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

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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]

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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. Or visit www.crowley.com.

www.crowley.com

Liner Shipping • Worldwide Logistics • Petroleum & Chemical Transportation • Alaska Fuel Sales & Distribution • Energy Support • Project Management • Ship Assist & Escort • Ship Management • Ocean Towing & Transportation • Salvage & Emergency Response p2-24:p2-7.qxd 26/02/2010 10:04 Page 4

INDUSTRY - MARKETS A renewed demand for energy?

his reflected a renewed demand In a February report by gasoline and distillates comprising the bulk of for energy amidst improving this growth. economic conditions, said the US EIA, the forecast TMcQuilling Services who analysed for global liquid fuels OPEC growth the report. World liquid fuel supplies from non-OPEC After posting declines for the last two years, consumption was nations are believed to have already passed the EIA’s latest outlook now calls for a 1.2 their peak in 4Q09 at 21.18 mill barrels per mill barrel per day growth in consumption revised upwards. day, and are forecast to decline nearly 5% by during 2010, and a further 1.6 mill barrels per 2011. OPEC supplies are predicted to grow day in 2011. Non-OECD countries will see a 5.6% steadily through 2011 until achieving a 41.6% World liquid fuels consumption is set to end growth in consumption during this period, share of total world supply, up from a 40.3% the first quarter of this year at 85.2 mill with Chinese demand increasing by over 11%. share in 2009. barrels per day after averaging 85.1 mill China’s consumption in December 2009 McQuilling pointed out that net tanker barrels per day in 4Q09 (see Figure 1). already revealed a 12% increase from the tonnage supply will grow modestly in 2010 While a jump in tanker freight rates earlier previous year, indicating that the economic owing to IMO-mandated phase-outs, but more this quarter may be a reflection of this uptick stimulus packages put in place have helped to rapidly in 2011 as deliveries overtake in demand, the forecast for 2Q10 will likely boost demand. Similar growth is expected to demolitions (see Annual Review, page ii). see rates fall with seasonality effects lowering continue. While the consultancy maintained that consumption to 84.8 mill barrels per day. US liquid fuel consumption fell by 4.2% to fleet growth will be difficult for demand to However, even at this predicted 2010-low, 18.7 mill barrels per day in 2009. However, absorb, it also acknowledged that several consumption in the second quarter would still gasoline use actually posted a small gain, recent adjustments called for increasingly be healthier than the 2009 average of 84.1 although demand for distillates and jet fuel greater growth to global liquid fuel mill barrels per day. fell by about 8.5% each. consumption. By 4Q10, the EIA expects world fuel The world’s largest consumer of liquid fuels The extent to which increased consumption consumption to average 86 mill barrels per is expected to increase consumption by will translate to tanker tonne/mile demand is day, rising to 86.9 mill barrels per day in 180,000 barrels per day in 2010, and a further yet to be seen, but at least some of the

2011, reflecting a 3.3% increase from 2009. 210,000 barrels per day in 2011 with motor newbuilds will find fresh employment. TO

Million bbl/d Million bbl/d OPEC Share 87 87 42% Total World Supply OPEC Share (Rt Axis) 86 86

85 85 41%

84 84

83 83 40%

82 82

81 81 39%

Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 2011 Q1-09 Q3-09 Q1-10 Q3-10 2011 Source: US Energy Information Administration

Figure 1: World liquid fuels comsumption 2009 - 2011 Figure 2 : World liquid fuels supply 2009 - 2011

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INDUSTRY- PROFILE GARRETS Proper management of provisions can save considerable costs The supply of consumables, including fresh food has never been high on the agenda. People still tend to think back to elson’s day of salt beef, ships’ biscuits, scurvy and weevils.

owever, in today’s healthy eating company to select any supplier in any port nationalities on board increasing, Brown said environment, the food served up that best suits the customer. that the company was seeing a demand for in ships’ galleys has taken on far more specialised national products on the Hmore significance, especially Quality agreement vessels supplied. with seafarer recruitment and retention Each supplier used is asked to sign a All seafarers have to work hard today and probably the most important issues facing service/quality agreement to ensure that the the cook is no exception. “Three good meals a the industry. provisions and service reach the standards day are one of the few things that seafarers There are now specialist suppliers who have required. The major suppliers are also audited. have to look forward to, so a good cook can contracts with leading ship operators, thereby Brown said that the company believed in boost morale as easily as a bad cook can taking over the role of consumables using local suppliers, rather than trucking lower it,” Brown said. management for a vessel and/or fleet. One goods long distances… ” such company with several of the leading which seems to be ‘de tanker owners and operators signed up is rigueur’ these days,” Garrets International. he said. Business development manager Andrew To expedite the Brown explained that an agreement with a orders, Garrets has shipowner or operator is usually put in place its own Excel-based to manage vessels’ provisioning. This usually, system covering orders, but not always takes the form of a fixed stock inventories and person per day feeding rate. reporting to the Each vessel will send an order to Garrets customers. “Excel who will then source the products with the does what we need, relevant suppliers. This service operates everyone knows how worldwide and the purchasing decisions are to use it, plus the ships made according to the vessels’ trading and land-based offices patterns. already have the Garrets has a standard list of items, to software, thus there which, shipowners/operators can add their are no IT conflicts. own requirements. In this way, the company The vessels therefore will know that the basics are covered while can easily contact us still allowing the seafarer to order whatever he directly via this or she wants, Brown explained. system,” Brown Although flexible, Garrets prefers to explained. operate by undertaking a major storing Today, vessels need every two months with a top up of fresh good quality, simple provisions every 10-14 days. However, in products, which allow some cases the number of storings depends the cooks to produce upon the size of the vessel and its current healthy food to suit the trading pattern. tastes of those on board. The company uses a network of ship For example, Garrets suppliers and is not contracted to a particular recently announced free outlet. However, Brown said that Garrets had range egg policy is part worked with some suppliers for over 20 years. of this need. With the By being independent, this allows the numbers of different

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INDUSTRY- PROFILE GARRETS

“I was recently on board a vessel with an planning, stock control, purchasing plans and the company has customers worldwide. excellent cook. His speciality was baking and hygiene. Brown then gave an example of a major every day he made a batch of fresh doughnuts. Vessel inspections are carried out and tanker company that switched its supply As you can imagine, this made him very training given as necessary. For newbuildings, source. He claimed that this particular popular and it certainly made for a happier Garrets offers assistance with galley design company was not happy with the level of ship,” Brown commented. and initial storing services. service previously experienced. Garrets agreed Gaining access to vessels, especially a schedule for the takeover, which enabled the Expiry dates tankers, has become more challenging, mainly supplier to settle in one group before the next The chief cook must ensure that the stock is due to the introduction of the ISPS Code. one arrived. The masters were used to properly rotated and all the items are within “This is one of the reasons we favour local working with catering concerns, so were used their expiry dates. In certain ports, owners and suppliers,” Brown said. “They know the port to the culture. operators can receive large fines for having agents, how the local ‘system’ works and any The primary change was how the communi- expired stock on board. “We are seeing more possible issues with a particular berth.” cations were handled with both the shore- galley inspections and expiry dates are an “With virtually all deliveries for tankers based operations and the shipboard ‘easy find’ for any official,” Brown said. being done by barge, we insist that our order management. By working with both, Garrets Hygiene is always very important, but with must go out on the same vessel that owners managed to quickly introduce its system, the ILO MLC 2006 convention approaching, have arranged for their own orders. This saves understand the needs of each individual it will be more closely inspected, so cleaning time and money as owners only have to pay vessel, which in turn allowed the feeding rate routines must be in place and more for one barge and the crew only has to deal to be brought under control with minimal importantly – followed, Brown thought. with one delivery,” Brown explained. “Local disruption on board. Garrets also supplies consumables, such as expertise and flexibility is vital for this.” By linking up the deliveries, the customer cabin/galley stores, including cleaning Garrets policy is one of steady and estimated that Garrets had saved the company materials. sustainable growth and having systems and between $8,000-$12,000 per vessel per year, Brown explained that the company acts people in place ready for fleet growth. The compared with the previous provider. For a more as a catering consultant by providing company is currently managing 672 vessels fleet of more than 20 vessels, this added up to support for customers, both shipboard and and, according to Brown, is looking to expand a reasonable amount of money, Brown land-based, on subjects such as menu further. The Far East is a growing market, but reasoned. TO

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INDUSTRY PROFILE – MILESTONE MARINE ew commercial management concern Danish newcomer Milestone Maritime has been gradually adding to its vessel portfolio since opening its doors for business on 1st June 2009.

ssentially, the company has set administered by the Danish Maritime Authority, already have now.” itself up as a commercial having switched from NIS. The other three He also said that he had not ruled out the shipmanager looking after small Furetank vessels fly the Swedish flag. possibility of developing some kind of pool Echemical and products tanker. It was As well as commercial management, the arrangement that could involve both present formed by Donso-based Furetank and Alvstank, company now offers competitive brokerage, and new clients. following the cessation of their chartering vetting and operational consultancy to the oil Milestone mainly trades on the spot and agreements with Broström Tankers, once it was and chemical industry. COA markets today, but in addition, has sold to the AP Moller-Maersk group. Milestone’s vetting department offers full concluded longterm timecharters. Last November, Holbaek-based Milestone support on operational matters, such as TMSA, “We are always open for new ventures Marine announced that it had won contracts to KPIs and incident investigation. Close contact is suitable for our exclusive tonnage”, Weinreich commercially manage eight 17,000 dwt to kept with the oil companies’ vetting departments, said. “We are 'in the market' for additional 22,000 dwt oil/chemical tankers on behalf of national authorities and international staff and hope to take on a couple of more Bremen-based Rigel Schiffahrts. Six of the organisations to enable the team to keep the people in our chartering and operation vessels are operating in CPP trades, while the customers up to speed with new rules, national department during spring 2010.” other two are involved in the DPP cargo sector. and international requirements and standards, He agreed that the oil and chemical market In January of this year, Furetank took over plus any edicts from the oil companies. have been very poor for quite some time now the technical management of the IMO II type The company team ranges from master and therefore it was very difficult to predict 14,000 dwt orthern Ocean, handing over the mariners to naval architects and most have how many players will remain solid in the commercial management of the vessel to long experience in the tanker industry under years to come. Milestone Marine. The vessel’s owner is managing director Soren Weinreich. Weinreich concluded that he had a firm Donso Bunker. Weinreich told TAKEROperator; “ For the belief that as long as his clients maintained the Similar to three other vessels in the fleet, the future, we hope that we will be able to attract high quality of their tonnage, there will be a orthern Ocean flies the Faroese flag, which is more tonnage, similar to the tonnage we home for Milestone Marine in this sector. TO

‘Tanker Vetting’ by Tim Knowles* BOOK REVIEW - A Critique

In this long needed small book**, He clearly demonstrates that the freight system and results from TMSA. Tim Knowles with his many rate/price is not the sole arbitrator when He pointed out the importance and years of experience of tanker chartering a tanker, that vettings are generally prominence that TMSA results are now vetting for an oil major, provides performed by charterers for each and every being given by many charterers within their a concise understanding of the service a vessel will perform (some carry out vetting process and the need for operators to issues involved. 90,000 or more per year!), that vetting is not ensure that any changes in their TMSA In doing so, he dispels a number of myths, the result of a third party inspection of the profile are communicated to customers and long harboured by many shipowners, vessel and to receive a written statement that recorded in the OCIMF database. operators, their staffs and many of those on the vessel is approved is rare these days. In all, a very helpful reference book for all the commercial side of the business. Knowles clearly defines the reasons that those involved in the business of owning, The author explains that vetting is a risk tankers are vetted, the components of operating or commercially involved with assessment process with the objective to vetting, details of the processes generally tankers, or any other type of vessel. evaluate the exposure of the charterer to the adopted and the impact of vetting on the Perhaps a few minutes spent browsing risk of an incident or poor performance when chartering business. through these details provided by Tim using a third party tanker. He mentions that vetting is now being Knowles will not only avoid a lengthy and This book provides, to what after all is a practiced in other sectors of the maritime acrimonious communication with the very dry subject, an interesting, concise and business, primarily drybulk, but also container. charterer’s vetting department but expedite easily digestible clarification of the vetting He also looked to the future, speculating that the fixture of the vessel.  process. It is livened-up by insertion with use of computers and common data *Reviewed by Captain Chris Allport, FI, throughout the text of ‘notes from the author’ feeds, vetting will remain but become less Gout-Rossignol, 31st January 2010. **Published by Witherby Seamanship providing personal observations based upon complicated with less ship inspections as the International, January 2010, ISB: 978 1 Tim Knowles’s long and valuable experience. focus moves to the operator’s management 905331 93 2, price £25.

08 TANKEROperator  March 2010 p2-24:p2-7.qxd 26/02/2010 10:04 Page 9

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INDUSTRY - US REPORT

Jones Act tankers cause massive headaches This year’s CMA event is taking place at a time when US tanker companies, especially those involved in the Jones Act operations, were suffering perhaps a bit more than most.

his is well illustrated by the liquidated damages in the event of late Services Corp and to Aker ASA and assigned situation with the ongoing saga of delivery of these vessels under the terms and its rights of about $3 mill in deposits for long Aker Philadelphia Shipyard conditions agreed under the new agreement. lead equipment to AKPS. T(AKPS) and its 12 Jones Act Also, the exclusivity originally agreed Due to the revised pricing structure, total product tanker series for American Shipping between AKPS and OSG and between revenues on the existing shipbuilding Co (AMSC) and Overseas Shipholding Group AKPS and AMSC for the tanker contracts with AMSC were reduced by (OSG). In addition, Crowley bailed out construction programme was eliminated, $9.7 mill. bankrupt US Shipping Partners series of allowing Aker to pursue other opportunities Aker said that in accordance with EU IFRS product tankers building at NASSCO (see for the vessels. standards, the shipyard is now recognising page 12). AKPS and AMSC also agreed to cancel that the last nine tankers of the 12 tanker order On 11th December, AKPS delivered the the options beyond Hull No 20. The latter as one single project, thus revenue and eighth in the series of 12 product tankers to still maintained the four options for Hulls expense are taken on a single project basis. As AMSC and OSG and entered into convoluted Nos 17-20. of 31st December last year, Aker said that the agreements with OSG, AMSC, Aker ASA and project was around 74% complete. various other related parties. Fixed costs This negatively affected Aker’s 2009 results As part of the agreement, AMSC sold its As part of the settlement agreement, fixed and at the end of the year, the shipbuilder had rights to buy two tankers in the 12-vessel costs were negotiated on the remaining tankers four tankers still under construction. This year, newbuilding programme to OSG in order to and AMSC agreed to pay about $2.6 mill in Aker forecast that revenues would be resolve AMSC’s ability to finance these credit enhancements to the construction generated from additional work completed on vessels. AKPS further resolved to pay financing – ultimately to Caterpillar Financial the remaining four tankers being built for

