Cutting emissions in a world already experiencing climate change has been one of the key topics last year as world powers met in Paris to talk measures aimed at curbing global warming  of more than 2°C. Even though shipping has been left out of the Paris Agreement, there is a mounting pressure on the industry players to shift to more environmentally-friendly solutions. Adoption of liquefied natural gas (LNG) as marine fuel has been one of the most common solutions for ship owners, and 2015 has seen numerous industry-firsts and industry records, such as the largest LNG-powered containership.

World Maritime News spoke with Patrick Janssens, Vice President of Global Gas Solutions, American Bureau of Shipping (ABS) to learn more about the challenges of construction and classification of such ships, along with the prospects for investments in LNG across the board in 2016.

WMN: In light of the recently held COP21 summit in Paris, and the exclusion of shipping from the agreement reached, the shipping industry nonetheless expects to decrease CO2 emissions. What role is LNG as marine fuel expected to play in this initiative?

Janssens: LNG as a marine fuel has a central role in reducing the overall CO2 emissions inventory from shipping, and it will become increasingly attractive as shipping and its regulators work to further reduce the industry’s contribution to climate change.

WMN: We have seen various maritime sectors venture into LNG as marine fuel, the latest one being cruise ships. What domain remains unexplored? What industry-first could we see next?

Janssens: The area that, if not unexplored, certainly is not fully exploited, is the main fleet of bulk carriers and tankers. ABS has classed LNG Ready product tankers and is collaborating on an LNG Ready bulk carrier design, but these are the sectors that have yet to fully embrace the concept. The reasons are numerous: the low bunker price, the number of sailing days spent within an Emission Control Area (ECA), the availability of low sulphur fuel and alternative compliance options. In addition, the tramp trading patterns of many bulk carriers and tankers increase the challenge of sourcing LNG fuel in multiple locations. But just as with containerships, it seems likely that more and more owners will consider this option in the future.

WMN: What are the key things/challenges to have in mind when performing a classification of an LNG-powered ship? Could you describe us the process in a few points?

Janssens: Using LNG as fuel is not new – LNG carriers have used boil-off gas from cargo as fuel since the launch of the first LNG carrier entered service in 1964; so the technical challenges are generally well known and understood. What is new in applying LNG as fuel to cargo ships is understanding how the arrangement of the cargo tanks, fueling system and main engine impact cargo capacity and ship operations. For LNG bunkering vessels, the process is closer to existing principles, but in both cases, a critical challenge is ensuring crew training and competence that reflect the differences between conventional fuel and LNG as fuel.

WMN: ABS took part in construction of TOTE Maritime’s Isla Bella, the largest containership powered by LNG. What were the key challenges during the design/construction process? Could we see more of such or bigger ships join the global fleet any time soon?

Janssens: The most fundamental challenge was supervising the construction of an LNG-powered containership at a shipyard that had no previous experience building this type of vessel. This meant that co-ordination among owner, designer, shipyard, class society and regulator had to be closer than ever to deliver the required level of quality and safety. TOTE Maritime’s Marlin-class ships – just like those for Nordic Hamburg – were built for specific trades and capacities, but the interest shown in LNG Ready designs suggests it is only a matter of time before we see larger LNG-powered containerships.

WMN: How would you asses the capability of US shipbuilders to build these complex ships? Percentage-wise, how many of them have the necessary know-how and what can be done to increase this number to bring the production from Korean yards to the US?

Janssens: The US shipbuilding market has proven itself able to take on the challenge of these new ship types, and their knowledge is increasing as they successfully complete small and large newbuilding projects as well as evaluating conversions. One of the big challenges in building LNG carriers and LNG-fueled ships is that new yards in new locations want to get into these markets; so the task of ABS is to provide the guidance and support to help them do so safely and sustainably.

WMN:  Seeing that the shipping industry is sailing through a challenging period, especially the containership and dry bulk shipping segments, how do you think this might affect investments in LNG-powered/LNG-ready newbuilds? What is the feedback from the market?

Janssens: Containership operators – especially those with heavy ECA operations or those for whom adopting cleaner fuel is important to their clients –have already begun making the investment, but as always, the business case will need to be balanced across a number of factors. The ship finance climate in 2016 will be tight, but there is no doubt that investors of all kinds realise that together with operational efficiency, the potential for cleaner operations from using LNG as fuel will be attractive in certain markets.

WMN: Speaking of the US shipping companies and investments in LNG-powered ships, do you see demand for these ships picking up? What are the obstacles for more companies to order this type of ships, and what could be done to remove these obstacles?

Janssens: The North American shipping market probably has the fewest number of obstacles to adopting LNG as fuel because it has a coastal trading fleet that needs to comply with ECA regulations. Regulation remains the strongest driver – just as it does in Europe’s Sulphur Emission Control Areas – because the economic and environmental arguments merge.

WMN: Are the existing safety regulations considered sufficient to prevent major incidents on LNG-powered vessels?

Janssens: With the IGF Code adopted in 2015 together with associated amendments to SOLAS and STCW Convention and Code, the industry has a platform on which to build for the future. The Code contains mandatory provisions for the arrangement, installation, control and monitoring of machinery, equipment and systems using low-flashpoint fuels and is intended to minimise the risk to the ship, its crew and the environment. Together with the technical requirements, it is important to consider the necessary training, certification and competence of personnel serving on gas-fueled ships as a part of the overall package.

WMN: 2015 is over, how would you assess the year and what can we expect from ABS in 2016?

Janssens: 2016 will be a challenging year for many sectors of the shipping industry. An uncertain economic outlook, the low oil price, pressure on earnings, the costs of compliance and the desire for operational efficiency will be the key drivers to owners seeking sustainable operations. For ABS, our mission does not waver – we will continue to provide best in class classification services that support the industry and protect life, property and the environment.

