APRIL 26, 2017 — Maersk has joined forces with Microsoft Corp. in what’s described as “a strategic move to revolutionize supply-chain management and global trade.” Under the agreement Microsoft has been selected
MARCH 8, 2017—Back this past February, a South Korean court declared Hanjin Shipping bankrupt. The bankruptcy sent shockwaves through the shipping industry. Montgomery McCracken’s Wook Chung, Esq., the former general counsel for
OCTOBER 10, 2016 — BIMCO, the world’s largest international shipping association, today voiced serious concerns about some conclusions of an official study that will inform the decision of IMO’s MEPC over the
SEPTEMBER 23, 2016 — The status of Hanjin Shipping and the disruptions caused by its bankruptcy to the American shipping community, as well as global supply chains, was examined closely by the
SEPTEMBER 20, 2016 — Yonhap news agency reports that South Korea is seeking diplomatic help to sort out the mess left by the collapse of Hanjin Shipping. Hanjin’s court-sanction self-restructuring plan has
ML: Tell us a bit about your background. How did you get started in the marine business?
MD: Originally from the UK, my introduction to the Marine world can be traced back to growing up and learning to sail in my early teens—as well as the influence of my father, a mechanical engineer. To complement my understanding of science and engineering, and my sailing hobby, by the time I was University age, I chose to undertake a Naval Architecture and Offshore engineering degree. A graduate of both the Lloyds Register (LR) internship program and Lloyds Register Graduate training scheme, I have been fortunate, but also driven to obtain a diverse understanding of the global supply chain and Marine business as a whole over the 16 years I have worked for LR. Having held a variety of roles across our business and areas of operations—from London, Dubai, South Africa, South East Asia and now the Americas—each role has been an incredible professional and personal learning experience, and has given me a broad view of our clients, their challenges, the global interconnected nature of our Marine business as well as the place and importance of Lloyd’s Register both now and as we look to the future.
ML: You’ve worked with Lloyd’s Register in Europe, the Middle East and Asia. Are the challenges for a classification society any different in Americas than the rest of the world?
MD: Irrespective of geography, at Lloyd’s Register our primary aim is about helping to shape the future of shipping, while delivering solutions today – helping clients and stakeholders make the best commercial decisions based on the best technical insight. Over the years this has seen an evolution in how and what all Classification societies view as their part in the industry, from core classification to industry and individual client advisors. Clearly irrespective of geography, many of our client challenges are similar and I think one thing my global experience has taught me is that there are many synergies between geographies, segments, and clients that enable us in the Americas to be agile and expedite the best solutions for our clients.
In the Americas specifically, we operate across 14 countries and it’s important that we have both the right existing as well as future resource and knowledge base to address the challenges of our client bases as markets, ship segments, energy and social economic policies impact their operations and future strategic direction across those countries. Looking at the future of our services across the Americas, therefore, we have recently made enhancements to how we serve and work with our client bases across the region. Outside of our core Classification business and surveyors on ships, this ranges from working with the Royal Canadian Navy to developing a Regulatory regime for Naval Safety and their shipbuilding program to developing new propulsion configurations with our GE COGES (COmbined Gas turbine Electric and Steam) Joint Industry Project for LNG and ULCS construction right across the spectrum to helping understand small scale and inland waterways LNG solutions in the Gulf, South and Central America. While the challenges may be geographically unique, and different markets may require different solutions, our aim has always been to provide solutions and aid decision making for our industry.
ML: What are the biggest challenges faced by vessel operators today? Complying with stricter environmental regulations? Cybersecurity? Crew training?
MD: As you know these are very interesting times for the Marine Industry as a whole and inherent stakeholders there-in. Interestingly with the downturn in many sectors, we are seeing the emergence of an industry that, while remaining the enabler of world trade, is more open to drive innovation, offering interesting, dynamic technical solutions and careers as we search for answers to questions about the future of Marine and Offshore. The solutions to many of the challenges faced by owners today are also increasingly coming from other industries or providers not traditionally known within Marine. Aside from the ongoing regulatory changes, we are working with many owner/operators and shipyards across the world in so many areas. Sensors, data and robotics could drive safer, autonomous operations and surveys; new fuels are going to emerge to help lower greenhouse gases as well as improve local air emissions; new software tools will be developed to improve vessel design and safety oversight while also optimizing performance outcomes; and a new cyber enabled shipping that will see the development of things that we can’t predict and possibly lead to a significant and exponential disruption in the industry. We are also seeing the increasing challenge of obsolesce in newer and newer assets as well as a shift in firstly attracting then maintaining and training next generation crews.