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INDUSTRY - US REPORT

AMSC and OSG. The company said that if series, Aker said. The company said it would December 2019, upon satisfying certain full capacity is maintained, targeted an continue to pursue orders in the Jones Act conditions, including the timely delivery of EBITDA margin of 6% or better, over the containership, product and shuttle tanker the remaining vessels and the satisfactory project, which is scheduled to be completed in markets. Offshore wind turbine support was refinancing, or extension of AMSC’s vessel the first quarter of next year. another area being evaluated. debt and bond obligations. The company said that this year’s key At the end of 2009, AMSC’s seven vessels focus was to secure new orders to increase its No change to Jones Act operated by OSG were chartered to Shell, BP work backlog. The start of production for the Aker also said that market experts believed and Tesoro. The remaining three vessels were first unsecured tanker (Hull No 17) is that significant changes to the Jones Act were expected to be delivered in the second and scheduled for the Spring of this year. unlikely. The company said that in evaluating third quarters of 2010 and the first quarter However, this depended on securing a firm future risks on its ability to construct the of 2011. order and/or the financing. vessels, it was found that its ability to meet As a result of the settlement agreement, the Despite no firm orders in place, AKPS had anticipated learning curves and throughput, company said that it had improved its liquidity already made prior purchase agreements for as well as the availability of skilled workers and was now in a better position to service its equipment for Hull Nos 17-20. Aker said and the ability of maintaining stable suppliers debt obligations of its senior lenders. In that if Hull No 17 was not built, the network and sub-contractors, was a cause addition, AMSC said that it had stable long company would incur expenses in excess of for concern. term bareboat charters, that pending the $15 mill. It admitted that if there was a long For its part, AMSC explained that under the satisfaction of certain conditions, would all delay in starting to build another series agreement, it will assign the two shuttle tanker become 10 year charters. following the delivery of the 12 product shipbuilding contracts to OSG. The first of Any profit sharing would be in addition to tankers, the company would be hard pressed these was delivered in December last year, the bareboat rate paid and would depend on to continue operating. while the second was scheduled to be charter rates negotiated by OSG and the In addition, as multiple vessels were in delivered in the fourth quarter of 2010. company’s ability to operate the vessels’ production at any one time, lack of continued Therefore, AMSC’s fleet will consist of 10 cost-effectively. firm backlog would cause operational product tankers all of which will be under AMSC said the short term did not bode well inefficiencies for completion of the long term bareboat charter to OSG. Under the for any profit sharing, but the longer term was remaining vessels in the current 12-tanker agreement, these charters will be extended to more positive. TO

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INDUSTRY - US REPORT Crowley extends tanker portfolio Last July, a settlement agreement approved by the US Bankruptcy Court Judge in ew York paved the way for Crowley Maritime Corporation to pick up the management of five US flag newbuilding product tankers.

his agreement allowed investment agreed to release its ownership interest and Evergreen State, which upon delivery, are due concern - Blackstone Group - to management role within the company. As a to be chartered to the US Military Sealift severe its links with troubled US result, Blackstone continued the operation Command. TShipping Partners and to form a under name of American Petroleum Tankers. The Sunshine State was the first vessel new company – American Petroleum Tankers Crowley Maritime Corporation was then Crowley took delivery of since the company (APT). appointed as the construction manager for the was contracted by APT to handle the shipyard In effect, the new company became three tankers being built at the time and the construction management and the overall responsible for five MR tankers, three of technical manager for all five vessels. In vessel management, crewing and operations of which are in operation and the other two due addition, DVB Bank SE’s Product Tanker the company's growing fleet. to be delivered from shipbuilder NASSCO in Group arranged debt financing to the tune of In addition to the five 49,000 dwt MRs, San Diego this year. Originally, they were to $250 mill. Crowley has two 1981-built 42,300 dwt US be owned by a joint venture controlled APT’s current fleet includes the Golden flag product tankers – Blue Ridge and Coastal primarily by affiliates of The Blackstone State, which was delivered in January 2009 Ridge – on its books. Group and US Shipping Partners. The latter and is on long-term charter to BP, the Pelican All the vessels operate within the Jones Act had filed for bankruptcy protection under State, which was delivered in June and is on in US coastal waters. The fleet also includes a Chapter 11 earlier last year. long-term charter to Marathon, plus the series of articulated tug/barges (ATBs), plus Subsequently on 17th July 7, 2009, the recently delivered Sunshine State, chartered to another three newbuildings, which when Bankruptcy Court approved a Settlement Chevron USA. delivered in 2012-2013, will be the world’s Agreement under which US Shipping Partners Still to come are the Empire State, and the largest ATBs.

The Sunshine State was the third MR out of five delivered by NASSCO and taken over by Crowley. She was chartered to Chevron USA.

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INDUSTRY - US REPORT

Crowley’s tanker fleet comes under the banner of subsidiary Crowley Petroleum Transport and is managed by Intrepid Ship Management, based at Jacksonville (Fla).

Escort duties The Crowley group is also famous for the supply of tugs and barges, many of which are used for escort duties on the US west coast, including Alaska. For example, in Valdez, Crowley has a contract with Alyeska Pipeline Service company's ship escort/response vessel system (SERVS). SERVS is claimed to be the largest oil spill prevention and response organisation in the world. Through this commercial partnership, The 1981-built product tanker Blue Ridge seen in San Francisco Bay. Crowley provides tug escorts for tankers traveling through the Prince William Sound to and from the Valdez Marine Terminal, specifically designed for tanker escorts and series of twin screw tugs available of up sometimes under the most extreme weather assist work in the region and have to 7,200 hp. conditions. Secure docking and undocking firefighting, emergency and, oil spill As well as operations in Alaska, Crowley’s operations are also provided at the oil response capabilities. escort and harbour tugs cover the Cook Inlet, loading terminals. The three Alert class tugs have Azimuthing the Puget Sound ports of Seattle and Tacoma The main tugs located in Alaska are the drive propulsion units developing 10,192 hp, plus others, San Francisco Bay, Los Alert class and Prince William Sound class while the other two large tugs are fitted with Angeles/Long Beach and San Diego. tugs. These vessels, which Crowley claimed Voith Schneider propulsion units developing Last month, Crowley signed a contract with feature the best available technology, were the same horsepower. In addition, there are a Bollinger Shipyards to build two newly

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March 2010  TANKEROperator 13 p2-24:p2-7.qxd 26/02/2010 10:05 Page 14

INDUSTRY - US REPORT

the Gulf of Mexico region with a total of 32 drydocks in Louisiana and Texas.

Titan acquired Another one of Crowley’s strings to its bow concerns salvage and oil spill response. This side of the business came into being in 2005 when Crowley acquired salvage concern Titan Maritime, which today operates worldwide as Titan Salvage. Since then the company has joined the Marine Alliance Response (MRA), set up to offer owners and operators emergency oil spill response around the US coasts under OPA 90 compliant new US Coast Guard regulations 24/7. MRA is a consortium of emergency towing, lightering, salvage and marine firefighting companies. The limited liability company is comprised of Crowley, Marine Pollution Control, Titan Salvage and Marine Hazard Response - a joint venture of Wild Well Control Crowley’s new Ocean class tugs are under construction at Bollinger. and Williams Fire and Hazard Control. Changes in the response to federal designed ocean going tugs, with options for vessels are a reflection of our continued regulations and similar developments in the additional vessels. commitment to that. Moreover, they will States have prompted MRA to expand and These 10,880-hp tugs mark the beginning of provide our crews with ergonomic strengthen its capabilities. Today for a small Crowley’s newbuild programme to further accommodations and comforts needed to fee, MRA customers have access to high enhance its ocean towing, salvage and minimise fatigue and injuries." horsepower tugs, lightering barges, portable offshore support capabilities. These next generation towing vessels are pumping equipment, marine fenders, salvage Crowley said that the new tugs will be to be fitted with twin-screw, controllable- gear and expertise, firefighting equipment and ideally suited to work with the company’s new pitch propellers in nozzles and high lift trained firefighters to meet federal and state 455 series heavy lift deck barges. rudders for a combination of performance requirements, the company said. Additionally, the tugs will be outfitted for, and and fuel economy. The Caterpillar supplied capable of, rig moves, platform and FPSO unit main engines and generators are all EPA Singapore salvage base tows, emergency response and firefighting. Tier II compliant, with the ability to be Last year, Titan Salvage opened a new Crowley subsidiary, Jensen Maritime upgraded for future environmental standards, salvage response facility in western Consultants played a key role assisting for cleaner emissions and a lower Singapore. It is a 45,000 sq ft, self-contained Crowley veteran Ed Schlueter and a cross environmental impact. facility, which now serves as Titan's functional team in the design of this new class During construction the vessel will be corporate office in the region. of vessel. The new tugs will be designated the documented and receive a Green Passport The complex features a fully equipped Ocean class, with the first two named Ocean Certification. Further environmental workshop to service and repair Titan's Wave and Ocean Wind. They will be protection is provided by the tugs' double- extensive inventory of salvage equipment, constructed at Bollinger Marine Fabricators in hulls, which are designed to prevent any a dedicated diving equipment workshop Amelia, Louisiana, with deliveries scheduled overboard discharges of fuel or fluids. All and specialised storage and equipment for the third quarter of 2011 and the first tanks containing liquids are inboard of the handling space. quarter of 2012 respectively. side shell. It was set up to expedite emergency They are designed to have a minimum The tugs will meet all SOLAS and ABS response in the region in support of Titan's bollard pull of 150 tonnes, and their range will criteria, and including ABS Fi-Fi 1 continued international operations and to be about 12,600 miles at 15 knots free running firefighting standards. Additionally, the consolidate the salvage company’s operations speed. The tugs' features are designed with Ocean class vessels will have the capability to in the Southeast Asia. personnel safety as a priority. The waterfall support salvage and rescue towing As a result, Titan increased its personnel style winch, shark jaws and retractable pins opportunities, as well as the US Navy's significantly through the redeployment of can all be controlled from the wheelhouse, SUPSALV contract. existing workers and the employment of keeping the deck clear of personnel and Bollinger Shipyards owns and operates 12 Singapore nationals. creating a safer working environment. shipyards located between New Orleans and Another boost to the salvage arm occurred Tom Crowley Jr, Crowley chairman, Houston with direct access to the Gulf of last year when Titan’s Todd Busch was elected president and CEO said. "Crowley has always Mexico, Mississippi River and Intracoastal International Salvage Union (ISU) president. been an industry leader in tug design, Waterway. The company also claims to be the Busch is also senior vice president and general technology and performance, and these new largest vessel repair/conversion company in manager of parent Crowley. TO

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INDUSTRY - SINGAPORE REPORT Asia/Pacific showcases its expertise The forthcoming 11th Asia Pacific Maritime (APM), organised by Reed Exhibitions, will be held between 24th and 26th March at the Singapore Expo centre.

rom humble beginnings, the bi- ennial show has grown from 241 exhibiting companies in 2004 to F841 in 2008, the last time this event was held. The number of visitors also grew from 3,505 in 2004 to 7,058 registered two years ago with 8,000 plus expected this year, according to the organisers. The expo should defy the general downturn as more than 900 companies from 52 countries have confirmed their participation in the exhibition. Also this year there will be at

least 12 national pavilions, including those The organisers of APM hope for a good turnout. from China, France, Germany, Japan, the Netherlands, Norway, Romania, Singapore, January/February, page 17), to share the vision developments in Asian maritime law and South Korea and the UK, backed by their for green shipping going forward, including issues in international disputes, 26th March. respective national organisations. discussions on business and technological  Spotlight on Asia Series- on the current A total of 10 conferences and seminars issues and case studies. shipbuilding trends and capabilities in covering ship financing (including Islamic Kurt Feldtfos, senior sector manager of the China, Japan and India, 24th, 25th and 26th financing), maritime law, marine propulsion & Danish Marine Group, which is presenting the March respectively. auxiliary machinery, marine electronics & seminar, said: “The Danish maritime industry has  Green Ship of the Future seminar on 25th communications, tanker shipping & trade, green always been proactive in its role in ecological March. shipping and the business outlook in the responsibility and it is with this direction and The Spotlight on Asia series will be rolling respective Asian markets, will be featured. These mission in mind that we come together to put out distinguished speakers from the three have been designed around the theme ‘Shipping forward the need for the global maritime players featured countries - China, India and Japan. in Asia Today, Preparing for the Future’. to embrace the Green Ship programme. From India will be five speakers including The bi-ennial international maritime “We are confident that this approach will Lakshmi Venkatachalam, director general, DG exhibition and conference is being supported eventually be the key solution for companies Shipping, who will cover ‘Shipping - by some 27 industry organisations from 12 to tap on new business projects that involve Challenges in Painting Global Economic countries, including six from Singapore. green shipping and the sustainable sector is Landscape’, and Karan Madhok, CEO, The Kicking off the conferences on 24th March just making its mark in Asia. For the first time Institute Of Marine Engineers (India), who will be a keynote session featuring main speaker we are presenting at Asia Pacific Maritime will talk about the ‘Indian Shipbuilding Hennie van Schoor, Maersk Line's director of and this is exactly the right platform we need Industry- Perspective in the Global Market’. business performance for Asia Pacific. Joining to educate the industry professionals of the van Schoor is a panel of high-level shipping impending trends to come,” he concluded. China day executives, which include Dr Volkmar Said Thomas Yong, customer relations Other key highlights at APM 2010 include Wasmansdorff, executive vice president of manager - SE Asia & Taiwan, Aalborg ’China Day’ – a special feature on China’s Germanischer Lloyd (GL), Bill Smart, managing Industries: "As market leading manufacturer of maritime industry. Besides featuring a China director of Bengal Tiger Line and Divay Goel, highly efficient and environmentally friendly Pavilion that comprises key equipment director and head of Asia operations, Drewry equipment for the maritime market, the Aalborg manufacturers, shipyard and technology Maritime Services (Asia). The session will be Industries Group develops new green solutions providers, a visiting delegation headed by the moderated by David Hughes, a specialist marine to support our customers in building and government and commercial organisations, is writer based in the UK. operating their commercial fleet to the highest planned. Visitors can look forward to an array of standard for low environmental impact." free seminars, networking cocktails and Green ship The conferences and seminars include: - exchange sessions with the Chinese delegation. TO APM, in partnership with the Danish Marine  Ship Financing conference: Navigating Group, will also be presenting the ‘Green Ship uncertainties”, 24th-25th March. *The latest issue of TAKEROperator of the Future’ seminar (see TAKEROperator,  Asian Maritime Law conference – recent Magazine will be available at the show.

