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Navigating Regulatory Challenges: Industry Leaders Discuss Shadow Fleet, Decarbonisation and Prospects of Energy Shipping at Posidonia 2024
Shipping elite debates age of transition at prestigious Tradewinds Shipowners Forum
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Applied Technology Review | Wednesday, June 05, 2024
Shipping elite debates age of transition at prestigious Tradewinds Shipowners Forum
During a riveting opening panel session of the Tradewinds Shipowners Forum at Posidonia 2024, Harry Conway, Chair of the Marine Environment Protection Committee (MEPC) of the International Maritime Organisation (IMO), engaged in an in-depth discussion with senior representatives of the shipping industry on regulatory issues ranging from shadow fleets to alternative fuels.
“We should be concerned by dark fleet activity because of the safety of vessels and crew, as well as the protection of the marine environment. If elements within the industry circumvent the rules and regulations, we have a problem. Dark fleet vessels have no accountability because they operate under the radar; they don’t respect the rules, and the IMO is taking measures and actions to tackle the issue.”
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Michael Parker, Global Industry Head of Shipping & Logistics at Citi, agreed that the problem is profound. He said, “I am concerned, but we have to call it out; we are at war, and until the war is over and issues are resolved, it won’t be easy to find solutions. The IMO is powerless to enforce various things to improve transparency unless others are willing to take more impactful steps. Sanctions are not proving to be effective, but I am optimistic that we are in an age of regulation and transparency, and climate change and data are going to drive positive change. It’s really a question of enforcement. We hope peace will bring the restoration of more normal behaviour. We cannot allow the creation of shadow fleets to happen again.”
Christopher J. Wiernicki, Chairman and CEO of ABS, said that the industry is in the early innings of a decade of uncertainty. “A new age of safety, commercial compliance, and government accountabilities is here. This is a shared responsibility; the onus should not be just on the commercial side. The shadow fleet is a matter of concern. It has a different perspective compared to the rest of us; they have old vessels, poor inspections, lack insurance, and are riddled with mechanical failures and oil spills, which they simply regard as collateral damage. But as we move forward, environmental regulations are going to be global shipping shapers, so as we move forward, environmental regulations will be a big part of commercial decision-making."
Wiernicki added, “Our industry is divided into three types: the leaders who are taking decisions and placing bets today; then we have the fast followers, those doing some piloting and experimenting around fuels; and we have the very many who are actually doing nothing, waiting to see what will happen.”
In response to his remarks, Dr Conway said that there is indeed a greater sense of a common mission, even though there is still a polarisation between those who act and those who aren’t doing so much.
On the themes of decarbonisation and alternative fuels, the shipping industry seems to be in unison around the main challenges it is facing and the necessity of effective and impactful incentivisation policies for the energy transition in maritime to be successful.
“If the carbon cost is passed onto the supply chain and then to consumers, we are not making any progress toward shipping decarbonisation; instead, we should be using proceeds from the EU ETS to subsidise the industry in our quest to decarbonise. Other incentives could include the reduction of waiting times at ports for vessels that are more energy-efficient,” said Charis Plakantonaki, Chief Strategy Officer, Star Bulk Carriers Corp. “We need the IMO to provide more clarity on the measures they are planning and what the impact on our industry will be.”
Dr Conway concluded, “Clarity, pragmatism, uncertainty, shared responsibility – these are the key words of the industry, and these are the things we at the IMO strive to provide. The clarity the industry is craving is our priority as we study a lot of proposals on the table, each having its own implications for the transition, which is not going to be cheap. We have done comprehensive impact assessments, and come September, we will be able to make informed decisions as we try to provide the certainty the industry needs to make the right investment decisions.”
The scene for the decarbonisation discussion was set earlier in the opening session of the Tradewinds event by Clarkson Research Managing Director, Stephen Gordon, who highlighted that shipping is responsible for about 2% of global emissions, while it is also the most carbon-efficient mode of transportation. “Significant fleet renewal and alternative fuels are needed, but also retrofitting technology and slower speeds in a multi-layered approach.”
