TANKEROperator AUGUST/SEPTEMBER 2015 www.tankeroperator.com
Innovative engineering for environmentally friendly products.
Becker Marine Systems faces its responsibility for sustainable and environmentally friendly development by continuously reducing the ecological footprint of Becker products.
Furthermore we research and develop energy-saving product innovations like Nord Strength the Becker Mewis Duct®. Combined Tanker • built 2013 with a Becker Rudder, the Becker LOA 183.0 m •49,995 dwt Its Becker Mewis Duct® Mewis Duct® enables our customers reduces CO2 by 1,134 t per year to save up to 8% of power and to improve the EEDI of their vessels.
586 Becker Mewis Ducts® have already
reduced CO2 by more than 1,500,000 t fuel saver until July 2015. 425 more Becker Mewis Ducts® have already been ordered.
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International Registries (Far East) Limited Singapore Branch Y # %" !!"#!! $$$!"#!! Contents
Markets Anti-Piracy 04 Geo-political challenges continue 26 A three-pronged attack
Technology 29 30 Classification Societies All change at IACS Asset performance optimisation RS rules in compliance Flag state’s take on class LR gains tanker success Vetting support offered
Singapore Report 08 New SSA President Join the industry Shipmanagement centre Norstar set for growth FSL Trust’s markets gains
Shipmanagement 18 Wallem promotes new personnel V.Group continues momentum
Commercial Operations 23 Boutique agency expands Mombasa agency faces the future 36 Efficiency - Fuels & Lubes Keeping vessels operational Advantages in planning change 40 Ship Design New ship design tools 42 Ballast Water Problem of regrowth 43 Profile - DSM Dyneema Synthetic fibres used in rope 44 Coatings New products and ideas 47 Tank Servicing Statutory requirement changes Calibrating portable gas detectors
As well as presenting the 1,000th Mewis Duct at Nor-Shipping, the company, through one of its subsidiaries, started to supply LNG as a fuel to an AIDA cruise ship in Hamburg.
Innovative engineering for environmentally friendly products.
Becker Marine Systems faces its responsibility for sustainable and environmentally friendly development by continuously reducing the ecological footprint of Becker products. The fuel is transferred from a purpose deigned and built barge stationed in the port. Managing director Dirk Lehmann and his team are
Furthermore we research and develop energy-saving product innovations like Nord Strength the Becker Mewis Duct®. Combined Tanker • built 2013 with a Becker Rudder, the Becker LOA 183.0 m •49,995 dwt Its Becker Mewis Duct® Mewis Duct® enables our customers endeavouring to market this concept worldwide and not only to cruise ships but also to other vessel types, including LNG-powered tankers. reduces CO2 by 1,134 t per year to save up to 8% of power and to improve the EEDI of their vessels.
586 Becker Mewis Ducts® have already
reduced CO2 by more than 1,500,000 t fuel saver until July 2015. 425 more Becker Mewis Ducts® have already been ordered. Despite the fall in bunker prices, Becker Marine’s novel design rudders and ducts will still save enough percentage of fuel for a timely return
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August/September 2015 TANKEROperator 01 COMMENT Just what are the Nigerians up to?
Did the Nigerians really blackball been no reasons given for the blanket ban. elected a new Government one of whose 113 tankers? It would appear so Until such times that we know the reasons and election promises was to clean up corruption. given all the fuss that has ensued. how to circumvent those reasons, we had The NNPC has already stated it will look into Intertanko, P&I Clubs and the legal better take it seriously. the bunkering/fuel oil situation in Nigeria and fraternity, among others have all become Leading London-based law firm Holman within its territorial waters. involved, since a letter purported to have come Fenwick & Willan (HFW) almost immediately With smaller ship-to-ship transfers offshore from the Nigerian National Petroleum Corp sent out a warning saying that the directive there is still a real threat of piracy by interests (NNPC) suddenly landed on desks, stating that was thought to emanate from the President of allegedly based in Nigeria who want to steal the organisation had banned the tankers from Nigeria, Muhammadu Buhari. cargoes and resell them. calling in Nigerian waters. HFW also explained that earlier this year, The larger crude oil loading terminals are The letter included phrases such as the Nigerian authorities introduced a operated by the oil majors with the authorities “..engaging in crude oil/gas ... activities in requirement that all tankers loading crude and are by and large well guarded. There are any... terminals within...Nigerian territorial from Nigerian terminals complete an out-turn various factions that occasionally cause waters...”. The directive further provides that verification exercise (OVE) at discharge ports. trouble around the Bonny River and Niger “...the affected vessels have also been barred It was thought that the recent letter could be Delta, but these are mainly aimed at the oil from movements within ... Nigerian territorial linked to this initiative. However, HFW majors operating in the area, rather than the waters.” confirmed that the grounds for the ban had not ships themselves. Holes have immediately been identified in been explained thus far and “it is quite unclear At the time of writing (24th July), VLCC the list of tankers allegedly banned, including what rules or regulations the owners affected trip rates ex West Africa were above WS80 - a duplications, miss-spellings and the fact that are meant to have breached.” healthy return for owners but not necessarily some of the named vessels had never been to for operators. If we see an exodus of tonnage Nigeria, according to their owners and Wide ranging implications from this loading area with its popular heavy operators. HFW warned owners and operators about the crude, it could spook the market and would I cannot comment too much as to the potential implications for crude oil tankers obviously impact on Nigeria’s foreign content of the letter, as a copy did not arrive operating within Nigerian waters, which could earnings. on Tanker Operator’s desk, so presumably we be wide-ranging. Whilst steps are being taken Is it just a case of a new Nigerian are not banned. to understand the ban, HFW recommended the Government trying to exert its power over the However, it has engendered a series of affected owners and charterers take action to oil majors, who are accused of milking the warnings to owners and operators of named protect themselves against the consequences of assets or are there more deep political culprits about ever considering calling at being included on the prohibited list. undertones at work? Nigerian terminals. Some operators have even Looking forward, owners and charterers Hopefully, by the time you read this, the gone so far as to suggest inserting special should also take action to ensure they reduce situation will have become much clearer and clauses in charterparties, especially voyage the risk of being included in any we can all breathe a huge sigh of relief. Until c/ps, to indemnify themselves against having a updated/amended prohibited lists, the law firm then, there is nothing like uncertainty to send a vessel stopped when fixed to load crude oil at said. market sky high or into freefall. a Nigerian terminal. HFW also pointed out that there was a One has only to remember the Middle East Are we overreacting? I guess we have to question mark over what constitutes Nigerian wars and their affect on the tanker markets take anything seriously, which could cause a ‘territorial waters’. with threats to close the Straits of Hormuz $90 mill plus vessel to be seized together with For many years now, Nigeria has been a seen almost daily. her cargo and crew, as thus far, there have particularly unstable country and recently TO
TANKEROperator
Vol 14 No 8 PUBLISHER/EVENTS/ ADVERTISING SALES PRODUCTION Future Energy Publishing Ltd SUBSCRIPTIONS Melissa Skinner Wai Cheung 39-41 North Road Karl Jeffery Only Media Ltd Tel: +44 (0)20 8150 5292 London N7 9DP Tel: +44 (0)20 8150 5292 Mobile: +44 (0)7779 252 272 [email protected] www.tankeroperator.com [email protected] Fax: +44 (0)20 8674 2743 SUBSCRIPTION [email protected] EDITOR 1 year (8 issues) - £150 Subscription hotline: Ian Cochran SOUTH KOREAN Tel: +44 (0)20 8150 5292 Mobile: +44 (0)7748 144 265 REPRESENTATIVE [email protected] [email protected] Seung Hyun, Doh
Mobile: +82 2 547 0388 Printed by PRINTO, spol. s r.o. (Ltd.) [email protected] Gen. Sochora 1379 708 00 Ostrava-Poruba Czech republic
02 TANKEROperator August/September 2015 INDUSTRY - MARKETS Challenging times ahead? Where do you begin to describe the events influencing the resurgent tanker market of the past 12 months, a leading broking house asked?
n the crude sector, OPEC’s historic Increasing crude flows out of Iraq supported margins, particularly in Europe, boosted decision against cutting crude production Suezmax earnings, whilst exports from West product trades, and subsequent product tanker to defend its market share reverberated Africa to Europe remained robust, offsetting the earnings. With margins remaining strong thus Ithroughout the tanker markets. With the near disappearance of the traditional West far in 2015, together with an additional 800,000 oil price crashing, bunkers, which represent the Africa/US crude trade. barrels per day refining capacity in the Middle single biggest voyage expense, followed suit. With lower import demand from the US, East coming on stream, product tanker rates At the same time, higher global crude flows of West African and Latin America crude remained at their highest levels seen since production increased transportation to the East increased, boosting tonne/mile 2008. requirements, which supported freight rates, demand. In addition, the continuing conflict in A comparison spot rates/TCE earnings on said London broking house Gibson in its mid- Libya provided further support to the West several of the benchmark trades can be seen on year review. African Suezmax market, albeit at the expense the table below. By the end of June, VLCC Towards the end of 2014, a widening of the Mediterranean Aframax trades. earnings on TD3 (AG/Japan) had climbed to contango in crude oil futures increased In the products sector, earnings remained $69,250 per day, compared with just $12,250 speculation of floating storage. Although the under pressure over the first half of 2014. per day for the corresponding period last year. contango was insufficient to make floating However, the addition of refining capacity in Making the same comparison for TC2 (MR storage profitable, earlier this year up to 30 the Middle East began to support the market in 37,000 tonne gasoline UK-Cont/USAC) rates VLCCs were chartered in anticipation of a the second half of last year. have moved from $5,500 per day last year to a floating storage play later in 2015. This, coupled with stronger global refining very healthy $26,500 per day.
June 2013 June 2014 June 2015 Spot rates/TCE (a) WS TCE/day WS TCE/day WS TCE/day
VLCC (MEG/Japan) 41 $19,750 38 $12,250 64 $69,250 Suezmax (West Africa - UKC) 49 $9,500 72 $22,750 93 $50,000 Aframax (Nsea/UK-Cont) 83 $7,250 99 $13,500 150 $69,500 55k Naphtha (MEG/Japan) 95 $10,000 110 $13,000 141 $32,250 37k Gasoline (UK/Cont-USAC) 118 $9,000 99 $5,500 171 $26,500
VLCC S/H D/H Total 13 623 636 1 625 626 1 637 638 Suezmax S/H D/H Total 1 488 489 0 476 476 0 483 483 Aframax/LR2 S/H D/H Total 16 900 916 8 887 895 4 927 931 Panamax/LR1 S/H D/H Total 13 380 393 7 433 440 2 416 418 MR (25-55k) S/H D/H Total 105 1,756 1,816 71 1,772 1,843 59 1,821 1,880
Deliveries Jul to Jun (25,000 dwt+) 26.2 M dwt (197) 17.7 M dwt (162) 16.7 M dwt (180) Orderbook (excl. options) 49.6 M dwt (455) 62.1 M dwt (590) 77.3 M dwt (599) VLCCs on order 61 86 114
Demolition Jul to Jun (25,000 dwt+) 9.8 M dwt (96) 12.3 M dwt (104) 4.7 M dwt (70) Ldt price China / Sub Continent $315 / $430 $325 / $495 $220 / $390
VLCC NB / 10yr old $90M $29M $100.5M $50M $95M $52M Suezmax / 10yr old $56M $26M $66M $34M $64M $40M Aframax / 10yr old $47M $20M $54.5M $24M $53M $31M
(a) Assessed at market speeds of abt 13 kn laden, 11.5-12 kn ballast. Source - EA Gibson.
04 TANKEROperator August/September 2015 INDUSTRY - MARKETS
The continued recovery in earnings was both supply and demand intelligent automation driven. With the exception of MRs, fleet supply growth in both the crude and product sectors has slowed since 2014 with supply in some size groups even contracting, Gibson said. Limited fleet growth is also apparent this year, which has also contributed to the markets strength. Inevitably, with the success of the tanker sector, the temptation to take advantage of low newbuilding prices has resulted in a sustained period of investment across the board with the exception of MRs. With shipyards reporting shrinking orderbooks beyond 2016, pressure is mounting on yards to lower their prices still further particularly with the dearth of orders from the other shipping sectors, which are currently in the doldrums. At the other end of the supply chain, not surprisingly, we have seen very little recycling thus far in 2015 with just 17 tankers (25,000 dwt plus) sold. The largest two units were both 1992 built Aframaxes. Lightweight prices have softened considerably since last June and at the beginning of July stood at around $390 per ldt (basis India) about 20% lower than at the same time last year. As a result of firm rates and lower scrap prices, not many tanker owners are currently considering this option.
Higher values Secondhand values across all tanker sizes were higher than in June 2014, even for 15 year old vessels. And there have been several notable secondhand deals, which have attracted the attention of the market. Crude tanker values have risen faster than those seen in the products sector, but nevertheless, there are plenty of buyers looking to invest in both sectors. Probably the most talked about deal thus far this year was Euronav’s acquisition of four VLCCs for $96 mill apiece under construction for Metrostar, which has given the buyer newbuilds without adding to the orderbook. Looking at events on the political scene, little has changed since last Honeywell is a global partner providing year’s round up. A resolution to the Iranian crisis is underway. The Libyan situation remains unstable and no immediate peace process complete solutions for any type of vessel. appears to be on the horizon. Sanctions against the Russian Federation in Our comprehensive local project and engineering respect to the situation in the Ukraine remain in place but have had little capabilities help ship owners, operators, impact, as crude and product exports continue to flow. The US Government has thus far not made any decision on shipyards, OEMs, panel builders and integrators overturning the ruling on the ban of crude exports, but we continue to see reduce capital investment risk. We are dedicated even larger volumes of products from the country. to providing the most reliable technology for Certainly, the next few months will be interesting. For the tanker marine operations. This includes automated market, we could be entering a period of ‘ifs and buts’, as well as entering uncharted waters, which will be challenging, Gibson said. and portable level gauging for cargo, ballast and service tank applications, as well as temperature Orderbook and inert gas monitoring on all types of vessels. Examining the orderbook in greater detail, Gibson said that tanker All Honeywell solutions comply with international contracting activity is a good first hand indicator of near term certifications and regulations. developments in the global fleet.
Investment has increased notably over the past couple of years, although its intensity has varied, depending on the size group and the year. The number of tanker orders in 2013 reached the highest level since 2008. Although ordering activity declined in 2014; nonetheless, tanker investment thus far this year shows all the signs of beating the 2013 record. Stronger appetite for new tonnage in recent years has been stimulated by a number of factors. For example, in 2013-14, counter-cyclical To learn more about Honeywell’s marine offerings visit investment played a big role, driven to a degree by private equity/hedge www.honeywellmarine.com or www.tanksystem.com funds and relatively ‘undervalued’ newbuilding prices, which were ® 2014 Honeywell International Inc. All rights reserved.
