Political Forum. ClassNK s perspective on regulatory developments Low sulphur fuels & Ship digitalization

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1 Political Forum ClassNK s perspective on regulatory developments Low sulphur fuels & Ship digitalization Masaki Matsunaga General Manager of External Affairs Department Nippon Kaiji Kyokai (ClassNK)

2 Contents Low sulphur regulations - Impact on fuel and engines Ship digitalization - Cyber security - Maritime Autonomous Surface Ships (MASS) - Advanced solutions to handle big data

3 Low sulphur regulations - Possible impact on fuel and engines

4 Global sulphur cap from 2020 MEPC 70 Global sulphur cap from 1 January 2020; Current global cap for sulphur content of ships fuel oil is 3.50%. New global cap for ships fuel oil is 0.50%. Both SOx and PM emission will be reduced. On the other hand, safety concern arises

5 Global sulphur cap from 2020 More complex fuel products are blended to comply with the specifications for low sulphur content. Properties other than sulphur contents will cause negative effects such as: More Catalytic fines remains Worse Combustion in engines Lower viscosity needs adjustment

6 Global sulphur cap from 2020 Catalytic fines : Small particles of heavy metal that are used in the refining process What happens? Catalytic fines may enter engine cylinders and cause physical damage to liners and piston rings. Ref. IUMI position paper (March 2016)

7 Global sulphur cap from 2020 Worse combustion: Diesel combustion of the blended fuel oil may become worse. To maintain appropriate combustion, Adjustment of fuel injection timing; or Use of additives. Low viscosity: Viscosity will be significantly reduced to less than 180 cst from 380 cst of heavy fuel. Damage on fuel injection system

8 Global sulphur cap from 2020 Actions to be taken by 2020: Fuel providers to keep the performance of blended fuel oil. Engine manufacturers to tackle on various problems expected, when using blended fuel oil. New ISO standard for low sulphur fuel oil is now being discussed. ClassNK has started a research project on problems caused by the use of blended low sulphur fuel oils, especially on worse combustion

9 Ship digitalization Cyber security

10 IMO s Action to Cyber Security Maritime Safety Committee 98 (June 2017) Resolution MSC GUIDELINES FOR INCORPORATION OF CYBER RISK MANAGEMENT IN SAFETY MANAGEMENT SYSTEMS (Non-mandatory) Management Approach Contents: 1. Safety management system should take into account cyber risk management in accordance with the objectives and functional requirements of the ISM Code 2. Cyber risks are appropriately addressed in safety management systems no later than the first annual verification of the company's Document of Compliance after 1 January 2021 S-10

11 BIMCO Guidelines BIMCO Guidelines on cyber security onboard ships 1. Version 2 of the BIMCO Guidelines has been published in June IUMI participated in the development of the version 2 of the BIMCO Guidelines. ICS, INTERTANKO, INTERCARGO, OCIMF and USMRC etc. also participated. 3. Since 2014, NK has been supporting BIMCO and USMRC in updating the BIMCO Guidelines. S-11

12 Maritime Cyber Assurance ClassNK Maritime Cyber Assurance Expected Services: Certification for Shipboard Cyber Risk Management One-day Shipboard Cyber Risk Assessment e-learning Maritime Cyber Security ISO27001 (Information Security Management System) S-12 IACS Maritime Cyber Systems Recommendations

13 Ship digitalization Maritime Autonomous Surface Ships (MASS) 13

14 Expectation for MASS Outcome of MSC 98 (June 2017) Agreed to consider as the initial work program Undertaking a regulatory scoping exercise on existing IMO regulations to understand regulatory implications arising from MASS Definition of an autonomous ship Different levels of autonomy, including semiautonomous and unmanned ships 14

15 Expectation for MASS Force majeure, etc. 2,291 (20%) Insufficient watch 2,296 (20%) Material or Structure 499 (4%) Other human factors 1,823 (16%) Carelessness of weather and sea conditions 614 (6%) Others 2,790 (24%) Maintenance problem 1,068 (9%) Human factor 8,605 (76%) Engine malfunction 1,323 (12%) Inappropriate maneuvering 1,481 (13%) Source: Japan Coast Guard 15

16 MASS project in Japan Development of the technical concept Shipbuilding Solutions Shipbuilder and System integrator Advanced study of ship navigation Academy Ship operator Classification Society Abundant achievements of ship operation Authority Technical concept for MASS Indispensable for social implementation National Institute Platform for cooperative activities on R&D, Regulations and Standards Indispensable for ship safety 16

17 MASS project in Japan Development of the technical concept A thorough efficiency improvement of maritime transport Smooth cooperation with other transportation sectors Active cooperation with land resources Reformation of maritime transport works Total cost reduction in logistics Reduction of environmental risks Reduction of seafarer s workload Minimize marine accident 17

18 ClassNK s challenge Investigation of the potential risks and their impact on the safety of MASS Development of functional requirements for safe operation of MASS 18

19 Ship digitalization Advanced solutions to handle big data 19

20 Future Image of Survey using ShipDC Manufacturer Modification of manufacturers recommended maintenance interval Confirmation, appraisal, examination of data accumulated NK (Class) Postponement/ omission of survey under opening up condition Insurance company Benefits gained from the data accumulated (using CMAXS or equivalent) Condition Index trend, alarm history, maintenance history, etc. Ship 20

21 temp. temp. ClassNK CMAXS How does it work? Abnormality of too high high temp. under high pressure maybe trivial safety zone Abnormality of too low Incorrect estimation can occur at these points high temp. under low pressure maybe fatal 21 pressure (or engine speed, output, etc.) 21

22 ClassNK CMAXS Maintenance Record Condition Monitoring Data ShipDC Office Spare Parts Inventory Data Planned Maintenance Data Condition Monitoring Data Access anytime and anywhere Data is stored in a highly secure database 22 22

23 Condition Monitoring data ClassNK CMAXS Class Survey by using ClassNK CMAXS Data in ShipDC; Maintenance data(maintenance items/record, running hours) Spare parts data (order history, purchase request) Condition monitoring data, analyzed data, diagnostic result ShipDC Maintenance/ spare parts data Surveyor browse the following items, Chief Engineer s report Maintenance record Condition monitoring record, diagnostic result and analyzed data Surveyor Increased effectiveness of survey work onboard ship 23 23

24 Internet of Ships Open Platform PU Platform Users Ship owners Operators Shipyards PP Platform Provider - Companies providing data collection services Ship Data Center -Aggregation/ management/ standardization of the collected data -Integration with other data -Providing the data SP Solution Provider -Utilization of data of ShipDC for various applications and services SU Solution Users Ship owners Operators Ship Management Solution providers DB Data Buyers Seafarers Shipyards Manufacturers Weather forecasting companies Insurance companies, etc. 24

25 Regulatory developments Low sulphur regulations - Impact on fuel and machinery Ship digitalization Sophisticated Advanced Emerging Risks Analysis Solutions Regulatory Framework

26 for your kind attention Masaki Matsuanga General Manager of External Affairs Department Nippon Kaiji Kyokai (ClassNK) Tel: