SPECIAL 149th AGM Team Piraeus: An exciting journey ahead Forward Thinking: The future of shipping - The Swedish Club
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No.2 | 2021 149th AGM SPECIAL Team Piraeus: An exciting journey ahead Forward Thinking: The future of shipping
Contents Leader Another virtual AGM ..............................................................................................................3 AGM2021 The Swedish Club’s 149th AGM ............................................................................................4 Are you brainfit? ......................................................................................................................8 Interview: Anders Hansen, Guest Speaker ..........................................................................12 P8 New Board members............................................................................................................13 Forward Thinking Charting the course to automation......................................................................................14 Norway’s Green Shipping Programme ................................................................................19 Preparing for the extraordinary - the Alfa Lift ....................................................................22 Loss Prevention P19 Safety scenario: Swept away by large wave ......................................................................26 P&I Going home - repatriating seafarers with mental health issues ......................................28 Legal Important clarification of COLREGS ....................................................................................32 Team Piraeus P28 An exciting journey ahead: Interview with Ludvig Nyhlén ..................................................34 Supporting the next generation: Interview with Hans Filipsson ........................................36 Club Information Successful rollout for first MIC Online ................................................................................38 Notice board..........................................................................................................................41 Staff news ............................................................................................................................41 Quiz........................................................................................................................................42 P38 The views contained within this publication are those of the respective authors and are not necessarily those of The Swedish Club. The Swedish Club Triton is published three times a year and distributed free of charge. The Swedish Club Triton is an editorially triton independent newsletter and opinions expressed by external contributors are not necessarily those of The Swedish Club. Articles herein are not intended to provide legal advice and the Club does not accept responsibility for errors or omissions or their consequences. For further information regarding any issue raised herein, please contact our head office in Gothenburg. No.2 | 2021 The Swedish Club Production Coordinator Layout Contact us: Susanne Blomstrand Elaborate Communications Ltd © 2021 The Swedish Club triton@swedishclub.com Articles or extracts may be quoted provided that PR Consultant Print www.swedishclub.com The Swedish Club is credited as the source. Elaborate Communications Ltd PR Offset, Molndal 2108pr1000
LEADER Another virtual AGM This year, the Swedish Club’s Annual are proud to have produced a series of It is time for changing the guard in the General Meeting - its 149th - was yet webinars covering key topics in claims Piraeus office. Having served as Area again digital. Last year was the first time and loss prevention during the spring. Manager for eight years, Hans Filipsson ever that the AGM was conducted by The annual Marine Insurance Course in has handed the reins to Ludvig Nyhlén, virtual means, and we believed it would Gothenburg, normally run for a whole recently from the Gothenburg office. be a one-off occasion. Little did we know week in May, this year delivered Ludvig has taken on the challenge of that circumstances would continue to prerecorded lectures in conjunction with servicing members in the region with prevent us holding a face to face event. digital live workshops. These events enthusiasm and commitment. I would The meeting was broadcast in real-time attracted a large audience with a like to thank Hans for his dedication and followed by many members and diversified outreach across countries and during these years and wish Ludvig good business partners - substantially more shipping segments. luck in the years to come. than last year. Of course there is nothing like personal Many interesting topics and articles are Preceding the corporate AGM, we contact, and we look forward to meeting featured in this edition of the Triton. welcomed a guest speaker, Anders face to face at events in the future, whilst There are never two Tritons alike. I hope Hansen, a respected medical practitioner, continuing our increasingly popular you enjoy the reading and please stay author and TV host who explained how digital programme. safe. we could be ‘brainfit’. With little effort, we can develop our brain capability, memory Earlier this year the Club celebrated ten and decision making. Physical activity on years of active underwriting from our a regular basis is the trick. The activity office in Norway. The story began when level required to achieve the objective is the Club made the decision to participate no more than we can all easily fit into our in the ever-expanding offshore energy day-to-day life. Worthwhile considering. industry, in which further continuity underwriting was needed. Today, the The Club is in constant motion, focus has widened to all Marine and P&I Lars Rhodin responding to insurance needs, claims products backed up by the Club’s all-in- Managing Director and providing loss prevention advice. We one service. Triton 2 2021 \ 3
AGM2021 The Swedish Club’s 149th AGM For the second time in its history the broadcast live to Club members from Introducing the keynote speaker Lars Club’s AGM was run virtually from the Clarion Hotel Post, ably moderated Rhodin emphasised that The Swedish Gothenburg, with members and by Åsa Lindell. Club is all about adding value. “We add business partners joining the event value in the way we handle claims, in remotely. This closes a chapter for The Opening the event Lennart shared his the way we support our members in Swedish Club, as plans are already fixed wish that the Club would soon be able minimising claims, and in our role as for the 2022 AGM, which will take place to resume business as usual at the industry advisor in insurance related in Gothenburg and will be a celebration 2022 AGM: “Let’s hope that next year matters,” he said. “We aim to follow this of the Club’s 150th Anniversary. life is back to normal and that we can approach and, as always, go beyond the have the normal arrangements again,” AGM with a small programme which will This year, the Club’s Chairman Lennart he said. “Next year’s AGM will be special still