August/September 2015 TANKEROperator INDUSTRY - MARKETS particularly depressed in 2013, reaching their lowest levels since 2004-05 in that year. In addition, LR1 and LR2 orders were supported by strong demand prospects, due to expanding export orientated refining capacity in the Middle East and India. Finally, this year the spectacular rebound in crude and product tanker earnings has translated into continued strong investment in new tonnage, despite a rapidly rising orderbook. Looking at each tanker segment in greater detail, 34 VLCCs were ordered during the first half of this year - just marginally below the 2014 total and not far behind the number of orders seen in 2013, when investment in new VLCCs reached its highest level for several years. The picture is similar for Suezmaxes, with 30 orders thus far in 2015, already more than half of all the orders for 2014 - the highest since Source - EA Gibson. 2010. Ordering activity for Aframaxes was considerably more muted in 2013-14, yet an impressive rebound has been seen this year, as since January, 40 Aframaxes have been ordered, GuardLine® Ambient-Cure Tank Coating the highest number since 2007. Investment in new larger product carriers has for Product and Parcel Tankers also accelerated thus far this year. In the LR2 segment, 37 vessels have been ordered, well GuardLine® ambient-cure tank above the number seen last year and more than half in 2013, when investment in new tonnage coating (+25°C/+77°F) is surged to its highest level since 2007. engineered for product and In the LR1 segment, 25 orders have been placed since January, just marginally short of parcel tankers carrying CPPs, the 2014 total, when investment in this vessel Bio-Fuels, Veg and Edible type jumped to its highest level since 2009. In contrast, ordering activity for new Panamaxes Oils, and similar cargoes. This has remained highly restricted, due to owners’ coating system has a lower preference for coated tankers. Investment in new Handy/MRs has also been application cost. very limited since 2014, albeit following an impressive surge in orders during 2012-13. Stronger investment in recent years has naturally boosted the size of the tanker orderbook, which by now has reached its highest level since 2011-12 for most size groups. At present, VLCCs and Suezmaxes have the largest orderbook, at 18% and 17%, respectively, to their current size. The orderbook for other tanker classes is also substantial, with exception of Handies. It will be interesting to see whether new tanker ordering activity will remain at similar robust levels during the second half of this year. If the returns continue to beat expectations, this Advanced Polymer Coatings will most likely be the case. Avon, Ohio 44011 U.S.A. Taking into account limited prospects for +01 440-937-6218 Phone tanker demolition - another consequence of +01 440-937-5046 Fax high earnings - all of the above means that the www.adv-polymer.com growth in tanker supply is going to start TO
06 TANKEROperator August/September 2015 &%&# $ !#
" "$ " "$ " "$
! "# $%&'('()&*S$,&(-.'/$0123/-,0($0(-40%5,-6(0.'//%,786&*3&%T&:,2,%,-;'()-6&,(6&4&(-4&%,'2,%,-;0* -6&-50/-40<&)&/,.(&(/34&.00)%0(.-&4107&4'-,0('%&$0(01; =,()03-104&'-5551'(),&/&%-3420$01 INDUSTRY - SINGAPORE REPORT New SSA president takes his seat Esben Poulsson was appointed as the Singapore Shipping Association's (SSA) new president after the newly elected Council for 2015-2017 was voted into place at the Annual General Meeting on 30th June, 2015.
he new Council elected Poulsson and to implement new initiatives introduced the direction that the association will be as successor to the outgoing SSA by the Council,”he said. heading – towards strengthening Singapore’s president- Patrick Phoon. At the 19th SSA AGM, it was announced status as a leading international maritime T that the seven ordinary members nominated centre, which will benefit all of us in the Paying tribute to the work of the SSA and for the 2015/2017 Council, most of which maritime community. This brand the Council, Poulsson said:“I am honoured served on the previous Council, were returned transformation represents where the and humbled to be appointed president of this unopposed. The seven Members are: association is today and our vision for the active and vibrant organisation, consisting in Rene Piil Pedersen, managing director, AP future.” excess of 470 member companies. Moller Singapore. The SSA also warned that it is important to “And as the SSA turns 30 years old, I would Esben Poulsson, chairman, Enesel Pte. distinguish between armed robbery and piracy like to pay tribute to the work of the many Caroline Yang, executive director, Hong when reporting incidents in Southeast Asia members who have served tirelessly on the Lam Pte. waters. Council and standing committees over the Lim Sim Keat, managing director, dry A little while ago, the SSA commissioned a years, and, in particular, to my predecessor transport logistics, IMC Industrial Group. study to determine the scale of threat posed to Patrick Phoon, who has served on the Council Katie Men, managing director, Isenco seafarers in the area. for no less than 24 years, the last four as Holdings Pte. The findings revealed that in the first President. Tan Chin Hee, executive director, Pacific quarter of this year the vast majority of “I look forward to helping to represent our Carriers. incidents in this region fell under the category members’ interests to the best of my ability, Lisa Teo, executive director, Pacific of armed robbery (which is within the and to continue our constructive relations with International Lines. territorial waters and under the jurisdiction of government agencies and other industry To mark the SSA’s 30 years of service to the the sovereign state) not piracy (which is on the partners in Singapore and overseas in maritime industry this year, as an active voice high seas). promoting and maintaining Singapore’s representing 475 corporate members and This distinction determines whether a position as a leading international maritime growing, it has rebranded itself with a new merchant vessel can seek protection from the centre. logo and embraced the tagline ‘Navigating the navy/coast guard of the littoral state or from “I feel our hard working secretariat, ably led Future’. the navy/coastguard of the vessel’s flag of by executive director Michael Phoon, stands Poulsson explained: “The tagline registry, the SSA explained. ready to help drive current initiatives forward, ‘Navigating the Future’, was chosen to show The association said that seafarers should be
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INDUSTRY - SINGAPORE REPORT aware that recent reports of pirate attacks are exercises high vigilance and conducts anti- problem, the SSA commissioned the technical in fact more likely to have been armed robbery boarding watch, being attacked is between report to examine incidents of armed robbery and targeted at specific vessel types, 0.012 and 0.07%. and piracy in Southeast Asia waters and the particularly when in port or at anchor. The situation in the South China Sea is South China Sea. SSA calculated that, with an estimated vastly different to the situation in the Gulf of The report undertook a detailed analysis of 50,000 -90,000 vessels transiting the Straits of Aden where heavily armed pirates board the quarterly reports issued by the Malacca and Singapore (SOMS)) each year vessels in open seas with the intention of International Maritime Bureau (IMB) and the and further numbers sailing around the taking the ship and its crew hostage for Regional Co-operation Agreement on Southeast Asia and South China seas, the ransom payments. Combating Piracy and Armed Robbery against likelihood of a merchant vessel, which To fully understand the real scale of the Ships in Asia (ReCAAP) for the first quarter Singaporeans urged to join the marine industry by the MPA
The tripartite maritime task conditions and being 'disconnected' from the Singaporean cadets will also be eligible for forces for seafaring and shore- world, as well as lack of awareness of Achievement Awards once they completed the based sectors formed by the remuneration and progression opportunities. rigorous training and gained practical Maritime and Port Authority of In addition, rapid transformation in the experience at sea. Singapore (MPA) will be stepping industry also poses new challenges. Under the enhanced Tripartite Maritime up efforts to encourage more To tackle some of these challenges and to Scholarships (TMSS), 20 students will also be Singaporeans to join the maritime better support the growth of Maritime receiving their scholarships in August, the industry. Singapore, the two task forces will be highest number of recipients since TMSS was These include increasing publicity and exploring more structured on-the-job training, launched in 2002. outreach efforts to profile the diverse job develop multiple progression pathways, as Two new sponsors - NYK opportunities available, improving workplace well as facilitate transitioning of local Shipmanagement and X-Press Feeders - have learning and training, and facilitating seafarers from sea-going to shore-based jobs. joined the TMSS programme, bringing the upgrading opportunities. These initiatives are in line with the total number up to five. The other three This was revealed by Andrew Tan, MPA national-level SkillsFuture project aimed at companies are APL, PIL and PACC Ship CEO, in a speech at the 8th Maritime providing Singaporeans with the opportunities Managers. Manpower Singapore (MMS) 2015 to develop their fullest potential throughout Besides the initiatives by the task forces, Conference organised by the Singapore life, regardless of their starting point. MPA MPA will continue to utilise the Maritime Maritime Officers' Union and Wavelink said that it will be announcing more details on Cluster Fund - Manpower Development Maritime Institute. these initiatives in the months ahead. (MCF-MD) as a strategic tool to support In his speech, Tan spoke on the growth of To begin with, the task force for seafaring manpower development initiatives. Earlier Maritime Singapore and the diverse will be implementing cadet allowance this year, MPA injected another S$65 mill to opportunities for Singaporeans, as well as reimbursement in September to support the the MCF-MD programme to attract and how tripartite efforts are needed to develop a training of about 180 Singaporeans to groom local talent for the maritime sector quality maritime workforce to support the graduate with the Certificate of Competencies Today, Maritime Singapore comprises over industry's future growth. (CoCs) Class 3 or 5. To recognise the 5,000 establishments employing more than He also outlined several challenges. These perseverance of the students to reach their 170,000 people, and contributing about 7% to include the perception of poor living first professional CoC certification, the Republic's GDP.
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10 TANKEROperator August/September 2015 SINGAPORE REPORT
Intelligent solutions for tank monitoring
Visit KROHNE Marine at Nor-Shipping, Oslo, 02–05 june, hall C, booth C05-21
Are you looking for complete solution for tank monitoring and alarming? CARGOMASTER® from the KROHNE Marine Division is the answer. SSA’s new president - Esben Poulsson. In combination with the high precision cargo radar level meter OPTIWAVE 8300 C Marine, of 2015. CARGOMASTER® combines readings from all tanks onboard into a modern and easy-to-use software. Petty theft The findings revealed that only 14% of attacks on merchant vessels • System includes software adapted to individual were classified as piracy. Of the remaining incidents, 85% were cases vessel applications, engineering, drawings, of armed robbery with almost half of these (46%) occurring while in documentation and commissioning port or at anchorage. The vast majority of incidents (68%) involved • Monitoring of pumps and cargo lines as well as ‘petty theft’ by unarmed perpetrators where crew members were integration to other systems onboard unharmed and economic loss was low. SSA said it was encouraging Masters and seafarers to ensure that • User-friendly software, running on all standard they comply with recognised methods to counter possible boarding marine computers when traversing Southeast Asian waters and advised that, if boarded, • Installation on all kinds of vessels, from the Masters should put the well-being of their crew first while, at the same smallest product tankers to the most complex time, fully complying with the standing instructions of their respective chemical tankers and large VLCCs companies. The association also pointed out that the Best Management Practices KROHNE Marine – The marine industry is our world. for Protection against Somalia Based Piracy (BMP4) can be successfully adapted for use in Southeast Asia.
Case increases Please see our In its half yearly report, ReCAAP said that the number of piracy and website for more armed robbery cases against ships in Asia increased 18% year on year information.
August/September 2015 TANKEROperator INDUSTRY - SINGAPORE REPORT
Singapore is home to many tanker owners or their subsidiaries. to 106 during the six months ended June 2015. This compares with 90 cases during the first half of 2014. "Already 106 incidents were reported at the I am honoured and humbled to be half-way mark of 2015. This signals the “ urgency and importance of more [that needs] appointed president of this active and to be done by [the] authorities, shipping industry and the ReCAAP Information Sharing vibrant organisation, consisting in excess Centre towards improvements in the coming second half of 2015," it said in its report. of 470 member companies. The bulk of these cases or 62 incidents were of petty theft. Last year, the number of piracy and armed ” Esben Poulssen, president, SSA robbery cases against ships in Asia increased 22% year on year to hit a 10-year high of 183. It was the highest number recorded by ReCAAP since it was formed in 2006 and was formally recognised as an international oil or fuel, which the ship was carrying and being aborted. organisation in January, 2007. they left the vessel once the siphoning Also highlighted was the tracking and arrest Of the total 106 incidents reported during operation was complete. off Vietnam of an eight-man Indonesian gang the first half of this year, 56% were in the In its six month report released last month, responsible for the hijacking of the Malaysian Straits of Malacca and Singapore, ReCAAP the IMB also highlighted the continuing trend tanker Orkim Harmony in June. IMB also said. in Southeast Asia in the hijacking of small praised the Malaysian authorities for the Ten of the incidents were described as very coastal tankers by maritime pirates, averaging conviction of nine Indonesian pirates the same severe involving ship fuel or oil siphoning and one attack every two weeks. month, apprehended after the January hijacking. According to the report, five small tankers hijacking of an anchored product tanker off At least one incident was reported each were hijacked in Southeast Asian waters in the Johor. month during the January-June period. A total second quarter of 2015 alone, bringing the Pottengal Mukundan, Director of IMB said: of 11 incidents involved siphoning and total number of vessels hijacked globally in “Information sharing and co-ordinated action hijacking. 2015 to 13. between concerned coastal states is crucial in These incidents involved seven product IMB stressed, however, that enhanced co- responding to this threat. We commend the tankers, two chemical tankers, one other operation between regional authorities is effort that caught one gang and also the hefty tanker and one supply vessel. paying off and that early detection of custodial sentences imposed on another which The key target for the perpetrators was the approaching skiffs has resulted in attacks will help deter further incidents. TO
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www.bs-shipmanagement.com INDUSTRY - SINGAPORE REPORT Shipmanagement is thriving on the island
Singapore is a major centre for third party shipmanagement concerns, either subsidiaries of major groups or standalone companies.
ithin this feature, we look at sees established companies growing steadily, staff from dry ships to oil or vice versa. The two - one in each category - there are also some new players in the market same goes for our crew, as senior officers in Bernhard Schulte and some local trading companies who now particular have all been properly trained WShipmanagement (BSM) and want to branch out into the international through the petrochemical environment to Norstar. market. ensure that this type of operating style is BSM’s office in Singapore was established “BSM is particularly well placed to help all second nature to them. in 2000 and is one of nine Ship Management of these companies using our long standing “Our specialised fleet teams of highly Centres around the world. experience and international reputation in the trained on board and shore-based functional The Singapore centre is ideally placed to tanker business,” Maxwell said. specialists are in the best position to offer serve customers throughout Asia and the rest He explained that being focused on enabling responsive support,” he explained. of the world, with a stable location that is business partners to achieve their objectives As for training, Maxwell said that the strategically situated at the heart of the Asian through the application of knowledge, company concentrates on value added training shipping industry and provides ready access to experience and innovation, the company’s for the crews above and beyond STCW the rest of the region. commitment to every customer is: requirements to ensure that they are properly In conversation with Tanker Operator, BSM Maximum vessel availability, safety, prepared for the high pressure working Singapore managing director, Bob Maxwell reliability and efficiency to achieve higher environment on modern vessels. said that the centre manages over 40 tankers, income at the lowest possible operating Committed to recruiting, developing and from chemical tonnage, through product cost. retaining exceptionally skilled personnel, BSM tankers to crude carriers, the company also Protection of customer reputation through operates five Maritime Training Centres manages a fleet of gas carriers. integrity, full compliance and a top quality located in China, Cyprus, India, Poland and In total, the nine centres manage over 150 safety and performance record. the Philippines in addition to 23 Crew Service vessels in the chemical, product and oil tanker Responsive global support provided Centres worldwide. Training scope includes a segments worldwide through highly through an infrastructure of wholly owned mix of internal and external seminars, experienced superintendents, who are ship management, crew supply and workshops and on board training. extremely competent in tanker operations, maritime training centres in over 30 Land-based training replicates the on board Maxwell said. locations worldwide. environment that seafarers will encounter in “Chemical tankers and high value product He said that in line with the increasing tanker their line of duty, including gas and safety tankers have always been a core part of our interest in Singapore, BSM Singapore was management courses and practical sessions on expertise going back 15 years to when the expanding and would continue to do so in a advanced bridge, cargo handling and engine office was established in Singapore. Their controlled and co-ordinated manner. simulators delivered at BSM’s wholly- owned specialist nature, and the in-depth experience “We don’t over promise or take on business facilities. “BSM strongly believes that required to effectively manage these vessels, is that we can’t handle. All new business has to continuous investment in training is vital to key to BSM’s success within the market of be properly managed to the benefit and developing capable and professional BSM Singapore. requirement of our customers and for BSM to people,” Maxwell explained. “We are committed to ensuring that we maintain the long standing reputation that we As for the working conditions in Singapore, deliver the highest standard of crew and have established in the tanker industry with Maxwell said that the island is probably the technical management with an emphasis on vessel owners and charterers,” he stressed. most shipping friendly environment that the safety, environmental protection and smooth company could work in. The Government vessel operations within this industry,” he said. Petrochemical fleet works closely with the Singapore Shipping He explained that in particular, the Asian Over half of the Singapore-managed fleet Association (SSA), of which BSM is a and Singaporean tanker market was moving in comes from the petrochemical market and member, with rules and bureaucracy kept to a positive but cautious upward direction, BSM’s policy is to recruit shore staff for these the minimum. “That is one of the reasons that driven by changes in local demand and vessels from the same sector to ensure that the industry continues to thrive in Singapore refinery capacity. they have an in-depth understanding of the and why BSM is committed to being part of “New business comes from both established industry. it,” he concluded. players and start up ventures. Whilst BSM “It is not an option for us to quickly swap
14 TANKEROperator August/September 2015 INDUSTRY - SINGAPORE REPORT Norstar set for growth News that Norstar Ship Management (NSM) had officially opened a crewing office in Yangon, Myanmar recently - Norstar Crew Management Co - prompted Tanker Operator to talk with managing director Tom Bonehill.
t the opening of the new office, office in Singapore. Norstar has a pool of Bonehill said: “The opening of around 1,000 Myanmar seafarers, which our crewing office in Myanmar is makes it one of the largest crewing companies Aa very significant step for Norstar. in Myanmar. The company claimed high We have been using Myanmar seafarers on our retention rates, which are expected to grow vessels for many years now and the move to with the increased training and benefits now establish our own office where we can invest being offered to the seafarers and their further in training and welfare is consistent families. with our long term commitment to our Norstar Crew Management is also active seafarers and Myanmar as a whole.” recruiting local cadets from the Myanmar The Yangon crewing office now undertakes Maritime University and the Myanmar all crew manning and departure arrangements Maritime Mercantile College. on behalf of NSM in Singapore. Bonehill added: “We are investing in Norstar currently operates a fleet of 19 Myanmar for the long term and wish to play mainly oil product and chemical carriers. The an active role in the development of the vessels are predominately manned by maritime sector in the country. We are keen to Myanmar officers and crew. explore the idea of setting up our own Norstar’s Tom Bonehill. Bonehill told Tanker Operator that the NSM dedicated training centre here one day and this platform had been built up to manage tonnage is something which is high on our agenda as clients, friends, staff and seafarers. in all shipping sectors and the company has our fleet grows and our operations expand. Bonehill explained the attraction of the in-house expertise to undertake this. “Our “We intend to increase the recruitment of Singapore by saying that it is a major shipping focus over the last few years has been on Myanmar seafarers to become one of the hub, which caters to all of the shipping chemical and product tankers, however, we are leading and preferred employers in Myanmar. sectors. “We are seeing it grow from strength able to manage other types and have crew in Our focus will be on training crew and officers to strength,” he said. our pool with experience on drybulk, container to the highest standards supplying seafarers to and other sectors.” all sectors in the maritime industry,” he said. Vetting teams The new office in Yangon commenced To mark the official opening in June, Many of the oil majors have vetting teams on operations in February 2015 and is an Norstar held a three day officers’ conference the island, which he claimed worked well extension of the Norstar Ship Management in Yangon, which was attended by around 200 being in the same time zone, as well as the same city. Commercially, many of the main charterers, including the traders, oil majors and operators also have offices in Singapore. “People are happy to live and work in Singapore with its thriving shipping community and high standard of living. It’s is a good place to manage tankers from and the Singapore Government has been very proactive in thinking of ways to attract companies, so yes we see more owners and operators managing their tonnage from Singapore. We definitely plan to increase the size of our fleet managed from Singapore. “Ultimately, Singapore does need to remain cost competitive and the margins are tight in honest management so the Government will need to keep a close eye on this, as no doubt they are. Ultimately the shipowners will look at the bottom line and if the managers’ costs are too high people will look to more At present, Norstar’s fleet consists of primarily product and chemical tankers. competitive solutions,” he explained.