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INDUSTRY - SINGAPORE REPORT Singapore – a major shiprepair hub

ying strategically between the For many years, Singapore FPSO, FSO and other conversion projects. It MEG/Suez and the Far East, has been a major hub for has built up expertise in the area of rig deviation time is little, or none at building and is constructing an FSO for Lall. The vast anchorages and a shiprepair and conversions. Lukoil for use in the Caspian Sea. leading international airport lend themselves to all manner of ship supplies, crew changes, of Sing$35 mill, the scope of work includes Drydocks World bunker supplies and afloat repairs, plus other major steelwork renewal, complete renewal of There are several other repair and shipbuilding services. the entire accommodation block, major concerns on the island republic, including In addition, companies such as Sembcorp electrical and instrumentation work in the Drydocks World-Southeast Asia, part of the and Keppel have built up considerable engine room, mechanical work and pipework. huge shiprepair/shipbuilding Dubai-based expertise in repair and conversions, as well as Work on this product tanker recently started. combine. offshore construction. Besides the above, other major contracts Marine activities are focused on four For example, in February Sembcorp secured recently by Sembawang Shipyard shipyards in Singapore and Indonesia, namely, Marine’s subsidiary Sembawang Shipyard included the refit and upgrade of two drillships. Drydocks World – Graha, Nanindah, Pertama secured major longevity, upgrading and and Singapore, which between them offer 29 damage repair contracts worth Sing$130 mill, Long term business building berths, eight floating docks, and a reinforcing its reputation as a world-leading Sembawang also announced the renewal of its specialised rig building yard. shiprepair yard, the company said. long-term contract with the Eitzen Group. Plans are also in place to expand operations These include the following contracts: Signed on 28th January 2010 in Singapore, further on Batam Island with the construction The first was a longevity project awarded this long-term contract was the reaffirmation of a new yard PT Batam Maritime Centre. by North West Shelf LNG Venture, one of the of the close relationship enjoyed between the Drydocks World – Southeast Asia was shipyard’s Favoured Customer Contract (FCC) two companies, Sembawang said established in April 2008 as a result of the clients, for the life extension of its LNGC, The Eitzen Group controls some 100 ships purchase of Labroy Marine and Pan United orthwest Snipe. trading worldwide and under this contract, the Marine shipyards and is a member of the The six partners in the North West Shelf company will continue to send some six to Dubai World group of companies. Venture gas interests are BHP Billiton eight ships to the yard annually for scheduled Furthermore, the integrated shipyards are Petroleum (North West Shelf), BP and upgrading repairs. supported by the group’s own ship chandlery Developments Australia, Chevron Australia, However, the shipyard said that the above service available 24/7. Japan Australia LNG (MM), Shell contracts were not expected to have any Following the problems associated with Development (Australia) and Woodside Energy. material impact on the consolidated net Dubai World, the group said that Drydocks orthwest Snipe is scheduled to arrive in the tangible assets per share and earnings per World and its subsidiaries were not included in shipyard in September 2010 to undergo share of Sembcorp Marine for the year ending the proposed restructuring process for Dubai sophisticated life extension work, which includes 31st December, 2010. World and its real estate related subsidiaries. ballast tanks blasting and coating work, hull Sembawang Shipyard is a wholly-owned In a statement issued last November, the structural enhancement, integrated automation subsidiary of Sembcorp Marine and has one of group said that it had been in constructive system renewal, HVAC and refrigeration system the largest integrated shiprepair facilities in dialogue with its lenders for several months renewal, cargo and ballast valve actuator system Southeast Asia. The shipyard's reputation is and its financial profile did not require it to be replacement and boiler system renewal. based on the company's commitment to high included in the more wide-ranging This will be Sembawang Shipyard’s second HQSE standards, timely delivery, superior restructuring process envisaged. longevity contract undertaken for the North customer service and innovative solutions, the Drydocks World had reacted promptly to West Shelf LNG Project following the company said. the challenges of the global economic successful completion of the life extension Besides its expertise in the tankers, bulk slowdown, which have impacted the shipping work on orthwest Sanderling in August 2009. carriers and container/cargo vessel sectors, the sector globally. The company has Sembawang Shipyard’s has been shipyard is also a specialist in niche markets, implemented extensive operational particularly successful is winning specialised such as LNGCs, passenger ship improvements over the past year. LNGC life extension work. conversions/upgrades, FPSO conversions, The group continued to have sufficient The second contract was awarded by offshore conversions and newbuildings, financial capacity to service its debt and Sembawang Shipyard’s regular customer from damage repairs, as well as chemical tanker, remained well positioned to take advantage of Taiwan. This was for the repair of major fire LPG carriers and naval vessels. the expected improvements in the shipbuilding damage to a 2005-built product tanker. Rival Keppel also has a number of VLCC and offshore industries in the coming years,

With a contract value estimated in the region dimensioned drydocks and is involved in the statement concluded. TO

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INDUSTRY - SINGAPORE REPORT An equipment manufacturer’s take on Singapore

Leading Canadian-based Asian region. So from a service and supply similar size. So yes we believe that an ice navigation equipment perspective, it is a convenient place for navigation radar is necessary and a manufacturer and supplier Rutter vessels to stop and either service, or install responsible piece of equipment to have. said that its interest in their bridge equipment. Those who use our Ice Navigation radar find Singapore stems from the “This central location also makes that it provides them with higher definition excellent match that its radar Singapore a logical distribution centre for the images that also help them optimise routes products have with the changing entire region. We do business in Vietnam, and reduce fuel costs when travelling in needs of tanker operators. Malaysia, Indonesia and the Phillipines, so heavy ice,” Snow said. At APM, Rutter will be showcasing its we very much value our supply chain Rutter is also involved in the supply of products. The Sigma S6 small target partners in Singapore to help us with that VDRs. However, the VDR retrofit business is detection radar is excellent for anti-piracy, as business,” Snow explained. coming to an end in July 2010. Snow said it can see, alarm on and track small fast Rutter is also a pioneer in ice navigation that the company had achieved its market moving targets that conventional radars miss, radar and with the build up of traffic forecast penetration goals and had an installation base the company said. in the Barents Sea, Baltic and Russian Far that will keep Rutter in the VDR business for The company is also demonstrating its new East, the company is actively marketing its a very long time. “Our business plan sees a oil spill detection radar, which Rutter products to owners/operator with ice class demand for taking that VDR data collected believes is very timely considering the vessels. and using it to assess and optimise vessel emphasis now being placed on environmental Snow said that the Arctic regions were fragile performance,” he said. protection. environmentally sensitive areas and for that He also said that tanker operators would Rutter’s Paul Snow explained that the reason technologies were needed that enable always be a significant customer for Rutter. bottom line with this product, again because icebergs to be seen and avoided, plus multi-year “Our products are industry leading and we of the depth in specialised radar products, is ice that can be the consistency of cement. see the tanker industry as early adopters of that it can detect the oil more reliably, in all “A bergy bit or growler can be 60 times as technology. So it is an excellent fit for us,” weather and across a wider range of sea difficult to see than a conventional target of he concluded.  states than other systems that we have compared with it during trials. “We can all appreciate that the earlier a spill is detected the more quickly a response “As US regulations are now attaching the can be marshalled and the lower the cleanup “ costs. As US regulations are now attaching responsibility for the cleanup of the oil to the responsibility for the cleanup of the oil to the owner of the oil we can expect this to be the owner of the oil we can expect this a market driver for this product,” Snow said. to be a market driver for this product,” As for the attraction of Singapore, Snow said that for Rutter, it is the fact that Singapore is centrally located in Southeast ” New company launch at APM

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INDUSTRY - SHIPMANAGEMENT InterManager welcomes new secretary general This year should be a something of a watershed for InterManager, the international shipmanagement association. irst - the association will welcome project to follow on from the KPIs. a new secretary general – Captain “Of course InterManager is also looking to Kuba Szymanski - to replace the expand, but any such expansion will be based Fretiring Guy Morel and, second - on quality not merely quantity,” he stressed. several workshops are planned in relation to Turning to the comprehensive KPI project, its huge KPI project, which should be nearing he said that this was very much on track. For fruition by the end of the year, ready for this year, several stakeholder meetings have launching in 2011. been planned, the first taking place this month TAKEROperator talked with Szymanski (March) in London. “These meetings create about the task ahead and how he sees the golden opportunities for the industry to future in navigating the association through familiarise itself with the project and, more various obstacles. importantly, to participate in it and have their He explained that his main aims will be to say”, he said. “We are also responding to the further unite the shipmanagement industry. industry’s request to widen the attendance and “By being united, we can achieve even more. will be holding meetings and workshops I plan to start by organising more regional outside of Europe to allow greater meetings, conferences and seminars, participation.” particularly in the Far East. Information collated from more than 1,000 “I also want to further improve the image of vessels should be completed well before the shipmanagers in the eyes of the general public end of this year. Marintek is playing a very Captain Kuba Szymanski and to make our industry more appealing to important role, but it is the KPI committee, the young generation. This work goes hand in led by George Hoyt, who is pioneering this swiftly to support the seafarers. hand with InterManager’s efforts to promote initiative, Szymanski said. “We are also co-operating very closely with the positive image of shipmanagers among InterManager plans to work more closely ITF to make sure seafarers’ rights are being shipowners and I will continue this,” he said. with other organisations and has already respected,” he emphasised. He also said that he would continue the scheduled a series of meetings with OCIMF, Plans for this year include further co- good work Guy Morel achieved over the past ITF, Intertanko, which will immediately operation with all associations, “keeping an few years, particularly with the KPI project, follow Szymanski’s taking on the secretary eye” on the developments and raising the and will aim to build on his successes by general’s role this month. “It makes great profile of the shipping industry – and increasing the links InterManager has with sense to work together. Fellow associates are therefore the seafarers world – among the other organisations like BIMCO, Intercargo, already participating in the KPI stakeholders general public, he said. Intertanko, the ITF, OCIMF and for example, workshops and play crucial roles in them. As for the thorny subject of remuneration, Szymanski will also continue to represent However, I am confident that there is scope Szymanski said; “Members are indeed finding Intermanager at the IMO and EU. for further co-operation and our ties could be it more challenging nowadays, particularly On a domestic level, he said that he planned tighter. We have a lot in common – we all when their principals’ revenues suffer. But to listen and respond to members’ views and serve seafarers!” he said. there is always a place for a good service one of the first internal projects would be to This year has been declared the ‘Year of the provider and shipmanagers are very re-invigorate the InterManager members’ Seafarer’ by the IMO and Szymanski thought sophisticated providers of extremely complex website. that InterManager had already strongly services”. demonstrated its priorities, whether it is a Difficult issues seafarers’ year or not. He referred to the Hebei Cadets on the agenda For the longer term he said that he wanted to Spirit, Full City and, recently, the Cormorant Cadet training is another area to be addressed tackle the difficult issues like the cases, which clearly demonstrate and Szymanski said that InterManager was criminalisation of seafarers and to start a new InterManager’s ability to act quickly and very proud of its initiative. This has led to

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INDUSTRY - SHIPMANAGEMENT

session reports,” he said. “We strongly believe in the philosophy of Port State Control is becoming an “ increasing relevance in certain areas of the ‘education – not regulation’” world. Szymanski said that he recognised this and was very pleased with the co-operation ” between the association and the Paris MOU. Captain Kuba Szymanski, secretary general, “For example, just last month (February), Intermanager InterManager held a regional meeting for its members and the shipping community in Monaco where Richard Shiferli, Paris MOU every member agreeing to have a cadet on to monitor problems, such as the general secretary, explained the ‘new regime’. board of every vessel and the majority were criminalisation of seafarers and piracy and We all welcomed the new structure and the seeking to train two cadets on their vessels. they are working together to find solutions. scoring matrix which will, in fact, benefit Some members are now seriously The association is very active at the IMO. good shipmanagers, ie our members. considering ensuring that their newbuilds are For example at the next IMO session (22nd- “We hope to continue our co-operation and delivered with specially dedicated cadet 26th March), InterManager will be will definitely organise more regional spaces, and that can mean up to 10 cabins represented by four members. “This level of meetings to promote awareness of this ‘new being designed into the accommodation. attendance is necessary in order for us to regime’. We strongly believe in the “This is very important for us and we hope participate in different meetings and give our philosophy of ‘education – not regulation’”, to start discussions with other associations and full attention to relevant issues being Szymanski said. societies regarding newbuildings. Nowadays, discussed,” Szymanski explained. He explained that the role of secretary vessels are delivered with very little space for “We also make sure that our members are general was like that of a skipper, who does cadets and we believe that is an unnecessary kept up to date and fully appraised on the new not bring his vessel to port safely without limitation. We need to change this,” he and prospective legislation through our listening to his navigator and having full back stressed. membership communications and our website up of other officers and crew. “I do strongly

InterManager has formed active committees where members can view relevant IMO believe in team work”, he concluded. TO

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INDUSTRY - SHIPMANAGEMENT A software suite for all occasions uring that period, which began ABS autical Systems, a configurations and is fully integrated allowing with the launch of the newbuild owners and operators the ability to share data program, ABS Nautical Systems provider of integrated fleet between individual software modules and Dhas expanded its business by management software, external accounting systems. signing 30 new contracts in just 26 weeks and forecasts even stronger growth in 2010. experienced record growth Separate or complete modules “By integrating our ship maintenance in the second half of 2009. Each module can be purchased separately, or software with the classification and survey as a complete suite. NS5 interface is based requirements of ABS, we will have the ability upon the Windows standard, which allows to streamline the owners’ inspection process customer, we appreciate the opportunity to users to move easily between modules and to and move towards developing a more receive world-class software licenses on our quickly access the information they need standardised, class-approved maintenance newbuilds for a full year at no additional cost, through a centralised and integrated database. program,” said Karen Hughey, president and especially in these trying economic times. The entire suite or specific modules can be COO of ABS Nautical Systems, speaking at “Of the five newbuildings we recently purchased, reflecting an owner/operator’s the end of January. “The tremendous success ordered, four of them are oil/chemical tankers, specific needs. The hull inspection, of the newbuild program has prompted us to which will be classed with ABS and will maintenance and repair modules and the Web- double our customer support staff and develop utilise all of the modules included in the based drawings management tool offered as expanded offerings to provide greater value newbuild program – hull inspection, part of the newbuild program are also for our customers.” maintenance and repair and Web-based available as part of NS5. One of the first class-integrated, fleet drawings. The fifth is a chemical tanker being Humboldt has installed NS5 modules, such maintenance solutions, the newbuild program built in Japan, which is classed with ClassNK as maintenance and repair, drydocking, offers free hull inspection, Web-based and this vessel will also be integrated with the purchasing and inventory and replication drawings management and maintenance NS5 software modules,” the company manager on more than half of its fleet, management software to all ABS-classed explained. including gas carriers, chemical and oil vessels built after 1st January, 2009. Humboldt also said that it did not have any tankers. Several other vessels were still in the TAKEROperator spoke with both ABS immediate plans to integrate any other NS5 implementation stage. “We expect this Nautical Systems and user Humboldt modules, but might incorporate the drydock software to be the standard for maintenance Shipmanagement about their experiences with and structural maintenance modules in the and material management in all ships under this software. future. “We would also like to build an our management,” a Humboldt spokesperson ”We are currently using the NS5 suite on interface between NS5 and our own shoreside said. our chemical tankers and it has been the purchasing application,” Humboldt said. The company said that the integration of the backbone for the maintenance of critical ABS Nautical Systems explained that its modules would help it track the availability equipment on our vessels,” said Francisco current fleet of software modules – NS5 – is and reliability of all the vessels’ equipment Lopez, Humbolt Shipmanagement. “As a an off-the-shelf solution with built in and systems, so that better resources could be

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INDUSTRY - SHIPMANAGEMENT

passport requirements. “Furthermore, ABS Nautical Systems is able to provide our clients with a variety of modules that enables them to assess their environmental impact and allow them to mitigate any issues before they arise. Our maintenance management modules record the maintenance work related to a vessel, provides a standardised method for onshore planning and tracks the structural condition of a vessel throughout its service life. “Our HSQE (Health, Safety, Quality & Environmental) manager module documents the audit reports, incident reports, drills and inspection reports and corrective action requests. Our additional safety management modules can dictate how and when vessel discharges should be handled and track the

