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Port State Control Detention Trends (%)

Marshall Islands Liberia Panama

0.79% 1.24%* 1.08%* 2.19% 3.01% 3.31% 1.54% 2.05% 5.18% 4.23% 7.46%** 6.02%** USCG Tokyo MoU Paris MoU AMSA

* Liberia and Panama are targeted for additional PSC examinations by the USCG for having ** Liberia and Panama have exceeded the overall AMSA a detention ratio up to two times the overall detention average. average detention rate over the three years from 2017–2019 and Liberia is listed among the top Sources: 2019 Port State Control Annual Reports. five worst detention rates by flag State.

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04264 LUB Tanker Operator PORTS Ad 210x297.indd 2 16/11/2020 13:39 Contents

LEADERS OPERATIONS n Could the Sea Cargo Charter change n Developments with ballast water 02 tanker shipping? 16 n Ecochlor – new US “VIDA” regulation n Dimitris Fafalios (Fafalios Shipping) and 17 for discharges 03 Karin Orsel (MF Shipping) on shipping’s n  future EOS Risk – piracy strategies for Gulf of 20 Guinea

n Ship registry update n Enclosed space fatalities continue - 05 21 Standard Club n Gibraltar Maritime’s 2020 06 n Making maritime blended learning work ECO 23

n Stena, Latsco and UECC on practicality 08 of decarbonisation

n DNV GL – how maritime will make 10 energy transition

n “All tanker owners considering LNG for 12 newbuilding” – DNV GL 14 n How Hafnia manages vessel performance 24 n Update on tanker employment market

15 n Yara – scrubbers can mean lower CO2

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04264 LUB Tanker Operator PORTS Ad 210x297.indd 2 16/11/2020 13:39 LEADERS Could the Sea Cargo Charter change tanker shipping? number of tanker and dry bulk “Climate alignment” is defined as the degree About Sea Cargo Charter charterers, including Trafigura, to which voyage carbon intensity of a vessel Sea Cargo Charter has a website at Equinor, Total, Gunvor, Shell, category is in line with a decarbonization seacargocharter.org. It shares an office in Occidental, and Dow Chemical, trajectory that meets the IMO ambition of Copenhagen with the Poseidon Principles and reducing total annual GHG emissions by at least Ahave attached their names to an initiative an organisation called Global Maritime Forum, 50% by 2050 based on 2008 levels. called the Sea Cargo Charter, which aims to which has 19 employees, describing itself as provide a framework “for aligning chartering In order to take the volume and distance of “an international not-for-profit organization activities with responsible environmental cargo movements into account, the calculation committed to shaping the future of global behaviour to promote international shipping’s is based on “emissions intensity”, which IMO seaborne trade”. calculates as “grams of CO2 per tonne-nautical decarbonisation”. A first Steering Committee will be elected mile”. The signatories agree to calculate and report at the first Annual Meeting of the Sea Cargo the emissions from their chartering activities, The Sea Cargo Charter relies specifically on Charter Association, which will be held in and assess if they are aligned with the IMO’s the Energy Efficiency Operational Indicator 2021. In the interim, the Steering Committee is ambition of reducing greenhouse gas (GHG) by (EEOI) as the carbon intensity metric, which constituted of the first fifteen Signatories. 50 per cent by 2050 compared to 2008. This is produces the closest measure of the vessel’s true Members commit to “ensure ongoing something all large companies would probably carbon intensity in operation, to a high level of compliance with the Sea Cargo Charter for be planning to do anyway. granularity. new chartering activities through contractual Transparent reporting of emissions is a first The EEOI uses the parameters of fuel means by using the Sea Cargo Charter Clause in step to reducing them. Nobody wants to release consumption, the GHG emission factor for charter parties.” data showing that their emissions are very poor each fuel type, distance travelled while laden They also commit to “contribute to the update compared to their peers. with transported cargo, and amount of cargo and addition of the Sea Cargo Charter Clause transported over given voyage. Catrine Vetereng, vice president, global through the annual review process.” segment director tankers, DNV GL, said during A decarbonization trajectory is a representation of the planned rate of change of a DNV GL webinar that she believes Sea Cargo Poseidon Principles CO2 emissions per unit weight of goods over Charter will “to a great extent influence the The Poseidon Principles, which might be time. tanker owners and the development of the ship.” considered a sister project to the Sea Cargo It is “setting goals for the tanker owners The plan is that standard decarbonization Charter, describes itself as a “framework for and bulkers, and promoting and incentivising trajectories will be produced by the Secretariat integrating climate considerations into lending international shipping decarbonisations, and of the Sea Cargo Charter for each ship type and decisions to promote international shipping’s connecting that with the charterer,” she said. size class. decarbonization”. To assess climate alignment of a specific It has 18 financial institutions as signatories, voyage, the carbon intensity is compared The framework together representing a bank loan portfolio to with where it should be, according to the Sea Cargo Charter aims to develop a global shipping of approximately $150 billion, decarbonization trajectory for its respective ship “framework for assessing and disclosing the more than a third of the global ship finance type and size class. climate alignment of chartering activities,” portfolio. with an aim to “assess and disclose whether Shipowners will need to provide the data The signatories are ABN-AMRO, Amsterdam chartering activities are in line with adopted to their customers, if they are signatories, and Trade Bank, BNP Paribas, Bpifrance, CIC, climate goals.” signatories will provide the data to Sea Cargo Citi, Crédit Agricole, Credit Suisse, Danish Charter. This means that signatories will, on an Ship Finance, Danske Bank, DNB, DVB Bank, annual basis, calculate the GHG emission It says, “to ensure that information provided Export Credit Norway, ING, Nordea, Société intensity and total GHG emissions of their under the Sea Cargo Charter is practical, fair Générale, Sparebanken Vest and Sumitomo chartering activities, and will assess their and accurate, Signatories will only use data Mitsui Trust Bank. climate alignment (carbon intensity relative to types, sources and service providers identified in the Technical Guidance.” established decarbonization trajectories). TO TANKEROperator

Vol 18 No 15 PUBLISHER / EDITOR ADVERTISING SALES PRODUCTION SUBSCRIPTION Future Energy Publishing Ltd / EVENTS David Jeffries Very Vermilion Ltd. 1 year (7 issues) - £195 39-41 North Road Karl Jeffery Only Media Ltd Tel: +44 (0)1253 812297 Subscription hotline: London N7 9DP Tel: +44 (0)20 8150 5292 Tel: +44 (0)208 150 5293 [email protected] Tel: +44 (0)20 8150 5292 www.tankeroperator.com [email protected] [email protected] [email protected]

November - December 2020 l TANKEROperator 2 LEADERS Dimitris Fafalios and Karin Orsel on shipping’s future Dimitris Fafalios, president of Fafalios Shipping, and Karin Orsel, CEO of MF Shipping Group, shared thoughts on where the maritime industry is going, in an ICS webinar “The recovery in the aftermath of COVID” imitris Fafalios, president of technical committee since 2009. said. Fafalios Shipping, said that As of June 1, 2018, the latest information “Shipping and shipping operations is although the industry could be available on its website, Fafalios Shipping management of change. We manage change considered low tech, “we’re SA fleet consists of 5 dry bulk vessels with every single time. That’s what distinguishes Dactually very efficient. an aggregate capacity of more than 320,000 us from a highly automated supply chain.” The dry bulk busines is probably up there dwt, mainly consisting of Supramax and “We go through Panama Canal five times amongst the most efficient in the world. Panamax vessels. - every single time its different for A or B We transport the basic products needed for There is actually quite a lot which other reason. everyday life.” industries could learn from shipping, “We developed risk management Mr Fafalios was elected as chairman including how it manages to stay agile and structures to counter190mm that.” wide x 130mm resilient in the face of enormous change, he of Intercargo in Jan 2019 and chaired its “If you ask us - what is our revenue going

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November - December 2020 l TANKEROperator 3 p2-33:p2-7.qxd 18/03/2014 11:46 Page 5 LEADERS

to be in October we simply don’t know.” “The people onboard must retain their take everybody’s temperature several times “The shipping business hasINDUSTRY been relatively – MARKETSskills as navigators and engineers a day every single day,” he said. “We have resilient to COVID.” They must know what it means to go adapted.” “Therefore our economic model and around the engine room, feel, see and hear A weakness has emerged where IMO is Figure 3: VLCC TCE Freight Rate Distribution 2000-2012 (US$/Day)management model is coderobust. so puttingIt should theory into practiceproblems.” will not good at influencing maritime authorities, actually be taken onboardbe easy. more in land The dry sector is seeing demand for but we are facing rules coming from health -1 Std Dev Average +1 Std Dev based industries. We couldFor giveyears some the evidence has steambeen mounting coal reducing, as companies find and immigration authorities, and national US$10.700/Day US$44.400/Day US$78.100/Day economic professors andthat finance the market professors was adopting “morenew operating environmental methods of power leaders, who don’t understand shipping, he parameters. This has been bolstered by vetting some very good tips from the shipping generation.” said. and technical requirements combined with industry about resilience.” Covid has brought big problems with crew Average TCE required for 10% ROE swollen inventories from past orderbooks. Karin Orsel, MF Shipping 15-year LifeThe | US$ system 48.800/Day for working with a port is changes, particularly in the Far East. “They However, even if these elevated deletions Karin Orsel, CEO of MF Shipping Group, 20-yearvery Life | US$simple. 45.200/Day “You load cargo, you are sent want the ship but don’t care about the crew,” occur, further restraint will still be required. If said that the industry suffers from a poor 25-yearto Life a | port,US$ 43.300/Day told to go at a particular speed, he said. “This is extremely challenging for available tonnage is trimmed and rates rise as public image. “The general public thinks to arrive at a particular time, then stay in us. We’ve had to change trade routes, divert forecast, increasing transit speeds will be a seafarer is a tough gentleman smoking a a queue until the terminal selects you, and the vessel to the most convenient port in tempting. However, speeding up vessels would cigarette having a beer. That’s not how our then discharge the cargo.eliminate It is very some very of the gains byorder raising to maketonnage crew changes.” Then there are Normal Curve Distribution industry is working today.” simple.” availability through reduced voyageproblems times. with the lack of flights. “The industry has picked up several “Shipyards of the worldAlthough can produce the 10% new solution will result in dearer transportation costs, charterers should EU ETS initiatives, they are unknown to the general

2.5 7.5 vessels and relatively latest technology

12.5 17.5 22.5 27.5 32.5 37.5 42.5 47.5 52.5 57.5 62.5 67.5 72.5 77.5 82.5 87.5 92.5 97.5 For shipping to be included in the European public. We raised the standards quite high 112.5 117.5

