US$ 3 • Vol 10 • Edition 04 • April 2021 MATRIX

US$ 3 • ` 150 Vol 10 • Edition 04 • April 2021M A R I T I M E

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24Pride Safety Assurance

India will soon begin full-scale operations at Chabahar Port

Landbridge to build platform for next-generation ship management

Indian Major Ports freight traffic shows year-on-year increase for 5th consecutive month

Chase excellence, success will follow

Dr Ashok Chitkara and Dr Madhu Chitkara

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02 | Maritime Matrix Today | April 2021

Maritime Matrix Today | April 2021 | 03


Pride Safety Assurance

With travellers being extremely thoughtful about their accommodation, the need for safety of staff and stays that are well-sanitized and disinfected environment

is of utmost priority. To attain the highest level of safety and hygiene standards Pride Group of Hotels collaborated with various medical and industry experts and formulated a design to tackle the realities of COVID-19 pandemic at the hotel level and further advance the company’s efforts in this area.

Pride Hotels welcome its guests for a safe and hygienic experience under Pride Safety Assurance initiative. This assurance covers hygiene guidelines, booking policies as well as precautions to be taken by guests and staff to ensure safety and flexibility.

Enlightening on the initiative, Mr Atul Upadhyay, VP Operations, Pride Hotels Ltd said, “We have restarted our operations while adapting to the new normal wherein the safety of our guest and staff will be our top priority. We’re grateful to our loyal guests who have bestowed us with their trust during this pandemic. We want them to feel safe when they walk through the door of our hotels at all times. In order to make it possible we need

Mr SP Jain, MD, Pride Hotels Ltd



to be transparent with them on the steps we have taken in the areas of cleanliness, hygiene and social distancing. It’s also important for us to make our staff feel safe while working. We’ve launched various training programmes for them to be well equipped while serving the guests. Our commitment towards safeguarding both our guests and staffs is our top most priority. So we’ve made sure that they’re informed of the changes we are making at all times.”

Elaborating further on the initiative, Mr SP Jain, Managing Director, Pride Hotels Ltd added that the Pride hotel has rolled out enhanced technological measures like contactless check-in & check-out services, contactless billing facility, touch less dispensing centre for the sanitizers and mobile friendly dining menu. Other measures that have been taken is the usage of biodegradable trays for the in-room dining, marking the floors in the lobby area for people so they maintain social distancing at all times and all the key touch-points area in the hotel are sanitized in every half an hour. There are many senior executives and officers who have opted for Work from Hotel or Self Isolation at our properties. “We want our guests to know that we are doing everything we can to welcome them back to a safe and clean hotel environment when they start traveling again. Pride Safety Assurance initiative is a step we have taken to ensure them of our promise,” Mr Jain said.

MMT

BIFA reminds members’ course of action following General Average declaration

The British International Freight Association is reminding its members

that have been affected by the news that General Average has been declared by the owner of the Ever Given that if they have incorporated the BIFA Standard Trading Conditions into their contract with their clients there is an indemnity concerning General Average costs in clause 20 D.

Furthermore, Clause 22 states: “Where liability arises in respect of claims of a General Average nature in connection with the

Goods, the Customer shall promptly provide security to the Company, or to any other party designated by the Company, in a form acceptable to the Company.”

Robert Keen, Director General of BIFA says: “When our members receive notification that a General Average has been declared for a vessel, whatever the position, their first action must be to give the importer immediate notice. The appointed average adjusters will need to be in possession of completed guarantees and bond forms, or a cash deposit before

release of cargo, so it is vital that the importer takes immediate action.

“Our advice to members is that with General Average being declared, any standard marine policy will include General Average losses, so if the goods have been insured the importer should obtain a General Average guarantee from the insurers.

“If no insurance has been organised then a cash deposit will be needed.”

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ClassNK begins Autonomous Shipping Risk Assessment Study

With global efforts accelerating toward the practical use of technology

for autonomous operation of ships, numerous questions arise regarding the risks associated with the use of these technologies and how it will impact the shipping industry. The classification society ClassNK has begun joint investigative research with Sompo Japan Insurance for a risk assessment of autonomous ships.

Many people in the shipping industry and technology believe the use of autonomous operations or remote control may be a promising way to improve safety by preventing human error related to ship maneuvering, It also is viewed in some regions, including Japan, as a way to address some of the growing shortages of qualified

mariners as well as to improve working conditions by reducing the workload of crew members.

With the implementation of demonstration projects and the development of the guidelines led by the government, the framework for safety evaluation is in progress in Japan according to ClassNK.

Building on developments in the field, Sompo Japan and the class society have begun joint investigative research on the risk assessment of autonomous ships. The risk assessment is considered an important step to ensure the safety of autonomous ships.

Utilizing ClassNK’s knowledge of ships, and Sompo Japan’s knowledge on risks associated with ship operation and management based on underwriting ship

insurance, they will carry out an optimal risk assessment for autonomous ships by researching and sharing their knowledge. They will also incorporate knowledge on risk assessment for the practical application of autonomous vehicles developed by SOMPO Risk Management Inc., which is in charge of risk management operations in the SOMPO Group.

They began their research in February 2021 and aim to announce the results in 2022. Through the results of various partnerships, ClassNK seeks to reinforce its knowledge of risk assessment as a classification society and will strive to contribute to the implementation of autonomous ship technology.

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NYK tested remote navigation and autonomous operations with one of its tugboats

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Flagships prepare to deploy world’s 1st hydrogen-powered commercial cargo ship

The European innovation project Flagships is preparing to deploy the

world’s first commercial cargo transport vessel operating on hydrogen.

The ship will be an inland vessel, set to ply the river Seine in Paris, and is scheduled for delivery in September 2021. It will be fitted with by hydrogen power generation system, i.e., hydrogen fuel cells.

The hydrogen cargo transport vessel will be owned by French inland shipowner Compagnie Fluvial de Transport (CFT), a subsidiary of the Sogestran Group. The company is currently developing a new business for urban distribution with transport vessels in the Paris area.

“Green and sustainable shipping is a prerequisite for reaching national and international emission reduction targets. Ships powered by renewable hydrogen will make a substantial contribution to reducing emissions from shipping and improving air quality in cities and other densely populated areas,” says Flagships Project Coordinator Jyrki Mikkola from VTT Technical Research Centre of Finland.

The Flagships project was awarded EUR 5 million in 2018

from the EU’s Research and Innovation programme Horizon 2020, under the Fuel Cells and Hydrogen Joint Undertaking (FCH JU), to deploy two hydrogen vessels in France and Norway.

The project’s initial plan was to deploy a hydrogen push-boat in the Lyon area, but as the broader potential for hydrogen in cargo transport emerged, the demo pusher was changed to an inland cargo vessel. The new vessel will be tasked with moving goods on pallets and in containers along the river Seine.

The shift in focus is based on Sogestran Group’s experience gained in Belgium, where Blue Line Logistics (BLL), another subsidiary of the Sogestran Group, operates three cargo vessels sailing under the concept name “Zulu”.

Blue Line Logistics plans to have the ship operating on hydrogen before the end of 2021.

One Zulu vessel has also been put into operation in Paris, and an additional two Zulu ships are currently under construction for the same market.

“Flagships is a very exciting project for us, since it is leading the way to demonstrate how vessels operating on green hydrogen

can decarbonise urban rivers. By translating technological innovations into commercial operations we can make zero-emissions inland vessels a reality in every European city!” says Bart Biebuyck, Executive Director at FCH JU.