A screenshot of the software in action. shelf life of inventory including hazardous materials, keeping vessel owners and allocated to ensuring the fleet delivers its requirements, to managing crew and payroll, operators compliant”, he said. cargo on time and safely. Because of NS5’s to organising maintenance programmes. As for the cost, Joe Woods, vice president, flexibility, Humboldt said that it could Through the newbuild program, the modules global sales & marketing said: ”With the customise the modules to fit the organisation’s integrate with classification and survey newbuild program, the first year of annual needs. For example, in the maintenance and requirements, streamlining the inspection fees is waived and customers receive up to repair module, the company has incorporated process and providing a more cost efficient seven days of consulting services, including its own requirements for cargo, valves, pumps and effective method of monitoring long term expenses to cover office and vessel etc into maintenance check requirements. ship maintenance and integrity. implementation. After 12 months, owners who Each month, a report is run on the Humboldt installed the modules both on wish to continue using the modules will be maintenance and repair module for a list of board the tankers and in the onshore required to pay an annual items that need attention, including those that management office, which manages and maintenance/licensing fee for each module.” were scheduled in the previous month and any oversees all maintenance work across the fleet Woods also said that more than 15 tanker outstanding issues for each vessel. This report providing the company with synchronised companies were using the modules, including is circulated to the superintendents and information across the databases with updated Chemikalien Seetransport, Phoenix Energy managers, enabling them to gauge progress. status’ and real-time data. Navigation, Orkim Shipmanagement, Satsuma This module also enables Humboldt to analyse Shipping and American Heavy Lift. fleet wide maintenance to detect systematic Green Passport The NS5 suite is currently available to all problems and identify critical areas where The company also thought that the system vessels regardless of classification society. preventative measures may be taken to reduce would help create a Green Passport in that if a Non ABS-classed vessels can also purchase future costs. certificate needed to be updated, a very the three modules offered in the newbuild In addition, budgeting and cost analysis detailed record tracking spare parts and program through the NS5 suite. However, tools help the company to develop cost maintenance for each ship would have to vessels built after 1st January, 2009 that class projections for upcoming maintenance work exist. NS5 modules allow the company to with, or transfer to, ABS receive and drydocking and to evaluate past track controlled and critical spares on board complimentary software, data entry and maintenance and equipment costs to forecast and to keep a more accurate history and an installation. future expenses. ongoing inventory of vessel equipment, Lehrer explained: “To build a strong asset Furthermore, Humboldt said that the systems and maintenance work. registry and database through the newbuild integration of the hull inspection module on Fernando Lehrer, director, ABS Nautical program, we have to wait until all of the parts the four newbuildings through the newbuild Systems’ product development explained: for the ship are recorded into the system. We program will be a huge advantage during the “The newbuild program will be especially then pre-populate the software with vessel vetting process when oil majors look at the helpful in tracking inventory for Green specific data gathered during the newbuild maintenance of critical equipment. “We’ll also Passport compliance. The three software phase, which includes ABS class surveys and be able to quickly find and access structural modules that are offered through the initiative certificates, ship models and structural maintenance and management data for co- are pre-programmed with technical data requirements.” ordinating the response to vettings,” the specific to the newly built vessel, including Finally, Woods said that ABS Nautical company said. relevant information extracted during the Systems had not examined the retrofit market ABS Nautical Systems explained that the construction phase. This means that each thus far, but has already expanded the integration of NS5 modules could help with newbuild will have a solid database on which newbuild program to include companies that facets of operational management for a vessel shipowners can start tracking hazards, transfer their vessel classification needs – from keeping track of regulatory consumables and other parts to meet green to ABS. O

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TECHNOLOGY – BALLAST WATER TREATMENT A wide choice of different capacities The IMO’s MEPC said last July that the number of ballast water treatment technologies amounted to six Type Approved systems with four additional systems being granted Final Approval and three granted Basic Approval at the 2009 session. he committee agreed that no December, 21 states representing 22% of IPTA explained that there is a rigorous further postponement would be tonnage had ratified the convention. testing regime that the treatment systems must granted for the fitting of At the IMO, there is optimism that the final undergo though the GESAMP scientific group Tequipment - capable of treating tranche of signatories needed would come this and the IMO’s MEPC, before they are granted ballast water to the “D-2” biological standard year and if this situation occurs, the approval to be used on board ship. in the BW Management Convention - to ships convention will enter into force in 2011, some These tests comprise the Basic Approval, having a ballast capacity of not more than 12 months after the total number of states and which is meant to show that the systems do 5,000 cu m, which are to be delivered in 2010. tonnage was reached, according to the not harm the environment or seafarers. Once This decision took into account the supply International Parcel Tankers Association gaining the Basic Approval, systems have to and demand side of the marine industry; that (IPTA) bulletin. undergo shipboard tests to attain the Final is, the increase in the number of approved Once the convention enters force, the Approval certificate to prove that they work at ballast water treatment technologies to effective dates within the convention will sea. The third phase is the issuing of a Test produce enough ballast water treatment units immediately become valid. For example, Certificate by the vessels’ flag states. by 2010 and the expected downturn in new vessels constructed in 2010 and 2011 having a According to the latest IMO circular, eight construction that year. ballast capacity of below 5,000 cu m will have systems have gained Final Approval and a At MEPC 59, the committee agreed to to be fitted with systems which meet the further 16 were at the Basic Approval stage. instruct the secretariat to prepare a draft convention’s biological efficacy treatment This was deemed to be sufficient for the resolution, requesting administrations to standards on the day that the convention earlier implementation date criteria, according encourage the installation of ballast water enters into force. to the MEPC. management systems during new ship Vessels built in 2009 with a ballast water IPTA said that it had become increasingly construction in accordance with the capacity of below the limit were granted clear that a number of issues still have to be application dates contained in the BWM dispensation, allowing them to trade until their dealt with. These included the handling and Convention, to be presented to MEPC 60 second special surveys, providing that they are storage of possibly toxic chemicals, the (March 2010) for consideration and adoption. not later than 31st December, 2011. systems’ maintenance and the potential The Ballast Water Convention came closer By 2012, all new vessels will have to meet increase in vessel fuel consumption that the to entering into force last December with the the treatment standards, while existing vessels systems will cause. signing of the protocols by Sweden, the must comply by 2014, or 2016, depending on There is also the need to integrate Marshall Islands and South Korea. their ballast capacity. From the entry into procedures with the vessels’ on board Safety This convention requires ratification by 30 force until the time specified for the fitting of Management System (SMS), as failure to do states, representing 35% of the world’s the treatment systems, vessel will be required so could lead to a deficiency under the ISM tonnage before it can enter into force. By to undertake ballast water exchange. Code, the association warned.

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2010 to the Geoje shipyard, where it will be However recently, the company unveiled the installed on board the specialist drillship. Auramarine Crystal Ballast, ballast water Stena decided not to wait to install a treatment system (BWTS). ballast water treatment system until the Thanks to technological innovations regulations are in place, as this would result featured in this system, it is claimed to be in taking the drillship out of service and energy-efficient, compact and easy to install. placing it into drydock. Additionally, Auramarine's solution does not As with any retrofit, the cost would include affect the time required for ballasting or de- the equipment, which would need to be added ballasting operations, or increase the duration to the cost of downtime and the drydocking of port calls. expense. The project is currently entering an “For Alfa Laval, the order of a PureBallast intensive type approval testing phase. This is 2500 for the Stena DrillMAX ICE represents progressing on schedule, and the first system a combination of firsts,” said Peter Carlberg, type approvals and final products are expected general manager of Alfa Laval Marine & to reach the market in the second half of 2010. Diesel. “As well as being the first order for Up to 2019, the market potential is our largest PureBallast system, it represents estimated to be substantial, as around 50,000 our first PureBallast delivery to the Stena ships will need to be equipped with a BWTS, fleet. This makes it yet another positive step the company said. in Alfa Laval’s long-term co-operation with In the Crystal Ballast project, Auramarine Stena.” said that it had four main goals as the Alfa Laval’s PureBallast installed on a PureBallast received full Ballast Water Type company was determined to provide the best Wallenius car carrier. Approval from DNV on behalf of Norwegian practical solution for shipowners and yards In addition, there was no guarantee that authorities on 27th June 2008. It was around the world. The project also strived for these systems would meet any future originally launched in 2006. a comprehensive understanding of ballast requirements. For example, the US is water conditions and flows on board ships, considering proposed phased legislation, Newcomer and aimed at a system that could be adjusted which would require treatment equipment of One of the newer challengers in the ballast and fitted for various vessel types and an efficacy standard for some organisms of water treatment markets is Auramarine. ballasting operations. Finally, the product had around 1,000 times more stringent than the Turku-based Auramarine is perhaps better to be competitive as regards its size, weight, present convention requirements. known as a leading manufacturer of heavy energy consumption and cost-effectiveness, Other regions may also impose stricter fuel oil supply systems and other auxiliary both at the time of installation and in standards and there have been suggestions that units for marine and power station engines. operation. the IMO Convention itself needs strengthening. IPTA rightly warns that as usual, the shipowner will be left with regulations to follow, but with no clear idea as to how to carry out the necessary forward planning to adhere to the new regulations. TAKEROperator has highlighted just some of the equipment available below in strict alphabetical order. PureBallast, Alfa Laval’s chemical-free system for ballast water treatment has been selected for 79 vessels of varying types, thus far. Developed in co-operation with Wallenius Water, Alfa Laval recently received its first order for PureBallast 2500, the largest version of the system. It will be installed on board the Arctic drillship Stena DrillMAX ICE. Featuring a flow rate of 2,500 cu m per hour, the PureBallast 2500 system will provide more than double the capacity of any previous version, the company claimed. The order came from Samsung Heavy Industries on behalf of Stena Drilling. The PureBallast system will be delivered in June Drawing of Auramarine’s Crystal Ballast system.

26 TANKEROperator  March 2010 p25-40:p39-50.qxd 26/02/2010 10:25 Page 3 Hilanders EMD00155EN

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PureBallast gives you the best of both worlds.

In the near future, IMO legislation will require ballast By choosing Pure Ballast, you choose world-leading water treatment from vessels worldwide. Alfa Laval’s technology in which no chemicals are added or PureBallast provides a well-balanced way to meet the generated. Besides having full Ballast Water Type regulations, giving you IMO-compliant results while Approval, PureBallast has been selected by more ship taking into account your own demands for space, owners and shipyards than any other system. And only economy and ease of use on board. PureBallast has Alfa Laval’s global backing.

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BALLAST WATER TREATMENT

ENQUGFICWIKPI Auramarine's solution is based on utilising UV-C radiation as it presents indisputable advantages. The technology is already familiar as it is in use treating drinking water and wastewater. Managing director Heikki Saaros told TAKEROperator that the system was, “not yet type approved. The type testing is going on and should be finished at the end of this year”. Saaros also said that no orders had been won thus far as the tests were still ongoing. As for the system’s capacity, Saaros explained; “There are no limitations in quantity of the systems we can deliver. The system is feasible to install ships with ballast water pump capacity up to about 6,000 cu m per hour. Also higher capacities are possible.”

Exiting the market On 31st January this year, Hamann announced that it was temporarily withdrawing its SEDNA BWTS from the market. The system used a chemical substance – PERACLEAN Ocean – which was developed by Evonik-Degussa. A Type Approval, which included some specific conditions, was issued by the German Hydrographical Institute (BSH). “The SEDNA system itself is working beautifully. However, recent findings showed that the degradation of PERACLEAN Ocean requires further testing,” explained Mathias Schmidt, Hamann’s ballast water product manager. Recent scientific publications had also addressed this issue, contributing to Hamann’s decision to exit the market on a temporary basis. The existing patents on the SEDNA system will be maintained, 6JG*'4/GVKE the company said. 76+OGVGT)VGZKUC On 10th March last year, Dutch ballast water treatment concern Greenship was acquired by Hamworthy to become part of the UK RQTVCDNGGNGEVTQPKE company’s water treatment division. NGXGNICWIGHQTENQUGF Greenship was set up in the spring of 2001. In June 2005, ICUVKIJVQRGTCVKQP Greenship’s ballast water management system was land based tested and audited by Lloyds Register EMEA. 6JGWPKVKUWUGFHQTEWUVQF[VTCPUHGT In November 2005, Greenship announced that Holwerda KPXGPVQT[EQPVTQNOGCUWTGOGPVCPF Shipmanagement was the first to install Greenship’s full-scale BWMS. Later, in July 2007 two Chemgas vessels Solano and Thresher were HTGGYCVGTFGVGEVKQPQPOCTKPGXGUUGNU delivered equipped with a Greenship sediment removal system. %QPPGEVGFVQC*'4/GVKEXCRQWT Since 10th January 2006, Greenship’s BWMS has been operating on EQPVTQNXCNXGVJG76+OGVGT)VGZ board a feeder containership and in June 2008, the shipboard tests were CXQKFUCP[ICUTGNGCUGFWTKPI successfully concluded and certified by LR. QRGTCVKQPCPFGPCDNGUQRVKQPCNN[ In July 2008, Greenship signed a contract with Schelde Naval OGCUWTGOGPVUKPQPGUKPINGQRGTCVKQP Shipbuilding for the delivery and supply of BWMS on board four naval patrol vessels for the Royal Dutch Navy. In January 2009, WNNCIGVGORGTCVWTGQKNYCVGTKPVGTHCEG Greenship received a new order for two Sedinox® BWMS to be NGXGNCPFKPPCIG$[KPETGCUKPIUCHGV[ installed on board Chemgas vessels. CPFGHſEKGPE[*QPG[YGNN6CPMU[UVGO Chemgas had already used the sediment reduction system JGNRUEWUVQOGTUKORTQXGDWUKPGUU Sedimentor® for over two years. Reducing sediment in ballast tanks RGTHQTOCPEG decreased the vessels’ draft by almost 70 mm. This reduced their fuel consumption by almost 3%, Chemgas said. In late 2008, Chemgas asked Greenship to arrange for an upgrade for these vessels to a Sedinox® BWMS. Deliveries took place during the first half 2009. Finally, in July 2009, during MEPC 59, the committee granted Final Approval to Hamworthy Greenship's treatment system Termanox ®. Hamworthy’s Sedinox BWMS consists of three major components - SEDIMENTOR - This sediment removal system removes sediment and (QTOQTGKPHQTOCVKQPXKUKVQWTYGDUKVG biota during uptake, resulting in almost 100% removal of particles ≥20 YYYVCPMU[UVGOEQOQTECNN  micron, 80% removal for particles of ≥10 micron, ΔP = 3 bar approx. l*QPG[YGNN+PVGTPCVKQPCN+PE#NNTKIJVUTGUGTXGF TERMANOX -This electrolytic cell decimates bacteria and organisms. Together with the Sedimentor the electrolytic cell achieves