August/September 2015 TANKEROperator 15 INDUSTRY - SINGAPORE REPORT
As for the potential new business, he said requirements, which is necessary when dealing many shipping banks and they are that in tanker shipmanagement, it’s all about with private equity investors. multinational relationships. “Setting up a performance to the highest standards and “We expect to be managing up to 40 ships shipowning business is not easy wherever you having the oil major approvals. “The fact is, within the next two to three years. This will be are located in the world. Norstar arranges debt it’s expensive to switch managers when there a healthy mix of third party and tonnage in with banks for the tonnage has invested in,” he is a period of the vessel being unapproved, which we have an ownership interest,” he said. said. which makes it very hard for an owner to trade He added that NSM believes that the As mentioned, today NSM carries out the ship commercially. Ships therefore usually company is recognised as a cost-competitive, constant training from the new Yangon office stay with one manager unless something goes high-quality shipmanagement company with where the majority of the seafarers emanate drastically wrong, and there is no cost control integrity. “NSM offers both commercial and from. Forums are organised at least twice per or external forces insisting on the management technical management services and there are year in Yangon and officers and crew changing. clear advantages in carrying out both for our frequently pass through the Singapore office “We have grown organically working with clients. NSM also technically manages a for training. In addition, a great deal of trusted partners and by referrals. In such number of vessels where there is no training on board is carried out, which is often turbulent markets as a manager it’s hugely commercial management carried out by us,” the most effective place to conduct certain important to work with well-established and he added. types of practical training. financially secure clients. We are also Another advantage is that ship finance is Echoing the view that Singapore is a good managing ships for a number of private equity available in Singapore, as it is in other cities place in which to conduct business, Bonehill backed funds who look to outsource their around the world. Almost all the main said that the Maritime & Port Authority shipmanagement, and we have strategically shipping banks have a presence in Singapore, (MPA) and the Singapore Shipping positioned ourselves for this market however, ship finance is cross-border and Association (SSA) are relentless in working development. Our systems have been set up to NSM works with banks from all over the with the community to make Singapore an be transparent and meet strict reporting world. Norstar has close relationships with efficient place from which to run a business. TO NSM - a potted history
Norstar was founded in 1998 in Ship Management Associates and Luna, concentrate on its own shipowning and London initially as a ship Norstar’s in-house technical team. Norstar shipmanagement activities. brokerage firm. In 2001, the Shipping USA was established in Norstar Ship Management’s team is company relocated to Monaco to Connecticut, US in 2012. largely made up of the ex-in-house technical focus on shipowning, investment With over 40 years combined experience department for a well-known US and management. Norstar’s principals, Chris and Tom Bonehill product/chemical tanker owner. Many of the Norstar Shipping (Asia) was formed in have been actively involved in the shipping present staff worked with this company for Singapore in 2005, which is now the industry since 1989. The Bonehill brothers 17 years managing a fleet of about 20 company headquarters covering all areas of worked for major shipbroking companies vessels, most of which were built in commercial and technical management. (Clarkson’s London/Hong Kong, Arrow Japanese shipyards. In 2010, Norstar’s in- In 2009, technical shipmanagement was London, Island Shipbrokers Singapore) until house shipmanagement company integrated brought in-house and in 2010, Norstar Ship Norstar UK was established in 1998. Norstar the team into its existing technical platform Management was formed by the merger of ceased competitive shipbroking in 2007 to and NSM was formed.
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16 TANKEROperator August/September 2015 INDUSTRY - SINGAPORE REPORT FSL Trust reaps the benefits of strong market In July, FSL Trust Management (FSLTM), as trustee-manager of First Ship Lease Trust announced new period timecharter contracts for an Aframax and two MRs. he 2007-built Aframax FSL Shanghai and the 2005 and 2006- built MRs FSL Hamburg and FSL TSingapore were fixed to a leading global commodities trader, believed to be Trafigura, for a fixed period of two years with options to extend the agreements at a higher rate for the MRs for a further six months and the Aframax for a further 12 months. The charters are due to commence during the second half of this year and are anticipated to generate up to $61 mill in revenue during the next three years, the Trust said. During the two-year base period under the FSL Trust CEO Alan Hatton. new employment, FSL Shanghai’s net daily rate represents a 54% increase, while FSL continue down the share route, or look at other For the vessels employed on timecharters or Hamburg and FSL Singapore’s net daily rate forms of financing, Hatton said; “We continue in a pool and revenue-sharing arrangements, represents a 31% increase for each vessel, to keep our options open at this stage. We the Trust works with best-in-class technical compared with the previous timecharter have delivered an approximately 80% return and commercial managers. The technical agreements. for our unit holders in the last 12 months and managers include Columbia Ship Management The Trust said that the increased rates the focus is on continuing to demonstrate (Singapore) and Thome Ship Management reflected the continued tanker market strong performance. both of whom had helped the Trust drive improvement and demonstrate FSLTM’s “We continue to work on various initiatives operational efficiencies across the fleet ability to achieve strong charter rates with to improve our capital structure. This has been without compromising on quality and safety. good counterparties ensuring stable cash helped by becoming compliant with our loan Commercial managers, Teekay, Nordic flows. terms at the start of the year and being listed Tankers and HANSE Bereederung have helped FSL Trust CEO, Alan Hatton, commented at gives us a variety of sources of capital to ensure improved rates on the redelivered the time: "The new rates are significantly target. Getting the balance of sources of vessels, he explained. above the current employment rates for the capital right will be a significant determinant “Since 2013, we have adopted a new three vessels and the projected revenue will in the success of the Trust, as it is for any approach to managing the commercial and generate significant cash flow for the Trust. shipping business,” he stressed. technical requirements of our business, which These new contract agreements are another has meant having to more carefully weigh the positive step forward for the business, Gearing reduced value of spending more on shipmanagement providing stable and improved cash flows for He also said that the Trust’s gearing ratio has costs against achieving improving operating the Trust.” moved from 59% to 49% since the end of results. Hatton told Tanker Operator that the Trust 2013, thus managing the relationship between “Our goal is to bring shipowner efficiency has no immediate plans to expand the fleet. debt and equity in the business is an important by introducing the right kind of best practices “We do want to grow the Trust and start strategic driver. and standards so that the commercial and renewing the fleet in due course. We would The Trust has a variety of deals in place for technical sides of our business work together. continue to be sector agnostic, driven by both technical and commercial management of In terms of managing our operating expenses, originating and executing deals in markets the fleet. Hatton explained that vessels that we’ve found that paying more attention to how where we believe the fundamentals support remain leased out on long-term bareboat managers are operating the vessels allows us investment, focusing on working with first charters are technically managed by the to contain the unbudgeted side of costs but we class counterparties, minimising residual risk respective lessees, except in the case of the are not merely saving, but saving wisely. In and achieving strong returns on equity.” TORM bareboat charters, where a third party some instances we might decide to spend a When asked if it is company policy to manager was engaged by TORM. little to save much more,” Hatton said. TO
August/September 2015 TANKEROperator 17 INDUSTRY - SHIPMANAGEMENT Wallem sets its stool out Since the end of last year, it has been the case of all change within the Wallem Group with various senior appointments announced.
tarting at the top, last May, David personnel teams, which encompasses Price joined the Wallem Group as recruitment, retention, crew welfare and managing director of Wallem Ship training, to deliver future-ready seafarers who SManagement. are professional, safety conscious and Price has worked in all senior levels of dedicated to their jobs. shipmanagement and has a high degree of Ioannis Stefanou was appointed in 2014 to experience in technical management, manning, lead the technical management business of procurement and quality and safety. He began Wallem, delivering clients a reliable, quality his career in shipping as a deck officer, service from the shipmanagement service hubs leaving as a Master. in Hong Kong, Singapore and Europe. Wallem Group CEO Simon Doughty said at A long-term Wallem procurement expert, the time of the appointment; “Shipping is a Mark Haslett continues to deliver Wallem constantly changing world, and a very clients a reliable and value for money service competitive one, so to continue to deliver what with Marine Buying Services (MBS), which our clients and stakeholders want today and he offers to non-Wallem clients seeking predict their future needs, we have combined similar cost savings and quality. the right people and expertise.” Three new positions in the technical Wallem Group’s growth plans include management team were also recently increasing the commercial, technical and crew established to capture the expertise of senior Wallem Shipmanagement’s new MD David managed fleets, introducing progressive tools staff and focus them on the needs of clients - Price. and systems to both the Group and clients, head of Dry Fleet Operations, head of Tanker building a strong logistics network in Asia, Fleet Operations and head of Car Carrier and Hong Kong- and tankers can be managed and escalating commercial focus and activity. Operations. The tanker head is Akhileshwar from any of these locations. In Europe, late last year, Wiebke Schuett Roy. “We aim to provide services either close to was promoted to managing director, Wallem Wallem Ship Management now technically the clients time zone or where the ships mostly Europe. She is well known with Wallem’s manages around 122 tankers of which 18 are trade - it is our clients' choice,” Moore said. clients in her previous role in leading the fleet VLCCs. Price confirmed that there was a lot of personnel team in Europe. opportunity in Asia. Capt Deepak Honawar, a veteran of Wallem AMCL fleet Price cited the case of Chinese owners Ship Management and former Wallem An example was the 10th and final VLCC, wishing to break into the tanker market where seafarer, is leading the Wallem Singapore hub, which entered into the Group’s management Wallem could add value as a third party while Mingfa Liu joined Wallem Ship from Associated Maritime Co (HK) (AMCL), manager by adding oil major approval to the Management in January 2015 as managing a member of the China Merchants Group, in vessels. director, Wallem Ship Management China - a mid-February this year. The AMCL vessels “It is not easy to set up a new venture, as oil newly established role within the Wallem were taken under management under majors want a track record before giving the Group. BIMCO’s Shipman contract commencing in vessels their approval,” he said. Based in Wallem’s Shanghai office, he is October, 2014. Another factor for oil majors is TMSA, concentrating on the Group’s relationships Speaking at the time, Doughty said: “We are which once set up is a lot easier to with shipyards and drydocks in China, and proud to be partnering with another strong continuously improve. Price said he thought represents Wallem’s shipmanagement services Hong Kong-based shipmanager. AMCL was there was a TMSA III in the offing next year. in the region. looking for a company which could offer a The shipmanagement concern has created the Vijay Soman, who started his career as a good record in VLCC experience and had the post of oil major relationship manager, who is Wallem cadet, now leads the safety, quality crewing pool to quickly take over the vessels.” an ex BP employee. and insurance teams. He is an example of how In conversation with Price and director of Wallem has been managing tankers since a seafaring career can grow into so much more sales & marketing, Nigel Moore, Tanker 1971. The first third party management within the same company, given the right Operator was told that Wallem has contract was for a brand new fleet of 10 opportunities and development, Wallem said. specifically developed the three product tankers for Gotaas-Larsen. “We have Capt Fared Khan is leading the fleet shipmanagement hubs - Hamburg, Singapore since developed a specialist team that focuses
18 TANKEROperator August/September 2015 INDUSTRY - SHIPMANAGEMENT not only on our owner's requirements but the future and away from related-party He confirmed that he was looking to expand needs and demands of their charterers whom shipmanagement companies,“ Moore said. Wallem’s shipmanagement sector organically, must also be kept happy,” Moore said. Critical mass, ie vessel numbers, has but not at any cost. Only quality vessels and As for training, Wallem runs tanker specific always been quoted down the years as an managers would be considered. courses at the group’s main training centres in essential element in third party Wallem also operates SeaSafe Marine, a life Mumbai, Manila and also Qingdao, at which shipmanagement. Moore agreed saying; boat maintenance service company, which the next generation of Chinese tanker crews “Critical mass is essential, even more so today recently won its first fleet maintenance are being prepared. than in the past. With the ever increasing contract to look after 20 drybulk carriers. With finance appearing to be easy to come legislative and compliance requirements, a SeaSafe Marine’s current client list includes by today, Wallem is marketing its services to shipmanager must develop and maintain a companies from across the maritime sector, the financial sector. Moore explained that wide range of highly skilled staff along with a including those operating tankers. Wallem was among the first to manage huge knowledge bank and the systems to run it SeaSafe is described as an independent distressed assets from the banks by which the all. lifeboat servicing and testing organisation group took over both the technical and “With a sufficient fleet size, we can deliver (ILSTO). It is an authorised representative of commercial management until vessels could what is required and at a reasonable cost to major lifeboat and davit manufacturers, with be upgraded, traded and eventually sold. The our clients. At the same time, whilst Wallem is class and flag approvals. vessels included product and Aframax tankers. big enough to provide economies of scale we Wallem Group’s other third party services “We continue to do this business along with are not too big that we cannot provide a includes marine buying services (MBS), which managing vessels for many of the traditional tailored service to our valued clients,“ Moore delivers procurement services to third party tanker owners. In more recent times, we have stressed. shipowners and other maritime businesses. seen the advent of huge private equity Price said that management fees had not MBS lowers operational costs by using investment in shipping, which has been the changed in 20 years and due to the raft of new economies of scale derived from planned bigger game changer. This new category of rules and regulations, shipmanagement project purchasing while allowing shipowners owner will, we believe, gravitate more to companies have had to bring in resources to to remain in control of all decision making, independent shipmanagers like Wallem in the cope, leaving very little margin left. Wallem claimed. TO
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August/September 2015 TANKEROperator 19 INDUSTRY - SHIPMANAGEMENT V. Group to keep momentum going Today, the V Group claims to be the world’s leading provider of maritime services to the commercial shipping industry and has become an increasingly important player in the energy sector.
anker Operator spoke with Matt Specifically related to tankers, V Ships “We have a superintendent near to our Dunlop, Director Marine manages 300 vessels (see table for tanker type vessels wherever they trade providing ongoing Operations for the group about breakdown). support,” he explained. “V Group’s integrated Tmanaging a portfolio of vessels Dunlop explained that the group has a software package links everyone ashore and and services in today’s market. global network of 18 shipmanagement offices, afloat in a transparent and real time manner, V Group delivers a wide range of marine located close to the clients and their clients, eg including the owners of the ships, the offices services, including technical management, charterers and oil majors. By setting up this and vessels. It controls everything from the seafarer management, technical support, system, V Ships can offer a bespoke service in vessel log and crew management to procurement and ship supply chain dedicated fleet cells, supported by back office provisioning, maintenance, cargo and financial management, including shipmanagement operations. accounting.” specialists - V Ships. Not all of the offices manage tankers, as this Dunlop said that V Group’s only assets are It employs 2,500 people in 60 locations requires a different type of capability and its people. “Our focus is to retain our worldwide and manages the recruitment of experience, as well as a good relationship with competent experienced shore and sea staff in around 38,000 seafarers. The group delivers the oil majors. V Ships has thus far set up order to build a team, which delivers ship and crew management services to a tanker operating centres in Singapore, ‘performance assured’. This reflects our diverse fleet of about 1,100 vessels, including Glasgow, Limassol, Dubai, Montreal, Chennai, passion and commitment for delivering the crude, products, chemical and gas carriers, Fort Lauderdale, Hamburg, Oslo, Nantes and best possible service and generating the plus many other types of vessels. Rio de Janeiro. highest possible return on assets 24 hours a
Source - V Ships.