Pieces in the zero-emission puzzle

The vessel will operate on compressed hydrogen produced from electrolysis, enabling not only zero-emission operations. The power generation system for Zulu will be supplied by ABB Marine & Ports, with fuel cells from Ballard. LMG Marin is responsible for detail design drawings, with hydrogen provided by suppliers in the Paris region.

The Flagships consortium includes 12 European partners, with two shipowners, Norled and CFT assisted by its support company Sogestion and Sogestran; the maritime OEM and integrator companies ABB Marine & Ports and Westcon Power & Automation and ship design company LMG Marin.

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Gasum kicks off test LBG deliveries to Finish Border Guard

Nordic energy company Gasum has kicked off test deliveries of liquefied

biogas (LBG) for the Finnish Border Guard.

The deliveries aim to demonstrate the suitability of LBG as a fossil-free and 100 per cent renewable fuel to the needs of the maritime industry.

Gasum made the first delivery of domestically produced biogas from the Turku biogas plant to Helsinki on 1 April.

The next delivery will take place in the coming weeks with liquefied biogas imported from Risavika, in Norway, to Helsinki via Gasum’s terminal in Pori.

“Through these test deliveries

we will expect to gain more experience on using biogas and to support further our efforts to reach the carbon neutrality goals Finland has set for 2035”, says commander Marko Aheristo, the Head of Ship Technical Unit at the Finnish Border Guard.

According to the current government program, Finland will be carbon-neutral by 2035. This means significant emission cuts are required in the transport sector on land and sea. By choosing biogas, it is possible to reduce the CO2 emission by up to 90 percent, making it the cleanest marine fuel available. LBG is also interchangeable with liquefied natural gas (LNG) which means that the two gases

can be mixed and used in the same vessels.

“Gasum has supported the Finnish Border Guard’s LNG-fueled offshore patrol vessel Turva since the beginning of her operations, and now we are very happy to continue this journey with LBG-deliveries. Using biogas alongside with LNG in marine transport is a new step forward in decarbonizing the shipping industry and we are looking forward to completing more successful trials with biogas in the near future”, says Jacob Granqvist, vice president Maritime from Gasum.

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Hapag-Lloyd confirms completion of world’s 1st ULCV LNG-conversion

The world’s first conversion of a large containership to LNG as fuel has been completed,

German liner company Hapag-Lloyd has confirmed.

The 15,000 TEU vessel Sajir, now renamed Brussels Express, departed the Chinese shipyard Huarun Dadong Dockyard Co. last Saturday and is now underway in the North China Sea heading toward Busan, Korea.

“We will have some guarantee work to do though which will be completed during the next months,” Hapag-Lloyd said.

The ship is now phasing back into service.

The vessel arrived at the Shanghai yard on August 31, 2020, for the retrofit, which was set to start in May 2020.

The project was delayed due to the COVID-19 impact, marking its official start on September 2.

The ship was fitted with 6,500-cbm LNG Mark III tank was designed by the French LNG containment specialist GTT.

MAN Energy Solutions was tasked with the conversion of the vessel’s HFO-burning MAN B&W 9S90ME-C engine to a dual-fuel MAN B&W ME-GI.

The conversion is expected to cost around $35 million.

The Sajir is one of the 17 vessels in Hapag-Lloyd’s fleet that were originally designed to be LNG-ready.

The project is the core of Hapag-Lloyd’s sustainability strategy, as using LNG has the potential to reduce CO2 emissions by 15 to 30

percent and sulphur dioxide and particulate matter emissions by more than 90 percent.

Earlier this year, the company has ordered also six 23,500+ TEU containerships, set to be powered by LNG.

The $ 1 billion investment will see the LNG-powered vessels delivered to Hapag-Lloyd between April and December 2023.

The vessels will be fitted with fuel-efficient high-pressure dual-fuel engines, that will operate on LNG. However, they will have alternatively sufficient tank capacity to operate on conventional fuel, the company said.

Hapag-Lloyd has secured green financing for the newbuilds worth a total of $889 million.

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NGOs call IMO to cut black carbon emissions in the Arctic

No n - g o v e r n m e n t a l organisations are calling on the IMO to seize the chance

to immediately reduce climate-warming emissions of black carbon from ships currently using heavy fuel oil in the Arctic by switching them to cleaner distillate fuels.

As explained, the switch would ensure a cut by some 44%.

The calls coincide with the start of the virtual five-day meeting of the International Maritime Organization’s Pollution Prevention and Response Sub-Committee (PPR 8).

“Mandating a switch of fuels in order to cut black carbon emissions in the Arctic would be an easily-won victory for both the IMO and the shipping industry, and put the sector on course towards decarbonisation. Most importantly, getting black carbon out of the Arctic would also be a win for the climate, for the Arctic and the people who depend on its ecosystem for their livelihoods”, Dr Sian Prior, Lead Advisor to the Clean Arctic Alliance, said.

As explained, the IMO has been wrestling with what to do with regard to black carbon for over a decade now, and with black carbon on the agenda now, the IMO Member States have the chance to take rapid and effective action.

Prior added that the bunker industry, which supplies fuel for shipping, has indicated that it can meet the necessary demand for alternative fuels to support a migration away from using heavy fuel oil in the Arctic.

Ultimately, international regulation by the IMO is needed to eliminate emissions of black carbon from shipping on a global scale, she pointed out.

Austin Ahmusak, Kawerak Marine Advocate, stressed that the Arctic is warming as a result of human-induced changes to the atmospheric carbon cycle, adding that this has already had an impact on the rich biological diversity.

About 7-21% of global shipping’s climate warming impacts can be attributed to black carbon – the remainder being CO2, according to International Council on Clean Transportation’s publication titled Greenhouse gas emissions from global shipping, 2013–2015.

When emitted by ships in and near the Arctic, black carbon particles enter the lower levels of the atmosphere, where they remain for under two weeks, absorbing heat. But when it eventually comes to land on snow or ice, black carbon’s warming impact is 7 to 10 times greater, as it reduces the reflectivity

(albedo) and continues to absorb heat, accelerating the Arctic melt.

Even though, shipping only contributes 2% of the black carbon in the Arctic, it has a much greater heating impact. What is more, studies show that shipping emissions of black carbon have risen 8% globally in the past decade, and in the Arctic by 85% between 2015 and 2019 alone.

In November 2020, the International Maritime Organization (IMO), the UN body which governs shipping, approved a ban on the use and carriage of HFO in the Arctic – a ban that is set to be adopted this June.

The organizations insist that this ban contains serious loopholes which will mean minimal reductions in the use and carriage of HFO in 2024 when implemented.

PPR 8 is set to discuss amendments to the IBC Code, development of a standard for the verification of ballast water compliance monitoring devices and assessment of Black Carbon emissions in Arctic shipping.

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India will soon begin full-scale operations at Chabahar Port

By the end of May, India will begin full-scale operations in its first foreign port

venture at Iran’s Chabahar, a facility that opens on the Gulf of Oman that will aim to facilitate more South Asia, Central Asia and West Asia trade, a report stated.

India’s $500 million investment represents a clear and potent commercial challenge to China’s massive port investment in

neighboring Pakistan’s Gwadar, a key component of Beijing’s Belt and Road Initiative (BRI).

India has nearly completed development of two terminals at Chahabar’s Shahid Beheshti complex that opens onto the Gulf of Oman.

