WSC - Experts & Thought Leaders

The Cargo Integrity Group (CIG) commends the recent circular issued by the China Maritime Safety Administration (MSA), following the explosion incident involving the vessel – ‘YM Mobility’ on August 9, 2024, at Ningbo-Zhoushan Port. This incident, along with other recent fires aboard container vessels, underscores the critical need for enhanced safety measures and vigilance in the transport of dangerous goods by sea. In its circular, the MSA reiterated the need for all shipping-related enterprises to implement comprehensive safety protocols, particularly during high-temperature seasons. This includes the rigorous management of dangerous goods, adherence to safety regulations, and thorough education and safety training for employees and crew members to handle potential risks effectively. The Cargo Integrity Group Each party must contribute to a culture of safety that prioritises the well-being of supply chain employees The Cargo Integrity Group echoes these sentiments. It is imperative that all parties involved in the supply chain – including shippers, freight forwarders, carriers, and port operators – recognise their roles and responsibilities in ensuring the safe transport of containers, both in compliance with dangerous goods regulations and in adopting sound industry practice, such as the CTU Code. Each party must contribute to a culture of safety that prioritises the well-being of supply chain employees and vessel crews. Key Responsibilities for Safe Container Transport: Shippers: Must ensure that all cargo is correctly classified, packaged, and labelled according to the International Maritime Dangerous Goods (IMDG) Code. Accurate and timely provision of emergency information to carriers is not just a regulatory requirement but a critical component in mitigating risks associated with the transport of dangerous goods. Carriers and Shipping Companies: Must maintain robust safety management systems and conduct regular training and emergency drills to enhance the preparedness of crews. Proper stowage, segregation, and isolation of dangerous goods, along with diligent inspection protocols, are essential to prevent incidents. Freight Forwarders and Port Operators: Should work closely with carriers and shippers to verify cargo documentation and ensure the accurate declaration of dangerous goods. They should also be vigilant in inspecting containers for any potential hazards. Importance of immediate communication and coordination The Cargo Integrity Group also stresses the importance of immediate communication and coordination among all parties to address any discrepancies or emergencies swiftly. As noted in the MSA circular, the proper management of dangerous goods, including temperature-sensitive materials and those with lower flash points, requires stringent adherence to safety guidelines. “We must all work together to uphold the highest standards of safety in the transport of containers,” said the Cargo Integrity Group, adding “The recent incidents serve as a stark reminder that there is no room for complacency. We urge all parties to renew their commitment to safety, ensuring that the tragic events we have witnessed are not repeated.” By adhering to international safety regulations and best practices, everyone can all help prevent future incidents and protect the lives of those working within the global supply chain.

Following positive response and encouraging conversations with IMO member nations and other stakeholders, the World Shipping Council (WSC) has further developed the Green Balance Mechanism, a regulatory measure designed to ensure that shipping meets its net-zero goal by 2050 in an efficient, just and equitable way. A detailed proposal, including design updates and regulatory text for the Green Balance Mechanism, has been submitted to support the timely development of effective climate regulations for shipping at the IMO ISWG-GHG 17 and MEPC 82 meetings. WSC’s Green Balance Mechanism Ocean carriers continue to invest in the decarbonisation of their fleets. Ships designed to operate on green fuels are already on the water, and over 60% of new container and vehicle carrier vessels for delivery by 2030 will be ready to use the greenest fuels. However, these fuels are scarce and several times more expensive than fossil fuels. The WSC’s Green Balance Mechanism aims to bridge this price gap, making green fuels competitive with fuels The WSC’s Green Balance Mechanism aims to bridge this price gap, making green fuels competitive with fossil fuels. Fully integrated with a technical fuel standard, the Green Balance Mechanism allocates funds collected from higher greenhouse gas (GHG)-intensity fuels to lower GHG-intensity fuels, allowing carriers to operate competitively on green fuels, ensuring demand that will drive investment in green energy and fuel production. Investment in green fuel production Joe Kramek, President & CEO of the WSC, stated, "For shipping’s energy transition to take place, green maritime fuels must be available at scale, requiring billion-dollar investments by energy producers. For these investments to occur, the IMO must adopt regulations that not only increase fossil fuel prices but also make green fuels a viable alternative." He adds, "Only then will there be a strong enough market for green maritime fuels to stimulate the necessary levels of investment in green fuel production