Mod SHP 305 3

PNTC COLLEGES
Zone III, Lt. Cantimbuhan St. Poblacion, Dasmariñas City
COLLEGE OF MARITIME EDUCATION

ONLINE DISTANCE LEARNING MODULE
COURSE CODE SHP 305 PRE-REQUISITE NONE

COURSE TITLE Deck Watching with Resource Management SEMESTER 1st
UNITS 3 YEAR LEVEL 3rd
COURSE DESCRIPTION PHILIPPINES: MARITIME INDUSTRY DEVELOPMENT PLAN (MIDP) 2019-2028
CREATED BY Capt. Edgardo B. Tabunan – Faculty, MT, College of Maritime Education
TOPIC LEARNING
OUTCOMES
WEEKLY CONTENT TOPIC
At the end of the lesson, the ACTIVITIES
students shall be able to:
Module 3 (Week 3) Top 10 issues concerning the future of shipping
Top 10 issues concerning the future of 1. Understand the top 10 ENGAGE

shipping issues concerning the future
of shipping industry Question:
1. Explains The top 10 issues concerning the With many more regulations and
future of shipping: 2. Explain Decarbonization, developments still yet to come,
shipping decarbonization, nations from all across the globe,
2019 kicked off with the data collection on and its three key elements ship operators and crew are going
fuel oil consumption, alternative through a key period because of ten
mechanisms to comply with the 2020 3. Summarize how shipping major issues that will have
Sulphur cap, the EU Ship Recycling industry addresses GHG significant impact over the next ten
Regulation, the IMSBC Code 2017 years in the shipping industry. Can
amendment as well as amendments 4. Understand Modern you mention or identify any of these
designating North Sea and Baltic Sea as control systems and issues?
ECAs. With many more regulations and autonomous shipping
developments still yet to come, nations from modules
all across the globe, ship operators and crew EXPLORE
are going through a key period because of 5. Describe how unmanned
ten major issues that will have significant shipping operates
impact over the next ten years in the • Decarbonization
shipping industry. 6. Illustrate the shift from
automated to autonomous
shipping
2. Explains Decarbonization
7. Explain Blockchain
In an exclusive interview during SMM 2018, technology and its role in
Mr. Eirik Nyhus, Director, Environment, global energy market
International Regulatory Affairs, DNV GL
noted that ‘definitely decarbonization is the 8. Understand Ocean
number one challenge for the industry’, sustainability
Question:
citing three key elements to accelerate pace: BWMC, IMO workshop on
In the picture above,
1. We have to get efficiencies higher than UN sustainability
decarbonization is the number one
they are today and roll out all the development goals
issue that will have a significant
efficiency technologies that we are able
impact in the shipping industry.
to put in play 9. Illustrate Cyber-attacks,
What are the pace to neutralize the
2. We have to work on logistics in getting threats and data theft in the
Form No. BPM2-CME 20 F-009 SHP 305(Module 3)
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the chains optimized, that includes ports maritime environment carbon emission from ships?
not only ships operating NEXT
3. But, most importantly, we have to work • Ship Pollution Cases Paid the
on carbon neutral fuels. For shipping to 10. Differentiate Safety Highest Criminal Penalties in 2016
reach its ultimate emission reduction Culture Vs Safety Climate by US DoJ
goals, carbon neutral fuels are absolutely
essential and have to be deployed. And 11. Explain how shipping
that is where we really need to focus on deals with high corruption
in the years to come levels
12. Illustrate how EU is

3. Explains Shipping decarbonization: Three working for safer and
key elements to move forward cleaner oceans
In an exclusive interview with SAFETY4SEA

during SMM 2018, Mr. Eirik Nyhus, Director, 13. Determine the Timeline
Environment, International Regulatory of Belt and Road
Affairs, DNV GL notes that electrification is development
going to be a key element to move forward
the sustainability space. Definitely 14. Understand Global Question:
decarbonization is the number one economic crisis Typical ship exhaust contains the
challenge for the industry, Mr. Nyhus following pollutants, leading to
comments, citing three key elements to adverse effects on human health and
accelerate pace. He concludes that climate climate change, what action do you
change is the key driver for more action, think is the best solution?
meaning that policy makers ‘have to actually
start today’ and not wait till 2023! EXPLAIN AND ELABORATE
SAFETY4SEA: How your organization may “Discussion of the topics with

contribute toward sustainability? What are power point presentation”
your plans to move forward?
12. Explains IMO hosts workshop on
Eirik Nyhus: DNV GL has been active in the UN sustainable development goals
sustainability space for a long time. In the
maritime, oddly we don’t like to focus on On 11 January at IMO’s London
what we have been doing on LNG over the headquarters, IMO and the United
years and our part in making LNG a viable Nations System Staff College held a
technical solution. These days there is a lot workshop for Member State
of work being going on with batteries and delegations, aiming to help Member
the battery technology because we believe States gain a better understanding of
that electrification is going to be a key the UN Sustainable Development
element to moving forward the Goals (SDGs) and the role IMO can
sustainability space. That being said, I would play in achieving them.
also like to highlight that we are not only
doing technical work, we also work in the In 2015, 193 countries adopted the
policy space where we contribute to work at 2030 Agenda for Sustainable
various levels of the UN and also various Development and its 17 associated
governments that are members of the IMO. Sustainable Development Goals
We are essentially spread all over the (SDGs), calling for action by all
sustainability space and doing our ‘bit’ to countries to eradicate poverty and
make the world move forward. achieve sustainable development on
global scale by 2030.
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S4S: In your view, what would be the

biggest shipping challenge in the years to Among the topics covered in the
come with respect to sustainable shipping workshop were how to integrate
for the industry stakeholders? different stakeholders and develop
coherent policies with regard to
E.N.: There is a very simple answer to this: sustainable development, and how
Decarbonization. Making the world shipping to generate engagement and buy-in
fleet fully decarbonized within this century is among potential partners.
a massive challenge. Moving to a 50% As part of the United Nations family,
reduction of CO2 emissions by 2050 is a IMO says it is actively committed to
really big challenge as well, although we will helping its Member States achieve
only get half way to the ultimate goal. To get the 2030 Agenda and the SDGs,
there, we really need to work on three especially SDG 14 which refers to
elements: sustainable use of the oceans,
1. We have to get efficiencies higher than improving safety and security of
they are today and roll out all the international shipping and
efficiency technologies that we are able preventing pollution from ships.
to put in play
2. We have to work on logistics in getting Indeed, most of the elements of the
the chains optimized, that includes ports 2030 Agenda will only be realized
not only ships operating with a sustainable shipping sector
3. But, most importantly, we have to work supporting world trade and
on carbon neutral fuels. For shipping o facilitating global economy.
reach its ultimate emission reduction
goals, carbon neutral fuels are absolutely September 2018 marked the third
essential and have to be deployed. And anniversary of the launch of the UN
that is where we really need to focus on Sustainable Development
in the years to come. Goals, significantly affecting also the
business sector. Only two years after
their launch, in 2017, four in ten
S4S: How do you believe the 2020 sulphur (40%) top companies acknowledged
cap will impact the market? the goals in their corporate
reporting.
E.N.: The 2020 cap is a very significant event The SDGs are anticipated to
and the key word I guess is ‘turbulence’. In generate at least US$12 trillion
the short-time, we will see shipping working worth of market opportunities by
very hard to be compliant because there will 2030, which means that the private
be all kinds of transition issues going sector plays a critical role in
forward. But that being said, shipping has providing solutions that can
shown its capacity and capability to adjust to contribute to solving these
radical changes earlier, so shipping is not challenges, while also generating
going to stop. It is not as if shipping trade is new business opportunities.
going to grind to a halt. Shipping will move
forward, we will adjust and we, as a 13. Explains Cyber-attacks and data
community, will demonstrate our capability theft
to deal with significant changes when they
happen. Eurasia Group’s lists cyber-attacks
among top political risks that are
most likely to arise this year.
Specifically cyber threat in
industries, including shipping, has
gained increased attention as an
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issue in the past year. In the last