The 10-year lease agreement, a deal first clinched by Prime Minister Narendra Modi in Tehran in 2016, has until now been hobbled by U.S. sanctions

imposed under the Donald Trump administration.

Indian suppliers and engineers, some with interests in the U.S., were reluctant to deliver essential machinery and services to Iran on fears they could somehow be sanctioned, despite clear exemptions on Chabahar in Trump’s sanction order. That led to certain speculation that China may take over the project from India.


But New Delhi has doubled down and accelerated the project with the shift from Trump to Joe Biden, banking like others on a new breakthrough on the Joint Comprehensive Plan of Action (JCPOA), the official name for the 2015 nuclear agreement, and a broader U.S.-Iran warming trend.

“I will inaugurate the fully operationalized Chabahar port in April or May,” Mansukh Mandaviya, India’s ports, and shipping minister, said in a recent virtual discussion on Iran’s Chabahar port.

India has supplied two large cargo-moving cranes and will deliver two more in the coming weeks before the facility’s expected ceremonial opening next month.

New Delhi is already promoting the port’s potential humanitarian role, noting it was used to send emergency shipments of wheat to Afghanistan during the Covid-19 crisis and pesticide to Iran to deal with a recent locust infestation.

Chabahar has seen limited operations since 2019, a result of U.S. restrictions imposed on Iran’s energy exports. The port handled a mere 123 vessels with 1.8 million tons of bulk and general cargo from February 2019 to January 2021, well below its operating capacity, according to reports.

That’s set to change. New Delhi ultimately aims to link Chabahar to its International North-South Transport Corridor (INSTC), a project initially proposed by India, Russia, and Iran in 2000 and later joined by 10 other Central Asian nations.

Some see the INSTC as a less-monied rival to China’s BRI, which has invested heavily in Pakistan’s road, power and trade infrastructure, including huge multi-billion-dollar investments at Gwadar port.

INSTC envisions a 7,200 kilometer-long, multimode network comprised of shipping, rail, and road links connecting India’s Mumbai with Europe via Moscow and Central Asia. Initial estimates suggest INSTC could cut current carriage costs by about 30% and travel times by half.

Iran has already started working on a 600-kilometer-long railway line connecting Chabahar port to Zahedan, the provincial capital of Sistan-Baluchestan province close to the Afghan border.

Chabahar oceanic port consists of Shahid Kalantari and Shahid Beheshti terminals, each of which has five berth facilities. The port is located in Iran’s Sistan-Balouchestan Province and is about 120 kilometers southwest of Pakistan’s Baluchistan province, where the China-funded Gwadar port is situated.

In May 2016, India, Iran, and Afghanistan signed a trilateral agreement for the strategically-located Chabahar to give New Delhi access to Kabul and Central Asia.

The original plan committed at least $21 billion to the so-called Chabahar–Hajigak corridor, which then included $85 million for Chabahar port development, a $150 million credit line to Iran, an $8 billion India-Iran MOU for Indian industrial investment in a Chabahar special economic zone, and $11 billion for the

Hajigak iron and steel mining project awarded to seven Indian companies in central Afghanistan.

Hajigak is the best known and largest iron oxide deposit in Afghanistan. It is located near the Hajigak Pass, with its area divided between Maidan Wardak and Bamyan provinces.

Unlike Chabahar, which is designed more to serve the economic and trade interests of the wider region, Gwadar is more tilted toward Beijing’s ambitions, analysts and traders say.

Riaz Haq, founder and president of PakAlumni Worldwide, a global social network for Pakistanis, wrote in a recent blog that “China is looking to build and use Gwadar in Pakistan as Hong Kong West to serve as a superhighway for China’s trade expansion in [the] Middle East (West Asia), Africa and Europe.”

Gwadar port’s planned capacity will accommodate a massive 300 to 400 million tons of cargo annually, comparable to the combined annual capacity of all Indian ports. It also dwarfs the 10-12 million tons of cargo handling capacity now planned for Chabahar.

In another comparison, the largest U.S. port at Long Beach, California, handles 80 million tons of cargo, about a quarter of what Gwadar could handle upon completion of a project that is designed largely to receive and move China’s trade.

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IRClass commits to provide classification services to the defence industry

Indian Register of Shipping (IRClass), an international ship classification society, has won a

contract to provide classification services for a fleet of Fast Patrol Boats & Landing Craft Assault (LCAs) currently under construction for the Indian Army.

The Indian Army placed an order on Goa Shipyard Ltd to build 12 Fast Patrol Boats in January this year. These boats will be deployed for surveillance and patrolling of large water bodies, including those in high altitude areas like Pangong Tso lake in Ladakh. The boats are expected to be delivered by May 2021.

IRClass is also certifying 17 No. high speed Landing Craft Assault (LCAs), for the Indian Army, which are already under construction at Aquarius Shipyard, Goa. These crafts are also being built for high altitude, low temperature specialized operations.

Head of IRClass Defence Division, Cdr KK Dhawan (Retd.), said: “Indian Register of Shipping is proud to extend its classification services

now to the Indian Army. IRClass will be approving the design and certifying the construction of 29 units of Fast Patrol Boats and LCAs which are being constructed by Goa Shipyard Limited and Aquarius Shipyard respectively. This affirms IRClass’ commitment to the Indian defence industry and reflects the confidence of Defence customers in the capabilities and competence of IRClass.”

The contract follows on from IRClass’ success in obtaining orders for classification and certification of several major projects of the Indian Navy including Survey Vessels (Large), Diving Support Vessels, ASW-SW Corvettes, Diving Support Crafts and various yard crafts.

IRClass is also engaged in providing its services to other paramilitary and government services, including the Indian Coast Guard, Border Security Force (BSF), National Disaster Response Force (NDRF), State Police Departments amongst others.

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Head of IRClass Defence Division, Cdr KK Dhawan (Retd.)

The Suez Canal Authority is contemplating the possibility of widening

the southern section of the waterway, the agency’s chairman said.

The canal is a critical maritime chokepoint, and last month’s boxship grounding showed a unique vulnerability: the 400-meter-long Ever Given straddled the canal’s entire width, halting all traffic for six days and stalling the movement of tens of billions of dollars’ worth of goods. In an interview, SCA chairman Osama Rabie suggested that the authority might widen the waterway to a dimension equal to the length

of its largest permitted vessels (400 meters).

“Our procedures are sound, we are just aiming to improve the service,” SCA chairman Osama Rabie told Reuters. “If there is a 250-meter part that needs expansion, maybe we will make it 400 meters.”

SCA may also consider buying new tugs with more pulling power, like the privately-operated anchor handlers that salvors called in to remove Ever Given.

Groundings in the canal are a periodic occurence, but rarely result in a major disruption. On Tuesday, two vessels in a

northbound convoy briefly went aground in the canal’s southern section, according to shipping agency GAC. The cause was a loss of power aboard the tanker Rumford, the agency said, and the tanker behind Rumford grounded as well. The incident briefly delayed four additional vessels that were located behind Rumford in the convoy.

Both tankers were quickly refloated with tug assistance and traffic carried on with minimal interference, GAC said. As of Wednesday morning, Rumford had exited the north end of the canal and was under way in the Mediterranean.

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SCA contemplates to widening southern section of the canal


Container availability and pricing are improving for Exporters

After months of crippling shortages, container availability and pricing

is finally improving in China, according to Container xChange’s Container Availability Index (CAx). The index draws

from data on the container leasing and trading platform Container xChange to track the availability of containers in major seaports.

