Vol. 16 No. 5 September/October 2019

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Voicesfrom theSeafarers
Page 3‘Fune de Hakken’ program soars
71 fifth graders from
Suwa Elementary
School invited onfield trip fromPort of NagasakiT

he All Japan Seamen’s
Union (JSU) held an
event on Sept. 6 at thePort of Nagasaki, inviting 71 fifth graders from Nagasaki City Suwa Elementary School.
Entitled “Fune de Hakken” (Discoveries on board Vessels), theevent allowed the students to makeseveral on-board experiences.
The elementary-school children
set sail from the Port of Nagasaki on board the Graba (Glover)owned by Nomo Shosen K.K., listening to an announcement introducing the port and nearby areas.
They went on a trip to view the
Ohato Terminal, the Main Plant
in Tategami of Mitsubishi Heavy
Industries, Ltd. (MHI)’s Nagasaki
Shipyard and Machinery Works,
the Megami Ohashi Bridge andthe MHI Nagasaki Shipyard andMachinery Works’ Koyagi Plant.
Enjoying views that they cannot see in their regular lives, they

Dozens of fifth graders wereinvited to learn seafarers’ duties on board Glover Nomo
Shosen (right).

learned about the Port of Nagasaki, which has developed throughthe shipbuilding business. Whileon board the vessel, they attended
a question-and-answer session andexperienced rope work, throughwhich they learned seafarers’ onboard duties.

Youth invited on board ‘Ehime’, ‘Akatsuki’ at Ehime port
One-day field
trip provided atmariner school
The All Japan Seamen’s Union(JSU) invited elementary schoolaged children to a one-day seafarers’ school on Aug. 27, 2019 at
the Port of Yawatahama in Ehime
Prefecture.
A total of 100 fourth- to sixthgrade elementary-school students
from the prefecture’s Nanyo area
went on board vessels of Uwajima
Unyu Ferries. They left Yawatahama and made a round trip to andfrom the Port of Beppu in Oita
Prefecture.
In the on-board experience program, the children joined a tour
to observe pilothouses and engine
rooms, while study sessions were
given to help them learn about
ships and marine creatures to help
them come away with wonderful
memories on their summer vacation.

Elementary children (above) from Nanyo in Ehime Prefecture
are given the opportunity to make summer vacation memories
aboard Ehime (right) and Akatsuki, two ferryboats belonging to
Uwajima Unyu Ferries.

MARITIME NEWS(2)

SEPTEMBER/OCTOBER 2019

Could N-powered ships help meet emissions target?

Nuclear power as afuel for ships is acompletely
zeroemission solution –it does not emit any SOx, NOx,
CO2 or particulates. The technology is also millions of times
more power-dense than fossil
fuels and alternative fuel options
that are currently being considered like methanol, ammonia andhydrogen. In terms of meeting
the IMO’s 2050 greenhouse gas(GHG) reduction ambition, it’s
the only proven solution available
today, capable of replacing fossil
fuels in all marine applications.
The technology is far fromnew – the first nuclear power
plant became operational in1955 with the US Navy. Since

then, there has been around 700
reactors operational at sea, andcurrently there are about 100.
This equates to thousands of operating years’ experience.
The technology is not just limited to navies – there have also
been civil marine applications.
Russia has been operating nuclear merchant ships for many
years. At present this includes
nuclear-powered
icebreakers
with some of these vessels becoming passenger ships in thesummer, cruising to the artic
circle. Therefore, it could be argued that on the fringes of thecruise industry there are alreadynuclear-powered ships operating.
Nuclear power could be a par-ticularly attractive option for the
ferry industry, not only due tozero emissions, but also as it removes the need to bunker fuelwhenembarking/disembarking passengers, which becomes
more of a challenge with newfuels. Any future requirements
to use shoreside power to limit
emissions would be negated by
nuclear power. It would even be
possible to supply power fromthe vessel to shoreside as an additional source of revenue. Nuclear is currently excluded fromthe Energy Efficiency Design Index (EEDI) meaning that there
are no constraints in place forships operating using the technology.
Public perception and accep-

