• 2021 September 16 13:40

    SMM Maritime Industry Report (MIR) shows industry on track for sustainability

    Hamburg Messe und Congress (HMC) and the market research organisation mindline have jointly published the Maritime Industry Report (MIR).

    For shipowners, shipyards and suppliers, climate protection is a top priority. What stakeholders are unsure about, however, is how to implement it: There is still no clarity what fuel will prevail as the industry steers towards a carbon-neutral future. There can be no doubt that conventional propulsion is on its way out. In September 2022 the leading international maritime trade fair in Hamburg will provide guidance for the sector’s ‘green transition’.

    It is a staggering number: According to EMSA, the European Maritime Safety Agency, ship traffic in Europe emits 140 million tonnes of CO2 per year, nearly one fifth of global maritime greenhouse gas emissions. “Despite the fact that the shipping sector has improved its environmental footprint in recent years, major challenges remain for decarbonisation,” says Adina Vãlean, the EU Commissioner for Transport. Maritime stakeholders are well aware of their responsibility, as the current SMM Maritime Industry Report (MIR), a broad survey among decision-makers in the shipping, shipbuilding and supply segments, shows. 70 per cent of responding shipowners said they intend to invest in their fleets in the next two years to cut emissions. 85 per cent of responding decision-makers at shipyards and supply companies see environment protection and sustainability at the top of the maritime agenda in the coming years, making it the most important topic by far.

    So there is plenty of willingness – but what about realisation? "From low-emission engines to smart operating software, and through to reliable ballast water management systems, our exhibitors at SMM in September next year will highlight everything that is technically possible. We are the showcase of state-of-the-art maritime technologies," says Claus Ulrich Selbach, Business Unit Director – Maritime and Technology Fairs & Exhibitions at Hamburg Messe und Congress (HMC). 

    The stuff green dreams are made of

    One key question has yet to be answered: LNG, hybrid technologies, biofuels, batteries, hydrogen or ammonia – which propulsion technology is it going to be? The uncertainty is clearly reflected in the SMM MIR, which also indicates a cautious change of focus. Liquefied natural gas (LNG), long favoured as a transitional fuel, has lost some support among responding shipowners: Only 35 per cent would opt for LNG-powered ships today, compared to 45 per cent in 2019. On the other hand, 60 per cent of responding shipyards expect high demand for LNG-propelled vessels, an assessment supported by a number of major newbuilding orders received from owners like Hapag-Lloyd. Hybrid solutions – such as combinations of fossil fuels with battery technology – are considered as promising by responding shipyards in particular. 56 per cent expressed a strong belief in these solutions (compared to 44 per cent of suppliers, and 32 per cent of shipowners).

    Maersk has adopted a different strategy. The global leader in the container shipping market recently ordered eight large vessels (16,000 TEU) using methanol as fuel. "In this scenario, renewable energy is used to produce hydrogen, which is then converted into methanol, an alcohol that can be used almost like diesel. It is even possible to convert our older ships to methanol," says Maersk CEO Søren Skou. Maersk expects to reduce its CO2 emissions by 1 million tonnes per year. The market leader aspires to be carbon-neutral by 2050, a much more ambitious goal than that proclaimed by International Maritime Organization (IMO). The trend towards methanol is reflected in the MIR results: Every seventh respondent would opt for methanol as fuel. All in all, hydrogen-based solutions take second place among the fuels favoured by shipowners, showing a 33 per cent approval rating.

    Another potential game changer for the industry is ammonia: Not only does it burn without emitting CO2 similar to hydrogen, but it also features higher energy density and is easier to store. Strong arguments in favour of this fuel, says shipowner Alfred Hartmann, president of the German Shipowners Association (VDR). His tanker company has joined forces with the engine manufacturer MAN Energy Solutions and the ammonia specialist OCI to jointly build a maritime NH3 gas value chain. The company's new tankers transport ammonia and use it as fuel: "We feel strongly about the potential environmental benefits of ammonia-powered ships,” says Hartmann. 40 per cent of responding shipowner managers agree, according to the SMM MIR.

    Governments could accelerate the transformation

    One thing is clear: Conventional fossil fuels will soon be a matter of the past. The ratio of shipowners preferring heavy fuel oil dropped from 20 per cent in 2019 to 8 per cent now, while the 20 per cent approval rating of marine diesel in the year 2019 has nearly been cut in half. This trend is likely to accelerate further as governments raise the price of CO2 emissions. The future rate of increase in Germany will to some extent depend on the outcome of the national elections on 26 September.