102.5 107.5 122.5 127.5 132.5 137.5 142.5 147.5 152.5 157.5 162.5 167.5 also support this move, as it will allay any vessels within 18 months of placing an Union Emission Trading Scheme (EU in the tanker segment and cruise industry. Average Monthly TCE (US$000/Day) concerns regarding owners cutting corners to order.” ETS) is an example of “politicians not Source: McQuilling Services. save on operating costs. There’s a high level of governance we want When it comes to digitalisation,Sending a 15-year Mr old vesselunderstanding to the breakers fully what shipping is,” he to fulfil.” Fafalios believes that it must “keep the entered into the consultancy’s quantitative the vessel (Figure 3). in isolation will accomplish nothing,said. meaning MF Shipping, based in the Netherlands, people onboard fully in the loop.” forecasting model. This uses the relationship The explanation for this lies in the effect of collective action is required. Coaxing“To many politicians, shipping is a manages 52 vessels, including product between spot rates and the CI. The result of discounting the cash flows over“It istime. no Theuse developingcash collective a fantastic action, vesselsuch as thatcontainer discussed inship, this ferry or ro-ro, which has got tankers, chemical tankers, multipurpose this analysis indicates a significant freight rate flows in the later years of wherethe project everything make far can reportbe monitored requires truefrom leadership a andfar ourhigher industry profile.” ships and cement carriers. It employs 1000 response to a reduced tonnage supply. This less contribution than those in the early years. has a long history of producing leaders. the shore, and people onboard feel as if they “The regulations we’re going to have to seafarers. response may provide enough evidence to As a result, the economicare impact simply of there to tick boxes.“Will anyone We must step up to the task?” face with ETS will be very negative to the Ms Orsel is co-president of the Royal support the call for scrapping of vessels 15- shortening the vessel’s lifediscourage is not as severe this.” McQuilling asked. TO years of age, or older. as might be expected industry, very negative Association of Netherlands Shipowners to Europe, and will and member of the executive committee of yet the potential for THE FOUNDATION FOR SAFETY OF NAVIGATION increase emissions.” Rate increase substantially different AND ENVIRONMENT PROTECTION Intertanko. In the three VLCC trading routes that TCEs than required SHIP HANDLING RESEARCH Consider how large “I think our industry is very fragmented, McQuilling forecast -AG/West, AG/East and during these years AND TRAINING CENTRE bulk carriers are especially if I look at a part of Europe where WAF/East - the average increase would be 11 is high. ILAWA transhipped into smaller you see a lot of vessel owners who have one WS points, or approximately $17,000 per day. Based on current vessels in Rotterdam. or maybe a dozen [vessels], in comparison The impact on average earnings throughout market realities and This task does not need to big shipowners.” the forecast period is illustrated in Figure 2. the theoretical to be done in Rotterdam, “Maersk is a name familiar with the The most significant rise in owners’ earnings assumptions that and having to pay for general public. But we as an industry have would theoretically occur in 2014. illustrate early emission credits would Further support for this drastic inventory scrapping could been invisible for a long time.” push the task outside the reduction initiative was illustrated from the substantially improve “The other challenge is decarbonisation. EU, which could also economic perspective in a previous report in market fundamentals The big question mark is - will a vessel [find lengthen voyages. which it was observed that the large variation at little expected cost cargo]? Say a dry cargo vessel, in 25 years, of TCEs in the marketplace to the relative to owners, a swift and The shipping industry tankers shorter?” has proposed a tax on difference in required TCEs for the various steady fleet trimming “That’s another challenge we all have to VLCC lifespan assumptions appears to be should occur. every tonne of fuel Our Training Centre offers you: deal with, what is the lifecycle of vessels.” quite small. However, burned or consumed SPECIALIZED COURSES IN HANDLING OF “Does it mean freight rates have to be The $5,500 per day difference between the McQuilling said that globally, he said. LARGE TANKERS! required TCE of a VLCC traded for 15 years it was aware that like completely different to make [low carbon • Two fully equipped manned models representing ships] a valid investment?” and one traded for 25 years is immaterial, any business, tanker tankers of capacity 150 000 DWT and 280 000 DWT compared to the expected variation that will be owners do not operate are available; Corona “We say we are quite proactive as an observed in the marketplace over the life of under an altruistic • STS operations, approaching SBM and FPSO are In terms of establishing industry, also on digitalisation,” she said. included in the programme; virus testing “There is where our opportunity lies, to • Harbour manoeuvres are supported by manned requirements onboard, attract the next generation.” models of large ASD and tractor tugs. Mr Fafalios said that Since 2012, the reading of the In terms of establishing virus testing “ the Maritime Labour For further information please contact: requirements onboard, she said there should Convention could be VLCC sector has remained Ship Handling Research and Training Centre, be “multiple testing to avoid a possible the right place for Ilawa, Poland outbreak, no discussion whatsoever. I am not requirements, making it one of oversupply tel./fax: +48 89 648 74 90 or +48 58 341 59 19 sure if we should make it a regulation.” e-mail: [email protected] a generic procedure. www.ilawashiphandling.com.pl - McQuilling ” “On our vessels we TO

October 2013 TANKEROperator 05 November - December 2020 l TANKEROperator 4 LEADERS Ship registry update Update on ship registry rankings, and news from Isle of Man, Marshall Islands, Cayman Islands, Liberia, UK

he Paris Memorandum of Understanding on Port State Control, covering 26 European countries and Canada, has the Tfollowing for its top 25 ship registries for 2020, based on the total number of inspections and detentions over a 3-year rolling period. They are: 1-10: UK, Norway, Bahamas, Netherlands, Denmark, Marshall Islands, Singapore, Hong Kong, Japan, Bermuda 11-20: Germany, Cayman Islands, Liberia, Sweden, France, Isle of Man, Malta, Belgium, Italy, Greece 21-25: Gibraltar, Cyprus, Ireland, Luxembourg, Turkey. For the US, 25 flag administrations met the requirements for full participation in its QUALSHIP 21 program, covering starting 1 July 2020 to 30 Jun 2021. They are: Bahamas, Bermuda, British Virgin Islands, Canada, Cayman Islands, Croatia, Cayman Islands Registry is presented with an award for achieving an unqualified audit Cyprus, Denmark, France, Germany, Gibraltar, by the Cayman Islands government. From left to right: Chris Saunders, Member of the Legislative Assembly (MLA), Cayman Islands government; Kenrick Ebanks, global director Hong Kong, Isle of Man, Italy, Japan, Jamaica, commercial services with the Maritime Authority of Cayman Islands (MACI); Philip Barnes, Marshall Islands, Netherlands, Norway, financial controller, MACI Republic of Korea, Singapore, Switzerland, 11-20:, Marshall Islands, Japan, Denmark, Norway, Singapore, Taiwan, Thailand, United Kingdom. Belgium, Cayman Islands, Isle of Man, Liberia, Flags on 2 lists were Belgium, Cyprus, The Tokyo MOU, which covers port state Greece, Taiwan, Panama Gibraltar, Greece, Italy, Liberia, Malta, control in the Asia Pacific region, said its 21-25: Portugal, Russian Federation, Netherlands, Korea, Taiwan, Thailand, UK highest performing flags by “excess factor” in Antigua and Barbuda, Malta, Thailand its 2019 lists (covering July 2020 to June 2021) The flags which made it on all 3 of the were Isle of Man above lists were Bahamas, Bermuda. Cayman 1-10: China, Republic of Korea, Hong Kong, The Isle of Man Ship Registry launched a Islands, Denmark, France, Germany, Hong seafarer welfare app in July, available for free Singapore, Bermuda, Germany, Bahamas, Kong, Isle of Man, Japan, Marshall Islands, Norway, France, Malaysia download for seafarers on Isle of Man flag

November - December 2020 l TANKEROperator 5 LEADERS vessels. deploying an in-house inspector to oversee previously served as technical director for The app has been designed to support operations in Australia. the registry, representing Liberia at IMO, and shipboard social activities and social In October 2020, it hired Alexander Schultz- before that was a general manager and principal interaction. It was developed together with Altmann, former chairman of the Tokyo MoU surveyor at Lloyds Register. local maritime training organisation Tapiit. Committee on PSC, and former manager Reynaldo Garibaldi is appointed Senior Vice There are live interactive support sessions for of ship inspection and registration with the President of Maritime Operations and South mental health and fitness. Australian Maritime Safety Authority (AMSA). America. He was formerly chief of navigation The Registry also announced a MOU with and maritime safety with the Panamanian the UK Maritime Accident Investigation Cayman Islands Maritime Authority. Branch (MAIB), establishing that MAIB will In August, the Maritime Authority of the In July, the registry hired Dallas Smith as the have responsibility for the investigation of Cayman Islands (MACI) was presented Director of LNG and Offshore Technology, and certain marine casualties that occur on Isle of with Unqualified Audit Opinion Awards for as General Manager of the Registry’s Houston Man registered vessels. 2018 and 2019 financial years by the Public Office. He is formerly head of US Coast guard Accounts Committee (PAC) for achieving an Liquefied Gas National Center of Expertise. Marshall Islands unqualified audit (thorough audit) for these The Marshall Islands Registry said that it had periods. had a “banner year”, with the best ever ranking On hand to receive these awards where UK Ship Register from port state control authorities globally, Global Director Commercial Services, Kenrick In September 2020, the UK Ship Register including its best performance year with the Ebanks and Financial Controller, Philip Barnes. launched a new online registration system, Paris Memorandum of Understanding (MoU), They were presented by MLA Chris Saunders where customers can register a new vessel, 16th consecutive year with the United States during a ceremony in the meeting chamber of renew registration and check a vessel’s Coast Guard’s Qualship 21 program, remaining the Legislative Assembly. name. They can upload documents and make as one of the top performing flags on the payments. Tokyo MoU, and improving its standing with Liberia In July, the Register announced plans to open the Australian Maritime Safety Administration In August 2020, the Liberian Registry said it an office in Piraeus, Greece. “There is a long (AMSA). was the fastest growing ship registry in the history of Anglo-Greek collaboration in the The registry administrator, International world, having grown “almost 12 per cent” in maritime industry and that’s why we’ve chosen Registries, has focused on strengthening the past 12 monhts. Greece as the location for our first overseas and expanding technical resources this year, It appointed Thomas Klenum as Senior sales hub,” said Katy Ware, Director of UK increasing the number of inspectors, providing Vice President of Maritime Operations. He Maritime Services at the MCA. TO enhanced onboard training where possible, and Gibraltar Maritime’s 2020 This year the Gibraltar maritime sector made a great contribution to the crew changes challenge, offered face to face tuition in its university, had steady business in dry docks, and saw some expansion in services

Seafarers were allowed to enter Gibraltar were needed to fly through these. he International Ship Managers’ throughout 2020, to board a ship from an Association (InterManager) credits aircraft, or leave a ship to board an aircraft. University Gibraltar for how well it supported They needed to have a passport, a ILO 108 The new The Gibraltar Maritime Academy, crew changes during COVID. Seaman book and letter of employment from based at the University of Gibraltar, offers T“I have checked with our members and the shipping company, but no visas required specialist academic programs and a range of all are singing praises,” says Captain Kuba provided they were flying from Gibraltar. A technical training courses. Szymanski, secretary general of InterManager. shipping agent was required to meet the crew On the academic side, there are two “Gibraltar is well suited and geared up to do at the port or airport and handle transportation. undergraduate programmes, both of including crew changes. Gibraltar should be thanked for A limitation was the number of flights cadetship experience. A BSc (Hons) in their attitude and support extended to shipping available out of Gibraltar (for example in Maritime Science (Nautical) with deck and our seafarers. More leaders like Gibraltar November there were only 2 flights a week to cadetship and a BSc (Hons) in Maritime please.” London with BA), although there was plenty of Science (Engineering) with engineer cadetship, “I wish Singapore was that pragmatic. Very hotel space available. which would lead to deck officer of the watch or engineer officer of the watch certification, much comparable situation and location and There are two nearby airports in Spain, allowing graduates to enter the industry two very different approaches.” Malaga, and Sevilla, but Schengen transit visas

November - December 2020 l TANKEROperator 6 GIBRALTAR REPORT

which are currently administered by the SQA and IAMI.

