SCANDI-BULK: BULK DEVELOPMENTS IN THE SCANDINAVIAN REGION

from May 2022 Issue – Dry Cargo International

HIP TO BE SQUARE: FIBCS & BAGGING EQUIPMENT

Scandi-bulk

bulk developments in the Scandinavian region

Growing global trade with cleaner bulk carriers — MAN Energy Solutions shows the way with efficient and environmentally friendly engines

MAN Energy Solutions believes in a carbon-neutral economy. The company has been at the forefront of advanced engineering for more than 250 years, and provides a unique portfolio of technologies.

Headquartered in Germany, MAN Energy Solutions employs some 14,000 people at over 120 sites globally. Its aftersales brand, MAN PrimeServ, offers a vast network of service centres to its customers all over the world.

MAN Energy’s involvement in the marine industry involves: v Strategic expertise: emissions control; operations control; efficiency control; digitization; and future fuels. v

v Solutions: optimized propulsion systems; hybrid marine propulsion systems; LNG gas supply; and exhaust gas after-treatment. Applications: bulker; container; cruise; ferry; fishing; LNG; LPG; Navy & coast guard; offshore; tanker; workboat & tugs; and yacht. Services: spare parts; retrofit; service agreements; technical service; on-site recovery; propeller maintenance concept; engine zone; and service centres.

PRODUCTS FROM MAN ENERGY INCLUDE: v Two-stroke engines; v MAN B&W ME-LGIM; v v v v v v MAN B&W ME-GI & ME-GA; MAN B&W ME-LGIP; Four-stroke engines; MAN 175D; Propeller & aft ship; and Turbocharger.

THE BULK CARRIER MARKET MAN Energy solutions knows that modern bulk carriers must adapt to new requirements. Bulk carriers dominate international waters, making up over 40% of the total world fleet operating today. But operators face growing demands in terms of reliability, efficiency, and low maintenance costs.

Bulk carriers constitute the single

Source: IHS Markit & MAN ES. Source: IHS Markit

l The Dry Bulk Fleet Age Profile shows the large influx of vessels immediately after the financial crisis (Age 9-12 yrs.) Many of these vessels are believed to be technically challenged by the EEXI and CII legislation and should be either up for early retirement or engine retrofit if possible. l The current average scrap age is therefore expected to fall over the next decade as younger vessels are expected to be obsolete in a more climate friendly shipping market.

l The Dry Bulk fleet consists of approximately 12.400 vessels. l 92% of the Dry Bulk fleet above 2000 DWT/GT is two-stroke propelled. Panamaxes constitute 33% of the current Dry Bulk fleet and are in general the largest vessel sub-group of the entire two-stroke merchant fleet. l In general, 500–600 cm bore size is the typical Dry Bulk two-stroke engine.

largest part of the world's merchant fleet when counted in deadweight tonnage. As such, the propulsion of bulk carriers deserves special attention in an industry increasingly focused on reducing emissions of greenhouse gasses.

The demand for raw materials like iron ore, copper, grain, etc., has increased considerably since the turn of the millennium. From 2000 to 2018, the cargo carried on board bulk carriers per year has almost doubled from 17,380 to 34,193 billions of tonne-miles. This is a consequence of globalization and the great demand for raw materials in China and other developing economies in Southeast Asia, owing to the fast economic growth. This means that the Southeast Asian industry, among others, is absorbing large quantities of iron ore whereas the growing population consumes other bulk cargoes like grain and soya beans.

The bulk carrier market, therefore, has been very attractive, which caused a tremendous boost in the signing of newbuilding contracts until the economic crisis in 2008. As the full scale of the economic crises were realized, orders dropped significantly, first to stabilize during 2014-2015, and later to drop further due to overcapacity in the market.

The International Maritime Organization (IMO) introduced regulations on the Energy Efficiency Design Index (EEDI) in 2011, seeking to limit the emission of greenhouse gases from international shipping.

The EEDI guidelines are a mandatory instrument adopted by the IMO that ensures compliance with international requirements on CO2 emissions of new ships. The EEDI represents the amount of CO2 in grams emitted when transporting one deadweight tonnage of cargo for one nautical mile:

The requirements for efficiency are increasingly tightened through three phases: 10% reduction from the baseline has been required since phase 1 came into force in 2015, a 20% reduction is required from 2020 by phase 2, and finally a 30% reduction by phase 3 in 2025 for bulk carriers.

EEDI requirements demand that

Size DWT Small <10,000 Handysize 10,000–40,000 Handymax 40,000–60,000 Panamax 60,000–100,000 Capesize 100,000–200,000 VLBC >200,000

Source: IHS Markit & MAN ES. Source: IHS Markit & MAN ES.