and renewable energy." How the Green Balance Mechanism works: The Green Balance Mechanism is fully integrated with a greenhouse gas fuel-intensity standard. The Green Balance Mechanism applies a fee on fossil fuels and then allocates the funds to green fuels so that the average cost of fuel is roughly equal. The fees and allocation of funds are calculated each year, based on the amount of green fuel use and market prices, balancing out the cost across very different fuels. The greater the greenhouse gas emission reductions a fuel delivers – on a well-to-wake lifecycle basis – the greater the financial allocation received. This accelerates the uptake of the greenest fuels, delivering the deepest greenhouse gas reductions. At the same time, all fuels that deliver greenhouse gas reductions above the standards established in the Green Balance Mechanism receive some allocation, proportional to their greenhouse gas emission reduction. The emissions reductions required for fuel to receiving an allocation would follow the IMO commitments to decarbonisation over time, starting at a reduction of 65% compared to fossil fuels and increasing in stringency to reach the 2050 net-zero goal. The Green Balance Mechanism includes a framework to create a parallel ‘IMO Net-Zero Fund’ to raise funds for Research, Development & Demonstration projects and climate mitigation initiatives, to provide a just and equitable transition. Robust IMO regulations by 2025 The Green Balance Mechanism encourages immediate investment in the greenest fuels and technologies, jump-starting the energy transition in a cost-efficient manner. It provides incentives for fuel producers and shipowners to invest in advanced technologies now, avoiding costly incremental changes. The WSC's enhanced Green Balance Mechanism proposal underscores the urgency of adopting robust IMO regulations by 2025 in order to achieve net-zero emissions by 2050. "IMO member states have a unique opportunity to decarbonise the world’s ocean supply chains. We do not have time for half measures. The IMO's regulations must make it possible for green fuels to compete with fossil fuels, to drive the transition effectively. Anything less risks raising transportation costs without achieving the climate progress the world needs," says Joe Kramek.

The shipping community is appalled and deeply saddened with the tragic news that, yet another seafarer seems certain to have been killed in a drone boat strike on Wednesday 12 June while on board the MV Tutor in the Red Sea. They utterly condemn these assaults which directly contravene the fundamental principle of freedom of navigation. Thoughts and condolences go to the family and loved ones of the seafarer who tragically lost their life. It is deplorable that innocent seafarers are being attacked while simply performing their jobs, vital jobs that keep the world warm, fed, and clothed. Crosshairs of geopolitical conflicts This is the second fatal attack in which the seafarers have been caught in the crosshairs of geopolitical conflicts. Three seafarers tragically lost their lives when the True Confidence was attacked earlier this year. And they must not forget the crew members from the Galaxy Leader and MSC Aries who are still being held captive. Furthermore, they strongly condemn the attack on the cargo ship Verbena on Thursday 13 June which left a seafarer severely injured by anti-ship cruise missiles. Immense contribution Urgently seek action to stop the unlawful attacks on these vital workers and this vital industry This is an unacceptable situation, and these attacks must stop now. They call for States with influence in the region to safeguard the innocent seafarers and for the swift de-escalation of the situation in the Red Sea. They have heard the condemnation and appreciate the words of support, but they urgently seek action to stop the unlawful attacks on these vital workers and this vital industry. They hope that on this year’s Day of The Seafarer on Tuesday 25 June, the world takes a moment to recognise the immense contribution that seafarers make to the global economy and the unjust circumstances they are facing in the Red Sea and across the world. Full list of co-signatories Please kindly see below the full list of co-signatories to this statement. Yuichi Sonoda, Secretary General - Asian Shipowners’ Association (ASA) David Loosley, Secretary General & CEO - BIMCO Donald Brown, Senior Vice President, Maritime Policy - Cruise Lines International Association (CLIA) Sotiris Raptis, Secretary General - European Community Shipowners’ Association (ECSA) Mark O’Neil, President - INTERMANAGER Kostas G. Gkonis, Secretary General - International Association of Dry Cargo Shipowners (INTERCARGO) Patrick Verhoeven, Managing Director - International Association of Ports and Harbours (IAPH) Guy Platten, Secretary General - International Chamber of Shipping (ICS) Jim Scorer, Secretary General - International Federation of Shipmasters’ Associations (IFSMA) Francesco Gargiulo, Chief Executive Officer - International Maritime Employers’ Council (IMEC) Captain Simon Pelletier, President - International Maritime Pilots’ Association (IMPA) Manish Jain, Chairman - International Parcel Tankers Association (IPTA) Javier Dulce, President - The Federation of National Associations of Ship Brokers and Agents (FONASBA) John Butler, President & CEO - World Shipping Council (WSC). 