20 TANKEROperator August/September 2015 SHIPMANAGEMENT day, 365 days per year. “Today’s role requires absolute focus on safety and compliance with the latest legislation and protection of the environment. We must understand the owner’s needs and priorities in a difficult trading environment. In today’s world, we see an increasing emphasis on transparency and the need 0-&*#2$052 : " +3 to operate under the highest ethical standards. This applies to any vessel type. 31'%+;%#--9 &'3+)/'& #/& 014+.+3'& “One of the biggest challenges is the development of the (02 -#2)' 4#/,'23! # %#22+'23 next generation seafarer and shipmanager, instilling traditional standards in a modern electronic world. V Group’s risk % -#2)' $5-,'2#02' %#22+'23 management, regulatory compliance and IT capabilities are key competitive differentiators in the industry supporting the team ashore and afloat,” he said. *' 0/-9 +/'4#/,! %%'14'& Training centres +/'609#)' #3 #/ Training is undertaken through a variety of methods. Dunlop $9 ! explained that today, the safety culture of the ship and shore " 3934'. operation drives safe tanker performance. With this in mind, V (02 -#2)' 3*+13 Group has four training centres delivering Crew Resource Management courses to the IMO Course Model 1.39 - Leadership and Teamwork standards. “This investment will 0 &+32514+0/ 40 1024 quadruple our throughput of CRM trained officers in 2015. #/& 4'2.+/#- 01'2#4+0/3 “We have our knowledge-based training course matrices, which support TMSA compliance to the highest levels of *+13 #22+6' 42'#4'& ' industry best practice; and we are excited about our new /0 2+3, 0( 2'')2074* liquid cargo training simulator, which has opened in our start- of-the-art training centre in Manila,” he said.
Dunlop continued by saying that this was a considerable 0 2+3, 0( &#.#)' 40 investment in the staff but the group doesn’t stop with training $#--#34 4#/, %0#4+/)3 ashore, as every tanker is attended annually for 10-14 days of on board training and independent safety inspections are =&'#- (02 /'7 $5+-& 02 2'420';4 ' carried out by Seatec Safety Services. “We do this to ensure a strong and healthy safety culture is embedded as part of our 0<'2+/) 3+)/+;%#/4 3#6+/)3 +/ %034 % 31#%' performance assurance to our clients and their stakeholders,” he explained. He also claimed that the group’s high standards for safety and corporate governance also makes it attractive to financial ! institutions. “We maintain a dialogue with all the major players in the market,” he explained. In recent years, the group has worked directly with banks to manage and dispose 0-&*#2$052 #2+/' +.+4'& of distressed assets. The group’s global reach was essential to "64$2153$1#$7(13$'0#7 them in some cases in order to respond to fluid situations in 144'0%&")3&'2$ !" different parts of the world. “We were also a safe pair of hands to take oversight of what were often challenging vessels.We maintain those '- . 012 relationships now and work to be recommended as a preferred #8 . 012 manager for mortgagees,” he said. .#+- 3#-'3%0-&*#2$052.#2+/'+%0. The more recent rise in private equity involvement in the market is something that Dunlop has identified and actively targeted as an area for growth. “These concerns are looking to 777+%0-&*#2$052.#2+/'+%0. grow and need a partner who can support those plans with adequate capacity and reliable service delivery,” he said.
Critical mass Down the years,critical mass coupled with a large portfolio of vessels was said to reap benefits when purchasing goods and services. Dunlop thought that this was still very important in bargaining power. However, it is not about volume but how you use that volume, he said. Proper planning of procurement
August/September 2015 TANKEROperator INDUSTRY - SHIPMANAGEMENT around key ports and ordering early where maintenance and repair. feasible, are essential. He said that systems Improved risk management. and processes were also fundamental to “ A key characteristic of successful asset (ship) executing this strategy properly. management is consistently making sound He explained that economies of scale can be decisions and good compromises. It involves seen in warehousing, distribution, connectivity carrying out appropriate tasks at the right time with primary suppliers and quality of supplies and at the optimum level of expenditure. and services, including responsiveness to any Successful management requires the issues, which is of equal importance as cost. commitment of top management and a With respect to crewing, the size of the motivated workforce. Constant monitoring is company’s pool of over 26,000 positions on required with the recording of appropriate board ship, allows it to absorb capacity asset information and management shocks, ie large numbers of vessels entering measurement activity,”Dunlop stressed. “This management, which those having smaller international standard relating to asset Matt Dunlop, V.Group, director marine networks would be unable to manage. management is the day job in V.Group!” operations. He said that going forward, understanding “If we can continue to focus and achieve the why shipowners and private investors above, third party shipmanagement does have the group’s clients when managing the vessel outsource is key to the future. These include - a future. Shipmanagement is a highly running costs. They can also ensure that the Increased access to global labour market, competitive, tight margin business but it is required quality standards are met. For especially technical specialists. also a relationship business, built on trust and example, the group has a large and rapidly Allows shipowners to concentrate on their transparency. growing crew victualing business - Oceanic core business. We will see greater consolidation amongst Catering - which not only ensures seafarers are Easier to benchmark operating costs. marine service providers as the economics of fed at very competitive rates per person per Increased purchasing power through running a small to medium-sized operation day, but also the huge investment in training economies of scale. become less attractive and the bar to entry is and systems, such as the new culinary centre More flexible asset investment options - raised,” he added. in Manila, means that the standard of food on easier to divest/invest. The group offers a wide range of marine board is improved and the crew are kept Easy access to specialty services, eg services, which is another way to add value to happy, as well as the owner. TO
22 TANKEROperator August/September 2015 INDUSTRY - COMMERCIAL OPERATIONS Boutique agency on global expansion programme News that Monaco-based agency and logistics concern Cambiaso & Risso International (CR) had opened new offices in Dubai on 1st July prompted Tanker Operator to look into the agency with the help of president and CEO Giovanni Paolo Risso.
R Shipping & Logistics has also service providers, thus providing opened an office in Fujairah in a tailor-made services to its co-operative venture with an clientele. COmani concern, which has a After the considerable growth license to undertake agency services in the achieved over the last 20 years, area. starting in November 2013, the Risso explained that this move was part of company doubled its presence in the company’s global expansion programme, the Far East by launching the which recently saw offices opened in both Hong Kong branch, following the Singapore and Hong Kong. strengthening of its Singapore He said that it was the company’s policy to office, which provides full port expand into areas, rather than go down the logistic services to vessels, acquisition trail, although there were several including cruise ships. For strategic joint venture agreements in place example, the Singapore branch worldwide. Further expansion plans are in the was started by just three people pipeline. but now boasts a staff of 15. Dubai joins Genoa, Singapore and Hong Tankers have formed a Kong as a hub for their respective areas. For significant part of the company’s example, the UAE office will market CR’s service offering since the 1960s services to Qatar, Oman, Bahrain, Saudi and 1970s. The company started a Arabia and Kuwait, plus India. tanker broking arm in Genoa, but At present the Group operates in all has since decided to concentrate Mediterranean ports, Singapore, Hong Kong on agency and port logistics. and has further expansion plans in Asia, Since the 1980s, CR has been Europe and the Americas. marketing its agency services to CR was founded in 1946 in Genoa by the traders, operators and charterers, current president’s father, but is now which have increasingly become headquartered in Monaco and has offices the tanker operator of today, rather CR’s president and CEO Giovanni Paolo Risso. throughout Italy, France, Spain, Slovenia, than the oil companies. Swiss- Panama, Singapore and Hong Kong and now based Vitol became one of CR’s Dubai. North Africa is also covered through first clients and is now a major user of the company started with chemical tankers some co-operative agreements. company’s services worldwide, having 40 plus years ago as Italy was and to a certain The agency currently handles more than become one of the world’s largest trading extent still is, a centre for chemical tanker 4,000 ship calls worldwide. Almost any port in houses. activity. the world can be served through the hubs or Risso explained that many employees are Full commercial management is offered, by the joint ventures, as more and more trained at a school in Genoa before being sent including the provision of vessel disbursement companies are demanding a worldwide agency out to work in CR’s various offices accounts, as CR operates an accounting agreement with just one provider. worldwide, including Singapore, Hong Kong department. Risso described the company as a “boutique and now Dubai. Next year, the family owned concern, ships agency/port logistics concern” rather Today, CR handles all types of tankers from started by Giovanni’s father, will celebrate is than a conglomerate similar to the larger gas, fuel oil, through to crude oil carriers. The 70th anniversary. TO
August/September 2015 TANKEROperator 23 INDUSTRY - COMMERCIAL OPERATIONS New name for established Kenyan service One of East Africa’s oldest ship supplier companies has changed its name to emphasise its growing ability to supply anything that a ship may require.
We have added ‘All Supply’ to our diving and cleaning, original name ‘Mombasa Ship forwarding and Chandlers Ltd’ because we always customs clearance, and “manage to find exactly what is needed any medical or – whether it is pre-ordered or an emergency chauffeuring services supply,” explained All Supply Mombasa Ship needed. Chandlers’ managing director, Mohammed “We are the local Muses. agent for Merichem The company is a second generation family Merigases and we are business headquartered in Mombasa, Kenya, able to offer refilling which has been a member of the International services for all required Ship Suppliers and Services Association gases in under 24 (ISSA) for many years and is claimed to be hours. In addition, we the only dedicated ship supplier in Kenya with also have a stock of the ISSA quality mark. exchangeable cylinders The company sources foodstuffs both which we can offer for locally and abroad to ensure quality and highly more urgent orders,” competitive prices. It works closely with a said Muses. Some of the employees with Mohammed Muses on the far left. strategic partner in the Nairobi fruit and The company has vegetable market to be able to guarantee the also built a strong reputation in the petroleum queuing up to berth at the two discharge highest quality fresh produce, processed and and lubricants sector enabling it to supply a terminals. packed in strict hygiene conditions, and it wide variety of these products very quickly. He said that he was optimistic that in the imports a wide range of internationally- future, Kenya will hopefully be exporting recognised dry goods brands. Clearing & forwarding more. Also Uganda is the biggest transit “This ensures we can cater for the food The company supplies all deck, engine, market for Mombasa representing 77% of the requirements of everyone, including all the electrical and fire and safety items that are transit market and with large oil reserves being ethnic groups, on board all of the international required and has an international supplier base exploited, the Ugandans will be relying on ships calling in East African ports,” said for products that are not available locally. This Kenyan ports, as a transit point for either Muses. “Our range is the most extensive in the is backed up by an in-house clearing and crude or refined petroleum product exports. region and our facilities include a storage area forwarding department, which ensures that all Unfortunately, despite the fact that for 300 tonnes of temperature controlled and shipments, including urgent deliveries, arrive Mombasa is improving and is today more 100 tonnes of ambient goods just a kilometre at the vessels in time. efficient than neighbouring ports, the nature of away from the port of Mombasa.” “We have always had a reputation for operations will not allow vessels to call just All Supply Mombasa Shipchandlers can quality service and highest business ethics, for stores, crew changes, etc. also handle everything from chemicals, gases and now our name also reflects the extensive “As with all our segments we provide value and fire and other safety items to any spare or range of services and supplies we can offer,” for Money (vfm). However, particularly for replacement deck and engine parts, which a said Muses. the tanker segment, as there is a long wait ship may require. He told Tanker Operator that Mombasa has outside for a berth, we initiated outer port It is a key contact for vessels and shipping two oil terminals serving about 200 tankers limits (opm) supply by boats. On several agents for the supply of navigational annually, In 2014, the port handled 7,192,000 occasions we have quickly been able to requirements, especially from the British tonnes of bulk liquids representing 11% of the respond to urgent provisioning made possible Admiralty Catalogue. total vessels calling at Mombasa. by holding over 500 stock items in our Its team of 40 will also organise any other Muses said that the tanker market was not a wharehouse specifically for this scenarios,” service requested including pest control, a big one, but an important one. Tankers are Muses explained. TO
24 TANKEROperator August/September 2015 WHEREVER SUBS ARE LIFTED...
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USA +1 203 413 2030 | UK +44 20 3773 5035 | Singapore +65 (66) 22 5324 | [email protected] | www.Q88.com | A Q88 Solution INDUSTRY - ANTI-PIRACY Tankers, terrorists and the cyber lords The shipping industry is facing attack from three fronts, according to ESC Global Security.
he $8.4 bill expansion project to attack on a ship transiting Suez and the mitigate these new threats,” he warned. double daily ship transit capacity is reported detention in June this year of 13 Rahumägi is concerned that the reduced an obvious commercial boon for Muslim Brotherhood members suspected of threat of Somali piracy has resulted in the Tthe tanker segment, but navigating planting explosives near the canal, which perception that maritime security is no longer the new Suez Canal when it officially opens Rahumägi claimed was incorrect, Suez a priority, but in reality nothing can be further this month, combined with the threat of remains an attraction to extremists bent on from the truth. terrorism and the ongoing migrant crisis in the disrupting western economies. Security of one “The migrant crisis in the Mediterranean is Mediterranean, will result in the need to of the world’s most important oil trade routes a concern, as it is being used to smuggle increase maritime security. is imperative. terrorists into Europe. With thousands crossing ESC Global Security president Jaanus “New threats in the Middle East and the the Mediterranean from Africa and the Middle Rahumägi, who is working with the Egyptian Mediterranean need new resources, new Best East each month, the abolition of Europe’s authorities and the Challenge Consortium (the Management Practices and more co-operation. internal frontiers will make it easier for party responsible for the New Suez Canal Nation states do not have the resources terrorists to move across Europe undetected,” dredging and construction works) to mitigate available to deal with these new threats on he said. security risks and secure the canal, said the their own and relying purely on military According to newspaper reports, there are industry must be aware of and prepared for a intervention is expensive. Government thought to be about a million migrants looking terrorist led incident - “nothing is impossible.” agencies, the military and the private sector to enter Europe across the Mediterranean from Referring to the 2013 terror group RPG must co-operate and work in concert to North Africa. International Chamber of
Facing attack on three fronts.