The CAx reading of incoming containers across China’s main

ports is currently up 56 percent according to Container xChange when compared to before the Chinese New Year holidays that started on February 11. While the slowdown in factory production normally associated with the


holiday period was reduced this versus normal levels, they believe that it was still enough to allow the container supply/demand imbalance to be reduced. At the same time, the major carriers have been working to aggressively return containers to reduce the shortages experienced in late 2020 and earlier in 2021.

At Shanghai, the biggest Chinese box port, the CAx increased 64 percent for 20-foot dry containers when comparing the pre- and post-holiday container availability. For 40-foot dry

containers, the increase is even greater, with box availability improving 112 percent over the same period.

“One week of index values greater than 0.5 does not mean so much but exceeding the 0.5 marks for several weeks in a row like Shanghai and other main ports in China have done means that finally more containers are

entering ports regularly, giving them the chance to reduce the container supply/demand imbalance,” said Dr. Johannes Schlingmeier, CEO & Founder of Container xChange.

The Container xChange Container Availability Index is also highlighting that other Chinese ports such as Qingdao, Dalian, and Ningbo are strong alternatives to Shanghai for exporters who have been struggling with finding the right equipment.

Dalian has the highest equipment availability of the three ports with further improvements after the holiday period. Container availability also improved in the same period at Qingdao. These improvements in availability also contributed to declines in the cost for used containers from the record highs reported in January 2021. According to Container xChange, prices for cargo-worthy containers have declined by a third between January and February falling to $3,750 in February.

“These prices are still far higher than buyers usually pay for newly built containers, but this is still good news for companies who export from China,” said Schlingmeier.

While Container xChange believes these developments are a positive sign highlighting the improvements at key export hubs in China, they are forecasting continued volatility for container availability both in China and elsewhere in 2021.

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Chase excellence, success will followThe latest Institute to join

the maritime education & training sector is the

Chitkara University School of Maritime Studies (CUSMS). It is located in Punjab, on the lush outskirts of Chandigarh.

This is the first institution in the Northern States of Punjab, Haryana, Himachal Pradesh, Uttarakhand, and J&K, to get Directorate General of Shipping (DGS), Government of India approval for both, BSc (Nautical science) & BTech (Marine Engineering) courses.

At the helm of CUSMS is its Director, Capt Prabhat Nigam, who is also President of the Maritime Trainers Guild.

Marex Editor-in-chief Kamal Chadha met with and spoke to the Founder-Chancellor, Dr Ashok K Chitkara (AKC), and the Founder-Pro-Chancellor, Dr Madhu Chitkara (MC) of Chitkara University to find out about their brilliant successes in the arena of academics, and what prompted them to enter the field of maritime education & training.

Please describe your journey of a lifetime to founding and nurturing a path-breaking university such as Chitkara.

MC: Our professional journey from P2P, primary to PhD, started in 1976. We both are from a Mathematics background. He is in fact a stalwart in mathematics

in this region and we both have a PhD degree. We have been working together for 44 years now. If you see the vertical of it, we have taught school education and higher education and then university education. Our journey began as schoolteachers. Thereafter doing our PhDs, we went on to teach in university as professors.

In 2002, we thought to do something on our own, because Dr Ashok was known then for giving non-formal education. Basically, he was coaching the students for IIT entrance. So people would ask him why you don’t open a college where we can get formal education in engineering. Here, we got the idea of starting an engineering


Cover Story

Dr Ashok Chitkara and Dr Madhu Chitkara

college in 2002 with whatever savings we had. We started with 220 students and now it’s more than 20,000 students on our campuses. We have two universities – one in Punjab and the other in Himachal Pradesh.

Like I said we work in P2P, so we have 2 schools too which started in 2004. We have captured four territories of this North region – Chandigarh, Punjab, Himachal Pradesh, and Haryana. We have Chitkara International Schools in Chandigarh and Panchkula.

It was a slow and humble start. We started with an engineering college keeping in mind the demand of the public and society. Then, we started with BEd College, Architecture, Pharmacy, Media and Hospitality. We have a multi-disciplinary campus. Only Law and hard-core medical MBBS is not there. Rest you name any course, and we have it.

How and when did a School of Maritime Studies take shape?

AKC: This is a quite different and unique course and only those students who want to go to sea will join the course. Punjab is a rich state; the parents, whether they have money or not, they will sell their land but ensure their children receive the education of their choice. We were in search of a new course and no university in Punjab was offering this course. So, my son and wife decided to start the unique course which will be the crown of our university – School of Maritime Studies.

MC: In 2017, we thought of this idea and it took us 3 years to finally achieve it. We are lucky to have Capt Prabhat Nigam on board with us on this programme. He has a strong

marine background, and he knows all the details. So, from day 1 this course started with great perfection and we are grateful that we are known for perfection in this region.

Secondly, we are a part of United Nations (UN) and we got our UN Impact Ranking during the lockdown where we are in the 59th position in the whole world. We are the only university to be partnered with UN Academic to work on Sustainable Development course. You must be aware of SDG-17 a mandate given by UN that by 2030 we will have to work on that. So, we were working on it, the only one goal that was left out was the 14th goal – i.e. life under water. We were earlier not working on it but with this course, we are now confident that we will now be working on this goal as well.

In what manner does the School of Maritime Studies stand out from other similar setups in the nation?

AKC: Our philosophy is very simple. We are taking baby steps and do not believe in competing with others but with ourselves – what we are today and what we can be tomorrow. We have genius faculty with us. When you chase excellence, success will follow. So, we are sure that in the next 5 years like our other courses even this course will grow exponentially with the grace of god and the efforts of our excellent faculty.

Please brief us on your Social contributions that complement your work in academics.

AC: There are 5 villages nearby our campus. When the villagers from these villages visit the university, they feel like there are at their home. We meet

them often and thank them. We are always there for them during any crisis. Especially during pandemic, we delivered whatever help we could render to them. These are the people who have grown with us.

MC: We have adopted these villages in 2002; it was not the mandate from the government. Let me explain – If you look at our logo, you can see 3 arrows going in the upward direction, one for the students, one for faculty and the last arrow for the stakeholders, which includes the society, industry, and parents. As society was part of our logo, vision and mission, we had to diligently work with these villagers.

We have a Chitkara Community Radio Frequency 107.8 working 24/7, which is the first community radio in Punjab. Our media students with the help of media industry run this radio. We have slots for different departments such as pharmacy, architecture. We take up society’s issues on radio and come up with probable solutions. Some of these solutions have already been in place with the help of government. This is our CSR – Chitkara Social Responsibility.

During the lockdown, since we have a huge campus and our cooks and staff was staying here so whenever they had any families that were in distress or were having any trouble, the food was supplied to them through the campus gates. We have helped the society in whatever ways we can and similarly we also receive huge help from the nearby villagers.

In the evening, these villagers visit the premises and use the infrastructure such as play fields



for conducting matches or other events. Chitkara has donated sewing machines to the illiterate ladies of the villages who are trained in tailoring course through these machines. This was of great help recently when we gave them the job of stitching face masks. It was an added income for them and thus a win-win situation for both of us – the villagers and the university.