Shanghai-based containerized transportation company China Shipping Container Lines (CSCL) has signed an Operation Performance Package service agreement with ABB Turbocharging, part of the power and automation technology group ABB Group.

Under the contract, ABB Turbocharging will service and provide spare parts for 113 turbochargers on 23 vessels, including 51 TPL type and 62 VTR type turbochargers.

Added to existing service agreements, ABB now services over 300 turbochargers for CSCL.

CSCL has previously signed two OPAC service agreements with ABB Turbocharging, firstly for 60 turbochargers in 2012, and two years later a second contract was concluded covering the service of 56 turbochargers.

“We own a fleet of 74 vessels managed by ourselves, therefore ensuring they are operating at optimum performance is crucial to our business. We rely on ABB to ensure that any potential turbocharger problems are not allowed to mature and to help us minimize overall vessel downtime,”said a representative from the Technology and Maintenance Division, China Shipping Container Lines.

The two companies signed a further Maintenance Management Agreements (MMA) in addition to the three OPAC contracts, which includes service of the turbochargers on board the container ship, The Globe.

At the time of launch in early 2015, The Globe, at 19,100 TEU, was the largest container ship in the world, and still remains the longest container vessel in operation.

The Port of Prince Rupert, in British Columbia, projects that its fully-realized development plan could generate almost 5,000 new jobs in northern British Columbia directly related to port activity.

Using a model derived from project proposals and land use plans, the forecast quantifies the potential growth of the port’s economic impact through 2025 and beyond, according to the port authority. The model makes assumptions for capital investments, average employment levels and wages, the port said.

“The vision of Prince Rupert as a leading North American trade gateway builds on our strengths and our track record,” said Don Krusel, President & CEO of the Port of Prince Rupert.

“The question is, can we achieve it? We believe we can, but it’s going to take a vision that aligns the priorities, efforts and investments of local communities and First Nations with the economic opportunities that are presented.”

Current and proposed developments on port lands at Fairview Container Terminal, the Ridley Island Industrial Site and Lelu Island have the potential to create an integrated platform for shipping with the capacity to transport over 100 million tonnes of cargo annually.

The full buildout of the port’s planned infrastructure and terminals is predicted to potentially generate an increase of 4,780 full-time equivalent (FTE) jobs directly related to port activity, USD 310 million annually in additional wages, and USD 59 million annually in additional local municipal taxes for the City of Prince Rupert and the District of Port Edward.

Mexican navy in coordination with the Tax Administration Service, seized a total of 173.17 kg of cocaine inside a container that was aboard Portuguese-flagged boxship Mataquito while in the port of Manzanillo.

The drugs was found on January 7th stacked in 150 packages in three black suitcases, the navy said in a statement.

Based on the available info, the 2010-built boxhip Mataquito called in Manzanillo while on its way from Buena Ventura, Colombia, to Quetzal, Guatemala.

The contraband was taken to the offices of Mexico’s Public Attorney under the escort of naval personnel.

Based on the ship’s AIS data, the boxship, owned by German Peter Döhle Schiffahrts-KG, left Mexico and is on its way to Yokohama, Japan, where it is scheduled to arrive on January 23rd.

Samsung Heavy Industries (SHI) has secured an order worth KRW 621 billion ($583.24 million) for the construction of five container ships, announced the company in an exchange filing yesterday.

The order came from an unnamed European ship owner.

The company also said that the vessels are planned to be delivered by the end of September 2016.

Three tourists died when the 100-foot catamaran Pura Vida Princess capsized off the coast of Costa Rica’s beach town Punta Leona, early Thursday morning, The Tico Times reports.

Ninety-nine passengers boarded the catamaran serviced by a crew of ten, for a trip to Tortuga Island. The remaining ninety-six passengers and ten crew members were rescued.

Costa Rica’s Judicial Investigation Police ant the Prosecutor’s Office are currently investigating the cause of the accident, with survivors reportedly saying that the vessel capsized and quickly sank due to strong winds.

In a press conference held on Thursday afternoon, Costa Rica’s Vice President Ana Helena Chacón identified the three victims as a U.S. citizen Edna Oliver (68), Ivor Stanley Hopkins (80), a U.K citizen , and a Canadian Sharon Johnson (70), according to The Tico Times.

Stella Hopkins, the wife of Ivor Stanley Hopkins, said she expected the catamaran to turn back to port because of the choppy sea, but the crew decided not to cut the cruise short.

Israel’s cargo shipping company ZIM Integrated Shipping Services Ltd. announced today that its Chief Executive Officer, Rafi Danieli, told the company’s Board of Directors that he wishes to resign from his role as CEO.

ZIM said that Danieli will continue to serve as CEO until a new CEO is appointed in order to help ensure a smooth transition.

“During such time, Mr. Danieli will remain fully committed to execute the company’s strategic plan and 2016 work plan. The company’s Board of Directors has nominated a committee to lead the search for a new CEO of the company,” ZIM added.

ZIM further added that it has agreed with Danieli for him to serve as an active advisor to the company following the appointment of the new CEO, subject to the approval of a detailed agreement.

“Rafi’s request to leave his service as CEO came after working in ZIM for 38 years, of which he served as CEO for seven years, and during which time he led broad structural changes in the company and two complex financial restructurings. During his service, the company has moved from making operational losses to an operational profit, with operating margins higher than the industry average,” ZIM’s BoD explained.

For the nine month period ended September 30, 2015, the company reported a net income of USD 35 million, compared to a net loss of USD 192 million for the same period in 2014.