Source: IHS Markit & MAN ES. Source: IHS Markit & MAN ES.

l In recent years, the contracting volume has been relatively moderate compared to 2007-2014. l Dual fuel vessels are now being contracted in the larger size classes: 45 of the 50 vessels contracted with DF propulsion is Capesize or

VLBC size.

innovative solutions be implemented for the propulsion of this vital workhorse of the global economy.

Today’s bulk carrier owners need costeffective propulsion systems with low initial costs to make their operations profitable. Since bulk carriers often sail in environmentally sensitive areas, their engines need to meet strict limits for NOx, SOx, and particulate emissions. With stricter IMO restrictions, finding highefficiency propulsion systems with low fuel consumption is key.

Operators need the best two-stroke engines that meet low rpm demands to achieve ideal ship designs with highly efficient large propellers.

POWER FOR THE BULKER: MAN B&W TWO-STROKE ENGINES Since the year 2000, more than 8,000 bulk carriers have been equipped with MAN B&W two-stroke engines

MAN’s two-stroke engines are an ideal solution for the propulsion of all kinds of merchant vessels, such as bulk carriers. All of the company’s two-stroke engines are manufactured by a family of licensees— mainly based in Asia. The main advantages of the electronically controlled ME engines include: optimized fuel, lube oil consumption as well as improved low load operation, built on decades of success enjoyed by their mechanically controlled predecessors.

Besides its trusted ME-C engines, MAN also offers its portfolio of proven dual-fuel engines for the propulsion of bulk carriers.

The ME-GI is a highly efficient, flexible propulsion solution. With its introduction, MAN began a new chapter in diesel history, from which bulker vessels stand to benefit. With the ME-GI, MAN is able to offer vessel owners the option of using fuel oil or gas — depending on market prices and availability.

The ME-LGI engine, on the other hand, offers liquid gas injection and is therefore well suited to all kinds of modern cargo ships: the main advantage is the possibility of using fuels with a low flash point and low sulphur content, like LPG and methanol.

Source: Clarksons Research Source: Clarksons Research

l Despite the recent decrease in freight rates, the level is still healthy and the recent Russian invasion of Ukraine is expected to cause increasing freight rate levels. l The high level of new vessel contracts in 2020-2021 at the major shipyards have increased the price levels in general concurrently with the size of the order books

Indexator from Vindeln in Sweden — the world’s biggest manufacturer of hydraulic rotators — is adding to its compact rotator range with the powerful XR350.

The XR range comprises compact, powerful rotators with superb bearings. They are designed for extreme applications where rotator function requirements and loads are especially high. Optimally designed for both fixed and floating installation. Slew bearings, high performance and long service life make the XR series the rotators to rely on when it really counts.

XR rotators come into their own

About the XR Series

Patented power transmission design. Indexator’s patented design.

Thanks to the XR-series’ patented power transmission design, external forces acting on the bearings cannot affect the motor and swivel inside the rotator. This extends rotator service life significantly in comparison with competing solutions.

Competing solutions. Indexator’s tried-andtested vane motor principal.

whenever and wherever you need to handle large loads. Indexator is now launching its midsize XR350 as a complement to the XR300 and XR400 model sizes.

The XR 350 is designed to handle both positive and negative axial loads up to and including 15 metric tonnes. The model is also built for a radial load tolerance of 11 metric tonnes and is thus ideal for applications with high side loads such as fixed installation sorting grapples on excavators, or floating for e.g. scrap or timber handling applications.

EAGERLY-AWAITED ROTATOR “There’s never room for unscheduled downtime when it comes to rotators. Because they simply have to go on working, hour after hour, high reliability is just as important as high-performance,” says Johnny Karlsson, Area Sales Manager at Indexator.

To make sure that it is up to the job, the XR 350 has been put through its paces in rigorous test environments and the type of real-world scenarios machines and tools encounter.

The result of all this testing is a rotator with long service life that delivers performance every day.

The XR 350 rotator size has been eagerly awaited by customers and market demand is high, especially among customers who already use other sizes from the XR programme.

“There is great demand from machine and tool manufacturers, who already incorporate other XR rotators in their designs. The XR350 is a great addition to our product range and thus great for our customers, too,” says Karlsson.

ANGLE SENSOR TECHNOLOGY ENABLES AUTOMATION Indexator also launched ‘smart rotators’ in 2021. In brief, this means rotators can be equipped with patented angle sensing technology. The technology enables the machine system to sense the position and angular velocity of the rotator.