Millions of cargo containers are transported each year, and only a tiny fraction are lost at sea. However, the number of lost containers has increased in recent years, propelled by high-impact incidents that skewed the numbers upward. Factors impacting the higher number of lost containers include more violent weather events (due to global warming) and rough seas. Stresses on the global supply chain have led to higher numbers of containers loaded per ship and possibly less care being taken when securing them. Ships are getting larger, and containers are being stacked higher. Port congestion, a symptom of supply chain problems, is adding stresses that can cause human error. Poorly maintained equipment Circumstances impacting container losses also include rare events such as ship groundings, structural failures, and collisions. Damaged containers, worn-out constraints and poorly maintained equipment are other factors. Human error can include failure to follow guidelines, poor distribution of weight, cargo improperly packed, and human fatigue. Damaged containers, worn-out constraints and poorly maintained equipment are other factor According to the World Shipping Containers Lost at Sea Report for 2020-2021, the number of containers lost overboard represents less than one thousandth of 1% (0.001%) of the millions that are transported. However, in the last couple of years, the percentage (although remaining small) has increased by 18%. For example, the winter of 2021 saw an unusually high number of incidents — 3,113 container losses, many weather-related, compared to 779 in the previous period. Container shipping industry In all, during the period of the study, international liner carriers managed 6,300 ships to deliver $7 trillion in supplies inside approximately 241 million containers. Only a tiny few were lost. Losses of containers can range from a single container that is not mounted correctly to a major disaster in which an entire ship sinks. The average shipping container represents about $50,000 in value, which translates into millions of dollars lost at sea each year. Even so, the loss is negligible compared to the massive scale of the container shipping industry. There are also environmental considerations: Lost containers can add pollutants, including plastics, to the oceans. Shipping container losses Between 2008 and 2019, there was an average of 1,382 containers lost at sea each year Between 2008 and 2019, there was an average of 1,382 containers lost at sea each year. Skewing the average upward was a shipping accident in June 2013 in which the MOL Comfort broke in two and sank about 200 nautical miles off the coast of Yemen. Some 4,293 containers sank into the Indian Ocean. 2021 saw the largest spike in shipping container losses since 2013. Between November 2020 and April 2021, an estimated 3,000 containers were lost in the North Pacific in five incidents, double the annual average within a matter of weeks. Exceptional container losses Parametric rolling movement (PRM) has been a factor in some incidents with exceptional container losses that occurred during the winter season 2020-2021. The PRM phenomenon can cause a ship to roll at extreme angles of up to 30-40 degrees The PRM phenomenon can cause a ship to roll at extreme angles of up to 30-40 degrees or more and may in extreme cases lead to capsizing of the vessel. PRM mainly affects modern container vessels and car carriers that have hull forms with flared fore and aft decks. Rolling motion can cause containers to break free from their lashings and be tossed overboard. The ONE Apus ship lost more than 1,800 containers during a storm in the Pacific Ocean northwest of Hawaii in November 2020. Just a couple months later, the Maersk Essen lost 689 containers overboard during a routine voyage from China to Los Angeles. In the Maersk event, an investigation determined that heavy rolling was most likely a result of parametric rolling. Modern container ships The loss of containers and their impact on the marine and coastal environments has raised public and political concerns about the safety and environmental impact of modern container ships. The three-year Top Tier project involves active participation of major stakeholders In response, the MARIN maritime institute’s Top Tier Joint Industry Project seeks to evaluate container securing processes and to improve regulations and practices to avoid such loss of containers at sea amid an increase in the size of deep-sea container ships over the past decades. The three-year Top Tier project involves active participation of major stakeholders, including the World Shipping Council and member lines. Phase 1 reviewed current practice and incidents and identified gaps. Container lashing equipment Phase 2, beginning in mid-2022, engaged six working groups to conduct detailed technical research and investigations. Phase 3 will combine the results into practical safety improvements and specific, actionable recommendations to reduce the risk of losing containers overboard. Improvements to the Safety of Life and Sea (SOLAS) convention have previously reduced risks of lost containers, including creation and communication of the Code of Practice for Packing of Cargo transport units (CTU Code) and ISO standards for container lashing equipment and corner castings.