The conference also addressed the future of energy shipping, which globally accounts for 38 percent of shipping volumes, and in Greece is even higher, reaching almost 50 percent. As peak oil remains at least a decade away, with other estimates projecting it much further into the future, Evangelos Marinakis, Chairman & Founder of Capital Maritime & Trading Corp., who controls a fleet of more than ten million deadweight tons, is optimistic about the future of energy shipping. This optimism is fuelled by continuous global population growth and the ongoing modernization of the developing world. “We bet on what happened yesterday, what is happening today, and what is likely to happen tomorrow,” he said. “We see that the world’s population is increasing, and as countries develop, electricity needs rise, driving up demand. We also see that Artificial Intelligence (AI) demands increasingly more power, which will further contribute to the sustainable demand for oil and gas. Of course, geopolitical tensions and developments always play their part. With current events in the Red Sea and the potential for conflict between the USA and China, anything could happen.”
Regarding geopolitical factors, Paolo Enoizi, CEO of Hafnia, stated: “We believe that recent geopolitical events have clearly reset the perspective towards oil and gas. Many charterers and final users appreciate how quickly they can divert vessels to target different markets based on needs and opportunities. It’s all about how we create more value.”
Andrian Dacy, CEO & CIO of J.P. Morgan Asset Management’s Global Transportation Group, added: “There is a lot of connectivity between today and tomorrow. We can’t ignore today when planning for the future. It comes down to the current consumption of crude oil and gas and the likely reserves, which we believe will last for at least fifty more years, give or take. With renewables in the mix, it could probably be 60 years. The takeaway is that the advent of renewables is not happening quickly enough to account for the additional demand for power created by AI, which is going to be the biggest energy consumer.”
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Fiber optic cable types
Single-mode fiber optic cable: The "mode" in fiber optic cable refers to the path that light travels. It only enables one wavelength and pathway for light to flow, resulting in significantly lower light reflections and attenuation. Single-mode fiber optic cable, which is slightly more expensive than multimode cable, is commonly used for long-distance network connections.
Plastic optical fiber (POF): With a diameter of roughly 1 mm, it is a large core step-index optical fiber. The large size allows it to easily link large amounts of light from sources and connectors that do not require high precision. As a result, typical connector costs are 10-20 percent higher than those for glass fibers, and termination is straightforward. Plastic is more durable and can be installed in minutes with minimum tools and training. POF is more competitive for applications that do not require high bandwidth over long distances, making it a feasible solution for desktop LAN connections and low-speed short links.
Advantages of optical fiber
Thinner and lighter in weight: Optical fiber is thinner and may be pulled into smaller diameters than copper wire. They are smaller and lighter in weight than comparable copper wire cables, making them a better fit for areas where space is limited.
Cheap: Long, continuous miles of optical fiber cable can be less expensive than comparable lengths of copper wire. As more vendors compete for market share, optical cable prices are sure to fall.
Increased carrying capacity: Because optical fibers are significantly thinner than copper wires, they can be bundled into a cable of a given diameter. This allows for additional phone lines to be routed through the same cable and more channels to be sent to the cable TV box. ...Read more
Technological innovations are transforming home insurance, altering policy management and risk evaluation norms. These trends present challenges and opportunities for homeowners and insurers and are shaping the industry's future.
Sensitization: The Rise of Smart Homes
At the forefront of this revolution is the concept of sensorization. Smart home devices equipped with sensors are becoming increasingly prevalent, serving as the eyes and ears of the modern home. These devices can detect signs of danger, from potential burglaries to water leaks, and take preemptive actions to prevent damage. The data harvested from the sensors is invaluable for insurers, enabling more accurate risk assessments and potentially reducing premiums for homeowners who embrace this technology.
Low-Code Platforms: Democratizing Innovation
Another significant trend is the emergence of low-code platforms within the insurance sector. These intuitive tools empower insurers to develop and update applications rapidly without extensive programming knowledge. The result is a more agile industry capable of responding quickly to changing consumer needs and market dynamics.
The Internet of Things (IoT): A Connected Ecosystem
The Internet of Things (IoT) is also pivotal in reshaping home insurance. By integrating innovative technology into everyday living spaces, IoT devices offer insurers unprecedented insights into home safety and maintenance. This connectivity enhances policy customization and streamlines the claims process, making it more efficient and user-friendly.
Cyber security: Safeguarding Digital Assets
As the insurance industry embraces technology, cybersecurity emerges as a critical concern. Protecting sensitive customer data against cyber threats is paramount. Insurers are investing in robust security measures to ensure that the digital transformation of home insurance does not compromise their clients' privacy and trust.
The tech trends in home insurance are a dual-edged dagger. They offer the potential for greater efficiency and personalized service but also pose new risks and challenges. As we navigate this digital landscape, homeowners and insurers must approach these innovations with enthusiasm and caution. By doing so, we can harness the benefits of technology while safeguarding the principles of security and privacy that lie at the heart of the home insurance covenant. ...Read more
The European Unmanned Aerial Vehicle (UAV) industry is transforming operations and enhancing European efficiency. Previously valued at USD 9.32 billion, it is projected to reach USD 17.20 billion by 2034, with a compound annual growth rate of 6.32 percent between 2025 and 2034. Factors driving this expansion include automation demand, technological advancements, and evolving policy frameworks
Market Dynamics and Growth Drivers
Businesses are increasingly seeking to streamline processes, reduce human intervention in hazardous environments, and enhance data collection capabilities. The inherent versatility, flexibility, and cost-effectiveness of UAVs, coupled with their reusability, make them an attractive alternative for various operational tasks, particularly in areas inaccessible or unsafe for human presence.
Remote sensing technology is a significant booster for the European UAV market. Drones equipped with cutting-edge sensors, including multispectral cameras, are revolutionising data collection and acquisition. In agriculture, for instance, these systems accurately detect crop health, monitor irrigation efficiency, and identify pests and diseases with unparalleled precision, leading to optimised resource management and increased yields. The ability to collect granular, real-time data efficiently is making UAVs indispensable for remote sensing applications across diverse sectors, showcasing the potential of these systems in altering data acquisition.
Beyond data collection, the operational capabilities of UAVs are expanding. In logistics and transportation, the potential for autonomous package delivery is being actively explored, with pilot programs demonstrating the viability of transporting small packages, medical supplies, and food to remote locations. This provides a cost-effective and efficient solution for last-mile delivery, minimising human interaction and overcoming geographical constraints. The increasing need for extended flight times and enhanced operational capabilities in diverse applications further propels the demand for high-performance UAV solutions.
The integration of UAVs into various end-use sectors is a testament to their broad applicability. The military and defence sectors continue to be significant consumers, leveraging UAVs for intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) purposes, as well as for combat operations, precision strikes, and military cargo transport. In the civil and commercial spheres, inspection and monitoring, surveying and mapping, and photography and film production are thriving segments. The energy and power sector utilises UAVs for infrastructure inspection and remote monitoring, while construction and mining benefit from their surveying and data collection capabilities. Border management is another area where UAVs offer enhanced surveillance, cost-effective operations, and rapid deployment.
Evolving Regulatory Landscape
The regulatory environment in Europe plays a crucial role in the continued growth and responsible integration of UAVs into the airspace. The European Union Aviation Safety Agency (EASA) has established a comprehensive framework categorising operations based on risk: "Open," "Specific," and "Certified." The "Open" category, for low-risk operations, covers most recreational flying and simple professional uses with drones under 25 kg, generally not requiring prior authority authorisation for each flight. However, basic pilot competency training and registration are mandatory for drones weighing more than 250 grams or those equipped with a camera. The "Specific" category addresses higher-risk operations that require operational authorisation, often through a Specific Operations Risk Assessment (SORA) or adherence to standard scenarios. The "Certified" category is for the highest-risk operations, such as those involving the transportation of people, which require certification similar to that of manned aircraft.
A significant development is the activation of European Standard Scenarios (STS) with the arrival of class-marked drones. These scenarios enable standardised flight operations across Europe for drones with C5 or C6 class markings, provided the pilot complies with the scenario requirements. While the core European regulations offer a common framework, individual member states retain responsibility for managing their airspace, establishing geographical zones, and incorporating specific requirements for urban operations, such as notifying law enforcement. This ongoing harmonisation effort aims to create a more predictable and unified operational environment across Europe, fostering cross-border operations and facilitating wider adoption.
Technological Advancements and Innovations
The European UAV industry is at the forefront of technological innovation, with Artificial Intelligence (AI) and Machine Learning (ML) playing a pivotal role. These technologies enable drones to navigate complex environments autonomously, process vast amounts of data in real-time, and perform sophisticated tasks without direct human intervention. AI-powered drones are leading the way in applications such as automated infrastructure inspection, real-time inventory management through rapid barcode or RFID scanning, and enhanced security and surveillance with intelligent anomaly detection and facial recognition capabilities.
