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Front cover:Front cover.qxd 26/02/2010 09:41 Page 1 TAKEROperator MARCH 2010 www.tankeroperator.com Features: US tanker consolidation Singapore – a major hub Szymanski speaks out Incorporating: BWT decision day looms The TAKEROperator Annual Shipping New cargo tank coating Review STS rules soon IFC:OBC.qxd 26/02/2010 09:42 Page 1 "KNRDQÄ QDK@SHNMRGHORÄÄ ENQÄ@ÄR@EDQ VNQKC 6DÄG@UDÄ@MÄHMSDQM@SHNM@KÄMDSVNQJÄNEÄLNQDÄSG@MÄ ÄDWODQSRÄ @BQNRRÄÄNEÆBDR Ä3GHRÄFKNA@KÄQD@BGÄFHUDRÄTRÄ@MÄTMQHU@KKDCÄUHDVÄNEÄ SGDÄL@QJDSOK@BDÄ@MCÄSGDÄSDBGMHB@KÄCDUDKNOLDMSRÄRG@OHMFÄSNC@XiRÄ L@QHMDÄHMCTRSQX Ä(SÄ@KRNÄDMRTQDRÄSG@S ÄVGDQDUDQÄXNTÄ@QD ÄVDÄVHKKÄADÄ MD@QAXÄ@MCÄ@AKDÄSNÄ@OOKXÄ@ÄFDMTHMDÄTMCDQRS@MCHMFÄNEÄKNB@KÄHRRTDRÄ @MCÄGDKOÄXNTÄNODQ@SDÄLNQDÄR@EDKXÄ@MCÄRTRS@HM@AKX +D@QMÄLNQDÄ@ANTSÄNTQÄFKNA@KÄMDSVNQJÄmÄ FNÄSNÄVVV KQ NQFL@QHMDÄ 2DQUHBDRÄ@QDÄOQNUHCDCÄAXÄLDLADQRÄNEÄSGDÄ+KNXCiRÄ1DFHRSDQÄ&QNTO p1:p1.qxd 26/02/2010 09:45 Page 1 Contents Markets 04 Renewed energy demand forecast ANNUAL REVIEW Profile 05 Provision management saves costs 10 US Report Jones Act conundrum Crowley expands tanker fleet Singapore Report I 2010 – What are we in for? 15 APM- Huge interest shown IV Oil spills at their lowest Shiprepair hub VI TAKEROperator’s top 30 XV Risks attached to new fuel limits Shipmanagement 20 New secretary general takes office Software suite case study 25 Technology NEW 25 Ballast Water Treatment Lay-Up Module Convention comes closer now available Various approvals in the offing 34 Tank Servicing 'Simplicity is the key to Success' New cargo tank coating unveiled Established in 1991, UK based Marine Software Ltd provide low cost, easy to use Ship Management Software Solutions tailored for the Worldwide Maritime Industry Huge tank cleaning project 38 Ship-to-Ship DNV TYPE APPROVED PLANNED Mandatory STS rules come closer MAINTENANCE MINIMAL TRAINING STOCK REQUIREMENT CONTROL SHIP / SHORE INTEGRATION PURCHASING OPTIONAL NO ANNUAL SUPPORT LICENCE FEES CONTRACTS AVAILABLE DATABASE PROJECT SETUP SERVICES MANAGEMENT CONDITION MONITORING ISM DOCUMENT RCM VIBRATION ANALYSIS LINK MANAGEMENT Front cover photo SAFETY MANAGEMENT We will witness many scenes like this during SYSTEM 2010. Some say too many. If most of the scheduled deliveries occur, we could see a change For further details please contact us on: Tel: +44 (0)1304 840009 Fax: +44 (0)1304 840075 Email: [email protected] in the tanker fleets’ composition, especially in the MR sector. www.marinesoftware.co.uk Photo Credit—AET. March 2010 TANKEROperator 01 p2-24:p2-7.qxd 26/02/2010 10:04 Page 2 COMMENT Forthcoming expos will gauge the shipping industry’s mood As the first two of this year’s major events are In the Annual Review, leading accountant and consultancy Moore almost upon us, it will be a chance to take stock Stephens said that several companies were cash rich and were looking and to see whether the shipping industry is really for either other companies, or distressed newbuilding tonnage to gobble weathering the recession. up, thus taking advantage of the situation in order to renew their fleets Strangely, the two events – CMA and Asia Pacific Maritime (APM) - for a reasonable return. are only a couple of days apart. However, that’s where the similarity One recent example was Odfjell purchasing an MR from SLS ends as they will take place thousands of miles apart. The first is being Shipbuilding of South Korea. The agreed price was about $33.5 mill held in the US and the second in the vibrant island Republic of and the vessel was due for delivery in April 2010. Due to its prompt Singapore. delivery, the vessel was believed to be the resale of a tanker originally The two events should be the barometer of the industry to gauge ordered by Eletson. whether there are signs of a recovery on the horizon. Industry observers This purchase was announced as Odfjell continued to phase out older will be gauging the mood of the speeches and no doubt counting the tonnage. Recently, the company sold three 1980s built parcel tankers number of visitors going through the doors. for recycling. There appears to be no problem in selling booths, but will the Brokers and consultants believe that there will be several more executives manning the stands get the right type of punter? Both CMA vessels sold by cash strapped owners, or shipbuilders, this year at knock and APM should be okay as they tend to go for a different sector of down prices in all sectors. the industry. The Connecticut Maritime Association (CMA) has built up its Tough year membership and reputation as a leading catalyst for US service Moore Stephens agreed that this year would be tough for both owners providers, such as brokers, lawyers, financiers and consultants. There and builders alike. Interestingly, more service providers, such as banks maybe the odd