At this year’s Global Liner Shipping & Shipping2030 Asia, we gathered some of the most prominent thought leaders, and asked them to share their views on the hottest topics in shipping and maritime.
Prashanth Athipar, Principal Ocean Freight Sustainability, Marketing Freight at BHP Billiton, talks about sustainability in shipping, and digitalisation that will help get the industry there.
Watch the video or read the transcript below.
Lili Nguyen: Beyond regulations, how could maritime businesses find value in sustainability?
Prashanth Athipar: That’s a very broad topic, and the reason shipping must do something about it and make use of the sustainability goal is because of a couple of […]. Firstly, it is the regulatory requirement set by the International Maritime Organisation (IMO) on the sulphur cap and greenhouse gas emissions. Secondly, technology and digital transformation are really happening as we speak. Thirdly, the future is completely different. The supply chain will continue to grow, and shipping will continue to grow, but the way we manage shipping and supply chain will be in a completely different spectrum.
We all talk about climate change; we all talk about the Paris Agreement, and we all know that the Paris Agreement is not talking about shipping per se. But it is talking about human activities, and shipping is a human activity. We are contributing to the carbon footprint on the atmosphere and on this Earth. Therefore, it is a lot of value that shipping is going to gain, and there are a lot of opportunities opening up as well for shipping. So, in a nutshell, shipping can’t continue to survive in the current form, either because of the cost side of things or from the energy, greenhouse gas and climate change point of view. So, shipping must consider more broadly to move to the next stage which is obviously where the technologies will help us to move to that direction.
Also, the thinking is changing because it’s not anymore ‘traditional shipping’. It’s now ‘sustainable shipping’ and ‘green shipping’, and people talk about autonomous ships. The whole world is moving towards that but obviously there are a few challenges, like regulatory challenges, but I think in due course we will see a lot of difference and changes in this spectrum for the common good.
LN: Upcoming Marine Environment Protection Committee (MEPC) talks will go further than decarbonisation and ballast water management. We will be hearing about biofouling and now ocean plastic pollution, too. In your opinion, what will the role of shipping be in the global effort to become greener?
PA: Shipping plays a significant role in global emission controls as well as plastics and biofouling. These are big ticket items because if you really look at MEPC, that is the central peek body that regulates shipping. MEPC actually sits within the IMO, and the IMO is the empire for all things shipping. […] I think it’s fair to say that MEPC has brought a lot of experts and a lot of member states together. They all have a voice. Big flag states like Marshall Islands, Panama, and Cyprus, and they all have to take it back to their shipowners and members to make it happen.
China is now looking into how to it protect coastal states. There are studies that say that 70% of greenhouse gases are emitted within 200 nautical miles of a coastal state. You can imagine that there are a number of coastal states that are very concerned, particularly those with the expensive beach houses – they are not very happy. They think they’ve been breathing fresh air, but apparently, it’s not. So, there’s a lot of community pressure on the coastal states to make some difference.
In Sydney, expensive houses are coming up and the cruise industry is growing in Australia. But all these cruise liners are emitting exhaust gases and people kept complaining about and that is a real concern. On the one hand you need to look at the community and on the other hand you have to promote cruising. So, the only solution is that you just have to be sustainable. You just have to consider the community expectations. It is a growing concern and it will change eventually. Cost will always be an issue, but at the end of the day, we all have to share a role in an equal and level playing field.
LN: How have digital technologies helped the industry become greener?
PA: I know that people talk about technological advancements and digital transformation in a general sense, but in shipping, it is not only looking at the sustainable side of things, but it is also helping the owners to look at their costs and make them more efficient and effective in how they run the business.
Just to give you an example, by looking at the AIS tracks of the ship and at the voyage management data, you could almost identify where you could reduce the sea distance between port A and port B. If you had to be at this [nearby] port and this particular time, there is no point to steer at high speed, for instance, you could reduce your speed. And that’s not imaginary, this is all happening right now. We have all the data; we might not have the right interpretation or the right look at the collection of data. That’s the challenge.
But I think technology has changed the whole industry. Take autonomous ships, for example. Future seafarers are going to work in a control centre operating, and they can spend the night with their families. You won’t be talking about home sickness or family sickness; it’ll be a normal office-based work. That is fantastic! Basically, you are more socially responsible and environmentally sustainable.
You’re not talking about a diesel-powered ships anymore, it’ll be a solar powered or battery powered ships. How nice is that going to be for us? The technology is available it’s just a matter of rolling out, regulating it, and managing it. It is a challenge and a journey, but we are all part of that journey.