Sandvik Electronics Sandvik Marine Electronics of Gibraltar reports that it has 150 vessels signed up for its shore based maintenance (SBM) service to receive complete technical management of all of the equipment on the bridge, including 24 hour support and worldwide service. Its engineers can complete any tasks onboard whether about navigation, communication or connectivity, the company says. New clients include Synergy of Mumbai and Thomas Schulte Shipmanagement of Hamburg. As an example of the services, at the time of writing in early November it had one directly as officers. Both start in September elements we were missing. The prospect of technician flying out to Malaysia to assist with 2021. having an academy run by the University of LNG Enugu and LNG Oyo in a shipyard, with the trip requiring a 2 week quarantine stay in a Both courses have obtained MCA approval. Gibraltar makes a lot of sense.” hotel before being allowed to attend. This means that the qualification BSc Maritime International interest in the programmes has Science has been approved as meeting the been growing with many enquiries coming It has added the Korean Register to the list requirements of the STCW Code (II/1&II/2 – from students in India, Pakistan, Spain and of class societies for which it performs “long Deck and III/1 and III/2 – Engineering). Portugal following the university’s presence at approvals” for radio and voyage data records. As with all University of Gibraltar’s in-country educational fairs “Business has been steady in 2020 but now academic programmes, both undergraduate On the technical (non-academic) side, early getting back to normal,” says John M King, maritime degrees have been reviewed and 2021 brings the launch of basic STCW and World Service Manager with Sandvik. TO validated by an external panel of senior STCW refresher academics against rigorous UK quality courses. standards. In the Speaking during the validation process, the medium term, SANDVIK University’s Academic Quality and Standards the Gibraltar MARINE ELECTRONICS Committee Member Professor Jon Scott said, Maritime Gibraltar - Tel: +350 200 79003 “The overall structure of the programmes is Academy hopes very well thought-through and the relevance to offer a full Spain - Tel: +34 956 099101 to professional development is clearly laid range of maritime out and underpins the overall frameworks. training courses As such, the extensive focus on practical as the Maritime experience will significantly improve the Industry recovers students’ professional development and from the current employment prospects.” crisis and training Programme Coordinator Aaron Lopez says demands start to the programmes get students ready for industry increase. faster than many other courses. These courses “The accelerated programmes will allow would include our students to get a BSC (Hons) degree in specialist Yacht- Maritime Science with sea time leading to an related training Officer of the Watch (OOW) Certificate of and Offshore Competency in approximately three years,” he Petroleum says. Industry Training A key feature of the programmes is their Organization focus on employability, he believes, from (OPITO) courses. combining academic and the technical The University requirements. “The broad skill set developed of Gibraltar during the programmes offers opportunities for has also been graduates to work shore side (BSc) or at sea approved as an (OOW Certification),” he says. Examination The CEO and Captain of the Port with Centre for MCA Gibraltar Port Authority (GPA), Manuel Safety (Deck) Sales - Installations - Service Tirado, said, “we are very pleased about the and Professional email: [email protected] Maritime Academy. Gibraltar is a maritime Exams centre of excellence and it was one of the key Engineering, web: www.sandvikservice.com

November - December 2020 l TANKEROperator 7 ECO Stena, Latsco and UECC on practicality of decarbonisation Senior representatives of Latsco, Stena Teknik and UECC shared perspectives on the practicality of decarbonising shipping, at a webinar organised by DNV GL to operate fully on battery power, requiring an chemical tanker 35,000 dwt. There were arry Robertsson, technical director estimated 50 MWh of stored energy for the 3 difficulties to find a terminal that could handle of Stena Teknik, Stena’s internal hours and 25-minute crossing from Gothenburg that size of vessel. Today 35,000 dwt is quite technical advisory company, said he (Sweden) to Frederikshavn (Denmark). common.” was optimistic about the shipping “We’re looked at fully electric ropax for routes Latsco Marine Management Hindustry reaching IMO’s 2050 greenhouse gas up to 50 nautical miles. [But] we haven’t found Kostas Vlachos, COO, Latsco Marine target. an economically feasible solution to run the ship Management, said that decarbonising shipping This is on the basis that with each on electricity through the Archipelago.” is “a very big challenge”, when currently only a newbuilding, the company generally achieves a For longer routes, if the company decides to tiny number of ships have dual fuel engines. 30 per cent improvement, in comparison with the go for zero carbon propulsion, “we think we’ll Latsco Marine Management operates 29 ships being replaced. go for fuel cells,” he said. vessels - 18 product tankers and 11 gas carriers. Stena’s fleet totals 149, owned, chartered and “We have been running the world’s biggest “The expectations are that only 20-40 per cent managed vessels and drilling rigs, including new ROPAX on methanol without any problems. of the world shipping will be fitted with a dual buildings. This includes 81 tankers, 3 shuttle We think methanol is an excellent fuel, with the fuel engine by 2050.” tankers, 3 LNG tankers, 2 drilling rigs, 4 drill same characteristics as LNG, except a higher With the switch from diesel to LNG power ships, 34 ropax vessels and 10 roro vessels. energy consumption when we produce it. It is meaning a 20 per cent drop in CO2 emissions, “Some of the ships we are ordering today will easier to store and handle.” this would mean a 4 to 8 per cent reduction, not be around in 2050, possibly running on bio or “Methanol can be produced in many ways. So a 50 per cent reduction. [other] fossil free fuel,” he said. definitely a pathway to non-fossil shipping.” “This, along with all the other measures “There’s a lot of technology needed for 2050 “We’re running LNG carriers on LNG with that already have to be taken - operation and reduction targets that is already in place.” good experience. But we haven’t been able to technological measures - make me not to be “We will see other types of arrangements. find any suitable Stena routes to run on LNG. optimistic that by 2050 the aspirations of IMO Propulsion will be most probable by electric The investment in existing ships is too high and will be fulfilled,” he said. motors, powered by batteries, fuel cells or logistics [LNG supplies] is not fully developed in “The owners need to invest and therefore ordinary gensets running on some kind of fossil our areas.” they are looking to the customers (charterers), free fuel.” Biofuels “have been successful, no problem at the regulators, the financial people, to see if Although he noted “the most efficient all,” he said. The company reported a successful they will support this common action,” he decarbonisation is fuel which is not consumed.” trial with biofuel replacing ordinary fuels on said. “Otherwise these aspirations will not be “There will be developments in ship design 50,000 dwt tanker Stena Immortal, running for fulfilled.” and trading patterns which show that speed will 10 days in Spring 2020. In conclusion, what is needed, other than be reduced. That will reduce consumption from “We think biofuel might be the lowest regulations, is “financiers to get the risk appetite ships even more.” hanging fruit to decarbonise our existing fleet,” to fund, we need clarity on which fuels will be he said. “The main challenge is availability, used in future, we need regulations on targets standardisation and price.” and a timeline as soon as possible.” Improving ships In terms of IMO’s 2050 rules, the overall Technology “We are working continuously to make sure ambitions are well known. “Now we need to “For all our new buildings built after 2012, we ships are running as efficient as possible,” he know how it will be measured - by ship, country, have applied all the technological improvements said. by company or some other way,” he said. that exist in the market. Main engine Stena has already tried methanol fuel and “This is not only a technical issue. improvements, auxiliary system improvements, biofuels, and batteries. “We are evaluating [Commercially] we are not able to cover this waste heat recovery, air lubrication [of hulls], almost everything you can imagine, trying to turn huge transition by ourselves.” hull coating, shaft generators. With all of them we have succeeded to reduce 18-20 per cent every stone,” he said. “We are operating in a world that is changing CO2.” Its vessel Stena Jutlandica has a 1MWh battery dramatically. But we have always been operating on board, enough to run bow thrusters and to in such a world. In the 1980s, shipping looked The company’s project to use air lubrication manoeuvre in port. “The battery pack has worked very different to today. under the hulls is working together with a shipyard, class society and oil major. excellent since day 1,” he said. “I have a personal example - in the beginning The ultimate goal is for the Stena Jutlandica of the 1980s my father was master of a newbuild “We are in the process and really we have

November - December 2020 l TANKEROperator 8 ECO

“We need the support of charterers. Not from a changes to CAPEX.” financial point of view, but from understanding “The way we need to look at it - the vessels we have to change something in commercial which we’re building today are likely to be operations, to use part of the cargo as the fuel. operating in 2050. So the ships we build today These are matters we believe will be resolved.” need to be ideally [capable of] operating carbon Mr Vlachos said that he does not believe that neutrally. we will see a replacement for the combustion engine before 2050 for ships. “Technologies “We also need to invest in fuels”. are not yet proven. As everybody knows, for When asked what he thought the biggest barriers a new technology, we need 10 years for the to low carbon shipping were, Mr Gent said cost. breakthrough, another 20 years for testing.” “Decarbonisation won’t be cheap. It certainly “I am not pessimistic but looking at the data hasn’t been so far for us.” we have currently on the table, we need a faster It would help if customers could get involved, growth in order to see this replacement in 2050.” as well as port authorities, who would be needed There could also be fire concerns related to to get supplies of new fuels encouraged in their batteries, he said. ports. ETS It would be helpful to see a shift in end user Mr Vlachos is not an enthusiast of the European attitudes towards decarbonisation, so they are Union planning to bring shipping into its willing to spend money on it. “It is one of the Emission Trading Scheme. things consumers are willing to talk about. But they don’t want to support it in a meaningful “We have seen in this major matter, unilateral way,” he said. decisions by the EU. This unilateral solution is a big obstacle to the pathway for decarbonisation, Mr Gent thinks it is unlikely we’ll see an end this is my opinion.” to use of internal combustion engines by 2050. “The ICE has worked well. On a much smaller “I don’t go to the discussion why the decisions scale - below 2000 or 3000 dwt, maybe a bit of a are taken, but I go to the result. It is not only different question.” the different timelines, the most important is the different standards.” Also, “we need to be careful not to close doors too early for alternative fuels,” he said. “We’ve UECC proven the engines can handle all kinds of fuel Daniel Gent, energy and sustainability manager, and do so in a carbon neutral way.” with United European Car Carriers, based in On the introduction of shipping to the EU’s Oslo, said that the IMO’s targets “are ambitious Emission Trading Scheme, Mr Gent said Screenshot from the webinar. From top to bottom: but not impossible”. “localism isn’t a new thing in our industry. Tomas Llewelyn Barrett, Global Head of Corporate UECC has 16 medium sized pure car and We’ve had emission control areas for over Communications, DNV GL - Maritime; Kostas Vlachos, COO, Latsco Marine Management; Daniel truck carriers (PCTC) with loading capacity a decade. We’ve seen other [non global] Gent, energy and sustainability manager, ranging from 1,060 to 4,750 car equivalent regulations come in, discharge of water from United European Car Carriers; Harry Robertsson, units, including two dual fuel LNG vessels. It vessels operating in scrubbers, Ballast discharge. technical director, Stena Teknik is building 2 more LNG “battery hybrid” LNG “But of course, it can make a shipowner made good progress to reduce the capital vessels. nervous, to invest in complying with one cost,” he said. “The cost is $12m more than a “We’re starting to see gains in carbon regulation when another regulation can come conventional vessel. We are trying to reduce this intensity, heading towards the 2030 target with into force.” TO barrier.” some of our vessels,” he said. The company has a project to explore the use Having targets can be helpful. “Shipping is a You can watch the video of the talk and of LPG as fuel, for the LPG vessels. very traditional kind of market, it has something download slides at “We have found a lot of obstacles in that that has worked well for a long time - and hasn’t https://www.dnvgl.com/maritime/webinars- decision,” he said. “Classification societies are wanted to move without a push.” and-videos/on-demand-webinars/access/ not ready [with a rules system for LPG fuel].” Shipping has made some big steps already. afoc2020-recordings-and-slide-decks.html “What’s disappointing to me, the flag state or “What we put on our vessels now would be class society is not proactive in welcoming the unthinkable a few years ago, in particular Short link http://bit.ly/DNVGLOct2020 new fuel and seeing through its implementation,” biofuels. We found we could do it without great he said. “That’s a barrier we’ve encountered.” Session 8