be entertaining, inspirational and Simonsson; Secretary of the AGM Per for all of us, as we will be celebrating thought provoking.” Settergren; and Managing Director Lars the fact that The Swedish Club will have Rhodin were able to share the stage and been in business for 150 years.” Managing Director’s Report Opening with the Oscar Wilde Our unsung heroes updated solvency statement within 24 quote, ’Experience is one thing you hours. This needed to contain our can’t get for nothing’, Lars Rhodin Rhodin paid tribute to the seafarers and assessment on the likely exposure to the spoke about the importance of shipping companies that kept the world Club of COVID-19 and a worst-case moving during the pandemic. “They faced scenario. We demonstrated resilience and experience, and that whether it travel bans, restrictions, and quarantine we had a strong capital buffer, and of requires effort, or costs money, it requirements” he said. “They have not been course our business development will always be needed. regarded as essential workers. They have continued.” stayed on board away from their families Recognising a black swan just to keep the world moving. They are our At the end of the year the Club was happy unsung heroes. to report a profit of 3 million USD. However “Marine underwriters are trained to expect during the course of the year the the unexpected, and there is a high degree Volatility, resilience and aggregated return in investments showed a of statistical certainty that the unexpected business development swing of 50 million. “Now we’re talking will actually happen,” he said. “But we don’t about volatility,” remarked Rhodin. know exactly when and we don’t know for “In underwriting we had many pool claims whom. The black swan is something and also retained claims. On the For 2020 the underwriting result, a completely different. It's not known, and investment side we have now almost combined ratio of 123%, was the highest therefore cannot be expected. The forgotten what happened in March,” he the Club has seen in 20 years. Lars pandemic is not a black swan. It was explained. “At the end of the first quarter explained that both pool claims and known but it was not expected. We know equity markets were in freefall, and at that retained claims made a significant about pandemics, but we choose to forget point the Swedish regulator approached contribution. On the plus side however, the them.” every insurer in Sweden demanding an Club’s free reserves are standing at an Triton 2 2021 \ 5
AGM2021 all-time high level, with a return on the Club’s Pool claims - In 2020 the Golden Ray, Sanctions - The Club spends a great deal own capital of 5% over five years. which capsized off the coast of Georgia, of time making sure that the Club and the USA the previous year, became the fleet that it insures is on the right side of Stability second largest P&I claim in history, sanctions, explained Lars. “We get costing just short of 800 million USD.. messages every day highlighting vessels At the end of the year the Club’s ratings “These costs are very much driven by entering areas which are considered high were affirmed as A- with a stable outlook, where the casualty occurs, says Rhodin.” risk for sanctions, and it is a very which was viewed as extremely positive complicated area for all of us.” considering that ratings agencies are Loss of containers - “Within four months, currently taking a negative view on the from November 2020 to February 2021, The International Group industry due to underwriting and pool 3,000 containers were lost overboard. The claims. The Club also continues to show a One Apus lost almost 2,000 containers – Hailing the International Group’s pooling, strong combined ratio average in the how can that happen?” asked Lars Hydra and reinsurance systems, Lars industry, in the seven years 2013 to 2019. Rhodin. “We have new ships, high Rhodin described the benefits of being container stacks and we hear about part of the group, with a stronger voice, Key issues in 2020 parametric rolling.” collaboration and sharing of data. Green issues - Before the pandemic fully Fines - Rhodin raised the question as to “It’s a very robust organisation that can broke, the sulphur cap was the hot topic. whether fines should be insurable. He stand the shock of the kind of major “It was all about availability, quality and illustrated the point with the MSC claims we have seen,” he said. “But the the price differential between low sulphur Gayenne, where in 2019 customs officers main issue is that the market premium fuels and HSFOs,” said Lars. “From the discovered a record quantity of cocaine - isn’t really there to cover the sort of point of view of claims, the issue had very 20 tonnes, and the operator was forced to exposure that we have seen for the last little effect. However, the issues of climate post 50 million USD to obtain release. three years - a record level. You will see and emissions remain very much alive.” corrections going forward.” The Club “We add value in the way we handle claims, in the way we support our members in “There are now more than 5,000 vessels tracked through the Club’s Trade Enabling minimising claims, and in our role as industry Loss Prevention (TELP) system,” said Lars advisor in insurance related matters.” Rhodin. “TELP now provides alerts on claims hotspots and piracy hotspots, as 6 / Triton 2 2021
AGM2021 Combined Ratio Investment Results 2020 7 year averages, 2013-2019 Aggregated return USD million 140% 35 128% 128% 30.0 30 120% 115% 113% 25 109% 110% 110% 112% 106% 108% 98% 100% 101% 102% 20 100% 15 80% 10 USD M 5 60% 0 1.2 -5 40% -10 20% -15 -20 -20.4 0% -25 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC The Swedish Club Market Average Source: Arthur J Gallagher, Marine P&I Pre-Renewal Review 2020 and TSC’s accounts “The pandemic is not a black swan. It was known but it was not expected. We know about pandemics, but we choose to forget them.” well as Bunker Alerts identifying potential issues with fuel, and Correspondents Advice giving up to date local information. Finally, Lars introduced Safire – a new long “We are here to serve the needs of More than 50% of members are now term data project designed to support enrolled, and I urge all members to take more efficient and informed decision shipowners.” advantage of the scheme which is unique making on the underwriting side and to the Club and free to members.” analyse claims more effectively. After discussing the Club’s commitment Outlook to sustainability Rhodin then talked about seamless product range and unrivalled the Club’s plans for Asia. “The Club is “There is no finish so love the journey,” casualty response. We thank you for the expanding,” he said. “We are seeing a lot quoted Lars. “Going into our 150th year we opportunity to serve and look forward to of growth in our Asian business have a robust planning process with shared meeting the challenges ahead together.” generated through the Hong Kong office. strategic and operational priorities. But we Now is the time to complement that must never forget why we are in business, Closing the meeting Club Chairman office with one in Singapore. We are and that is the great importance of the Lennart Simonsson expressed the hope currently seeking a licence from the Board. It reminds us of the ‘why’ – we are that circumstances would allow members authorities and our expectation is to be here to serve the needs of shipowners. to be welcomed in person at the 150th operational on 1 Jan 2022. Asia is a very AGM to be held in Gothenburg. “Looking dynamic region and we want to be part of “We are a quality underwriter with a strong forward to seeing you face to face soon,” that development.” capital position; stable performance; a he emphasised. Triton 2 2021 \ 7
