N O I T A M NSFOR
A R T ds T E nd Tren a E s e i g FL e at ime Str o Marit
t A Guide
Table of Content Click the titles to view the Chapters
Unbloc(k)ing the Blocks 8 ways to maximise crew retention Three technology trends transforming shipping Your Time is Up THE EVENT - 2017
Unbloc(k)ing the Blocks Sofia Fürstenberg worked with DNV GL and at AP Moller Maersk in its maritime technology division before starting her own consultancy. She was instrumental in the development and success of the Disruptive Sustainability hall at Nor-Shipping and is one of this year’s speakers and panellists at Fathom’s Fleet Transformation Event in London.
Here she explains why she thinks industry should pay more attention to the potential of blockchain I work with a loud little startup aiming to facilitate an open lab for blockchain collaboration, targeting primarily the maritime and energy sector. It’s called BLOC and its key objective is to be a force for social impact, using blockchain opportunities as a sustainable enabler. Shipping, trade and the inherent value chain suffer from late and slow introduction of digitization into many of the processes. The Internet is still a quite novel thing on many ships, and paper-based systems remain a significant modus-operandi, not least because many regulations and rules require so. At the same time, building digital infrastructure on top of those currently in use is a massively complex exercise, combining a multitude of existing legacy systems, while ensuring attention and priority to daily operations. So it is no surprise that the technology of a distributed ledger system based on blockchain has huge potential for the shipping industry. Blockchain has the capability to identify errors and data duplication, self-validate, and mitigate attempts at fraud. It is a system that can’t be hacked and will inherently know if a value chain stakeholder has the ability to pay. Here are some examples where we see it making a serious impact: 1
FUEL THEFT CARBON REDUCTION One of the great concerns by ship-owners and carriers today, is the lack of proper control of their bunker costs. Bunker fraud and fuel delivery with aerated fuel, the so-called cappuccino effect, have the industry’s full attention. At the same time, the shipping industry emits as much carbon dioxide to the atmosphere as the largest economy in the EU, which is why EU has implemented the Monitoring, Reporting & Verification Protocol; a requirement for every vessel entering EU ports, to report each ship’s emissions in a standard, validated way. We want to put the MRV Protocol on a blockchain. With peer-to-peer protocols and a distributed database for data collection and storage infrastructure, we can accomplish an automated and real-time digital verification service, with risk managed by revealing reputational history. With coded compliance structure, and automated processes, the data reporting will happen faster, and be more accurate, and documentation of compliance will happen by itself, automatically. Cryptographic hashes and timestamps will give a portable and permanent reputation system. We will have a system that monitors CO2 and fuel and provides chain-of-custody tracking, yet ensuring security through a private and encrypted cloud storage. Eventually we could then through automated smart contracts automatically execute electronic submissions of verified reports. BLOC is embracing this opportunity because it can reduce risk throughout the fuel value chain, and be a smart enabler for true carbon reduction in the maritime space. And, as if by magic, it will at the same time solve the ship-owner’s fear of someone stealing their fuel.
KILLING
BILL
Another exploratory industry project BLOC is currently engaged with, is about making redundant the oldest contractual form in the history of maritime trade, the Bill of Lading. Digital versions of the B/L have existed for many years already, and are saving the users a lot of time and resources in administration and supply chain costs, but have nevertheless not really been successful. The key features between a paper-based and digital B/L are: the written document, the signature, the originality and negotiability. Digital signatures are possible, but there has not been hitherto any guarantee that the document has been handled confidentially, as a cryptographic tool. Blockchain can offer that assurance. Another issue with an electronic B/L is the potential for replication of an electronic document. Again, this could be solved with a blockchain solution. A digital B/L can be realised with a blockchain solution, using contractual code language to create so called Smart Contracts.
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The burning question is how to incentivize the industry to use a blockchain platform, given that any legal barriers have been solved. We are faced with those same challenges encountered by those embarking on the vision of the first electronic B/L; namely the different statutory legal environment around the world, port states still requiring a paper-based version, and a general resistance from many actors along the value chain – banks, forwarders and ship-owners, to embrace the opportunity for change. During the next 7 months, we are developing a first proof of concept with representatives across the transport chain, where we will validate a value-based model for industry adoption.