26 TANKEROperator August/September 2015 INDUSTRY - ANTI-PIRACY
Shipping (ICS) secretary general Peter The IMO is also developing ICT system Hinchliffe has already indicated that it is likely optimisation guidelines to address the that almost half a million displaced people will burgeoning cyber security issue the shipping need to be rescued at sea this year alone. industry faces. Yet whilst the merchant shipping industry At the IMO Maritime Safety Committee’s has managed to rescue about 10%, the 94th session, held in November, proposals to increasing number of migrants is expected to develop voluntary guidelines on cyber security see at least six merchant ships per day called practices were under consideration but upon to rescue seaborne refugees, which will shipping associations BIMCO, ICS, Intercargo certainly have a bearing on commercial and Intertanko have since called for more operations. urgent action. “If we are to mitigate the security risks In joint release issued in April, the associated with this humanitarian crisis and associations stated: “Protection against deal with a potential increase in terrorist malicious attacks on computer based systems activity in Europe, Brussels, maritime on board ships is now hitting the top of the administrations and the security services must agenda for shipping organisations in all work in concert,” Rahumägi said. corners of the world.” His comments coincided with a joint ESC’s Rahumägi concurred. “In the modern statement issued by the IMO and the world, most systems and data operate digitally,
International Organisation for Migration in the ‘cloud’. So hacking into a vessel or ESC president Jaanus Rahumägi. (IOM). IMO secretary general Koji Sekimizu shipping company’s communications systems and IOM director general William Swing could, in a worst case scenario, result in ships being redirected. Ship and cargo hijacking is a agreed to establish an inter-agency platform to losing their ability to navigate. Critical possibility. create an information sharing and systems could be prevented from functioning, “At the very least cyber-crime can result in communication system for sea migration resulting in collision, pollution and ship delays, changes to manifests and data incidents in the Mediterranean. environmental damage, and possibly the ship loss, but if networks are destroyed, ships will
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August/September 2015 TANKEROperator 27 INDUSTRY - ANTI-PIRACY not be able to connect to shore-based offices still not adopting basic best practices like Rahumägi said that the conservative nature and vice versa, halting a company’s entire ship blocking executable files and screensaver of the maritime industry is placing it at operations. Cyber defence is the most email attachments. This puts not only the significant risk. He urged shipping companies important aspect of maritime security today,” company, but also their business partners, at to embark on cultural change in order to make he said. higher risk,” stated Symantec in the report. shore-based staff and ships’ crew more aware In its ISTR 20 Internet Security Threat “Cyber-attackers are leapfrogging defences in of ICT security so they can adopt security best Report, published in April 2015, anti-virus ways companies lack insight to anticipate.” practice. specialist Symantec said that the techniques Symantec said that no company is immune, “Shipping is a very conservative and doesn’t hackers are now using are so advanced that citing a 40% increase in spear-phishing attacks think too much about cyber-security but we companies are struggling to keep up. in 2014 compared to the previous year, while need to address this culture and all Symantec reported that targeted spear- non-targeted attacks, which continue to make departments must co-operate and communicate phishing attacks increased in 2014 as attackers up the majority of malware, increased by 26%. more effectively with one another, especially perfected techniques to make these more As Joseph Carson, ESC Global Security’s the IT and operations departments. selective by infecting legitimate websites, head of cyber security, said at the QuBit 2015 “The cyber-criminal is invisible, the virus monitoring site visitors and targeting only conference on cyber security: “Cybercrime is microscopic. But there is not enough co- those companies they wanted to attack. no longer a hobby, it is one of the biggest operation between the different departments to The anti-virus software provider said that businesses in the world. But the biggest risk is provide even the most basic protection. companies were finding it inordinately from human operators not understanding how Internal internet procedures and protocols lag difficult to defend themselves against to deal with or identify a possible security far behind the pace of malware and botnet ‘Trojanised’ software updates, which hides breach.” development. But a lot of issues can be malware inside software updates waiting for According to Carson, 70% of all cyber averted be securing networks with frequent unsuspecting operators to download and install attacks result from the manual sharing of password changes and patches. These are them, ostensibly infecting themselves. social media scams or staff opening phishing simple solutions. It is possible to build up “Most susceptible are those small- and emails and attachments; yet 90% of all these more advanced system protection but the first medium-sized organisations that have fewer threats could have been prevented with step really is to establish a company-wide resources to invest in security, and many are software patches and fixes. cyber security culture,” he stressed. TO Delivveering success, together Success is infectious. In the three years since its launch, NAAVVTOR’s ENC service has become a true &0$2%00 5#2" ((440 ( 2" (05!#' A2 1310##'! 2( )0(32 2"2 #1 1#&)% 2( 31 3)2' &'! 0 #2 2( )0((44##'! #''(42#4 1(%32#('1 2"2 )0(4# %0 310 '@211 &('1202 6 (30 26) ))0((44 86 (1 ((3 #%9 104# 7 2" &0$291 @012 65(0$#'! 5#2" (30 312(&01 5 ' &2 2"#0 #'#4#3% '1 ' ('12'2%6 0@' our unique e-navigation solutions: reducing navigator workload, enhancing safetyy,, '#'01#'! B#'6 (0 1"#) &'!01 (5'01 ' ()02(01 5(0%5# 5(0$ 2(!2"0 2( &$$ 406 4((66! 2200 "6 '(2 !2 (' (0 2 555'42(00(&
28 TANKEROperator August/September 2015 TECHNOLOGY - CLASSIFICATION SOCIETIES IACS - Changes at the helm Christopher Wiernicki, ABS chairman, president and CEO, assumed the role of IACS Chairman at the end of the 71st session of the IACS Council in Paris on 2nd July, 2015, replacing BV’s Philippe Donche-Gay who had served his 12 month term in the chair.
ommenting on his predecessor's contribution, Wiernicki said: "IACS, and the industry at large, Cwill continue to reap the rewards of Philippe's leadership." In response, Donche-Gay thanked fellow members for their support during his time in office. "Over the past year the support of my peers has allowed IACS to deliver, on time, a number of challenging and far-reaching commitments including the final implementation of revised Common Structural Rules, important new Unified Requirements pertaining to Container Ship safety, the revision of the existing Unified Requirement on Complex On Board Systems and progress IACS new secretary general - Robert with the development of LNG Bunkering Christopher Wiernicki is the new IACS Ashdown. Guidelines," he said. chairman. The Council meeting also marked the Hodgson's long-standing commitment to the ensuring the secretariat has evolved to meet the retirement of Derek Hodgson as IACS organisation. "Derek's professionalism over the ongoing needs of its members during a permanent secretary. Donche-Gay praised past six years has been fundamental in formative period in IACS history," he said.
New position Replacing Hodgson, Robert Ashdown was appointed to the newly created position of secretary general. Looking forward, Ashdown said: "IACS has a formidable reputation as an expert technical advisory body to the maritime industry and its regulators and plays an integral role in maintaining and advancing the safety and environmental performance of international shipping. I look forward to working with all stakeholders so that IACS continues to deliver its objectives in a positive and collaborative manner." IACS was to release a document outlining its updated strategic focus just after Tanker
Operator went to press. TO
August/September 2015 TANKEROperator 29 TECHNOLOGY - CLASSIFICATION SOCIETIES Optimising asset performance Cost reduction and control, optimising efficiency, improving environmental performance, safety and operational reliability of hull and machinery, asset decommissioning - these are among the most pressing concerns for owners and operators of ships and offshore units today.* ome but not all of these issues are decades. It will be necessary to address the also subject to regulation, which is traditional silos of information – not to having a profound effect on the mention a culture of commercial Sindustry. The regulatory landscape confidentiality that discourages transparency. is complex in view of the number of The challenges extend from owners to their increasingly demanding regulations, crews, their suppliers and customers, compounded by the introduction of regional charterers and financiers. In terms of requirements, for example monitoring, newbuilding strategies, it can mean working reporting and verification (MRV) in the EU more closely with shipyards to increase the and ballast water management in the US. focus on overall efficiency and performance Some rules have uncertainty around entry rather than simply price or schedule. into force and compliance dates; most notably Integrating equipment and software systems the global sulphur cap that will follow the would be part of this process. ABS’ Jan de Kat. review of fuel availability in 2018, either in The enablers of the ‘holistic’ approach 2020 or 2025; the EU has decided to make a comprise data collection and analysis global cap mandatory in its waters as of 2020. techniques, IT systems, sensor technologies, owners with a competitive advantage from a Further down the pipeline are likely to be simulation methods and system diagnostics compliance perspective and will support new rules addressing underwater noise, that address factors, such as fuel efficiency, operational and long term business planning biofouling, CO2 and black carbon emissions. emissions control, hull performance and strategies. They require significant investments to machinery condition. ABS provides integrated tools and services comply, hampered in certain cases by to shipowners and operators through its immature technology solutions. In the case of Big Data dedicated Asset Performance Management the Ballast Water Management Convention the While some of these are new, others have been Group. This specialist resource includes three delay in ratification has not stopped some available in one form or another for some teams: Operational and Environmental owners from proceeding with installations but years. The difference now is that they can be Performance, Asset Integrity Management and many others have not, meaning they have not brought together by better connectivity. With Nautical Systems fleet management solutions. yet begun to address the costs of compliance. the advent of ‘Big Data’ there is a clear need The group enables the key elements of One thing that can be predicted with some for the ability to compress the results into regulatory compliance and asset optimisation certainty is that both existing and future actionable information for decision support to be tied closely together, from daily regulations call for more complex technologies purposes. operational considerations to lifecycle to achieve compliance – and hence the need In addition to a new approach to technology, decisions and software capable of generating for more and better data and a further increase equally important is a shift away from the data that feed back into vessel design and on of the demands to be made on crew and mindset that views this process as primarily board operations. shipmanagers. about driving down operating costs to the From the perspective of the asset owner, Addressing these challenges will inevitably lowest possible level. compliance is a fact of life, but it is one that require new approaches. Typically, we tend to Instead, owners might take a broader view should be seen in a broader perspective. The consider the elements of efficiency, and consider how with the application of these challenge of optimising asset performance is a performance, safety, compliance and technologies, their assets and fleet operations choice between seeking simple, short-term maintenance in isolation, but ABS believes the could be configured to generate the highest cost savings or taking a lifecycle approach that industry has entered an era where theory, potential earnings over a lifecycle and best maximises operating potential, reduces practical experience and technology allow us retain their value, while at the same time maintenance costs and may have a positive to take a more holistic approach to best promoting safety and preservation of the bearing on asset value. TO manage the performance of ships and offshore environment. unit assets. ABS believes that addressing operational *This article was written by Jan de Kat, ABS Granted, moving beyond the typically performance holistically in terms of efficiency, Director of Energy Efficiency and Vessel fragmented marine industry is a challenge to safety, hull and machinery condition and Performance, Operational and Environmental ways of working that have been in place for environmental requirements, will award Performance.
30 TANKEROperator August/September 2015 TECHNOLOGY - CLASSIFICATION SOCIETIES RS rules recommended as compliant with IMO In July 2015, Russian Maritime Register of Shipping (RS) received the final report of Goal-Based Standards (GBS) verification audit, which contained the recommendation to IMO to confirm the compliance of its rules with IMO’s GBS.
ccording to the SOLAS Chapter service life subject to proper operation and recognised organisations (ROs) by those states II-1 Regulation 3-10, oil tankers maintenance. are subject to audit by IMO for compliance and bulk carriers above 150 m in GBS are a set of functional requirements for with the functional requirements of GBS. Alength and contracted for each stage of the ship’s life cycle starting from To verify compliance with the requirements, construction on or after 1st July, 2016 are to its design through to safe recycling. IMO established international audit teams and be designed and constructed in accordance The national requirements of IMO member the interested parties were asked to submit sets with the so-called IMO GBS so that they are states for the design and construction of these of required documents to the IMO secretariat safe and environmentally friendly during their ship types, as well as the requirements of for audit. This work had to be completed in
RS has classed a number of Ice Class tankers for Arctic operations.
August/September 2015 TANKEROperator 31 TECHNOLOGY - CLASSIFICATION SOCIETIES advance so that IMO could confirm There have been hundreds of ice class vessels should be reasonably balanced in many key compliance of national requirements and and designated icebreakers designed according aspects, RS said. classification societies’ rules in May 2016, to the RS rules, with hull structure adequately A series of Arc7 LNGCs to be delivered by during the regular session of the IMO strengthened and propulsion power increased. Daewoo under Yamal LNG project will soon Maritime Safety Committee (MSC). A classification system of specific ice be the largest vessels in the Russian Arctic In 2012-2013,RS continuously updated and grades was set up to reflect/distinguish the ice service. Through joint Daewoo/RS improved its documents to bring them in line conditions to be encountered in various engineering efforts, a number of unique design with the functional requirements of the GBS in operational areas, based on regular R&D solutions were customised for the giant vessels order to subsequently submit them to IMO for taking into account practical experience gained to safely operate in ice up to 2 m thick. audit before the end of 2013. through several decades. Another remarkable project is about to go As a result, the RS application for GBS Nowadays, as long as some new oil and gas ahead, an ice class Arc4 FSRU ordered from verification audit was sent to the IMO fields and terminals are under development in Hyundai. This unit is intended to operate secretariat on 18th December, 2013 together the ice-infested areas, the customers will primarily in the Kaliningrad region in the with required supporting letter from the obviously demand ice class for a variety of eastern Baltic Sea. Ministry of Transport of the Russian vessels, from OSVs to large oil and gas “We are delighted to be involved in such Federation. tankers. ambitious projects and look forward to co- The satisfactory outcome of the GBS However, since 1960s most of the vessels operating with all the parties concerned by verification audit carried out in April- operating in heavy ice have been of medium effectively contributing the ice-tech expert December, 2014 was as a result of major size. The construction of larger commercial knowledge to development of the new efforts by RS experts aiming at bringing its vessels for Arctic operations commenced some innovative designs,” said Sergey Kaganov, RS rules in compliance with GBS and its 10 years ago with a series of 70,000 dwt Arc6 project support and marketing. “Growing submission to IMO and also a result of shuttle tankers, which resulted in the need for demand for large ice class vessels is now a efficient rules development procedures within updating the ice class requirements in order to fact, and considering Arctic shipping is of RS, which allowed it to maintain the quality of cope with new design challenges surfacing. great potential, we have to thoroughly learn rules up-to-date, the class society claimed. Six new 42,000 dwt Arctic shuttle tankers from the current projects in order to get the are currently under construction at Samsung sound regulatory framework and practice Ice class expertise for a Russian client. The vessels will be built ready for new endeavours in the future ice- RS has classed a number of vessels intended to comply with both IACS CSR and ice class going tankers.” to operate in the high north environment. Arc7 structural requirements, so their design TO
C 8, Dvortsovaya Naberezhnaya, St. Petersburg, Russian Federation, 191186 % " tel: +7 812 380 2072 fax: +7 812 314 1087 $+ #" " " [email protected] www.rs-class.org !
32 TANKEROperator August/September 2015 TECHNOLOGY - CLASSIFICATION SOCIETIES A major flag state’s take on class The degree and frequency of ship inspections has never been more onerous in the industry than it is today.*
his helps to keep the shipping oversight and enforcement. industry safe, and it is the job of good ship registries to help ensure Recognised Tthat ships are not detained for organisations reasons, which are not beyond their control. It is also pertinent to ask how Shipping relies heavily on the technical many commercially focused island competence and experience of the and micro-state flags would still classification societies, and on the strength and be in operation today if they could global outreach of IACS. But today’s shipping no longer appoint class as industry, with its exhaustive regulatory Recognised Organisations (ROs). requirements, requires more than class alone Equally, it is fair to ask why so can provide. many ROs accept appointments Modern ship safety and efficiency should be from unqualified states. a joint effort between class and other quality Liberia recognises the marine service providers, including ship fundamental importance of class registries. to a safe and efficient shipping Class has proven itself essential to efficient industry. As such, it supports all regulatory supervision in the shipping measures to ensure that class itself industry. It has helped improve construction is operating at the highest levels standards and to introduce a degree of possible. Indeed, part of Liberia’s standardisation into regulatory enforcement. mandatory criteria for But class cannot do it all. Moreover, class authorisation of a classification should be more discriminating when it comes society is full membership of to accepting delegations of authority, just as IACS. But Liberia is not content those conferring delegation should look first to to leave the entire job of their own resources or those of other proven regulatory oversight to the LISCR’s Scott Bergeron. service providers. classification societies. There are other reasons why shipping The most recent mandatory MLC cannot live by class alone, not least the shift in Annual Report issued by the regulatory development towards areas Liberian Registry confirms that, for the But Liberia is also committed to working involving the human element. Examples reporting period of 20th August, 2013 to 31st with others who display a like-minded include the ISM code, ISPS and, most December, 2013, Liberia’s own inspectors approach and philosophy towards the safety of recently, MLC. For all its strengths and carried out 54% of all MLC inspections on life and property at sea. Where appropriate, it qualities, class is not always best equipped to board Liberian-flag ships. Moreover, a total of will delegate authority to ROs it knows and focus on what might be termed the ‘soft’ 85% of these inspections resulted in no trusts. elements of the industry. Look at oily water deficiencies being found. Liberia sees itself as a link in a chain of separator violations, for example. And it is a regulatory oversight designed to keep shipping fact that many class societies refuse to work Proactive approach safe. The other important link in that chain is with crew complaint and crew welfare matters. The Liberian Registry adopts a proactive class, and it is important that neither snaps, Flag states, for their part, have to improve approach to the service which it provides to whether through neglect, inefficiency, their technical competence and accept their the record numbers of ships which fly the indifference or mere failure to spread the TO responsibilities rather than simply authorise Liberian flag. This involves using its own load evenly. complete delegation of authority. The worst highly trained staff to carry out audits, cases of abdication of authority in recent years inspections and certification wherever *This article was based on comments by Scott include some large flags whose possible. Additionally, it has pioneered the use Bergeron, CEO, Liberian International Ship & administrations have effectively relinquished of harmonised audits to make the process less Corporate Registry (LISCR), the US-based responsibility for regulatory implementation, disruptive for owners and managers. manager of the Liberian Registry.
