Tuesday, November 07, 2023

Report: Containership Overcapacity Could Last to 2030 or Beyond

The container shipping segment could be beginning a much longer and more challenging period according to a new analysis from Sea-Intelligence. The Danish analytics firm issued a forecast this week highlighting that the container segment’s current level of overcapacity could take a minimum of four years to come into balance and could be pushed out to 2030 or beyond.

“The market is heading into a traditional down cycle, as 2023 is seeing significant excess capacity being delivered, and in all likelihood, the same will happen in 2024,” comments Alan Murphy, CEO of Sea-Intelligence. His firm paints a troubling picture for the industry in response to the questions of when the current overcapacity will come into balance and how the industry will overcome its current challenges.

Many in the industry had predicted that the worst of the collapse in rates would be overcome by late this year but looming is the question of capacity. More people are now forecasting that the industry will be forced to turn to more aggressive disposals as slow steaming and even idling tonnage alone with not achieve balance versus the onslaught of capacity due to arrive in the next three years into the sector.

Alphaliner calculates that even after the large-scale deliveries already completed this year, the tidal wave of capacity growth is yet to come. MSC for example has received delivery of a large portion of its mammoth 24,000-plus TEU ships, the largest in the industry, while others including OOCL, ONE, and Hapag-Lloyd have also begun to receive their new ultra large container vessels. Alphaliner’s data however shows the orderbook for the top carriers still stands at approximately seven million TEU, representing a further 25 percent gross increase in capacity before potential dispositions for scrap.

BIMCO in its market analysis this week highlighted that the container segment is holding on to tonnage. As a result, they noted that the fleet has become the oldest in memory with an average age of over 14 years, making the container fleet older than either bulkers or tankers.

Sea-Intelligence in its analysis creates the potentially most positive scenario based on recent history. They used annual volume growth of just under four percent starting in 2024, matching the growth rate from 2011 to 2019 after the Great Recession. After the near-term supply surge, they also moved to a modest 1.3 percent post 2026.

(courtesy of Sea-Intelligence)

Using what they admit are “rather optimistic assumptions,” Sea-Intelligence still presents a graph showing oversupply peaking at nearly 14 percent and taking years to fall back towards an in-balance situation. Murphy notes that the worst overcapacity will be seen in 2024, and by 2026, a third of the overcapacity will have been absorbed.

“Absent an explosion in global container demand, another pandemic soaking up capacity, or carriers laying up a significant share of the global fleet and ordering no more vessels, then we could see a 2019-level of supply/demand balance in 2028. Gaining this balance in 2028 would imply an 8-year span – the same as the cycle from the financial crisis until balance was restored again in 2017,” concludes Sea-Intelligence.

While they conclude 2028 is achievable, Sea-Intelligence also notes that if there is lower demand growth, or the industry pushes ahead with more orders for even modest supply growth, the result will be to push out the recovery. They conclude any of these factors would delay the industry from achieving capacity balance till 2030 or beyond.

Canadian Shipyard Davie Completes Acquisition of Helsinki Shipyard to Expend Ice-Class Skills

Canadian shipbuilding group Davie reports it has finalized the acquisition of the assets of Finland’s Helsinki Shipyard in an effort designed to expand capabilities and expertise in ice-class shipping, especially for the Arctic. The terms of acquisition had been agreed in April but were delayed while financing and approvals were obtained as well as ensuring that the deal would not raise issues regarding the sanctions against Russia due to the war in Ukraine.

Helsinki Shipyard was hit hard by the sanctions as it was working to rebuild its business under new ownership. The yard had received an order from Russia’s mining and metal company Nornickel before the war began for a large icebreaker and the shipyard was looking to grow its historic business with Russian companies. However, Finland’s Ministry of Foreign Affairs turned down an application from the shipyard that was required for Helsinki Shipyard to proceed with the order.

No sanctions had been imposed on the owners of the shipyard, but it was struggling to obtain other contracts as it completed the delivery of the last of three small cruise ships for the exploration market. The final cruise ship was delivered in May 2023. As a result of the challenges, Helsinki Shipyard had been seeking additional work in repairs or superyachts.