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November - December 2020 l TANKEROperator 9 ECO DNV GL – how maritime will make energy transition DNV GL has done sophisticated modelling about how the maritime industry may go through the energy transition, including evaluating 30 different scenarios not really help to deal with global warming.” going on. Class societies are a natural bridging NV GL has been putting together We are at a stage where shipping must between industry and academia.” forecasts / pathways which reach prepare for and start on a decarbonisation IMO’s emissions of 50 per cent pathway,” he said. “This decade is going to be Two main pathways GHG reduction by 2050. instrumental in getting that kicked off. We need Tore Longva, maritime principal consultant DRegulations and other incentives are already a massive scale up of new technologies and regulatory affairs at DNV GL, and the lead starting to impact shipping, said Knut Ørbeck- better fuel alternatives.” author of the study, sees two main pathway Nilssen, CEO of DNV GL’s maritime division. options for the energy transition. There are sceptics about LNG fuel, saying It is increasing company’s costs, and also that since if it cuts emissions by 20 per cent, it The first pathway is the set out by IMO for impacting the asset values and earning capacity does not reach anybody’s target, whether 100 a 50 per cent reduction by 2050. The second of vessels, if less green vessels become less per cent or 50 per cent decarbonisation. is a more ambitious pathway, to decarbonise attractive. shipping by 2040, which takes onboard shipping “I think it’s important for every ship and yard being included in the EU Emissions Trading Over the long term, DNV GL sees that and engine manufacturer to move along – it is Scheme from 2022, and having its CO2 targets ammonia and methanol are very promising important that we start,” he said. “We start with increased from 2030, along with pressure from fuels, both being zero or low carbon (NH4 / something which is proven, familiar, gives 20 other areas to decarbonise. CH30H). per cent reduction in CO2 emissions. Over the medium term, LNG and Marine Gas For example, if we follow the IMO’s pathway, and see low renewable energy prices, Oil (MGO) made using biofuel or electrolysis Localism this would make “electro fuels” favourable, and from renewable electricity can be used as Another obstacle is “localism,” he said, such as probably ammonia, which is easier to store than transitional fuels, as low carbon fuels which can the European Union bringing shipping into its hydrogen. work with our current vessels and infrastructure. Emission Trading Scheme. Under this pathway, there would be a lot “Installing a duel fuel (LNG / liquids) engine “Shipping requires international regulations. of conventional engines through the 2020s, is a robust choice for today enabling future We see local and regional law makers are “quite a lot” with scrubbers, and steady uptake flexibility,” he said. increasingly demonstrating impatience and of LNG. During 2030, the use of LNG would The industry is currently going through a distrust with the IMO’s progress.” increase, and then more ammonia being used on period of big innovation and introduction of “There is a danger that there will be an newbuilds. Some LNG vessels would convert to digitalisation, at the same time as the push to increasing patchwork of localised regulations - electro methane. The biggest transition would decarbonise. on CO2, biofouling, scrubber water discharge.” take place in 2040, with quite a big move of “We are seeing the maritime community “The European parliament is debating and engines to ammonia. Engines which can only at large really challenging the old ways of supporting to bring shipping into the emission use diesel might switch to electro diesel. working,” he said. “We have to grasp this grand trading system.” If we follow the EU’s preferred pathway, challenge.” Collaboration to decarbonise shipping by 2040, and imagine Don’t hate gas Moving forward would need more collaboration. we low prices for sustainable biomass. In this One of the biggest risks to maritime “This is at the very key of finding the solution scenario the picture would look similar in the decarbonisation are people who think we should - how can a very fragmented industry like 2020a, but in the 2030s bio-methanol would be only change once we have the perfect solution, maritime come together in bigger entities with the fuel of choice. rather than adopt solutions which are better but more power to drive new solutions,” said Mr “It is relatively easy to make – has a fairly not perfect, like gas power, Mr Ørbeck-Nilssen Ørbeck-Nilssen good energy density,” he says. Engines could said. “Perfect is the enemy of the good.” “There’s a natural collaboration space be retrofitted to run on bio-methanol. Most “Decarbonisation in shipping is a voyage,” between manufacturers, yards, owners. But shipping would be decarbonised by 2040.” he said. “Navigating to a carbon neutral future also the owners of the goods to be transported These are just 2 out of 30 different scenarios really starts with gas. Gas is the best fuel choice (charterers), banks, financiers, and not least also DNV GL evaluated. for the next 1 or 2 vessel generations.” some of the tech companies - that lie on the boundaries of the maritime industry.” “We must also relentlessly explore other Uncertainty solutions, but waiting for the perfect choice will “In academia there’s a lot of interesting work But there is still a great deal of uncertainty.

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Mr Longva groups the uncertainties into 3 16 different fuels were looked at, including neutral fuel.” “dimensions”. Regulatory measures such as various biofuels, various electro fuels (from Carbon capture and storage also has a lot carbon pricing, and operational / technical renewable electricity), The fuels can be made of uncertainty – of how much of the CO2 gets requirements, such as fuel / energy prices. with different production methods and different captured and stored. prices. “Fuel and energy prices are very critical to But all of these uncertainties are unlikely understand in order to predict where we are Some methods are very mature – and costs of to impact the final conclusion, that the best going,” he said. equipment and fuels are well known. long term zero carbon fuels are ammonia or There are three possible zero carbon energy Some are more expensive, like hydrogen and methanol, he said. sources – sustainable biomass, renewable LNG, needing heavier and larger tanks. electricity, and fossil fuels with carbon capture “Ammonia is a little bit more uncertain – but Options for a Panamax and storage. we have a good idea how much that costs,” he DNV GL looked at the options for a Panamax A further dimension is the demand for said. new build, if it was built today, and “stress seaborne trade. The study had a high growth The study looked at the potential for going tested” them. and a low growth scenario. from a LNG engine to ammonia, and from a There are 3 engine / propulsion options It wanted to understand which drivers are diesel engine to a methanol engine. available today – the conventional diesel most important on what happens in the future, “Ammonia and methanol are the most engine, a scrubber with heavy fuel oil, and a their sensitivity, and how they impact on the promising fuels – depending on primary dual fuel LNG engine. choice of technology and fuel. availability of energy sources,” Mr Longva said. “All these come with different possibilities To keep the analysis simpler, it just looked “If there’s enough sustainable and reasonably for the future, for what fuel you can use as drop at the maritime specific aspect, or “tank to priced biomass, bio methanol is the fuel. If in, and cost of retrofitting,” he said. wake”. So emissions made in extracting or you have cheap electricity, renewable, electro Over the 20 year period, the researchers producing the fuels, such as to run pumps ammonia is the best fuel.” found that a dual fuel engine would be the most and compressors, refining equipment, or from Another plausible zero carbon fuel could be robust choice. methane leaked along the way, is not included. “blue ammonia”, made from methane using “In most of these scenarios LNG is cheaper But “tank to wake” collects 90 per cent of the carbon capture. than diesel – so it is cost effective,” he said. total, he said. Ammonia is likely to be preferred to LNG would have a 20-25 per cent bonus hydrogen onboard a ship, because it is easier in reduced greenhouse gas emissions, if Current picture to handle. It boils at -33 degrees C at a 1 the regulations focus (as expected) on tank According to data from DNV GL’s Alternative atmosphere pressure, so the liquid must be to wake CO2 emissions (so not including Fuel Insight Platform, only 0.39 per cent of the stored under pressure or at low temperature. emissions from methane if its leaked during the current shipping fleet is using alternative fuels Bio and electro methane, and electro- production process). – breaking down to batteries 0.22, LNG, 0.16, methane, may have some permanent If widespread LNG availability means you no and methanol, 0.01%. applications in niches which cannot use longer need to carry liquid fuel, the liquid fuel But 9.7 per cent of newbuilds are – including ammonia or methanol, but “mostly they have tanks can be re-purposed to carry cargo. 3.99% battery powered, 4.52% LNG, 0.67% very important roles as a transitional fuel,” he LPG, 0.47% methanol, 0.06% hydrogen, 0.02% said. The business case ammonia. Alternative fuels can impact the ships’ The most important work for this decade is to Many of these are of course smaller vessels. earning potential if the ship needs more cargo “enable the business case for shipowners to use “A lot of the innovation starts on smaller space to store the fuels, it impacts your range carbon neutral fuels,” he said. vessels first,” he says. Smaller vessels can stick it will impact where you can go for fuel A business case can’t be made just with to areas where there are reliable sources of availability. “It is very important to manage research and piloting – because currently the whatever fuel they are testing. these risks,” he says. zero carbon fuels are much more expensive – Fuel assumptions there needs to be some regulatory method to Fuel systems The study assumed that biofuels, electro fuels make them cheaper. The study explored fuel flexibility further, the and fossil fuels with ccs are completely carbon There could be schemes to make it easier for idea that the transition will go easier if ships neutral. This may not be the case in reality, “green” ships to obtain financing, and ways for can switch from one fuel to another without for example depending on what the biofuel multiple companies to share the risks and costs changing any equipment. replaces, or how much CO2 is captured in the of testing out new engines. 10 different fuel “systems” were studied, CCS. Public procurement could be very helpful in including: Although methanol contains carbon, it can driving new technologies in very early phases, • An internal combustion engine on low sulphur be made using CO2 which would otherwise be as we saw in Norway with the government fuel oil or diesel; a emitted. supporting electric and hydrogen ferries. • A ICE running on conventional fuel with a For a biofuel to be ‘sustainable’, it needs For charterers to have green procurement scrubber, to take CO2 out of the atmosphere when it is policies would be very helpful, he said. growing – but you also need to consider what • An ICE running on conventional fuel, Regulations such as carbon pricing, might otherwise have been happening with the performance requirements and technical / • A duel fuel LNG + fuel oil internal land. operational requirements, such as mandatary combustion engine But renewable electricity is not completely use of carbon neutral fuels, could incentivise • A duel fuel ammonia + fuel oil internal zero carbon either, since some carbon is emitted uptake. combustion engine making the wind turbines. “For shipowners – managing all this risk is • Fuel cells running on ammonia and hydrogen “So it is a gradual reduction to a fully carbon also critical,” he said. TO

