The Role of Technology – Dr Jan Otto de Kat, Director of Energy Efficiency ABS Europe
– What Lies Ahead – Dr Martin Stopford, Non-Executive President, Clarksons Research Services
The first session of the event offered a review of the shipping sector in 2015 and provided an outlook into what to expect in the coming years.
Ronald Spithout, President Inmarsat Maritime presented the audience with his expectations of smarter operations in the future, arguing that over the next decade, we will see a 1,000x increase in data storage systems and that those companies failing to embrace and exploit big data are at risk of losing their competitive advantage and becoming obsolete. Already over the past couple of years, the landscape of shipping has changed dramatically, with a move towards the autonomous ship expected in 2020. Inmarsat is revolutionising the future of maritime communications and investing heavily into global satellite coverage with the launch of its Global Xpress satellites. Mr Spithout also publicly announced Inmarsat’s partnership with Rolls-Royce on the Autonomous Ship Project. For more information on this, please click here.
In the following presentation, Dr Jan Otto de Kat, Director of Energy Efficiency ABS Europe outlined his vision of a holistic, lifecycle approach to maximise the value of a ship asset. Such a holistic approach is needed on various levels, for example in terms of ship design where ships are usually designed for one speed, even though the typical operational profile is very different and more flexibility is needed. Owners should also take a proactive approach to asset maintenance and management by using concepts like condition-based monitoring. In general, Dr. de Kat views the application of technology not just as a means to driving operating costs as low as possible, but to generate the highest potential earnings over the ship’s lifecycle and increase its value, and suggests that owners adopt this broader, more holistic view.
In the session’s last presentation, Dr Martin Stopford, Non-Executive President, Clarksons Research Services explained how smart shipping can offer a new business model to the industry and what shipping might do (if we are really smart). This, according to Dr Stopford, includes automating and de-skilling ship operations, merging ship and shore staff into a single, more productive team, integrating fleet systems following the example of car manufacturer BMW, using big data to find ways to improve performance and informing management on how the business is performing. He then talked the audience through his ‘smart shipping toolbox’ which includes telematics such as sensors, automation tools, satellite communication, data storage systems, smart phone-style apps and information systems that inform management about performance levels.
The Ship of Tomorrow
– The Adaptable Approach – Chris Craddock, Fluid Dynamics Manager, Lloyd’s Register
– Towards Unmanned Ships – Oskar Levander, VP Innovation, Engineering & Technology Rolls-Royce Marine
– The Value of Performance Data Analysis – Stein Kjølberg, Global Sales Director, Jotun
– Enabling Infrastructure for LNG Powered Vessels – Morten Christophersen, CEO Connect LNG
The concept behind the ‘ship of tomorrow’ was the next topic of discussion on the agenda.
Chris Craddock, Fluid Dynamics Manager at Lloyd’s Register Marine, explained that designing and operating a ship with maximum returns is not just about the provision of data, but equally about knowing how to use the data for optimising a ship’s design and performance. He argued that a ship needs to be able to adapt to the volatile market and increasing number of influencing variables in order to stay ahead of the game. Despite the availability of high level monitoring systems, the industry often feels “overwhelmed with the data options available”. To enable smart decisions for optimised routing, based on the data given, “smart design, smart analysis, and expertise are essential,” he explained.
Oskar Levander, VP, Innovation, Engineering & Technology, Rolls-Royce Marine, shed a different light on what the future of shipping may hold: the unmanned ship. The unmanned ship is a concept often talked of, but the reality of bringing it to the industry is still full of uncertainty. Mr. Levander drew on the importance of the ‘intelligent’ ship: one that not only makes use of the ever-increasing connectivity available, but also one that utilises crew skills more efficiently and lowers energy and water consumption onboard. Additionally, Mr. Levander stated that by using autonomous ships the safety of crew could be improved as most accidents occur due to human error, attributed to severe fatigue.
Stein Kjølberg, Global Sales Director, Jotun, highlighted the importance of having access to reliable performance data analysis in order to achieve maximum efficiency for tomorrow’s ship. For instance, hull and propeller performance remains relatively poor today due to the lack of measurability. Mr. Kjølberg stressed that “if one cannot measure a return on investment, an investment has no value”. A commonly agreed measurement method is vital in order to acquire reliable and comparable data, providing benchmarking opportunities to help achieve substantial energy and fuel savings.
