WAY POINT ISSUE 3 // APRIL 2021
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Spotlight on digital - Adrian Box Digital data should lead the way in the decarbonisation of shipping
04 Industry Focus Maritime Security
06 Spotlight Interview Bjoern Sprotte
08 Customer Profile Costamare
Your vessel, our responsibility
FOREWORD
Safety Moment The coming years are going to change our industry forever. Some owners and vessels will not be able to adapt and some customers may pull out of the industry altogether due to the capital investment required. Most importantly of all, the safety of vessels may be negatively impacted if these technical and operational decisions are made incorrectly. • 33 out of a total of 66 vessels lost due to foundering in 2018 • 31 out of a total of 41 vessels lost due to foundering in 2019 • ITWF report 2,000 seafarers lose their lives each year Conflict between safety and the environment? The IMO has set ambitious goals for future pollution reduction targets that could directly affect the safety of vessels if not dealt with responsibly. These include: • Reduction in Carbon Intensity of 40% in 2030 • Reduction in carbon Intensity of 70% by 2050 • Reduction in Green House Gasses of 50% by 2050 For the industry to meet these Carbon Intensity Goals it must adopt best practices in order to ensure safety standards are met and the industry is not negatively impacted. Best practice examples include: • Weather routing • Autopilot set up • Cleanliness of the hull & propeller – regular polishing • Auxiliary generator utilisation • Timed arrivals • Minimising ballast legs In the toughest conditions, a mariner needs 100% confidence in the power and propulsion of their vessel to see them through safely. The challenge is for us to give them that assurance.
2021 has started off at what can only be described as a frenetic pace with the easing of COVID-19 restrictions across the globe. We have had and continue to
experience challenges in ensuring our crews are treated as key workers by various governments with growing concerns around availability and supply of vaccines for those at sea. We have been working with decision makers both in the industry and in government to change the situation and get seafarers classified as key workers, so they can travel freely around the globe.
Our industry has also had a renewed focus on the safety of our vessels and crew with new cross-country initiatives being launched to address ongoing piracy issues. The green agenda is also never far from the mouths of industry professionals and we have been working hard to provide solutions based on the extensive data available to us. I recently joined V.Group as CEO Ship Management and I have been working closely with many of you to ensure we continue to deliver the excellent service you are used to while also bringing about some key evolutions and improvements to all of our products and services. Our priorities for the year have not changed and we will continue to focus on safety and flawless service delivery to ensure that we bring tangible value to our customers. Bjoern Sprotte
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INDUSTRY FOCUS MARITIME SECURITY Recently we held a webinar on maritime security and what it means for our industry and here we wanted to talk more about the subject. It is imperative that all of these areas are used in unison. It is now also extremely important to engage with intelligence and security providers to further mitigate the threat. Generic area assessments and vessel ‘hardening’ (e.g. use of razor wire, locking down accommodation, water jets over the ship rails) are insufficient.
THE THREAT IS REAL: Maritime security is not just box ticking In 2020, almost all of the key regions facing maritime security issues saw an increase in piracy and security issues leading to those regions now having either a substantial or severe risk of piracy. EAST AFRICA & INDIAN OCEAN: SUBSTANTIAL East Africa & Indian Ocean - 17 incidents recorded between 1 January to 31 December 2020, the same
Maritime security is a term which covers issues that are related to national security, marine environment, economic development, and human security. This includes the world’s oceans but also regional seas, territorial waters, rivers and ports. In the maritime industry there are a series of measures to enhance security at sea called the International Convention for Safety of Life at Sea (SOLAS) Chapter XI-2 and the International Ship and Port Facility (ISPS) Code. The SOLAS Chapter XI-2 applies to passenger ships, including high-speed passenger craft, cargo ships, of 500 gross tonnage and upwards and mobile offshore drilling units. The key areas covered when talking about maritime security include:
number as recorded in 2019 SOUTH & SOUTHEAST ASIA:
SUBSTANTIAL
South & Southeast Asia - 88 incidents recorded between 1 January to 31 December 2020, a 4% increase over 2019 WEST AFRICA: SEVERE West Africa - 138 incidents recorded by Crisis24 between 1 January to 31 December – 10% increase over incidents in 2019
Security Risk Assessments Security Alert Status Security Alert System Restricted Areas on board Restricted access to vessel Stowaway Prevention Training BMP
THREAT LEVEL
DESCRIPTION
Critical Severe
An attack is highly likely in the near future
An attack is highly likely
Substancial
An attack is likely
Moderate
An attack is possible but not likely
Low
An attack is highly unlikely
Over the last 18 months a number of incidents have occurred where vessels and crew have been taken, leading to significant negotiations and losses for ship owners.