Our computer centre was used greatly during the lockdown when most of the educational content was delivered online. As the villagers had issues with the connectivity of their system, we took all the data from the Indian government and delivered it to the villagers through the community radio. We were honoured by the government for this service. We donated 50 lakh Rs to the PM Relief Fund for COVID-19 crisis for which everyone poured in their one-day salaries. I think we have got huge help from the people of these villages and now it is our turn to give them back in whatever form we can.

What energizes you every morning to reach your desk and start the long day at work?

AKC: In 44 years there has not been a single day that I have not come and visited the campus. It is our passion. It gives me immense satisfaction to be able to deliver this responsibility to serve the people and serve the students and provide employment to the people. It’s a sense of achievement by god’s grace.

Please give us a glimpse of the School of Maritime Studies and why you have placed great trust in its leadership and faculty.

AKC: People’s trust is most important for any organisation.

If any individual had an idea, as Chancellor or Principal, we were ready to take it. As we both are from pharmacy background and my wife has studied all the books of pharmacy when we started pharmacy course, it was her responsibility, and hence, she asked us to follow her instructions, and we did it as we were passionate about it.

Similarly, with maritime studies, when I received a call from DGS office. I was very happy. They gave us all the instructions – about the requirement of swimming pool, about rooms, food court et al. We followed the instructions and therefore, they were highly impressed.

Except Indian IIT’s, other universities have not managed to make a dent in the world’s list of top universities, and Indian students continue to crowd universities abroad. Do you see this trend changing soon? Why?

MC: Not more than 5% students are going aboard. And it’s a myth that they don’t want to come back. They are very excited to come back; our campus is an exchange pool. Yes the ranking

is true, if we compare all our private universities. Private universities came in 1950’s that is not much of a time, but we are compared to Harvard, Stanford universities under same pyramid, which seems impossible. We cannot compare a university which is of 50 year old to a university 200 years old. Because the old ones are well researched and patented. That is the reason we are not in those rankings, we are trying our best, IITs are the pioneers of the institutes, and others will also soon join.

If we see our journey, we got a university status in 2010, just 10 years ago, we do not compare ourselves with them, because their legacy is different, their alumni is very strong. The alumni are investing 50% of the money by themselves. It is not the culture in India, and it will take time to come.

Even we have Chitkara Alumni network, which is a strong network, being just 10 year old university students have started giving back, when they themselves are adjusting their family in their earnings. I am

The Secretary of Maritime Trainers Guild, Capt Kamal Chadha, presents the MTG Corporate Membership plaque to Pro-Chancellor,

Dr Madhu Chitkara, in the presence of Capt Prabhat Nigam, Director, CUSMS and President MTG

honoured to say my students have started giving back. If the alumni are not strong the perception won’t be strong.

In India everybody cannot afford to study aboard. So we have an international department where more than 80 teachers come from different parts of the world. We have collaboration with 165 universities. Instead of sending the students aboard, we invite the teachers here for a week and complete one module. So the students get the feeling of international education.

How do you see the School of Maritime Studies synergising with the maritime sector in research & development or through other avenues?

MC: As per the National Education Policy (NEP) 2020, which was introduced by the government of India during the lockdown, there has to be multidisciplinary course, where we can work together, and learn many things from each other. In our universities, we have 2 departments; Chitkara University research and Innovative network (CURIN) and Chitkara University Centre for Entrepreneurship Education & Development (CUCEED) - which is all about entrepreneurship. We were the first in the northern region to begin a start-up system.

We have so many start-ups at present also we have incubation centre in campus. 80 plus companies are sitting in this incubation centre as we are given space to them. They have reached such a phase that instead of being Job seekers they have become Job creators. CUCEED and CURIN are working together and doing research work. A new department is going start

in our campus that will turn the campus into a multidisciplinary one. Here we will see how the research is happening and the teacher won’t actually be researcher, because research tells you inquisitiveness. If you are inquisitive, you will start searching a new concept that will be delivered in your teaching learning processes through that skill will develop.

They are all interrelated, maritime is all about skill based course. 90% of the course is all lab-oriented, where the students have to learn hands-on experience. I assure you that this department will also start researching, and they will also having some patents. Here, one will be writing a research paper and that benefit is given to the industry, as industry knows that the paper is given by the university, so it means a lot for them. I assure you that, this will be the first maritime school where research will be done along with teaching.

On a personal note, how easy, or hard, is it to work as a husband-wife team?

AKC: The profiles we handle are totally different from each other – my wife handles the outdoor and I the indoor activities. Right from the beginning, we have followed a simple rule of not interfering with each other’s work. We are a family of four where each member will have a different opinion on a particular topic. So if there are any differences, we discuss amongst ourselves and weigh our decisions whether it will benefit our students, and faculty, as they are our top priority.

We have segregated our professional and personal life and do not believe in mixing

the two. Every weekend, we ensure to spend family quality time together. We may go to watch a movie or socialise together. By God’s grace we are all doing well. And we pray that everything should grow – our kids, business, and society.

MC: Yes, as my husband rightly said – as a family we will have difference of opinion. For instance: Take the courses that are offered in Harvard University; the most popular courses are based on family business courses. Even they know it is very difficult to work with differences, because it enters into your home environment where nobody is same, and it should not be the same. In our case, we have our children who have also joined our business. But we our lucky there isn’t any dispute or differences.

Each one of us is assigned with different responsibilities; and we see to it that we do not intervene in each other’s responsibilities. We offer suggestions or ideas; it is upon us whether to implement it in our work structure. We do not force our suggestions or ideas on each other.

We respect each other’s decisions. There is a Lakshmana Rekha between our professional and personal life; that is we talk business at office and personal matters at our home.

MMT


Landbridge to build platform for next-generation ship managementHaving a vast experience of 26

years as a Master Mariner of which 12 years have been ashore

in different roles – a risk assessor for Oil Majors; heading quality and safety department for a ship owner in Hong Kong; Capt Sanjeev Verma is now the Managing Director, Landbridge Ship Management (HK) Limited. To which he has had the privilege of starting the youngest ship management company – Landbridge, which was incorporated in 2018 with a unique team of industry experts to provide ship management and technical support for the fleet and serving business partners.

Capt Verma has completed his MBA from Asia’s prestigious Business School – HKUST School of Business. He is an active member with NI, ICS and various committees at Intertanko and HKSOA.

In an exclusive interaction with Jagdamba Pandey, Capt Verma shares his thoughts on the impact of COVID-19.

How is COVID-19 affecting maritime professionals working ashore?

When COVID-19 hit the world, no industry was spared or prepared.


It impacted not only maritime professionals ashore but the entire corporate sector. Given the lockdown situation in most places where we operate the shipping business, a new-normal must be embraced to ensure smooth operations. We learned how to work remotely while supporting our ship from shore, and a fast track full digitalization has happened across most of the companies. We, at Landbridbe Ship Management had embraced digitalization for all activities long before the pandemic occurred. We applied online systems for our operations. These digital solutions had supported us during this challenging period, which requires us to comply with strict health protocols, promotes physical distancing, and prevent individual contact.

Have you come across any positive stories coming out from COVID-19?

I think one of the most positive signs I see from the current pandemic situation forcing us to stay ashore where we are unable to visit our ships. Lesson learnt is that ships are still running safely and without any serious issues. In short, we have learnt that ships can function smoothly. The shore office is just a support platform, and batten to do a micro-management from shore won’t work. We need our seafarers to be adequately empowered to make an informed decision, which they are capable.

As MD of Landbridge Ship Management, what do you hope to accomplish within these changing times within the next two years?