S4S: What are the key drivers for the decade, hackers have grown more
decarbonization of the industry? What is sophisticated, societies have become
the way forward? heavily dependent on digital
services, and efforts to agree on
E.N.: The big driver is of course climate basic rules of the road for cyber
change. But climate change is kind of big conflict have gone nowhere.
word. It has to be translated into something “So much data is being collected
applicable to the industry. What this means 24/7. How do we identify essential
for shipping is that we have two primary data and maximize its efficient use –
drivers responding to climate change: We for instance standardization of data
have the regulators and policy makers which terminology to ensure global
take their national goals to IMO and then we compatibility across maritime
have what happens with the John Q. public, industry sectors? Let’s hope there
because there is such an increasing demand will be an answer soon,” says
now these days for Elizabeth Ahlefeldt-Laurvig-Lehn PA
transparency. Transparency in shipping is to Deputy Secretary General,
something new customers are demanding BIMCO.
from us. So transparency and policy makers
response to climate change are the key 14. Explains Watch: Cyber threat
drivers going forward. The way forward is among the top risks for 2019
that IMO needs to start working hard on its
action plan: We have a goal, we have a Watch: Cyber threat among the top
vision, but we don’t necessarily know how to risks for 2019
get there. We have many candidate Eurasia Group issued its annual
measures on the table but we need to get forecast of the top political risks that
those measures shorted and get high priority are most likely to arise this year,
once implemented as soon as possible. And listing cyber threat at the third place.
this cannot wait until 2023. We have to Cyber threat in business, including
actually start today. shipping, has gained increased
View herebelow the video interview with attention as an issue in the past
Eirik Nyhus, Director, Environment, year. In the last decade, the report
International Regulatory Affairs DNV GL at highlights, hackers have grown more
SMM 2018, September 4-7, Hamburg, sophisticated, societies have become
Germany. heavily dependent on digital
The views expressed in this article are solely services, and efforts to agree on
those of the author and do not necessarily basic rules of the road for cyber
represent those of SAFETY4SEA and are for conflict have gone nowhere.
information sharing and discussion purposes
only. Cyber deterrence is hard. The source
Additionally, IMO is going to implement of an attack and lines between state
a strategy with the aim to reduce shipping and non-state actors are blurred in
emissions of greenhouse gases by 50% by cyberspace. That makes it difficult to
2050 compared to 2008 while already many be sure whom to retaliate against,
organizations are revealing their ambitious and attackers know that. Also, there
plans toward full decarbonization. is still a lack of clear red lines in
many areas, meaning attackers can
often get away with their misdeeds if
they avoid clear no-gos (such as
critical infrastructure). Finally, cyber
weapons become obsolete fast, and
access to targets comes and goes.
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It's tempting to use a capability

4. Explains How shipping industry addresses when you can, making the idea of
GHG: Targets set, what’s next? Cold War-style peaceful stockpiling
of weaponry less likely. So, if cyber
There have been critical debates on potential deterrence has never come close to
solutions for reducing CO2 and greenhouse actually working, what's new?
gas (GHG) emissions in all sectors. As part of
the Paris Agreement, adopted by consensus According to Eurasia, ten years
on 12 December 2015, long-term goals have after the US and Israel destroyed
been set by several countries around the portions of Iran's covert nuclear
globe to limit the increase in global average weapons program using a computer
temperature in an effort to mitigate the worm known as 'Stuxnet', ushering
effects of climate change. In the shipping in the modern era of cyber conflict,
industry, most recently, the target of a 50% the US will now for the first time
reduction of the Greenhouse Gas from attempt to establish deterrence 'by
shipping emissions by 2050, compared with projecting its cyber power in much
those in 2008, was a milestone decision more assertive ways'.
adopted within 2018 by IMO and at the However, the report underlines, this
same time, an ambitious plan which will not only fail to create an
highlighted that much change is needed effective system of global
toward that end. deterrence, but 'it could backfire'.
However, how can associations and After taking a cautious approach

individual companies or even nations take while former president Barack
the lead by themselves in shipping? It is well Obama was in office, the US is now
known that the industry is making a start leaning heavily toward greater
towards the far-reaching change, but it is a offensive action in cyberspace,
very slow one and it is now time, emissions including by freeing the Department
regulations to become the game-changer for of Defense's Cyber Command to
the shipping industry. unleash preemptive strikes. It's even
“We are facing the challenge of a lifetime in considering giving private-sector
shipping,” says Lars Robert Pedersen, actors leeway to “hack back” when
BIMCO. “The environmental agenda will attacked. In an ideal world, this show
continue to push the shipping industry into of teeth would lead foreign actors to
an increasingly more sustainable business keep their arsenals in check and
path. The days are over when shipowners create a new security equilibrium in
could operate without public scrutiny.” which perceptions of US cyber
What has become clear is that the serious dominance would discourage
issue of climate change will continue to push attacks.
shipping industry stakeholders to figure out
solutions and ensure that a balance between However, Eurasia stresses that this is
ship safety and environmental protection is not going to work, for two reasons:
always maintained. Twelve months from
now, the Sulphur cap, for which everyone in • First, like traditional deterrence,
the industry is highly concerned at the cyber deterrence works best against
moment, is going to take effect, aiming to states. But many of the world's most
reduce SOx emissions. destructive cyber actors are non-
With regards to CO2 emissions, IMO is going state actors who have less to lose
to implement its strategy while already from taking their chances on offense
many organizations are revealing their
ambitious plans toward full decarbonization We're particularly worried that the
by 2050. Most recently, during COP24, stolen National Security Agency tools
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Maersk announced its own climate target for that powered the 2017 NotPetya
net-zero emissions by 2050.’’We need a attacks are being updated for
mindset change and gearshift, moving our current software systems and have
focus from short-term energy efficiency to been incorporated into sophisticated
long-term solutions’’ stated Mr John cyber operations. Non-state actors'
Kornerup Bang, Maersk’s Head of temptation to use them against
Sustainability Strategy. critical infrastructure or corporate
“At some point in time big and small networks before systems are
shipping companies need to change to new upgraded will increase in 2019.
fuels will much lower impact on climate and
environment. Some big shipping companies • Second, even governments won't
already have serious plans in this direction back down in reaction to Trump's
for example Stena and Wallenius. There is a assertive cyber policy. In the US-
need for stricter regulation on international Russia rivalry, it's unclear which
and national level as well as financial nation controls escalation
incentives to increase the pace in the dominance—the ability of one side
change.”, added Selma Brynolf, Doctor of to dominate a conflict as it grows
Maritime Environmental Sciences at more serious—and whether classic
Chalmers University. deterrence would work. For weaker
states such as Iran or North Korea,
GHG progress in shipping there's also an asymmetry of power
The multi-state nature of shipping excluded in the use of cyber weapons that
the industry from the Paris Climate makes them too tempting not to
Agreement two years ago. Why? Because use.
ships are almost always outside national
borders. Furthermore, the actual nationality Several of the world's most
of ships is often different from that of their aggressive cyber powers have little
owners, operators and/or crew. Therefore, to lose in the event of retaliation,
shipping GHG falls to the International given their low level of
Maritime Organization (IMO) and the connectedness (think North Korea).
progress made is as follows: And for China, the stakes are too
1. IMO’s strategy is triple high to allow the US sole use of a
1. Implement strict international rules weapon that works. All of this leads
for sulfur emissions in sensitive to a scary prospect: The Trump
marine environments (2020 Sulphur administration thinks it's
cap) strengthening deterrence (and
2. Reduce shipping emissions of therefore peace) by deploying its
greenhouse gases by 50% by 2050 arsenal, but the odds are greater
compared to 2008 that this show of force leads nations
3. Eliminate GHG emissions completely to “see and raise” the US's bet.
over the century
2. There are four major pathways towards 15. Explains Cyber threats in the
emissions reductions: maritime environment: What you
1. Improvements in energy efficiency should know
(ex. Electric vessels)
2. Renewable sources of energy, Cyber threats in the maritime
3. Fuels with lower carbon content (ex. environment: What you should
Electromethanol) know
4. Technologies to remove Passwords update; data speed; geo-
emissions released during location authentication; only a few
operations ways to prevent the threat posed by
cyber criminals who aim to
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undermine our network

