INTERCARGO Annual Review for 2023/4 has been published, shedding light to initiatives and addressing critical challenges, including the implementation of IMO’s net-zero emissions target, maritime security concerns in the Red Sea region, and the implementation of the Ballast Water Management Convention.
The Association’s Chairman Dimitri Fafalios reflected on key developments during 2024, including the August launch of the Dry Bulk Centre of Excellence (DBCE) and its DryBMS portal, demonstrating the sector’s dedication to operational excellence. Furthermore, the Association marked a milestone with its first-ever report communicating its messaging via ESG and showcasing progress in environmental stewardship, social responsibility and governance.
Safety maintained its position as the foremost priority, with the latest Bulk Carrier Casualty Report revealing positive trends in ship loss reduction despite fleet growth. However, the organisation emphasised that continued vigilance remains essential, particularly regarding cargo liquefaction risks.
The launch of Dry Bulk Centre of Excellence (DBCE)
INTERCARGO and RightShip, the founding members of DBCE, developed the DryBMS quality standard for the dry bulk sector to promote safety, environmental, and operational excellence. The standard operates through company self-assessment against established industry key performance indicators and performance benchmarks.
INTERCARGO condemns the ongoing targeting of merchant ships, which directly contravenes the fundamental principle of freedom of navigation. This principle must be upheld, allowing the safe trade of essential goods across the globe. As during COVID times, dry bulk shipping continues to ensure the transport of key supplies and the smooth running of the global economy. Once again, everyone should be reminded of the value of the seafarers and the imperative for their legal designation as key workers by all nations, with special or favourable handling by ports and countries of destination.
Cargoes
The safe carriage of cargoes is fundamental to the bulk carrier industry; however, not all stakeholders are meeting their responsibilities to provide masters and crews with the essential information needed to ensure the safe shipment of cargoes. INTERCARGO strongly believes that shippers and receivers continue to misdeclare cargo — whether intentionally or out of negligence—with potentially tragic results. Moreover, the Association is particularly concerned with Group A cargoes, which may undergo moisture-related cargo failure mechanisms such as liquefaction and dynamic separation.
The Association’s recent Bulk Carrier Casualty Report highlights the impact of liquefaction on bulk carrier losses and seafarer deaths. INTERCARGO takes an active role at the IMO and other forums to promote the safe carriage of cargoes. To assist the Association’s work, INTERCARGO’s Cargo Panel considers various cargo-related matters, including liquefaction, and advises the Technical Committee accordingly.
Design & Construction
INTERCARGO actively monitors the development of rules and guidelines for bulk carriers and associated on-board equipment on a continuous basis, with a particular emphasis on the Common Structural Rules for Bulk Carriers and Oil Tankers. The Association is currently participating with IACS and other industry partners with a review of the recently revised IACS Recommendation 34 – Standard Wave Data.
Investigation of incidents
Dry bulk ships are at the very heart of global trade, transporting iron ore, steel, coal, cement, and grains. As the statistics of the INTERCARGO Bulk Carrier Casualty Report 2024 demonstrate, there is a clear trend of improved safety and declining ship losses at a time of fleet growth. Improved safety is largely thanks to constant learning, better crew training, improved ship design, new technology, and stronger regulatory compliance. However, very sadly, major incidents involving loss of life have occurred, and we must pay close attention to the causes explained in this report—there is no room for complacency.
Reduction of Greenhouse Gas (GHG) emissions
INTERCARGO fully supports the IMO’s ambition to achieve net-zero emission shipping by or around 2050. However, the challenges ahead are substantial, and time is running short to meet these targets. Decisive action from all stakeholders across the maritime dry cargo chain is needed to succeed in this global effort.
Ballast water
To prevent the spread of invasive species, the International Maritime Organization adopted the International Convention for the Control and Management of Ships’ Ballast Water and Sediments (Ballast Water Convention), which entered into force on 8th September 2017. According to INTERCARGO a holistic approach to regulations is also important. Shipping is working to decarbonize, which in the short to mid-term will mean finding efficiencies and ultimately using less power.
However, regulations such as the Ballast Water Management Convention effectively require vessels to use more power and thus produce more emissions, leading to a situation where one environmental regulation potentially negatively impacts another. Regulators should recognize the consequences of all regulations and how they may impact each other.
Piracy and armed robbery at sea
There has been an improvement in the overall situation of piracy and armed robbery against ships in Asia during January-June 2024, with a 16% decrease in the number of incidents compared to January-June 2023. A total of 51 incidents were reported during January-June 2024, compared to 61 incidents in the same period in 2023.
Kidnappings for ransom occurred in the Gulf of Guinea (GoG) in 2024. In January, nine crew members were kidnapped from a Tuvalu-flagged tanker 46 nautical miles southwest of Bioko Island, Equatorial Guinea. On May 29, two crew members were kidnapped from a general cargo ship 25 nautical miles south of Bioko Island.
Somali piracy still poses a threat, with eight reported incidents in the first half of 2024, including three hijackings.
Digitalisation & Cyber Risks
The maritime industry is undergoing rapid digital transformation, driven by the twin goals of operational efficiency and decarbonisation. Bulk carrier shipowners are increasingly digitalising their operations while ensuring robust cybersecurity across the entire supply chain.
Human element
INTERCARGO continues to participate in the Human Element Industry Group (HEIG), established in conjunction with the IMO to facilitate industry input into various IMO initiatives. The primary focus has been on hazards associated with Enclosed Space Entry, specifically emphasizing “time pressure” and its impact on the effective implementation of enclosed space entry procedures.
The Human Element Advisory Group (HEAG), led by the UK Maritime and Coastguard Agency (MCA), has been in place since late 2020 and is tasked with working with the industry to examine ‘safety culture’ within the shipping industry. INTERCARGO continues to support this initiative through active participation in the group’s routine meetings, which are currently focused on “Human-Centered Design.”
Sustainability / ESG
The work of INTERCARGO on environmental soundness, placing seafarers at the center of the safety imperative, promoting best practices, and advancing DryBMS as drivers of governance excellence are clear examples. In communicating its messaging via ESG, INTERCARGO produced its first-ever ESG Review in 2024.
Download the INTERCARGO annual review: INTERCARGO Annual Review