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It’s not all about piracy Outside of the risk of piracy, another major security concern is that of stowaways. The management of stowaways gets more and more difficult as soon as the vessel is at sea, which may place the owner in a difficult situation. Therefore, it is essential that the vessels make robust preparations when they are approaching and situated in high-risk areas including West Africa and, due to recent political events, in North Africa, Libya, Morocco and Tunisia. It is essential to have a system in place such as ShipSure, V.Group’s digital ship management platform, that can alert vessels when they are approaching high risk areas and remind them of the security measures needed before they even arrive in port. Recent events of stowaways breaching a vessel’s security measures and threatening crew highlights the need to ensure that prior to leaving any port, a comprehensive and coordinated search must be undertaken of the entire ship as stowaways can hide in some very unusual spaces. However, if the vessel sails from a port with stowaways on board, the security measures have failed. How to prevent access to vessels: : Vigilance is top priority : Frequent rounds (employment of shore security to increase monitoring of vessel) Frequent checks for signs of unauthorised access (e.g. broken seals on doors) : Access restrictions to shore personnel : Effective stowaway checks prior to sailing
TOP 10 STOWAWAYAREAS BYCOUNTRY 76 MOROCCO 36 NIGERIA
35 GUINEA 29 TURKEY
22 GHANA 28 TOGO 33 ALGERIA 21 DJIBOUTI
23 TUNISIA 22 DOMINICAN REP
Maintenance program for barriers such as grids across opening to the rudder compartment
It is widely thought that the root causes of piracy in these regions is allowing pirate networks to grow and operate with freedom of movement and it is highly likely to change in the next five to ten years. It is also widely accepted that the pirates will continue to adapt to changes in their operational environment and continue with attacks on merchant vessels in the Gulf of Guinea and beyond as long as this lucrative industry represents more gain than risk to them. As we have seen recently in the Gulf of Guinea, if piracy and indeed the wider issue of maritime security continues to evolve, it is our role as an industry to work together to combat it.
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SPOTLIGHT INTERVIEW BJOERN SPROTTE
Almost three months into his new role as CEO of Ship Management, we felt now was the perfect time to catch up with Bjoern Sprotte and discover more about his plans, the future of the industry and the challenges being faced. Q. So, Bjoern, you’ve taken on this new role in what can only be described as a challenging time for the industry and the business. How have things been since you started? A. Since starting I have found an incredibly strong group of highly committed and experienced people. I have been genuinely impressed by the level of competence and technical knowledge in all our offices across the world. As a business we also have excellent partnerships with many loyal customers that present some very interesting opportunities to collaborate further. I have also been inspired by ShipSure which is a unique and very well embedded platform. Going forward, we can use it even more effectively to support our crews on board, and our customers around the globe. Q. You are new to V.Group and now you have started, what is the reality of the position? A. As an outsider you always have your own perceptions of a business the size of V.Group but it’s always good when the reality exceeds your previous perceptions. As I have already said, I have been genuinely impressed by our people and their capabilities as well as the relationships we have with our customers. What is also clear is that here at V.Group we have a very strong brand. We also have the scale and expertise to deliver a flawless service and build on our already existing strengths as an industry leader. Q. So, what are your first priorities? A. As with everything we do at V.Group my number one priority is safety, which drives flawless service delivery. It is imperative that we operate safely across our entire fleet at any time and in anything we do and thereby deliver the best possible service to our customers through every single one of our fleet cells. We will continue to ensure that this approach is integrated throughout the entire business.