These are very technological, challenging yet interesting and visionary times for Marine and Offshore.
ML: How do you see class evolving over the next decade? What challenges does your organization face in the years ahead?
MD: The role and place of Class societies has markedly changed over the last decade and looking forward the pace of industry change and technological advancement means we are already scenario planning for what may be needed in the next decades. It’s critical we understand and address these changes not only in terms of future core surveying capabilities and technologies but importantly to remain relevant and agile in maintaining our technology leadership and aims as an industry advisor. We often say “We are our people” and as someone who’s worked across the globe I have seen first-hand the breadth of our global knowledge base, connection and industry expectations. Ensuring we adapt to these changing needs is vital as well as ensuring we continue to invest either time or capital in understanding and shaping technology impacts to our own business with the agility to redefine what we do. To this aim we’ve working closer with industry visionaries many of whom reside in the Americas both historical marine companies but increasingly from outside of Marine. Real world solutions to industry challenges such as our joint venture project with Siemens, Dresser-Rand, Waller Marine and Conrad are examples of greater cross-industry collaboration in meeting tomorrow’s challenges.
JULY 5, 2016 — Fears about the impact of new IMO container weighing requirements may prove to have been exaggerated. With three days of terminal operations completed under the new Safety of
MARCH 22, 2016 — According to the Allianz Global Corporate and Specialty Safety and Shipping Review 2016, the shipping industry saw the number of total losses remain stable during 2015, declining slightly
It’s the year 2016 and the worldwide community continues to ride a wave of technology that streamlines many aspects of our everyday lives. Communications, travel, healthcare, recreation, and commerce, you name it — reliance on computer systems and networked solutions remain at the forefront of growth and development. While technological innovation has long been a critical catalyst for growth, it is commonly viewed as a double-edged sword. When innovation drives a market, so does risk.
In recent years, headlines have been littered with the words “cyberattack” and “data breach.” From the world’s largest companies and governments, to the average online shopper, we all must face the reality that motivated, capable, and persistent cyber threats exist; and the potential for theft, damage, and disruption on a global scale is real.
Running parallel with technological innovation, the global maritime transportation system is going through its own period of growth and change. A clear example of this was witnessed by onlookers on December 31, 2015, as the container ship Benjamin Franklin cleared the Golden Gate Bridge on its way to the Port of Oakland, CA. With a draft of 52’ and just 20’ to spare from the Golden Gate, the Benjamin Franklin, along with its 18,000 containers, became the largest container ship to ever call upon a U.S. Port. Accommodating larger vessels means expanding not only the waterways, but also the capabilities and capacities of the terminals and people tasked with handling the cargo.
“Among the greatest concerns that impacts both military and civilian realms is cybersecurity. Today, we have a billion devices that are accessing the Internet. Our economies are entangled in this Internet sea, and it’s an outlaw sea… At some point, there needs to be a very global conversation on this challenge.” – James G. Stavridis, Navy Adm., NATO’s supreme allied commander for Europe and Commander of U.S. European Command
Coupled with brick and mortar type infrastructure projects, port facility and vessel owners/operators are increasingly turning to and relying on technology to meet supply chain demands. As technology enhances efficiency, cyber-related vulnerabilities in the maritime transportation system continue to be exposed. In response to this evolving cyber risk landscape, governments and maritime-related authorities/organizations worldwide are working to develop strategies and legislation in support of a common approach to cybersecurity and network preparedness.
The U.S. Government’s Approach to Maritime Cybersecurity
In June 2015, the U.S. Coast Guard (USCG) published its vision for operating in the cyber domain. With the below mission statement, the USCG officially outlined a strategy for defending cyberspace that both enables operations and protects infrastructure.
“We will ensure the safety of our cyberspace, maintain superiority over our adversaries, and safeguard our Nation’s critical maritime infrastructure.”
