Shipping – into the future : regulatory, technology, and operation

Abstract

Maritime regulations have evolved over the years to address safety and environmental concerns. With increasing awareness towards environmental impacts and the emergence of digital technologies in the Maritime Industry, the IMO (an international regulatory body for the maritime industry) has adopted additional regulations. Despite being ratified by the IMO, individual states have to incorporate IMO regulations into their domestic laws. These regulations are enforced through flag state inspection, port state inspections, and class surveys. International regulations aim to facilitate safe and efficient international shipping. However, competing regional regulations, which arise due to tardy implementation by IMO rules, compromise efficiency and may confuse industry players. Singapore, as a Global Maritime Hub, must prepare herself for changes brought by future regulations. In response to the IMO 2020 Global Sulphur Limit, Singapore joined the LNG Bunkering focus group. Besides, the Maritime Singapore Green Initiatives help to promote clean and green shipping in Singapore. With cyber-attacks occurring more frequently in the maritime industry, Singapore has also launched a 24/7 Maritime Cybersecurity Operation Centre. Lastly, to prepare for future autonomous vessels, a joint developmental study of autonomous vessels and their impacts was formed. This report studies the impacts, challenges, and opportunities for future maritime regulations. The increase in costs due to compliance remains a concern for shipowners as their profit margins will be significantly impacted. Despite these impacts, these regulations brought about profit-making opportunities for players in the maritime value-chain. Also, disruptions brought by technologies may discover new business operations that can be ventured into. The future maritime regulatory framework will be discussed. Lastly, through analysing the impacts and opportunities, this report also provides recommendations for industry players on ways to better cope with future regulations.