November - December 2020 l TANKEROperator 11 ECO “All tanker owners considering LNG for newbuilding” – DNV GL Catrine Vetereng, global director for tankers with DNV GL, said, “all tanker owners considering new building today are considering LNG fuel,” in a talk about how the tanker market is adapting to future expectations “ The decision for tanker operators financial institutions signing up to the ll tanker owners considering coming up about how to meet IMO’s 2050 “Poseidon Principles”. new building today are requirements, and other requirements considering LNG fuel,” Ms Vetereng showed where today’s ships related to greenhouse gas, is the “the most said Catrine Vetereng, vice sit in terms of the “Poseidon Principals” complicated and biggest decision,” she said. Apresident and global segment director trajectory. This is consistent with the tankers, DNV GL, in a DNV GL webinar DNV GL is curious to see what the more IMO’s ambition for GHG emissions from detailed requirements from IMO will look international shipping to peak as soon as in October about how the tanker industry is like. possible and to reduce the total annual adapting to future expectations. GHG emissions by at least 50% by 2050 “I believe the tanker segment has been IMO’s Intersessional Working Group compared to 2008, but set individually for through a tremendous change in 30 years, on Reduction of GHG Emissions from different ship types. from having a bad reputation of rust Ships plans to submit a draft resolution buckets and oil spills. I can now say the to the Marine Environmental Protection She mentioned the Sea Cargo Charter, tanker segment is one of the best operated Committee (MEPC) session 75, with which is a group of charterers making a segments,” she said. further proposals. MEPC 75 was previously commitment to track carbon emissions from scheduled for 30 March to 3 April 2020, but vessels they charter, and show how the The tanker sector has had a busy time in now planned to happen remotely on Nov emission reduction trajectory aligns with the past few years from an environmental 16-20, 2020. IMO’s ambitions. perspective, thinking about ballast water and scrubbers, but the biggest decisions are There have been proposals for an “Energy Ms Vestereng was asked which might yet to come, she said. Efficiency Existing Ship Index” (EEXI), have the strongest force for decarbonisation, setting energy efficiency requirements for out of EU Emission Trading Scheme, IMO Ballast water installations are still existing ships, which may be mandatory regulation, or the Sea Cargo Charter. underway. “It will take a couple of years power limitation on ships. before a majority will be installed,” she “I would like to say IMO, but what we said. Ms Vetereng showed data of where the see now - with Sea Cargo Charter - it seems EEXI level is proposed to sit from the they are tightening-in a bit quicker than DNV GL calculates that 20 per cent of beginning of 2023, and where the current IMO. EU is kind of pushing as well, I don’t tankers have scrubbers now installed, which VLCC fleet is. know, I think it’s quite a totality,” she said. rises to 32 per cent of VLCCs and 34 per cent of handy size ships. “There are a lot of owners that [would] need to do something with their ship in Ms Vestereng was asked if she thinks Tanker designs order to comply with new regulations,” she more scrubbers will be ordered for ships. Ms Vetereng presented what has been seen said. “The most likely remedy is energy so far in terms of new tanker designs. She noted that the fuel costs (growing power limitation or shaft power limitation.” differential in price with high sulphur and We have seen shuttle tankers from AET Another possibility is tightening the low sulphur fuels) indicate that there may and Altera, which use LNG as a primary requirements for SEEMPs (Ship Energy be a second wave of scrubber installations. fuel. They can use evaporates from the Efficiency Management Plans), which all But it also does not sound like the greenest cargo (volatile organic compounds) and mix ships are required to have, measuring the option. A scrubber also means increased it with the LNG and use it for propulsion. fuel efficiency of a ship in operation and fuel consumption, she said. The vessels have batteries to provide gauging the effect of any changes, such as supplementary power. “Personally I have a hard time seeing we through improved voyage planning, more will have a second wave of scrubbers for Together with an energy efficient frequent propeller cleaning, waste heat gas-electric propulsion system, these tankers, particularly when we consider the recovery. new requirements from charterers and other vessels have been described as “the most DNV GL also sees a number of other stakeholders. I feel all the actors will shift environmentally friendly shuttle tankers actors “entering the scene” and driving not necessarily towards scrubbers,” she said. ever built.” a tightening up of requirements, such as “They are already 2030 proof,” she said.

November - December 2020 l TANKEROperator 12 ECO

“The implementation of LNG fuelled fuel), you need to work out how big a store environmentally friendly vessels has been tankers is increasing day by day,” she of LNG you will need onboard, and how going a bit slow, but “what we see now, the said. “Last year, we have seen a lot of new you plan to refuel (by ship to ship transfer pace is increasing.” orders.” or in port). “So we are looking forward to having a There are currently 12 MR tankers Different fuel options and energy lot of discussions with tanker owners on operating on methanol fuel, and 10 more efficiency measures have different costs, how to build and operate a future proof under order. Although whether they comply so this all leads to a different result for vessel.” TO with the IMO trajectory depends on how CAPEX and OPEX. the methanol is produced, she said. It is You also need to consider what you will You can watch the video of the talk and possible to make completely decarbonised do if SEEMP turns stricter. download slides at methanol (if the carbon in the methanol is “In our calculation LNG fuel turns out to taken from a source which would otherwise be a very good intermediate fuel,” she said. https://www.dnvgl.com/maritime/ emit it to the atmosphere). webinars-and-videos/on-demand- “You can draw your environmental “The fuels are going to be a lot more webinars/access/afoc2020-recordings- performance and your trajectory. You can expensive in the future,” she said. and-slide-decks.html plot out your options, and consider how Air lubrication, under a tanker’s hull, “is long you are going to keep your vessels and Short link http://bit.ly/DNVGLOct2020 starting to become a mature technology,” plan out how to move forward with the new she said. fuel when that eventually arrives.” Session 7 Another area with growing interest is In summary, the move to more wind assisted propulsion. Using batteries onboard for certain propulsion purposes, such as dynamic # positioning, “is a pretty wise option if 03 IN A SERIES you have a small chemical tanker, or on shuttle tankers”. This approach is named “hybridisation,” because it uses batteries together with an engine, like on a “hybrid” A Virtually Impermeable car. Surface to Handle One further option tanker operators might consider is having a different hull shape, Aggressive Cargoes “kind of V-shaped”, which reduces the amount of ballast required – the vessel is When talking about cargo tank linings that offer fast desorption cycles more stable when unladen. “The tanker industry is too conservative after carriage, it would be better NOT absorb cargoes at all. The high to consider such a concept,” she said. “But crosslinking polymer ability of MarineLINE® creates a virtually impermeable we see more V-shaped hulls for smaller surface that withstands absorbing aggressive cargoes and Methanol. vessels.” “Waste heat recovery is also a technology Higher Crosslinking Leads to a More Dense Structure that’s important.” Comparison of Microscopic Coating Surface Images from Tubitak Research, Ankara, Turkey

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November - December 2020 l TANKEROperator 13 ECO How Hafnia manages vessel performance Hafnia Tankers’ vessel performance department manages the performance of around 200 vessels, with just 3 full time employees, 2 student assistants, and some great software. Head of performance Michael Rasmussen explained how they do it

afnia Tankers describes itself as fuel, which has a “relatively low price”. But Hafnia takes the “world’s leading product tanker within the ECA it consumes gas oil (which has data from the company”, with 63 MR vessels very low sulphur levels) and is more expensive. weather routing and 26 handy sized vessels. It If there are no different options about what system into its Halso manages a pool of a further 110 vessels, route to take, then just having information about performance including managing the performance. the weather is very helpful, he said, so you don’t monitoring Michael Rasmussen, head of performance send the ship into a storm. software. with Hafnia, explained how the company The contractual agreement also needs to be Currently, manages performance of its vessels, in a webinar taken into account. A charter party will say what performance organised by Tanker Operator’s sister company speed the vessel is expected to take. “On a laden data is taken Digital Ship. passage it is seldom lower than 12.5 knots. It from a report The company has meat on its commitments to could be 13, 13.5 knots.” Michael Rasmussen, head of sent manually decarbonise, with loan agreements with a bank “It is no use if we think we can optimise here performance with Hafnia from the which are linked to sustainability, including KPIs and there if the contract says you have to go 30 ships at noon every day. But in future it will be on how much its emissions must reduce. knots and you have to be at a certain place in a automated and sent continuously. “There’s many “If we are fulfilling these KPIs everything is certain time,” he said. systems out there who can do it for you,” he said. good. If we are not reducing the CO2 emissions Hafnia seeks to encourage charterers to agree There is plenty of data which is possible to according to our KPIs we get a penalty in terms to a certain speed range, rather requiring a collect, but also it is not necessarily valuable of a high interest rate. If we do better there’s a specific speed, he said. to have more. But often, data is not of as good little bonus with a lower interest rate,” he said. Once the route and speed is chosen, clear quality as the company would like. To access funding for vessels from nearly any instructions need to be given to captains, and One issue is having separate “speed over fund or bank in Denmark today, you are likely to it is important that vessels also follow the ground” and “speed through water” data. The have to produce “green accounts” showing what instructions, he said. difference is that “speed through water” takes the Co2 emissions would be, he said. into account any current. So if a ship is going The company is only 10 years old – and Underway 10 knots “speed over ground” moving directly wanted to run its business in a different way Once vessels are underway, their performance against a current going 10 knots, the “speed from the start. “We wanted to make a modern and the changing weather can be monitored. through water” is 20 knots. company,” he said. “We did not have the 130 With automated weather routing, whenever The “speed over ground” is important to the year history which many of the classical Danish the computer discovers a change in the weather charterers, who can use it to calculate how long it shipping companies have. We were blessed with forecast for the ship, there can be new weather would take to get from one point to another. But the blank canvas.” routing advice generated and provided to the if you are analysing the performance of the ship, crew. This can happen any time around the “It is nice to know what the current is,” he said. Weather routing clock. Calculating the vessel’s speed can involve The foundation of the performance management Hafnia’s operators are monitoring the tracks “fumbling about in the dark,” since speed logs system is “basically the weather routing,” he of vessels, and the tracks of storms and other are “inaccurate to quite a large degree”. It can said. “We use that as the first step of planning weather. “You can take proper action and make be done by taking the fuel consumption and the route.” changes to the route as we go along,” he said. working out what speed would have caused it. It used to take “a couple of hours” to get a Hafnia will typically set a maximum levels of routing taking weather into consideration, now it CO2 which can be emitted during any voyage Performance monitoring is available instantly, he said. – and then ask the vessel to reduce the speed or All of this data is analysed to understand The most important function of the routing take other action if the CO2 is likely to go above performance. The company is doing more and system is of course to avoid inclement weather. this. more data analytics. “We started a journey a The next important factors are choosing the best The captain is ultimately responsible for the couple of years ago, and we are still learning,” speed and reducing fuel consumption. choice of route, so it is called ‘advice’ rather he said. There can be choices of whether a route goes than ‘orders’. Managing the data is enormously complex. into or outside an emission control area (ECA). “We get a lot of a data which we can download Outside the ECA the ship consumes low sulphur Gathering data and analyse. We need systems to manage the