In October 2015, congressional members of the House Homeland Security Committee, Subcommittee on Border and Maritime Security, held a hearing to discuss the USCG’s cybersecurity strategy and the current status of cybersecurity at U.S. ports. Witnesses included representatives from the USCG, the U.S. Government Accountability Office; the Port of Long Beach, California; and the Ports of Brownsville and Harlingen, Texas. Witness testimonies revealed cybersecurity challenges faced by ports and maritime facilities related to cyberattack reporting, information sharing, and mitigation planning.
On the heels of the Border and Maritime Security Subcommittee Hearing, the House of Representatives unanimously approved a port cybersecurity bill (H.R 3878) on December 18, 2015. Dubbed the “Strengthening Cybersecurity Information Sharing and Coordination in Our Ports Act of 2015,” the bill solidifies the USCG as the lead agency charged with managing port-wide cybersecurity, and establishes requirements for integrating cybersecurity with port security activities currently in place as a result of the Maritime Transportation Security Act (MTSA) and International Ship and Port Security (ISPS) code. Although stopping short of imposing new regulations, the three sections of H.R. 3878, the titles of which are provided below, echo the internationally common themes of risk-based decision making and enhanced information sharing in its approach to cyber risk management.
The Global Conversation
Published in 2011, the first report on port cybersecurity prepared by the European Union Agency for Network and Information Security (ENISA) sought to gauge current capabilities and establish a baseline for maritime cybersecurity amongst its members. Key findings included a lack of maritime cybersecurity awareness and related policies as well as a need for a common cybersecurity strategy and best management practices.
The ENISA report strongly recommends a risk-based approach and assessment of maritime-specific cyber risks; expanding maritime regulations and policies beyond just physical aspects of security and safety; as well as better information exchange and statistics on cybersecurity.
While more prescriptive than the U.S. approach, the general adherence to information sharing and risk-based decision making highlights Europe’s contextual alignment with strategies, frameworks, and legislation both in the U.S. and international maritime communities.
From Conversation to Implementation
If conversation was the leading factor in determining network preparedness, we would be well on our way to securing critical infrastructure worldwide. Unfortunately, this is not the case. The challenge for many organizations is not identifying the cybersecurity problem, but rather determining the most advantageous solution to addressing their competing needs for system protection, system accessibility, and systems reliability and resiliency. To help facilitate the planning process and ensure its effectiveness, an organization must fully understand and base decisions on their cyber risk profile.
In February 2013, President Obama issued Executive Order 13636: Improving Critical Infrastructure Cybersecurity. The order required the development of a voluntary, risk-based Cybersecurity Framework to include a set of existing standards, guidelines, and practices to help organizations manage their cyber risks. The resulting framework for improving critical infrastructure cybersecurity, created by the National Institute of Standards and Technology (NIST), provides a structure that organizations, regulators, and customers can use to create, guide, assess, or improve comprehensive cybersecurity programs. Created through public-private collaboration, the framework provides a common approach to cyber risk management that is both cost-effective and grounded in addressing the business needs of an organization. Adherence to the NIST cybersecurity framework is increasingly becoming a requirement for organizations who wish to do business with or receive funding from the United States Government.
Given the interdependencies that exist within the maritime community, the process of hardening cyber defenses and creating resiliency cannot end at any one fence line or network perimeter. Organizations can no longer view their information technology groups as separate support mechanisms, and should instead integrate them more broadly with operations, business development and emergency/crisis management teams.
Collaboration and information sharing is a must, and as such, entities like the U.S. Coast Guard, FBI, and U.S. Cyber Emergency Response Team (US-CERT) provide multiple platforms and tools to aid in not only conducting assessments, but facilitating collaboration between public and private sector representatives across the United States. Groups such as InfraGard (FBI) and U.S. Coast Guardß Sector Area Maritime Security Committees are currently engaging with members of the maritime community to address cybersecurity realities and develop partnerships forged by mutual benefit.
As this trend continues to evolve the maritime industry must stay active in the conversation. With recent cyberattacks allegedly targeting GPS-based navigation and communications systems, the necessity for confronting cyber vulnerabilities as one industry, rather than as separate entities is clear.
APRIL 15, 2015 — U.K. ferry operator Condor Ferries seems to have been experiencing a series of unfortunate events with Condor Liberation, the 102 m Austal trimaran it acquired last year (see