Interestingly, CO2 emissions from ships connections. Certainly, we're
declined from 916 million tonnes in 2008 to exploring the opposite end of the
812 million tonnes in 2015. spectrum: always trying to protect
against them.
5 key areas that shipping needs to shed its
focus on How can, therefore, these threats
affect industries and organizations,
Although considerable progress has been especially those in the maritime
made so far, what’s wrong with the way that environment?
shipping approaches GHG? Here are the five
areas that shipping needs to further address: Cyber threat explained
The UK National Cyber Security
1. Lack of mandatory requirements: Center describes cyber security as:
According to IMO, as trade grows, carbon "The protection of devices, services
dioxide emissions from international and networks - and the information
shipping could increase by as much as 250 on them - from theft or damage."
percent by 2050. The final IMO strategy is Accordingly, 'cyber-attack' is any
due to be adopted by 2023. In year 2019, malicious attempt to damage,
the industry lacks mandatory requirements disrupt or gain unauthorized access
for individual ships, and other policy to computer systems, networks or
measures to support development and devices, via cyber means, while
implementation of new technologies and 'cyber incident' is a breach of the
fuels. Looking at the ships’ development security rules for a system or service
over the past years, main changes have been - most commonly.
on ship size and cargo types. The question to October marks the National
be asked is “why not on design and fuel?” Cybersecurity Awareness Month.
Ensuring the cybersecurity of
2. Lack of mature alternatives to traditional organization information systems,
propulsion technologies information technology, and
“Tests with fossil methanol, biofuels and operational technology requires
electric propulsion are being made by constant vigilance and careful use.
different shipping companies,” says Selma
Brynolf, doctor of maritime environmental Major cyber threats
sciences at Chalmers University. “Liquid • Phishing
natural gas is an emerging option that that The US Coast Guard presents
meets the sulfur and nitrogen oxide phishing among the major cyber
regulations. However, since the gas is a fossil threats; the fraudulent attempt to
energy source, the potential for reduced obtain sensitive information; such as
climate impact is limited.” usernames, passwords and credit
Furthermore, a report issued by the Global card details, for malicious reasons.
Maritime Forum finds “non-fossil fuels’ and Organizations are urged to improve
‘alternative propulsion technologies’, both resilience against phishing, whilst
potential pathways towards the goal of minimizing disruption to user
reducing GHG emissions, to be less productivity. Typical defenses
significant in impact and likelihood over the against phishing are reliant on users'
next 10 years. abilities to detect phishing emails.
3. Lack of certainty: • Ransomware

The same report finds air pollution in the top A ransomware usually revolves
five issues that the maritime industry is around obtaining money to restore
relatively unprepared to deal with. the locked down data of the victim.
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According to Christine Loh of the Hong Kong In other words, it is a cryptographic

University of Science and Technology and code, which is written to lock down
former Under Secretary for the Environment the files. It is just like any other
in Hong Kong, when it comes to computer code written by
preparedness, maritime professionals seem developers based on a simple
unsure whether their company has made cryptographic algorithm. Therefore,
the right emissions reductions decisions. to write a complex ransomware
code, authors and cyber-
4. Lack of carbon pricing initiatives extortionists must have very good
A carbon pricing initiative could help develop knowledge of computer language
emissions reduction technologies and and code writing.
subsequently incentivize companies to
reduce their GHG emissions. • Insider threat
5. Lack of openness: This threat refers to any malicious

"We need more openness," notes Aron threat to an organization originating
Sørensen, BIMCO highlighting that from a person within the
shipowners need to go public and talk about organization itself. This could
how much they have contributed to manifest itself in fraud, theft of
reducing greenhouse gases. Although much information, or damage to internal
has been achieved so far, industry systems.
stakeholders need to make the results more
visible. Individuals should make sure that
they lock their workstations when
5. Explains Modern control systems and they leave their desks and never
autonomous shipping modules share passwords with anyone,
Shipping 4.0 is well under way. The major the US Coast Guard informs
challenge for implementing fully automated
systems controlled by remote operators or • Social Media deception
by algorithms is not to make them work, but Cyber criminals use social media to
to make them sufficiently safe, states a DNV engage in identity theft and attract
GL report. What is sufficiently safe, or has a individuals to download malicious
tolerable risk level, will most likely be code or even reveal their secure
defined by a competent authority such as codes. Social media settings can
the International Maritime Organization determine who can access our
(IMO) and flag states for any given information and secure them to the
operation. IMO is currently building on a greatest extent possible!
safety regime with supporting regulations
and instruments to reach this goal. Research says that from 2016 to
2017, there has been a 2,502%
increase in the sale of ransomware
6. Explains Towards unmanned shipping on the dark web while cyber-criminal
economy has hit global revenues of
Towards unmanned shipping $1.5 trillion a year, the FBI has said.
Bjørn Kjærand Haugland, EVP & Chief Profit; that’s the incentive behind
Sustainability Officer DNV GL, says that cyber-crime!
autonomous shipping is a now a reality.
Vessels are already equipped with
technology to see at night and through fog
and snow - better than the human eye, and
more ships are fitted with systems to
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manage and transmit large volumes of data.

The technology is in place and the time has Actions to be taken by shipping
come to move more operations ashore. operators
Instead of having a crew of 15 sailing in a
storm in the North Sea, people can stay in a  Stick to the industry
control room on guidelines on maritime
shore, where the same person could monitor cybersecurity practices and
and steer many ships. their implementation
 • Use strong passwords and
update them frequently
Get ready for shipping 4.0  • Be aware of your systems
More autonomous shipping has the potential and the way they interact
to bring benefits to the industry, their with each other
customers and to the society at large. As
ships become more connected the below 10 • Implement risk assessment
main drivers will in my opinion gradually procedures properly
transform the shipping industry towards
new business models based on more remote A messaging campaign to raise
control, more autonomy and reduced awareness
requirements to on-board manning. The global marine and offshore
1. Increased safety: Human error is a industry initiative, Be Cyber Aware at
significant part of 70% to 80% of all Sea aims to raise awareness, inform
accidents at sea. Replacing human and educate owners, operators and
control with reliable technology has the on-board crews in order to ensure
potential to increase safety radically. they are doing everything they can
2. Reduced operational cost: Unmanned or to mitigate this unknown threat at
partly unmanned shipping brings along a sea.
significant potential to reduce cost. SAFETY4SEA supports the campaign
Manning costs typically represent more which provides free resources such
than 30 % of the total ship operation as downloadable posters, 'Phish &
costs and around 10% of the average trip Ships' newsletter, a video blog each
rates month with guest interviewees,
3. Reduced construction costs: No 'Shark Bytes' and useful daily
superstructure, accommodation and updates via all social media
deckhouses will reduce the construction channels. The initiative received
costs (no air conditioning, heating, the 2018 SMART4SEA Training
ventilation, etc.) Many facilities and Award, sponsored by Navarino, for
systems on board are only there to uniting industry stakeholders to raise
ensure that the crew is kept fed, safe, awareness towards cyber security.
and comfortable. To eliminate or reduce
the need for on-board crew will radically
simplify vessels design and reducing 16. Explains Safety culture
construction and maintenance costs.
4. Increased environmental According to research, workplaces
sustainability: Slow steaming is maybe with a healthy culture are 49% less
the most obvious approach to achieve likely to have accidents and 60% less
this objective. By diminishing the fuel likely to make errors in their work.
consumption of a vessel its emissions are The traditional thinking about safety
reduced equally. Hence the effects of has reached some notable
unmanned autonomous vessels on a landmarks, but the constantly
wider deployment of slow steaming will renewed list of unexpected incidents
not only contribute towards economic at sea comes to underline a need for
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but also significantly towards the a change in safety perception,

environmental sustainability of maritime unveiling there could be more than
transport. Slower sailing speeds become the traditional ways of ‘doing safety’.
economically viable if crew costs can be Safety becomes a priority in shipping
reduced. companies with an effective safety
5. Increased social sustainability: Seagoing culture and safety climate.
professions are increasingly perceived as
unattractive today. Sea passages are long 17. Explains Safety I vs Safety II: An
and often lacking in variety. Port calls overview
that might offer some change to the daily
routine are short nowadays allowing for The traditional thinking about safety
little time to spend ashore. Mariners are has reached some notable
confronted with a disconnection from landmarks, but the constantly
their social environment due to the long- renewed list of unexpected incidents
time periods they spend away from at sea comes to underline a need for
family and friends. The concept of a change in safety perception,
unmanned autonomous vessels offers an unveiling there could be more than
opportunity for improvement by the traditional ways of ‘doing safety’.
increasing the attractiveness of seafaring.
The seafarers of the future control and A 2013 white paper by Professors
monitor the routing and navigation of the Erik Hollnagel, Robert L Wears and
unmanned ship from a shore side Jeffrey Braithwaite came to redefine
operations centre, plan the vessel’s the way we see safety with the
maintenance schedule or could even pilot introduction of a new definition at
the ship during the approach of a port. At the scope: The ‘Safety II’ concept
the same time, they can live close to their argues that we should stop focusing
families and follow ordinary working only on how to stop things from
hours. going wrong but emphasize on why
6. Stronger competence base: As the things go right instead. The ‘Safety-II’
operations, tasks and jobs gradually perspective acts as an evolutionary
move from sea to shore the competence complement of the conventional
requirements will develop and attract safety thinking, referred as ‘Safety I’.
talents with new complementary Safety I takes accidents as the focus
competencies that will strenghten the point and tries to prevent bad things
shipping industry. from occurring, while Safety-II is
7. Increased competitiveness: Smarter emphasizing on ensuring that as
ships with increased cargo capacity (no much as possible goes right,
superstructure & deckhouses) and expanding much more than the area
reduced operational cost will make the of incident prevention and
shipping industry more competitive promoting a real safety management
towards other modes of transportation. over a simple risk assessment.
E.g. there are a potential to increase the In a more simplified way, the new
trade volumes by moving cargo from safety concept comes to dislodge the
shore to sea and reduce the density of interest from ’what goes wrong’ to
polluting cargo trucks on the roads. ‘what goes right’, reminding that
8. Reduced risk of piracy: There would be safety management should not only
no human hostage situation from piracy be reactive, but proactive as well.
and a remote-controlled ship can be An accident investigation under the
“shut down” from shore making it scope of Safety-I is to identify the
difficult for pirates to take over the causes of adverse outcomes, while
control of the vessel (they must bring risk assessment aims to determine
their own tug to take control). their likelihood. On the contrary,
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9. Opening of new opportunities and accident investigations under Safety-