    "When it comes to shipping, the discussion always revolves around the technical aspects. But the technology needed to accomplish the maritime energy transition has been fully available for some time. For years the challenge has been at the political and general societal level," Dr. Uwe Lauber, CEO of MAN Energy Solutions, points out. "We are perfectly able to build engines running on zero-emission fuels today. But we cannot make the decision to bring synthetic fuels to the market by ourselves."

    Dr. Reinhard Lüken, General Manager of the German Shipbuilding and Ocean Industries Association (VSM), believes that Europe's ambitious climate protection goals can best be achieved if climate protection is linked to business success. "We need to act where we can shape matters on our own. In Europe, we have the technical solutions, we have a huge internal market and we have the political will to move ahead. Together we can create a climate-neutral maritime transport infrastructure much faster – and made in Europe!"

    Know-how is in demand

    Whatever the case, to achieve zero-emission shipping those in charge need to make far-reaching decisions: "A misstep today in newbuild fuel strategies can have damaging consequences for businesses and assets in the future,” says Knut Ørbeck-Nilssen, CEO of DNV Maritime. To support shipowners in dealing with the tricky fuel question, the classification society has developed a "Decarbonisation Stairway", a practical guide including detailed calculations and scenarios which help the industry navigate around risks and uncertainties.

    All this will also be a key topic at the next SMM: For example, Claus Ulrich Selbach expects the environmental conference gmec to deliver practical advice: "There will be first-rate experts on site for companies to consult with on the maritime transition. We can only hope to overcome climate change, the greatest challenge of our time, by combining all available know-how,” says Selbach.

    About the Maritime Industry Report (MIR)

    This is the third time Hamburg Messe und Congress (HMC) and the market research organisation mindline are jointly publishing the MIR. The report reflects the views of high-level decision-makers from international shipowning companies, shipyards and suppliers regarding planned investments and the economic and technological development, providing an accurate mood barometer of the maritime industry.

    About SMM

    SMM, the leading international maritime trade fair, takes place on the Hamburg Messe und Congress (HMC) exhibition campus every two years. With the leitmotif “Driving The Maritime Transition”, SMM will bring together the maritime community in Hamburg from 6 to 9 September 2022. International experts will discuss current challenges and innovative solutions for the maritime industry.


2024 March 18

18:13 Brunvoll propulsion chosen for ESVAGT's growing fleet of SOVs
17:42 ADNOC signs second long-term Heads of Agreement for Ruwais LNG Project
17:37 Cemre Marin Endustri shipyard holds launching ceremony for CMAL's MV Isle of Islay
17:24 Fortescue successfully conducts world’s first use of ammonia as a marine fuel in a dual-fueled ammonia-powered vessel in the Port of Singapore
17:02 APL updates on European Union’s Import Control System 2
16:03 MED Marine contracted to build MED-A2575 series tug for SVS Maritime
15:31 Hanwha Ocean and BV join hands to develop a 270K LNG carrier
15:17 HD Korea Shipbuilding awarded contracts for three VLACs
14:18 Port of Skagen and Stillstrom partner to decarbonise anchorage zone with offshore charging solutions
13:22 Sanmar delivers 6th battery electric power tugboat to Norwegian operator
13:16 COSCO SHIPPING Lines announces the launch of OCEAN Alliance DAY 8 product this year
12:21 Dutch offshore wind farm approved by LR
11:39 ClassNK awards first-ever notation for improvements in living and working environment to Fuyo Kaiun's bulk carrier "ELETTRA"
11:31 Davie strengthens Québec’s shipbuilding industry by supporting the reorientation of AFCDC
10:44 Storylines and Brodosplit shipyard renew ship building contract to construct private residence ship
10:25 BOEM announces environmental review of proposed wind energy project offshore New Jersey
09:51 First ‘flying’ electric ferry to debut in New Zealand in 2025

2024 March 17

16:31 Norwegian Shipowners' Association names Harald Fotland as its President
15:22 ABS Wavesight Nautical Systems now supports fully digital, streamlined SIRE 2.0 inspections
14:15 TechnipFMC selected by NEP to deliver the first all-electric iEPCI for CCS
13:03 US sanctions shipping company, targeting Iran and Houthi rebels
11:01 The first hybrid electric vessel built in South America will use a Corvus battery system
09:47 Kalmar and Forterra sign JDA for autonomous terminal tractor

