Experiencing stronger shipping markets

Members of the Institute of Chartered Shipbrokers in branches around the world are seeing benefits from stronger shipping markets. Although market improvements over the past twelve months were uneven, and some parts of the global shipping industry were not boosted, the general progress of the industry was a positive influence.

Looking at the main freight market sectors, the bulk carrier market retreated from high levels towards the end of last year and in early 2022, while the tanker market has remained subdued. In the container ship sector, box and charter rates have continued to perform strongly. The gas carrier market sometimes has seen more buoyant conditions.

Increased global seaborne trade last year was a substantial contributor to the market improvements unfolding. This upturn followed weakness in the previous twelve months, when the three largest sectors — dry bulk, oil and container — saw reduced trade volumes amid the severe economic recession caused by the coronavirus pandemic. Gas trade grew by only a minimal volume.

During 2021 world seaborne trade recovered. Dry bulk trade volume was 4% higher than seen in the previous year, oil trade (crude and products) was just under 1% higher, container trade increased by 6%, while gas trade (LNG and LPG) grew by well over 5%. The overall world seaborne volume, according to Clarksons Research provisional calculations, expanded by 3.6% in 2021, reaching 12 billion tonnes, fully reversing the previous year’s downturn.

What will happen in 2022? Despite some headwinds the world economy is widely expected to continue recovering, albeit probably not as quickly as seen in the initial recovery phase last year. This trend could provide a positive background for further advances of varying strength in all the seaborne trade categories. But rises may be less rapid than seen last year, except perhaps for oil where an acceleration seems more likely.

The Institute of Chartered Shipbrokers is a global organization for all maritime professionals. The qualification, attained by examination, demonstrates extensive maritime knowledge at a high standard. Membership of the Institute also indicates competence and integrity. The London & South East Branch is the oldest and largest of the Institute's 26 branches worldwide and provides frequent activities for members and students, including seminars, exam revision sessions and networking/ social evenings.

It is high time to update MEPC’s bilge water separator regulation

The purification equipment for separating oil and other pollutants from engine room bilge water has been updated several times over the years. From the 1970s with Regulation 393X through to MEPC 60 (33) in the 1990s and on, until the regulation we have today; MEPC 107 (49) which came into force in 2005.

The regulations that have been in force to date have tested the equipment's ability to separate HFO and diesel fuel from water. In the regulation that now applies, a chemical has also been added to the water in a final step for 150 minutes as an emulsion maker along with equal parts (2.5%) of HFO and diesel oil. Even when the present MEPC 107 (49) regulation was passed, it did not reflect reality since it did not test for lubricating oils or hydraulic oils in the engine room. Furthermore, it was decided to test with a chemical and to allow for testing to be done land-based without the requirement for tests to be done on board. The reality today regarding chemicals and fuels differs dramatically from 15 years ago. Today we have fuels such as LNG or methanol. From 2020 onwards, to meet new requirements of maximum 0.5% sulphur content, we must also consider this new type of fuel that is often a mixture. Such blended fuels had not existed before and it is not known ‘if and how’ existing separators will be able to properly separate them. Additionally, the use of chemicals is completely different today; apart from chemicals used for different treatments and cleaning, there may also be residues from ballast water treatment systems or from scrubbers.

It is impossible to expect a bilge water separator approved according to MEPC 107 (49) in 2005 or older, to work with the same efficiency today. The question that needs to be asked is; How could a new test be designed to ensure that certified separators on the market can in fact meet the requirements set by IMO for cleaning bilge water to a maximum of 15 ppm oil content before it is released overboard?

The end goal after all is to achieve a clean environment, and that each industry ensures in practice, as well as in theory, that they avoid further polluting our already polluted world.