solutions: A ship design without II seek to understand how things
superstructure, deckhouses and usually go right, as this forms the
equipment to facilitate an on-board crew basis for explaining how things go
will have more space for cargo and open wrong, while risk assessment aims
for new solutions for automatic loading ‘to understand the conditions where
and unloading. Other examples of new performance variability can become
opportunities can be where small difficult to control’.
unmanned vessels can replace the need Notably, the new concept does not
of more expensive city infrastructure like seek to supersede what is already
bridges etc. being done, but to complement the
10. New Business models: Going forward we current approach, which means that
will see business model innovation many of the existing practices can
through the entire value chain of continue to be used, just ‘with a
shipping on top of a more advanced and different emphasis’. However, one
connected ship technology platform. It cannot exist without the other.
was for example newly reported that
Marine Transport International Ltd., a SAFETY I vs SAFETY II
U.K.-based freight forwarder, has started
using blockchain technology to create Safety I
real-time digital ledgers of shipping data 1. Learn from our errors
for use by port officials, cargo owners 2. Safety defined by absence
and others along global supply chains. In 3. Reactive approach
2014, Maersk began installing 3-D 4. Understand what goes wrong
printers on their ships in-order to explore 5. Accident causation
and test on-board and printing of spare 6. Avoid errors
parts.The U.S. Navy is examining new 7. Reduce losses
possibilities for autonomy in future naval
missions, putting autonomous unmanned Safety II
vessels to the test in a recent 1. Learn from our successes
demonstration in the lower Chesapeake 2. Safety defined by presence
Bay. 3. Proactive approach
4. Understand what goes right
The ReVolt is a prototype of DNV GL’s vision 5. Repeat what goes right
for the future of coastal cargo shipping. It is 6. Enforce successful behaviors
intended to serve as an inspiration for 7. Create new process on successful
equipment manufacturers, shipyards and behavior
ship-owners as they endeavour to develop
new solutions for a safer and more Challenges ahead
sustainable future. With no crew, there is no
need for crew facilities and the resulting But what makes the transition to
increase in loading capacity and low Safety II necessary? Continuously
operating and maintenance costs. Compared disruptive technology, which makes
to a diesel-run ship, the ReVolt could save navigation much more complex than
up to USD 34 million during its estimated 30- it used to be, could be enough, but
year lifetime – saving more than a million this is not the only answer.
USD annually. In ‘Safety II’, humans are seen as a
resource necessary for flexibility and
The Road Ahead resilience. But in an era where
The road towards connected autonomous human error is attributed to the
shipping will be stepwise and start with majority of maritime casualties, the
small specialized cargo vessels for costal and view of humans as a safeguard and
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local traffic. There are many levels of not a liability will be the foremost
autonomy and we will gradually see more challenge.
automation for all vessels as technology In this respect, a starting point for
matures. Different levels of autonomy will organizations interested in Safety II
gradually expand to increasingly wider is to emphasize on enhancing their
operational area and larger ships. The employees’ resilience, as the ability
regulatory and legal frameworks will need to monitor things and handle
to be developed to facilitate a safe and situations.
responsible uptake of new technology and The way forward for a change of
solutions. mentality seems long in an industry
which has traditionally learned to
Unmanned shipping has a huge potential to shed focus on near miss reporting,
drive economic, environmental and social but not on positive reporting, to
sustainability in the shipping industry and I claim liability but care less on
am happy to see a lot of exiting praising exceptionally good
development taking place in the industry performance.
these days.
The Norwegian Shipping industry is actively 18. Explains Safety Management:
pushing the agenda forward and the Safety Culture Vs Safety Climate –
Norwegian Maritime Authority and the What’s the difference?
Norwegian Coastal Administration have
recently signed an agreement to open the Safety culture and safety climate are
world’s first test area for autonomous ships similar terms describing an
in the Trondheim fjord. The Norwegian organization’s approach to safety,
Forum for Autonomous Ships (NFAS), bring not only the visible efforts or
together and share information to attitudes its members chose to
organizations interested in the subject of adopt, but also every mental
autonomous ships. function that defines their overall
behavior. To be more specific,
7. Explains Upgrading from automated to although those two definitions are
autonomous shipping used for the same reason, “safety
culture” mostly refers to individual
Autonomous ship is a marine vessel with and group values, attitudes,
sensors, automated navigation, propulsion perceptions, competencies regarding
and auxiliary systems, with the necessary safety, while “safety climate” is
decision logic to follow mission plans, sense mainly used to describe the
the environment, adjust mission execution expressed ideas, the tools and
according to the environment, and techniques used in general by the
potentially operate without human organization in order to confirm its
intervention. The maritime industry benefits compliance to safety. In other
by autonomous vessels since the latter words, the climate is an item which
includes operational efficiency, human error is easily perceived by others while
reduction, emission reduction, increased culture is the basis that lies hidden
safety, and operational cost reduction. under the surface.
The idea on the autonomous ship is This separation may seem

accelerating throughout the globe, being unnecessary as the result is always
supported by governments. The alter from the visible part, however, separating
automated to autonomous shipping includes the visual from the intangible items
vessels that rely on quality, security and could be useful for an organization
integrity of data, overall system cyber during a performance evaluation to
security and operational software. acknowledge failures and
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understand the deeper causes that