owner to be seen as the annually elected Commodore and cargo owners, will be looking at a vessel’s ‘Green’ components always seems to come from the shipowning ranks, not only in the US, before deciding whether to finance, or charter the vessel, which is a but also worldwide, John Fredriksen being a prime example. completely new way of thinking for most. APM is more of a showcase for Asian shipbuilders, repairers and Those owners and operators without access to credit will find that the equipment manufacturers who come to market their wares to the many coming year or so will be a difficult period to survive, especially if the shipmanagement and owner/manager representative offices that adorn freight rates stay low, either equal to, or just below daily operating costs. the island. Also those companies, which have re-financed their tonnage, Down the years both owners and managers have set up shop to be effectively taking out a second mortgage to raise cash, will have near where their vessels are trading, which includes Singapore. Broking difficulty in keeping up the higher repayments as was seen in the 1970s houses have followed, as have lawyers, bankers and others. Also and 1980s. surrounding Singapore are the oil and gas powerhouses of Indonesia Elsewhere, in the pages of this month’s TAKEROperator, we have and Malaysia. commemorated the passing of the Knock evis (see page 37) – the last In the US, several companies are quoted on NASDAQ and the New of the 1970s built giants. If one remembers just how many ULCCs were York Stock Exchange. However, with the troubled financial markets, constructed in the heady days of the 1970s, before the crash, this vessel we have not seen many companies trying to raise cash with the was probably the last example. exception of Herbjorn Hansson’s Nordic American Tanker Shipping, Some only lasted a matter of 10 years- Shell’s ‘B’ class ULCCs built who uses the money raised by issuing shares to purchase ships in cash, at St Nazaire spring to mind. However, this old lady spent much of her thus has no finance amortised into his vessels’ daily operating costs. 30 years in shipyards and acting as a storage vessel before arriving at In Singapore, a few companies are listed on the Singapore Exchange Alang for breaking in January of this year. Securities Trading exchange, including leading independent bunker This leaves the Euronav/OSG’s 440,000 dwt trio originally built for supplier Chemoil. Bunker supply is still one of the mainstays of Hellespont just under 10 years ago as the sole ULCC survivors. We will Singapore’s service offerings. ever see their like again? We doubt it. TO TANKEROperator Vol 9 No 4 EDITOR SUBSCRIPTION PRODUCTION Tanker Operator Magazine Ian Cochran 1 year (8 issues) Vivian Chee Ltd Tel: +44 (0)20 7510 4933 $220 / €160 / £150 Tel: +44 (0)20 8995 5540 213 Marsh Wall [email protected] 2 years (16 issues) [email protected] London E14 9FJ, UK $330 / €240 / £225 Printed by Alya Print www.tankeroperator.com ADVERTISING SALES Subscription hotline: ul. Siemianowicka 98 Melissa Skinner Tel: +44 (0)20 7510 4935 41-902 Bytom PUBLISHER/EVENTS/ Only Media Ltd Fax: +44 (0)20 7510 2344 Poland SUBSCRIPTIONS Tel: +44 (0)20 8950 3323 Email: Karl Jeffery [email protected] [email protected] Tel: +44 (0)20 7510 4935 [email protected] 02 TANKEROperator March 2010 p2-24:p2-7.qxd 26/02/2010 10:04 Page 3 Our tugboats are red and white, but our environmental stewardship is as green as it gets. Crowley is one of the few tug companies to earn full Safety, Quality & Environmental (SQE) certification from the American Bureau of Shipping (ABS). Being E-certified means we have a recognized and approved program in place for minimizing our environmental impact with our tug operations. To ensure the highest standards are being met, Crowley tugs undergo regular envi- ronmental, safety and quality audits. Additionally, Crowley uses ultra low sulfur diesel fuel in all West Coast harbor tugs, and has installed, or is in the process of installing, shore side power at all West Coast Crowley facilities so idle tugboats don’t have to run their engines at the dock. To further reduce fuel consumption and emissions, Crowley worked with the Port of Los Angeles to establish various intermediary lay-berths in and around the port, which significantly reduces the need to run back to the ‘home dock’ between ship assist jobs. Crowley’s latest initiative is the design of a tugboat that is so environmentally friendly it wouldn’t even require a smokestack. It’s just another way Crowley is committed to preserving the environment for future generations. To find out more about our services in the harbors of Los Angeles/Long Beach, San Diego, Oakland and San Francisco Bay Area, Tacoma, Seattle, North Puget Sound and Prince William Sound/Valdez, Alaska, call Crowley at 800-248-8632.