Discussions with Davie reported got underway in December 2022 as Helsinki Shipyard was looking for investors. When the news leaked in the Finnish media, they signed an exclusive option agreement in March 2023 and the following month completed the purchase agreement. Davie reports in July it secured a new 50-year land lease from the City of Helsinki for the facilities.

Helsinki Shipyard had been acquired by Russian investors in 2009. A decade later it was acquired by Algador Holdings, a Cyprus-based investment company linked to Russian businessmen Vladimir Kasyanenko and Rishat Bagautdinov, who also own Russia's biggest river cruise ship operator. In its reporting, Reuters cites sources that said Davie had been working with Finland, the U.S., Canada, and the U.K. to ensure the acquisition would not trigger any concerns related to the sanctions.

The acquisition won critical support in Canada as it moves forward with its National Shipbuilding Strategy. Davie in April 2023 was officially confirmed as the third shipbuilder certified for the program which calls for the construction of multiple icebreakers as the first phase of a renewal of the Canadian Coast Guard fleet. Davie said in April that it expected the deal would provide 20 years of work for the company. Davie builds and maintains icebreakers, warships, and ferries for both government and commercial customers.

“The collaboration established through this acquisition will benefit both the Davie Group and its multiple suppliers throughout Quebec,” said Pierre Fitzgibbon, Québec Minister of Economy, Innovation and Energy. The Quebec government helped make the deal possible by providing C$110 million of financing including a loan valued at C$67 million and a C$43 million equity investment.

“This is the best possible news for Helsinki shipyard, our talented workforce, and our supply chain,” said Kim Salmi, Managing Director of Helsinki Shipyard. “After months of planning, our top priority is to rapidly return this business to what it does best – designing and building world-class ships quickly, efficiently, and cost-effectively.”

Historically, Helsinki Shipyard had built ice-class shipping including large icebreakers. They were also involved in naval work but spent the past few years building the three cruise ships for Swan Hellenic.

Davie did not announce the terms of the acquisition but said “A significant portion of the funds will go to ensuring that the shipyard has working capital while it gets up and running and secures new business.” The operations in Canada and Finland will be separate legal and operating entities but they expect to facilitate the transfer of know-how and provide access to resources.

Safe Load: The Evolution of Modern Deck Equipment

Markey Cast-6 oceanographic winch — Courtesy Markey

(Article originally published in Sept/Oct 2023 edition.)

Evolving from the labor-intensive manual equipment of centuries past, deck equipment has been transformed through technology and innovation. Today’s clean and powerful equipment packages improve safety and efficiency while integrating directly with the vessels on which they are installed.

The evolution of deck equipment in the maritime industry parallels significant milestones across the sector with advancements in materials, automation, safety and efficiency. Today, the industry’s most complex challenges are related to designing eco-friendly, energy-efficient and technologically advanced equipment. Deck equipment is no exception.

Stricter regulations and a growing emphasis on sustainability add complexity to an already convoluted market. Current trends toward increased automation, digitalization and integration require leading manufacturers like Cimolai Technology, Markey Machine, Timberland Equipment and Schoellhorn-Albrecht Machine to invest in research and development, focusing on innovative product offerings and exploring unique applications for both existing and emerging markets.

Deck machinery encompasses a diverse array of equipment from towering cranes to incredibly powerful tuggers and winches, monster boat lifts, and more – equipment as varied as the maritime activities to which it can be applied. Compared to many other technical innovations in the marine industry, this type of equipment is often overlooked.

Early Versions

To appreciate the evolution of this gear through history, some context is essential.

The earliest versions of deck equipment were comprised of the rudimentary winches, capstans and cranes used on early sailing vessels. Far from the precision and power offered by today's equipment, these manual devices were rarely more than simple lever-and-pulley systems most often operated by sheer human muscle.

The Industrial Revolution brought significant changes across trades as steam power became the motive force for industry. Alongside the switch from sails to steam for propulsion, steam winches and capstans revolutionized cargo handling and made vessels safer and more efficient.