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TECHNOLOGY – BALLAST WATER TREATMENT

a killing rate of 99.99%. The "killing of testing, EI Treatment Systems’ Venturi years. The cost - to purchase, install, and efficiency" of this electrolytic process is based Oxygen StrippingTM (VOS) ballast water operate the VOS system - is less than the on the electrolysis of NaCl present in treatment system was issued with a BWTS Type savings in corrosion repair costs. No other seawater, according to MEPC 53. Approval Certificate at the end of 2007. ballast water treatment system offers such a CONTROL AND POWER UNIT - The The certification was issued by the Liberian benefit, NEI claimed. Sedinox control and power unit is claimed to Registry, with the technical review by the Many other technologies use chemical provide easy operation of the BWMS. American Bureau of Shipping (ABS). Land- oxidisers, which degrade coatings and anodes, Hamworthy said that by being compact, based biological testing was conducted by the thus increase corrosion. modular and an easy-to-install system, the Chesapeake Biological Laboratory (CBL) at In addition, no active substances are used BWMS saves time, space and money. It is of a the University of Maryland Center for with the VOS system. NEI explained that flexible construction through a modular Environmental Science. tanker owners were sensitive to this, as were system for vessels with ballast flow rates from Shipboard trials were conducted by a team the oil majors. Since a VLCC discharges 100 cu m per hour to 1,000 cu m per hour. of scientists from CBL and the Marine 100,000 tonnes of ballast at each loading even It is easily integrated into existing ballast Invasions Research Laboratory of the a low concentration results in a big discharge systems, thus ideal for retrofits, while the Smithsonian Environmental Research Center, of chemicals into waters adjacent to their modules are designed and sized for easy a US Federal Government laboratory. This customers' facilities, the company said. access into the ship’s machinery spaces, testing was funded by the US National engine and pump room. Oceanic and Atmospheric Administration Large vessels UK based Transvac Systems Ltd has (NOAA) as part of the US ballast water In the larger vessel sector, Norwegian announced that it has signed an agreement technology demonstration programme. manufacturer OceanSaver appeared to be with San Diego US-based MH Systems to VOS is a deoxygenation technology that ahead of the game. market the MHS Ballast Water Treatment NEI claimed rapidly removes 95% of The company said that it was the first system in Europe and other selected markets. dissolved oxygen from ballast water. This is ballast water treatment equipment supplier to Transvac will offer the technology through accomplished as ballast is drawn into the confirm major orders for large vessels. its recently restructured marine solutions vessel by mixing very-low oxygen gas In January this year, OceanSaver announced division, Coldharbour. through large-diameter venturi injectors in the the signing of a contract with Hyundai Heavy Transvac director, Howard Towers said ballast piping. Aquatic organisms cannot Industries to fit ballast water management “Ballast water treatment is an important sector survive in these conditions, the company said. systems (BWMS) on board three VLCCs on for Coldharbour. We have been working NEI has since obtained Type Approval (flag order for Oman Shipping Company. closely with MHS for more than a year, and states will Type Approve each system) from “This is a milestone to be noticed,” we are confident that the MHS technology both Marshall Islands and Malta. Approval explained OceanSaver’s CEO, Stein Foss, represents not only the best solution for our from Panama is pending, and Bahamas is at speaking in January. “It is a milestone for the customers, but also fits very well with our the review stage, the company said. Convention as the industry confirms the own developments in fluid handling solutions. To date, NEI has won orders for large availability of suitable BWMS in the large These include domestic water modules, capacity machines to be fitted on board and complex ships segments and further, that marine ejectors and our latest third generation drybulk carriers. These include six 4,400 cu m the timeline for the introduction of the new inert gas generator”. per hour systems for German-based shipowner ballast water management regime is indeed The MHS BWTS uses the patented Hartmann for vessels being built at Dayang application of inert gas, which is distributed Shipyard in China. into the ballast tanks via special diffusers. The company has also installed equipment The system is currently undergoing final on small chemical tankers with a capacity of testing and certification prior to full around 1,000 cu m per hour each. The commercial availability later this year. smallest standard size is 300 cu m per hour. Towers added, “Our customers can now However, NEI explained that there was no count on us for a complete solution to their upper capacity limit, but standard sizes are ballast water treatment needs, including initial available up to 6,000 cu m per hour and survey, design, installation and systems can be doubled up for large vessels. commissioning.” Of interest to tanker operators - the VOS For newbuildings, Coldharbour can offer its system includes a component very similar to Sea Guardian range of inert gas generators, an inert gas generator. NEI said that it had which have been designed to work with the gained ABS approval to use this component as BWTS. For tanker retrofit requirements, a topping generator for large tankers that use Coldharbour said it could work with the flue gas IG. The company said that it is also vessels existing IGG unit, provided that the able to design systems for smaller tankers gas generated by the system is to the required where the device provides 100% of the cargo residual oxygen and minimal soot levels. inert gas, as well as ballast water treatment. In many cases, installations can be Since the deoxygenation method is used, undertaken at normal drydocking periods, the NEI’s treatment system has been shown to company said. reduce ballast tank corrosion by up to 84%, After many months of review and many years saving owners millions of dollars over the OceanSaver’s CEO Stein Foss.

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These tests demonstrated that OceanSaver The single largest cause of oil spills prevents creep corrosion and has a beneficial “ effect reducing sacrificial anode consumption. is structural failure, much of which By combining the IMO PSPC with OceanSaver’s treatment system, tanker, is caused by ballast tank corrosion. chemical and gas ships can expect extended ballast tank lifespan beyond the 15-year PSPC ” requirements, even for the entire life of the vessel, the company said. fixed and must be taken seriously.” OceanSaver’s patented BWMS has been DNV completed the BWMS studies to The contract is for supply of OS BWMS successfully tested according to the IMO gauge its suitability for tankers, gas carriers, 6000 EX on board three 317,000 dwt tankers Ballast Water Performance Standard and to the chemical tankers and bulk carriers, in terms of currently on order at HHI for OSC. The OS satisfaction of independent experts and major interfacing with ballast water handling, BWMS 6000 EX is claimed to be able to treat commercial operators, the company claimed. locations, on board power, equipment sharing 6,000 cu m of ballast water per hour, which is It has been type-approved by DNV on and ballasting procedures. roughly the size of a large tanker’s ballast behalf of the Norwegian Flag State Authority. Most BWM technologies available are tanks pumping rate. The system is also approved for installations designed for medium to low-capacity systems. According to Foss, the contract is a in gas hazardous areas, a prerequisite for Few existing technologies are suitable for significant breakthrough for OceanSaver, tanker applications. larger vessels, or complex tonnage, such as marking its transition into becoming a major During the development of the technology, tankers, chemical carriers or gas carriers. supplier to the maritime industry. comprehensive and independent corrosion and Further, some BWM systems grow “The global market for BWM systems is coating impact studies were carried out, both exponentially in size as the ballast volume and new and represents a massive opportunity. It is in laboratories and under real-life on board pump capacity increases. driven by regulations and is predictable, but conditions. These confirmed reduced OceanSaver claimed that its system is more all technologies need to go through a corrosion and coating weathering rates. flexible than most of the others, as it has been thorough, time-consuming and costly approval OceanSaver’s BWMS has also designed as far as possible around the process”, he said. demonstrated compliance with the intentions capabilities normally required on board a ship. “We have crossed a crucial frontier in of the IMO Performance Standard for With only two components needing to be terms of technological development, and are Protective Coatings (PSPC). aligned with the ballast water pipeline, the now focusing on successful commercialisation The single largest cause of oil spills is system can be installed in whatever design and production. We have established a strong structural failure, much of which is caused by space is earmarked on board. There is no global network of highly capable agents and ballast tank corrosion. During the first three to linear growth in terms of space and cost. secured production capacity to accommodate four years of operation, a ship’s ballast tank The system can technically handle any significant orders this year and in years to normally corrodes at a rate of 2%, but this can capacity from 40 to 10,000 cu m, or more of come,” Foss explained. quickly rise to annual levels of 5%, or 6% by ballast water per hour without any delay in Since 2002, the company has been solely year five. A 1% breakdown in a salt water tank ballasting operations. However, it is most concentrating on fit-for-purpose BWMS. can lead to severe localised corrosion and suitable for medium sized tonnage and Following a successful pilot-project on the dangerous cracks and holes between the cargo upwards (for example, for capacities from vehicle carrier Höegh Trooper in 2005, tanks and the double hull spaces. After 10 1,000 cu m and upwards). OceanSaver obtained Type Approval in years of operation, a wrong choice can cost OceanSavers' largest investors are - Statoil April 2009. tanker owners up to $5 - $10 mill in re-blasting Venture AS (Energy Capital Management), “We estimate the overall BWM market to and recoating, the company explained. Höegh Autoliners and Storebrand be about $30 bill from 2010 to 2020. We OceanSaver said that a BWM system may Livsforsikring AS. expect to take a significant market share change the conditions for which coating Foss explained that in general, it was much particularly within the tanker, LNG and systems are designed. It can affect oxidation cheaper to install at the newbuilding stage as chemical sector, but also larger tonnage in processes causing weathering of coating the only cost incurred is at the design stage, general” said Foss. systems and can accelerate the rate of whereas retrofits require engineering and a lot OceanSaver’s core focus lies in the large corrosions caused by a coating defect. of modification work. vessel market representing some 20% of the As mentioned, the company claimed that it OceanSaver uses a number of sub-suppliers total by numbers, but 40% by value at an is the only known BWMS verified to be who deliver to the company’s hub operation at estimated $12 bill. ‘Compliant with the intentions of the Drammen before shipment. “We will sub- “We have clearly defined goals, which Performance Standard for Protective contract assembly of the core component, include remaining in the lead and being Coatings (PSPC)’. which is our own technology. This will be established as one of the top three suppliers The PSPC requires ballast tank coatings to done in Norway. The future will determine within our selected tonnage (sector). This will achieve a 15-year target life and focuses on whether there will be a need for additional secure rapid and sustainable growth over the epoxy coatings. Corrosion engineers and hub(s)/assembly stations. The engineering next years,” Foss concluded. coating system experts at DNV and Safinah, a and logistics are key issues for us – not In December last year, the company told UK coating consultancy firm, have completed manufacturing capacity,“ Foss explained. TAKEROperator that it had signed technical thorough coating assessment and corrosion Service arrangements and spare parts supply agreements involving 18 crude oil tankers. tests using the OceanSaver’s BWMS. will also be offered. “A design for lifetime

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does not mean maintenance free. Nothing in deliveries will be numerous.” this world is maintenance free. Our design Thus far this year, the company reported facilitates easy replacement of parts. This is orders for systems to be fitted on board eight applicable for serious malfunction, as well as offshore support vessels for Norwegian normal maintenance and replacement of wear interests. and tear parts,” he concluded. The IMO granted the Final Approval of OptiMarin received Type Approval Active Substances to RWO’s ballast water Certificate for the OptiMarin Ballast System treatment system CleanBallast at MEPC 59 (OBS) in November last year. It was issued by last year. Det Norske Veritas (DNV) on behalf of the As a first step, RWO received the basic Norwegian Maritime Administration and approval of active substances from the IMO confirms OptiMarin’s compliance with the in October 2006 and subsequently finalised IMO convention. the land-based type approval of CleanBallast The OBS was tested extensively at the in 2007. Norwegian Institute for Water Research (NIVA) Two of the three required tests were carried in accordance with IMO’s G8 guidelines with out on board a containership, while the third excellent results, the company claimed. was due to be undertaken late last year. Shipboard testing requirement was With the newly granted Final Approval, the completed aboard a Klaveness cement carrier OptiMarin’s OBS seen installed. ongoing shipboard type approval will be the using DNV and NIVA for testing and last step required for gaining the type approval verification. Based on the NIVA test results, OBS are that it has a simple and reliable certificate. Therefore, RWO was hoping to OptiMarin has received confirmation from the design with few movable parts. The system is be issued with the full Type Approval California State Land Commission that the operated as part of the normal ballast system Certificate for its CleanBallast system by the system meets its standard for Best Available with a low pressure loss. German administration this month (see Technologies to be implemented this year. The company delivered the worlds first TAKEROperator, October 2009, page 20). OBS is a mechanical system based on ballast treatment system to the cruise vessel RWO is a part of Veolia Water Solutions & filtration and UV and does not affect the Regal Princess in 2000. In all, OptiMarin has Technologies, which in turn is a subsidiary of normal operation of the ship. It is easy to delivered seven systems prior to the current Veolia Water. install on board existing ships, as well as on regulations, including one to a product carrier. newbuilds and uses standardised components The OBS is suited for any type or size of Data collected for all flow configurations. The system is one vessel, the company said. The 46,100 dwt US-controlled tanker S/R of very few treatment options that do not CEO Pål Sanner said; “With the certificate American Progress, managed by SeaRiver introduce chemicals, electro-chemical in hand I must give thanks to Innovasjon Maritime, was accepted into the U S Coast generators or biocides in its treatment process, Norge, Stavanger, who has supported us Guard’s Shipboard Technology Evaluation the company claimed. for the last three years. The pipeline of Programme (STEP) last August. The key benefits of the Type Approved potential order is substantial and 2010 This was to demonstrate the use of and

RWO’s CleanBallast system.