Also, autonomous vessels are unmanned or led individuals to an unsafe
can be remotely controlled from off-board behavior.
centres.
Safety Culture: Key elements
In addition, supporting autonomous
shipping, ABS is currently collaborating with Organizations adopt an attitude and
members, industry and regulators on follow a defined path for their
autonomous vessel design, risk management actions and their total approach to
and implementation. business. If their actions do not
Furthermore, ABS has joined the Unmanned deviate from the approved plan the
Cargo Ship Development Alliance aiming to a results may be acceptable and very
design that will integrate features of close to the scopes and aims of the
independent decision-making, autonomous company.
navigation, environmental perception and As already mentioned, the culture is
remote control. the unrevealed part of the
Moreover, IMO's Maritime Safety company’s character, thus the only
Committee on its 100th session on way to be revealed is through
December 2018, approved the framework discussion with crewmember at the
for regulatory scoping exercise on office and onboard. Culture, as it is a
autonomous ships. The regulations were mental process, may be difficult to
focused on the degrees of autonomy in be described by the individuals, but
maritime. through targeted questions, the
Yet, the MSC 100 pushed further regulatory main facts would come on the
work on shipping safety, with the adoption surface about what is safety for
of amendments to the SPS Code and them and which are their own
the STCW Code, as well as the approval responsibilities related to safety.
of draft amendments and guidelines. Lately, several theories have made
Finally, concerning the autonomous their appearance to define different
shipping, IMO's Committee also agreed on culture approaches among shipping
draft amendments to the 2011 ESP Code organizations as follows:
forwarded to MSC 101 and their approval. • Non-blame culture: is an approach
that tries to see any problem from a
view that is totally disconnected by
8. Explains Blockchain technology any term of fear. Thus, the
crewmembers onboard and office
The totally decentralized, open-source, peer employees are always encouraged to
to-peer software and the management of all report errors and every problem
transactions take place. Zion Market arising at workplace without any
Research report says the global blockchain in punishments.
energy market is valued at around USD 208 • Just culture: refers to an approach
million in 2017 and is expected to reach that shows zero tolerance to unsafe
about USD 11,899 million by 2024, behavior. Some organizations draw a
increasing at a CAGR of above 78.2% strict line that separates the
between 2018 and 2024. acceptable incidents that may be
opportunity for learning from
9. Explains Blockchain in global energy unacceptable and totally unsafe
market to reach USD 11,899m by 2024 behavior that could lead to sever
and catastrophic consequences.
Zion Market Research has published a new A combination of these two theories
report according to which the could develop a strong organization
global blockchain in energy market was of high reliability where employees
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valued at around USD 208 million in 2017 report their errors and all near
and is expected to reach about USD 11,899 misses, but on the other hand a line
million by 2024, increasing at a CAGR of is drawn between acceptable and
above 78.2% between 2018 and 2024. unacceptable behaviors. Also, the
organization should always make the
Specifically, Zion Market Research's report is appropriate efforts to cultivate a
entitled to "Blockchain in Energy Market by safety culture among all members
Type (Public and Private), by Component and use the arising problems as
(Platform and Services), by End-User (Power lessons to be learned, in order not to
Sector and Oil and Gas Sector), and by repeat sometime in future.
Application (Grid Management, Energy
Trading, Government Risk and Compliance Safety Climate: Key elements
Management, Payment Schemes, Supply By safety climate shipping
Chain Management, and Others): Global organizations mean the way that
Industry Perspective, Comprehensive safety is managed and how it is
Analysis, and Forecast, 2017-2024". transmitted and reflected at
As stated in the report, Blockchain can be crewmembers’ behavior. There are
also called "decentralized ledger many factors that synthesize a safety
technology" as it has no central server. On climate in shipping companies with
the contrary, the authentication of these the safety management being the
servers is handled publicly. It enables people major. Except for that, it is very
to trade energy by themselves. important for an organization which
The Blockchain project has aims toward a strong safety climate,
plenty benefits since it offers fast and safe to focus on the following:
transaction at a low cost. Yet, because of the • Training programs
lack of regulations, advancements in the • Maintenance of its social status
international trade and supply chain • Assessment of the risks
management are expected to provide many As it derives from the experience, a
opportunities for the key players working in strong safety climate ensures better
the global blockchain in energy market. outcomes. As such, shipping
The application of global blockchain in organizations should invest on safety
energy market includes grid management, climate and always control and
energy trading, government risk and evaluate the safety performance
compliance management, payment bearing in mind that there are
schemes, supply chain management, and several things, visible and hidden
others. that contribute to positive safety
In 2017, the power sector dominated the outcomes, as also to the company’s
market. This will play a crucial role to the continual improvement.
rising demand for renewable energy around
the globe. Safety becomes a priority in shipping
The Blockchain project, globally, companies with an effective safety
includes North America, Europe, Asia Pacific, culture and safety climate.
Latin America, and the Middle East and Company’s staff and vessel’s crew
Africa. will learn to concentrate on safety
According to Zion Market Research, the and assess the consequences of
European blockchain in energy market is unsafe actions, rather than simply
expected to experience major growth in the obey to safety procedures, as these
years following. This is obvious by the have been defined by the top
numerous startups that are interested in management, statutory regulations
blockchain. etc. A management that focuses on
In addition, UK and Germany held the largest self-interest and continual learning
market share in this regional market in 2017. from mistakes, ensures that
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Also, important energy firms across Europe employees -from office managers, to
are to apply for blockchain processes in the captain, purser or sailors-
network management and billing, electric understand the importance of
mobility, renewable power origin following the safety procedures,
testimonials, decentralized power until finally becomes their only
production, and retail sales. choice and attitude.
North America is expected to experience
important growth in the blockchain
department, as stated by the Zion Market 19. Explains Corruption
research because of government's support.
Specifically, the government made an Fighting corruption is one of the
investment of approximately USD 22 million biggest impediments to achieving
for various products and services in the field the sustainable development of
of emerging technologies. shipping industry. Today, all
Asia Pacific is allegedly expected to have a companies have an internal defense
rapid rate of increase in the blockchain in against unethical practices,
energy market in the following years. The corruption continue to exist; from
Asia Pacific's financial services are false certificates and checklists to
proceeding to important investments for the briberies regarding safety
development in the market. inspections and so on. However, the
Additionally, the expansion of new and 2018 Sustainability SAFETY4SEA
renewable energy supply in Asia Pacific Award Winner, Maritime Anti-
countries are expected to boost the market Corruption Network (MACN) has
in the future. collected over 19,000 reports of
Concluding, the Latin American and the corrupt demands globally.
Middle Eastern and African regions are to “Regulation at the international,
witness mediocre increase in the blockchain national, local government, and
in energy market over the forecast time corporate levels is vital to tackling
period. This is a result of the increasing oil corruption. Where there is legal and
and gas sector in the Middle East region and policy ambiguity there is room to
rapid industrialization in the Latin American abuse the system. But action must
region. go beyond writing new or more
laws,” John Sypnowich, Chief Legal
10. Explains Ocean sustainability and Compliance Officer of The CSL
BWMC Group Inc & Chair of MACN,
explains.
The implementation of the BWM Convention
has been a landmark decision toward clean 20. Explains International Anti-
seas; this involves the installation of Corruption Day: How shipping deals
enormous treatment systems to prevent the with high corruption levels
impact of invasive marine species
unwittingly being moved in ships’ ballast Corruption and “greenwashing”
water tanks. In this regard, Mark Riggio, show rising trends in most sectors in
President of the Ballastwater Equipment year 2018 with shipping industry not
Manufacturers’ Association (BEMA) being excluded. Ship owners, Port
highlights that the deadline for a BWTS officers, Ship Registries,
installation expires, thus the sooner they Classification Societies, recycling
start planning, the better. yard owners and scrap dealers are
Over 60.000 vessels need to be retrofitted said to being involved in
with BWTS between now and the end of “Greenwashing” operations, trying
2024. All systems that shall be installed on to circumvent the international
vessels need to be have IMO approval and if maritime legislation to their own
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sailing to USA, an approval from USCG is a benefit. The 2018