The final topic of discussion in the ‘Ship of Tomorrow’ session was given by Morten Christophersen, CEO Connect LNG, who drew upon the challenges regarding liquefied natural gas (LNG) infrastructure. The rise in LNG trading warrants increasing terminals, however, cost, time and regulations for building quays and jetties are hindering the development of LNG infrastructure. Connect LNG are removing the need for jetties and dredging the seabed to reduce the largest cost driver in LNG terminals via their Universal Transfer System (UTS). An estimated 80% cost savings can be attained and as the system is universal no ship modifications are required. Furthermore, Mr Christophersen stated that the UTS requires minimal intervention with the marine environment because of its floating status, reducing regulatory hurdles that often prevent infrastructural development in the shoreline.
Regulatory Affairs
Moderator: Lars Robert Pedersen, Deputy Secretary General, BIMCO
Panellists:
– Arsenio Dominguez, Chairman, MEPC
– Katy Ware, Permanent Representative of the UK to IMO, UK Maritime & Coastguard Agency
– Niels Bjørn Mortensen, Head of Regulatory Affairs, Maersk Maritime Technology
– Jeffrey Lantz, Director of Commercial Regulations & Standards, US Coast Guard
Following the success of the exclusive IMO Panel session at last year’s Ship Efficiency: The Event, Fathom was honoured to welcome Arsenio Dominguez, IMO MEPC; Katy Ware, UK Maritime & Coastguard Agency, Jeffrey Lantz, US Coast Guard and, representing the ship owners’ perspective, Niels Bjørn Mortensen, Maersk Maritime Technology.
Questioned by Lars Robert Pedersen, Deputy Secretary General, BIMCO, the four panellists discussed a variety of topics, ranging from a potential rewrite of SOLAS (which none deemed an option), ballast water management, air and greenhouse gas emissions to the upcoming COP21 meeting in Paris at the end of the year.
Unsurprisingly, a lot of the debate regarding ballast water management focussed on the entry into force of the IMO Convention and on US Coast Guard type approval, but also on biofouling as a way for invasive species to spread.
The panellists then went on to discuss the IMO’s progress on developing a global data collection system for fuel consumption of ships which is “incredibly difficult” and a “very political debate”, but “there’s good will and intention”, according to Katy Ware. Arsenio Dominguez added that while progress may seem slow, “quite important baby steps” had been taken.
An interesting discussion evolved around potential consequences for shipping of the Paris climate conference later in the year which Katy Ware was wary about. “We can’t have other people setting targets for shipping; we are the experts,” she said. Generally, it is hard to predict what will ultimately come out of the Paris deal, also because politically, as Jeffrey Lantz argued, climate envoys outrank their counterparts in the IMO, added Jeffrey Lantz of the US coastguard. “We have already charted our course,” said Lantz. “We are all realistic that the COP [Paris climate summit] could make a decision that would change that at the IMO.”
Lastly, the panellists discussed the entry into force of a global sulphur cap in 2020/2025 and the industry’s concerns regarding enforcement thereof. Jeffrey Lantz made the point that while Port State Control have a certain amount of authority, “simply relying on it is limiting” and that instead industry could help with enforcement, for example by monitoring fuel data and providing it to the authorities.
Financing Efficiency
– Resolving the Split Incentive – Alastair Fischbacher, Chief Executive Sustainable Shipping Initiative
– Result-based financing through carbon credits – Trevor Solomon, Intersleek Business Manager International Paint
– ‘Securing market confidence through third party verification’ – Alisdair Pettigrew, Managing Director Blue Communications and Timothy Wilson, Principal Specialist – Fuels, Lubes, Exhaust Emissions Lloyd’s Register
The Financing Efficiency session kicked off with Alisdair Fischbacher, Chief Executive, Sustainable Shipping Initiative (SSI), drawing upon the difficulties of financing retrofits, particularly as invariable payback periods make it more complex. He stated that the “owner, charterer and financer needs must to be taken into consideration”, particularly as financing is attached to the premium and not the ship itself. He then discussed SSI’s innovative financing model ‘Save As You Sail’ that enables the costs associated with retrofits to be shared among the ship owner, time charterer and finance provider to retrofit any technology. To read more about the model, please click here.
Trevor Solomon, Intersleek Business Manager, International Paint agreed that financing is vital in creating opportunities for efficiency and discussed the importance of incentives such as carbon credits. International Paint have worked with the Gold Standard to develop the first approved methodology to generate carbon credits for the marine industry. It involves converting ships from a traditional biocide-containing antifouling to Intersleek technology which reduces drag, fuel consumption and GHG emissions and is also biocide-free. Carbon savings are calculated based on emissions before and after Intersleek application, transformed in carbon credits which can then be claimed, allowing ship owners to be rewarded financially for their emissions reductions. For more information, please click here and here.
