shipping

Shipping not in COP21 agreement: Now what?

Be that as it may, the International Chamber of Shipping (ICS) says it “greatly welcomes” the agreement and that “the shipping industry remains committed to ambitious CO2 emission reduction across the entire world merchant fleet, reducing CO2 per tonne-km by at least 50% before 2050 compared to 2007.”

Despite the absence of an explicit reference to shipping, ICS says that the message from the world’s governments is clear.

“I am sure IMO Member States will now proceed with new momentum to help the industry deliver ever greater CO2 reductions, as the world moves towards total decarbonization by the end of the century” said ICS Secretary General, Peter Hinchliffe.

ICS will engage meaningfully in discussions at IMO, expected to begin in earnest at a critical meeting in April 2016, about the possibility of agreeing a CO2 reduction target for shipping. ICS is also pushing for IMO to finalize a global CO2 data collection system for ships, which ICS would like to see mandatory as soon as possible, prior to IMO deciding on the necessity of additional actions such as a developing a Market Based Measure.

ICS says that dramatic CO2 reductions from shipping will only be guaranteed if further regulation continues to be led by IMO.

ICS notes that, as a result of the Paris Agreement, developing nations such as China and India have accepted responsibility to curb their emissions alongside developed economies, however, the agreement retains the principle of “differentiation” that allows different parties to offer different levels of commitment to reducing CO2.

“CO2 is a global problem and shipping is a global industry” said Peter Hinchliffe. “IMO is the only forum which can take account of the UN principle of ‘differentiation’ while requiring all ships to apply the same CO2 reduction measures, regardless of their flag state. Unilateral or regional regulation would be disastrous for shipping and disastrous for global CO2 reduction, whereas IMO is already helping shipping to deliver substantial CO2 reductions on a global basis.”

ICS says that the complexity and scale of the Paris Agreement means that many of those involved may be disappointed by certain aspects, including the absence of explicit text referring to international shipping. At the start of the negotiation, ICS had hoped there might have been an acknowledgment of the importance of IMO continuing to develop further CO2 reduction measures, applicable to all internationally trading ships, and implemented and enforced in a uniform and global manner.

“Time finally ran out to agree a compromise on international transport acceptable to all nations, but nothing is really lost. No text is probably preferable to some of the well intentioned words being proposed at the very end of the conference which few people understood and which could have actually greatly complicated further progress at IMO” said Mr. Hinchliffe. “The Member States at IMO are the same nations that were present in Paris, but with officials that have a deep level of maritime expertise. Intensive work at IMO will continue with the global shipping industry’s full support.”

The European Community Shipowners Association also welcomed the agreement.

“Following the adoption in 2011 of measures to increase the energy efficiency of the industry, the agreed next step is a global data collection system of CO2 emissions”, said Patrick Verhoeven, Secretary General of ECSA, “The governments in IMO will resume discussions on such a system in April next year, with the aim of ascertaining the real contribution of international shipping to global CO2 emissions. We strongly encourage all parties to ensure that these discussions lead to the establishment, as soon as possible, of a mandatory data collection system.”

Once the data collection system is in place, the IMO will be able to decide on steps ahead.

“Together with our partners in the International Chamber of Shipping, we are ready to positively contribute to this process” said Mr. Verhoeven. “We hope that the European Parliament as well as civil society will join us in supporting Member States and the Commission to seek a global partnership in the IMO, as no regional solution could ever guarantee global emission reductions nor a global level playing field for shipping. The EU has adopted regulation that is meant to facilitate and precipitate a global solution for CO2 emissions from ships. It is now time to translate these commitments into a global agreement.”

European owners want shipping back in COP21 text

European shipowners have joined the European Commission, Members of the European Pariament and various stakeholders in calling for shipping to be put back into the text.

The International Chamber of Shipping says it would be helpful for the new agreement to reiterate the vital role of the UN International Maritime Organization in the development of further measures to reduce shipping’s CO2 emissions. This would give extra encouragement to build on the global regulations IMO has already successfully adopted and which should reduce CO2 per tonne-km 50% by 2050.