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TECHNOLOGY - BALLAST WATER TREATMENT

collect data on the effectiveness of the Severn and it is expected to enter the market at the by South African-based Resource Ballast Trent De ora (STDN) BALPURE® BWTS. end of the year. Technology (RBT). The USCG established the STEP "Ballast Water Treatment is becoming an Project engineering and installation programme in 2004 to promote the important item on the environmental agenda for supervision were carried out by the Norwegian development of alternatives to ballast water our customers, and therefore also for us," company, which was specifically designed to fit exchange as a means of preventing invasive explained Roger Holm, vice president, solutions the 78,500 cu m capacity VLGC’s 800 cu m species from entering US waters through management, Wärtsilä Services. "Moving into per hour ballast pump capacity. ships’ ballast water. this field is a natural step for Wärtsilä, and one BW Danuta carries LPG, propane, butane STEP participation is available to all that continues the development of our and ammonia at temperatures down to international and US domestic vessels subject environmental services portfolio." -50 deg C. to the USCG’s ballast water management Trojan Technologies has over 30 years of BW Gas’ fleet manager for technical regulations. experience in developing UV treatment operations, Ola Petter Dahlen said at the time: BALPURE is a patented system that solutions. As a world leader in developing UV “After considering a number of technical generates biocides, meters and analyses the technology for municipal wastewater, drinking solutions, we recognised that the UBWT residual level of both biocides and neutralising water, and industrial water treatment systems, system’s small size, low energy requirement agents and logs the performance of the overall Trojan was a logical partner in providing and low pressure drop made it ideal for BWTS, the company explained. Wärtsilä with UV technology for ballast water retrofit installation.” Third party testing of the BALPURE treatment, Wärtsilä said. DNV has worked on the basic approval of system has confirmed effluent quality that Marvin DeVries, Trojan Technologies the system. Manufacturing first started in meets the proposed IMO ballast water president said; "Trojan has a long history of South Africa before switching to a 10,000 sq standards. innovation and leadership in the global UV m warehouse in Shanghai. The BALPURE system has achieved a industry, and we believe that our water UBWT is part of parent Wilhelmsen Marine number of certification milestones, including treatment expertise, combined with Services (WMS) ‘Act’ environmental product one in 2007 from the American Bureau of Wärtsilä's strong presence in the marine family. This combines water treatment, Shipping stating that the system was explosion industry, will enable the two companies to emission reduction and wastewater (EX)-proof for use on board tankers. play a significant role in providing a management systems, products and services In addition, Severn Trent De Nora received compact, cost-effective and high under one banner. a grant from the National Oceanic and performance system to address the emerging WMS said that it was able to offer complete Atmospheric Administration (NOAA) in 2006 ballast water treatment market." systems through its network covering 330 for US third party validation and recognition. Wilhelmsen Marine Services’ (WMS) offices in 72 countries. “In many cases you STDN is a joint venture supporting marine Unitor ballast water treatment system will find companies focusing on a single and offshore industrial water disinfection combines the use of cavitation, sterilisation environmental area. We’re appealing to our needs by bringing together the expertise of and physical separation to provide a system customer base by delivering a much broader Severn Trent Services and Gruppo De Nora, equally efficient in both seawater and offering, one which encompasses our Milan, Italy. freshwater environments. commitment to improving environmental For BALPURE®, the completed Basic This combination of methods also allows it performance,” said WMS president Dag dossier was submitted to the IMO via to handle diverse conditions, such as high Schjerven. BSH/Germany in August 2009 – in time for the turbidity, due to organic and mineral matter, or The company spent a number of years MEPC 60 conference (March 22–26, 2010). polluted water, the company claimed. looking at different technologies and then It is expected to gain Basic Approval at The reactors can be mounted in a vertical short listed these down to two options. DNV MEPC 60 and Final Approval by October loop or horizontally (total length 3 m-3.6 m) was then commissioned to come to a 2010 (at MEPC 61). STDN is working with meaning they offer the widest range of conclusion on what the class society thought shipowners to complete shipboard mechanical installation possibilities. The requirement was the superior option – RBT. and efficacy tests to obtain Type Approval, for electric power is about 40 kW for the It was originally installed on a test basis on which is projected to be completed early in largest system with a capacity of 3,500 cu m a Wilhelmsen ro-ro and was also presented to 2011, the company said. per hour. South Korean shipbuilders Daewoo, Samsung Wärtsilä Corporation and Trojan It is suitable for most vessel types and is and STX at a meeting organised by Hyundai. Technologies have signed an exclusive available across the full range of sizes An important aspect of this particular agreement to jointly develop, market, and required by the commercial marine market, system is that it can be installed while a vessel distribute a ballast water treatment product for WMS said. remains in operation. However, the shipboard use. The system gained IMO Basic Approval in Wilhelmsen ro-ro was in drydock when the The two companies will gain benefits from 2008 and has been recommended by system was installed, meaning that the BW the combined strength of Wärtsilä's global GESAMP to be awarded its Final Approval at gas carrier was the first to receive a system reach and presence in the marine market, and MEPC 60 in March this year. while in service. WSE provided the project from Trojan Technologies' experience in A couple of years ago, subsidiary engineering and installation supervision for developing ultraviolet (UV) treatment Wilhelmsen Ships Equipment (WSE) fitted a the system. solutions, the companies said. test ballast water treatment system on board BW explained that this vessel was chosen The ballast water treatment product is BW Gas’ LPG carrier Berge Danuta. for the trials as it normally trades in northern presently in pre-production, with third-party The system used was the Unitor Ballast Europe, making it easier to put personnel and validation expected to take place in late 2010 Water System (UBWT) originally developed equipment on board. TO

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TECHNOLOGY - TANK SERVICING Cargo tank coating unveiled for product and oil tankers US-based tank coatings manufacturer Advanced Polymer Coatings (APC) has upgraded its product portfolio to include larger product and oil tankers.

alled MarineLine® X, the new in the chemical tanker market, especially to develop the proper tank coating system for tank coating offers versatile, when handling aggressive chemical cargoes. their specific needs, which is different than effective solutions for product MarineLine® 784, which uses a forced hot air those of chemical tankers. The result is Cand oil tanker carriers trading in forced heat cure to form one of the strongest MarineLine® X – a coating that offers much clean petroleum products (CPP), biofuels, bonds in chemistry, is currently in service on better performance and versatility for product vegetable oils, crude oil and dirty petroleum more than 300 chemical tankers worldwide. and oil tanker operators than conventional products (DPP), wine carriers, FPSOs, Based on this success, Donald Keehan, phenol epoxy or zinc silicate linings, which vegetable and edible oils and all tankers APC chairman, explained, “Using our have limitations. carrying IBC Chapter 18 cargoes. extensive background in the marine tank “We formulated MarineLine® X to APC’s MarineLine® 784 internal cargo coatings industry, we studied the product and outperform those coatings, first providing an tank coating brand is already well-established oil tanker markets for several years, working application costs savings using a non-forced

MarineLine® X has been developed for larger product tankers’ cargo tanks.

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X, APC said. Due to the coating’s easy and APC said that MarineLine® X fast cleanability and resistance to a wide range “ of cargoes, the shipowner/operator can easily offers more corrosion resistance switch, enabling the tankers to carry a range of cargoes from port to port. than either phenolic epoxy coatings MarineLine® X comes with a semi-gloss, ” light blue colour. The coating is offered in five gallon (19 litres) and 1 gallon (4 litres) kits hot air heat cure approach, yet still epoxy coatings, that can absorb cargoes due to with catalyst. maintaining the coating’s performance hydrolysis, or zinc silicate coatings that also APC has also developed a new ‘Chemical features for easy cleaning and excellent cargo have absorption problems by retaining oil-like Resistance Guide’ that presents both resistance. This allows us to provide cargoes and are difficult to clean. MarineLine® X for the product and oil tanker MarineLine® X at a comparable cost to A key concern to the tanker industry is the markets and MarineLine® 784 for the current coatings on the market, ensuring we acidified moisture (sulphuric acid) of wet inert chemical tanker sector, allowing operators to will change how product and oil tankers will gas systems that corrodes conventional tank see which coating system is appropriate for coat their tanks in the years ahead,” he coatings. However, MarineLine® X is handling a particular cargo. concluded. resistant to this acidified moisture, providing a An online version of the guide on longer lasting solution. the company’s website is also under Advantages Versatility is a key strength of MarineLine® development. TO MarineLine® X offers a number of key benefits for the shipowner and operator, APC claimed. In economic comparisons for the tank coating and the application costs, MarineLine® X only requires a two-coat system, compared to three coatings for phenol epoxy. This eliminates extra days for drying and extra spray for Product Tankers application costs, resulting in savings and allowing the owner to maximise the return on investment in a short period of time. THE tank coating system for carrying easy It has, like all the coatings in the MarineLine® family, a very smooth, low chemicals, CPPs, and edible & vegetable oils. energy surface. This provides fast and easy cleaning. Once cargoes are discharged, tanks are cleaned and dried with minimal effort. Rely on the new This is especially noteworthy when switching ® from dirty to clean cargoes as the MarineLine X tank shipowner/operator normally incurs heavy coating to handle the wide cleaning costs. Keehan provided an example, range of easy chemicals and “Compare switching from dirty to clean products in a 45,000 dwt product tanker, with CPPs carried by product 27,000 sq m of tank coating in 20 cargo tanks. tankers. MarineLine® X offers Cleaning a phenol epoxy coating takes eight days, requiring a high amount of gas oil. greater corrosion resistance Cleaning MarineLine® X coating takes only than phenolic epoxies or zinc four days and requires a small amount of gas oil. The labour and material savings can be up silicates, with more versatility. to $100,000 per cleaning. Multiply this amount every time the tanker switches these types of cargoes during a year, and the savings Advanced Polymer Coatings are immense. More savings results in higher operational profit.” Avon, Ohio 44011 U.S.A. Another key benefit claimed is MarineLine® X’s inherent chemical resistance, as the coating is formulated with patented high performance polymers that cross-link together to form a hard, tightly knit structure. This durable coating ensures consistent product purity, the company said. APC said that MarineLine® X offers more corrosion resistance than either phenolic +01 440-937-6218 Phone +01 440-937-5046 Fax www.adv-polymer.com

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TECHNOLOGY - TANK SERVICING Cleaning project completed on world’s largest tanker ew benchmark claimed in cleaning 49 tanks and de-mucking 3,200 tonnes of sludge in an environmentally friendly manner.

ulsco’s East Coast branch recently law. Dulsco also secured zone II certification and excellence, have allowed Dulsco to completed a tank cleaning project for the equipment used in the project, such as comply with stringent quality, safety and on the ULCC/FSO Knock evis, air compressors, generators, air fans and ex- environmental standards and satisfy the Dthe longest ship ever built, while proof lights, ensuring compliance with strict specific demands of the tanker owners. she was anchored off Fujairah, waiting to sail international safety norms. “Moreover, despite the delicate nature and for India for recycling. A team of 130 specialists were deployed, the unprecedented scale of the project, Dulsco The company cleaned the Knock evis' 49 including a project superintendent, was able to complete it in time without being tanks and de-mucked 3,200 tonnes of sludge supervisors, safety officers, foremen and derailed by any kind of accident. This project from the tank bottom, while implementing an experienced tank cleaners for the two-month will certainly help thrust Fujairah into the environmentally-friendly process in disposing project. The successful clean-up of the giant limelight as an attractive destination for of the sludge in accordance with UAE federal tanker served as an important milestone for specialised marine, de-mucking and tank Dulsco, giving the cleaning services, while highlighting Dulsco's company the world-class expertise in handling large-scale momentum to pursue projects," said Amjad Khan, general manager, similar large-scale Dulsco East Coast. projects in the Built in 1979, the Knock evis was latterly shipping industry, the used as an FSO unit, having been recently company claimed. converted at Dubai. She was owned by "Dulsco East Coast Norwegian company Fred Olsen Production. has a highly skilled Formerly known as the Seawise Giant, Happy workforce along with Giant and Jahre Viking, the tanker, which was one of the best built from 83,000 tonnes of steel, is the longest equipped workshops in ship ever built in the world with a length of 458 the industry. Extensive m and a beam of 69 m, a fully laden draught of expertise and top-of- 24.6 m with a dwt of 564,763. the-line technological Dulsco’s Fujairah base supports both resources, combined offshore and onshore tank cleaning and the with our utmost company has agreements in place with the commitment to quality local ships’ agents. TO

ZZZGXOVFRFRP

The vast expanse of the Knock Nevis can clearly be seen.

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TECHNOLOGY - TANK SERVICING Knock Nevis –A potted history Knock Nevis was built in 1979 at laid up in Brunei. At the end of the war she was reflagged to Sierra Leone on the basis Sumitomo Heavy Industries's was towed to the Keppel Company shipyard of a single voyage. After clearing Indian Oppama shipyard as Seawise in Singapore, repaired, and relaunched in customs, she was beached at Alang at the Giant for a Greek owner who October 1991 as the Happy Giant. beginning of January, thus ending a varied was unable to take delivery of Jørgen Jahre bought the tanker in 1991 for career. the vessel. $39 mill and renamed her Jahre Viking. Her longevity was put down to being well The shipyard exercised its right to sell the From 1991 to 2004, she was owned by Loki maintained throughout her career, a vessel and a deal was brokered with Hong Stream AS and flew the Norwegian flag. considerable rebuild following severe Kong’s Orient Overseas Container Line In 2004, she was bought by First Olsen damage off Hormuz and due to the fact that founder CY Tung to lengthen the ship by Tankers, renamed Knock evis, and she traded infrequently, being primarily used several metres thus adding a further 87,000 converted into a permanently moored as storage vessel. tonnes of cargo capacity. Two years later she storage tanker anchored in the Qatar Al When TAKEROperator’s editor visited was relaunched as Seawise Giant. Shaheen oil field in the Persian Gulf. the ship at Antifer in January 1995, the She was badly damaged during the In December 2009, she was sold to master told him that the vessel had only Iran/Iraq War while transiting the Strait of Indian breakers, via an intermediary. undertaken about a dozen voyages with Hormuz and was declared a total loss and Renamed Mont for her final journey, she cargo since she was built.  Overspray/dry spray should be carefully controlled

In today’s economic climate, it is becoming more and more critical for vessel operators to maximise efficiency. For operators of chemical carriers, the choice of coating on the cargo tanks can have a major impact on the operational efficiency of the vessel from initial coatings selection, application, cargo carriage and performance in service to ease of tank cleaning and vessel turnaround. One key issue during the application of tank coatings, which should be carefully controlled is overspray/dry spray. This can greatly impact the tank coating surface properties, warned International Paint (IP). Overspray/dry spray refers to paint particles landing on areas not intended for coating or rebounding from target areas that are and then

drying before being deposited in other areas of Careful control is needed of overspray and dry spray. the tank. This can be made worse when there is an overly turbulent airflow in the application ings are essential to ensure maximum efficiency Minimising overspray/dry spray has a longer area; incorrect spray gun set up or from paints, during the application process in the shipyard and term impact than just yard application; a smooth which are not optimally formulated. the long term chemical resistance and ease tank surface is more easily and rapidly cleaned Overspray/dry spray causes contamination of plus speed of cleaning for ships in service. allowing for faster vessel turnaround times and nearby areas, can roughen a smooth finish and Dong-Uk Oh, painting team section chief in increased productivity for the operator. can cause the application environment to be Samho Shipbuilding Co, South Korea, who Evidence of this was clear during a one year potentially unsafe for applicators due to has a long track record of tank coating inspection of Interline 994 coated tanks on a excessive coating fog in the atmosphere. As tank applications said, “When applying 17,539 dwt chemical tanker. The tanks were in coating application occurs in a confined area the International Paint’s Interline 994, a 30% excellent condition with the vessels Chief risks associated with this issue can be significant. reduction in overspray compared with Officer commenting that he was very Minimising overspray/dry spray is also previously used epoxy phenolic coatings was impressed with the performance of the coating desirable from a productivity and financial achieved. This means not only less re-work on the tanks given the aggressive sequence of point of view as it means completion of tank and coating wastage for the yard but also a cargoes that have been carried in them. coating application in a shorter space of time, smoother coating surface for the operator.” Minimising overspray/dry spray is just one reducing cleaning time and a reduction in He also said, “We hope we would work example of how coating manufacturers, paint wastage, all resulting in a reduction in with International Paint again for future cargo shipyards and vessel operators can work the final cost of coating. tank projects given their reliable technical together to ensure maximum vessel operating

IP maintained that correctly formulated coat- service and product application properties.” efficiency, IP said. TO

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TECHNOLOGY - SHIP-TO-SHIP TRANSFERS STS operations to have mandatory standards With the plethora of tankers of all size ranges anchored in orth European waters and now increasingly in Asian waters, the focus on ship-to-ship (STS) transfers has grown.

e have recently seen up to 50 to enter into force on 1st January 2011. of which are carried out by barge, or small tankers anchor off the UK’s The new chapter 8 on prevention of tanker offshore. Other types of transfers not Suffolk coast and more in pollution during transfer of oil cargo between included are those between a tanker and an WLyme Bay. There are oil tankers at sea will apply to oil tankers of FPSO/FSO, or rig, or to securing the safety of designated STS transfer sites off Denmark, at 150 gt and over and will require any oil tanker a ship or its crew, or for combating specific designated sites in Europoort/Rotterdam and involved in oil cargo STS operations to have, pollution incidents. elsewhere, including the MEG. on board, a plan prescribing how to conduct Any tanker involved in STS shall carry on Last July, the IMO’s MEPC 59 adopted STS operations (the STS Plan), which would board a STS Operations Plan not later than the amendments to the MARPOL Convention to be approved by its administration. date of the first annual, intermediate or prevent pollution during STS oil transfer Notification to the relevant coastal state will renewal survey of the ship to be carried out operations. be required not less than 48 hours in advance after 1st December 2010. The MEPC adopted amendments to of the scheduled STS operations although The STS plan may be incorporated into the MARPOL Annex I for the prevention of some relaxation to this rule is allowed in existing SMS required under SOLAS, if that marine pollution during some STS oil transfer certain, very specific, cases. The regulations requirement is applicable to the tanker in operations. These amendments were expected will not apply to bunkering operations, many question.