requirement. Today over 70 systems are Sustainability SAFETY4SEA Award
approved by IMO but only 12 systems are Winner, Maritime Anti-Corruption
approved by USCG so far. Network (MACN), along with a
IMO is highly concerned with achieving UN number of other distinguished
Sustainable Development Goal 14: ‘Life initiatives are working hard to
Below Water’; important topics such spread awareness in order to make
as biofouling and noise reduction from the industry safer, more profitable
marine traffic have been also put on the and sustainable. Which is, however,
table for further discussions in the years to the industry’s outlook on
come. corruption? To what extend are we
interested in a more sustainable
trade?
11. Explains Implementation: The time for
delays and denial is over The history of International Anti-
Corruption Day
Mr. Mark Riggio, President of the
Ballastwater Equipment Manufacturers’ Fighting corruption is one of the
Association (BEMA) talks about the current biggest impediments to achieving
challenges toward BWMC implementation, the Sustainable Development Goals
highlighting that the deadline for a BWTS (SDGs). The 9th of December marks
installation expires, thus the sooner they the International Anti- Corruption
start planning, the better. As explained, Day. Every year, UNODC and UNDP
more than 80% of the world’s fleet by develop a joint global campaign,
tonnage flies the flag of an Administration focusing on how corruption affects
signatory to the Convention. That means for education, health, justice,
each of these ships, starting in September democracy, prosperity and
2019, when their IOPP renewal is done, they development
will need to install a BWTS, therefore having UNCAC was adopted by the United
a plan in place is crucial. In this regard, Nations General Assembly on 31
BEMA aims to help by rebuilding the trust October 2003. It was opened for
between manufacturers and the shipping signature in Mérida, Yucatán,
industry and provide a unified voice and Mexico, from 9–11 December 2003
technical support to facilitate compliance. and thereafter at UN headquarters
in New York City. It was signed by
SAFETY4SEA: Tell us a few words about 140 countries. As of August 2018,
BEMA. How did the need for this new there are 186 parties, which includes
Association emerge and what are your 181 UN member states, the Cook
plans on the agenda with respect to Islands, Niue, the Holy See, the State
BWMC? of Palestine, and the European
Union.
Mark Riggio:
The Ballastwater Equipment Manufacturers’ Why criticizing corruption
Association (BEMA) was formed shortly after
MEPC 72 when the implementation Corruption can be defined as a
schedule of the Ballast Water Management serious crime that undermines social
Convention was delayed by two years. This and economic development in all
delay highlighted the need for the industry societies. There are lots of concerns
to be represented at the IMO and galvanized regarding the governments enabling
the manufacturers to action. Concurrently, corruption actions and lack of use of
we heard from the shipping industry that an force policy and oversight.
Association was needed to provide a unified Specifically, there are three main
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voice, technical support, and to answer the points that corruption infringes:
many questions that were being raised by • Enforcing law and order
ship owning associations and Flag • Protecting assets country of
Administrations at MEPC. It was in this origin.
intersection of requests from ship owning • Promoting transparency
associations and Administrations, along with
a galvanized base of BWTS manufacturers Corruption impacts the work and
that BEMA was born. lives of seafarers all over the world.
It makes the industry less safe, less
S4S: What are the biggest challenges profitable, and less sustainable. Even
towards BWMC implementation up to petty corruption inhibits the
2024? development of countries where
shipping is the key to sustainable
M.R.: One significant challenge facing growth and development
implementation of the Convention is
rebuilding the trust between manufacturers Shipping Industry: Where do we
and the shipping industry. As systems have stand
developed over the past decade, many
significant improvements have been made in Even if all companies have an
the performance, operability, and internal defense against unethical
capabilities of treatment systems. Some practices, corruption continue to
owners with experience based on early- exist; from false certificates and
generation systems have a negative checklists to briberies regarding
perception of their performance. This has safety inspections and so on. As of
created distrust and fear that the systems now, MACN has collected over
they will purchase will not work. This fear 19,000 reports of corrupt demands
has delayed implementation and is forcing globally.
bottlenecks in the supply network that are Ways to minimize corruption in
not necessary. If there was sufficient trust shipping industry
between ship owners and BWTS • Establish more anti-corruption
manufacturers systems could be purchased bodies
and installed in a more deliberate, planned • Adopt a collective action
way. approach
Another significant challenge facing • Put more pressure on enhancing
implementation of the Convention is how transparency
differing flag and Port State Control will • States must take measures to
implement the rules. Both BWTS ensure maritime services are subject
manufacturers and ship owners need to safeguards that promote
consistency to facilitate taking the necessary efficiency
actions to comply. BEMA fully supports the • Promote awareness of
IMO’s Experience Building Phase (EBP) and corruption
looks forward to opportunities to contribute • Promote practices aimed at
information, and encourages ship owners preventing corruption
and Administrations to participate.
Regulation at the international,
S4S: What needs to be further discussed/ national, local government, and
clarified at next MEPC with respect to corporate levels is vital to tackling
BWMC? corruption. Where there is legal and
M.R.: BEMA believes that two primary policy ambiguity there is room to
issues will drive the next round of discussion abuse the system. But action must
at the IMO: Port State enforcement and go beyond writing new or more laws
contingency measures. Ship owners need to
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understand what Port States plan to do John Sypnowich, MACN, said earlier
during their onboard surveys. Questions this year to SAFETY4SEA.
remain whether system checks will be
largely administrative, whether indicative MACN: A Significant Anti-
tests will be done to verify system function, Corruption Initiative
or whether full compliance tests will be MACN initiative was established in
periodically done. 2011 as an industry-led collective
There is also a critical need for vessels to action initiative, to stamp out
have adequate plans in place for when corruption in the maritime industry
systems are either not functioning properly and to promote inclusive trade.
or when water conditions in the port exceed Having now grown to over 90
the system design limitations of an installed companies across the maritime
system. Each of these discussions provides industry, MACN’s members
BEMA with a strong platform to provide represent a significant percentage of
unbiased, technical viewpoints to the IMO the total global tonnage and play a
and ultimately provide input to the decision- key role in ocean transport.
making process. If corruption is a disease,
transparency is an essential part of
S4S: Have you noticed any specific its treatment
problematic trend with the implementation Kofi Annan
of the BWMC so far? What is your feedback
and your advice to the industry to move 21. Explains Blue Economy
forward?
There is currently poor security
M.R.: BEMA envisions being a source of situation in shipping industry which
information that could help answer this type creates uncertainty and prevents the
of question technically, but has not yet had full potential of the blue economy;
an opportunity to assemble such data into a responsible fisheries, oil
usable format. That said, BEMA currently exploitation, sea transport and even
sees three primary problems inherent with tourism.
implementing ballast water treatment “We can only hope that 2019 will
onboard vessels: inspire regional and international
1) Proper time is not invested into the players to improve the security
planning and design of the BWTS situation and allow the blue
installation; economy in the littoral states to
2) System installation plans and designs are flourish,” says Jakob P. Larsen, Head
intended to ease installation of the system of Maritime Security, BIMCO
for the shipyard, not to ensure that the
system is installed in accordance with the 22. Explains How EU is working for
manufacturers' instructions to promote safer and cleaner oceans
proper system function over its lifespan;
and The UN Convention on the Law of
3) Opportunities for integrating the BWTS the Sea (UNCLOS), signed by 157
with the ship’s central automation system countries 25 years ago, was the first
are often not thought about during planning. form of international law for the
If this is not addressed during design and oceans governance, acting as a
installation, it will often leave the crews with cornerstone to launch the basis
significant extra work when using the of UN’s 2030 Agenda for Sustainable
systems. BEMA’s advice to industry is to Development and serving as EU’s
coordinate closely with the manufacturer as framework for policymaking. The
early as possible in the process and to listen adoption of the Integrated Maritime
to their experiences and lessons Policy by the EU aligns internal
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learned. Many issues could be avoided if the policies under its umbrella and
manufacturer is seen as a partner to, and a serves as basis for external
resource for, the overall project team. cooperation.
S4S: Where do you see the market is going In 2016, the EU has
in terms of timeframes and vendors adopted an agenda for the future of
competition in the short term? Should we oceans to improve international
expect more type approvals within the IMO governance of the seas and promote
and/or USCG? blue economy. This was
encompassed by a strategy to boost
M.R.: We expect to continue to see new growth, €350 million investment in
Type Approvals both on the IMO and US research and, recently, a 23 steps
Coast Guard side as additional technologies, commitment to improve the
solutions, and vendors come on line. The conditions at sea.
shipping industry is very diverse and there is
a need for many different types of solutions Presented during 2018’s Our Oceans
to meet the many different vessel operating conference in Bali, these new
profiles. We would expect that as the initiatives, from Research to seafloor
market matures, there will be some measure mapping and funding to make EU’s
of consolidation and contraction, but in the blue economy more sustainable, are
near term we expect that the market is a symbol of EU’s determination to
right-sized for the number of active vendors make the oceans cleaner. One of the
currently serving it. commitments entails close work with
the UN Environment Program and
S4S: Is crew training an issue with respect to cooperating with South-East Asia on
BMW? What do shipowners need to think fighting marine litter.
about the crew and their understanding of
these systems and their installation? In the field of maritime security, EU
adopted the Maritime Security
M.R.: Crew training has been identified by Strategy (EUMSS) and Action Plan in
many as a critical issue with respect to BWM 2014.
and BWTS. As a trade Association, BEMA
cannot comment on specific training In the aftermath of the UN Security
requirements for specific systems, but we do Council Resolution of 2008, the
recommend that ship owners carefully deployment of EU’s first naval
consider the training available, complexity of operation, EU Naval Force
systems being offered, and the crews on (EUNAVFOR) Atalanta, became a
their vessels when selecting a BWTS for valuable asset in addressing these
installation on their ships. threats. Atalanta has contributed to
the decrease in the number of pirate
S4S: A new Act affecting BWM signed into attacks and the capacity building of
law (VIDA) with implications on EPA VGP as local forces. Since October 2016, no
well. What changes should we anticipate hostages or vessels have been held
with that development? What could be the and from 176 attacks in 2011 and
challenges ahead? only 4 four failed attacks were
recorded in 2018.
M.R.: The new Vessel Incidental Discharge
Act (VIDA), recently signed into law in the In a bid to achieve a more holistic
United States, harmonizes the complex web approach to maritime security
of ballast regulations in the U.S. While this is threats, the EU has recently revised
a universally good thing, there are a number the EUMSS’s Action Plan,
of steps before we know exactly how this "promoting international
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will affect vessels doing business in the cooperation, maritime