These early mechanisms were still relatively crude compared to subsequent innovations as hydraulic systems became the backbone of deck equipment on board commercial vessels. These systems provided high levels of power while improving precision and control. Companies have excelled in designing and manufacturing hydraulic winches and cranes tailored to meet the specific needs of various industries including offshore oil and gas, shipping and naval operations.

Electric-Drive Systems

Today, however, even this evolution in power is starting to give way to a new motivating power as electric drive systems gain in popularity. Due to their efficiency and reduced environmental impact, electric drives are replacing hydraulic power across the array of deck equipment.

Timberland Equipment, a custom deck equipment manufacturer, is leading the way in this transition by employing a specialized group within its organization. The company’s various divisions have put considerable focus on converting existing gas or diesel equipment into all-electric drives. This has led the company to develop electric equipment with greatly improved safety, efficiency and control through the use of modern PLCs (programmable logic controllers) and variable frequency drives.

Timberland is likewise involved in new products and services across industries. Aaron VanMaanen, General Sales Manager, credits the company’s broad client base for expanding its offerings, particularly in the environmental space: “We’ve been involved in supporting many various industries and initiatives, allowing us to become heavily involved in green energy solutions.”

Other manufacturers – like Markey Machine, a leading producer of specialized deck equipment – are leading the charge with advances in new designs. A significant increase in demand for electric deck machinery has resulted in unique product offerings. Markey’s Electric Escort/Ship-Assist winches offer not only advanced electric-drive systems but also include added benefits like regenerative braking and redundant drives for increased reliability. Several substantial orders in 2023 from leading tugboat operators across the U.S. reflect the growing demand for these new products.

The overall cost of innovation in the maritime sector can be high with increased costs for some new equipment pushing 400 percent. however, the risks of not evolving with demands from the industry can be far greater. “The regulatory and reputational costs associated with a broken hose leaking oil into the harbor are just too significant not to evolve,” says Blaine Dempke, Markey’s CEO.

The demand for electric equipment is not just on board but also shoreside. Cimolai Technology out of Italy is well known for its mobile boat hoists. With a market focusing more heavily on electric versions of traditional shipyard offerings, Cimolai has responded with new innovations of its own including fully electric models of its mobile boat hoist (MBH), ranging in lifting capability from 30 tons to a 1,500-ton beast due for delivery to Hyak Maritime in Oregon in late 2024.

Eco-Friendly Solutions

The maritime industry as a whole is increasingly focused on sustainability, efficiency and a reduced environmental impact. Deck equipment manufacturers are contributing to a greener maritime sector in their own space, exploring eco-friendly solutions with innovative designs and materials. Lessons from the past underscore the critical need to prioritize safety, sustainability and efficiency in the design and use of deck equipment.

With a holistic approach to reducing energy consumption and emissions across the entire vessel, industry leaders like Schoellhorn-Albrecht Machine Co. are leveraging centuries of expertise toward improved environmental protection alongside increased reliability, efficiency and, of course, personnel safety. Being able to custom-build not just the equipment itself but also the power packs and control installations, Schoellhorn-Albrecht can ensure that all equipment is working as designed for each unique application, regardless of the client.

That includes government agencies. The company recently completed a contract with the U.S. Army Corps of Engineers to design and manufacture the replacement dredge head hoist for the dredge Jadwin. The winch is designed for continuous use during the dredging season, providing a maximum output torque of 27,000 foot-pounds via a 367-horsepower DC motor and utilizing a pneumatically actuated drag brake system.

Automation has transformed the way deck equipment is operated. Wireless technology has made its way into deck equipment controls, improving flexibility and safety. Modern systems often include remote control capabilities, allowing operators to perform tasks from a safe distance and even remotely.

Wireless remote controls have become standard features in many winches, tuggers and capstans. These systems enhance operator mobility and reduce the risk of accidents during deck operations.

New Markets

As the marine industry explores new markets like offshore wind and other sectors, one of the major impacts that affect deck equipment is the request for winches with greater speed and line pull capabilities. The advent of electric motors allows for more flexibility with regards to footprint and weight as well as the capability of “smart’ winches with automatic controls and variable programming.