Are you AGM2021 brainfit? Get moving – it will make you smarter! Psychiatrist, author and motivational speaker Anders Hansen had a simple message when addressing the Club’s AGM: Physical activity not only makes us feel better, but it improves our cognitive functions. It even seems to improve our intelligence. “This is not something I made up myself 45 minutes. The other half carried out Happiness Pill’ which explains in detail how but the result of numerous studies, many stretching exercises for the same amount exercise can benefit the brain. “We all know involving MRI scans,” he said. “The science of time. MRI scans after a year showed we feel better if we exercise,” he said. has shown how extremely important it is that the ‘stretching’ group’s hippocampus “There are a number of neurotransmitters for the brain that we move.” had shrunk by an average 1.4%. The that affect our mood, the most important walking/moving group’s hippocampus had being serotonin, which connects to the The problem with memory actually grown an average of 2%. feeling of harmony and inner strength – having too little is connected to anxiety and We even have the chance to improve our “You might think ‘I don’t care about this obsessiveness; norepinephrine, which memory. “The hippocampus works as the stuff - it doesn’t affect how I function’. But it keeps us alert; and dopamine, which GPS of the brain and is extremely actually does,” explained Hansen. motivates us to do things. important for memory. It reaches peak size when you are 25 to 30 and thereafter it The average growth was 2% – the Antidepressant drugs increase the level of starts to shrink, by about 1% a year. That hippocampus grew by 1% in some these neurotransmitters in the brain, he contributes to the fact that memory is individuals in the walking group but by 3% said. “But If I go for a run, I also increase unfortunately reduced as we get older.” in others. This 3% group also improved the level of these neurotransmitters in the their memory the most – and they were the brain – all three. And that, together with Form new brain cells ones who had improved their endorphins, creates this feeling of cardiovascular fitness the greatest. wellbeing.” It has been known for years that shrinkage of the hippocampus can be increased – by “So, if you are in your 50s, can you run your In short, exercise can have the same effect alcohol or drug use, for example, but to way back to your 25-year-old as antidepressant drugs when it comes to slow down shrinkage was thought to be hippocampus? The answer is that no one mild depression, said Hansen. “I have a lot impossible. Not any more. Researchers knows,” says Hansen. “We do not know if of patients who ask what actually works found that laboratory mice that ran on a this continues for ever – I don’t think it will, apart from medicine. I always say that wheel actually formed new brain cells in it is very unrealistically biologically psychotherapy works, cognitive the hippocampus and improved their speaking. It probably levels off at some behavioural therapy (CBT) works, and memory, when compared to mice who point.” exercise works. I don’t want to downplay lazed about. these drugs –they can be vital. But there is Exercise and feel better an alternative. It is not just either/or – a They then carried out the same test on 100 combination is often best.” humans. Half carried out exercise that Hansen has written books about how the raised their pulse, three times a week, for brain functions, including ‘The Real Triton 2 2021 \ 9
AGM2021 Dealing with stress In other words, regular exercise teaches the Hardwired to eat body not to react too strongly to stress, And there is more: Hansen explained the regardless of the cause, he said. There is a catch (there always is!). mechanics of stress and the way in which We are lazy by nature, we like cortisol is released, making your heart beat He threw out some more impressive facts eating and we should not feel stronger and faster, mobilising energy for and figures. Children aged ten were given a guilty about that, he said. That’s fight or flight. maths test to do under pressure, in a study because calories were really hard to which also involved activity trackers. The come by for our ancestors, with starvation a “When our ancestors were facing a lion, more steps the child took, the better they huge threat. We are hardwired to eat when they had to make a decision: 'Fight or run' – could handle the stress. “Some did not food is there and to save our energy. Every there was no time to produce an Excel increase cortisol levels at all – and these weight loss is interpreted by the body as sheet with pros and cons, otherwise they were the ones that did the most steps.” threatened starvation, making us want to would probably be out of the gene pool. eat more. Now we don’t face these immediate life- Mazimising your IQ potential threatening situations, but we experience “Eating every calorie you can find has the same stress – often for months or Pre-military service tests of 18-year-old worked well for most of our history – but years. That seems to be dangerous to males in Sweden showed that the that’s a terrible idea in MacDonald’s!” some people, and it is no coincidence that individuals with better cardiovascular long-term stress causes depression.” fitness also had a higher IQ – even when comparing identical twins. The answer again: exercise. “What happens if I go for a run or a swim? The Disappointingly, that does not mean cortisol levels in my bloodstream will everyone can run until they become increase. But when I have finished, then the Einstein, said Hansen. “But everyone is born cortisol levels drop and fall to a lower level with an IQ potential and you push yourself than before exercise. Then, when I get down from that potential if you sit down too stressed for other reasons, I do not much. You could do better.” respond with such a high increase in cortisol if I am in good shape.” “Everyone is born with an IQ potential and you push yourself down from that potential if you sit down too much. You could do better.” 10 / Triton 2 2021
