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GENPRO QUARTERLY BULLETIN 2
April – June 2024

GenPro’s Commitment to Excellence: News and Updates

Dear Esteemed Member,

As we reach the midpoint of the year, it’s a natural time to reflect on the events and developments of the last quarter. This past quarter has certainly been an eventful one, and we’re eager to share our news and insights with you.

In June, GenPro achieved its ISO 9001:2015 certification, for all three GenPro locations, in Cyprus, Singapore and India. This significant milestone underscores our unwavering commitment to providing the highest quality products and services to our members and partners.

The ISO certification is a tangible reflection of our commitment to consistently delivering services that not only meet but exceed customer and regulatory requirements. It is also a testament to our pursuit of continuous improvement and excellence throughout our operations.

During Posidonia Week, GenPro participated at the vibrant Posidonia Expo under the Cyprus Deputy Ministry of Shipping Booth, where we connected with many new and existing partners. GenPro was honoured to host a Breakfast Networking Event in Athens featuring keynote speaker Dr. Jan Hoffmann, Head of the Trade Logistics Branch at United Nations on Trade and Development (UNCTAD). Dr. Hoffmann shared his unique perspective on “Geopolitical Turbulence and Maritime Procurement: Building Resilience in a complex Environment” at the event, which brought together members, contracted suppliers, and colleagues, for a morning of networking and global insights. We thank all who were able to attend and for the excellent feedback received.

On the commercial front in Q2 we have welcomed 17 new suppliers into our network and concluded an additional 15 cruise specific agreements. We are also working on a refined Supplier Relationship Management Programme, which will make our processes with the suppliers more effective on operational, tactical and strategic levels.

Our Compliance and Sustainability team have conducted 23 supplier audits since our last Bulletin, and continue on the ever evolving journey towards achieving a green supply chain. In coming months, we will also delve into researching our supplier networks’ scope 2-3 emissions, further adding value for our members in terms of emission visibility, reporting and informed supplier selection.

Moving forward we will share examples of Best Practices from our supplier pool, highlighting what we regard to be interesting ESG or Safety related practices. In this instance we would like to highlight the sustainability efforts of one of our GenPro suppliers, Maas-Riva, to reduce exposure to DEHP. Keep reading to find out what DEHP is.

I would also like to ask you to join me in congratulating Christodoulos Manoli for being promoted to Compliance & Sustainability Manager and wish him all the best in his new role. Christodoulos has been with GenPro for 3 years, in the position of Compliance & Sustainability Officer where he excelled in his responsibilities, a true teamplayer, adding considerable value to the team efforts.

On the conference front, GenPro attended Singapore Maritime Week in April. During the trip, I was invited to speak at a TWICE talk at Total Energies office about career advancement in a male dominated industry, providing insights on diversity, sustainability and mentorship. The TotalEnergies Women’s Initiative for Communication and Exchange (TWICE) is an initiative to promote the culture of women’s empowerment and gender diversity.

At Easter the GenPro Cyprus team extended a helping hand to the Cyprus Red Cross branch, who were preparing 500 grocery boxes for families in need. The team helped pack boxes of essential items at their Limassol warehouse. Charities often lack physical helpers for such food drives, which is why GenPro was glad to donate time to help the less fortunate.
Finally, we are delighted to welcome two new colleagues into our GenPro team.

Yours sincerely,

Maria Theodosiou
Managing Director


COMMERCIAL UPDATES

GenPro’s Commercial team diligently tracks market insights, trends, and developments from reliable sources to keep clients updated on the latest price movements in key commodities.

The ongoing disruption in the Red Sea continues to significantly impact global shipping and trade. This has led to increased shipping costs and rerouted traffic around the Cape of Good Hope instead of the Suez Canal, adding considerable time and expense to shipments. Consequently, global supply chains are affected, contributing to higher emissions and fuel consumption due to longer travel distances.

1. Coal prices have decreased by 2.94% since the beginning of 2024, according to trading data from a contract for difference (CFD) tracking the benchmark market for coal.

2. Metal prices gained by 5.5%, led by zinc (+8.3%), nickel (+7.8%) and copper (+7.1%). Precious metals also rose, with silver (+6.8) and platinum (+7.9%) leading the gains.

3. Energy prices declined by 6.4% in May, led by a 7.5% decrease in crude oil prices according to the World Bank report published in June 2024. Non-energy prices changed little, as a group.

4. Agricultural prices fell by 2.2% in May, while food prices increased by 1.3%, driven by grains (+4.8%) and oils and meals (+1.8%). Raw materials inched up by 0.2%, whilst beverage prices dropped by 13.8%. Fertiliser prices decreased by 4.7%.


LUBE OIL DESK NEWS

The Lube Oil Desk team continues to host interactive webinars in cooperation with lube oil majors, with the most recent webinar held in collaboration with Shell Marine in June. The webinar focused on the topic of Marine Decarbonisation and was attended by 63 participants online. The key takeaways were:

Marine Decarbonisation – Future Fuels and Lubrication
Fossil LNG enables immediate decarbonisation, providing a viable near-term solution for reducing emissions. In addition to LNG, biofuels remain a viable alternative for decarbonisation. Meanwhile, bio/syn LNG and methanol are gaining momentum as emerging fuel options, though ammonia still faces challenges related to safety and propulsion technology. Importantly, no dedicated lubricants are required for LNG, biofuels, and methanol, but the use of ammonia may necessitate the development of specific lubricants if its adoption becomes more widespread.