waters of the United States. BEMA is multilateralism and the rule of law at
standing ready to offer assistance to the sea, in line with the strategic
agencies writing these new regulations and priorities identified in the EU Global
harmonizing these requirements into a new Strategy", according to the High
set of standards. As with any potential Representative / Vice President
change, the challenges of VIDA lie in the new Federica Mogherini.
areas of uncertainty for ship owners. With a
potential four-year timeframe between the By approaching maritime security in
signing of the law and the publishing of a a broader spectrum encompassing
new standard, though, this uncertainty will cyber, hybrid, nuclear threats; by
have little impact on the BWMC respecting regional ownership and
Implementation Schedule. joint actions in security responses; by
promoting a stronger collaboration
S4S: What is your key message to industry across borders and sectors and
with respect to BWMC implementation? increasing awareness on global
M.R.: BEMA has one key message with maritime security, the revised Action
respect to BWMC implementation: get Plan aims at building resilience and
started. The time for delays, indecision, enhancing cooperation to deliver
obfuscation, and denial has ended. More tailored regional responses.
than 80% of the world’s fleet by tonnage
flies the flag of an Administration signatory This is in line with EU’s action in the
to the Convention. That means for each of face of the escalation on piracy
these ships, starting in September 2019, attacks at the Gulf of Guinea.
when their IOPP renewal is done, they will Under the umbrella of the “Strategy
need to install a BWTS. If that installation is for the Gulf of Guinea” and Action
planned to be done during a yard period, Plan, adopted in 2014, the EU has
which is preferable, then that yard period been supporting regional
may occur months before the IOPP due authorities from the Economic
date. For many ships, that yard period will Community of West African States
occur this Spring or Summer. If you do not (ECOWAS), the Economic
have a plan in place, you are already too late Community of Central African States
in many cases to adequately plan for your (ECCAS) as well as the Gulf of Guinea
installation. Do not delay. Start planning for Commission (GGC) to implement
your compliance now. the Yaoundé Process, a regional
maritime architecture that builds on
Mark Riggio is the President of the information sharing; reporting
Ballastwater Equipment Manufacturers’ systems; and capacity building.
Association (BEMA). BEMA is an
independent trade organization 23. Explains Changing trading
representing vendors, suppliers, and key patterns
partners in the ballast water treatment
industry by providing coordinated, technical, According to the Global Maritime
non-commercial guidance to the market, Issues Monitor 2018 report, one of
including the regulating community, ship the drivers of changing trade
owners, and the testing community about patterns in shipping industry is the
how ballast water treatment systems work, continued rise in importance of
how they are designed, and what the emerging economies, not least in
reasonable expectations are in regard to Asia, which is fueled by broader
their performance. demographic and economic trends,
and supported by significant
investments in infrastructure such as
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those being embarked on in the

context of China’s trillion-dollar
undertaking, Belt & Road
Initiative (BRI).
“The impact of the trade conflict
between the world’s two largest
economies is leading to serious
consequences for economic growth
and global trade. While we don’t
foresee any negative impact on
demand for dry bulk shipping in the
short term, tariffs and retaliatory
measures could alter trade flows and
we may begin to see long-term
realignment of global markets.” Jan
Dieleman, President of Cargill’s
ocean transportation business
24. Explains Timeline of Belt and

Road development
Comprising the Maritime Silk Road

and the Silk Road Economic Belt, the
One Belt One Road (OBOR) concept,
introduced in 2013 by the Chinese
government, focuses on connectivity
and cooperation
between Eurasian countries on all
fronts, infrastructure, trade, and
joint investments aiming to a more
efficient, green and sustainable
transport through better logistic
solutions.
The development strategy has

grown significantly in just five years.
As of July 2018, more than 100
countries and international
organizations had signed the
cooperation documents with China,
expanding the scope from Eurasia to
Africa, Latin America and the
Caribbean, and the South Pacific
region.
Chinese news agency Xinhua cited a

timeline of key facts regarding the
development of the initiative
through these years:

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• In the autumn of 2013,

respectively in Kazakhstan and
Indonesia, Chinese President Xi
Jinping proposed the building of the
Silk Road Economic Belt and the 21st
Century Maritime Silk Road.
• The initiative's top-level design has
been completed, with basic
structures set up. Important
resolutions passed by the UN
General Assembly and Security
Council contain reference to it.
• On 8 Nov 2014, China announced
40 billion US dollars to set up a Silk
Road Fund to support the Belt and
Road projects.
• On 28 March 2015, China released
the vision and actions on jointly
building the Silk Road Economic Belt
and 21st Century Maritime Silk Road.
• On 25 Dec 2015, the China-
initiated new multilateral financial
institution Asian Infrastructure
Investment Bank was established.
• On 14-15 May 2017, the first-ever
Belt and Road Forum for
International Cooperation was held
in Beijing, attended by state and
government leaders of 29 countries.
The more than 1,600 participants
came from over 140 countries and
80 international organizations.
• On 24 Oct 2017, pursuing the Belt
and Road Initiative was written into
the Constitution of the Communist
Party of China.
• About 95% of the 279 items on the
outcome list of the Belt and Road
Forum for International Cooperation
had been accomplished as of July
2018. The 14 others are being
worked on.
• As of 26 Aug 2018, the number of
China-Europe freight trains has
reached 10,000.
In the past five years, China's trade
in goods with countries along the
Belt and Road exceeded 5.5 trillion
USD. Chinese direct investment in
the non-financial sectors of these
countries reached 80 billion US
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dollars.
According to Xinhua, in the past five
years, China has also set up 82
overseas economic and trade
cooperation zones in countries along
the Belt and Road, investing 28.9
billion US dollars and creating about
244,000 local jobs.
In the first seven months of 2018,

Chinese companies raised
investment in 54 countries along the
Belt and Road. The 8.55-billion-USD
newly added investment
represented an 11.8% increase year
on year. New construction contracts
along the Belt and Road worth 57.11
billion USD.
25. Explains Global economic crisis
As mentioned above, shipping

industry has been hard hit by several
geo-political obstacles i.e. the trade
war between the US and China.
Trade cannot be seen in isolation
from wider geopolitical
developments, since geopolitical
conflicts often spill over directly or
indirectly onto trade flows.
According to the International
Monetary Fund (IMF), in the broader
scope of future growth, the industry
should look towards emerging and
developing countries.
“Advanced economies’ growth is on
a downward trend and has been so
since the mid-2000s. Such a
development affects every shipping
sector across the globe – in different
ways, naturally,” says the IMF.
26. Explains Watch: US-China

tension listed as the second top risk
for 2019
In its latest annual forecast, Eurasia

marked the US-China tensions at the
second place of the top risks the
world will have to encounter in
2019. Despite the temporary halt of
tariff escalation announced at the
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G20 meeting in Buenos Aires last

month, Eurasia remains 'concerned
about the world's most important
bilateral relationship'.
We're not confident the trade and

economic disagreements will be
resolved anytime soon. And
something more fundamental has
broken in the relationship between
Washington and Beijing that can't be
put back together, regardless of
what happens to their economic ties.
Major shippers around the globe

have expressed their concerns about
the tariffs and the trade war
between US and China. On trade, it
remains to be seen whether last
month's truce can be turned into a
longer-term peace:
The issue to be resolved is the

fundamental nature of China's
economic system—something Beijing
is unlikely to compromise on. That
makes a comprehensive deal hard to
reach, an effort to “paper over”
differences hard to sustain. At issue
is the fundamental nature of China's
economic system— something it is
unlikely to compromise on.
The report mentions that a deal on

tariffs would not end economic
friction between the US and China.
US economic grievances are
bipartisan and therefore harder to
resolve regardless of next steps. US
and Chinese supply chains and
technology cooperation will
continue to fragment even if tariff
threats recede.
As part of Trump's determination to
reduce reliance of US companies on
inputs from China, the US will
continue to use non-tariff barriers,
including investment restrictions,
export controls, financial sanctions,
and criminal indictments. China will
reciprocate with its own non-tariff
measures—from its cyber security
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laws to antitrust decisions. Moves on

both sides will disrupt firms and
broader industries, increasing costs
and decreasing collaboration.
Perhaps more importantly, even if

the US and China can resolve their
trade tensions, and even if they can
keep the economic competition civil,
the limited trust that underpins the
US-China relationship appears to be
gone.
Further, the report notes, Beijing is

less ready to take the gloves off—
partly because it feels China is not
ready to challenge the US—but
rising nationalist sentiment makes it
unlikely that Beijing will ignore US
provocations. Structural competition
and dangers will shape the
relationship—in the technology,
economic, and security arenas.
Tensions will grow regardless of
what happens on the trade issues
currently making headlines.
This new competition means areas of

discord will become more escalatory
in 2019. Neither side wants a direct
military confrontation, but there is a
greater chance that an accident—
such as a collision in the South China
Sea—becomes a full-blown foreign-
policy crisis. The two countries in the
past have successfully navigated
several such near-crises, including
the collision between a US spy plane
and a Chinese fighter in 2001. Doing
so again would be much harder in
today's climate.
EVALUATE
Questions:
1. Studies and regulations continue

to try to reduce emissions and
mitigate impacts; what are these
activities which focus on improving
engine fuel efficiency?