AGM2021 Evolved for exercise “But please do something. Move in some way. It is about having a body and In fact, he said, the benefits of exercise brain that functions as well as possible. have always been known. Hippocrates Ideally you should try to raise your pulse said ‘Walking is Man’s best medicine’ but three times a week, 45 minutes every the advance of modern medicine has time. It doesn’t have to be going to the pushed that knowledge into the gym or running a marathon. It might be background. walking or taking your bike to work, taking the stairs instead of the elevator. “We humans have used our smart We are evolved for exercise and we will brains to build exercise out of our lives. function and feel better if we just do that But we have lost something important little bit more.” along the way.” Forget the marathons, the sporty lifestyles, the health magazines, he said. “Ideally you should try to raise your pulse three times a week, 45 minutes every time. It doesn’t have to be going to the gym or running a marathon. It might be walking or taking your bike to work, taking the stairs instead of the elevator.” Triton 2 2021 \ 11
AGM2021 Connecting brain & body Interview with AGM keynote speaker Anders Hansen. Born in Stockholm in 1974, Hansen He doesn’t like the ‘just do it’ slogan – even “We are a biological studied economics before switching to though he runs and likes to play football species; we medicine. He started writing for a and tennis, he knows it isn’t that easy. newspaper in order to finance his way No more excuses evolved under through medical school and found he enjoyed presenting science to people in a conditions that way they could understand. He trained as “I am a very good negotiator when it a psychiatrist and after many discussions comes to negotiating my way out of are very different with a colleague about the effect of exercise, he says. “ I am an expert in exercise, wrote his first book, ‘Prescription finding excuses – my leg, my ankle, my to the ones we for Health’. knee, it’s raining. I do run – I don’t like it, but I do it anyway. I have periods when I feel live in today. ” “The book did well in Sweden and had very down and then I realise that I haven’t been positive feedback,” he says. “I then decided running for two weeks. But if I make it to write about the effects of exercise just social, I don’t skip it. You don’t want to be on the brain.” the person who always makes the call to cancel. That is a tactic I would Positive emotions ‘The Real Happiness Pill’ was published recommend.” five years ago, and Hansen followed up His next book will focus on emotions and with a radio programme and TV series It is most important to find an activity that how they are constructed, and what we about the topic. He describes himself as a you can and want to do, he says, and he is can do about depression and anxiety. “We ‘science communicator’, apart from his job also dismissive of the ‘elite’ element in need a deeper understanding of how we as a psychiatrist – he spends half of his sport. “It is putting many people off. We evolved. We have forgotten about our time in clinical work. make it into crazy stuff like a 40-year-old biology. We are a biological species; we man doing the Ironman.” evolved under conditions that are very Exercise and not competition different to the ones we live in today. There Surely most of us know by now that are certain things that send signals to the Hansen is passionate about the benefits of exercise is important for health and brain that it is safe, and then we feel good. moving, but wants to move away from reducing physical illness – but, he says, fixation on sportiness, performance and that knowledge doesn’t necessarily “We have divided the brain and body too competition. motivate us. It can feel too remote. much in our thinking, when they are closely “However, the cognitive effects are here connected, he warns. “Our experience of “You have to build exercise into your life – and now – that is what it is important to wellbeing is created in an organ – the walk to work, cycle to work, walk up the emphasise. Exercise can deliver a signals from our brain and body are very stairs,” he says. “I know how hard it is – substantial creativity boost – if that could closely integrated and extremely important and it should be hard, because we are lazy be shown for a medicine, it would be on for our emotions, but that is something we by nature. That is not a flaw in us, it is a everybody’s shelves by now.” have forgotten about.” feature in us.” 12 / Triton 2 2021
The Club welcomes AGM2021 two new Board members Interview with Yu Tao Deputy Managing Director, Chief Legal Adviser and Board Secretary of COSCO Shipping Lines regulatory framework and risk relationship with the Club,” said Ms Yu. monitoring are my priorities,” she says. “Since then, many more ships have been entered with the Club for P&I insurance What led her into the shipping industry? from COSCO Shipping Lines, including “The maritime industry has a long the former COSCO Container Lines and history and the shipping network has China Shipping Container Lines. A made global destinations closer,” she number of companies in the COSCO says. “I was deeply aware that the Shipping Group have also had a development of the shipping industry business relationship with the Club for a A senior economist, Ms Yu studied was the key to our national policy of considerable period of time.” international transportation for her opening-up at that time, and so I chose degree and holds an MBA from Peking this career with no hesitation. Ms Yu says she was very pleased to be University. She joined the COSCO group asked to join the board of The Swedish in 2004 and served as Deputy General “I love the vision of shipping – making Club. “COSCO has worked closely with Manager of COSCO Logistics and then the flow of goods smooth and global, the Club for many years and values the Deputy Managing Director of COSCO just like the slogan of COSCO Shipping relationship it has built up with such a Container Lines before being appointed Lines – ‘We Deliver Value’.” friendly and professional organisation. to her current roles. We do feel very much part of The COSCO Container Lines first entered two Swedish Club family,” she says. “As Deputy Managing Director, Board vessels with The Swedish Club for P&I Secretary and Chief Legal Counsel, the cover in 1994. “That was the start of our The Swedish Club has also appointed Andrew Hampson, Chief Executive Officer, Tufton Investment Management Limited, to the Board, and we will feature an in depth inter- view with Andrew in the next issue of Triton. Andrew Hampson finance house, where he primarily focused on providing debt related Chief Executive Officer, Tufton advisory and arranging services to a Investment Management Limited variety of worldwide shipping companies and debt providers. Andrew Hampson initially joined Tufton Andrew began his career with Bank of in 2001 to assist in the development of America in 1978, where he graduated its corporate finance business and through the bank’s internal MBA level subsequently to build up Tufton’s lending program. In addition to his role position as a dedicated fund manager in as Chief Executive Officer, Andrew is a the shipping asset space. Before joining member of the investment and advisory the company he worked at Theisen committees for various of Tufton’s asset Securities, a private maritime corporate backed funds. Triton 2 2021 \ 13