Alisdair Pettigrew, Managing Director, Blue Communications on behalf of SulNOx and Timothy Wilson, Principal Specialist – Fuels, Lubes, Exhaust Emissions at Lloyd’s Register, followed with a discussion on emulsified fuels to reduce emissions and innovative finance in the marine industry. They drew on the importance of correct investment and corporate social responsibility (CSR) in eliminating or minimising ship emissions, stating that “with the right investment, 50% of the current emissions could be dealt with correctly”. Although policy is driving transformation in industry operations, capital was described by Mr Pettigrew as both a barrier and an opportunity. Capital is simultaneously enabling the development of emissions reducing technologies, while also acting as a roadblock as the risks and opportunities are not fully understood.
Asset Intelligence
– Caterpillar Marine Asset Intelligence, Vessel Monitoring using Analytics – Case Studies – Mario Bacelar, Business Development Manager Caterpillar
– Integrated “remote condition monitoring systems” for improving fleet operations – Kostas Alachmanetis, Business Development Director Prisma Electronics
Mario Bacelar, Business Development Manager Caterpillar explained how ship monitoring using analytics can help increase overall performance, reduce maintenance and generally create more value. He argued that the goal is not to monitor everything onboard, but to focus on critical systems that can cause high damage or risk. The collected data can then be run through software analytics which help users make sense of the data and turn it into actionable information. Using case studies, Mr Bacelar explained how Caterpillar has helped its customers reduce fuel consumption, operating costs and avoid failures. In one case, for example, the customer was alerted of an upcoming fuel pump failure but decided not to act upon it, resulting in costs of approximately US$35,000. After this experience, the analysis is now built into the customer solution to avoid the re-occurrence of such a situation.
In the following presentation, Kostas Alachmanetis, Business Development Director Prisma Electronics argued that to date, there is no standard approach and methodology to perform a complete ship performance analysis due to the complexity of the topic. He then presented the LAROS system to the audience, a holistic approach for data collection through a system of wireless intelligence devices and knowledge management techniques for remote condition monitoring and performance analysis of ships. The system collects data from the ship’s instruments, which is then analysed and turned into actionable knowledge, for example related to condition-based maintenance, fuel reduction and ship efficiency. The system offers a three step value proposition, namely performance monitoring, performance management and operational optimisation, each taking the customer to a new level of cost savings and value created.
The Owners & Operators’ Roundtable
Moderator: Neville Smith, Director, Mariner Communications
Panellists:
– Mark Cameron, Chief Operating Officer, Ardmore Shipping Corporation
– Wolfram Guntermann, Director Environmental Fleet Management, Hapag-Lloyd
– Chris Stone, Chief Operating Officer, Bibby Ship Management
– Paul Morgan, Energy & Fuel Efficiency Programme Manager, P&O Ferries
Closing Day One of Ship Efficiency: The Event, a panel of ship owners and operators took to the roundtable to discuss some of the most pressing issues the industry faces today. One of the key points that arose is the increasing pressure upon crew in meeting regulatory requirements, particularly in learning how to operate emissions reducing technologies and the ongoing monitoring of emissions that is required in order to prove regulatory compliance. The crew must be able to “adopt, accept and embrace the technology” according to Chris Stone, Chief Operating Officer, Bibby Ship Management.
In relation to the increasing strain put on crew, the roundtable agreed that it is vital for the enforcement of international regimes and regulations by the IMO and not just regional regimes, according to Mr Wolfram Guntermann, Director Environmental Fleet and Management, Hapag-Lloyd. Mr Stone agreed, stating that “different compliance requirements make it interesting” when meeting the various regulatory issues.
The roundtable also agreed that the concept of the unmanned ship is bringing an air of uncertainty to crew in the industry. “Crew are the single most important aspect of manning a ship,” stated Mark Cameron, Chief Operating Officer, Ardmore Shipping Corporation. However, the efforts directed towards pioneering these unmanned ships is driving a future where the reality of a crew’s role is still relatively unknown.
The four ship owners also drew upon the importance of frameworks and processes in creating an industry that is driving sustainable shipping. Mr Guntermann stated that “processes and frameworks are essential to making sure enforcements are followed through.” Mr Stone agreed, stating that “more ship managers today have more concerns over the environment and more processes, not simply the ship”. Installing technologies and programmes are a key start, but developing frameworks and processes is vital to environmental protection and efficiency.
Watch out for next week’s highlights covering Day Two of Ship Efficiency: The Event!