However, says ICS, the absence of text is unlikely to inhibit the aspirations of governments – which are shared by the industry – for IMO to take further action.

“While text on shipping could be useful, the negotiators are now having to focus on the really high level things like climate finance to ensure the overall agreement is a success which is what everyone wants” said ICS Secretary General, Peter Hinchliffe.

ECSA Secretary General Patrick Verhoeven called the talks in Paris “a unique opportunity” to signal IMO member states to act decisively in order to further regulate CO2 emissions from ships on a global level.

“It would provide support for their ability to move forward and give new impetus to ongoing discussions, which we hope will very soon reach fruition,” said Mr. Verhoeven.

ECSA says that though the IMO has already made strides when it comes to the shipping industry’s carbon footprint, its work on CO2 emissions reduction is far from completed. It remains firmly on its agenda and will be considered again at the next meeting of the IMO Marine Environment Protection Committee in April 2016.

ECSA says the shipping industry supports the establishment, as soon as possible, of a mandatory system of data collection from individual vessels, understanding that the possibility of further market based measures might be revisited after an IMO analysis of the data submitted by ships.

“We firmly believe that deleting any reference to shipping and the progress needed at IMO level is a missed opportunity. The EU has already placed its faith in the IMO process by adopting legislation that will enable and support IMO in establishing a global data collection scheme,” said Mr Verhoeven.”An irreversible process leading to lower CO2 emissions from ships has started. Efforts at IMO and EU level can only be bolstered by a clear signal from the highest UN instance on climate change. We sincerely hope that negotiating parties will seriously reconsider and heed our call for shipping to be reintroduced in the final climate agreement.”

Environmental Awards honor 1,601 ships

The average number of years operating without incident for ships and vessels that received awards is 6.9 years. Three hundred and sixteen of the vessels have logged more than ten years each of environmental excellence.

U.S. Coast Guard, RADM Paul F. Thomas, Assistant Commandant for Prevention Policy participated in the award ceremony in Washington, DC, and congratulated the award recipients and the industry as a whole for the extraordinary performance.

Kathy J. Metcalf, President of CSA said, “These awards celebrate the dedication to environmental excellence of our seafarers and the company personnel shore-side who operate our vessels to the highest standards. In today’s world, it seems our industry only gets front-page news when spills or other environmental problems occur. It is encouraging to see how many vessels go for years achieving environmental excellence. It should be clear to the American public that we in the maritime industry take our stewardship of the marine environment very seriously.”

The awards are open to all owners and operators of vessels that operate on oceans or inland waterways. The CSA Board encourages all operators and owners to take advantage of this opportunity to recognize their crew and shore-side operating personnel and encourages all operators and owners to consider participating in next year’s program.

Among companies owning multiple award winning vessels were Crowley Maritime Corporation and Foss Maritime.

You can download the complete listing of vessels receiving the awards HERE

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Wartsila sees marine market remaining challenging

It reported that order intake over the nine month period was stable at EUR 3,529 million (3,562 million in the prior year equivalent period) and that net sales increased 6% to EUR 3,439 million (3,230).

Wärtsilä expects its net sales for 2015 to grow by 5-10% and its operational profitability (EBIT% before non-recurring items) to be 12.0-12.5%. This guidance includes the impact of the L-3 Marine Systems International (MSI) acquisition. MSI is expected to contribute approximately EUR 250 million to net sales and EUR 9 million to the operating result during 2015. Excluding purchase price allocation amortization, MSI’s operating result is estimated to reach EUR 16 million.

Björn Rosengren, who will be succeeded as President and CEO by Jaakko Eskola on November 1, said that the Marine Solutions markets remain challenging.

“Low vessel contracting volumes, together with weak sentiment in the offshore segment, is impacting our order intake,” he said. “I am pleased to note that our Services business is compensating well for the lower demand in our equipment markets. Improved maintenance demand from marine customers and stability within power plant service indicates a positive outlook for the rest of this year.”

Wärtsilä expects the overall outlook for the shipping and shipbuilding markets to remain challenging.