Drone swarming, the coordinated operation of multiple drones, represents another significant emerging trend. Leveraging swarm intelligence, these groups of autonomous drones communicate and collaborate to perform tasks, covering larger areas and achieving greater efficiency than a single unit. These swarms integrate AI and ML to navigate obstacles and maintain synchronised operations, even in challenging environments, promising to revamp missions in areas such as reconnaissance, defence, and large-scale surveying.
Further technological advancements are evident in battery technology, with continuous innovations leading to increased energy density, improved cycle life, and enhanced safety features, translating directly into longer flight times and expanded operational ranges for UAVs. The development of advanced Battery Management Systems (BMS) further optimises efficiency. Connectivity is also evolving, with the integration of 5G and private LTE networks offering unprecedented reliability, low latency, and secure communication for UAV operations, which are crucial for critical applications such as remote infrastructure monitoring and real-time video streaming.
In the defense sector, there is a strong focus on developing more advanced MALE (Medium Altitude Long Endurance) and HALE (High Altitude Long Endurance) UAVs, with increased payload capacities, extended endurance, and enhanced avionics including automatic take-off and landing (ATOL), traffic collision avoidance systems (TCAS II), and detect-and-avoid (DAA) systems. The emphasis is on developing multi-tasking platforms capable of ISTAR, ground attack, and various maritime missions, including anti-submarine and anti-surface warfare. The integration of advanced electronic warfare capabilities, jam-resistant GPS, and satellite communications further enhances their operational robustness.
The Unmanned Aerial Vehicle solutions industry in Europe is experiencing growth and innovation. The coming years will undoubtedly witness further expansion and diversification of their applications, cementing Europe's role as a key player in the global UAV landscape. ...Read more
Subsea Fiber Cable Technology Enables Rapid Data Transmission Across Continents.
Subsea fiber cable technology has become critical to the modern communication infrastructure. Beneath the ocean’s depths lies a vast network of these high-capacity cables, connecting continents and enabling global connectivity. The transition from copper cables to optical fibers marked a significant leap forward in subsea cable technology. These fibers, which form the core of modern subsea cables, allow for the transmission of vast amounts of data using light, substantially increasing capacity and efficiency. Today, these subsea cable systems can span tens of thousands of meters. Such enormous capacity has only become achievable through years of innovation and evolution.
In the early days of subsea cables, challenges abounded. High-voltage transmitters were needed to overcome the cables’ inherent resistance. Moreover, the cables’ inductive and capacitive reactance were poorly understood, and it took years of development to address these issues. However, these challenges did not deter progress but spurred innovation.
Subsea transmission poses unique challenges in cable construction and operation. Overcoming physical impairments caused by thousands of kilometers of cable is essential. Amplification is still needed to counteract cable losses, and repeater systems must be powered remotely, roughly every 100 kilometers, from the cable landing station.
Subsea fiber optic technology has come a long way from its humble beginnings. Today, it connects the globe, enabling global commerce and communication. Advancements in this technology have not only increased capacity but have also improved reliability and efficiency. As our world becomes increasingly interconnected, subsea fiber cables will continue to be at the forefront of global connectivity, playing a pivotal role in shaping our digital future and enhancing global commerce and communication.
Technological advances have significantly benefited subsea cable operators. Coherent detection, combined with finetuning through error correction, modulation shaping, baud rate optimization, and other technologies, has allowed more information to be encoded in each optical wavelength.
Significant advances in subsea fiber cable technology have made these undersea networks even more indispensable in recent years. These advancements have enhanced capacity, reliability, and overall performance, contributing to the continued growth of the global digital economy.
One of the key reasons subsea fiber cables are crucial is their role in enabling global internet connectivity. In today’s interconnected world, where data transfer is integral to countless aspects of our daily lives, from social media to e-commerce, these cables are the unsung heroes making it all possible.
Subsea fiber cable technology advancements have increased capacity, allowing faster data transfer speeds. This means we can download and upload data more quickly, stream high-definition videos seamlessly, and engage in real-time online activities with minimal latency. These improvements enhance user experience and enable critical applications like telemedicine and remote work, which rely on stable, high-speed internet connections. ...Read more