“As vessels are required to do more and more, the equipment needed also often needs to grow in size and complexity,” says Timberland’s VanMaanen.

The continued construction of LNG terminals likewise creates a demand for specialized escort tugs equipped with appropriate escort winches. As wind, LNG and other new markets become a part of the industry’s new reality, analysts have noted a languishing supply of conventional tugs equipped with wire-rope towing winches.

Manufacturers have seen a subsequent uptick in demand for equipment to serve this need. Markey has introduced advanced control systems that enhance precision and safety during these specialized towing and mooring operations including a full line of winches with motion-compensation.

Markey’s Dempke is proud of his company’s progress and innovation. Like VanMaanen, Dempke gives much of the credit to his customers: “Our philosophy is simply to follow our customers and let them take us where we need to go and where the industry’s needs lie. Being open to these ideas and requests is key to continued growth.”

Leading the Way

The wide variety of deck equipment has, by necessity and opportunity, evolved considerably from the manual, labor-intensive, block-and-tackle systems of the past. Modern technology and innovative engineering have transformed these essential components into powerful, efficient and environmentally sound tools.

Innovators in the manufacturing realm continue to drive progress in the maritime industry, ensuring that vessels and shipyards are equipped with the best tools for safe and efficient operations. In many instances, pioneering deck equipment manufacturers introduce advances in the industry ahead of other sectors.

As the industry continues to evolve, we can expect even more advances that will further enhance the capabilities of this equipment, contributing to the continued growth and success of the maritime sector. Markey, Cimolai, Timberland, Schoellhorn-Albrecht and other industry leaders are steering the course of innovation in this industry, prioritizing safety, sustainability and technological advancements.

As technology progresses, these companies will play a pivotal role in charting its future course, leveraging their history and expertise to navigate change. By contributing to a more sustainable and technologically advanced maritime future, they’ll help ensure safe, efficient and environmentally responsible operations both at sea and on shore.

Chad Fuhrmann is a maritime consultant and owner of Revolution Consulting X Engineering.

Video: Carnival Magic Accidentally Discharges Scrubber Wastewater in Port

ACCIDENTS ARE PREVENTABLE INCIDENTS

scrubber discharge from Carnival Magic — Stain appearing in Grand Turk harbor (YouTube)

Carnival Cruise Line’s ship the Carnival Magic experienced what appears to have been an accidental discharge of wastewater from its exhaust scrubber system as it was preparing to depart port yesterday. Passengers were posting videos and photos on social media of a large black stain appearing behind the ship in the harbor at Grand Turk in the Turks and Caicos Islands. The captain can be heard in some of the videos assuring passengers that everything was fine with their cruise ship.

The Carnival Magic is a 130,000 gross ton cruise ship built in 2011 with a capacity for 3,690 passengers and over 1,300 crew. She is on a 6-day cruise from Miami and was preparing to depart Grand Turk after a day-long port call when the mishap occurred.

“A momentary power outage likely contributed to the incident,” a Carnival Cruise Line spokesperson said in response to inquiries from the trade media. “The Carnival Magic team is working on the clean-up of a soot discharge from the ship’s Exhaust Gas Control Systems (EGCS) that occurred while preparing for departure today from Grand Turk.”

Passengers reported that around 5:30 p.m. as the cruise ship was preparing for a 6:00 p.m. sailing the ship briefly lost electrical power. Some reports said the lights were off for around one minute while the captain and others confirmed emergency lighting came on aboard the ship. While power was quickly restored, passengers began noticing the large black area drifting behind the ship with some fearing it was an oil discharge. The cruise line however reports it was a discharge from the exhaust scrubber system.

Passengers posted pictures and said they saw officers and crewmembers on the dock looking upset. The cruise line said the appropriate local officials were also notified of the incident. Later images showed one of the cruise ship’s lifeboats towing what appeared to be a boom.

The cruise ship departed Grand Turk approximately two and three-quarters hours behind schedule at 8:45 p.m.