November - December 2020 l TANKEROperator 14 ECO

data for us.” investor relations department. It is where the bigger chunk of Hafnia’s CO2 emissions quota. Hafnia uses software from Coach Solutions. company calculates its overall CO2 emissions, It may mean that at the end of the year, vessels “We had a great co-operation with Coach,” he and builds up a business case for its customers are sailing at just 8 knots to keep CO2 emissions says. “Whenever we say we would like to see x y and lenders. down. z, we talk to Coach, and we get it done.” “Performance is not something done in a dark “Mother nature cannot send a bill to us [for the All the owners, and their ship management room, it is coming up in the sunshine,” he said. CO2 emissions],” he said. companies if they have them, can access the data So it is important that Hafnia’s customers on Coach Solutions, so it is transparent. They can Customers recognise the need to keep CO2 emissions down, do their own analysis if they want. When the oil price is changing, it may suit oil not just look at the cost of fuel. It is important that companies with vessels in traders if a vessel arrives earlier, so they issue the pool feel that they are treated equally, and a ‘speed up’ order to the shipping company. they can use the software to check this if they Under the terms of the contract, that requires the You can see the talk on YouTube at want to. vessel’s speed to be increased to 16 knots. https://youtu.be/ct9v-mQgYqE The performance monitoring work involves More fuel will be used, which the trader will the technical department, commercial pay for. But this means that the CO2 emissions department, even the accounts department and the vessels emit might be tripled, and so use up a TO Yara – scrubbers can mean lower CO2 Scrubbers + heavy fuel oil can mean a shipping company makes lower CO2 emissions than using low sulphur fuel oil, says Kai Låtun from Yara

perating with scrubbers + heavy fuel Installation and commissioning can take 2 study modelling a big basin outside the Japanese oil can mean a shipping company weeks, and the certification test against the coast. They both showed discharge of wash makes lower CO2 emissions than MARPOL requirements takes a day. water from scrubbers is not detrimental to the using low sulphur fuel oil, says Kai “Shipyards are becoming quite adapt in marine environment.” OLåtun , Director Sales and Public Affairs, Yara producing installations of scrubber systems,” “It is facts and science which will save the Marine Technologies. he said. “They are clever, they tend to try to do environment.” The reason is a large amount of fuel is used by things based on what they learned and make it CE Delft also did a study comparing vessels the refinery which distils the oil to make a lower simpler.” using heavy fuel oil + scrubber with low sulphur sulphur product. Shipping companies will often have a number fuels, to calculate the minimum CO2 emissions The company has installed over 400 scrubbers of projects happening at the same time in dry “well to wake”. on ships so far, over the past 10 years, of which dock, such as also installing at ballast water “This study proves HFO with scrubbers 80 per cent are retrofits, the rest on newbuilds. system. There can be complex discussions about beats compliant fuels in the race to reduce CO2 The retrofits are “mostly being done in China” priorities. emissions all the time,” he said. – the company makes much use of the Yiu Lian “The plan you establish at the start is crucial,” The key figure for shipowners is the difference shipyard near Hong Kong. he said. in price between low sulphur fuel oil and heavy The company makes scrubbers in China for One source of problems is when there is a fuel oil, and whether this justifies the investment. these installations. It uses material from Europe crew change, and the new crew are not taught This differential was “crazy around January” and US, because it needs special corrosion how to operate the equipment. People think there – just after implementation of the 2020 rules – at resistant nickel alloy materials, which are hard to is a problem with the scrubber system, but it is $350 / tonne. source in China. actually more to do with training. But then it oscillated around $80 a tonne. But There are 3 stages to the work. Engineering You need to make sure all discharge from this could be partly due to a drop in demand for and delivering kit to yards; installation the ship has an acidity level higher than pH 6. low sulphur fuels for other transport uses due to and commissioning; and crew training and Yara can model this mathematically, so it can be COVID. “I’m pretty certain that this price gap certification testing. proved to class. will increase,” he said. A typical installation takes 2 weeks of dry Mr Låtun discounts the idea that discharge During the Covid period, very low sulphur dock, he said, with the whole project taking from scrubbers can be harmful to the fuel oil became cheaper than crude oil in some 24-25 weeks (reduced to 22 weeks for an open environment. “There is no scientific evidence places. loop system). to this statement - it is more a ‘better safe than “The demand for HFO is picking up along There are three service companies involved – sorry approach’,” he said. major shipping lanes,” he said. the designer, installer and system supplier (who “There’s comprehensive studies from CE “We will see a very profitable business case also does commissioning and certification). Delft. Also Japanese industry that did a very big for scrubbers.” TO

November - December 2020 l TANKEROperator 15 OPERATIONS Developments with ballast water Leasing option from Optimarin, computer training from DESMI, new fish species in Estonia, CTI’s Singapore test facility, Techcross order on heavy lift vessels ptimarin of offering a leasing option with sections on process and instrumentation, with the D2 standard. for ballast water systems, enabling hardware and software, troubleshooting and The certification is “ Approval of Service owners to meet maintenance, with detailed diagrams and Supplier (AoSS)” certification from DNV GL. their requirements without big pictures, “what is this and why is it relevant for It is approved to test all organism size classes OCAPEX outlays. you”. It includes process and instrumentation specified in the standard along with bacteria. The company has partnered with a UK based diagrams. A hardware section takes users to The certification process involved DNV GL finance company, to develop an offering where the smallest components. A software section reviewing CTI-Maritec’s standard operating payments are made monthly, no deposit is explains how the human-machine interface is procedures, including its sampling methodology, required, and all servicing and spare parts are used to operate the system. analysis, and quality control. included. The interest rates are “in line with There is also a simulator section, giving a 3D Onboard indicative tests are a minimum competitive bank financing”, the company says. visualisation, which people can click on to learn requirement, but if any discharge sample exceeds The firm, which currently has around 600 how to operate the system, for example turning the regulatory levels, samples must be analysed units installed, 40% of which are retrofits, has valves. There are chapters on troubleshooting by accredited laboratories. partnered with a UK-based finance company and maintenance. There is a test at the end. The organisation has several test labs in China, to offer customers the chance to improve their There is also a mobile App available where many ballast water systems are being cash flow by splitting payments into small, on Android, including a manual, and a 3D installed, and is planning to open further facilities manageable monthly amounts. No payment or simulation / visualisation. “If you don’t have across Asia and the Middle East . deposit is required up front and all servicing an actual physical system yet, but you know “There are already about 12,000 systems and spare parts can be included in a simple, you’re going to, you can do the initial training installed, with the majority not having been comprehensive package. Interest rates, Andersen in a digital 3D version with your smartphone,” compliance tested,” said John Ren Di, VP says, are in line with competitive bank financing, he says. Business Development, CTI-Maritec. without the complex requirements and demands. The company advises ballast testing at least “There are many, many excellent shipping Estonia twice a year for vessels that may be trading in firms that may struggle to satisfy banking Estonia has one new fish species probably US waters. covenants in an investment atmosphere that is brought in by ballast water, according to a local increasingly risk averse,” says Tore Andersen, TV program Aktuaalne kaamera, reporting in Techcross EVP sales and marketing with Optimarin. October 2020. Techcross of Busan, South Korea, reported in “We have the partners and belief to help This is the Western tubenose goby, which was September 2020 that it had a contract to deliver owners get the market proven equipment caught by fishermen during a fish monitoring a ballast water system to Europe’s largest heavy they require. As a company we’re focused on process. It has an average length of 10 cm. lift vessel, providing two sets of its ECS 600B simplifying BWT for our customers.” The fish is similar to local “round gobies” electrochemical system. Optimarin has also produced an attractive 5 except that it has a longer nostril tube, which This vessel is able to carry 110,000 tons min video explaining the importance of ballast is where the name came from, according to the of cargo. It is designed to move oil and gas water systems to the public. https://optimarin. report. facilities, but has also been used as an offshore com/optimarin-global-thought-leaders/ The fish is native to Black Sea and Aegean dry dock facility for other ships. Sea, but is thought to be have been brought to The Techcross system uses a standard DESMI the Baltic Sea in ship ballast water. “T-strainer” to remove large fish or organisms DESMI has developed a computer based training Redik Eschbaum, a fishery scientist at the from the ballast water - this is a much simpler program, and associated mobile app, to help University of Tartu, said: “I think it will not piece of equipment than a filter, with lower cost marine engineers and crew members train and bring any major jolts in our ecosystem. But to both buy and operate, and taking a smaller learn about its “Ocean Guard CompactClean” like all live organisms, it will compete with our footprint of space. ballast water system. native species for food and habitat.” The system does not need a filter because Mark Kalhøj Andersen, Technical Manager it can achieve a high enough disinfection and Head of Projects and Engineering with CTI-Maritec performance just with its electrochemical DESMI Ocean Guard says that the tools can CTI-Maritec’s testing facility is DNV GL methods, says Ah-Mi Moon, manager of the take someone who has to operate or maintain a approved. marketing team, with Techcross. system from 0% knowledge to 80%, with the rest Maritime testing and inspection company CTI- About 30 per cent of Techcross’s order book being the hands on part. Maritec, based in Singapore, has received DNV is with tankers, accounting for about 710 tankers There is an training course, starting with a GL approval for its ballast water test facility. in total, including LNG and LPG. general description and getting more detailed It can undertake commissioning tests in line TO

November - December 2020 l TANKEROperator 16 OPERATIONS Ecochlor – new US “VIDA” regulation for discharges The US is planning a new set of regulations for discharges from tankers (and other vessels), including from ballast water and scrubber wash water, the “Vessel Incidental Discharge Act”. Steve Candito, CEO of Ecochlor, explained the implications he US Environmental Protection exemption will be removed, so systems will need to fire protection equipment, gas turbines, grey water Agency (EPA) is proposing a new set be installed. systems, hulls and ‘niche’ areas, inert gas systems, of regulations covering discharge of The regulations will also describe more motor gasoline and compensation systems, non-oily ballast water and scrubber wash water specifically what can go overboard – how clean machinery, pools and spas, refrigeration and air T(among a list of 20 different types of discharge), the water needs to be before it can be discharged, conditioning, seawater piping, and sonar domes. under the new Vessel Incidental Discharge Act and operational requirements such as how often (VIDA). Online comments are accepted up to different systems should be inspected. Dead or non-viable November 25. Tanker operators will probably pay most VIDA resolves a longstanding issue with One interesting change relevant to tankers is that attention to the rules about discharge from ballast a differentiation between US ballast water currently, companies operating US flagged crude tanks, but the rules also cover discharge from regulations, which currently say organisms have to oil tankers going from one US port to another, such bilges, boilers, cathodic protection, chain lockers, be dead, and IMO regulations, which say they need as Alaska to a West Coast refinery, are exempted decks, desalination and purification systems, to be “non-viable”, or unable to reproduce. from the need to have ballast water systems. This elevator pits, exhaust gas cleaning (scrubbers), With VIDA, the US will align with the IMO D2

November - December 2020 l TANKEROperator 17 OPERATIONS

Discharge regulations, but the non-viable standard loaded, with ballast water mid ocean, you would water has been loaded in a freshwater lake, or is still an open issue . be less likely to transport invasive species to the sea with low salt content (the cut off is 0.018 salt There is some controversy, with the US discharge port. concentration), the water must be exchanged mid Coast Guard saying that there is no acceptable There have been safety concerns, with the ship’s ocean. testing procedure for ‘non-viable’, while there stability being affected during the time ballast water Another clause says that this ballast water is an approved testing procedure for ‘dead’. For is being exchanged. “Exchange was viewed as a exchange is not required if vessels have a system example, a system where organisms which are alive temporary measure until we had systems onboard,” which can treat water to 100 times the current will drink a dye which will then show up in their he says. standard. But there are no systems available today bodies. “The Coast Guard has said they are not Mr Candito believes that the regulation could approved to achieve this standard. going to use the non-viable standard unless they see be the result of a compromise between EPA and a testing protocol they are comfortable with,” Mr environmental groups, who had been pushing for Complexity Candito says. more stringent standards than the international Mr. Candito is fairly unique in having a But, “there’s all kinds of test standards out (IMO) standard. The shipping industry will background both at sea (serving as a marine there, a lot of information that various parties have welcome the fact that VIDA and IMO standards engineer onboard Exxon USA’s tanker fleet) and provided to the USCG to [demonstrate] how these are aligned. in law (working as a maritime attorney with Haight non-viable testing protocols can work.” The Great Lakes are a very sensitive Garner Poor & Havens), before spending 20 years Water exchange environmental area, with fresh water. “When you at an environmental services firm. Another requirement in the new rules (but not the introduce organisms from outside it is really a He recognizes that the legal burden on tanker old ones), is that for vessels going to the North problem,” Mr. Candito says. operators is becoming very cumbersome. “How is a American Great Lakes, ballast water must be But tanker operators may wish to consider shipowner supposed to understand all these ballast both exchanged mid ocean, and treated before sharing their views on this regulation with EPA, water details? They [also] have to worry about it is discharged. This is confusing, with people to say that there would be no additional benefit to scrubber discharge, grey water discharges, black reasonably asking why they need to exchange ballast water exchange if ballast water is treated water discharges, they really need to be experts on water if they are also going to treat it. properly. And they can say there could be safety everything, it is really difficult. Ballast water exchange regulations were implications from doing the exchange. (Note, this “I’m an expert on ballast water, but not developed as an interim measure before type needs to be done before Nov 25). necessarily all of the requirements under VIDA. approved ballast water management systems Another special regulation applies to vessels Being a lawyer helps me decipher some of these (BWMS) were available. The idea was that by discharging ballast in the US West Coast – things.” exchanging ballast water from the port it was California, Oregon and Washington. If the ballast TO