FORWARD THINKING “There is a great deal happening in Norway on the green agenda today. Its unique geography and concentration of forward thinking organisations make it a hub for innovative and cutting edge developments in the maritime sector. We take this opportunity to give you a roundup of the latest Charting initiatives from our members and business colleagues in the region.” Tore Forsmo, Area Manager, Team Norway the course to automation Interview with An-Magritt Tinlund Ryste, Product Director Next Generation Shipping, Kongsberg Maritime and Øystein Engelhardtsen, Group Leader Ship Autonomy, DNV 14 / Triton 2 2021
STRAP Discussions about autonomous vessels frequently seem to take an in congested areas with houses, schools, ‘all or nothing’ approach. Are we really poised for an abrupt change etc., while the ocean was just next door to their production site so they made the from fully crewed vessels one day to something like the Mary decision to make more use of it. Celeste crossing the oceans the next? Hardly. The advance of autonomy, and the potential for unmanned vessels, is an incredibly The 79.5 metre, 120 TEU YARA Birkeland, dynamic area but it is also a story of steady progress – evolution due start operation with reduced crew, and on schedule to be unmanned by the rather than revolution. end of 2024, will be the world’s first fully electric and autonomous container ship. It will sail within 12 nautical miles of the Norway is leading the way in developing At that point, Sea Launch, the remotely coast, between three ports in southern the technology around autonomous operated platform for launching rockets Norway. vessels and/or unmanned vessels. This into space, provided a testbed for effort is supported by close collaboration Kongsberg’s remote control technology – Kongsberg is responsible for development with government, the maritime authority, pairing this with advancements in the and delivery of the enabling technologies the coastal administration and class military sector contributed to great strides for the vessel, including the sensors and societies says naval architect An-Magritt for civilian application, says Ryste. integration required for remote and Tinlund Ryste. As Director of Next autonomous ship operations, as well as the Generation Shipping in Kongsberg “However, since 2017 we have seen a real electric drive, battery and propulsion Maritime, she heads up the company’s shift in the remote control and autonomous control systems. autonomy initiative focusing on vessels area, with much more interest in the subject to class and statutory potential for commercial vessels, and that Electric barges requirements. side has been racing ahead. We are using a lot of our knowledge, confidence and Kongsberg Maritime is also working with A gradual evolution proven systems involving coastal cargo Norwegian grocery distributor ASKO, barges and vessels, towage and unmanned developing two unmanned electric barges Kongsberg’s ‘journey’ in this regard began surface vessels for patrolling, surveillance to cross Oslo Fjord, carrying electric as far back as the 1960s and 70s with a and maintenance in wind farms, for grocery supply trucks between a gradual automation of onboard systems. example.” warehouse on one side and a distribution She points out: “It is not like the industry is site on the other. The vessels will be going straight from completely manual and Logistics as the driver equipped with the technology required for very conventional to full automation. zero emission and unmanned operations However, in terms of remote operations Kongsberg is focusing on autonomous by Kongsberg Maritime, while Massterly and unmanned vessels, this work started in shipping through Massterly, a joint venture will ensure ship management and safe the middle of the 1990s, when we were with Wilhelmsen. Ryste says much of the operations from its shore-based Remote piggybacking on previous experience with drive for autonomous technology isn’t Operations Centre. The vessels will operate dynamic positioning and satellite coming from ‘traditional’ shipowners. “In with a reduced crew at first, before moving communication, bringing that together with the maritime sector, some of the first towards unmanned voyages. remote operations.” movers in remote and autonomous were more the companies that had a desire to “ASKO has sites on either side of the fjord reduce the CO2 footprint of their logistics and relies quite heavily on the Oslo Fjord chains.” tunnel. However, the tunnel is often closed at night and disrupts their logistics, so they The YARA Birkeland were looking at alternatives to the very long road diversion,” says Ryste. Fertiliser company YARA is a prime example. They recognised that they had “Neither YARA nor ASKO were traditionally many lorries using small roads in Norway involved in maritime at all; in both cases, it “Much of the drive for autonomous technology isn’t coming from ‘traditional’ shipowners.” Triton 2 2021 \ 15
FORWARD THINKING was ‘why not transfer the goods from road “Gradually we have seen more focus on to water and have more control of the this topic and that is not detached from logistics chain?” what is happening elsewhere in the industry. It is very much related to the A holistic approach general trends towards digitalisation, connectivity and decarbonisation. It is also DNV, the Norwegian classification society, related to developments within safety started specific research into ship assurance, such as remote inspections and autonomy and remote control nearly ten run time assurance.” years ago. "As a class society, it is not DNV's role to develop the technology in Engelhardtsen describes autonomous these systems. Instead, we focus on what shipping as very multidisciplinary, with a will be required for such systems to particular issue being the human-machine operate safely and how this can be verified interaction. "Although certain vessels are and documented. intended to be operated fully unmanned, some human involvement will be required "DNV started looking at the technologies for all of these systems, and there will be a required for such operations and their combination of operators and systems that potential impact on risk and safety, and we have to work together, either from a control quickly realised that assuring safety for centre ashore or on board the vessel. The such systems is a complex task as it can challenges related to this should not be affect safety barriers on many different underestimated." ship functions," says senior researcher Øystein Engelhardtsen, based in Oslo. Regulations The ReVolt concept ship Regulations play an important role in this because they determine whether you are DNV has developed the ReVolt concept able to operate or not, he says. "Operating ship, which although never intended for an unmanned vessel within one country's production, demonstrates to the industry national waters is more feasible in the what is possible if you take things to the short term than crossing a range of extreme. At the time it was introduced international waters. At that point you need autonomous and unmanned shipping was regulations to be developed and ratified at not high on the agenda, and so it gained a IMO level and this is expected to take many Øystein Engelhardtsen, Group Leader great deal of attention. years to complete." Ship Autonomy, DNV 16 / Triton 2 2021
