Charting Key Regulatory Change Across Maritime Law in 2025 and Beyond

 

A tidal wave of new regulations is set to hit the global maritime sector this year, representing fresh, highly-complex compliance challenges. From environmental performance to evolving security and safety standards, the shipping industry faces a raft of new rules intended to ensure safe operations and reduce 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 through the period of change.

A global outlook for regulatory updates

At a global level, the International Maritime Organization (IMO) has been publishing important new regulations for the past five years, with others under consultation, but many critical updates have only just or are expected to become applicable.

They have wide ranging implications that can be broken down into two key areas: first, environmental protection. This relates to international efforts to improve ship design, operational efficiency and reduce the world’s reliance on fossil fuels; therefore, lowering the sector’s environmental impact.

Second, a focus on maritime safety, specifically related to the use of alternative fuels, as well as the importance of robust cybersecurity protocols.

Cyber threats: navigating troubled waters

Cyber protection remains of critical importance for the maritime sector. The recent digitalisation of ships, combined with growing geopolitical tensions, have created the perfect storm.

There were reports of a spike in incidents in 2024 but the true scale of the impact today is yet to be revealed. Official statistics identified at least 64 cyber incidents targeting maritime organizations in 2023, according to the Netherlands’ NHL Stenden University of Applied Sciences. A decade earlier, there were three, and zero in 2003.

According to a 2023 report, on average a cyberattack within the maritime industry costs the target organization approximately USD$550,000 – up from USD$182,000 in 2022. Demands for ransom have increased by more than 350%, with the average ransom payment at USD$3.2m in 2023 – up from USD$3.1m the previous year.

In response to intensifying concerns over safety at sea in a digital world, IMO has published several standards in recent years with the aim of enhancing ship safety standards. These include a focus on improving crew training, implementing new technologies, and ensuring that international regulations keep pace with innovations such as autonomous shipping.

Working towards carbon-free journeys

In July 2023 the IMO adopted the "2023 Revised IMO Strategy on Reduction of GHG Emissions from Ships," which included targets to tackle harmful emissions. The targets are broken down into four key areas:

1. To lower the carbon intensity of new ships, by strengthening their energy efficiency design requirements.
2. To reduce CO2 emissions per transport work, as an average across international shipping, by at least 40% by 2030, compared to 2008.
3. Uptake of zero or near-zero GHG emission technologies, fuels and/or energy sources to represent at least 5%, striving for 10%, of the energy used by international shipping by 2030.
4. Reduce GHG emissions from international shipping compared to 2008:

• By 20%, striving for 30% by 2030
• By 70%, striving for 80% by 2040
• To net zero by or around 2050.

Short to mid-term measures for environmental protection

The IMO’s Marine Environmental Protection Committee (MEPC) is expected to finalize and approve a series of short to mid-term measures that will underpin these ambitious environmental targets by April 2025, with an anticipated roll-out by 2027.

One element will likely focus on the measurement of the ship’s GHG intensity on a Well-to-Wake (WtW) basis per energy consumed on board — the GHG Fuel Standard (GFS) - combined with a phased reduction of the GHG Fuel Intensity (GFI) over time. This equation will relate to a possible correction factor for ships serving ports of developing countries.

Furthermore, there are plans to attach a price to carbon dioxide (CO2) emissions to incentivize shipowners and operators to reduce emissions by selecting cleaner fuels such as synthetic fuels derived from renewable sources, as well as adopting energy-efficient technologies.

We can also expect an increased governance of the fund under the IMO’s remit. This emphasizes the need for transparency, accountability and good governance of revenue management, and a balanced geographical representativeness of its membership.

Key priorities for the United States

1) Cybersecurity

In-line with the international agenda to safeguard shipping and port companies from bad actors online, The Vessel Cyber Risk Management Work Instruction (CVC-WI-027), which was published in October 2020 and revised in October 2023, provides guidance on the United States Coast Guard's (USCG) approach to assessing cyber risk in commercial vessels.

It outlines expectations for U.S.-flagged vessels and companies to integrate cyber risk management into their Safety Management Systems (SMS). Furthermore, foreign-flagged vessels calling at U.S. ports must have adequately addressed cyber risk management in their SMS.

Additionally, an executive order signed in February 2024 mandates that cyber threats be addressed through updates to Part 6 of Title 33 of the Code of Federal Regulations (CFR), which includes cybersecurity protocol. The executive order defines a "cyber incident" and establishes reporting requirements for them. This reporting requirement also applies to foreign-flagged vessels operating in U.S. waters and ports.

Furthermore, the USCG has taken steps to update its maritime security regulations. This proposed rule would introduce several requirements for owners or operators of U.S.-flagged vessels, facilities and Outer Continental Shelf facilities. It would mandate the implementation of cybersecurity measures aimed at identifying risks, detecting threats and vulnerabilities, protecting critical systems, and facilitating recovery from cyber incidents.

2) Increased environmental protection at sea

October 2024 saw the U.S. Environmental Protection Agency (EPA) publish its final rule under the Vessel Incidental Discharge Act (VIDA). It established federal performance standards for marine pollution control devices applicable to discharges into U.S. waters and the contiguous zone.

The USCG is required to develop corresponding implementation, compliance and enforcement regulations within two years. These regulations may include requirements for the design, construction, testing, approval, installation and use of devices necessary to meet the EPA standards.

The EPA’s rule took effect on 8 November 2024; however, the federal standards will only become enforceable once the USCG finalizes its regulations. Until then, existing requirements from the 2013 Vessel General Permit (VGP) and the USCG’s requirements under section 1101 of the Nonindigenous Aquatic Nuisance Prevention and Control Act (NANPCA) will remain in effect.

Two types of standards have been established under VIDA. The general standards are organized into these three categories:

• General operation and maintenance
• Biofouling management
• Oil management

The specific standards address discharges of 20 different pieces of equipment and systems. The new requirements are at least as stringent as those in the VGP. We can expect these to transition into regulation that reflect national technology-based standards of performance, improve clarity, enhance enforceability and implementation, and incorporate new information and technology.

California Air Resource Board (CARB) 2020 At-Berth Regulation

Vessels visiting California must now report each visit within 30 days of departure and meet opacity requirements. Emissions controls compliance will also take effect. Two years ago, container and refrigerated cargo vessels, as well as passenger cruise vessels were required to comply with these controls, while roll-on/roll-off vessels and tanker vessels that visit the Ports of Los Angeles or Long Beach are now following the requirements as of January 2025, and finally, all remaining tanker vessels must comply by January 2027.

As well as communicating with the regulated terminal at least seven days prior to arrival, the vessels must comply by reducing emissions while at the terminal. This could mean connecting to shore power, employing a CARB-approved Emission Control Strategy (CAECS) or an approved innovative concept within two hours of the vessel arriving at the berth, continuing on until one hour before the pilot boards the vessel for departure.

Building Awareness to Manage Uncertainty

Uncertainty remains as the IMO, and country-specific regulators, work towards finalizing these safety and environmental policies. Maritime and shipping organizations should take a proactive approach to prepare for compliance by building their awareness of new regulations on the horizon. Awareness will help them to steer a smooth course to compliance in the long-term. The ABS 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.