The next few years will be challenging for our industry. The travel will be the most challenging part, whereas in our industry we need to push

our Governments to declare “seafarers as key workers,” create easier travel for them, put them as the front workforce to get vaccinated in every country, work upon uniform digitalized travel documents to let them move freely. The face of ship management will change in the coming time; we need to see what kind of shore experience we require, how do we embrace digitalization in our daily operation. And the biggest question, are we ready for such change to accept that seafarers will finally run ships. We need a shift in our mindset that we need to be transparent with all stakeholders to trust our seafarers’, our biggest asset.

With the vast changes in maritime technology, how is Landbridge using it to its advantage?

The ship design and equipment have not changed much. What has changed is that now we have information readily available at our fingertips. We are using the unified ERP solution, which is available, covering the entire ship and shore operation at our dashboard from any corner of the world. Our data management system is fully integrated with our cloud storage; using various interconnected applications of the Microsoft Suite, we can work together in one place, irrespective of our locations. In reality, we have just a few physical files in our office to store hard copies of a few agreements; the rest of the data are stored on the cloud and available from any computers or mobile phones, from any location. We also take care of cybersecurity; the applications are fully protected with multiple layers of security. We are also working with Lloyd’s Register and Nettitute for shipboard advanced cybersecurity protection to prepare IMO’s latest regulation

on cybersecurity. Our strength is system transparency and advanced use of digitalization.

How do you stay on track to achieve your long-term goals – personal and professional?

We need to keep our goal in sight; the ships are to be run by our seafarers; we remain facilitators to provide the best support. Our long-term goal is to set this platform to provide third-party management services to shipowners after building this platform to the most innovative, transparent, and safe standards. We strongly believe that “nothing is impossible” – when we started our platform with the first VLCC ship, we were clear in our vision that we need to build a platform for next-generation ship management. In the last 2 years, we worked upon our core by adding value-added services, which helped us spend wisely to improve safety with transparency.

What is your secret to building trusting relationships with stakeholders?

Be honest with your stakeholders, treat them as partners, and share your joyful moments with them. Alone we can’t create this company; we need people to support us; everyone working with us has contributed to our success. Be humble and treat your stakeholders at par; this is the key to success.

MMT


Nippon’s new nano-domain antifouling will further enhance propulsion and environmental efficiency of ships

Turkey’s Iskenderun Ship Management has provided a first reference

for Nippon Paint Marine’s new self-polishing antifouling paint FASTAR following an agreement to apply the novel coating to five bulk carriers scheduled to drydock in China this year.

The Panamax ships Ata-M and Toros-M will drydock at COSCO’s

Guangzhou shipyard in May and June respectively, with the 31,700dwt Selin-M, 32,949dwt Nihat-M, and the 50,212dwt Bozburun-M scheduled to follow in the second half of the year.

FASTAR XI, which incorporates Nippon’s hydro-gel technology, will be applied to all five vessels, replacing competitors’ schemes on two – Ata-M and Toros-M.

These hulls will be spot blasted and sealed with Nippon Paint Marine’s A/C II system prior to application.

In addition to antifouling, Nippon’s high-performance abrasion and corrosion resistant Neoguard Toughness will be applied to protect the cargo holds, decks, hatch covers and coamings of all five vessels.


“Nippon’s coatings expertise has consistently provided excellent, reliable results across our fleet,” said Iskenderun Fleet Manager Captain Cahit Kayabolen.

“The performance and fuel savings achieved with recent A-LF Sea applications gave us the confidence to choose FASTAR. We are sure this new nano-domain antifouling will further enhance the propulsion and environmental efficiency of these ships.”

FASTAR, developed to reduce the volume of paint required without detriment to performance, was officially introduced to the market in January this year.

It is designed to deliver an approximate 8% reduction in fuel consumption and CO2 from a coating that benefits from reduced film thickness and lower polishing rates.

Captain Baybora Yildirim, Managing Director, Nippon Paint Marine (Turkey), said: “We are delighted that our first

commercial reference for this ground-breaking technology is with a vessel operating under Iskenderun’s technical management.

“Iskenderun, a long-standing customer for Nippon Paint Marine, has a history of investing in solutions designed to improve environmental efficiency. The company selected FASTAR due to its ability to reduce emissions and deliver greater asset protection, even during lay-up periods.”

Niko Yamanoue, Deputy Managing Director, Nippon Paint Marine (Europe), added: “While the benefits of the FASTAR system vary depending on vessel size and operational profile FASTAR can reduce more than 50% of biocide elution than conventional SPCs.”

According to Yamanoue, application to more than twenty vessels during trials indicated the total minimum drying time can be reduced by up to 37%,

compared to other coating systems, depending on the actual ambient temperature during application.

“We expect this to result in significant operational savings for Iskenderun,” he said.

Ahmet Hamza, General Coordinator, Iskenderun Ship Management, said: “As a ship operator the lower volume of paint required was very appealing as it reduces drydock time. It also results in a substantial reduction of Volatile Organic Compound (VOC) emissions during application.”

All Nippon Paint Marine’s antifouling paints, including FASTAR, can be applied simply using standard application equipment. They can also be applied over existing antifouling paints, but like any marine coating, work best when the underwater area has been blasted.

MMT


Maximizing hull efficiency will be essential for decarbonisation

If shipping is to decarbonise its operations, maximizing hull efficiency will be essential,

and the only way to get there is through advanced engineering - particularly computational fluid dynamics (CFD).

Developed for aerospace applications and refined for use in naval architecture, advanced CFD modeling allows engineers to study the interactions of air and water with the exterior of

the vessel. It is part of the black magic behind modern racing yachts, which are as famous for eye-catching hull forms as they are for efficiency and speed. Done right, a CFD optimization process can improve the efficiency of a ship’s design by as much as five percent.

CFD is a complex art, and while many larger naval architecture and engineering firms have a team in-house, others outsource

it to a specialist with high-end methods. One specialized firm, Cape Horn Engineering, is applying CFD expertise honed in the yacht racing world to one of the most interesting questions in commercial shipping: how to put sails back on board merchant vessels.

Cape Horn is part of the development team for the Windship Technology project, which aims to build a cargo


vessel that uses solid wing sails for dramatic fuel savings. Existing wind-assisted propulsion systems like Flettner rotors and kite sails can reduce a vessel’s fuel consumption by about 10 percent, according to the partnership, but Windship’s three-masted rig is expected to achieve savings of 30 percent.

The solution, called Windship Auxiliary Sail Propulsion System (WASPS), uses three sets of solid wing sails to capture the wind’s force. The structures are all designed with composite construction for light weight and durability, using technology sourced from the wind industry. The rig is stowable for operations in port.

Cape Horn’s CFD business started at the America’s Cup, where solid wing sails have been honed to an art. The company is bringing this experience to bear on the design and evaluation of the new Windship, including

validating the technology’s potential. Since a vessel and its sails function together, it is helpful to have a unified model that evaluates both simultaneously, the firm says - and this is something that CFD techniques can do.

“Currently, wind propulsion systems and ship design are considered as two entities, hence they are designed independently. It is reasonable to believe that they should be designed as a whole from the earliest stage, due to the dependency of each aspect on the other,” said Cape Horn’s managing director, Rodrigo Azcueta.