tance are significant barriers in
accepting this technology but
are the risks real or perceived?
Improved technological development over the years has ensured that fail safe mechanisms
are built into reactor designs
to negate concerns of radiation
leakage in the event of failure.
Mutual acceptance across nations for regulatory implementation will have to be in place
for adoption to increase.
Lloyd’s Register (LR) has over
60 years’ experience in providing quality assurance to global
land-based nuclear power operators. More recently, LR havebeen supporting a project inChina to develop new Floating Nuclear Power Plants. Our

expertise is grounded throughour Marine & Offshore services
together with our other businessstreams, Offshore and Energy
and Business Assurance & Inspection Services.
In 1966, LR issued ‘Provisional Rules for the Classification of Nuclear Ships’ but thesewere since withdrawn – however, in 2010, following interestin the technology from several
clients, we developed a framework of principles to be considered when exploring the use of
nuclear. Through this goal-based
approach LR can help our clients assure the design, construction and operation of nuclearpowered ships. (Source: Lloyd’s
Register)

Sustainability goals bring challenges for shipping industry
The International Maritime Organization (IMO) has set ambitious targets for the shipping industry. In addition to the 2020
Global Sulphur Cap, shipowners
and operators must consider thegreenhouse gas (GHG) targets for2030 and even more ambitious
emissions goals for 2050.
The regulatory changes set for
2020—as well as those expected
for 2030 and 2050—will be moredisruptive than any past environmental regulations. To achievecleaner and low carbon emissions,the shipping industry will need abetter understanding of existing
technologies and strategies while
new technology (including fuels)
will need to be developed.
The new ABS Low Carbon
Shipping Outlook defines shiptechnologies, operational efficiencies and alternative fuels andenergy sources needed to reach2030 and 2050 targets. This outlook is a tool to help shipowners
understand the task ahead andeffectively assess their options fora transition to low carbon operations. Key takeaways include:• 2030 targets can be met withavailable technology – slower
speeds, improvements in operational efficiency, limited use of
low-carbon fuels, and energy efficient designs.
• Fuels are in focus to achieve
2050 emissions targets. Our conceptual designs confirm that thefuel technology today does notmeet the 2050 demands.
• There will be challenges involved with scaling alternative
fuels. To fully understand what it
will take to adopt alternative fuels
globally, we can compare to LNG
as fuel. It has taken ten years for
LNG bunkering infrastructure todevelop and supply less than 1%of the global fleet. Other alternative fuels will face similar infrastructure development, regulatory
and supply chain challenges.
Path to Decarbonization
for Marine Industry
Shipowners and operators havebegun exploring more fuel-efficient vessels and low carbon fueloptions, but today’s technology
alone will not be able to meet
tomorrow’s efficiency, air pollution and carbon emission requirements.
In the short term, options tomeet IMO 2030 emissions goals
include: speed reduction andspeed optimization; improvements in design efficiency; andfuels with lower CO2 emissions,such as LNG and LPG.
Improvements to the energy efficiency of ship designs will not beenough for 2050 GHG reduction

targets without alternative, lowcarbon fuels.
There are currently no truly “zero-carbon” fuels at a larger scaleand “carbon-neutral” biofuels aretested in limited quantities. All alternative fuels known at this time
have certain limitations. Thereis no obvious fuel choice for the
global fleet. For the immediate
future the fuel solution far a vast
part of international shipping remains a choice between a variety
of fuel oils or LNG.
Impact on Sustainabilityof the Industry
Markets are a powerful incentive
for innovation, and regulationis needed to establish common
goals. When it comes to reducing
GHG emissions for shipping, notonly will supporting regulation
potentially have an impact onship designs, fuel selections andvessel operations, it may also affect the choice of cargoes that willbe transported, as well as the traderoutes and ship sizes.
In that light, the industry willneed regulation that provides acompliance process that is technically proven, safe and commercially sustainable, one thatencourages early adopters of newtechnologies.
Without this, the regulatory
risks will loom over shipowners
as they prepare for the next 30
years.
Lowering the carbon footprintof an industry that moves almost
90% of global trade is a significant undertaking. Change on thatscale will not come quickly, great
efforts will be required to ensurethat shipping’s positive contributions to global trade and the economy remain visible for all to see.
(Source: ABS)