MOVING FORWARD I am convinced that by delivering a convincing proof of concept together with the industry, where the technical, as well as the commercial and legal feasibility issues are assessed jointly and in an open environment, and with credible solutions proposed, we can finally break this glass ceiling. I am also convinced that the only successful way to prove a new business model for the trade of goods at sea, is by inviting the industry to be part of it, allowing it to explore the features themselves, assessing altered value propositions and company impact. I have no belief in some attempts seen in the industry currently, where running with the cake alone seems to be the melody. Digitization of B/L over blockchain will require change on infrastructural level across the entire shipping sector and beyond. Such a change needs to be value-based, where the impact of the entire value chain has been assessed in order to arrive at a solution that has opportunity for success. That is why I find my brief tenure with BLOC so interesting. We are focusing on the value-chain, not the individual opportunity for competitive advantage. Because the latter, will be identified anyway.
Sofia Fürstenberg Innovation & Sustainability Advisor, Maritime Director, BLOC INFO: The project, “Proposal for a one-year feasibility study to determine the needs and opportunities for a Global Blockchain Hub for the Maritime Industry”, is sponsored by the Danish Maritime Fund, and will be delivered by BLOC and its collaborating partners, through May 2018. 3
8 ways to maximise crew retention The maritime industry is suffering from a shortfall of seafarers, and this is only expected to worsen. Whilst automation might be all the rage, good crews are critical. This is one of the themes explored at Fathom’s Fleet Transformation Event in London. We spoke to Stephen Jones, FRSA to find out why retaining crew is so important to a successful operation.
There are some essential basics that need to be implemented in order to enable crew to feel a sense of belonging and a sense of career progression, thereby increasing the attractiveness of the job and reducing the likelihood of early exit. But there are many ways shipowners, operators and managers can go about ensuring their staff are happy and fulfilled. Steven Jones, FRSA and an expert of retaining crew within the maritime industry highlights below some key factors he considers essential in order to maximise crew retention.
CAREER
PROGRESSION
According to Jones, seafarers need to feel that they have a developed and recognised career path. Progression is a must. It is not often obvious which level of a career path seafarers can take once they go ashore and the idea of working their entire lives at sea can make them leave the industry earlier than they might otherwise. 4
SAFETY
SECURITY
Seafarers need to feel safe and secure while at sea. As Jones tells fathom-news, “seafaring is not an attractive career choice if pirates are hijacking ships with seeming impunity, as had happened in the not so distant past. Crew need the perception of safety and of feeling secure.”
CONNECTIVITY
This might be an obvious one but Jones says there is no excuse not to provide good, fairly-priced online access for seafarers. Systems can deliver the user experience that seafarers crave, without impacting their wallets.
RESPECT
Not something that might necessarily be thought of immediately, but as Jones believes, professional respect is essential. He tells fathom-news that more and more people in shipping companies have not been to sea. While not necessarily a problem, it can arise as one if they do not extend adequate courtesy and respect to those working at sea. In addition, seafarers are sometimes misunderstood. Do we really need to knit woolly hats for them for example? “We are treating them like down and outs, and there is a danger of creating a victim culture of the ‘poor seafarer’, which isn’t a very attractive recruitment campaign,” says Jones.
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ABANDONMENT Jones believes that seafarers are still being abandoned by owners and have to fight their wages. This is evident even now as just last week the MV Rena was banned by AMSA from all Australian ports due to not paying its crew outstanding wages for several months. This sends a very bad message to those at sea or thinking about joining, says Jones.
REST Fatigue is a commonly voiced concern by seafarers and other industry professionals. We are always hearing about injuries and fatalities in which fatigue is quite often pointed at as the catalyst. Jones believes that crew numbers have cut to the bone and there is little wriggle room left. Seafarers have to work to the maximum across sustained periods and rest and recuperation periods are few and far between. Not only are fatigue and exhaustion the result but it can contribute to the onset of long-term mental welfare issues.