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Get your instant quote at: November - December 2020 l TANKEROperator www.onetankballast.com 19 OPERATIONS EOS Risk – piracy strategies for Gulf of Guinea The piracy risk in the Gulf of Guinea (West Africa) is getting more complex, with pirates moving outside Nigerian waters – but shipping companies are not allowed to deploy privately contracted armed guards. David Johnson of EOS Risk updated us

“ ankers are the most vulnerable Further to this the International Bargaining other infringements. and targeted vessels in the Gulf of Forum (IBF) and International Maritime Now, we have companies and their crisis Employers’ Contract (IMEC) on 21 October Guinea,” says David Johnson, CEO response advisors very reluctant to enter expanded their High Risk Area to include of maritime risk consultants EOS ransom negotiations, and pirates wary of the waters between the Ivory Coast and the TRisk. being intercepted by Nigerian authorities. This Congo/Angola boarder, to reflect the concerns “In the last 18 months or so, the frequency “creates an interesting backdrop in terms of they have regarding the threat to their of successful hijacking has increased, not how things will go,” he said. members working in the region. hugely, this is forecast to change with the EOS Risk believes that there will be some onset of the dry season, an expansion of the splintering of pirate groups, with groups threat area, and the possible splintering of Authorities operating in different ways. It is possible that piracy gangs,” he said. Ships are offered direct public sector pirates will ask to be paid ransom in bitcoin, “The number of people kidnapped has gone protection by Benin, and Togo, with a degree so it cannot be traced, and the need for up a lot over that time. The pirates have been of protection in Nigerian waters provided by a traditional ransom drops removed. able to charge more money for the release of higher level of naval activity. Shipping companies may really want to use these people.” The Nigerian authorities have stepped up armed guards. When these were introduced in Tanker operators need to consider if they their policing of Nigerian waters, but this has Somalia, there was a big impact in reduction “have the appetite to trade in an area which is had the effect of displacing pirates into other of attacks, and the risk-reward calculation subject to such risk.” waters, as far away as Abidjan (Côte d’Ivoire) pirates were making. “There hasn’t been a successful hijacking of a ship with armed The Gulf of Guinea region is normally to the West and Gabon to the South. guards onboard in Somalia.” taken to be the region from Liberia to Gabon, There is some increase in co-operation covering the coastlines of Côte d’Ivoire, between governments, so they can pursue Today, it may be sensible advice to have an Ghana, Togo, Benin, Nigeria, and Cameroon. pirates across different national waters, and armed guard in a location which allows it, Mr Johnson said. “We’ve gone through the whole Somali also share intelligence between agencies. piracy, which people are still protecting But the gangs are not exclusively Nigerian. But most states in the Gulf of Guinea take against, to the more aggressive Nigerian Crewmembers who have been kidnapped and the view that security is a role of the state, piracy, which has proliferated over 5-6 years,” released have said that not all the pirates in the and only state appointed people can carry he says. gang spoke the same language. weapons. The pirate gangs have something of a In the recent attack of general cargo ship So for a vessel sailing from Douala logistics operation behind them in the lead- Rio Mitong (May 2020), “the pirate gangs (Cameroon) to Abidjan (Côte d’Ivoire), going up to an attack, including choosing which involved in that – were hunted mercilessly through territorial waters of Nigeria, Benin, vessels to attack, finding people to physically and publicly through several countries. It Togo and Ghana on the way, even if it gets conduct the attack, finding people to look after resulted in them losing people in military a navy escort, the navies from each country hostages in camps, and negotiators. “It is not operations against them, several pirate camps cannot cross the water boundary. “It doesn’t just guys in a speedboat,” he said. being raided and destroyed, and the seizure make a huge amount of sense,” he said. “The key is to assess the risk before you of a ransom [by authorities] on the way It is possible for a private security provider go,” he said. “If you understand the risk – to a ransom drop, and seizure of weapons (such as EOS) to contract with host nation you’ll understand the measures that can be and paraphernalia that the pirates use,” Mr naval forces to provide private/public security taken to mitigate against it.” Johnson says. services for clients, and regularly do so. Escort vessels or embarked naval detachments are a The Joint War Committee of insurance The Nigerian government brought in a common feature of the services offered, and underwriters Lloyds recently expanded the number of laws to try to suppress piracy. One provide deterrent and protection. area of Gulf of Guinea waters which they shipping company was charged with paying a consider high risk. The expanded area covers ransom, under charges of funding terrorism, although subsequently the charges were the eastern side of the Gulf of Guinea across Maximising defences dropped, with the company prosecuted for to Gabon. Ships can however do a great deal without

November - December 2020 l TANKEROperator 20 OPERATIONS resorting to armed guards – if they put make periodic cuts in the wire, so only a small crew,” he said. defences up, and make sure the vessel is in piece of wire could be removed at a time. About EOS Risk regular contact with an intelligence service. In another example, pirates tried to board EOS Risk offers intelligence service, led by This may be “the best mitigation you can a container ship by ladder, but found their former high-ranking naval officers, where it get under the circumstances,” he said. ladders were not long enough – so they came tries to see the world through the pirates’ eyes. Your risk increases if you have a low back next time with a longer ladder. Operating in the Gulf of Guinea for several freeboard (distance from the waterline to the It is a sort of cat and mouse game, with years EOS provides a wide range of protective deck), or if the vessel is slow moving. “You pirates, agencies and shipping companies services in cooperation with host nations. have to put a lot of hardening on to prevent steadily increasing their methods. The company has developed expertise boarding, keep people off deck, have good “You need to make sure the vessel has done in how pirates operate, what measures are citadel procedures,” he said. everything possible to not make it a target,” effective. It provides services to help with If pirates come to attack the vessel, and he said. mitigation, intelligence about what pirates are you’ve all gone in the citadel, the chances of In another example, a vessel was attacked doing, crisis response and evacuation, “the having someone kidnapped is minimised.” a mile from shore, with crew not on guard whole package around it”. Even as this report is written, it has been because they didn’t think it could happen. The company’s director of intelligence, Ian reported that the tanker Errina was attacked Sometimes ships have had armed guard Millen, is a former Royal Naval Commander in the region, with a successful retreat to protection, but the guards have disembarked and law enforcement senior officer. The head the citadel resulting in no crew kidnapped, 60 miles offshore, but then found pirates of operations and private client services, Ben although the pirates ransacked the vessel and operating 150 miles offshore. Tams, is a former member of the UK elite destroyed bridge equipment. There are other examples of vessels being advanced forces. Both vessel operators and pirates have been attacked in areas far away from normal attack David Johnson, CEO of EOS Risk, is a learning from each other. At one time, ships areas, and so they were under a “normal watch former business development manager of felt safe from pirate boarding by putting razor routine”. Drum Cussac.The wire around the vessel. Pirates learned to pull “The watchkeeping element is absolutely the wire down with a grappling hook tied to a company’s largest client base is tanker crucial. The quicker you pick these guys up rope. Shipping companies then learned to operators, and has been for the last 15 years. the more chance you’ve got to muster the TO

Enclosed space fatalities continue - Standard Club Maritime insurer The Standard Club says that enclosed space fatalities are continuing to occur on ships, although much more on dry cargo vessels than tankers. A webinar on October 12 reviewed how the issue is evolving “ e continue seeing enclosed falls after passing out due to bad air. This not be aware of the details and extent of the space fatalities onboard meant something of a spike, after seeing 145 varied dangers posed by forest products, ships,” said Capt Yves casualties over the past 20 years (average 7 coal, iron ore, grains, gases and other cargo,” Vandenborn, director of loss per year). ITF said. preventionW with the Standard Club. “It just ITF did not break out the numbers between One of the worst cases was from keeps happening at a very frequent rate.” different types of ships, but Captain Akshat November 2018, when two dockworkers He was speaking at a webinar on October Arora, senior surveyor with The Standard died while unloading logs from the holder 12 organised by the Standard Club and the Club, said that it is much more a problem of a bunker, which ITF says was “likely International Ship Manager’s Association. with dry cargo vessels than tankers. We are following exposure to an unexpected The most recent public data available is including this article in Tanker Operator fumigant they were not told about.” from April 2019, when the International because it remains one of the biggest risks “A crew member saw them in distress Transport Workers Federation announced for tanker crew. and entered the hold wearing a face mask, that since January 2018, 16 dock workers “We know that maritime workers are determined to rescue them. During his efforts and 12 seafarers had died from asphyxiation generally aware of the risks associated with to assist, his mask was reportedly removed, or explosions in confined spaces – or from entry into confined spaces, but they may and he passed out, eventually landing in