“This is a technological leap that enables partial or full automation. We launched the technology on other rotator models, but it’s also available in the XR program,” says Karlsson.

VARIANTS ALLOW MORE FUNCTIONS AND AREAS OF APPLICATION A number of XR350 variants are available in conjunction with the launch.

“Initially, we’ll be offering a standard variant with top and bottom interfaces of Ø265mm and Ø340mm respectively. This model is also available with axial hose connections at the top, allowing protected hose routing through the link. There will also be a variant that will fit the IR22 mounting to the rotator. More interfaces are also possible,” explains Karlsson.

PATENTED POWER TRANSMISSION, LONGLIFE VANE MOTOR AND EASY MAINTENANCE Another feature that benefits service life is Indexator’s tried-and-tested vane motor, and this is the only compact rotator on the market to use this principle. While vane motors provide high torque, they are also very forgiving of torsional forces and large slewing masses. The modular design with slew bearings, motor and swivel in separate modules, makes service and maintenance easy.

In common with other models in the XR program, the XR 350 has a patented power transmission design.

“In a nutshell, the technology means the swivel and motor are not affected by external forces, which provides significant life expectancy benefits compared to competing solutions,” concludes Karlsson.

Today millions of tonnes of bulk cargoes are transported within Europe. The dry bulk comprises a variety of commodities ranging from sand and gravel for the construction industry, grain and fertilizer related to farming, while the energy mix in many countries also requires coal and biomass. In addition, the focus on circular economy will enhance the demand for bulk cargoes, while the ports may have a broader role to play in this transition.

It has been said that the largest resource in Europe, is what is hidden in the more than half a million landfills. The term extended landfill mining was coined and various projects has already taken place, but the possibility to reuse resources is the cornerstone of the circular economy that is one of the pathways to fighting climate change. Upcycling and recycling seem especially relevant for the construction industry, which annually generate more than 900 million tonnes of waste in Europe.

The value of change towards the circular economy can already be observed for plastic waste. The ban on the export of plastic waste from Europe to non-OECD countries, except for clean plastic waste for recycling, has already resulted in surge in pyrolysis, but also increased the price of raw materiel of plastic. This will result in increased activities in the ports and drive up demand for vessels capable of transporting these commodities.

In context to the construction sector, the entrance to circular economy may not only be sound business, but also benefit the environment. According to the International Energy Agency, the building and construction sector accounted for 36% of final energy use and 39% of energy and process-related carbon dioxide emissions in 2018. This industry could therefore benefit with more upcycling and recycling activities.

In Port Esbjerg in Denmark, they have decided to engage in this possibility with the introduction of the circular environment, where building materiel can be upcycled and recycled. The business area is a progression from the shiprecycling facilities, which already exist in the port. Here, the ship is recycled, while most of the equipment is upcycled. Exemplified — an engine is not scrapped, but restored and sold, and this is the business model of ship-breaking companies today. A similar approach is needed for the building industry, albeit that the volumes are significant and more may need to be recycled. Concrete needs to be crushed and recycled, while things like steel and bricks may be upcycled. The possibilities are significant but will inevitably require ports to be involved in the transport. In Port Esbjerg, they advocate port operations are pivotal in the circular environment and it is important to understand the transport requirements of this upcoming industry. There may be ports shipping the waste, while other ports receive and process this for shipment of products that are recirculated into the construction industry. In context to bulk operations, this must be in ports due to the cost of moving larger volumes. The processing of the materiel will therefore also have to be in ports, and this provide a new role for ports, as seen with the interest for placing recycling activities in the port.

Seaber is a Finnish maritime software company dedicated to reducing inefficiencies, errors, costs and the environmental impact of bulk and breakbulk shipping. Seaber’s cloud-based schedule planning, optimization and communication solution helps charterers & shipowners to reduce emissions by improving asset utilization. The company co-operates closely with charterer and shipowner companies to drive the digital transformation of the entire shipping industry.

The company: v is a Finnish maritime software company, based in Espoo; v has 18 employees v was founded in 2017; v specializes in optimizing oil & dry bulk shipping; v customers are publicly listed multibillion charterers & major shipowners; v is privately owned; and v is backed by global investors.

STORA ENSO AND SEABER TO DIGITALIZE MARITIME LOGISTICS In March this year, Seaber announced a partnership with Stora Enso. Seaber’s innovative technology will enable the digitalization of Stora Enso’s bulk and breakbulk shipment planning and communications, optimizing the company’s cargo flows globally.

Seaber’s AI-assisted management and planning solution is revolutionizing the bulk & breakbulk shipping industry. The webbased application is designed for both charterers and shipowners, allowing them to maximize efficiencies in schedule planning and communications.