2024 March 16

16:24 The Netherlands selects Naval Group for its submarine replacement program
15:41 Equinor exercises options to extend four-year drilling contracts
14:17 GONDAN Shipbuilders hosts launching ceremony for Edda Wind's CSOV C503
13:47 Van Oord, Van Aalsburg partner to further develop circular fascine mattresses
12:13 Snam wins "A" raing in CDP's Suppliers Engagement Rating for efforts against climate change
10:54 ULSTEIN unveils new subsea vessel for offshore energy tasks

2024 March 15

18:07 DNV gives nod to Friede & Goldman BargeRack solution
18:02 New partnership enables faster offshore wind installations in the U.S.
17:53 First production line at ‘World’s Largest Monopile Factory’ to go live in July
17:21 Brunvoll DP2 upgrades for more Mokster vessels
16:55 CMA CGM to suspend its calls at Port au Prince, Haiti
16:03 GEFO's LNG DF chemical tanker Tosca gets Green Award
15:19 CEVA Logistics develops new vehicle logistics business at the Port of Dunkirk
14:11 MPA: SaR operation continues for a missing crew member of the Liberia-flagged UTOPIA
13:07 To develop the Far East it makes sense to build a new shipyard in the country’s eastern regions, President Putin said
12:48 World’s first use of ammonia as a marine fuel in a dual-fuelled ammonia-powered vessel in the Port of Singapore
11:39 COSCO Shipping calls Port of Genoa, Italy with 20,000 TEU vessels on regular basis
10:03 DMC contracted to supply rudder systems for the world’s largest PCTCs

2024 March 14

18:04 Shearwater awarded seismic survey for UK carbon capture and storage project
17:15 UAE, world leaders discuss maritime corridor for aid to Gaza
16:05 Marine fuel sales at Singapore drop to a three-month low in February
15:43 World Shipping Council selects NCB for liner shipping Cargo Safety Program
15:00 ZIM reports results for 2023
14:57 DP World announces 2023 results
14:29 HaiSea unveils new operations facility for the world’s greenest tugboat fleet
13:44 DEME awards KENC with engineering and fabrication scope on multiple offshore wind installation projects
13:25 MABUX: Bunker Outlook, Week 11, 2024
12:43 Wartsila Lifecycle Agreement to support optimised low-emission operations for two P&O Ferries vessels
11:35 Hapag-Lloyd transport volumes up by 0.5% to 11.9 million TEU in 2023
10:51 NYK and Astomos Energy christen new dual-fuel LPG carrier
10:25 Port of Long Beach container volume up 24.1% to 674,723 TEUs in Feb 2024

2024 March 13

18:02 Lebanese, French officials float a plan to rebuild Beirut port nearly 4 years after huge explosion
17:23 Ascenz Marorka obtains type approval for cyber-security from Bureau Veritas for its digital solutions
16:58 USDOT announces $500 mln for ports available through the Port Infrastructure Development Program
15:44 RINA wins contract to create global investment plan for cruise sector
15:23 Hede International Shipping enters the Transpacific container trade
14:43 Concordia Damen wins contract to deliver a CDS2410 River Pusher to Transporte Fluviales Frey Bentos
14:13 CMA CGM Group launches its first loyalty program SEA REWARD
13:13 Cargill posts results of the six-month test period of the world’s first wind-powered ocean vessel
12:24 Rotterdam's Gate Terminal sees need for more LNG bunkering capacity at Rotterdam
11:58 MOL announces delivery of LNG-fueled car carrier CERULEAN ACE
11:24 Panama Canal announces increase in daily slots at Panamax locks
10:25 thyssenkrupp Veerhaven plans the climate-friendly pusher tug

2024 March 12

18:04 Cosco Shipping installs Iridium Global Maritime Distress and Safety System on PCTC Cosco Tengfei
17:30 LR issues Project Certificate for CrossWind Hollandse Kust Noord wind farm
17:16 The shipping industry to need €3.7 trillion by 2050 to move towards a zero-pollution era
16:25 China Classification Society and MAN ES sign dual-fuel methanol engine agreement