CFD expertise is also useful when analyzing novel or complex structures, like floating offshore wind turbine platforms or SWATH vessel designs. As the cost of computing power comes down, the possibility for more detailed and comprehensive model simulation goes up, along

with certainty in the real-world performance the design will have when built. This has value for the vessel designer, the shipyard and the operator, according to Cape Horn.

As an example, the designer of a new SWATH hull vessel for offshore wind farm service needed to determine how best to design a stabilizer element to manage trim during transits. SWATH hulls tend to trim bow down when moving ahead at full speed, and the design specified a pair of stabilizers towards the bow in order to keep the vessel on an even keel. Complex CFD analysis made it possible to predict how the stabilizers would affect the vessel’s trim at each angle and speed, allowing the OEM to design custom controls for the stabilizers based on predicted performance - even before the vessel was built.

MMT


Over 65% of all ships contain asbestos

Despite the introduction ten years ago of regulations prohibiting the use of

asbestos materials onboard ships, a significant number of existing and newbuild vessels continue to operate systems and machinery containing the hazardous substance, according to maritime testing facility Maritec.


As informed, more than 55% of in-service vessels and 50% of all newbuilds were found to contain asbestos materials, Maritec, which carried out asbestos surveys for IMO compliance between 2011 and 2020, said.

“Although newbuild ships are delivered with an asbestos free declaration, in many cases asbestos has been found onboard during subsequent surveys, or port state inspections,” John Rendi, General Manager, Environmental Services, Maritec, noted.

“This is placing shipowners in a very difficult position. It can lead to fines and detentions along with the high cost associated with removal. More importantly, if seafarers and shipyard workers are unknowingly handling asbestos then they are at risk of developing a respiratory illness.”

Under SOLAS regulation II-1/3-5, asbestos is banned in all ships built after 2011. Ships built between 2002 and 2011 may have asbestos fitted but only in certain specified areas.

If during an IHM survey asbestos is found onboard a ship built after 2002 — except when permitted in certain machinery on ships built before 2011 –, then it needs to be removed within a period of three years and replaced with a non-asbestos

equivalent. This replacement must not be attempted by anyone other than trained and certified professionals, Maritec explained.

“Many owners have discovered they have asbestos onboard following IHM audits and are anxious to address the problem,” Alvin Lee, Maritec Operations Manager, said.

“I would say the majority of vessels in operation contain asbestos, normally through spare parts in the form of gaskets, pipe gaskets and valve packing. A ship could leave the yard free of asbestos but find itself taking spare parts from countries where either asbestos has not yet been banned or where enforcement is week. The problem is very much a supply chain issue,” he added.

Pipe flange gaskets, valve packing and components in auxiliary machinery equipment, such as pumps, compressors, condensers, and oil purifiers, accounted for more than 63% of all the asbestos found on the vessels surveyed.

Other equipment where asbestos is commonly found includes heat exchangers, economizers, boilers, and inert gas systems.

Different countries – different standards

Lee further said that differing asbestos restrictions from

country to country further compounds the problem.

For example, the permissible threshold value for asbestos in the United States is 1% while in France it is zero. In Singapore, it is 0.1%.

“Countries do not necessarily share the same standards or asbestos restrictions,” Lee continued.

“So, a gasket that is classified asbestos-free in Singapore or the US may not be considered asbestos-free in, say Australia, New Zealand or France, where the tolerance is higher when it comes to permissible value. It’s a big problem.”

Maritec, a CTI Group company, advises shipowners to undertake an initial ship inspection by a qualified professional to investigate the possible presence of asbestos-containing materials on board the ship and, if any are identified, to locate them and assess their condition.

The inspection should serve as the basis for establishing an effective maintenance and monitoring programme for dealing with the asbestos in the ship.

MMT


Oldendorff Carriers invest in new fleets

We are happy to report, that earlier this year OLDENDORFF

CARRIERS ordered two 61,300 Ultramax Newbuildings for delivery July 2022 and acquired two 93,000 tdw Post-panamaxes in separate transactions.

The 61,300 Ultramaxes will be delivered from Dalian Cosco Kawasaki Ship Engineering Co Ltd (DACKS) in July 2022 and are of the Kawasaki eco design, of which we had previously built 9 units at DACKS and sister yard NACKS until 2019. The vessels feature Masada / Mitsubishi cranes, bollards for the New Panama Canal, “Erma First” BWTS, a Hudong-MAN-B&W 6S50ME-B9.3 main engine and a large content of equipment imported from Japan, like Daihatsu auxiliary engines, Nakashima propeller, etc.

The two 93,000 tdw Post-panamaxes were built in 2012

in China and will be taken over in India in 1H April. They are equipped with a Korean-built Doosan-MAN-B&W 6S60MC and Doosan auxiliary engines. We already had the vessels on floating index charter for several years, during which they have shown excellent performance.

Our last two Newcastlemax newbuildings, MV “Heide Oldendorff” and “Hauke Oldendorff” will be delivered from Hantong Shipyard in August and October / November 2021. They will be used in our usual Capesize trades, before servicing a long term CoAs from 2023 onwards. That will complete the series of 18 “MARIC”-design Newcastlemaxes, built over 5 years at three different yards in China, of which we had sold on 4 units with long term charter back.

The first of two highly specialized Transloader

newbuildings, MV “Calypso” was delivered from Chengxi Shipyard on 15th January and sailed to North Vietnam, where she was commencing a 25 year transshipment CoA for a consortium of Marubeni and Kepco. Her sister vessel “Anna” will be commissioned in July.

Our Handysize bulker “Lily Oldendorff” (38,000 tdw, built 2017 at Avic Weihai) was sold to buyers in the United Arab Emirates and will deliver to them next month.

Adding these transaction and ships that were recently taken on period charter, Oldendorff Carriers’s fleet under operation will exceed 750 vessels.

MMT


Suez Canal races to clear backlog

The Suez Canal expects 140 ships to pass on Tuesday after the freeing of a container ship

stranded for nearly a week allowed it to reopen, but disruptions to global shipping and at ports could take months to resolve, experts warned.

The blockage threw global supply chains into disarray, threatening costly delays for firms already wrestling with COVID-19 restrictions, and nearly doubled rates for oil product tankers.

Shipping convoys through the canal resumed on Monday evening after tugs pulled the 400-metre-long (430-yard) Ever Given container carrier free from the spot where it became wedged amid high winds on March 23.

The Ever Given’s grounding across a southern section of the canal forced a halt to all traffic, leading to a build-up of 422 ships at either end of the canal and along its course.

Suez Canal Authority chairman Osama Rabie said 95 ships would pass by 1900 local time (1700 GMT)

on Tuesday and a further 45 by midnight, reasserting that he hoped a backlog caused by the blockage would be cleared in three to four days.

However, knock-on effects to global shipping and at ports could take much longer to resolve.

Though the build-up around the Suez Canal might be cleared in four to five days, it could take several months to deal with backlogs at ports, Jan Hoffmann, an UNCTAD expert on logistics, told a briefing.

Egyptian President Abdel Fattah al-Sisi said the Ever Given’s grounding had drawn attention to the importance of the waterway for global trade.

“We didn’t hope for something like this, but fate was doing its work. It showed and reaffirmed the reality and importance” of the canal, Sisi said as he greeted staff on a visit to the Suez Canal Authority in Ismailia.

“We want to reaffirm in a clear message to the world that

everything is back to the way it was,” he later told reporters from a platform on the canal, as container ships passed behind him.

Shipping group Maersk has said the knock-on disruptions to international shipping could take weeks or months to unravel.