They can collaborate in this dynamic industry in real time, with each stakeholder maintaining total control of the information being shared.

Seaber’s technology is the first solution targeted at increasing efficiencies in the bulk and breakbulk shipping industries on such a wide scale, making it uniquely positioned to reduce the sector’s environmental impact.

“After an extensive evaluation of available solutions on the market, we believe that Seaber provides the best tool for us to efficiently handle the planning of shipment schedules and communication with all stakeholders” says Niklas Fahlen, SVP Logistics, at Stora Enso.

He continues: “Together with Seaber’s offering for shipowners, we are able to jointly improve operational efficiency and reduce emissions by optimizing port calls and doing our part in avoiding unnecessary repositioning of vessels.”

Seaber is delighted by the partnership. “Stora Enso is a great partner, especially because, like us, they put a lot of effort into being an environmentally friendly company and are also an early adopter of new technologies. We are thrilled that Stora Enso selected us and are looking forward to a close cooperation with their team,” explains Sebastian Sjöberg, CEO and Co-founder of Seaber.

Stora Enso develops and produces solutions based on wood and biomass for a range of industries.

ABOUT STORA ENSO

Stora Enso develops and produces solutions based on wood and biomass for a range of industries and applications worldwide, leading in the bioeconomy and supporting its customers in meeting demand for renewable eco-friendly products. Building on their heritage and know-how in forestry and trees, Stora Enso is committed to the development of products and technologies based on renewable materials.

SEABER SECURES FURTHER FUNDING

OF €1.5M

In December last year, Seaber revealed that it had raised €1.5m from Counterview Capital, Lifeline Ventures and Tesi (Finnish Industry Investment) to further increase product development, as well as sales and marketing activities.

“We are excited about Seaber’s mission to digitally transform the $400 billion bulk shipping industry,” says Brian Rubenstein, Partner at Counterview Capital. “Many of the key operational processes of bulk and breakbulk charterers, shipowners, and brokers are highly inefficient. Most of the players in this massive industry are still planning their logistics with Excel spreadsheets. Seaber’s planning and communication platform is just the first step towards optimizing global fleet utilization, cargo flows, scheduling, and route configuration which can vastly improve efficiency and reduce costs across the entire industry. It’s that vision, combined with deep expertise and understanding of the maritime space, that separated Sebastian and his team from all of the other companies that we’ve looked

at in the market.”

Aligned with its green values, Seaber takes part in the ‘Call to Action for Shipping Decarbonization’. For the world to fully decarbonize by 2050, shipping must decarbonize. The call to action, also known as Getting to Zero, has industry actors calling on world leaders to work together to deliver the right enabling environment to achieve this goal.

“Lifeline Ventures invest in ambitious and determined teams that can one day become industry leaders. We at Lifeline see this potential in Seaber: their ability to improve the planning and communication of shipping companies and charterers — reducing the carbon footprint of maritime industry and significantly cutting down CO2 emissions,” says Lifeline’s Partner Kai Backman.”

Seaber’s founders have been working on Seaber since late 2017 and have been growing the team over the last four years. “Our vision is to be there at the front line supporting shipping towards a new phase where technology can be utilized to benefit everyone”, says Sjöberg. “During the past year, we have developed our product jointly with customers who already achieve significant savings by using Seaber. We are thrilled by the shipping industry’s excitement to work with us on our mission to decarbonize shipping”, continues Sebastian.

ABOUT COUNTERVIEW

Counterview Capital is a New York-based venture capital firm focused on investments in pre-seed and seed stage technology companies. It partners with creative and unconventional thinkers building innovative products that will nudge the world. Sebastian Sjöberg, founder and CEO of Seaber.

ABOUT LIFELINE

Lifeline Ventures is a sector agnostic earlystage investor that wants to partner with founders from the very beginning of their journey and support them throughout their growth. Its team has global experience in building and scaling companies both as founders and in various CxO roles. It invests in ambitious and determined teams that can one day become industry leaders.

ABOUT TESI

Tesi (officially Finnish Industry Investment Ltd) – is a state-owned investment company investing in venture capital and private equity funds and directly in growth companies. It makes investments on the same terms and return expectations together with private investors.

SEABER APPOINTS HENRIK DAHL TO CHAIRMAN OF THE BOARD On 6 April, Seaber welcomed a new Chairman of the Board, Henrik Dahl. Currently, Dahl serves as a board member and advisor for several companies in the marine and technology space including Saxdor Yachts, Awake.ai, and GIM Robotics. He is also the co-founder of Blue Alliance, a platform that helps innovative maritime companies reach global markets.