August/September 2015 TANKEROperator 33 TECHNOLOGY - CLASSIFICATION SOCIETIES LR’s tanker success Lloyd’s Register (LR) has been awarded class of several tankers recently.
he three Arc7 shuttle tankers being including, for example, built at Samsung for Sovcomflot appropriate extents of stern (see page 32) will be the first shoulder ice strengthening, best Tnewbuilds to comply with LR’s practices for navigation bridge provisional rules for the classification of stern- watch layout and visibility and first ice class ships. consistent interpretations of The 42,000 dwt tankers, which are dual international regulations when classed to LR and the Russian Register, will operating stern-first in ice. be purpose-built for year-round shuttle Delivery of the first shuttle operations exporting oil from the tanker is due in the third Novoportovskoye oilfield in northern Russia quarter of 2016. The LR/RS classed 42,000 dwt DAT shuttle tanker. via Ob Bay in Russia’s Polar area. Their design is notable for having a wide NORDEN fleet the entry of Handysize product tanker Nord beam, shallow draught configuration with In addition, LR recently announced that it had Mermaid. twin-podded propulsion units and a bow- won the contract to class NORDEN’s entire LR’s Copenhagen based marine client loading system for offshore loading in Ob fleet of drybulk carrier and tankers. manager, Flemming Kjeldsen, commented: Bay’s shallow waters. Thirty-two ships will be transferred to LR “Our good working relationship with the client Compliance with the requirements of the Class, as part of the agreement that covers 57 and the in-house capabilities we have here in Russian Northern Sea Route Administration ships. Copenhagen to consistently support them was (NSRA) will specify that the vessels will have The 32 ships covered by the agreement will essential in securing the contract. Classing sufficient ice strength for the likely be transfer of class (ToC) vessels and will ships like bulkers and tankers and providing environmental conditions the ships will include nine new ships, which will transfer to day-in, day-out service delivery is our key encounter in year-round operations in Ob Bay LR upon their delivery. Four ships are activity. We are here to help make sure and the Kara and Barents seas. currently classed by LR and 16 externally NORDEN ships can trade as safely and Compliance with LR’s provisional rules’ managed ships will also be transferred to LR efficiently as possible, taking every care to requirements will ensure the ships reflect best as part of this agreement. support them in their business goals.” TO practice for stern-first operation in ice The ToC of NORDEN’s fleet started with
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34 TANKEROperator August/September 2015 TECHNOLOGY - CLASSIFICATION SOCIETIES Vetting compliance support offered Successful SIRE vetting performance is seen as a ticket to trade for tanker operators.*
ogether with a few owner clients, inconsistencies compared with these DNV GL will deliver this service from DNV GL has developed vetting requirements, which may result in Shanghai, Singapore, Fujairah, Rotterdam and compliance services for both observations, technical hold and costly Houston in the early phase of implementation. Tnewbuilds and ships in operation. modifications – a nightmare scenario for most Further stations may be included later. The objective of this initiative is to use tanker operators. The duration of the visit will be agreed- DNV GL’s extensive experience of verification Providing a third-party verification service normally one day- and the specially trained services and compliance support for class and to ensure compliance is one of DNV GL’s DNV GL surveyor will perform an statutory matters, including PSC compliance, main activities and therefore, the class society audit/inspection where the scope of work is and to offer the same support to ensure has launched a service addressing compliance the SIRE VIQ 6, but with a focus on the areas compliance with charterers’ requirements. with the SIRE VIQ and ExxonMobil’s of this extensive checklist already agreed. The tanker industry has seen a significant MESQAC standards. On board session will normally be a improvement in compliance performance over The service includes drawing examination combination of inspection, training and the past few decades and the introduction of where experienced approval engineers check coaching in how to ensure compliance in day- the charterers’ vetting schemes has been an the drawings for compliance. The next step is to-day operations and how to demonstrate important contributing factor. verification at the shipyard by DNV GL’s competent handling of shipboard equipment But there are also concerns that severe project manager to ensure that the ship is built and focus on continuous improvements rather accidents, such as explosions, groundings and according to the specific requirements in these than a pre-vetting clean-up exercise. collisions, still happen despite positive standards. Upon completion, a statement of Key to its success is to not only identify developments in the industry with a decreasing compliance is issued defining the scope of the observations but also explore what needs to be trend in vetting observations. Hence, a clean verification and enclosing a checklist done to prevent these from happening again. vetting inspection report is not always enough specifying. In this, the surveyor’s/auditor’s broad to be accepted by the charterer if the This will reduce the risk of observations, experience from different ships can come in company’s general performance is not due to non-compliance with regard to the useful for providing input regarding best satisfactory. equipment and arrangement, relieve an practice. Other concerns have been raised related to owner’s newbuilding team of a significant job This can be done together with the the increased inspection burden on the crew, and give credible documentation of company’s own shipboard audit or in addition due to the numerous inspections that a tanker compliance when securing the first cargo. This to the audit. DNV GL recommended that this is subject to – such as port state, terminal, service is being offered to ships built to is undertaken well in advance of a planned vetting and class inspections, and that more DNV GL class. vetting inspection so as to enable the inspections will not improve quality or safety. implementation of corrective and preventive The development of our vetting compliance Ships in operation measures. services is an initiative intended not only to A vetting compliance project will normally After the visit on board, the surveyor will help our customers stay out of trouble but also start with high-level discussions with top prepare an extensive report on the to support continuous improvements so as to management to identify key focus areas where observations with reference to relevant SIRE ensure compliant day-to-day operations. an improved compliance level is being sought. VIQ codes, but equally important there will be DNV GL will bring into the discussion an a de-briefing telephone conference where the Newbuilding support service analysis of the fleet’s class and statutory on board observations will be shared with the The OCIMF’s SIRE VIQ contains defined, performance based on its surveyors’ and company. specific, prescriptive requirements for auditors’ findings, together with the fleet’s The findings gathered in the service will be equipment and arrangements, such as the PSC performance during the past few years. entered into a centralised database. The plan is cargo manifold layout and arrangements, Through dialogue, DNV GL and its to provide benchmarking and performance towing and mooring arrangements, etc, going customers will ‘compare notes’ and agree on analysis for vetting-related findings. TO beyond the technical requirements in class where the challenges are in the customer’s rules and regulatory requirements. In addition, shipboard operations (technical equipment *This article was taken from DNV GL’s other charterers also have their specialties. failure, operational issues, record keeping, magazine ‘Tanker Update’ published earlier ExxonMobil’s MESQAC is the other main etc). It will be agreed which ships need this year. It was written by Håkon Skaret, standard for tankers. focusing upon and a dialogue with the Senior Principal Engineer; Erik Istad, Vetting inspections have revealed that a nominated surveyor/auditor will be Engineer and Richard Tao, Discipline Leader number of ships delivered from yards have established. – Technical Operation.
August/September 2015 TANKEROperator 35 TECHNOLOGY - EFFICIENCY - FUELS & LUBES Keeping the ships operational ExxonMobil has expanded its range of specialist fuels for use within ECAs with the introduction of Premium Advanced Fuel Marine ECA 200 (AFME 200). remium AFME 200 has joined Throughout 2015, ExxonMobil will continue stability to check if a fuel will deposit sludge. ExxonMobil Premium HDME 50 to expand its ECA compliant fuels offer, the These sediment evaluations are available from as part of a new category of marine company said. reputable fuel testing laboratories. Pfuel that has emerged as a result of Launched before Premium AFME 200, For compatibility, a good on board method the 2015 ECA sulphur limit of 0.1%. These ExxonMobil’s Premium Heavy Distillate to measure marine fuels, including residual low sulphur fuels help engineers safely and Marine ECA 50 (HDME 50) offers and distillate fuels, is the ASTM D4740 spot efficiently operate their main and auxiliary performance benefits associated with both test. A drop of the sample blend is put on a test engines and boilers, the company claimed. marine gas oil (MGO) and heavy fuel oil paper and heated to 100 deg C. After one hour ExxonMobil’s Premium AFME 200 is an (HFO). the paper is checked and the resultant spot advanced fuel oil formulated using a The fuel contains a low sulphur content rated against a compatibility chart, which proprietary refining process that removes associated with MGO, and has the higher provides a visual reference of the likelihood of sulphur, metals and other contaminants. Its flashpoint and lower volatility properties sludge format. viscosity is comparable to heavy fuel oils typically found in HFO. One of the test fuels must be a residual fuel (HFO) enabling similar storage and handling The higher viscosity of Premium HDME 50 otherwise there will be negligible asphaltenes practices for both fuels on board vessels. makes storage and handling the fuel on board to precipitate. Spot tests do not work for Both fuels require preheating, therefore similar to HFO. comingled distillates due to their low reducing the risk of thermal shock to engine Prior to its introduction, the new fuel was asphaltene content. In addition, compatibility components during switch overs to comply tested with a leading vessel operator and was tests can produce false positives for distillate with the ECA sulphur cap. Thermal shock may proved to be suitable for use in main and blends, due to pigment separation. For the result in fuel pump seizures and engine shut auxiliary engines and marine boilers. same reason, spot tests are not applicable for downs and has the potential to occur when Following the successful field trials, the new distillate tests with Premium HDME 50. switching from heated HFO to marine gas oil fuel received ‘No Objection Letters’ from There are a number of precautionary (MGO) at ambient temperatures. MAN Diesel & Turbo (MDT) for use in MAN measures that can be taken to guard against “Although MGO was readily available for B&W 2-stroke and MAN B&W Holeby fuel compatibility issues. These include: operators to comply with the 2015 sulphur cap, gensets, provided MDT’s specific engine type - Avoid mixing bunker fuels from different new fuels made available in the market by guidelines are followed. sources wherever possible. leading oil and gas companies have raised the Premium HDME 50 is already used by a - Store fuels separately until compatibility bar in terms of both safety and performance range of vessel operators. It is available from testing has been carried out. benefits,” said Rob Drysdale, global field Antwerp via barge delivery for vessels - Do not mix straight-run fuel oil [the engineering and logistics manager, operating in the Amsterdam, Rotterdam and product of atmospheric or vacuum distillation] ExxonMobil Marine Fuels and Lubricants. Antwerp (ARA) range. with a cracked [additionally processed] one – “ExxonMobil Premium AFME 200 and other if not possible keep the ratio to a minimum. new ECA fuels have a higher viscosity and Guidelines - Steer clear of mixing fuels with greatly flashpoint than MGO, helping shipping ExxonMobil claimed to be the first fuel dissimilar densities. companies to undertake their day-to-day provider to market specialist ECA compliant - Where possible choose fuels with similar operations in a safe and efficient way.” fuels and has issued guidelines to owners and viscosities and densities. Extensive fuel compatibility and stability operators on fuel stability and compatibility. - Do not mix a fuel oil with a marine diesel tests were undertaken during the development Fuel Stability - Bulk fuel stored for long oil or marine gas oil. of Premium AFME 200, including the ISO periods can become unstable, causing the However, the only way to fully ensure 10307-2 sediment test. The results indicated formation of sludge that can block filters and against fuel compatibility issues is to carry out that the new fuel oil is fully compatible with pipes and leave tanks with a residue, which a compatibility test – either on board during Premium HDME 50 and MGO. cannot be pumped out. bunkering or via an independent laboratory, Premium AFME 200 is available from the Fuel Compatibility - Industry best practice ExxonMobil warned. UK port of Southampton via barge delivery as is to avoid mixing fuels from different sources, At a presentation at Nor-Shipping, it is produced from Exxon’s refinery at as arbitrary comingling can lead to a loss of ExxonMobil’s Iain White said that MGO was Fawley. ExxonMobil now supplies ECA stability in the resultant blend, triggering the the choice for owners and operators by compliant fuel at more than 40 ports sludge formation. default. Gasoil systems were already in use, worldwide. There is a range of hot filtration tests for but this type of fuel can only be pumped from
36 TANKEROperator August/September 2015 TECHNOLOGY - EFFICIENCY - FUELS & LUBES
Turbo and Wärtsilä. increasing corporate social responsibility, we In December, the new lubeoil was made are seeing a marked increase in the number of available in more than 300 ports spanning 22 quotes for seawater lubricated systems from countries. owners of merchant and offshore tonnage.” If an engineer does not switch the lubeoil in The orders are for a variety of vessel types line with the fuel when entering an ECA, and include a 12,800 dwt bitumen tanker cylinder deposits can accumulate in a few contracted at Qingshan. days, the company explained. Prior to entering “We are seeing more and more Chinese an ECA, an engineer on board needs to decide shipyards specifying the COMAPAC system in which cylinder oil to use, when to change the their standard designs now. Unlike the oil- oil and what feed rate to use. lubricated variety, a seawater-lubricated Shell recommends that an owner/operator propeller shaft does not require an aft seal makes an analysis after sampling the oil as making it quicker and less complicated to there could be a huge amount of data available install,” said Carter. to generate much needed feedback. On 19th December, 2018, the VGP is to be The company has also developed a special reviewed and Thordon Bearings is grade for use in the US, due to the recommending seawater lubricated systems, Thordon Bearings director Craig Carter. Environmental Protection Agency’s rule on which are also ideal for vessels operating in environmentally acceptable lubricants (EAL)- Polar waters, due to impending legislation. the General Vessel Permit (VGP). Between 2009 and 2011, all five of a barge at up to 150 tonnes per hour. Shell warned that any vessel changing over ConocoPhillips 141,000 dwt Polar class He reiterated that there were challenges to an EAL to get a VGP will have to be tankers were retrofitted with Thordon’s when switching fuels as this is a new task for drydocked to change the sealing system. seawater lubricated systems during their marine engineers. Viscosity and volatility are respective drydockings. areas of safety to be considered when using Seawater lubrication At present, some 96% of the world’s fleet ECA fuels. One company offering a part solution to the use oil lubricated seals, resulting in accidental
Large steam powered boilers on tankers VGP problem by way of seawater lubricated oil leakages, the company pointed out. TO have different pumping systems, but with the propeller shaft bearing new category of ECA fuels available, they can systems is Thordon be operated more safely. Bearings. He also warned that fuel stored for any In June, the company length of time can become unstable leading to announced that it had an asphaltene build up, blocking filters and received an order for 20 pumps. seawater-lubricated White explained that newer refineries have a COMPAC propeller much better conversion (cracking) range than shaft bearing systems their older counterparts. He warned that from Chinese refinery coking and cracking upgrades should shipyards, marking the start now, as they could take five years to Canadian company’s come on stream. most significant order There are several questions still to be for commercial vessels, answered including refinery supply chain thus far. problems, market reaction, the uptake of Craig Carter, director abatement technology and alternative fuels, of marketing & plus the threat of increased CO2 emissions customer service, from refineries, he concluded. Thordon Bearings, said: “The magnitude of this Luboil changes order is indicative of a Late last year, Shell introduced a new lubeoil - changing market. Alexia S3 - for use when switching fuel to Traditionally, enter an ECA. COMPAC’s core Shell Alexia S3 is a BN 25, SAE 50 market has been cruise viscosity grade oil specifically tailored for and naval ships, with low-speed, 2-stroke diesel engines entering over 2,000 references ECAs. It is formulated for use in engines across these sectors. burning low sulphur fuels, including - But whether it’s a Marine gas oil and distillate fuels. consequence of more Fuel oil with up to 0.5% sulphur. stringent environment It has been validated for use by major engine legislation, the higher manufacturers, including MAN Diesel & cost of new EAL’s or
August/September 2015 TANKEROperator 37 TECHNOLOGY - EFFICIENCY - FUELS & LUBES Planning change - the advantages Jan Christensen, Bomin Group regional manager, Northwest Europe, argues why it is vital that owners do not get lulled into a false sense of security, and should start planning for the global 0.5% ECA to seize a competitive advantage.