FORWARD THINKING “International regulations, data connectivity and the question of commercial viability remain big challenges in the journey to autonomous/unmanned vessels.” This explains why the first major An-Magritt Tinlund Ryste agrees. Ryste. “You could rely on the smart vessel demonstrators of unmanned vessels will “International regulations, data connectivity being able to handle any kind of situation – be in national waters, he says. “We still and the question of commercial viability but what if something should go wrong expect to see examples of autonomous remain big challenges in the journey to mid-Atlantic? You need continuous and remotely operated systems in autonomous/unmanned vessels. connectivity to have continuous control, international waters that can operate and that can be costly. However, we expect within current regulations; where you still “You can prove that the technology is to see many more actors and tremendous have crew present, but they may be capable and carry out a demonstration of developments in the next ten years to assisted in or relieved of some of their that, but the international regulatory provide satellites and communications, tasks. This can be seen as a landscape is not really ready to cope until and prices will drop.” continuation of a trend that has been we have regulations that are internationally going on for centuries, where technology ratified,” she says. “So at present we are The Bastø 6 has taken over more and more functions relying on agreements and approvals on board.” within national waters, with individual flag DNV’s SIMAROS project (Safe states and classification societies. Implementation of Autonomous and Having said that, much of the current focus Technically it is easier for an unmanned Remotely Operated functions on Ships) is of DNV's research is related to vessel to cross the open ocean than aiming to develop tools, methods, rules and implementing automated functions to navigate in busy harbour waters – but the regulations to ensure a safe autonomous support navigators in their work – for regulatory issues mean it is not currently ferry crossing. example, to detect dangers – rather than possible. cutting crew numbers. The same The developed system has been technologies that would be considered for Connectivity implemented and demonstrated on the unmanned vessels can be useful also on Bastø Fosen ferry Bastø 6, operating on the fully manned vessels, he says. “The cost of connectivity links is also an Horten-Moss service. Combining various issue when crossing the ocean,” explains inputs, including camera, radar and AIS, the Triton 2 2021 \ 17
FORWARD THINKING case throughout history. “Where you can reduce the complexity, for example one vessel carrying one specific cargo from one port to another in a very limited area, that is where we expect it can be possible to operate unmanned.” Race to market Ryste says she has seen a great shift during the four years that her work has been focused on remote control and automation. “It started with one or two projects. Now we see projects in every maritime company, a lot of government funding going into this in different regions and multiple projects. There is a race to get to the market with these kinds of solutions,” she says. “Ultimately, it isn’t so much about testing the building blocks but about making it More automation commercially available and profitable for ship forms its own situational awareness, operators to take into daily operations. But on board will presented to navigators on the bridge. The overall, I don’t foresee that we will have a relieve the solution automates the AI rationalisation, massive amount of unmanned vessels. It and response to, radar and camera will be a more automated approach, stresses and capabilities for positioning and collision leading to a reduced crew, better rotation avoidance, including in reduced visibility for crew, more focus on safe navigation strains on crew conditions. The ferry is using new optical and support going in and out of critical and reduce sensors for situational awareness areas, and more shore-based assistance developed from Kongsberg Maritime’s than we have had before. More automation accidents.” advanced systems, while continuing to on board will relieve the stresses and carry a full complement of crew. strains on crew and reduce accidents.” Other developments being progressed by A more integrated future Kongsberg/Massterly include the attention has increased to using the Seashuttle project with Samskip, which is technology to support regular manned What would she predict for 20 years’ aiming to bring to market emissions-free, operations. We are starting to see a lot of hence? “I think environmental requirements autonomous container ships that also the benefits that can bring, such as will drive new vessel designs and new operate at a profit. avoiding collisions with the pier, increasing types of vessels. We will be building a lot safety and allowing for more optimised more smartness into vessels. Some Inadequate safety framework operations,” adds Engelhardtsen. segments will be more automated than others.” The systems required to enable Automated but not unmanned autonomous functionality of vessels are Autonomy is not really the ‘end goal’, she much more complex than we have DNV envisages autonomous functions that insists – just the means to achieve traditionally seen on ships, says can operate independently but require something else. Engelhardtsen. “It is the opinion of DNV humans on board to monitor and intervene that the industry lacks tools and processes if necessary. “Automation of navigational, “We will start looking at vessels in another for safety assurance that are fully capable cargo handling and engineering functions light, not just as workhorses but as an of capturing the complexity in these could deliver a lot of small improvements integrated part of a much larger logistical systems meaning that new tools and that together make a significant impact. chain. There will be more collaboration and processes must be developed to test and Ship autonomy and remote control is much sharing of data. We will start optimising in assure these systems.” more than just unmanned ships, and the a much broader scope than we do today. major industry impact is likely to be related We will take a holistic view, perhaps with Trickledown effect to manned ships in the years to come.” ‘highways’ on the water and smaller vessels going into port. And everything will While much recent industry focus has been Unmanned vessels will happen, he says, be a lot more connected.” on fully unmanned ships, “we have the but it will be a gradual rollout, with a steady impression that the focus has shifted – decrease of crew on board as has been the 18 / Triton 2 2021