“Overcapacity continues to affect demand,” says the company. “Low oil prices are impacting investments in offshore exploration and development, resulting in weak contracting of offshore drilling units and support vessels. Gas carrier contracting is expected to remain on a normalized level. The outlook for the cruise segment remains positive thanks to an anticipated increase in Asian passenger traffic, while the outlook for ferries is supported by signs of economic recovery in the USA and Europe. The importance of fuel efficiency and environmental regulations are clearly visible. The regulatory environment is driving interest in gas as a marine fuel in the wider marine markets.”

The overall service market outlook is positive with growth opportunities in selected regions and segments. An increase in the installed base of medium-speed engines and propulsion equipment is offsetting the slower service demand for older installations and the uncertainty regarding short-term demand in the merchant marine segment. The service demand for installations operating on oil based fuels is expected to grow as low oil prices have had a favorable impact on operating costs. Although the decline in oil prices has resulted in a challenging outlook for offshore services in specific regions, the growth during recent years in the offshore installed base partially compensates for a potential decline in service volumes. The service outlook for gas fueled vessels remains favorable.”

Read the interim report HERE

Euro MPs want to fast track setting of shipping GHG target

 

Specifically, the resolution “calls for all the Parties to work through the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) to develop a global policy framework to enable an effective response, and to take measures to set adequate targets before the end of 2016 for achieving the necessary reductions in the light of the 2 °C target [for a limit on global warming].”

The resolution has drawn a very guarded response from European shipowners.

“We are happy to see that the European Parliament recognizes the importance of a global solution for international shipping and gives a vote of confidence to the IMO, which should be allowed to pursue its efforts,” said Patrick Verhoeven, Secretary General of ECSA, the European Community Shipowners Association. “We are however also concerned by the deadline adopted by MEPs on Wednesday. 2016 is right around the corner and as such it is rather unrealistic to expect the IMO to come up with a solution in a matter of months. A unilateral European push for a hard deadline may be counterproductive.”

ECSA calls IMO’s track record in developing technical CO2 energy efficiency measures for the maritime sector “impressive.”

Following the adoption of the amendments to MARPOL Annex VI, which came into force worldwide in 2011 and which now apply to about 95% of the global merchant fleet, international shipping is the only industrial sector already covered by mandatory and binding global measures, notes ECSA. IMO also recently adopted the Energy Efficiency Design Index (EEDI), which requires all ships constructed after 2025 to be 30% more efficient that those built in the 2000s, with further efficiency improvements going forward. Finally, the shipping industry itself, prompted by an increase in bunker prices, has made strides in increasing its energy efficiency and curbing its CO2 emissions.

As a result of recent efforts, the contribution of shipping to global CO2 emissions has in fact dropped, says ECSA.

According to the latest IMO Green House Gas study, published in 2014, international shipping (while transporting about 90% of world trade) produces about 2.2% of the world’s total CO2 emissions. This figure was 2.8% in 2007, and the total CO2 emissions from shipping went down by over 10% between 2007 and 2012. This was despite continuing growth in maritime trade which means that shipping is already delivering carbon neutral growth.

“The 2016 deadline is not consistent with the steps already taken at EU level” commented Benoit Loicq, ECSA Safety and Environment Director. “By pushing for an extremely tight deadline, the EU would essentially undermine the IMO procedure. If the EU would then focus on regional measures, it would be backtracking on its own policy.”

ECSA says the EU Monitoring, Reporting and Verification (MRV) Regulation is intended to be the first phase of a stepwise approach geared towards a global (read IMO) solution by allowing to determine the real contribution of shipping to global CO2 emissions.

“The course of action that has been agreed is to start with an accurate picture of the shipping industry’s CO2 emissions in 2018 (i.e. two years after the MEP-backed deadline),” says Mr. Loicq. “If we now backtrack and skip the data collection phase altogether, how would it be possible to set realistic and fair targets?”

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YoungShip launches in Texas

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CMA names Panagiotis N. Tsakos its 2015 Commodore

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Shipping set to reduce carbon footprint further

NOVEMBER 30, 2014—The global shipping industry is on track to reduce its greenhouse gas emissions by 20% by 2020, according to the International Chamber of Shipping. Ocean shipping is one of the