Shipping’s great fuel switch is starting to drive up freight costs
The cost of shipping commodities by sea surged to the highest in almost nine years as vesselowners start taking carriers off
hire to prepare them for sweeping new fuel rules.
The Baltic Dry Index, a measure of freight for everythingfrom coal to iron ore to grains,surged to 2,378 points on Friday, the highest since November
2010, according to figures fromthe London-based Baltic Exchange. Giant ships called Capesizes are earning almost $35,000
a day, the most in at least 5-1/2
years.
Baltic Dry Index of commodity shipping costs is surging
The maritime industry is preparing for one of the most significant changes in its recent history— a mandatory curtailment insulfur oxide emissions that will
be imposed in just over threemonths’ time. In order to comply, thousands of ships are being
taken out of the market to fit
equipment called scrubbers thatwill allow them to keep burning
today’s cheaper fuel. The shipsthat don’t have them are expected
to have to pay more.
“The main reason is that arising number of vessels aregoing off-hire to retrofit scrubbers ahead of the January 1
deadline.” said Burak Cetinok,head of research at Arrow Shipbroking Group in London. “Basically, you’ve got strong export
volumes on the one hand andrestricted vessel supply on theother. This has been boosting
the rates.”
Rates are also surging because
ships were taken out of the mar-ket for scrapping earlier this year
when a dam collapse in Brazil
prompted Vale SA to shutter
some mining operations, choking off iron ore cargoes and sending rates plummeting, according
to shipping industry association
Bimco. That demand growth has
now returned to a smaller fleetof available ships, boosting earnings.
“It was a horrific first quarter for the capesizes,” said Peter
Sand, chief shipping analyst attrade group BIMCO. “Whencapesize freight rates were really low in the first quarter,
loss-making for everyone, shipowners decided to scrap excess
tonnage in the global market
and that — in combination
with the return of iron ore outof Brazil and strength in iron ore
out of Australia — has lifted thecapesize market since July.”Rates are surging across all
the ship sizes that the Baltic Exchange monitors. Panamax carriers, one size down from Capesizes, are making $18,000 a day, themost since 2010. Handysizes, at$9,700 are earning the most for
the time of year since 2011.
Iron ore producers are making
up for previously lost production
while deliveries of new ships isslowing, said Jonathan Chappell,an analyst focusing on marinetransportation equities at Evercore ISI, adding that dozens ofships have been removed fromthe fleet to fit scrubbers.
“So it’s a simple case of incremental demand exceeding incremental supply right now,” hesaid.
As well as the fuel switch,freight rates are being buoyed byrelatively slow fleet growth anddemand that’s held up despite a
trade war between the U.S. andChina, according to Cetinok.
Total supply of commodity
carriers will grow by almost 3%
this year. At times in the past
decade the fleet’s capacity has expanded by well over 10%, datafrom Clarkson Plc, the world’s
largest shipbroker.
Still, the recent strength may
not last, according to Bimco’sSand. Iron ore imports into China have come down by 5% in thefirst seven months of the year —something that’s bad news for amarket that relies on the Asian
country to boost the flow of cargoes.
“I would not expect the nineyear high to last the full year, I
would expect more volatility,” hesaid. (Source: Bloomberg)

SEPTEMBER/OCTOBER 2019

SEAFARERS’ CORNER(3)

VOICES from SEAFARERS

Capt. Reynaldo A. Toledo and Crew of
MV BRIGHT WIND
The information disseminated by JSU staff is well appreciated. We had come to the conclusion JSU is of themembers’ welfare. Thank you!!

Capt. Victor V. Alo and Crew of MV SIMURGH
JSU is known for checking the members’ well-being.
We support the continuation of this activity as it is beneficial to the members. More power to all staff!