Norway’s FORWARD THINKING Green Shipping Programme Interview with Anders in close cooperation with the business sector. It will be vital to build on this Mikkelsen, Regional constructive cooperation to speed up the Business Development pace of change in the maritime sector in Manager, DNV and the period up to 2030.” Chalotte Bjørn, Head The Green Shipping of Communications Programme North Europe, DNV, Maritime Among the initiatives, the Green Shipping Programme is a private-public partnership There are no quick fixes when it comes to zero- that was established in 2015 on the initiative of DNV GL, since renamed DNV. emission vessels – but innovative projects can certainly advance at speed when all sides work The Action Plan states: ‘The vision for the programme is to establish the world’s most together. That very much sums up Norway’s position efficient and environmentally friendly in the development of zero-emission vessels. coastal shipping fleet. The programme’s studies and pilot projects are helping to identify and develop zero- and low- “Norway is leading the way in this area. It is class rules on everything from LNG to emission solutions that can be put into a complete shipping cluster with investors, batteries and hybrid technologies, and it practice rapidly.’ funding mechanisms and policymakers – has been the lead on a number of green and that make this possible,” says Anders shipping projects in partnership with The Green Shipping Programme is divided Mikkelsen, Regional Business Development others. into four phases. The potential for battery Manager for maritime in North Europe at and gas-based maritime transport in DNV. “You also need to have rules and Action Plan for Green Shipping Norway was assessed in the first phase, guidance in place regarding the application starting 2015, and business cases were of these new technologies, and DNV has The Norwegian government set out its developed in phase two, starting in 2016. been at the forefront of that.” commitments in a comprehensive Action Plan for Green Shipping published in 2019. The third phase, which started in 2018, is The classification society has been Within this, it stated: “The Government’s focusing on eliminating barriers to zero- working closely with industry to establish green shipping policy has been developed and low-emission solutions in shipping, Triton 2 2021 \ 19
FORWARD THINKING “The Green Shipping Programme is and the development of detailed very special to Norway – in six to seven implementation plans. In the fourth phase, up to 2030, stakeholders will seek to scale up years it has generated tremendous the solutions that have been developed through pilot projects. innovation and commercial capabilities Mikkelsen says DNV is involved in a number in shipping in Norway, and it is also of zero-emission pilot projects linked to the exporting great ideas.” Green Shipping Programme, and is also taking the lead in other joint industry projects that are outside the programme. “The Green Shipping Programme is very special to Norway – in six to seven years it has generated tremendous innovation and commercial capabilities in shipping in Norway, and it is also exporting great ideas.” The programme is all about running pilot projects focusing on the ‘green shift’ and decarbonisation, he says. Initially it has mainly looked at coastal shipping, but now it is also expanding to the deep sea sector. “It is a really fascinating programme, involving shipping companies, designers, manufacturers, shipyards, operators and landside infrastructure. And it is an integral part of what we do.” Pilot projects Among the pilot projects there is huge variety – and there are numerous partners. For example, in the Logistics 2030 pilot project, which seeks to reduce truck transport by developing a sea-based logistics structure between Norway and Europe, the pilot owner is the grocery group ASKO, and the participants have been Flowchange, Seatrans, DFDS, Grieg Star, Hydro, Norwegian Ports, the ports of Stavanger, Oslo and Bergen, the Norwegian Ministry of Climate and Environment, the city councils of Oslo and Flora, the University of South-Eastern Norway, SINTEF, Menon, the Norwegian Coastal Administration, the Norwegian Maritime Authority, Enova and DNV. Other projects have been built around the shipment of aggregates and grain in electrically powered bulk carriers, the transfer of cargo from road to sea, hydrogen as a ship fuel, and sea drones – to name just a few. The hydrogen alternative Mikkelsen says that where tenders going out for ferry services in Norway used to specify ‘low emission’ ferries, now the government is 20 / Triton 2 2021
FORWARD THINKING pushing for zero-emission. “The Safety Fuel flexibility is very important for government is pushing suppliers and shipowners, he adds. “They don’t want to shipping companies to come up with There is, of course a big safety aspect in all have all their eggs in one basket – then find carbon neutral alternative fuel solutions. of this. To some extent, there are safety the price of their chosen fuel is too high, or Hydrogen ferries are what we are talking requirements in place today that could be it’s not available.” about now – and they are coming.” too constricting because they are based on 20-year-old technology, he points out. Catching up As he points out, zero-emission ferries are “Certain requirements actually mean you a really big deal for a country like Norway, are not able to make use of all your new While DNV can change its class rules, where there are about 300 ferry legs that technology and fuels – which means you which are updated every six months, as a are an integral part of the national road are forced to burn more and emit more, classification society it is not, of course, network and administration. “Norwegian because of the current safety rules. There able to change actual regulations. “There fjords are very long and driving around is a balance to be found, and that has not are a lot of statutory requirements and them can take up to 10 hours – hence necessarily been discussed yet.” legislation that shipping companies must there are a lot of ferry crossings. We have adhere to – some of them are probably ripe been working closely with the road Chalotte Bjørn, DNV’s Head of for updating, but that is not in our hands. administration on how to set up tender Communications North Europe stresses: However, the work we undertake with IACS processes, how to understand the “Safety is at the core of everything we do, and the Maritime Technologies Forum technology choices, and how these and we are very close to the industry in (MTF) helps shape and influence global changes will affect operations.” developing rules. For example, we have our regulation drafted at the IMO." ammonia-ready notation which was However while he sees hydrogen as an launched in July. We will have rules in place Equally, ports need to catch up in terms of ideal fuel for shortsea and coastal for all these new fuels to make sure the providing onshore power or new fuels. A operations, “I don’t see that easily on safety aspect is covered.” ship using hydrogen, for example, will need deepsea vessels. to make regular port calls where it can be Fuel flexibility confident of a supplier, because the Alternative fuels onboard tanks will be relatively small. Mikkelsen explains: “You can build vessels “Of course you already have LNG, LPG and to our guidelines on ammonia as a fuel. “It is all about numbers,” says Mikkelsen. methanol for deepsea, and these are really These