Seaber’s CEO and co-founder, Sebastian Sjöberg is thrilled about this news: “We are excited to welcome Henrik to our board during an important time in Seaber’s evolution. Henrik is a recognized leader in the maritime technology industry whose extensive commercial and corporate strategy experience will be instrumental in executing on our vision of digitally transforming the bulk shipping industry.”

Dahl is a highly successful tech entrepreneur with over 15 years of experience in marine tech. Previously he was a board member and interim CEO for StormGeo, a major weather analytics company that was recently sold to Alfa Laval. He also co-founded and led Eniram, a pioneer in maritime data and analytics which was sold to Wärtsilä in 2016. He has ample experience in all aspects of building startups to scale, including sales expansion, fundraising, and M&A activities.

Dahl is excited about joining the team: “Seaber is a maritime startup to look out for. Seaber’s ability to add value to charterers and shipowners with the schedule planning is crystal clear and serves as a natural first step in a broader optimization of the whole shipping & logistics cycle to make the industry more efficient and environmentally friendly. I look forward to contributing to Seaber’s future growth and success as the company develops its software tools further and expands to new markets. I am especially excited about working with such a talented and motivated team of professionals and entrepreneurs”.

SEABER ATTENDS BREAKBULK EUROPE IN ROTTERDAM In mid-May, Seaber travelled to Rotterdam in the Netherlands, to attend this year’s Breakbulk Europe trade show. After a couple of years’ break, Breakbulk Europe returned, and Seaber took the opportunity to exhibit its offering, where it gave attendees the opportunity to make their own optimized schedule with the Seaber tool, and see for themselves the full extent of its solution.

Breakbulk Europe brings the project cargo and breakbulk community together. The trade show was an opportunity for attendees to meet industry professionals from more than 120 countries, representing the end-to-end industrial supply chain.

Norwegian company Shipshave AS has launched and commercialized the disruptive hull cleaning solution In-Transit Cleaning of Hulls (ITCH). With ITCH the seafarers take charge of the hull performance and fuel economy without idle time or specialists. ITCH combines sustainability with fuel cost savings in a cost-competitive package. The ITCH is different in that it is the only known hull cleaning solution executed by the crew while in transit. It is so user-friendly that it can be installed and operated by a vessel’s crew. Not only is there no need for the vessel to be docked during cleaning, the system actually harvests the propulsion energy of the vessel being cleaned. ITCH offers: v hull cleaning without hassle; v no downtime for the vessel; and v no high costs specialists.

Shipshave sold two pilots for ITCH in October 2020 to two Norwegian ‘early adopters’. The two owners have a history of being first takers of new technologies. Since that time, Shipshave has further simplified and improved its solution. As of 19 April this year, thus far the company has delivered 20 solutions to progressive buyers globally in multiple shipping segments.

‘Proactive grooming’ is a buzzword in shipping today, as opposed to brutal retroactive cleaning methods. With Shipshave’s In-Transit Cleaning of Hulls, early-stage fouling sometimes refereed to as ‘slime’, is removed by soft brushes without damaging the paint. It is the vessel’s own crew that is in charge of the hull performance while the vessel is sailing. There is no need for either specialists or vessel idle time.

The operational speed and hull shape of both bulk carriers and oil tankers mean Vessel close to the end of the docking schedule.

ITCH about to be retrieved.

that they are optimal for ITCH. Recently, Shipshave verified functionality on a 15,000 TEU container vessel, meaning that ITCH can be also operated on faster vessels — maybe naval vessels will be next? During the same trials, Shipshave tested brushes capable of removing fouling beyond ‘slime’, and will share firm figures on fuel savings obtained once the owner of the vessel has ample operational comparison data.

Shipshave has covered a lot of ground since October 2020 and multiple customers are now making the transition from early adopter to repeat customer. The company aims for ‘fleet sales’ in 2022.

Shipshave is developing a supplementary tool to clean the hulls of static vessels too. Early market evaluations indicates that a robot will be ideal for bulk carriers that have prolonged periods at anchor, as well as smaller vessels where the whole hull can be cleaning within two hours.

The robot is already grooming very efficiently, but Shipshave is focusing on making the robot sufficiently autonomous for any seaman to operate on a large hull. As a second phase of development the same robot will also be able to proactively groom the propeller by interchangeable brushes.

Shipshave is generating keen interest globally. Owners preparing for an Enhanced SEEMP & CII whilst Charterers are looking to Scope #3 emissions. On 2 May this year, Shipshave has been invited to present at an IMO/Glofouling-sponsored antifouling webinar. By that time, it hopes to have engaged in dialogue with a major charterer of vessels.