Two TORM vessels undertaking an STS while slow steaming.

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TECHNOLOGY - SHIP-TO-SHIP TRANSFERS

The person in overall advisory control of restrictions apply. Although there are a few STS operations jointly by OCIMF and the STS operations shall be qualified to perform exceptions, US ports are unable to International Chamber of Shipping (ICS) all relevant duties, taking into account the accommodate tankers of over Aframax size some 35 years ago and have been updated on qualifications contained in the best practice fully loaded. Hence the favourite cargo a regular basis. guidelines, the IMO said. from the Caribbean to the US Atlantic MARPOL Annex 1’ STS Plan will cover Consequential amendments to the Coast is around 80,000 tonnes loaded in an start-up procedures, flow rates, checklists, International Oil Pollution Prevention (IOPP) Aframax hull. communications and topping off and stripping Certificate, the supplement to the IOPP Last year, it was estimated that more than arrangements. Certificate and the Oil Record Book were 25% of crude oil imported into the US was The fourth edition of the OCIMF/ICS Ship also adopted. subject to lightering operations before being to Ship Transfer Guide, Petroleum, which delivered to the refineries. Some of the cover transfers of crude oil and petroleum Splitting cargoes companies involved in crude oil lightering products was published in 2005, some 30 Ship-to-ship (STS) transfers at sea have been operations in the US Gulf include OSG, SPT years after the first edition. undertaken for almost 40 years. It was and Chevron among others. Included in the new set of provisions are originally widely used to load and offload These specialist companies employ criteria for determining the quality and VLCCs/ULCCs and other large tankers, thus experienced mooring masters and have the competence of lightering superintendents; splitting cargoes into smaller hulls, which relevant equipment and backup, including acknowledgement of a then new international could gain entry to draught restricted ports. workboats/launches, to prevent pollution standard, ie ISO 17537, applicable to the However, as the numbers of vessels wherever possible. material, performance and dimensions of involved in storage increased, we have seen Lightering operations can be undertaken floating pneumatic fenders; updated mooring many STS transfers taking place on smaller while the vessels are anchored, or while operations information following an industry laden chemical and product carriers anchored steaming at a very low speed. Huge rubber study on the behaviour of tankers moored in strategic areas near main import and export fenders, such as Yokohama fenders, are placed together in open and exposed waters; and terminals. between the vessels, while the oil is provisions governing the transfer of personnel Lightering operations are still undertaken transferred through rubber hoses attached to between vessels, according to an article in considerable numbers in the US Gulf and ’quick release’ mechanisms. appearing in the BIMCO News, explaining along the US East Coast, where draught Industry standards were first developed for the new amendment. TO

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TECHNOLOGY - NEWS Lube oil independent attacks the US market

Marine lubricants supplier Sealub engine can run on low sulphur fuel and a delivery more difficult or costly. Alliance Americas, an affiliate of standard 70 BN CLO, most vessel operators “In many cases, by working closely with Hong Kong-based Gulf Oil Marine, make the decision based on how long they our sub-contractor delivery agents, we are has opened a fully operational will need to run the engine and then decide able to advise the customer of alternative manufacturing, supply and whether or not they need to switch to low BN delivery options that ultimately saves the distribution network in the US cylinder oil. customer money. This is all part of our and select areas of Canada. “The issue is that if an engine is run too corporate directive to provide industry leading Sealub is now producing all of its marine long on a standard 70 BN CLO, when customer service,” the company said. products in four strategic blending facilities operating on low sulphur fuel, there is a risk Sealub manufactures in four locations in the and has established a comprehensive of creating deposits from an un-reacted BN US - Philadelphia, Houston, Los Angeles and distribution network to support delivery additive on the ring lands and behind the ring Tacoma - and is in discussions for a blending operations in more than 80 ports in the US itself. This can lead to scuffing and premature operation in Canada. Additionally the company and Canada. liner wear”, the company said. has warehouse locations in New York, Norfolk, In addition, the Americas group has As for the busy US Gulf tanker ports, most Jacksonville, New Orleans, Houston, Los established new supply operations in Panama, of the VLCCs deliver their cargoes way Angeles, Rainer WA and Tacoma. Hawaii and on the Mississippi River. offshore, making the supply of lubricants As for the amount of lubes taken on board This expansion complements the existing difficult. OSV deliveries are possible but the a large vessel, such as a tanker, in many Sealub Alliance global coverage of more vessels are in high demand and the cost can be cases, this depends on the area of the world than 700 ports in over 90 countries, the significant. As a result, many of the VLCCs where the lubricants are lifted. Some areas company said. take their lubricant deliveries via drums from have higher costs and therefore a tanker will Sealub also has plans to expand its capacity a launch. This is obviously not the most usually only take on the minimum amount of in Canada and to establish a presence on the efficient way to handle a delivery as it is lubes that it needs. In other areas where the Great Lakes by the end of this year. particularly difficult in high seas, the costs are more favourable, the quantity of In addition to its extensive delivery company said. lubes supplied will be greater due to the capabilities, Sealub also offers technical Areas, such as LOOP and the Delaware better economics. services for the US market, including ship Anchorages, see supplies on a regular basis The company explained that for a new visits, complete used oil analysis, on board through the support of delivery agents. lubricant company to enter the global market, test kits and technical seminars. which has for decades been dominated by the The company told TAKEROperator that it Sub-contracts major integrated oil companies, the new produces a 40 BN cylinder oil with the Sealub Alliance Americas primarily uses sub- entrant has to have everything that the majors majors. The same additive technology and contractors for deliveries. “We do not own or offer as a minimum, but in addition, has to basestock is used. “However, one thing we operate any delivery vessels, nor do we demonstrate superior performance in order to need to keep in mind is that the major doesn’t facilitate our own deliveries. We have found carve out their place in the market. require the use low BN cylinder oil if the that contracting with sub-contractors who Gulf Oil Marine/Sealub Alliance is vessel is only operating for less than 24 hours specialise in marine lubricant deliveries is the managed by former senior managers from the on low sulphur fuel. So, depending on how most efficient way to conduct our business. major oil companies, as well as additive long the vessel will be operating in restricted “There are so many rules, regulations and companies. Personnel have also been waters will dictate whether or not they chose restrictions that are port specific and we have recruited from the OEM side of the business. to use the low BN product”, a company found that contracting with a company that “We are fortunate in that we can take all of spokesman explained. knows all the specific requirements for a this diverse talent and mould our business in Talking about vessels entering the busy given port allows us to better inform our such a way that we can capitalise on the best Californian ports, the company said that as the customer regarding the delivery method to be practices of many different companies,” the OEMs had relaxed the amount of time that the employed and any issues that would make the company concluded. TO

The Latest ews is now available on TAKEROperator’s website at TANKEROperator www.tankeroperator.com and is updated weekly. For access to the ews just register by entering your e-mail address in the box provided. You can also request to receive free e-mail copies of TAKEROperator by filling in the form displayed on the website. Free trial copies of the printed version are also available from the website. These are limited to tanker company executives and are distributed at the publisher’s discretion.

40 TANKEROperator  March 2010 p41-56:p39-50.qxd 26/02/2010 10:46 Page 1

ANNUAL REVIEW - MARKETS ew deliveries - not as many as you think? We have taken a look at brokers and consultants view of what 2010 holds. Most ‘pundits’ believe it will prove to be a difficult year – one of consolidation – with a possible pickup in fortunes during the third and fourth quarters.

he starting point was assessing the tanker fleet above 25,000 dwt would be regulations, such as that proposed by the future tanker deliveries, what had around 175 vessels this year, compared with IMO’s Hong Kong Convention, which was already been delivered and the 314 last year; still an increase, but not as adopted last year, but thus far has not gained a Tcurrent scheduled orderbook for much as in 2009. single signatory. Last year’s Bangladesh this year with the help of leading London However, substantial growth in oil demand tanker intake was more than double that seen broker EA Gibson’s research team. and trade will still be required even to absorb in 2008. Thus any significant changes could Gibson said that 443 new tankers above this more modest growth in tanker supply, have implications on the price level on offer 25,000 dwt would be expected to enter service Gibson concluded. and perhaps more significantly on capacity, this year; which on the face of it would Gibson said. indicate more new deliveries than the 405 Recycling In an analysis of last year’s statistics, seen last year. Turning to recycling, by 5th February, some Gibson said that 10 VLCCs were sold for However, the collapse in market earnings 1.2 mill dwt of tanker tonnage had been sold recycling, nine of which were sold from last year led to newbuilding contract for breaking thus far this year, according to a August onward. The largest tanker sold was renegotiations, delays and cancellations. The Gibson’s weekly tanker report. The sheer the 285,900 dwt Front Vanadis, which fetched nature of these changes was not always volume of tanker tonnage coming onto the $325 per ldt. The highest price paid was transparent and tended to be kept ‘behind the demolition market could be the only reported to be $378 per ldt for the 249,000 scenes’. stumbling block give that Bangladesh beaches dwt VLCC V Malibu. The total deadweight of Nonetheless, some handle on developments are a favoured destination for recycling. vessels sold was 7.2 mill dwt (vessels of over can be determined by looking at what the Last year, 62 of the 93 tankers sold for 10,000 dwt). scheduled tanker orderbook was for 2009 at recycling ended up in Bangladesh, mainly due In addition, there were four Suezmaxes, 15 the start of the year and comparing it to what to higher lightweight prices negotiated and the Aframaxes, 12 Panamaxes and a massive 38 actually happened. dubious attraction of not requiring a gas-free MRs, sold for demolition, which could have From this, 79 tankers out of the original 484 certificate. The dangers associated with this been caused by the rock bottom market for scheduled for 2009 were not delivered, kind of work were highlighted at the end of product and chemical tankers. accounting for 16% of the original orderbook. last year when several workers were killed Last year, demolition prices remained Looking at the breakdown by size, Suezmax and others injured while cutting up a tanker. comparatively firm, but well below the levels and MR deliveries were around 75% of the Incidents such as this will add to seen in 2008. The first VLCC sale this year original schedule; VLCC and LR1 deliveries international pressure on the traditional achieved $415 per ldt. The strengthening were higher, at 89%, but the Aframax/LR2s shipbreaking nations to accept tighter prices were seen across all sectors with Indian were surprisingly high, with almost all Million Dwt scheduled deliveries actually coming out of    the yards, Gibson said.  Given the collapse in the tanker market seen   in 2Q09, there is more leeway for delays to     ! the 2010 delivery schedule than the 16% "# !  $%& ! witnessed last year. Gibson made the '()) assumption that some 25% of 2010 scheduled  deliveries would not materialise this year and  as a result only 300 new tankers would join  the fleet (compared with last year’s 405). Looking at each size group, there would be  around 50 VLCC deliveries, 40 Suezmaxes,  65 Aframax/LR2s, 25 LR1s and 120 MRs.       Using this and taking into account the forecast Source: Gibson Consultancy and Research of scrapping and conversions, the net gain in Tanker Demolition (10,000 Dwt+)

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ANNUAL REVIEW - MARKETS

breakers becoming prominent. With 13% of extreme cold weather in the Northern in Southeast Asia, waiting for the East-West the fleet of single hull construction, there are Hemisphere. This resulted in the narrowing of arb (arbitrage) to open, so they can float them plenty of candidates for the recycling beaches the oil price contango coinciding with higher over to Europe,'' said a distillates trader with a this year, Gibson said. charter rates, which led to a number of storage European trading firm, talking to Reuters. vessels discharging their cargoes. However, But overall global volumes remain heavy Floating storage this was partly offset by more storage tonnage and traders may also be hoping for demand in Another sector looked at by the broking being taken in the Far East. India, Indonesia and Vietnam to take up the house’s research department was the floating By the end of January this year, the number supply, ahead of spring maintenance in Asia storage position. Both crude and clean of storage tankers had fallen to 119 from 141, and as refineries here face the occasional products were being stored in abundance since less than feared. Again, storage will be a key outages, sources said. early last year. Contango play, weakened oil factor to determining the rates for this year. Most of the 18 LR tankers storing a total of demand, record levels of land-based crude and Gibson reasoned that any downward pressure nearly 2 mill tonnes of gas oil are anchored product stocks, changes in regional patterns of on tanker rates caused by the redelivery of off Southeast Asian, with a few located off oil consumption and very low freight rates all storage vessels and a return to a steeper price India and the MEG. combined to give market participants a range contango with warmer weather/lower oil At least six Panamaxes, nine Aframaxes and of opportunities to play the storage game, demand could recreate the conditions that three Suezmaxes, were anchored off Gibson said. encouraged floating storage in the first place. Singapore, Malaysia, Indonesia, Fujairah and By November last year, 149 tankers were With current high freight rates (end Sikka along the Indian coast. storing 55 mill barrels of crude and 98 mill January) and a shrunken contango, the Charterers include European trading barrels of clean products, enough to satisfy ingredients do not mix well, but storage houses Vitol, Sempra, Mercuria, Trafigura global demand for nearly two days. This participants, having successfully played the and Glencore, as well as oil major Shell and translated into 6-8 % of the VLCC fleet and up game, will be ready to act quickly, if and US investment bank Morgan Stanley, the to 35% of the LR2 sector being tied up at any when the right recipe redevelops, Gibson sources added. one time, which helped to prop up spot rates, concluded. More trading houses could join in the by taking enough vessels out of the market. contango play when the market structure widens While difficult to quantify, Gibson said that Asian storage towards the end of winter as demand for heating it was worth comparing the fortunes of the Gas oil stored on tankers in Asia had swolen fuel thins out, analysts and traders said. VLCC against the MR last year. VLCC to unprecedented volumes of at least 14 mill For now, the vessels will probably remain earnings on the benchmark TD3 route (MEG- barrels by the middle of February this year in Asia, as it would too costly to move cargoes East) averaged over $31,000 per day, above and could rise further as weak global demand to Europe, as had been done regularly since fixed operating costs. By contrast, MRs, not persists, prompting traders to turn to this the first quarter of last year, traders said. used for storage, averaged $7,000 per day on region for support, reported Reuters. the TC2 route (UK/Cont-US), which was very The volumes, which were enough to McQuilling’s view close to breakeven. meet 16% of global daily oil demand, come Under the influence of massive orderbook This year began positively with rising spot as the current East-West arbitrage economics deliveries, and IMO-mandated exit profiles, rates, oil prices and oil demand. VLCC spot was not viable, even as Western distillate the tanker fleets are poised to endure some earnings trebled to peak at just over $101,000 supplies are gradually drawn down during drastic changes to net composition. per day and WTI crude rose to a 15-month the cold winter. This year will see over 300 newbuilds high of 82.75 barrels, partly in response to the ''Players are positioning their vessels mostly joining the fleet, tempered by nearly 200 Number  single-hulls beaching for recycling. The net  result may offer some balance through 2010, but come 2011, McQuilling Services forecast *+ ,%&%$%-   that the tides may turn once more. *+,%+%$%-  McQuilling presented the tanker fleet .!/$%-     supply estimations based on a reference case /* ,.*   scenario. In January, the consultancy found  1,055 confirmed orders for tankers of 27,500     dwt and above for delivery through 2014       (confirmed orders being those with IMO     numbers assigned). From this figure, some 1-2% of the orders       were deducted due to possible cancellations  from contracts held by financially     questionable owners in similarly challenged          yards. In addition, IMO I and II type chemical carriers were excluded, thus arriving at an ! ! ! ! ! ! ! ! ! ! ! ! ! ! " #  $ %& $' # # % & ( &) " # orderbook of 899 vessels. Against the newbuilds, the exit profile Source: Gibson Consultancy and Research Number of vessels used for crude & products floating storage assumed that over half of those vessels due to

