Piracy events fall 25% to 1996 levels

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

One tonne of carbon dioxide (CO2), or;
The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
~~9.000 * EUR 75 = EUR 675.000
~~7.000 * EUR 75 = EUR 525.000
~~4.000 * EUR 75 * 50% = EUR 150.000
~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

‍https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

‍https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

‍https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en‍

IMD has released their Q3 report, which shows a significant decrease in piracy activity. There has only been 1 incident this far in 2016 in the Gulf of Aden/Somalia, and activity is now significantly in Indonesia, India and Nigeria.

Insurance Marine News have published the following:

With just 42 attacks worldwide in Q3, piracy and armed robbery at sea has fallen to its lowest levels since 1996, says the International Maritime Bureau in its latest report.
There have been 141 reported incidents in the first nine months of 2016, with 111 ships boarded, 15 attempted attacks, five vessels hijacked and 10 vessels fired upon. This represents a 25% decrease from the same period in 2015.
IMB reports that 110 crew members were taken hostage – down from 266 in the same period last year — five were assaulted, six injured and 49 kidnapped.
The main bulk of the 141 reported incidents for 2016 occurred in Indonesia, Nigeria and India, with Peru and Vietnam following some way behind in fourth and fifth.
There were 33 reported attacks in Indonesia in the first nine months of 2016, down from 86 for the same period last year. “Attacks in Southeast Asia tend to be low-level in nature and take place at night”, IMB said.
Kidnappings and armed theft remain the main concerns in Gulf of Guinea/Nigeria. There have been 31 reported incidents – up from 12 in the same period last year. Thirteen seafarers have been taken hostage onboard, while 29 have been kidnapped. “Nigerian attacks are often violent, accounting for eight of the 10 vessels fired upon worldwide”. The IMB thinks that there are significantly more attacks than those reported.
There has only been one attempted attack in Gulf of Aden/Somalia in the first nine months of the year, indicating the extent to which this once major home of pirate attacks has been successfully quietened through co-ordinated campaigns against the Somalia-based pirate groups.
The main ship-types affected were; 36 bulk carrier incidents, 36 product tanker incidents, 11 tanker incidents, nine container incidents and eight chemical tanker incidents.

SOURCE: Insurance Marine News: Peter Birks

Piracy events fall 25% to 1996 levels

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1st January 2024.

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.