Superintendent and Crew of MV KING CORN
We are proud of the JSU campaign in improving theseafarers’ working and living conditions. We suggest lifechanging technology should be introduced to inspire everybody on the trade. Good luck!!

Officers and Crew of MV MIDNIGHT DREAMBest wishes to our fellow seafarers and shore based staff.
We are hopeful of your safe voyage all the way throughyour goal and destination. Happy sailing to all!

Capt. Rolando N. Fial and Crew of
MV AYE EVOLUTION
Finally, with your explanation, we were able to understand our Provident Fund, the importance of union dues
and how to avail the different benefits provided by theUnion. Thank you so much for the explanation you gave
us and we hope you visit us again when we are in Japan.

Capt. E.D. Ladao and Crew of
MV GLOBAL AQUA
Thank you for visiting us in Yokohama to check theworking and living conditions of the crew and updating
us with the current information regarding seafaring.

1AE Jose S. Conanan and some Crew of MV IBI
It is a pleasure visited by JSU personnel. After hearing
the union information, we’ve learned of our rights andbenefits from the present CBA. Visiting us again would bemuch appreciated.

Capt. Eduardo D. Alderite and Crew of
MV CORONA SPLENDOR
The officers and crew are thankful you visited our ship.
The JSU Staff had given us broad perspective of how theunion works and its goal in enhancing the welfares of the
ship’s crew and their loved ones. We are optimistic theunion would bind a wholesome maritime community.
God bless us all in aspiring for a sound shipping industry.

Capt. M. Genesela and C/O R. Layno and Crew of
MV CF DIAMOND
The officers and crew of MV CF DIAMOND were very
happy of the JSU Filipino Staff presence in International
Port of Yokohama. We appreciate your regular ship visits
to all non-domiciled members here in port of Japan.

Capt. Felix G. Villahermosa and Crew of
MV SIERRA NEVADA HIGHWAY
On behalf of the crewmembers, I am grateful to the JSU
staff for visiting us in Yokohama. Everybody is welcome
and we are glad to accommodate you again in the future.

C/E Reynaldo S. Quibilan and some Crew of
MV AZUL FORTUNAJSU staff explanations of the members’ retirement system is clear . We’ve learned the appropriate procedures inacquiring retirement fund when in due time. Thanks to
the information and more power.

Capt. Aquino C. Choresca Jr. and Crew of
MV GREAT PERSEUS
We value the JSU staff ship visitations. Every information about Provident Fund and membership fee wasclearly explained by the staff. This give the union a good
impression in taking care of the members’ welfares. Thankyou JSU!

(4)ADVISORIES/WARNINGSSEPTEMBER/OCTOBER 2019releases
IMO guide addresses scrubber malfunctions ClassNK
guidelines forA

review of the 2015
Guidelines on Exhaust Gas Cleaning
Systems (EGCS) is
underway at the International
Maritime Organization (IMO).
The guidelines include, among
other things, washwater discharge standards, but with all thecontroversy surrounding washwater discharges into the sea,
there is still work to do.
Elements of the guidelines
relating to malfunction of the
EGCS system or a monitoring
instrument were, however, approved by the IMO’s Marine
Environment Protection Committee (MEPC 74) in May. Therewas significant discussion aroundthis subject prior to approval of
official IMO guidance with themain sentiment being that ships

with scrubbers must not be allowed to use high sulfur fuel foran extended period if the scrubber isn’t functioning properly.
The guidelines recognize thattransitory periods or isolated
spikes in measured emissions
may occur due to sudden changes
in the exhaust gas flow rate andthat such spikes do not necessarily mean a breach of the requirements.
However, if the ship is unable
to fix an EGCS system malfunction, regarded as an accidental
breakdown, within an hour, it
should switch to compliant fuel.
If the ship doesn’t have sufficientcompliant fuel onboard to cover
the system downtime and has touse high sulfur fuel, it will needto communicate a proposedcourse of action, such as bunker-

ing compliant fuel and/or repair
works, for the agreement of therelevant authorities.
The advice is contained in
an MEPC circular (MEPC.1/
Circ.883): “Guidance on indication of ongoing compliance inthe case of the failure of a single
monitoring instrument, and recommended actions to take if the
EGCS fails to meet the provisionof the Guidelines”.
In light of the concerns raised
regarding discharges from scrubber systems, with a number ofports having unilaterally banned
the use of open loop scrubbers,
MEPC 74 agreed to commit to
an investigation of the environmental impacts of EGCS liquid
effluents by adding a new itemon the agenda called “Evaluation and harmonization of rules

and guidance on the discharge ofliquid effluents from EGCS into
waters, including conditions andareas” for the next meeting of
the Sub-Committee on Pollution
Prevention and Response (PPR).
In this context, it was agreed
that proper scientific assessment
is desirable so that any decisions
made are based on evidence.
IMO Member States and otherinterested parties have beenasked to provide funding so thatGESAMP, a group of independent scientific experts that provides advice to the UN system
on scientific aspects of marine
environmental protection, canestablish a task team to assess
the available evidence relating to
the environmental impact of discharges of exhaust gas cleaningsystem effluent. (Source: IBIA)

Disruptions in the global shipping industry explained
Oil shipping rates are soaring
following a series of sanctions
on a Chinese transportation giant and limitations placed on
movement of Venezuelan crude
oil tankers.
What has happened toshipping rates?
The cost of chartering a supertanker to send crude oil fromone country to another is rising
sharply. A South Korean importer paid more than US$12 million
in shipping costs for one crude
shipment from the U.S. Gulf
Coast. This was followed recently
by tentative charter of anothercrude vessel by Occidental Petroleum Corp. for $13.25 million toship in November.

What is affecting the costof shipping?
The United States in late September imposed sanctions on
two units of China’s COSCO
for their alleged involvement inbringing crude oil from Iran.
U.S. Gulf Coast exporters, inturn, have held back from chartering COSCO-linked vessels.
COSCO operates more than
50 supertankers, the largest vessels for carrying crude oil or fuelproducts.

Exxon is the largest U.S. oil company and a major shipper, and its
move caused rates to rise further,market sources have said. The
move comes several months after
the United States imposed sanctions on Venezuela in an attempt
to cut off the nation’s oil revenue
in a bid to oust President Nicolas
Maduro, who is accused of human rights violations and rigging
the 2018 presidential election.
Maduro calls opposition leader
Juan Guaido a U.S. puppet.

How is Venezuela involvedin this?
Last week, Exxon Mobil Corp
banned the use of vessels linked
to oil flows from Venezuela in thelast year, affecting some 250 ships.

Do the attacks on Saudi
Aramco’s facilities haveanything to do with this?
A small amount. After those attacks last month, shippers worldwide scrambled to secure cargoes

for big buyers in Asia, and manyof them turned to the United States. That boosted rates,
though the current surge is tied
more to sanctions on COSCO
and Exxon’s moves.
What else is contributing
to rising rates?
New maritime rules capping theamount of sulfur used in fuels
for shipping have added to rising rates, because they raise thecost for shipowners who had in
the past relied on “bunker fuel”– and as of Jan. 1 will have toswitch to cleaner-burning marine
fuel or diesel fuel. (Source: Reuterswith reporting by David Gaffen in
New York, editing by Matthew
Lewis)

Shipping firms seek clarity on new IMO rules to reduce SO emissions
Uncertainty continues to prevail
across the shipping industry overthe impending IMO regulations,
to reduce the level of sulfur oxide emissions from ship’s exhaust,
from January 1, 2020.
The amendments to the MARPOL regulations stipulates that
sulfur content in the exhaust fromships should be brought downfrom 3.5 percent m/m (Mass onmass) to 0.5 percent worldwide.
Major ports in the country are
now getting inquiries from shipping companies on accepting
scrubbers on ships in the respective ports.
“Installing scrubbers is an option to reduce the content in thegases before being released into
the air. The scrubbers would washthe exhaust gas from ships to bring
the sulphur content down before
releasing it to the atmosphere. The
water used for washing eventually
has to go into the sea,” sources in

the industry said.
However, ports such as Singapore are refusing to accept the useof scrubbers on ships in their ports
due to water pollution, said Tom
Joseph, president, Nautical Institute India (South West). There

which will not require any modifications on the ship’s engines.
It is estimated that the world’s
shipping burn about four million
barrels a day of fuel oil, which is avery low grade of oil.
“The shipping industry is also

