In the race to adopt renewable fuels for shipping, it’s clear that there is a knowledge gap, with around 700,000 seafarers needing to be trained in the safe handling of new fuels.
Julia Swales, Senior Editor at Transport Intelligence, interviewed Peter Schellenberger, Director and Founder at Novamaxis Pte Ltd Brand Ambassador and Advisory about this critical situation and the need for intermediate solutions.
The race is still on. There are new ships available, ready for alternative fuels such as LNG, ammonia and methanol, but key port supply chain security for green energy sources is lacking. Also, the engine manufacturers are still finalizing technology, dual-fuel approaches and recommendations (such as WinGD with ammonia). As usual, Singapore is leading the efforts and the first ammonia bunkering has happened there recently. The only green solution that is already available is replacing conventional fuels or adding to them with biofuels. These work with most current engine technologies and can be added to conventional fuel up to 100% (as proven on the Great Lakes). Of course, this too comes at a surcharge and discussions are ongoing about who will foot these bills.
The uptake of renewable fuels is directly related to the trade of these vessels. Container vessels tend to have liner traffic with usually maximum 14-20 key ports, which means that the supply of green fuels at some point will not be so complex. Bulkers and tankers can have up to 150 key ports, often in remote areas. This results in difficult bunker planning and higher costs for such operators.
The knowledge gap is huge. It is estimated that about 700.000 seafarers need to be trained in new fuels and safe handling (since for example ammonia is highly toxic). Training market leaders like Ocean Technologies Group are actively preparing the programs. Of course, there will be additional cost for owners/managers and the struggle between managers and principals will continue because of the need for continuous upgrading and the debate about who will pay for this. Crewing is basically commoditized as seagoing staff may change employers from contract to contract (especially if they work for managers who need to tailor their crew strength quickly around gained or lost fleets).
The training of crew before they start working (when they are qualifying) is going to change because of this, but also, post-covid not all officers or ratings pass by the crewing or owner office anymore, for briefing and physical training. This increases the need for meaningful online courses and ship/company specific programs, even digital twin efforts in the future. New skills will have to be certified and well documented in the seafarers’ data set and documents for easy verification.
Many types of renewable fuel are highly toxic. With strong standards, rules and training the risks may be reasonable but there will be difficult discussions in the industry once there is the first fatality, no matter what the reason for this may be.
Organisations such as IMO, flags and others are working on this, but due to their size and multinational nature they will need time for comprehensive solutions. Since the technologies or fuels are already in use and seafarers need to be protected, the industry must come up with self-imposed intermediate solutions for good operations. Also, bodies like Intertanko, Intermanager and others may be able to support this effort. Charterers will eventually only work with vessel owners who comply with either intermediate or regulatory solutions. It is likely that tankers and the container industry will lead the way due to their stakeholders.
Author: Julia Swales
Source: Ti Insight
Supply chain strategists can use GSCi – Ti’s online data platform – to identify opportunities for growth, support strategic decisions, help them stay abreast of industry trends and development, as well as understand future impacts on the industry.
Visit GSCI subscription to sign up today or contact Michael Clover for a free demonstration: [email protected] | +44 (0) 1666 519907