first orders are being placed now – “There is so much happening, including good transition fuels to zero. Further ahead, probably the vessels will go into service in research into fusion as well as ammonia. we are more likely going to see ammonia, two years’ time. At that point they will be Once we have understood the bigger and potentially other green fuels that will ‘ammonia ready’, which means they will picture around biofuels and what land come after 2030. Hydrogen isn’t a quick fix convert a few years later when prices are areas can be used for these, then more to solve it all – it is heavy and requires way low enough and the supply chain is built to biofuels will come. too much storage, so a deepsea vessel manage that fuel.” might end up carrying more hydrogen than “I am very optimistic. We have seen a “The government is cargo. But overall, I am sure we will see a significant push over the past two years, broad mix of fuels, including different types and a belief from the shipping company pushing suppliers of biofuels.” side. Where two or three years ago people were more shaking their heads and saying and shipping Different ship segments and trades will these were impossible ambitions, today require different solutions – that’s logical. they see that this will happen; they are companies to come But also, he says, shipowners may have asking, how will be manage this, and they good connections to specific customers are setting ambitions and targets. up with carbon which will influence their access to particular fuels. “If you have a trade that “In Norway, the funding structure is drawing neutral alternative can easily get access to a particular fuel at money in from the shipping industry and a fair price, that is a good option.” putting it back – for example, money from fuel solutions. the NOX tax goes back into innovative tech Shipowners need to do their research, says solutions. There are a lot of really well Mikkelsen. “We have a lot of interesting Hydrogen ferries are working mechanisms on the funding side what we are talking conversations with them. Their risk here, and the industry is benefiting.” appetites are not the same. Some will sit about now – and and watch before taking a decision. Others are making a few bets now. Some are they are coming.” looking at fuel cells – others are not because they feel that the technology is too complicated.” Triton 2 2021 \ 21
Preparing FORWARD THINKING for the Not so long ago, 80% of Oslo-based OHT’s business was serving the oil & gas sector. Now the company is committed to exiting that market altogether by 2026, extraordinary- with the exception of decommissioning. The focus is entirely on offshore wind developments, and OHT has invested an extraordinary 500 million USD in support of its work. the Alfa Lift Demonstrating commitment The symbol of OHT’s new direction is big – very big indeed. Next year, the company will take delivery of the unique Alfa Lift, a heavy lift crane installation vessel now under construction at the China Merchants Heavy Industry (CMHI) yard in Jiangsu. With a deck the size of one-and-a-half football fields (10,000 In the drive for decarbonisation, the world is square metres plus) and a crane with 3,000 tonnes capacity, the Ulstein design shifting from offshore oil & gas to renewables. A vessel is being built specifically in response to the increasing demand for company that perfectly reflects that transition is efficient transport and installation Club member OHT. solutions in the rapidly growing offshore wind market. Interview with Tom Jebsen, Chief Financial Officer, OHT Management AS 22 / Triton 2 2021
FORWARD THINKING OHT has also signed a contract with CMHI for the construction of the first of two next-generation self-propelled jack-up turbine installation vessels, being built specifically to install future-generation offshore wind turbines and giant monopiles, but with significantly reduced environmental footprint. This first unit is due to arrive in 2023. A change of direction “Traditionally OHT has been a heavy lift company – for example, lifting enormous oil rigs,” says CFO Tom Jebsen. “We consider the number of vessels within the heavy lift segment to be only 30 to 35, and we have five of them. A few years ago, we saw that there was going to be enormous development of offshore wind. Some 98% of the world’s offshore wind is bottom-fixed – floating wind is now being developed, but we believe it is still ten or 15 years away before it will be very competitive. “A few years ago, we saw that there was going to be enormous development of offshore wind.” Triton 2 2021 \ 23
FORWARD THINKING “The unique Alfa Lift will be capacity crane will pick each one up and delivered in 2022. The Swedish lower it to the seabed; each piece will be driven into the seabed by a 750-tonne Club will be one of the main hydraulic hammer provided by the German specialist Menck. insurers of that unit.” Keeping the fleet busy OHT is confident that its five older open deck semi-submersible heavy transportation vessels, named Hawk, “So we focused on the fact that with our The two vessels together represent an Osprey, Albatross, Falcon and Eagle, will be technology in handling huge weights, investment of 500 million USD. OHT was kept busy in the renewables business. combined with dynamic positioning (DP) listed in order to raise the finance required. “Traditionally they have been transporting systems, we could create an ‘animal’ that “It was very important to get the Dogger oil rigs. But we are now seeing offshore would be much more productive than the Bank contract,” says Jebsen. Initially it was wind developing from very small fields jack-ups that have typically handled with Equinor and SSE; then a third player, where all the products or components were foundation installation. That was in 2015; in Eni, took a share. manufactured fairly close by, to really large 2016 we developed the unique Alfa Lift, fields where you can industrialise the which will be delivered in 2022. The “We start in July-August next year. process – which we have already done,” Swedish Club will be one of the main Installation of the foundations will take 18 says Jebsen. “Last year we picked up 48 insurers of that unit. to 24 months, depending on the weather. foundations on six voyages from the The marshalling port for the foundations Middle East, around the Cape of Good Straight to work will be outside Rotterdam – the reason is Hope up to Scotland.” that these foundations are huge steel piles, OHT already has a contract lined up – the with diameters of 8-10 metres and 80 to What next? Alfa Lift will be put to work installing 190 100 metres long.” foundations on the Dogger Bank. The The question is, what will follow the Alfa smaller jack-up arriving in 2023 will take The Alfa Lift can accommodate at least 10 Lift? Probably something bigger, longer and care of ‘above water’ installation work – the of these at a time, lying across the deck in with a larger crane, says Jebsen. But it will tower, blades and turbine. purpose-designed cradles. The 3,000-tonne not be built speculatively, he says – OHT 24 / Triton 2 2021
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