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Greek Shipping Co-Operation Committee Greek Shipping Co-operation Committee Annual Report 2019 - 2020 Table of Contents From the Chairman ................................................................................................................. 3 Fleet Statistics ........................................................................................................................... 8 The World Fleet ..................................................................................................................... 8 The Greek Controlled Fleet .................................................................................................... 8 Developments in Greece ........................................................................................................ 10 Economic Outlook................................................................................................................ 10 Covid-19 ............................................................................................................................... 12 Change in Governance ......................................................................................................... 13 Migrant Issues ...................................................................................................................... 15 Developments in the UK ........................................................................................................ 17 Economic Outlook................................................................................................................ 17 New UK PM & Transport Minister ..................................................................................... 19 Brexit .................................................................................................................................... 20 COVID-19 Outbreak – Impact on Shipping ....................................................................... 22 Sulphur Cap ........................................................................................................................... 26 Beyond 01.01.2020 .............................................................................................................. 26 Local & Regional Legislation .............................................................................................. 30 Guidance & Achieving Compliance .................................................................................... 32 Points to Consider after 1 March 2020................................................................................. 33 IMO DCS and EU MRV Regulations .................................................................................. 35 Cyber Security ........................................................................................................................ 40 Recommendations & New Guidelines ................................................................................. 43 Piracy ...................................................................................................................................... 51 West Africa .......................................................................................................................... 55 East Africa ............................................................................................................................ 58 Asia....................................................................................................................................... 59 South America ...................................................................................................................... 60 Ship Recycling ........................................................................................................................ 61 Shipbuilding............................................................................................................................ 67 US Sanctions against Venezuela ........................................................................................... 74 US Sanctions against Iran ..................................................................................................... 79 Panama Canal ........................................................................................................................ 85 Suez Canal .............................................................................................................................. 91 Ongoing Mediterranean Migrant Crisis .............................................................................. 93 2 From the Chairman Dear Colleagues, It is with great pleasure and some sadness that I present our 85th Annual Report in 2020. I stress sadness because over the last six months the COVID-19 virus has affected our world in a manner unlike anything we have experienced in our lifetime. This tragic event has claimed lives in every single country and has ravaged every continent and changed our world in ways none of us expected. Our resilience as humans is such that we will survive and overcome this tragedy but not without very significant consequences. Before we progress to what may seem to be our usual mundane and pedestrian problems of everyday shipping, I wish to express the following sentiment. The men and women who work in the shipping industry, especially at sea but also ashore have performed magnificently over this six-month period going about their daily work with so many limitations. The world in general has not appreciated the silent and unsung manner in which shipping has provided the most vital artery of trade flowing, keeping us all fed, clothed and warm. It is very disappointing that maritime countries around the world have welcomed the cargo every ship carries but have not welcomed the crew itself. Seafarers should be considered essential or key workers and afforded the right to repatriation, embarkation and disembarkation when necessary. It is incumbent upon all nations which trade internationally to designate ports where crew can be exchanged but also nearby airports that can take them to their final destination. Looking at developments over the last 12 months, the Greek Shipping Industry has reaffirmed its position as the world's largest fleet. The fleet has grown younger through deliveries of new ships as well as judicious purchases of modern second-hand ships. Unfortunately, due to COVID-19 the recycling of older ships since March has been impossible up to about two weeks ago. However, in the Tanker, Bulk Carrier, Container, LNG, LPG sectors Greek companies still dominate the market with modern, technically advanced and 3 environmentally sensitive vessels. The Cruise ship sector, which is generally not a market with a major Greek presence has suffered hugely due to the negative publicity of disease outbreaks on board ships and as such has more or less shut down at least until the third quarter, and in some cases the fourth quarter. The freight markets themselves were active until COVID-19 struck and then a general malaise transpired except for the tanker sector which experienced a temporary boom brought upon by the anomalies of oil price fluctuations and demand reductions. Let us hope that soon trade will recover and all sectors will normalize again. With all these problems, limitations and dangers deep sea shipping is still proving to be the most energy efficient, low carbon transportation mode bar none. During this period the G.S.C.C. has not stopped lobbying at the highest levels in order to solve problems brought about by COVID-19, and all the other issues that need our attention and we are working together on the international stage with the relevant individuals and organizations to bring about workable maritime solutions to all these issues. Looking at these issues individually: A. 2020 IMO Sulphur Cap Whilst initially there may have been some supply bottlenecks this has calmed down and now most ports have sufficient quantities of low sulphur fuels in order to meet fleet requirements. However, the technical problems have multiplied as the composition of this new fuel is not the same globally and vessel's purification systems as well as the main engines themselves are incurring much more maintenance and a fair amount of damage. These main engine damages have compromised vessel safety. IMO must be made aware of this. We must still get to the point of having a common composition to this fuel. B. 2050 Greenhouse Gas Reductions As this is a project that requires an enormous amount of work, investigation and experimentation some non-IMO Legislators seem to want to progress in an unseemly and hasty manner often based on half-baked solutions. 4 The Shipping Industry itself, with little or no help from the technology providers such as Engine manufacturers, Shipbuilders and Energy suppliers are valiantly trying to come forward with viable short, medium and long-term solutions to this issue. It must be stressed that this must be carried out through the IMO only and not through any other less experienced institutions. C. Large Ore Carriers The scuttling of the modern VLOC Stellar Banner proves that the effort to build cost-effective ships is being achieved at the risk to the vessels themselves, and most of all to crew safety. Regulators, Shipyards and Classification Societies should take a more responsible attitude and reassess the design process and build more robust and safer ships. It is unjustifiable that such modern VLOCS can suffer damage in the laden condition, with so little reserve buoyancy and hence survivability.
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