ith the news that the IMO has Economic instability, and a lack of liquidity brought forward its review of proved to be a catalyst for consolidation for fuel availability to meet the small regional and mid-market players, and the W0.5% global sulphur cap, it is implosion of OW Bunker in 2014 served only hoped that by the autumn 2016 or spring 2017 to highlight the ethical concerns that have shipping will have the clarity it needs in hamstrung the industry for many years. determining the make up of the marine fuel The additional scrutiny that this brought supply chain beyond 2020. upon the industry has been compounded by the Despite this, whether the cap arrives in five demands of key shipping stakeholders - from or 10 years, change is inevitable. Those that owners and operators, to charterers - for embrace change as an opportunity to seize a improvements in operational and competitive edge will be best positioned for environmental efficiencies and sustainability. the coming decades. This is not just applicable Almost inevitably, this pressure has filtered to shipowners and operators, but also to through to a forensic attention on fuel, those bunkering companies, who face a potentially that supply it, and the way that we conduct defining moment in the industry’s evolution. business in general. The introduction of Like every other market connected with stringent ECA regulations is one of many Bomin’s Jan Christensen. shipping, the last few years have been difficult. areas, where the role of the fuel supplier has
38 TANKEROperator August/September 2015 TECHNOLOGY - EFFICIENCY - FUELS & LUBES been brought sharply into focus. means proactively investing in and growing While much of the industry is taking respite In terms of ECA compliance, as the our physical operations, which was in the current low fuel prices after a number of intermediary between shipowners and refiners, demonstrated most recently with our expansion challenging years, we know that – whether its fuel suppliers have the ability to provide their in Copenhagen. 2020 or 2025 – we’re approaching a major clients with the information and services Enhancing our physical network, and industry milestone and it will be prudent to needed via their in depth understanding of the managing the end-to-end bunker supply learn from the recent past. There will be a fuel supply chain to find an appropriate process from order through to final delivery, range of compliance solutions available and compliance solution. brings us closer to our customers, and gives us suppliers should assume their share of With concerns over whether there will be superior scope to provide them with greater responsibility for driving positive change. enough distillates to meet the 0.5% global efficiencies, and ensure the quality and Whether it’s ensuring that customers have limit in 2020 or 2025, it is the bunker suppliers quantity of products. This investment in our the highest quality distillates, or HFO for who should be engaging with their customers our offering enables us to drive as much value scrubber use, or developing a safe, efficient to help anticipate customer demand. Until this as possible into our customers’ businesses, and and robust LNG supply infrastructure, is known, the refiners will not provide the show that the competitive advantage we offer suppliers have a real opportunity to significant investment required to develop their them goes beyond just the price of our demonstrate their value and ensure that their facilities to create more products. product. customers reap the benefits. TO At Bomin Group, we are seeing a real spectrum of demand. Due to the continued low fuel prices, many of our customers are happy to use distillates, and a smaller number have invested in scrubbers. There are also those that are looking at clean fuels, such as LNG, and we believe that it is realistic to assume that 10% of owners of the whole Baltic Sea fleet will probably MARINNE VALA VEVES decide to shift to the use of LNG within the next five to seven years. ANDD RELATEDT PRODUCTS P With the current distillate prices the same, or lower than heavy fuel oil, many owners and operators are yet to feel the pressure from the 0.1% ECAs, High-performance butterfly valves, double-threaded gate valves, mud boxes, safety valves and spring-loaded overboard valves. Whatever your needs are, and there is a danger that this is W&O can supply them. We are one of the world’s largest and most experienced leading to a lack of medium-to-long suppliers of valves, pipes, fittings, instrumentation and related products for the term thinking. The reality is that many maritime industry. are understandably enjoying the With offices in the U.S., Canada and Europe, W&O has been a leader in the field for temporary increase in profitability; nearly 40 years, offering bothdh domestic andid international customers a wide range however, it is a focus that could leave of solutions. them vulnerable in years to come. Despite the favourable prices, it is In addition to standard valves, we offer complete automated bilge, ballast in- vital that shipowners and operators are charge and discharge systems. We even have the capability to automate valves and to test them for approval. not lulled into a false sense of security. This is a critical message that must be W&O delivered by fuel suppliers. It will Blankenweg 20 • 4612 RC Bergen Op Zoom • The Netherlands require shipowners and operators to +31-164-212420 work closely with their fuel suppliers to truly understand demand and to develop specific procurement strategies that are right for the businesses and trading routes, as well as ensuring optimum operational efficiencies throughout the bunkering process to ensure quality and quantity. We believe that there is a real opportunity for fuel suppliers to prove their value and their worth by building better relationships with customers, understanding their businesses and tending to their fuel supply challenges with bespoke solutions. For Bomin this PIPE•VALVES•FITTINGS•PIPING SYSTEMS•ENGINEERED SOLUTIONS www.wosupply.com
August/September 2015 TANKEROperator 39 TECHNOLOGY - SHIP DESIGN AVEVA introduces new design tools Vessel hull designers can now save time and money in the early design phase by transferring 3D models from AVEVA Marine to DNV GL’s Sesam GeniE. his new functionality, initiated by For ship structures, all loads and boundary decision process, AVEVA claimed. AVEVA in response to market conditions according to DNV GL rules and For example, in a shipyard, design teams and demand, allows users to transfer IACS CSR can be applied to the GeniE model. owners’ representatives will be to take a tablet TAVEVA hull models into Sesam This makes it possible to easily document code type device with them to any department in the GeniE for strength assessment and code check, compliance, including yield screening, yard to check the content against the original according to DNV GL rules. buckling check and reporting, the companies design concept. “This streamline’s the “With the new harmonised Common said. production activity,“ Gauthier Stonestreet, Structural Rules (CSR-H) for tankers and bulk The integration of the two software systems AVEVA’s marine product strategy manager told carriers entering into force, significantly more is part of an ongoing collaboration between Tanker Operator. finite element analysis is required for hull AVEVA and DNV GL, which will include Basically the app will offer four main approval by classification societies,” said Are future integration for prescriptive rules features - Føllesdal Tjønn, DNV GL - Software between AVEVA Marine and DNV GL’s Visualise managing director. “In today’s market, with Nauticus Hull software. This will significantly Access designs from anywhere, at any extra focus on efficiency improvement and cost increase efficiency and productivity for the time. reduction, the collaboration between DNV GL approval of ship hulls according to the new Access many projects. and AVEVA enables designers and yards DNV GL rules, the class society claimed. Search across any designs. around the world to meet this criteria.” Visualise in clear 3D format. This breakthrough is based on the Design content app Inspect development of AVEVA Marine’s capabilities, In addition, AVEVA is soon to introduce E3D Use gestures to navigate the model. where a highly detailed 3D design model can Insight, which is a Windows 8.1 app that Call up attributes for objects in the design. be transferred into a finite element method streamlines the reviewing and approval of Measure distances within the model. (FEM) 3D model, including the connectivity of vessels’ design content. Comment structural components and the finite element Senior decision makers will be able to check Collaborate with colleagues. mesh needed to calculate structural behaviour. and approve designs outside of the office, via a Comment on the design in threaded With the new and powerful advanced mesh tablet, or even on a large touch screen or discussions. editing features in Sesam GeniE, it is then desktop computer.It can be controlled from a Enter comments on the design model. possible to quickly add loads and to refine the central server. Approve mesh, enabling accurate and effective structural AVEVA E3D Insight will enable users to Review the team’s design. analysis. visualise, inspect, comment upon and approve Approve the design from anywhere, at any designs wherever time. they are in the world Another use envisaged is to aid a class in a seamless and surveyor who will be able to examine a design timely manner, the on site or elsewhere, including while at his or company said. her home or while travelling. Live connection to A feedback workshop in a 3D field can be the design database organised by those involved in the design, at will result in the design concept through to the appraisal decisions being made stage. Sister vessels design compartments can against the most also be held on the app for discussion, thus updated information. given the stakeholders a continuous knowledge The ability to collate feed when needed if dealing with a vessel and keep track of series. design decisions and Not only shipyard design teams and owners the final outcome reps and their teams will benefit from the app supports compliance, but also independent design companies who in ensuring the will also be able to link up to their clients. transparency and Stonestreet said that the app was due to go AVEVA 3D Insight will enable other interested parties to access 3D traceability of the live around October this year. designs. TO
40 TANKEROperator August/September 2015 OCT 20(TUE)-23(FRI) BEXCO, BUSAN, KOREA
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Organized by TECHNOLOGY - BALLAST WATER Regrowth – what, why and is it a problem? If we assume that a commercial vessel carries 60,000 tonnes of ballast water, there could be in excess of 7 bill tonnes of ballast water being shipped around the world at any one time. ecognition of ballast water as the Most commercial BWM treatments start by technicians capable of the calculations required carrier of potential invasive physically removing, usually by filtration, solid to accurately compute the quantity of organisms is the basis of the particles larger than 50 ψm followed by either neutralising chemical required. RIMO’s Ballast Water Treatment a physical or a chemical treatment. These are Alternatively, owners may select a convention, in development since 2004. The summarised by Lloyds Register at continuous in-tank, in-voyage BWMS option convention is to be imminently ratified and (www.lr.org/bwm). taking advantage of three different treatment more than 50 suppliers are accredited, willing In a research project, Peter Stehouwer of the strategies, which start once the vessel has and able to supply the necessary equipment. Royal Netherlands Institute for the Sea, completed loading and ballasting and left the The standards against which ballast water compared six different BWMS and terminal. These systems reduce the bacterial quality is to be measured have been demonstrated that although micro-organism load over time delivering clean ballast water at established, endorsed and adopted by various populations are heavily depleted by BWMS, no voyage end with minimal levels of active national and regional authorities. For example, system discharges sterile water. Since BWMS micro-organisms. With no active ingredients the US Coast Guard will require ships to: removes the organisms that prey on and control and able to operate in any type of water, these Clean ballast tanks to remove sediments algae and bacteria, copepods and combined physical systems offer significant which must be disposed of in accordance phytoplankton for example, once these are benefits to those facing long voyages. with local, state, and federal regulations. removed any small but living residual microbes Should we worry about these remaining Discharge only the minimal amount of can regrow unhindered, feeding on the organic viable organisms? As early as the 19th Century, ballast water essential for vessel operations remains of dead predators. Charles Darwin realised that for an invasive while in United States waters. Furthermore, it was shown that regrowth organism to successfully establish itself, there Rinse anchors and chains when an anchor usually results in far larger microbe needed to be 1) a sufficiently large number of is retrieved. populations in discharged ballast water than organisms introduced - propagule size - and 2) Remove fouling from the hull, piping and originally existed. These high concentrations a number of discrete introductions –propagule tanks on a regular basis. permit the emergence of totally new strains of number. The resulting combination ‘the Maintain a Ballast Water Management Plan organism as they exploit the same genetic propagule pressure’ explains why some that includes procedures for fouling and exchange mechanisms that result in antibiotic introduced species persist while others do not. sediment removal as well as ballast water resistance. The research also indicated that The IMO standard accepts that there will be management – there is no requirement for different BWMS have different impacts on some live organisms left after treatment and the plan to be approved. different microbes. the standard has been set at a level designed to Submit a report form 24 hours before UV treatment reduces microbial populations minimise any resultant propagule pressure. If arrival by email to [email protected] over time with the minimum population being the IMO’s ambition of preventing the The warm, dark, enclosed environment inside a reached after five to eight days then regrowth successful introduction of new species is to be ballast tank is an ideal bacterial/algal incubator. starts reaching a higher steady state achieved in practice, small propagules Because even newly manufactured ballast concentration after 12 to 15 days in the tank. (minimal numbers of live organisms) should be tanks are far from sterile, the standard also This implies that, particularly over long discharged. limits the discharge of three, indicator microbe voyages, ballast water should be UV treated at Operators of large tankers, carrying many species: - the beginning and on discharge if shipowners thousands of tonnes of ballast water over i) Toxigenic Vibrio cholera (producing fewer are to be sure the discharge has minimal extended periods are discovering that in- than 1 cfu (colony forming unit) per 100 bacterial concentrations. voyage, in-tank systems like that offered by millilitre), Stehouwer showed that chemical treatments Coldharbour Marine, prove best value both for ii) Escherichia coli (producing fewer than 250 kill microbes effectively but have the serious the company and for the environment. TO cfu per 100 millilitre) drawback of using active chemicals, which iii)intestinal nterococci, producing fewer than then need neutralisation before discharge. *This article was written by Andrew Marshall, 100 cfu per 100 millilitre. Treatments can be difficult unless ships carry Coldharbour Marine CEO.
42 TANKEROperator August/September 2015 TECHNOLOGY - PROFILE - DSM DYNEEMA Synthetic fibre makes rope more durable “There are several tanker fleets using mooring ropes made with our product,” said Edwin Grootendorst, Global Business Director at DSM Dyneema.
e was talking of what the R&D makes up a very large percentage of company claims is the world’s the company’s activities. A large development strongest fibre - the patented laboratory is on site, which can test the fibres HDyneema SK78 fibre - which is and ropes in simulated conditions in order to used in mooring and towing ropes. help understand the challenges of rope This fibre has been developed down the applications, including abrasion, fatigue, etc. years to offer the same size and strength as 40 mm steel wire. However, the difference comes Research programme with the weight, which is claimed to be just One research programme involves a multi-year 1/7th of wire rope and that it is more durable project to determine the exact behaviour of in the most extreme conditions. ropes made with Dyneema fibres under long Today, ropes need more than strength to term static loads. This has enabled the withstand extreme and regular abrasion company to develop a creep design tool by through fairleads, winches, capstans or H-bits. which the company and its customers can Ropes made with Dyneema SK78 last longer predict creep rate and elongations, and than other synthetic ropes in demanding estimate creep lifetime. Ropes made with environments. Durability delivers value, the SK78 offer one of the highest creep lifetimes company claimed. seen in commercial marine high modulus By using rope made with the fibre, mooring polyethylene fibres (HMPE) ropes, the operations can be completed much faster, as company said. just one crew member can handle the rope. All synthetic fibres are sensitive to long- The fibre has low elongation at break, which term static loads and will elongate with time to means that the rope stores less energy before a varying degree. This phenomenon is known DSM Dyneema’s Edwin Grootendorst. breaking.This reduces the risk of backlash as creep, and is a process in which the long compared to conventional fibre ropes, which molecular chains slide along each other, the have a higher stretch, Grootendorst explained. company explained. solution for vessel mooring application, Grootendorst said that the market for large Ever since the commercialisation of DSM Grootendorst claimed. vessels, such as crude carriers, LNGCs and Dyneema’s HMPE fibre in the 1990s, the The high strength, low density, and good shuttle tanker was “quite strong.” The market company said that it had recognised the mechanical and chemical properties mean was very strong a couple of years ago but importance of creep in customer applications. HMPE is used in a wide variety of there are still newbuildings for 2016-2017 For applications that are subject to high applications. Ropes made with HMPE offer a deliveries onward, he explained. loads for a long term, for instance permanent number of advantages that make it a superior The large ship towage companies are also mooring of deepsea oil production platforms, alternative for steel wire rope and ropes made using rope containing SK78 fibre, he said, as the company has developed an HMPE fibre from other synthetic materials for a wide range the fibre has greater safety benefits with a tug called DM20 that has a much higher creep of applications. having a large bollard pull. resistance compared to SK78. HMPE’s advantages include: He explained that DSM Dyneema sells the However, most applications involving ropes Lower weight (ease of handling). fibre to the rope manufacturers who then sell made with HMPE are not subject to constant Smaller diameter (easier storage and ropes made of the fibre to the shipyards and loads, nor are they used at high temperatures. transportation). owners. As well as newbuildings, there is also It is rare for both temperature and load to be Higher stiffness. a market for spare ropes kept on board and for factors at the same time. Excellent long-term properties (tension and replacement rope in case of breakage. The Vessel mooring ropes are subjected to cyclic bending fatigue, UV and chemical company maintains close co-operation with all loading due to the wave motions. SK78 has resistance). the rope suppliers that use its fibre. higher resistance to cyclic loading fatigue Quality certificates are issued and discussions The fibre is manufactured at plants in the compared to other high performance fibres. are regularly held with the relevant bodies, Netherlands and the US. However, the marine This resilience combined with higher creep working groups and others, while the company market is primarily handled from Holland. lifetime, makes ropes with SK78 the ideal works under the watchful eye of DNV GL. TO
August/September 2015 TANKEROperator 43 TECHNOLOGY - COATINGS Manufacturers realign with new products and ideas While most coatings manufacturers are claiming a reduction in fuel consumption/ emissions, some have introduced new products while others have come up with novel marketing ideas.