Shipping Decarbonisation Technology

  • Innovation, Research, and Development
    Integrated maritime solutions are currently driving progress towards a more sustainable and profitable future. Several digital tools are in place, from optimising draft and trim to air lubrication, which reduces the vessel’s frictional resistance through microbubbles. Consequently, this results in lower energy requirements, reducing fuel consumption and emissions. It was highlighted that air lubrication, in particular, can achieve up to 8.5% savings in fuel consumption.
  • CO2 Compensation for Lubricants
    Suppliers are increasingly focused on helping reduce emissions by calculating and securing carbon footprints and retiring carbon credits. Packaging solutions, such as recycling plastics and using alternative energy from renewable sources, help to avoid emissions. Additionally, technical and digital tools, such as lube monitoring, ensure customer engines operate in optimal conditions, reducing fuel consumption, maintenance, and consequently, emissions.

Learn more about Shell’s progress and pathways to decarbonise shipping here: Decarbonising Shipping | Shell Global


COMPLIANCE & SUSTAINABILITY UPDATES

In the second quarter of 2024, we have covered significant ground towards our sustainability and compliance objectives.

  • ISO 9001:2015 certification: In Q2 GenPro has achieved certification of a globally recognised standard for quality management systems certification, for all three GenPro locations, in Cyprus, Singapore and India.
  • GenPro’s Green Day: As part of our commitment to developing and maintaining a high level of supply chain sustainability, in Q2 we conducted an online webinar exclusively for our contracted suppliers and service providers. The webinar’s title was ‘Strategic Alignment’.
  • Physical and remote audits: In terms of our continuous efforts of evaluating our suppliers compliance and ESG performance in Q2 we successfully conducted 15 physical and 8 remote audits, extending across South Africa, South Korea, Singapore, China, Cyprus, Greece, Turkey, and the Netherlands. The Compliance & Sustainability team offers ongoing support to our suppliers in taking corrective actions and developing the necessary procedures for delivering defined quality products and services.

As we progress into 2024, we remain committed to achieving excellence in both sustainability and compliance in the maritime supply chain.


GENPRO SUPPLIER BEST PRACTICES

Maas-Riva is striving to ensure that all products delivered on board are free of DEHP. With the availability of safer alternatives, Maas-Riva has therefore introduced a complete DEHP free product range of PVC hoses to achieve this goal. DEHP stands for di(2-ethylhexyl) phthalate which belongs to a group of chemicals called phthalates.

These chemicals can be found in vinyl floorings, wall coverings, medical devices, even in children’s toys, and due to their effectiveness as a plasticiser they are used to make PVC plastic soft and flexible.

DEHP can leach out of these products over time, especially in contact with liquids or heat, occurring into the environment and humans through ingestion, inhalation or skin contact, causing respiratory issues, endocrine disruption, carcinogenesis, and more. Because it does not bind with the plastic, DEHP is listed as a Substance of Very High Concern (SVHC) on the REACH list due to its toxic properties.

GENPRO CONTRACTED SUPPLIERS

The Terms & Conditions of each agreement are communicated to the participating member upon contract conclusion via email. The member is thereafter responsible to upload the necessary information on their selected e-procurement system.

Explore GenPro’s Directory of Suppliers here!


NEW COLLEAGUES

GenPro has recently welcomed two new members to the Cyprus team, who joined in May:

Georgia Fotiou – Commercial Officer

Georgia holds a BSc in Economics from the University of Cyprus and an MSc in Shipping and Finance from the Cyprus University of Technology. Currently, she is pursuing certification from the Institute of Chartered Shipbrokers (ICS) to become a chartered broker. Georgia has joined the team as a Commercial Officer, where she will assist the Commercial Department in daily operations, including benchmarking, market investigation and analysis, as well as reviewing potential and existing supplier agreements.

Dimitris Perikleous

Dimitris Perikleous – Compliance & Sustainability Officer

Dimitris holds a BSc in Maritime Studies (Marine Science and Management) from Piraeus University of Greece and a Diploma in Marine Surveying – ISM code from Lloyd’s Maritime Academy/North Kent College. Previously Dimitris worked as a Health Safety Quality Environmental (HSQE) Superintendent for 15 years in a shipmanagement company. Dimitris will be dealing with the full scope of supplier audits, sustainability analysis reports, and reviewing the Suppliers Balanced Score Cards, amongst other tasks.

GENPRO IN THE NEWS

Our recent Posidonia Breakfast Networking Event received global maritime press coverage, including from the following publications:


GENPRO MOMENTS!

Posidonia Highlights

Watch Dr. Hoffmann’s speech on “Geopolitical Turbulence and Maritime Procurement: Building Resilience in Complex Environment”

Posidonia 2024