CAMARADEIRE
SHORE LEAVE Jones is of the opinion that seafaring needs more enjoyment and to be made more pleasant.
Diminished social life due to few people onboard can lead to trouble. “Some are quick to blame social media, TVs in cabins or games consoles. I think this is a convenient excuse, the real issue is there are simply less opportunities to socialise.
This includes not only allowing them time to get onshore and explore their surrounding environment, but also to ensure it is accessible to them. Making it affordable by not charging them to get ashore is one way of doing this.
There is little or no down time, which means seafarers are often just trying to get through the time at sea and get home. Not a recipe for positive retention.” 6
Three technology trends transforming shipping Ship owners and operators are facing the biggest challenge for decades having to successfully transform operations within a new economic reality of the maritime industry. We will be exploring some of the solutions at Fathom’s Fleet Transformation Event in London.However what are some of the key trends?
New technologies are continually being developed to improve industrial and business operations. In shipping the aim is that they also make the industry safer and reduce its environmental impact. Increasingly, tasks are being carried out remotely, with robotics doing jobs humans once used. There is not one particular technology that has or will transform the way the shipping industry operates, but there are an increasing number of technologies and solutions that look set to make significant changes to commercial shipping in the near future. Here are three technologies that we see as transforming the future of shipping.
SENSORS Sensor technologies are well developed but they are becoming increasingly intelligent. They are found in many forms of autonomous operations and more recent focus has been on looking at how different sensors can be combined to optimise their output. Developers are maximising their ability to read more and more complex information generated by ships. Sensors can process huge quantities of information and digest it into a readable format to give humans an insight into why a ship is behaving in a particular way.
Kongsberg’s Seapath 300 series of heading, attitude and positioning sensors
By doing this it gives the human better situational awareness and provides it with the power to carry out better decision making. 7
Sensors have and will continue to transform shipping by providing a communication platform between different equipment, but also between the ship and the human. Today, sensors are becoming more closely integrated, giving them another level of intelligence that means they can see far deeper into a ship’s behaviour than a human could ever do. Sensors are an enabler and will be used as a platform to continue to develop the communication abilities between a crew and its ship. By connecting artificial intelligence and machine-learning to sensors, they will ultimately be able to provide more insight into how and why a ship will operate most efficiently than ever known before.
ROBOTS Robots are used on different levels to control, inspect, communicate and even carry out maintenance work or assist with firefighting onboard ships. They can operate both via remote control and autonomously and their capabilities are advancing both inside and outside the maritime industry. Robots have and will be used to improve safety of shipping, carrying out tasks that are dangerous to humans and increasing production as they work faster and longer without breaks. They will not be used to replace humans, but to aid them. One such robot is the Shipboard Autonomous Fire Fighting Robot (SAFFiR), developed by Naval Research Laboratory with Virginia Tech and other US universities. It is capable of finding fires onboard, use fire suppressors such as nozzles and autonomously navigate the ship with a sensor suite. Robots may even be used to help pirate and hostage situations. Recon Robotics’ Throwbot XT is a throwable device at just 540g. It can be directed by the operator to move through a structure and transmit video to the operator. Recon Robotics claims it can be used to locate armed subjects, confirm the presence of hostages or innocent civilians, listen in on conversations, and reveal the layout of rooms. Shipboard Autonomous Firefighting Robot
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In a Global Marine Technology Trends 2030 report by the University of Southampton, Lloyd’s Register, and QinetiQ, experts see advances in motion control, cognition, sensing, miniaturisation, and robot-to-robot communication, that will advance robotic capabilities and stimulate market prevalence worldwide.
