This year, the global maritime sector faces a wave of new regulations that will create new, highly complex compliance challenges. From environmental performance to evolving safety and security standards, the shipping industry is facing a host of new rules aimed at ensuring safe operations and reducing greenhouse gas (GHG) emissions.
In this article, Stamatis Fradelos, vice president of regulatory affairs at the American Bureau of Shipping, explains what the flood of new regulations really means and how operators can navigate the changing times.
Global perspective on regulatory updates
At the global level, the International Maritime Organization (IMO) has been publishing important new regulations over the past five years, in consultation with others, but many important updates are only now or are expected to become applicable.
These have a wide range of implications that can be divided into two key areas: first, environmental protection. This concerns international efforts to improve ship design, operational efficiency and reduce the world’s dependence on fossil fuels; therefore, reducing the sector’s environmental impact.
Second, the focus on maritime safety, particularly related to the use of alternative fuels, and the importance of robust cybersecurity protocols.
Cyber threats: navigating troubled waters
Cyber security remains of paramount importance for the maritime sector. The recent digitalization of ships, combined with rising geopolitical tensions, has created a perfect storm.
There have been reports of a spike in incidents in 2024, but the true extent of the impact is still unknown. Official statistics show at least 64 cyber incidents targeting maritime organizations in 2023, according to NHL Stenden University of Applied Sciences in the Netherlands. Ten years earlier, there were three, and in 2003, there were zero. According to the 2023 report, the average cost of a cyberattack in the maritime industry is estimated at $550,000 to the targeted organization – up from $182,000 in 2022. Redemption claims have increased by more than 350%, with the average redemption payment of $3.2 million in 2023, up from $3.1 million the previous year.
In response to growing concerns about maritime safety in a digital world, the IMO has published several standards in recent years to raise ship safety standards. These include improving crew training, implementing new technologies, and ensuring that international regulations are aligned with innovations such as autonomous shipping.
Working towards carbon-free travel
In July 2023, the IMO adopted the “Revised IMO Strategy for Reducing Greenhouse Gas Emissions from Ships by 2023,” which included targets to combat harmful emissions. The targets are broken down into four key areas:
1. To reduce the carbon intensity of new ships by strengthening energy efficiency requirements.
2. Reduce CO2 emissions per transport operation on average from international shipping by at least 40% by 2030 compared to 2008.
3. Deploy zero- or nearly zero-emission technologies, fuels and/or energy sources to account for at least 5% by 2030, aiming to achieve 10% of the energy used by international shipping.
4. Reduce greenhouse gas emissions from international shipping compared to 2008:
• By 20%, aiming to reach 30% by 2030
• By 70%, aiming to reach 80% by 2040
• To zero by around 2050.
Short- and medium-term environmental measures
The IMO Marine Environment Protection Committee (MEPC) is expected to finalise and adopt a series of short- and medium-term measures that will underpin these ambitious environmental targets by April 2025, with expected roll-out by 2027.
One element is likely to focus on measuring a ship’s greenhouse gas intensity based on the energy consumed on board from well to wake (WtW) – the Greenhouse Fuel Standard (GFS) – combined with a phased reduction in the Greenhouse Fuel Intensity (GFI) over time. This equation will address a possible adjustment factor for ships serving ports in developing countries.
In addition, a price on carbon dioxide (CO2) emissions is planned to incentivize shipowners and operators to reduce emissions by choosing cleaner fuels, such as synthetic fuels derived from renewable sources, and by implementing energy-efficient technologies.
We can also expect the fund’s governance to be strengthened under the IMO’s remit. This emphasizes the need for transparency, accountability, and proper revenue management, as well as balanced geographical representation of its members.
Key Priorities for the United States
1) Cybersecurity
In line with the International Plan to Protect Shipping and Port Companies from Online Attackers, the Ship Cyber Risk Management Workbook (CVC-WI-027), published in October 2020 and revised in October 2023, provides guidance on the U.S. Coast Guard’s (USCG) approach to assessing cyber risks on commercial vessels.
It sets out expectations for U.S.-flagged vessels and companies to integrate cyber risk management into their safety management systems (SMS). In addition, foreign-flagged vessels entering U.S. ports must have appropriate cyber risk management information in their SMS.
In addition, an executive order signed in February 2024 addresses cyber threats by updating Part 6 of Title 33 of the Code of Federal Regulations (CFR), which includes a cybersecurity protocol. The order defines a “cyber incident” and establishes reporting requirements. This reporting requirement also applies to foreign-flagged vessels operating in U.S. waters and ports.
In addition, the USCG has taken steps to update its maritime security regulations. This proposed rule would impose several requirements on owners or operators of U.S.-flagged vessels, facilities, and outer continental shelf facilities. It mandates cybersecurity measures to identify risks, identify threats and vulnerabilities, protect critical systems, and facilitate recovery from cyber incidents.
2) Strengthening Environmental Protection at Sea
In October 2024, the U.S. Environmental Protection Agency (EPA) published its final rule under the Vessel Incidental Discharge Act (VIDA). It established federal performance standards for marine pollution control devices that apply to discharges into U.S. waters and the contiguous zone.
The USCG must develop appropriate implementation, compliance, and enforcement rules within two years. These rules may include requirements for the design, manufacture, testing, approval, installation, and use of devices necessary to comply with EPA standards.
The EPA rule took effect on November 8, 2024; howeverThe federal standards will not take effect until the USCG has finalized its rules. Until then, the existing requirements of the 2013 Vessel General Permit (VGP) and the USCG requirements under Section 1101 of the Non-Native Aquatic Organism Prevention and Control Act (NANPCA) will remain in effect.
Two types of standards are established under VIDA. General standards fall into three categories:
• General Operation and Maintenance
• Biofouling Management
• Oil Management
Specific standards address discharges from 20 different pieces of equipment and systems. The new requirements are at least as stringent as those in the VGP. We can expect them to evolve into provisions that reflect national technology performance standards, improve clarity, enhance efficiency and implementation, and incorporate new information and technology.
2020 California Air Resources Board (CARB) Rules at berth
Vessels visiting California must now report each visit within 30 days of departure and comply with opacity requirements. Emissions control compliance will also take effect. Two years ago, container and reefer cargo ships, as well as passenger cruise ships, were required to comply with these requirements, while bulk/load vessels and tankers visiting the ports of Los Angeles or Long Beach are now required to comply by January 2025, and finally, all other tankers must comply by January 2027.
In addition to contacting a regulated terminal at least seven days prior to arrival, vessels must comply by reducing emissions while at the terminal. This could mean connecting to shore power, implementing a CARB-approved Emission Control Strategy (CAECS) or an approved innovative concept within two hours of the vessel arriving at the berth, continuing to operate for up to one hour before the pilot boards the vessel for departure.
Developing Awareness to Manage Uncertainty
Uncertainty remains as IMO and country-specific regulators work to finalize safety and environmental policies. Maritime and shipping organizations should take a proactive approach to prepare for compliance by increasing their awareness of the new regulations on the horizon. Awareness will help them steer a smooth course toward compliance in the long term. ABS’s Regulatory Trends and Impact Report, which provides updated guidance to help navigate the regulatory landscape, can be downloaded here .
Stamatis Fradelos is Vice President of Regulatory Affairs at the American Bureau of Shipping.