Drew Marine Unveils Inaugural Environmental, Social, and Governance Report

Drew Marine presents its inaugural Environmental, Social, and Governance (ESG) report. As a prominent supplier to vessels pivotal to the global exchange of goods, Drew Marine has always recognized the significance of diminishing environmental footprints and bolstering sustainability. Drew Marine’s inaugural report represents its drive to continuously improve performance and reduce its global carbon footprint.

The report encapsulates Drew Marine's strategic alignment with the United Nations Global Compact, embracing the Ten Principles focusing on human rights, labor, the environment, and anti-corruption and commitment to The Climate Pledge. By doing so, not only reinforces the company’s commitment in daily operations but also underpins its strategy and culture.

“This ESG report embodies our mission to be a leader in the maritime sector delivering superior service and innovation while driving positive global change,” said Scot R. Benson, CEO of Drew Marine. “Our objective is to be regarded as a true resource by our customers as they work to achieve their ESG objectives. We endeavor to accomplish this while continually recognizing our employees and providing them a socially responsible environment."

Key Highlights from the report include:

Global Commitment: By partnering with 67 organizations globally and offering expertise on 17 international boards, Drew Marine drives meaningful social change.
Innovation for a Sustainable Future: Initiatives like IMO 2020, CREW CARE®, and the newly introduced H DREW O Drinking Water System Complete showcase Drew Marine's dedication to innovative solutions that further sustainability and ensure the welfare of maritime communities.
Global Reach: With an expansive network spanning over 1,100 ports, Drew Marine caters to diverse marine markets, ranging from cruise and container to military and tanker sectors, ensuring exceptional service delivery worldwide.
A People-Centric Approach: At its core, Drew Marine's strength lies in its global team. The team’s emphasis on inclusive growth, respect, and celebrating individual contributions drives innovation and progression in maritime solutions.
Pioneering Maritime Solutions: Drew Marine prides itself on its innovative solutions, which range from water treatment programs and fuel additives to biodegradable products and refrigerant reclamation initiatives. These offerings not only optimize vessel performance but also promote environmental responsibility.

Drew Marine invites maritime professionals and enthusiasts to delve into this document and understand their unwavering commitment to a sustainable maritime future. The report is accessible on Drew Marine's website and provides a comprehensive overview of the company's ESG efforts.

This article is sponsored by Drew Marine. For more information visit the company online.

Safety kit preassembled for easy use

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

Royal Navy Saves Smugglers From Sinking Boat

drug bust and rescuer — Two interceptor boats from HMS Dauntless respond to a sinking smuggling boat in order to save the crew (Royal Navy)

A Royal Navy warship has seized $75 million worth of cocaine and prompted smugglers to scuttle their own speedboat in an interdiction in the Caribbean.

The air defense destroyer HMS Dauntless was under way on a routine Caribbean patrol when she encountered the smuggling craft. Her embarked Wildcat helicopter and a Royal Marines sniper team chased it down, and when the smugglers began to throw the illicit cargo over the side, the snipers disabled the boat's engines.

With this mission accomplished, Dauntless dispatched a small boat crew with a U.S. Coast Guard boarding team, who have the training and law enforcement authority to arrest traffickers for later prosecution. They retrieved 11 large bales of cocaine weighing a total of 330 kilos.

Two smugglers were saved and brought aboard HMS Dauntless where they received medical treatment, food and water. They were transferred to a U.S. Navy vessel the following day.

“With another bust under the ship’s belt I cannot ask for more from my team. Their work ethos and attention to detail remains second to none," said HMS Dauntless’ Commanding Officer, Commander Ben Dorrington.

Images courtesy Royal Navy

The interdiction brings Dauntless' total cocaine catch for this season's patrol to $250 million.

In an earlier intercept in the same patrol, a suspected smuggling crew sabotaged their own craft, turning an interdiction into a rescue operation.

"It was vital that with their fast-sinking vessel, we suspended the boarding operation in order to rescue the two souls on the small craft to ensure their safety and lives were not put at risk," an unnamed officer from Dauntless said.

Image courtesy Royal Navy

Dauntless captured $175 million worth of cocaine in an earlier raid over the summer, seizing more than 1,200 kilos of cocaine in one seizure. The crew also used the warship's advanced radars to track a small drug-running aircraft over the Caribbean, handing off to ground forces who intercepted it on landing and captured another 550 kilos.