ADVANCED MATERIALS Transportation of 90% of world trade by ships means that the maritime industry faces some challenges when it comes to reducing the environmental impact of its operations. To combat these concerns, a number of advanced materials are being deployed and developed to ensure the transformation of shipping includes making its impact on the environment less and less. According to the Global Marine Technology Trends 2030 report, materials will continue to accelerate to develop structures that are made from refined and reliable properties. Environmental sensing, self-cleaning, self-healing, enhanced electrical conductance and shape modification, are expected through the development of nano-materials to deliver better performance and environmental benefits. The Ocean Cleanup Technology, developed by 23-year old Boyan Slat, consists of advanced materials to combat the ocean garbage problem. A hard-walled pipe made from durable and recyclable high density polyethylene with a fibre reinforced thermoplastic polyurethane screen (made to last decades in the ocean) catches concentrated plastic. This ocean plastic will then be recycled. Another example is the Oleo oil soaking sponge,developed by the Argonne National Laboratory,Illinois. In trials it has shown to absorb 90% of its own weight in spilled oil before being squeezed out and reused. It is made from a foam consisting of polyurethane or polyimide plastics and coated with oil-loving silane molecules that like to capture oil. Both the Oleo sponge and the Ocean Cleanup Technology show how the use of different materials combined with innovative thinking is leading to technologies that have the potential to transform shipping’s impact upon the natural ocean environment.
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Your Time is Up The net has closed and ship owners and operators are now having to get underway with the MRV regulations. Whilst it will soon become business as usual, it is certainly a transformation that needs to be addressed right now and one of the topics at Fathom’s Fleet Transformation Event in London. Here we look at accredited bodies for this.
There’s no shortage of companies now approved to check that monitoring plans are fit for purpose, and there’s also no shortage of systems being approved for use by Vessel operators needing to collect the data. The deadline has arrived for the European Union’s rules for ship monitoring reporting and verification of CO2 emissions, that for having vessel specific monitoring plans in place and having them verified. If you are an owner or operator of a vessel that will eventually come to a European port once the regions MRV system is in full swing, this deadline on August 31 is not a worry, as you will have until two months after your first European port call under the system to submit your plan. Annual emission data, related to voyages to, from and between European ports, has to be submitted annually. This data has also to be verified by an accredited verification body. The data must be submitted into the European Maritime Safety Agency’s newly created THETIS MRV reporting portal, and will be then made public. So the fuel data for each and every ship’s European voyages will be easy to find. Environmental groups are happy with this, ship owner snot so. Dealing with non-compliance to European rules is usually left up to individual member state, so penalties for not submitting a monitoring plan on time, or for not having verified data submitted annually will vary. A verification body is one that has been accredited by one of the European national accreditation bodies. These accreditation organisations are national organisations such as UKAS in the UK and DAkkS in Germany. They are members of the European Co-Operation of Accreditation.
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Most of the accredited verifiers are the classification societies, although there are some others such as Verifavia in France and Cyprus’s Dromon Bureau of Shipping. Some of these are certified to accredit for the compliance of the monitoring plans, the actual data submitted annually and any equipment or system that is used in the collation of the data. International shipowners, not normally associated with Europe, but with vessels over 5,000 gt that will enter European ports need to comply with the rules. A little ticker on the Verifavia home page shows how many vessels it has contracts to verify the monitoring plans or annual data for. As of reporting this it stood at 1350.Verifiavia has been one of the most fervent promoters of its services as a verifier, having originally started as a verification body approved to attest land based and aviation CO2 reporting under the European emission trading scheme (a scheme which some believe should include shipping). Class society DNV GL has been selling its ability to act as a verifier of shipborne data under the European rules, but also under the similar data collection requirements that come in force a year later under the IMO rules.
Body accredited for verification of vessel monitoring plans, voyage reports or annual reports ABS Bureau Veritas Class NK Lloyd’s Register DNV GL Korean Register Indian Register CTI (Shenzhen) Corporation Dromon Bureau of Shipping Emicert Verifavia TuV GUT-cert MBBM.com ETSverification.com SwissClimate ECO care Verico SE KPMG Envservice Lucideon CICS SGS Limited
NAB issuing accreditation ESYD UKAS UKAS UKAS DAkkS DAkkS Raad voor Accreditatie (RvA) UKAS UKAS ESYD UKAS& COFRAC DAkkS DAkkS DAkkS DAkkS DAkkS DAkkS DAkkS DAkkS UKAS UKAS 11
FLEET TRANSFORMATION THE EVENT - 2017
25-26 OCTOBER 2017 THE MILLENNIUM GLOUCESTER, LONDON KNOW MORE & REGISTER