November - December 2020 l TANKEROperator 21 OPERATIONS

hospital in an induced coma. A third docker If the casualties are continuing, then that and be waterproof and dustproof. required medical help before the tragic shows that the issue is not something just The regulation does not state how incident was over.” linked to shipboard staff, he said. many devices must be onboard, but says The Standard Club launched a Masters’ Naval architects could also make ship there should be an appropriate number of guide to Enclosed Space in 2012, and is designs where the enclosed spaces do not instruments. now on the 3rd edition, available for free require as much inspection, he said. Captain Szymanski said that he often download. Captain Szymanski served until recently as goes onboard ships and asks about the gas IMO made regulations for mandatory drills chair of an enclosed spaces sub-committee of detection equipment, and sees that while all in 2015, and for gas detection equipment the IMO’s Human Element Industry Group companies buy the gas detection equipment, to be onboard from 2016. The ISM code, (HEIG). The group has involvement from sometimes they expect crew to never use it, implemented in 1998, required companies to many engineers and designers. keeping it available for inspection only. “It is have proper risk assessments in place. It is calling for more human centric design, in a special suitcase. There is also a blanket and accident investigation with people in to cover the equipment, it says ‘do not Conflicting procedures mind, and a stop to blaming people. touch’. People don’t feel it is for them.” Captain Kuba Szymanski, secretary general, In the airline sector, where just one safety “When you go to social media, people InterManager, said that the number one problem on one or two planes (Boeing 737 would tell you, there is a lot of poor reason for enclosed space death was MAX) led to the fleet of 737 Maxes being managers around the world - and they are conflicting procedures, according to a survey grounded. “I’m not necessarily advocating basically doing the bare minimum IMO InterManager sent to seafarers in 2018 which for that, but why do we need hundreds of requirements. got 5,000 responses. accidents “A good auditor can easily detect whether “Chief engineers and masters say, ‘we are before we start thinking, ‘is there equipment has been used or not,” he said. reading one circular, then we read another something wrong with these spaces,’” he “If you see it has no mud, no scratch on it, it one, then we have a safety management said. looks brand new, you can say, ‘you have 28 system which conflicts with another,’” he ballast tanks, when did you use last time?’” said. Personnel issues Then a good auditor should be careful not “We need to stop confusing people. After A contributing issue is that very often, to blame crew if they find out it hasn’t been every accident there are more circulars. people working onboard do not know each used, he said. We’ve got enough.” other well. Captain Akshat Arora, senior surveyor This means that other crew members may with The Standard Club, said that there Design not feel comfortable telling someone they have been situations where a ship has had A second factor seafarers mentioned in the don’t know to stop doing a task because it risks of dangerous atmospheres which their survey was the poor design of enclosed may be dangerous. equipment could not detect, such as one spaces. Someone new may also try to impress case when a dry cargo was fumigated with For example, ballast tanks have “sampling colleagues by being willing to take on tasks phosphene. In this situation, crew have points”, for taking a ballast water sample which other people think are too dangerous. resorted to extreme approaches, including through a tap, but it does not take a sample The tanker sector does ensure that using live rats and chickens as gas detectors, from the bottom of the tank, so an inspection someone new coming onboard is surrounded he said. is required. by well experienced people, through If a crack forms in the steel between the OCIMF’s “time in rank” requirements, but Responsibility cargo tank and neighbouring ballast tank, gas other types of ships do not have the same Captain Szymanski said that while the ship can enter the ballast tank, so it has a non- requirements, Captain Szymanski said. manager is responsible for safe operations breathable atmosphere. There should be instead be a culture of of the ship under the ISM code, some To make them even harder to inspect, people helping each other to do better work responsibility should be taken by the these ballast tanks are sometimes designed and support them, he said. charterer, if they are loading cargoes on a in an “L” shape, going around the cargo vessel without determining if the vessel is tank. Gas detection equipment capable of safely accepting it. Another design issue is the size of IMO regulations (SOLAS Regulation Seafarers are expected to say if they feel manholes. If someone collapses, they will XI-1/7) came into force in July 2016, stating they are being asked to do something unsafe, need to be taken out of the tank somehow, that every ship needs to carry portable but they are unlikely to feel comfortable with both the collapsed person and the atmosphere testing equipment, which can doing this. They may fear they will never get rescuer needing breathing apparatus. Or as a minimum measure concentrations of a contract with this company again. you may need to resuscitate someone using oxygen, flammable gases, hydrogen sulphide When investigating accidents, this should bottled air. and carbon monoxide, prior to enter into be taken into consideration, rather than just “The manholes are too small to handle enclosed spaces, and while the work is being blaming the crewmember, he said. human being in breathing apparatus carrying done. Shipping companies should consider another person,” Captain Szymanski said. It stated that if the spaces have additional carefully when they make an order for crew Accident investigations always end up atmospheric hazards, appropriate instruments to go in a tank, what can go wrong, and how blaming crew – they never conclude that the should be carried. Personal gas detectors, they might be responsible. ship was not designed for enclosed space carried by an individual, are not considered entry. suitable. It must have 10 hours battery life, TO

November - December 2020 l TANKEROperator 22 OPERATIONS Making maritime blended learning work Two maritime training companies, Marine Learning Systems of Vancouver and Stream Marine Training of Glasgow, are collaborating to provide an “end to end maritime training solution” – combining e-learning and in-person learning to make a company wide learning management system hipping companies have responsibility in 1996, which merchant marine as a deck officer, and working for ensuring their crews are competent provided a learning for a while in the oil and gas sector. at any time. There is a large gap management system In January 2014 he set up a maritime between achieving that, and deciding for universities and educational business, training people in personal Swhich training courses they should be sent on. The colleges. It grew survival techniques. Within 2 years it had rolled collaboration between Marine Learning Systems to 350 employees, out 30 different courses, including 20 STCW of Vancouver and Marine Training of Glasgow supporting 14m courses, later adding courses on Arctic specific aims to fill that gap. students, and was survival training for the Polar Code and the IGF Marine Learning Systems provides a platform sold in 2006 for Code (low flashpoint fuels), including training which shipping companies can use to manage CAD$200m. cruise company staff to use LNG fuel. their entire training needs at a fleet, vessel or Murray Goldberg, He started his next founder and CEO individual crew member level. of Marine Learning project, developing Making blended learning work Stream Marine Training provides mandatory Systems a maritime specific Blended learning works best when the in-person safety critical courses and technical training learning management system, after a Vancouver learning and e-learning are co-ordinated to make programs. ferry sank the following year, and the company a seamless whole. “Too often they are very With the courses and the platform together, invited him to try to improve their training, separate,” Mr Goldberg says. shipping companies can manage all stages of A Wikipedia page on the vessel, MV Queen of There are many different types of e-learning, their training, including understanding training the North, cites reports saying the accident was ranging from just text on a screen, to rich needs and knowledge / skill gaps, pre-learning due to not making a planned course change, but graphical simulations, and much in between, all online, knowledge assessment, on-site training and a contributing factor may have been confusion with different costs and benefits. assessment, continuous knowledge assessment, among crew members about how the autopilot “All these things are happening right now,” he continuous skill assessment, and refresher worked and how to disengage it. says. “It brings to every domain expert’s hands training. Following the accident, “BC Ferries decided the ability to create online learning tool which is This enables shipping companies to manage they wanted to become a world class training very effective.” the competency of the staff holistically, so able to operator,” Mr Goldberg says. An advantage of online learning over in-person ensure the crew of their vessels are competent and At the time, there was much research showing learning is that everybody can work at a different have not lost their skills over time. that blended learning produced better outcomes pace, he said. Everybody has different pre-existing They can also get the best of both e-learning than in-person learning, so long as the program knowledge. and in-person learning. Using both together is was well designed, and BC Ferries wanted to It makes it much easier to deliver consistent sometimes referred to as “blended learning”. explore this further. outcome, because everyone can take whatever Blended learning can be more effective than just At the time, BC Ferries was training people time they need to reach the required level. using e-learning or just using in-person learning, “basically through job shadowing” - someone Being able to do spot assessments of knowledge but it does need to be structured. following someone else and watching what they and skill is very important, he said. You can find Today, while most shipping companies use do, Mr Goldberg says. This was “very hard to out what the “knowledge fade” looks like, and external providers for their training courses, standardise and measure.” where the re-training is needed. whether e-learning or in-person learning, they Mr Goldberg ran a blended learning pilot, Technology can be very helpful in showing often build their own learning management which the company was happy with, which led to what is not working – for example, if people platforms. requests for a learning management system which choose one answer then change it to another one, could be used across the company. you can see that they are not so confident about Marine Learning Systems Following the implementation of the program, their knowledge. Murray Goldberg, founder and CEO of Marine they calculated that accidents were reduced by 70 It can also show particular areas where Learning Systems, previously founded one of the per cent, both minor and serious. Days lost due to someone’s knowledge is weaker, for example that world’s largest learning system companies. injury reduced 66 per cent, and insurance claims they tend to do worse on questions in a certain After graduating in computer science at the reduced from CAD$3.5m a year to $800k a year. area, or many people in the company have the University of British Columbia, Vancouver, in same misconception, getting the same question 1989, he stayed on as a faculty member, with an Stream Marine wrong. “It is very actionable data,” he said. interest in online learning and its effectiveness. Stream Marine, based in Glasgow, was founded The two companies have a joint website at This led him to found a company WebCT by Martin White. His background is working in www.mls-smt.partners TO

November - December 2020 l TANKEROperator 23 OPERATIONS Update on tanker commercial employment We spoke to Eleven Recruitment’s Peter Morgan about the changes happening to the employment market in tanker shipping. s you might expect, salaries are under they “were able to offer very strong packages” opportunity to progress pressure in commercial tanker roles – this had encouraged movement, and had a to a chartering role.” in most companies. There is less of chain reaction effect through other sectors of the “Generally graduates a differential in earnings between employment market. who have a clear Acompanies, so those in the industry have a reduced As a general point, the number of people drive to be involved incentive to change position, says Peter Morgan, which shipping companies hire has a direct in the market, through oil trading and commercial shipping desk lead, at correlation with the size of their fleet, taking on shipping related Eleven Recruitment. more people as the fleet grows, and vice versa, degrees, or internships, The company specialises in recruiting for the he says. Peter Morgan, oil will be looked on more trading & commercial downstream commercial oil market, including Desired skills shipping desk lead, at favourably than those trading and shipping. Within the shipping sector In terms of the skills employers are looking for, Eleven Recruitment who don’t.” it is more involved in the commercial side rather shipping companies still place a lot of value on than technical appointments. candidates with a sailing background. Where are the opportunities? Mr Morgan runs the company’s commercial They like “people who have been to sea, As we know, the main commercial shipping shipping side and physical oil trading hires. know the bow from the stern, and can’t have hubs are still Houston, London, Geneva, Athens, Eleven Recruitment, formerly known as Oil wool pulled over their eyes. This is invaluable Dubai, Singapore, he says. Recruitment, is based in London and Cheshire, experience to have, particularly in operations “London is still seen, I feel, as the epicentre UK. Its parent company, Ashley and Dumville, departments,” he says. for shipping in Europe. A lot of the brokers are was involved in oil trading and shipping since “There is less of a need for people like that in here, charterers are here, and a good few ship the 1950s. oil/trading companies who don’t have their own owners are here. London is still very much Its clients include oil trading houses, oil owned time charter fleets.” crucial to the market.” majors, refiners, banks which are still involved For chartering roles, generally speaking, “Singapore however, has shown consistent in shipping and physical oil trading, and ship companies look for people who have already growth over the last 5-10 years. If you want to owners. It covers crude and products shipping, worked in specific sectors within the tanker be in shipping, Singapore isn’t a bad place to be and LNG. There is a focus on London, market. The trading companies do like for sure.” Switzerland, Singapore, the Middle East and US. candidates coming from other similar businesses 2020: changes in demand whereas tanker owners seem generally more The green future Due to market pressures, there is not a great open to candidates coming from both sides of Looking to the post Covid world, the green deal of growth in demand for tanker chartering the fence. energy transition continues to build momentum professionals however Peter has seen increasing “Shipping is a people business. You have to and importance. Indeed we have seen the oil and continued growth in demand for people with have those commercial skills, get on with people, majors announce their restructuring plans and set LNG expertise over the past few years. build robust relationships and maintain those out significant changes for a new direction. London has seen a few departures of relationships,” he says. This year we have also had IMO2020 and commercial offices of tanker operators in the “The markets are moving daily so you need we can see our clients beginning to future proof past few years which has reduced the career strong mathematical acumen to take a view on their businesses, developing decarbonisation options for the candidates in the market. As a the market and decide what’s a good voyage and plans and being alert for any new environmental result many tanker professionals are finding a bad voyage.” legislative changes that may affect them. But, themselves in different environments such as there are no clear signs yet about how great the competitive broking. Graduates impact will be on the hiring market, Mr Morgan Oil company marine departments have an A first port of call for many graduates is still says. increased focus on “optimisation”, ensuring working in demurrage (charges payable after a “Over the medium term at least, ships are still logistics are streamlined and efficient which failure to load the ship at the time agreed, the going to exist; oil is still needed; and while that has led to further emphasis on commercial equivalent of a taxi driver’s waiting charges). is the case our clients need operators to operate operations, he says. “Demurrage is a good starting point for many them and charterers to fix them,” he says. TO There have also been banks making an exit grads to get a foothold and understand the from physical oil trading. Previously, some general mechanics behind commercial shipping.” Eleven Recruitment’s salary survey report, banks had their own chartered fleets, he said. “From there, the traditional path was always covering commercial roles in tanker shipping Banks had a big impact on the employment to commercial operations: if you show promise and oil trading, is online at https://bit. market for oil shipping professionals, because and commercial potential, you may get the ly/3n9B9sK

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