Rabie has said the SCA will look at giving discounts to shippers affected by the stoppage.

“We need to study it in the right way because the number of ships is large, including ships that waited for one day, ships that waited for two days, and ships that waited for three days or four days — not all of them will take the same percentages,” he told a press conference late on Monday.

The Japanese owner of the Ever Given said it had not received any claims or lawsuits over the blockage.

MMT


IUMI renews focus on a sustainable, resilient and innovative future

Speaking at its Spring Meeting held online last week, Richard Turner,

President, International Union of Marine Insurance (IUMI) reinforced the association’s focus on facilitating a sustainable, resilient and innovative future for the marine insurance industry.

Richard Turner explains: “Environmental, Sustainability and Governance (ESG) issues are impacting all forms of business,

including marine insurance. We believe that our industry will be affected in three ways. Climate change and the related rise in sea levels will impact the frequency and severity of claims. The evolution of the transport assets we insure and changes to the cargoes we protect will also be significant and we are already seeing the impact as the industry adopts low sulphur fuels. And third is the sustainability of our clients and the industries in which they operate. It is


becoming increasingly clear that some industries will have the opportunity to grow and develop while others will shrink as the world moves to a more sustainable footing. As an industry, we need to recognise these changes and adapt.”

IUMI’s ongoing response is to continue its work in raising awareness of these issues to ensure the marine insurance sector is better prepared to respond adequately. More directly, the association is actively lobbying to raise relevant issues, monitor response and agitate for change. Many issues already on IUMI’s policy agenda have a sustainability impact including arctic sailing and low sulphur fuels. Additionally, IUMI

is coordinating responses from a wide range of stakeholders and projecting the view of marine insurance with a common voice.

Richard Turner continues. “Building on a comprehensive member survey conducted more than a year ago, we are continuing our advocacy activity on a number of key issues. This has led to the formation of a sub-committee of IUMI’s executive committee to focus specifically on ESG issues. In addition, we are proud to be a supporting institution of the UN’s Principles for Sustainable Insurance.”

ESG issues will be further reinforced at this year’s IUMI annual conference (staged virtually from Seoul, Korea

2-15 September 2021) where the common theme will be “Pathways to a sustainable, resilient and innovative future”.

Richard Turner says, “This year’s common theme is both optimistic and forward looking, and we aim to cover the opportunities and risks that marine insurance is likely to face in a continuing and post pandemic world. We will discuss the various options and pathways that marine insurance should pursue to ensure sustainability, both in terms of ESG issues but also to maintain marine underwriting as a healthy and resilient activity.”

MMT


Making smart ports a realityWhile the COVID-19

pandemic has had a devastating impact

on society and many national and local economies, it has – alongside the recent incident in the Suez Canal – also served to highlight the fundamental importance of the maritime industry to keep supply chains moving; providing the world with the critical medical supplies, food and consumer goods that are so important in our daily lives, particularly in the current climate.

It has also accelerated the importance and pace of digitalisation within shipping and maritime sector. Increasing

operational efficiencies, reducing fuel costs and associated emissions, improving sustainability; all in the name of optimising the performance of the vessel as it moves goods from A to B.

However, while shipping should be lauded for this progressive approach – particularly for a traditionally conservative industry when it comes to new technology uptake – there are inconsistencies within the supply chain, particularly in the critically important ‘first and last mile’, where the wider port environment is hosted.

We’ve all heard of the phrase ‘smart ports’, which has been

used as part of the common shipping vernacular for many years. However, the benefits of digitalisation and the ‘smart port’ status remain the preserve of only a few large ‘Tier 1’ ports that have the profile and resources. This digital divide has created a polarised landscape within the port sector, negatively impacting the entire ecosystem.

Indeed, many of the ‘Tier 2 and below’ ports still use manual processes or Excel spreadsheets to arrange and execute jobs and rely on personal interaction and paper-based transactions as the norm for exchanges. This inevitability leads to a range of short-term inefficiencies in


ordering, execution, and billing, as well as long-term sustainability, impacting profitability, as well as creating challenges in relation to remaining competitive. The current dynamic reflects the often-messy reality of port operations, and the awkward blend of high-tech digital and manual processes. This inevitably causes interoperability issues, where systems are not talking to each other properly, which is impeding effective execution.

Crucially, this dynamic makes the ‘last mile’ of a journey at sea a weak link in the global logistics chain, opening up risks of delays, late payments, increased fuel consumption and emissions, reduced revenues, and even safety concerns stemming from a lack of traceability for 80% of ports globally who are missing out on the benefits of digitalisation.

The ramifications and missed commercial and operational opportunities for ports are

significant. As an example, towage operators miss out on the chance to make substantial savings on their annual fuel costs by reducing the mileage of tugs, while also missing out on saving yearly maintenance costs and personnel costs on their towage vessels.

There is no legitimate reason why digitalisation seems to have only been reserved for the larger top-tier ports and established towage operators and the imbalance must be addressed.

The reality is that there are software and technologies that exist, like the Innovez One marineM platform, which can help ports increase the efficiency, sustainability and profitability of their operations and improve their commercial success and competitiveness, right now and for the future. Most importantly, the tangible benefits and return-on-investment are well proven.

Indeed, marineM has been used in some of Asia’s busiest

ports, such as Singapore and Tanjung Priok in Indonesia, for over a decade in some cases, enabling hundreds of thousands of dollars of savings per year. In Tanjung Priok, marineM has saved $155,000 in annual fuel costs by reducing mileage by 20% and $90,000 in annual maintenance costs and $150k per year in reduced incidents.

The 80% of ports that are missing out on digitalisation can make meaningful strides now to secure their short and long-term future. Clearly, the digitalisation of ports should not be for the few but for the many, and we must strive to create a fair and level playing field within the global ports’ marketplace.

This is not just for the benefit of the smaller ports – which play a crucial role in transporting the 90% of global trade chain – but for the future sustainability of the entire maritime industry.

MMT


Indian Major Ports freight traffic shows year-on-year increase for 5th consecutive month

Freight traffic handled by 12 major ports in the country contracted 4.6 percent year

on year to 672.61 million tonne in FY 2020-21 due to disruptions caused by the COVID-19 pandemic mainly in the first half of the year, data released on April 5 by the Indian Ports Association showed.

Ports’ freight traffic showed a year-on-year increase for the fifth consecutive month in March. Ports’ freight traffic boomed in March, rising 16.4 percent on year, the largest in at least a year.

Among ports, Deendayal port

at Kandla handled the highest traffic in 2020-21 at 117.56 million tonne, followed by Paradip port at 114.55 million tonne.

Petroleum, oil, and lubricants, which account for about a third of the total freight traffic at major ports, fell 12.8% on year to 206.75 million tonne in 2020-21. Container traffic, the next largest segment, declined 2.1 percent to 143.74 million tonne.

Thermal and coking coal traffic declined 15.4 percent and 5.2 percent, respectively, during the period. Iron ore freight traffic, on other hand, surged 29.1 percent

in 2020-21 to 71.03 million tonne.

Raw fertilizer traffic rose 14,7 percent on year to 7.57 million tonne, and finished fertilizer traffic rose 11.3 percent to 10.38 million tonne.

Traffic of other cargo also rose 2.4 percent on year to 72.83 million tonne in 2020-21, the government data showed.

MMT



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US$ 3 • Vol 10 • Edition 04 • April 2021 MATRIX

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