n this article, Tanker Operator takes a AkzoNobel and development partners The International range of marine coatings. look at four company’s innovations in FReMCo Group and The Gold Standard The company said that Intersleek coatings strict alphabetical order. AkzoNobel’s Foundation. have been proved to increase a vessel’s Icarbon credits methodology for the Claimed to be the first of its kind within the operating efficiency and reduce CO2 and shipping industry has won the ‘Best Offsetting shipping industry, the carbon credits associated emissions by an average of 9%. Project’ award in the 2015 Voluntary Carbon methodology is based on shipowners Carbon credits are awarded based on the Market Rankings. converting existing vessels from a biocidal reduction in emissions, which can then be sold Based on nominations from leading antifouling system to a premium, biocide-free on the carbon markets. stakeholders within the voluntary carbon advanced hull coating such as AkzoNobel’s “This award is recognition of the hard work markets, this award recognises the efforts of patented Intersleek, part of the company’s and commitment from everyone involved in
44 TANKEROperator August/September 2015 TECHNOLOGY - COATINGS developing the carbon credits methodology,” After delivering record sales and net profit in said Trevor Solomon, Intersleek business 2014, Hempel has launched a new brand manager for AkzoNobel’s Marine Coatings identity to mark its drive to offer complete business. “We see this as adding further coating solutions for customers. credibility to the initiative, which has seen a Hempel’s new logo, known as the Helix, significant uptake in shipowners enrolling in symbolises the dynamic layers and motion of the last year.” mixing coatings, while also being indicative of Oscar Wezenbeek, Managing Director of the global, connected company Hempel has AkzoNobel’s Marine Coatings business, added: become. “We are delighted that our efforts to develop As the business expands and absorbs new the industry’s first carbon credits methodology acquisitions and extends into new markets, the have been recognised. This is another importance of one brand around the world significant step in helping and incentivising becomes even more significant, the company shipowners to invest in clean technology and said. working towards reducing emissions and Today, Hempel is present in over 80 Intersleek’s business manager Trevor Solomon. improving the sustainability of the shipping countries and delivers solutions across many industry.” industries, including marine. aligning our solutions and expertise across Hempel Group President & CEO Pierre-Yves industries and regions. This is crucial if we are Available funds Jullien cites growing demand from customers to continue to secure trust and loyalty, and In the first round of claims, two shipowners for more integrated coating solutions as a major drive greater efficiencies in the way we work.” are due to be awarded a combined total of trigger behind the work. "The last 10 years Malte Eggers, Hempel’s head of nearly $500,000 for 17 vessels this year. And have represented a transformation period and communications, said:“Our new brand reflects based on the 100 eligible vessels already the nature of our business has changed the confident, contemporary and diverse nature converted from a biocidal coating to the dramatically. of our business, which is no longer defined Intersleek range, there is a further estimated “The world in which we work has become solely by our marine heritage. Marine, yacht $2.8 mill available for shipowners and more connected, and so we have pushed to and container coatings continue to be core operators, the coatings concern said. consistently create value for customers by areas of our business. But we have grown
August/September 2015 TANKEROperator 45 TECHNOLOGY - COATINGS dramatically within the protective industries shipbuilders, class societies, paint while also building an impressive profile and manufacturers, performance monitoring presence in decorative coatings. Today, Hempel companies and various research institutions offers the world a comprehensive portfolio of worked for more than two years to reach a trusted coating solutions." consensus on the drafts. The Hempel Foundation, the company’s Oftedahl expected the standard will owner, will also adopt the new brand identity. accelerate industry-wide best practices and will This alignment will ensure absolute consistency offer much needed transparency for buyers and across all of Hempel’s commercial, social and sellers of a wide range of fuel saving charitable initiatives, the company said. technologies and services. “The standard will The new identity was launched as part of benefit responsible suppliers, owners and the Hempel’s 100-year anniversary celebrations environment,” he said. held at the Copenhagen Opera House on 4th Jotun’s HPS concept combines premium July. marine coatings (SeaQuantum X200), priority Norwegian coatings concern Jotun has technical service and on board monitoring tools welcomed the ISO’s decision to circulate ISO to measure hull performance over time, Jotun’s Geir Axel Oftedahl. 19030. providing an analytical basis for the company’s being applied during new construction or The 17 country standardisation bodies money-back guarantee that covers the entire during drydocking,”he said. represented on ISO’s Marine Environment period between drydockings. The range has been designed for all vessel Protection Sub-committee (ISO-TC8-SC2) HPS was developed partly to provide the types and operating speeds and is particularly recently voted in favour of circulating ISO industry with real time data on long-term hull effective for slow-steaming, due to the 19030 parts 1 and 2 as draft international performance, which allows owners to make engineered CSP composition. The antifoulings standards. more informed decisions about marine coatings also benefit from high-volume solids (up to and ship operations, and helps them distinguish 59%) for efficient application and evolve in a Performance guarantee update between competing coating suppliers and pattern of linear polishing, with consistent In anticipation of final approval of the quantify the impact of antifouling on fuel biocide release for predictable performance for standard expected next year, Jotun will update usage. up to 90 months. its performance guarantees offered as a part of Also joining the range are PPG’s patented its hull performance solutions (HPS) so that New range introduced Syladvance 700 and 800 products, which have they are fully compliant with the standard. PPG Protective and Marine Coatings has been rebranded Sailadvance MX and DX. According to Geir Axel Oftedahl, Jotun’s introduced SIGMA Sailadvance, a new range These coatings provide the same high business development director, hull of antifoulings suitable for a variety of performance and fuel saving potential on performance solutions, the purpose of operating conditions. vessels under the widest operating profiles. establishing these standards is to prescribe The range currently comprises four coatings, SIGMA SAILADVANCE RX practical methods for measuring changes in including Sailadvance RX and GX, two · Low friction, self-lubricating, linear ship-specific hull and propeller performance completely new formulations based on PPG’s self-polishing antifouling based on and to define performance indicators for hull patented technologies. These antifoulings are hydrolysable polymer binder composition. and propeller maintenance, repair and retrofit based on self-release binder technology using · Technology based on CSPs. activities. controlled surface active polymers (CSPs), · Idle time tolerance - average 25 days. “Poor hull and propeller performance is which provide a self-lubrication and self- · Vessel operating rate - 50-90%. currently estimated to account for around 10% release mechanism to the coating. SIGMA SAILADVANCE GX of world fleet’s energy costs and corresponding CSP acts on the coating/water interface as a · Low friction, self-lubricating, linear greenhouse gas emissions,“ he explained. “By lubricant, which supports laminar flow, thereby self-polishing high performance antifouling creating a standard, the industry will have lowering the hull friction when the ship is based on hydrolysable binder composition. access to proven ways to measure speed loss, sailing and delivering fuel savings averaging · Technology based on CSPs. leading to better decisions about hull coatings 5%. In addition, CSPs create a ‘slippery · Idle time tolerance - average 30 days. and propellers. We believe improving hull and surface’ that increases the resistance to fouling · Vessel operating rate - 40-80%. propeller performance can reduce the world when the ship is not sailing and, thus extending SIGMA SAILADVANCE MX fleet’s fuel cost by as much as $30 bill per year potential idle days. · Low friction, linear self-polishing and achieve an estimated 0.3% reduction in Tom Molenda, PPG’s global marine director, antifouling based on organic hydrolysable man-made greenhouse gas emissions.” said:“The Sailadvance range has been polymer binder. The vote represents a milestone for the developed in the knowledge that to meet · Idle time tolerance - average 25 days. MEPC Sub-Committee. Oftedahl, who today’s market needs, a coating must cover a · Vessel operating rate - 50-70%. managed the project on behalf of ISO, and wide range of vessel types and operational SIGMA SAILADVANCE DX Svend Søyland (senior advisor, Nordic Energy conditions. · Ultra low friction, linear self- Research), who has served as the convener of “Owners want to reduce energy consumption polishing antifouling based on organic the ISO working group, expressed their and lower their total costs regardless of how hydrolysable polymer binder, designed for gratitude to the other members of the sub- their ships are operating. The RX and GX broad operational ranges. committee. range meet this need whether the ship is · Idle time tolerance - average 30 days.
The 53 experts representing shipowners, sailing, idle or slow steaming, regardless of · Vessel operating rate - 40-90%. TO
46 TANKEROperator August/September 2015 TECHNOLOGY - TANK SERVICING Update on new statutory requirements On 1st January, 2016, new postponed until after loading but before the In order to be able to ship these products on requirements for inert gas, commencement of unloading. However, new ships above 8,000 dwt, the use of inert stability instruments and because of the risk of generating static gas has been allowed provided it is not applied overboard discharge monitoring electricity by using exhaust gas, only nitrogen until discharging commences and the oxygen equipment (ODME) will enter into is acceptable for this purpose, DNV GL level is kept above that stated to be the force. warned. minimum level on the inhibitor certificate. DNV GL has published an article, which is This further implies that a nitrogen inert gas a recap of the new requirements and the plant should be installed on board, which Stability implications that they may have. should be born in mind in newbuilding In addition, new requirements for on board In recent years, there have been several specifications. stability instruments will be applicable to all incidents involving internal tank explosions on As a consequence, amendments have been tankers effective from 1st January, 2016. small oil and chemical tankers, many of which made to the FSS and IBC Codes. In the FSS MARPOL Annex I, the IBC/BCH Code and occurred in connection with gas-freeing and Code, basically the oxygen limit for inert gas the IGC Code have all been amended, tank cleaning operations. supplied to the tanks has been reduced from requiring tankers to be fitted with a stability DNV GL said that the main reason for these 8% to 5%. The amendments made to the IBC instrument capable of handling both intact and incidents was believed to be the lack of an Code include operational changes in the gas damage stability. The new requirement is inert atmosphere in the cargo tank, as these freeing and handling of inhibited products retroactive and applies to both new and tankers are currently exempt from using inert where the inhibitor is oxygen dependent and existing ships as follows: gas. the products must at the same time be carried ■ Ships constructed on or after 1st January, As a consequence, it was decided to lower in an inert atmosphere. 2016, at delivery. the SOLAS inert gas limit from 20,000 dwt to The revised gas freeing requirements are ■ Ships constructed before 1st January, 2016, 8,000 dwt. In addition, chemical tankers’ now more in line with those required for oil at the first renewal survey on or after 1st current exemption from inerting tanks of less tankers under SOLAS, ie, that the tanks January, 2016 but no later than 1st January, than 3,000 cu m capacity will be scrapped for requiring inert gas should, after tank cleaning, 2021. new ships. This will only apply to new tankers be purged down to a certain limit of An instrument already installed, capable of constructed on or after 1st January, 2016. flammable vapours before gas freeing with verifying both intact and damage stability, In tank inspections, a practice quite fresh air may take place. may be accepted by the flag administration. common prior to loading many chemicals, Products protected by an oxygen-dependent There are some options for waiving the logistical challenges and port congestion might inhibitor are currently not to be carried in an requirement, for example for ships operating result, as new chemical tankers above 8,000 inert atmosphere, in other words such products only in a limited number of loading dwt – irrespective of their tank size – will now are today carried in tanks of less than 3,000 cu conditions. have to purge their tanks alongside after the m on ships above 20,000 dwt when the tank inspection when taking on low flash flashpoint is less than 60 deg C, the only ODME products. exemption being for styrene monomer, which Biofuel blends consist of a biofuel part, which To avoid this, the revised SOLAS rules may be carried under inert conditions, subject is considered to be a chemical subject to allows the application of inert gas to be to special provisions. MARPOL Annex II and the IBC Code and a petroleum part, which is subject to MARPOL Annex I. An example is a mixture of ethanol and gasoline. For biofuel blends, a cut-off limit of 75% has been agreed, determining the regime to which the blend is subject – MARPOL Annex I or Annex II, ie, if the petroleum part is 75% or more the blend is considered to be an oil governed by MARPOL Annex I. Up to now, biofuel blends have been allowed to be shipped under MARPOL Annex I without the ODME being type-approved for the specific blend. This has been considered okay as long as the resulting slop has been delivered ashore to a reception facility. However, as of 1st January, 2016, this will no longer be an option, as from this date, in order to continue to ship a biofuel blend under Annex I, a non-compliant ODME has to be upgraded or replaced and the blend in question should be included in the new type approval Tanker owners of operators of vessels of below 20,000 dwt will have new rules to deal with next year. certificate, DNV GL concluded. TO
August/September 2015 TANKEROperator 47 TECHNOLOGY - TANK SERVICING Portable gas detectors calibrated on board
The risk of asphyxiation and death III/19 “Emergency Training and drills”… This means a huge saving for shipping is still a major cause for concern “requiring that each enclosed space entry and companies and no down time. It also removes for ship crew members working in rescue drill shall include checking and use of the need to arrange calibration gases to be sent confined and enclosed spaces on instruments for measuring the atmosphere in to ships every three to six months, as two years board vessels, due to the build-up enclosed spaces.” supply of gas is included at the time with the of hazardous and toxic gases. At this session, the committee agreed that appropriate shelf life. Shipping companies have a duty of care to “paragraph 3.6.2.3 of SOLAS regulation III/19 Martek said that this system enables fail- their employees to provide a safe work does not introduce carriage requirements for safe, accurate and repeatable certified environment and an obligation to ensure that atmosphere testing instruments for enclosed calibration on board, automatically generating crew are safe and can carry out their tasks spaces” and “recognised the need to implement tamper-proof serial number specific calibration safely. the draft new SOLAS regulation XI-1/7 early, certificates. Martek’s A-B-C system consists of This was reflected in IMO circular in order to expedite the carriage of portable the patented Marine 4 - a specialist marine MSC.1/Circ.1485 released in January, 2015, atmosphere testing instruments for enclosed quad gas detector, an A-B-C self-certification concerning the carriage and use of portable gas spaces.” calibration station and calibration gas with a detectors. In response to the IMO’s guidance regarding unique two-year shelf life. MSC.1/Circ.1485 calls for voluntary early early implementation of SOLAS regulation XI- The Marine 4 has an integral sampling pump implementation by member states of SOLAS 1/7 on atmosphere testing instrument for for flexibility for pre-entry into deep tanks or regulation XI-1/7 ahead of the mandate of 1st enclosed spaces, UK-based marine equipment holds and immediate compliance with the new July, 2016 after resolution MSC.380(94) was supplier Martek Marine has developed a regulations. adopted at MSC 94. compliant solution for shipping companies with Steve Coulson, Martek Marine director, The new regulation states that “every ship to the patented A-B-C (Always be Calibrating) commented, “The prevalence of seafarer deaths which Chapter I applies shall carry an self-certification calibration station. entering enclosed spaces is still a major cause appropriate portable atmosphere testing for concern. With the ABC solution, ship’s instrument or instruments. As a minimum, Full requirements crew can eliminate the risk before entering these shall be capable of measuring The A-B-C system has been specifically confined spaces. concentrations of oxygen, flammable gases or developed to meet the full requirements of all “The IMO has led the way here and set a vapours, hydrogen sulphide and carbon current legislation for portable gas detectors good example for member states to adopt. monoxide prior to entry into enclosed spaces. and meets all IMO and oil major requirements, Safety of seafarers should be of paramount Instruments carried under other requirements the company claimed. importance especially when these needless loss may satisfy this regulation. Suitable means It enables the crew to calibrate their own of lives could be easily avoided simply by shall be provided for the calibration of all such portable gas detectors on board rather than having portable gas detectors on board and a instruments.” having to continually send the equipment means to calibrate them quickly, effectively and MSC 93 recalled that MSC 92 had adopted, ashore for calibrating or getting contractors on with full approval of all vested parties,” he by resolutionMSC.350(92), SOLAS regulation board to do the work. stressed. TO
48 TANKEROperator August/September 2015 TANKERTANKEROperatorOperator
KEY PLAYERS IN THE COMMERCIAL TANKER TANKER INDUSTRY OPERATIONS will be profiled giving their including shipbroking, legal matters views on current legislation, and financing recommendations and trends. These will include chief IN DEPTH INFORMATION executives from all sectors of on the latest newbuilds, sale and the industry from equipment purchase, freight rates and manufacturers to the top derivatives markets, using industry shipowners known commentators
INFORMATION A STRONG FOCUS about meeting oil major on shipbuilding and repair requirements (TMSA / vetting)
DEVELOPMENTS in management/ safety/ environmental best practice
NEW TECHNOLOGIES and commercial industry developments Photo credit – Hempel
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