While we all welcome ‘climate change’ the maritime industry is to blame for it becoming the focus of world regulators rather than other much heavy polluters. Shipping is a peripheral business entity so it was an easy target as it does not have strong political clout and the regulators had a more or less free go at it although their understanding of how ocean going shipping functions is very shallow.
With this comment the Greener Shipping Summit 2022 was launched by keynote speaker, John Platsidakis. The honorary chairman of Intercargo told the 500 strong audience from 230 companies and 16 countries gathered at the Eugenides Foundation, November 15, that a communication mistake was made by the shipping community from the off.
We do care about the environment, said Platsidakis, saying “do not forget generations of ship owners grew up and spent most part of their lives on board ships with only the sea and the sky in their sight for endless time, we were willing to support the initiative of reducing air pollution by ocean going ships. So, a strong and clear statement was made: “We will comply”. I believe that statement was catastrophic!”
Platsidakis said: “That statement was explained by third parties as an admission of guilt! So, a well-intended statement, made with the best of desire to assist, was misunderstood!”
He explained. Had we said “yes, we will do our best to comply as far as we can and subject to the participation of all other active players like the shipyards, engine manufacturers, charterers, bunker producers etc., we would have sent a very clear message and given the opportunity to unaware regulators and the public to understand how ocean going shipping functions and invite the other participants to come along.”
Another opportunity was missed some 10 years ago he said when we should have placed on the debate the imposition of the straightforward levy on shipping bunkers as the classic economic theory says that price dictates demand and vice versa. In other words, more expensive bunkers would oblige the users of the ships (mostly the charterers) to use the ships in a more efficient way without though stopping shipping to perform.
Nevertheless, although it is late, Platsadakis strongly believes the industry must “tell the public shipping companies do not produce technology”.
“Shipping companies use what is available in the market and they do so because they do not have another option as they operate in a highly competitive environment.
“The focus should be on the ones who have to deliver solutions. Otherwise, the effort is deemed to fail. Governments impose on the car manufacturers emission limits in order to be allowed to sell their cars and not on the individuals who buy a car. Why, in shipping, is it the other way round?” he concluded.
Organised for the 13th time by Newsfront / Naftiliaki in conjunction with, and under the auspices of, Greek shipping’s powerful Marine Technical Managers Association, Martecma, it became clear during the 2022 Greener Shipping Summit that battling climate change is a massive challenge as some 33 speakers, panelists and delegates discussed navigating the winds of change.
Indeed, during the final session, while addressing the issue of future investments – newbuilding and existing ships – it was declared that “2030 targets will not be met and a multi-tier market is developing”.
Stavros Hatzigrigoris, a former longtime president of Martecma, followed up his comment about the multi-tier market by warning the challenges posed by regulators and fuel levies etc will see the end of some Greek ship owning companies as the principals invest in other sectors.
John Cotzias, president of the Hellenic Shipbrokers Association and moderator of the final session said the industry “needs people who think outside the box”.
Chemical tanker operator, Stratos Tsalamanios, co-ceo of Seaven Tanker & Dry Management, said the regulations make it necessary to renew fleets but with the regulations as they are a company is unsure whether to go for a newbuilding or a secondhand ship, with the secondhand ship in favour because of the lack of supply of vessels while oil majors are now willing to look at vessels over 15 years old.
Further, Tsalamanios noted financial institutions and banks are keen to invest in green vessels and give a very big leverage and this has to go into the charter parties. He said some charterers are willing to pay but the whole system is very complex and in order to meet the 2030 deadline there may have to be a phase-out systems as was the case with single hull tankers.
George Papagiannopoulos, principal of shipping company Common Progress Compania Naviera said new ships have to be built but “we have to be clear about the available fuels and their cost”. “New technologies do not work on paper,” he said.
It was clear that investing in ships today is a challenge. George Souravlas, ceo of Load Line Marine, an operator of handy size bulk carriers told the summit of the challenges faced when investing in new vessels as there is still no clear answer regarding future fuels and a ship’s power.
Hatzigrigoris said it is up to IMO, the shipbuilders and the engine builders to come up with one solution regarding fuels. “Today we are talking about seven or eight solutions. I have asked MAN if they can build a multi-fuel engine and the reply was ‘no’.” He said if you start with ammonia you have to live with it though you may convert your vessels at a later stage, “but then you double your investment in new technology”.
During the daylong summit a great deal was said and presented about new technology.
Nuclear powered ships is “no longer in the hard to do box” Matthew Palmer, of Lloyd’s Register, said. He said existing or previous classification rules for nuclear power have been developed.
Conventional biofuels are compatible with modern marine engines and can be used safely onboard ships, Bureau Veritas VeriFuel’s Bill Stamatopoulos told delegates. However questions remain about the full supply chain sustainability of biofuels and the wide-scale availability of advanced biofuels (second- and third generation) for the shipping industry. Stamatopoulos said, “biofuels are one of the stepping stones to decarbonisation”.
Discussing environmental regulations, Nikolaos Daremas of RINA Hellas noted that from next year, commercial ships must report their actual annual CII [carbon intensity indicator], which will have to be verified against the required annual CII; the latter will become progressively stricter with time – a significant challenge for the entire maritime sector.
By the end of the day, most present at the Summit were in agreement with ABS’ senior engineer, regulatory affairs, Stela Spiraj one of the summit’s early speakers, who said: “While the shipping industry has already made considerable progress toward tackling climate change, breaking the deadlock to meet the IMO 2050 ambition requires informed decisions, driving action, building on existing industry initiatives, and acknowledging the positive impact of sustainable shipping.”
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