Another key priority for the business is the people. In these challenging times we must continue to work on and develop our talent program so that we a great place for the best people in the industry. We have one of the biggest managed tanker fleets in the world with more than 300 tankers so it is highly important that we continue to have the most competent and knowledgeable pools of crew in the industry. Q. The industry is facing some pretty big challenges at the moment and in the future. What do you see as the key issues and what do you think needs to be done? A. The most visible key issue facing our industry is still and will continue to be the COVID-19 pandemic. We need to continue to manage the wellbeing of our people both on board and in the offices, we cannot forget about that. Also, high on the agenda – and even more important for the long term – is environmental and social governance beyond compliance. With the ever-increasing need as an industry to be compliant with regulations we must use our expertise to support customers on their journey of commitment to operate in a more environmentally friendly way. Q. How will these challenges affect the business and your customers? A. These challenges will mean that we continue our transition from a transactional business to a partnership model where we connect people, competence and technology in order to provide our customers with true benefits from the scale of our business. Our business model must fully integrate with a customer’s business model and strategic views to help develop fleets, attract and train the best people and ultimately help our customers grow and be profitable. Q. And, finally, if there was one last thing you’d like to say to existing and prospective customers of V.Group, what would it be? A. We are here to work with our customers as partners and to help them steer a steady course even through troubled waters. I believe that with our competence we can help shape the industry as we come out of the pandemic. We will be continuing to be proactive in leading the industry and showing that, as a whole, we can emerge stronger the other side.
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CUSTOMER PROFILE COSTAMARE
We spoke to Capt. Vasileios Velmachos from Costamare, one of the world’s leading owners and providers of containerships for charter, about their vision for 2021 and how V.Group has supported them in the most challenging of times. Q. What are your company’s key objectives for the year ahead? A. At present we are seeing some favourable market conditions so one of our key objectives is to maintain our high quality of service for our charterers despite the ongoing situation with the COVID-19 pandemic. We are looking to minimize off-hire periods resulting from either mechanical problems or due to crew changes affected by the port regulations. It is also essential that we maintain our high standards when it comes to handling and delivery of the cargo ensuring it arrives in good condition on time to the destination. We will also be making every effort to conform to new regulations and requirements either imposed by the shipping industry or from any other charterers request. Q. What would you say is currently the biggest issue facing your business at the moment? A. Currently, the biggest issue on the day-to-day operation that disrupts our business is the COVID-19 pandemic. The early months of 2020 turned out to be a real challenge for the crew changing and manning of our newly delivered vessels. Consequently, due to the pre- requirements globally, costs increased relating to crew expenses and OPEX was affected in general.
Q. The last year has been an extraordinary time for not only the world but particularly shipping. What would you say have been the biggest benefits of working with V.Group? A. Good partners are invaluable during harsh times and that proved to be our experience with V.Group. Apart from vessel management services, the very least an owner can expect is to be offered immediate solutions and alternatives that aid the continued efficiency of the business. We have very much seen V.Group as our partner during these extraordinary times and they have proven to be proactive, diligent, well informed and always a step ahead foreseeing new developments. Q. You entered into an expanded strategic partnership with V.Group in 2020 following that of 2013, to further strengthen existing business in Greece but also to expand Costamare interests into the ever-growing Chinese market. How has having a trusted partner like V.Group helped? A. This expansion of the strategic partnership was based on the high quality of service we were already being offered that would be expanded to an ever-growing Chinese market. The contribution of V.Group reflects the commitment that they have to Costamare and it will be continued as we expand in the Far East region. At Costamare we value V.Group’s effectiveness, pro-activity, cost benefit analysis and minimised operating expenses. Our main goals are to keep our charterers satisfied, run environmentally friendly vessels, create a safe operating environment and deliver the cargo in good condition and on time, and V.Group is integral in all of this.
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Q. And finally, what one piece of advice would you give shipowners looking at working with a third-party manager like V.Group? A. V.Group continue to be the leading expert in ship management, a well-structured organisation, engaging professionals as a shore team in the office ready to give advice and immediate solutions on daily operations. Vessel crews are well trained and carefully Selected from a vast pool of experienced seafarers. The high standard of service does not tolerate underperformance but, on the other hand, rewards the hard workers by offering career development. For all the above facts, a prospective shipowner looking for potential cooperation with a third party manager, like V.Group, will have to take the above into serious consideration.