Royal Navy Trains AI to Detect Hostile Small Craft

The Royal Navy is helping to train an artificial intelligence system that can analyze small-craft movements and decide whether watercraft are just some boaters out for a ride or a hostile force preparing to attack.

The Defence Science and Technology Laboratory (Dstl), the UK's in-house military R&D institution, is working on an AI system that can look at photos and videos of watercraft and categorize the boats' behavior. The goal is to identify whether a group of small craft are moving in a random way, like civilian powerboats, or whether they are operating in a coordinated and controlled pattern - as they would if they were run by military personnel.

In order to "learn" about how military small boat teams move and behave, this AI program needs a set of reference photos and videos that it can pore over for training. Last month, the Royal Navy carried out an exercise on the Solent to create a data set for what an expert (or inexpert) small-boat military operation looks like.

The maneuver was a relatively large-scale operation involving 13 vessels, 130 personnel, drones, a small aircraft and over 50 cameras and sensors over an 18-mile course on the Solent. The boat teams spent five days demonstrating close formations, attack profiles, convoys and beach landings. In addition to crisp, professional landing operations, the personnel also simulated more "chaotic" behavioral traits of a less-trained force, which - even if disorganized - could still pose a threat along the waterfront.

Royal Navy small boat operators simulate a military landing operation on the Solent (Royal Navy)

“This was an ambitious and challenging trial which builds on the experience and expertise gained during a previous land-based exercise,” said Charlie Maslen, Dstl’s trial technical authority. “Conducting a trial with sensors spanning three domains – land, sea and air – involving 12 separate industry partners was immensely complex, added to which we were hampered on two days by 40-knot winds.”

The trial sponsors collected video footage, photos, infrared imaging, sonar and radar of the exercise. All of it will be fed into the AI algorithm for training purposes, along with contextual information like weather, sea state and sensor locations.

The Royal Navy is also experimenting with AI tools for warship command and control in a human-AI teaming (HAT) arrangement; AI-based maintenance tracking software to analyze and predict when helicopters will need repair; and has invested in an AI-powered chatbot to help out prospective recruits find detailed information about the service.

Risky Business: How AI Can Cut Marine Losses

In the runup to Christmas 2022, shipowners received unwelcome but unsurprising news: they would face higher premiums the following year, owing to inflationary pressures driving up the cost of steel, spare parts and labor. The warning has since come to pass, with most P&I Clubs increasing their rates by around 10% during the latest round of renewals in February 2023.

If inflation is one factor behind the rate increase, so too is the heightened risk of hull and machinery breakdowns arising from the size of today’s vessels. Container ships have expanded by almost 1,500% in recent decades but crew numbers remain the same, creating more work and stress for seafarers. This, in turn, increases the chance of an incident occurring – leading to a potentially costly and time-consuming claims process – as bigger vessels generally come with greater risk.

Maritime companies want to be as efficient and practical as possible when moving goods around the world. However, crewmembers are struggling to deal with an ever-increasing workload on today’s huge cargo ships. This creates more risk of incidents, which in turn contributes to a growing backlog in claims reporting and even more costs for insurers. Those costs are then passed onto shipping companies through higher premiums.

Data from the Nordic Association of Marine Insurers shows that the costliest 1% of all claims account for at least 30% of the value of total claims in any given year. But shipowners’ resources are typically drained by more high volume and low-value claims such as cargo damage caused by leaking cargo hatch covers or a fire sparked by a misdeclared container.

Other common incidents include heavy weather leading to cargo losses; a fatal fall from a ladder; stowaways in the steering gear trunk; machinery failure; collision with another vessel; grounding; and piracy attack on a ship waiting for a berth, according to the Swedish Club, the maritime insurance mutual.

With premiums on the rise, the last thing shipowners need is the added cost of claiming for an incident at sea. Sharing data can support loss prevention by helping avert an incident before it happens – making shipowner and operators’ lives easier. For example, West P&I, an insurance provider to the global maritime and offshore industries, operates Neptune – a data portal for voyage planning and execution. The online system provides a global view of continental and oceanic weather data and maritime security charts. The upshot is that bridge crew and fleet managers can plot a safe passage for their vessel after being alerted to any potential weather-related or security risks when logging into Neptune.