Shipping industry is also worried over the shift to a
new form of fuel with its high cost involved
are also suggestions to evolve anational policy on that will be acceptable to India. Since the issue
pertains to the implementation of
MARPOL regulations, DG Shipping as the regulator of shippingin India and representing India in
IMO conventions, would be theauthority best suited to formulate
the policy.
Experts in the sector pointed
out that the new limits can also be
achieved by changing to cleaner
fuel such as Marine Diesel Oil

worried over the shift to a newform of fuel considering the highcost involved, which would behigher by at least 25 percent to 40
percent. The emerging situation
warrants developing a new blendof oil for ships and probably gas
oil with very low sulfur content
and it can be blended with heavy
fuel to lower sulfur content,” theexperts said.
According to Rajesh Unni,
Founder and CEO of the Chennai-based Synergy Group, theproposed regulation would be amajor boost to the environmental
performance of ocean freight anda fantastic leap for the industry,
as the sector push for sustainability and emission free operations.
There will be challenges and as anindustry, let's always be resilient
to such changes.
Asked whether the changes infuel norms provide opportunities for Indian shipyards to install
scrubbers in ships, Unni said, “Theopportunity for Indian yards towork on scrubber installations isalmost sailed. Shipyards in China,
Korea and Turkey have taken advantage and obviously are better
prepared than the Indian yards.”“However, there will be opportunities like the IMO goal of 50
percent reduction in CO2 emissions by 2050 and Indian yards
can find ways to seize such opportunities,” he added. (Source: The
Hindu Business Line)remote surveys

Leading Classification Society
ClassNK has released “Guidelines
for Remote Surveys” in preparation for carrying out remote surveys (*1) using ICT (Information
and Communication Technology) (*2). The guidelines outline
requirements to apply to remotesurveys for some types of occasional surveys, and from now on
ClassNK will implement remotesurveys that satisfy the requirements.
ClassNK has been working
on the advancement of surveys
using digital technology in research and development in linewith their R&D roadmap developed in 2017. The Society aims
to implement more sophisticatedand rational surveys using various digital technologies such as
IoT technology, ICT, big data,AI, condition monitoring/evaluation, and robotics. Specifically,
they aim to develop remote surveys using ICT, ship survey systems for both hull and machinery
based on condition monitoring/evaluation technology, and individual digital ship records using
digital twins.
For remote surveys using ICT,ClassNK has investigated and examined the types of surveys thatcan be applied, the types andamounts of information required
for remote surveys, and the requirements for the use of ICT,
ensuring reliability equivalent
to conventional witness surveys
with transparency in the application of remote surveys. The
guidelines are outcomes of theseresults and will be reviewed asnecessary in accordance with theprogress of related technology development.
ClassNK will continue to optimize their surveys using digitaltechnology and will strive forcontinuous improvement in survey quality and rationalization.
The Guidelines for Remote
Surveys are available at www.
classnk.com for those who haveregistered for the ClassNK “MyPage” service. (Source: ClassNK)

All JApAn SeAmen’S Union
15-26, Roppongi 7-Chome,
Minato-Ku, Tokyo 106-0032
Tel.: (03) 5410-8320
Fax: (03) 5410-8336
E-mail: iss@jsu.jp
Internet: http://www.jsu.or.jp
Publisher: Hiroyuki Tachikawa
Send inquiries to the attention of
Mr. Hiroyuki Watanabe,
Director, Foreign Trades Dept.