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SPOTLIGHT ON DIGITAL ADRIAN BOX, ENVIRONMENTAL DASHBOARDS / TECHNOLOGY
Digital data should lead the way in the decarbonisation of shipping Back in October 2020, the IMO proposed new draft mandatory measures to cut the carbon intensity of existing ships. This marked a major step forward, building on current mandatory energy efficiency requirements to further reduce greenhouse gas emissions and the carbon impact of shipping.
More than just emissions Emissions have and always will be the focus of decarbonisation targets, so ensuring that these are tracked is of utmost priority. Using a system like ShipSure, which constantly monitors all aspects of a vessel from scrubber efficiency to fuel mix to single plastic usage, can really make a difference. Taking single-use plastics as an example, we can see just how effective monitoring this data can be in developing solutions to meet targets and becoming a more environmentally friendly industry. For more than a year, Oceanic Catering has been offering water solutions such as simple filtration drinking water, reverse osmosis solutions, water filling stations and disinfection solutions to bring down plastic usage especially from disposable water bottles. The graphic shows the environmental impact of such a solution
ELIMINATING SINGLE-USE- PLASTICS, MINIMIZING PLASTIC GARBAGE WASTE
REDUCING THE NEED FOR TRANSPORTATION
So we asked Adrian Box, Technical Director at V.Ships for his thoughts on what these new measures mean and how digital data can impact the way shipping deals with them. The proposed amendments require ships to combine a technical and operational approach to reduce their carbon intensity. This is in line with the ambition of the initial IMO GHG Strategy, which aims to reduce carbon intensity of international shipping by 40% by 2030. We believe that the data that we as an industry collect on a daily basis and the better use of that data is absolutely key to ensuring that we not only hit but surpass those targets and create a better future for shipping. For years, shipping has had data on every aspect of the running of a ship but has never done anything with it. But now, with new, intelligent systems such as our own ShipSure, we can use this information to make changes and monitor every aspect of a vessels running to meet the IMO targets.
REDUCING THE USE OF BARGES TO LIFT PALLETS
REDUCTION OF GREENHOUSE GAS EMISSIONS
Single-use plastics are just one small example of how having a system that collects and analyses each and every data point can help ship managers and owners to track every aspect of the running of a vessel. This detailed analysis can be the difference in making valuable cost savings and streamlining processes especially when it comes to environmental and social governance.
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AND FINALLY... It has been another busy start to the year at V.Group and as always we’ve been out in the media talking about some of the key issues and topics that matter to you and us. So, in case you missed it, here’s a flavour of what we’ve been up to. With the shipping industry facing an increased amount of scrutiny in regard to its environmental practices, we recently committed to join IMPA SAVE. The group represents global ship owners and maritime suppliers who are responding to the United Nations’ universal call for action to promote prosperity while protecting the environment. The first project focuses on reducing the use of plastic drinking water bottles by 2025. Single-use plastic is a significant threat to life in the ocean and the planet as a whole. In line with V.Group and Oceanic Catering’s latest commitment to drive towards eliminating single- use plastics, and our goal of ZERO pollution from plastic waste at sea and continuously minimising the generation of shipboard waste, joining IMPA SAVE reinforces our commitment to collaborate across the industry for the preservation of the marine environment. You will also see more about this soon with our water drinking solutions that we will be talking about in the coming months. Also, V.Group recently joined 750 companies and organisations in signing the Neptune Declaration on Seafarer Wellbeing and Crew Change which calls for recognition of seafarers as key workers and being given priority access to COVID-19 vaccines. And finally, our latest ‘Life After Lockdown’ discussion paper has gone out about how we can attract the best and brightest talent to our amazing industry, so if you haven’t seen it but would like to do let us know. And that’s all for this issue. We hope you found this of interest. As always, if you would like any further information or to see how we can help you please do get in touch, bjoern.sprotte@vgrouplimited.com Thanks and stay safe Bjoern
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