PNTC COLLEGES
2. Alternative technologies for

marine fuels and energy sources
have great potential for improving
the environmental footprint of
waterborne commerce. What
alternative technologies are these?
3. The combination of fine

particulates and hazardous air
pollutants can have significant
impacts on human health, what are
the possible ailments and diseases?
4. Computing power and the

availability of detailed vessel data
have increased significantly, allowing
for improvements to marine vessel
emission inventories. These
improvements include linking of
automatic identification system (AIS)
vessel traffic data to individual vessel
characteristics. Who compile all
these data?
5. It is the cornerstone of IMO’s

2013 mandatory measures to reduce
GHG emissions, which require vessel
manufacturers to use the Energy
Efficiency Design Index (EEDI) for
new ships and the Ship Energy
Efficiency Management Plan
(SEEMP) for all vessels. What is this
measures?
6. EPA has been tightening marine

vessel emission standards since 1999
for all marine engine categories.
Early regulations focused on
standards that are implemented at
the time the vessel is constructed
and only affect U.S.-flagged ships.
Recently, ECA rules have been
developed that require that all
vessels traveling through the ECA
comply with the same schedule of
emission and fuel standards.
The North American ECA (NA-
ECA) includes the waters within 200
nm of the coast. What are the sea
areas that comprises the North
American ECA (NA-ECA)?

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7. Marine vessel movements are

associated with a broad range of
environmental impacts; variations in
vessel traffic patterns can change
the extent and location of the
impacts. These impacts can affect air
quality, water quality, release of
invasive species into vulnerable
ecosystems, and noise pollution.
What examples of new areas are
affected by changes in traffic
patterns?
8. Resource extraction, such as

undersea oil, gas, and minerals, has
become increasingly important in
Arctic region. Exploration and
recovery require a variety of marine
vessels at the sites and then
traveling to markets. How many
percent of the undiscovered oil and
gas resources are in the Arctic
according to U.S. Geological Survey?
9. Enhancements to the Panama

Canal or the development of a
second canal in Nicaragua will allow
significantly larger ships (more than
twice the size of current Panamax
vessels) to transit the isthmus and
are expected to result in significant
changes to global shipping patterns.
Use of these larger vessels will
increase emissions in the Canal
Zone, corresponding shipping lanes,
and the ports that these larger
vessels visit. Many of these ports are
also investing billions to deepen
entrance channel and raise bridges
to allow port calls for these larger
vessels. What will be the impact of
these larger vessels in the canal
zone?
10. Vessels act directly as a vector

for introduction of invasive,
nonnative species to new areas.
Invasive, nonnative species often
out-compete native species and can
dramatically reduce biodiversity.
This can significantly impair the
resilience of coastal and marine
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ecosystems, resulting in both short-

term and long-term economic and
environmental impacts. What are
these impacts?
11. Vessel emissions increase

atmospheric CO2, which reduces the
ocean’s pH (pH the acidity of a
liquid), a phenomenon known as
ocean acidification. Vessel
discharges contribute to increased
nitrogen, which further contributes
to ocean acidification. Ocean
acidification harms marine
organisms that have calcareous
exoskeletons. Many of these species
are important habitat formers or are
recreationally or commercially
important. What are these marine
organisms?
12. Channel deepening, widening,

and increased dredging have
environmental impacts that
includes: Water quality is diminished
by increased suspended sediments
and associated contaminants,
habitat disruption, increased
underwater noise, and vessel
collisions with federally listed
species and more. What can be
transported through ballast water?
13. What can pose varying degrees

of risk to the environment at
offshore production sites and along
the associated supply chains?
14. The effects of sound vary

depending on its intensity,
frequency, and duration. Effects are
species specific and range from
behavioral responses such as
avoidance to injury and death.
Effects are most severe for species
that are susceptible to barotrauma
effects, what are these species?
15. Any of these expected changes

can cause transportation
disruptions, failure of transportation
infrastructure, and increased long-
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term maintenance or replacement

costs, what are these changes?
16. Quiz will be uploaded in Edmodo
EXTEND
• The current extent of the Arctic ice

cap is approximately 40% smaller
than it was in 1979. Continued
shrinkage in the ice cap, projected to
disappear in the next 15 to 25 years,
would allow for development of
Arctic shipping lanes between Asia
and Europe that avoid both the
Panama and Suez Canals. These
Arctic routes would reduce ship
travel distance between these two
markets by 5,200 mi, cutting transit
time by an estimated 30%. Two
possible routes include:
• The Northern Sea Route (NSR),
which transits Russian Arctic waters,
and
• The Northwest Passage (NWP),
which transits territorial waters of
the United States and Canada. In
your opinion, would these routes
can be used all year round and
potentially offer a commercially
viable alternative to the Panama and
Suez canals?
• Construction of a new canal route

in Nicaragua and the resultant
increased vessel traffic could harm
several fragile ecosystems. The route
could change the salinity regime and
hydrodynamics, and increase
underwater noise, spill potential,
and air emissions. In your opinion,
does the Potential Areas for
Research that been conducted on
the impacts in Panama Canal
expansion must be done also to all
projects which will have an impact
on air pollutants, environmental,
climate change and human health?
Explain.
Submit or upload your answers in

Edmodo.
PNTC COLLEGES
References:
• Transportation Research Board Transportation Research Number E-C206 April 2016
• By MI News Network | In: Shipping News | Last Updated on January 24, 2017
Revision Status:
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Issue Date:
September 17, 2020

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PNTC COLLEGES

Zone III, Lt. Cantimbuhan St. Poblacion, Dasmariñas City

COLLEGE OF MARITIME EDUCATION

COURSE CODE SHP 305 PRE-REQUISITE NONE

Top 10 issues concerning the future of 1. Understand the top 10 ENGAGE

12. Illustrate how EU is

In an exclusive interview with SAFETY4SEA

SAFETY4SEA: How your organization may “Discussion of the topics with

S4S: In your view, what would be the

issue in the past year. In the last

It's tempting to use a capability

However, how can associations and After taking a cautious approach

undermine our network

3. Lack of certainty: • Ransomware

According to Christine Loh of the Hong Kong In other words, it is a cryptographic

5. Lack of openness: This threat refers to any malicious

manage and transmit large volumes of data.

but also significantly towards the a change in safety perception,

9. Opening of new opportunities and accident investigations under Safety-

The idea on the autonomous ship is This separation may seem

understand the deeper causes that

sailing to USA, an approval from USCG is a benefit. The 2018

will affect vessels doing business in the cooperation, maritime

those being embarked on in the

24. Explains Timeline of Belt and

Comprising the Maritime Silk Road

The development strategy has

Chinese news agency Xinhua cited a

Form No. BPM2-CME 20 F-009 SHP 305(Module 3)

• In the autumn of 2013,

In the first seven months of 2018,

25. Explains Global economic crisis

As mentioned above, shipping

26. Explains Watch: US-China

In its latest annual forecast, Eurasia

G20 meeting in Buenos Aires last

We're not confident the trade and

Major shippers around the globe

The issue to be resolved is the

The report mentions that a deal on

laws to antitrust decisions. Moves on

Perhaps more importantly, even if

Further, the report notes, Beijing is

This new competition means areas of

1. Studies and regulations continue

Form No. BPM2-CME 20 F-009 SHP 305(Module 3)

2. Alternative technologies for

3. The combination of fine

4. Computing power and the

5. It is the cornerstone of IMO’s

6. EPA has been tightening marine

Form No. BPM2-CME 20 F-009 SHP 305(Module 3)

7. Marine vessel movements are

8. Resource extraction, such as

9. Enhancements to the Panama

10. Vessels act directly as a vector

ecosystems, resulting in both short-

11. Vessel emissions increase

12. Channel deepening, widening,

13. What can pose varying degrees

14. The effects of sound vary

15. Any of these expected changes