Using technology is another loss prevention option that can mitigate the risks of incidents at sea. While there are many different options, solutions that can give fleet managers immediate visibility of onboard operations will better equip them to identify and mitigate any potential maintenance or safety risks related to piloting, cargo handling, and security.

One such example is through an AI-powered platform that plugs into a vessel’s CCTV to alert shipowners, managers and seafarers to onboard events in real-time. The technology taps into a vessel’s live camera footage, reducing the risk of incidents by highlighting unsafe events onboard, from piracy to bridge behavior. AI-powered CCTV can actually assist seafarers and shipping companies in avoiding incidents by making onboard operations safer and more efficient.

The system also enables crew and fleet managers to identify quickly the cause of an incident at sea. Establishing the reason is often difficult because many ships have limited contact with shoreside teams once they leave port. With limited visibility into ship operations, it is impossible to know what occurred on board when a vessel is involved in an incident such as a fire, piracy attack, or sinking.

AI technology addresses this issue by alerting seafarers and ship managers to events onboard, eradicating the need for them to sift through 10,000 hours of footage for every vessel each month in the hope of determining retroactively what happened following an incident.

Proactively taking action to reduce the likelihood of incidents happening is good practice for any ship owner or fleet manager. While eradicating the risks completely is unlikely, it is entirely possible for shipowners and managers to streamline the claims process following an incident. AI technology enables them to do that by establishing what happened quickly and efficiently.

The solutions to mitigate the ever-growing risk of maritime incidents are already available to shipping companies today, but increasing the uptake is now the biggest challenge. This starts by understanding how to integrate simple yet intelligent systems into current operations, identifying how to use data for improving operations, and beginning to nurture a more transparent culture between owners and insurers where both parties recognize the shared value of providing a true version of events. Achieving this will not only help prevent incidents at sea, but also ensure shipping companies realize efficiencies to manage rising incident and insurance costs.

Osher Perry is CEO and Co-Founder of ShipIn Systems.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

U.S. Navy Tests Missile-Launching Drone Boat in Mideast

Drone boat missile test — A small missile launched by a drone boat finds its target (USN)

The U.S. Navy's Task Force 59 has been testing unmanned systems in the waters of the Persian Gulf for two years, and it has focused on unarmed surveillance and patrol missions. The focus appears to be changing: in a statement last week, U.S. 5th Fleet said that it has been testing out an armed surface drone in live-fire scenarios at a position in the Arabian Gulf.

According to the Navy, the task force has been testing out a Martac T38 Devil Ray fitted with a "lethal miniature aerial missile system." In a manned-unmanned teaming exercise on October 23, the task force put the boat up against a simulated hostile force, represented by a red target boat. A human operator ashore at the Task Force 59 operations center made engagement decisions, and using live munitions, the Devil Ray "engaged and destroyed the targets."

Images courtesy USN

According to 5th Fleet, "Exercise Digital Talon" was the first time that lethal munitions have been launched from unmanned surface vessels in the Middle East.

It is the task force's second publicized exercise in two months. In September, Task Force 59 conducted a track-and-monitor mission in the Strait of Hormuz, using unmanned systems to follow Iranian naval vessels and attack boats in the strategic waterway.

Vice Adm. Brad Cooper, the commander of 5th Fleet, put the live fire exercise in the broader context of American priorities in the region.

“During Digital Talon, we took a significant step forward and advanced our capability to the ‘next level’ beyond just maritime domain awareness, which has been a traditional focus with Task Force 59. We have proven these unmanned platforms can enhance fleet lethality. In doing so, we are strengthening regional maritime security and enhancing deterrence against malign activity," said Cooper.

The U.S. military's current mission in the Middle East is centered on deterring Iran and its proxy forces. Iran's small-boat units in the Strait of Hormuz and Gulf of Oman have threatened tanker traffic in the past; previous incidents have included boardings, hijackings and small-scale limpet mine attacks at sea.