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Number of vessels the first time in a decade, shipping bankers can get a decent and certain return on their 1000 dollar. Credit is restricted, loan pricing is up 900 strongly and no banker now has to look for an 1/2010 800 excuse to turn away marginal business. 12/2010 Stronger clients and higher margins point 700 12/2011 towards happier bankers, even more so where 600 the banks foreclose on the weakest borrowers. 500 “In the shipyards, the shortage of credit is 400 being used by shipowners to push back 300 delivery dates and renegotiate contracts. The effect is less profound in China, where 200 Chinese banks and the government are taking 100 up the slack. The big European yards are 0 expecting big cruise orders, as the global VLCC SUEZ AFRA LR2 PANA LR1 MR2 MR1 economy begins to look up. But in the world’s Source: McQuilling Services. leading shipbuilding nation, South Korea, we Tonnage supply 2010 - 2011 may see mass lay-offs if work dries up. “Most shipowners, meanwhile, expect tough leave the trading fleet in 2010 will actually This means that tonnage overhang is almost markets for the next year. But a growing exit, with the remaining continuing to trade certain to continue to build in the face of near- global economy, booming scrapping and a having passed life extension inspections as per term tepid tanker demand. fast-diminishing orderbook-overhang may IMO provisions. So while net fleet growth this year may be mean that the markets will be less tough than Given poor returns, narrowing trade somewhat subdued, the tides of supply in expected. Combine that with record low opportunities, and a considerable cost for the 2011 will see considerably greater numbers of global interest rates, and things don’t look too 4th and 5th special surveys, it is likely that vessels entering the fleet. bad for owners who are not over-extended. few owners will invest in the extension of “Shipping is already the greenest of all single-hulls. Cash is king forms of transport. Globally, it is much However, after careful review of flag states London-based accountant and consultancy greener right now than it has ever been, as a that own single hull tankers, together with Moore Stephens said that opportunities exist large proportion of the fleet is going into lay- their IMO-13G stances, it would appear not for those with cash. up, the scrapping of old tankers is reaching all are ready to let older tonnage retire so Despite the pressure of increased record levels, and those ships still working are soon, McQuilling thought. environmental compliance, 2010 will be a doing so at slow and very economical speeds. In order to arrive at projected tonnage good year for anyone in the shipping industry But this year shipping will see more green supply, the exit profile for each sector was with cash and access to finance, the costs forced on it. IMO will act slowly, and it combined with the anticipated deliveries to consultancy said. will be some time before we see a shipping produce a net fleet growth. All tanker sectors, Julian Wilkinson, head of the Moore carbon tax or trading scheme. There are except Panamax and MR1 product carriers, Stephens shipping industry group, said, “For already pressures from charterers, however, to show net fleet growth during this period. measure the green performance of ships, The Panamax sector decreased by 11 because they want to be able to tell the end- vessels last year, and is expected to contract consumer how green their supply chain is. The further in 2010 before seeing a slight growth result will be that older and less fuel-efficient in 2011. The aged MR1 fleet also decline in ships will find it harder to get charters, and number this year, before seeing a four-vessel will face lower rates, while forward-looking net increase in 2011. owners will have to invest in a green agenda. In the larger sectors, the VLCC fleet “2010 will be a tough year for shipping, experienced a 24 vessel growth last year and and toughest of all for the yards. But it will is set to see further growth in 2010 by 31 be a year of opportunity for anyone with cash vessels. The Suezmax fleet saw a net increase and access to finance, as they pick up cheap of 42 vessels last year, but expansion will assets from failing projects. And it will also slow to 19 vessels in 2010 - largely tempered be the first year in which we will see a new by forecasted delays from particular yards that kind of shipping finance, as cautious but hold a significant portion of troubled orders. forward-looking bankers begin to enquire McQuilling’s long-held perspective is that about the environmental performance of ships the majority of tanker sectors are oversupplied and companies they are being asked to fund. with tonnage relative to demand. Net fleet Then we shall see a lot of people going green, growth is expected to peak in 2011, and those without access to credit looking particularly evident in the VLCC and green with envy at those who have it,” TO Suezmax sectors. Moore Stephens’ Julian Wilkinson. Wilkinson forecast.

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ANNUAL REVIEW - POLLUTION umber of oil spills continues to decline

Lack of recent major oil spills has significantly reduced the overall figures on the quantity of oil spilled.

or the first time since the International Tankers Oil Pollution 700 Federation (ITOPF) began collating 600 ATLANTIC EMPRESS tanker spill statistics, no major oil 287,000 tonnes F CASTILLO DE BELLVER ABT SUMMER spills were recorded from tankers last year and 252,000 tonnes 260,000 tonnes the total was the lowest in history, the 500 federation said. 400 Defined as 700 tonnes or greater (> 5,000 KHARK V barrels), the number of major spills from 80,000 tonnes ERIKA 20,000 tonnes tankers had consistently been reducing over 300 EXXON VALDEZ recent years, such that the average number of 000's tonnes SEA EMPRESS 37,000 tonnes 72,000 tonnes major spills for the decade (2000-2009) is 200 PRESTIGE 63,000 tonnes about three. This was less than half of the HEBEI SPIRIT average for the 1990s and just an eighth of the 100 10,500 tonnes average for the 1970s. The same was true for medium sized spills 0 from tankers (from seven to 700 tonnes, or 50 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 – 5,000 barrels) where the average number of Source: ITOPF. spills occurring in the last decade was 14, half Quantities of oil spilt (over 7 tonnes) from 1970 to 2009 of that experienced during the previous decade. Consistent with the reduction in the Nevertheless, there was obviously tanker and a tug towing barges in Texas, number of oil spills from tankers, the volume considerable annual variation in the meant that the record for 2009 will not be of oil spilt also showed a marked reduction. In incidence of oil spills and the amounts of maintained; such is the unpredictable nature some cases, the total quantity of oil spilt in the oil lost, as a single major incident can of accidents. last decade was less than had been spilt severely distort the statistics for a particular However, the statistics for the last decade previously in a single year. year. Indeed, the recent collision between a reflected the downturn in accidental spills

from tankers that had been evident since the Position Shipname Year Location Spill Size (tonnes) end of the 1970s. This reduction can largely 1 ATLANTIC EMPRESS 1979 Off Tobago, West Indies 287,000 be attributed to the combined efforts of the 2 ABT SUMMER 1991 700 nautical miles off Angola 260,000 3 CASTILLO DE BELLVER 1983 Off Saldanha Bay, South Africa 252,000 oil/shipping industry and governments 4 AMOCO CADIZ 1978 Off Brittany, France 223,000 (through the IMO) to improve safety and 5 HAVEN 1991 Genoa, Italy 144,000 6 ODYSSEY 1988 700 nautical miles off Nova Scotia, Canada 132,000 pollution prevention, ITOPF said. 7 TORREY CANYON 1967 Scilly Isles, UK 119,000 8 SEA STAR 1972 Gulf of Oman 115,000 Minor spill problems 9 IRENES SERENADE 1980 Navarino Bay, Greece 100,000 10 URQUIOLA 1976 La Coruna, Spain 100,000 Against a background of a declining number 11 HAWAIIAN PATRIOT 1977 300 nautical miles off Honolulu 95,000 of major tanker spills, smaller operational 12 INDEPENDENTA 1979 Bosphorus, Turkey 95,000 13 JAKOB MAERSK 1975 Oporto, Portugal 88,000 spills and bunker spills from non-tankers 14 BRAER 1993 Shetland Islands, UK 85,000 continued to occur. “In our experience, even 15 KHARK 5 1989 120 nautical miles off Atlantic coast of Morocco 80,000 minor incidents can generate significant 16 AEGEAN SEA 1992 La Coruna, Spain 74,000 17 SEA EMPRESS 1996 Milford Haven, UK 72,000 claims for environmental damage and 18 NOVA 1985 Off Kharg Island, Gulf of Iran 70,000 economic loss, many of which can require a 19 KATINA P. 1992 Off Maputo, Mozambique 66,700 substantial contribution from ITOPF staff and 20 PRESTIGE 2002 Off Spanish coast 63,000 35 EXXON VALDEZ 1989 Prince William Sound, Alaska, USA 37,000 ensure that we remain busy”, the organisation Source: ITOPF. explained. Major oil spills since 1967

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ITOPF’s figures include spills from tankers, combined carriers and barges and Fire & Explosions Other operations Other/ Unknown take into account – accidental – spills and 7.2% 1.1% 5% not those caused by acts of war, such was Equipment failures 0.9% Collisions seen in the Middle East Gulf during the 29.1% Iran/Iraq conflict. Hull failures Information is held on almost 10,000 12.4% incidents with the majority of spills being in the smallest category, ie plus or minus seven tonnes. However, information on spills of Loading/Discharging more than seven tonnes tends to be more 8.1% reliable, ITOPF said. Of course one large spill can distort the Groundings figures as seen in the 1979 VLCC Atlantic 36.3% Empress (280,000 tonnes), the 1983 Castillo Source: ITOPF. de Bellver (252,000 tonnes) and the 1991 Incidence of spills >700 tonnes by cause, from 1970 to 2009 ABT Summer (260,000 tonnes) cases. By comparison, the Exxon Valdez grounding only amounted to a loss of 37,000 tonnes, Isles in 1967, resulting in a spill of 115,000 Causes of spills putting her at No 35 on the list of the tonnes of crude oil. Most incidents are the result of a combination all time highest oil spills recorded by There were several incidents on board of actions and circumstances, all of which OCIMF. VLCCs in the late 1960s and 1970s, however, contribute to a varying degree to the final The first major oil spill officially recorded these occurred while the vessels were in outcome. ITOPF has analysed spills taking concerned the Torrey Canyon, which ballast and were put down at the time to a lack into account the primary event, or the grounded and broke into two off the Scilly of knowledge on gas freeing. operation underway at the time of the incident. The Federation found that most spills resulted from routine operations, such as ““In our experience, even minor incidents can loading/discharging and bunkering, which normally occur in ports, or at oil terminals. generate significant claims for environmental The majority of the operational spills were small with some 90% involving damage and economic loss, many of which can quantities of less than seven tonnes, the Federation said. require a substantial contribution from ITOPF Accidental causes, such as collisions and groundings generally give rise to much larger spills with at least 84% of these staff and ensure that we remain busy” incidents involving quantities of more than ” 700 tonnes. TO Broad range of services offered

ITOPF was established as a non- The Federation’s membership currently Since 1978, ITOPF staff has attended profit making service comprises some 5,980 shipowners and some 650 incidents on site worldwide. organisation in 1968. In the bareboat charterers of more than 10,500 ITOPF also: early days its principal function tankers with totalling over 300 mill gt. Assesses the damage caused by spills was the administration of the The organisation also benefits from the to the environment and economic TOVALOP voluntary oil spill participation of some 495 mill gt of resources; compensation agreement. non-tanker tonnage owned and operated by Provides advice on the technical However, for the past 40 years, ITOPF has its associates. merits of claims for compensation; also provided a broad range of technical ITOPF's main sphere of activities is the Conducts contingency planning, services in the field of marine pollution to response to accidental marine spills and the advisory and training assignments; and on behalf of shipowners, their P&I organisation's team of highly experienced Produces a wide range of technical insurers and other groups, such as the technical staff are at constant readiness to publications; International Oil Pollution Compensation travel anywhere in the world at a few hours’ Maintains various databases as well as Funds, as well as to the community at large. notice, the organisation claimed. a website at http://www.itopf.com

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TOP 30 TANKER COMPANIES TAKEROperator’s Top 30 owners and operators

This list has been compiled taking the total deadweight tonnage of each fleet in descending order. The list includes owned, managed and operated tonnage where known. The total tonnage is made up of crude carriers, chemical and product tankers of over 10,000 dwt. We have not included FPSOs, or gas ships. The information has been compiled with the help of company websites, the Equasis database and other sources, plus the companies themselves.

FRONTLINE (18.9 mill dwt, plus 2.3 mill dwt newbuildings)

Despite a period of Part of the company’s tonnage restructuring long term charters. 1 cancellation and tonnage restructuring, plan, included the termination of timecharter All of the technical operations are sub- Frontline and its affiliates’ total comes out as contracts on five Suezmaxes from Eiger contracted to four third party shipmanagement much the same as last year’s listing. Shipping. Two were redelivered to their concerns. These include V Ships – Germany, The total is made up of 27 Suezmaxes, owners in November last year, another two Norway and the UK; Wallem eight OBOs and 45 VLCCs with another three last December and the final vessel was due to Shipmanagement; International Tanker Suez-maxes to come this year plus a further be redelivered this year. Management of Dubai (now part of V Ships) six VLCCs – two this year and four during In addition, in 2009 the company and its and Thome Shipmanagement. 2011-2012. affiliates cancelled four Suezmax and two Frontline has dealings with other companies At the beginning of this year, Frontline’s VLCC newbuilding contracts. in which Norwegian entrepreneur John commercially managed fleet included one The structure of the company has not changed. Fredriksen has interests. These include single hull Suezmax and five single hull It is still a commercial operation handling Independent Tankers Corp, Knightsbridge VLCCs. vessels owned by its affiliates and others on Tankers and Ship Finance International.

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TOP 30 TANKER COMPANIES MOL GROUP (17.4 mill, plus over 1 mill dwt newbuildings)

2 This international group carriers to 47, product tankers to 56 and chemical However, included in the figures are with its routes in Japan now says it tankers to 78, according to data published in the chartered vessels and those operated in joint operates 181 tankers of 17.4 mill dwt, which third quarter results as at September of last year. ventures. MOL’s main tanker subsidiaries moves the group into second place. In addition and not included in the overall include Tokyo Marine, Asahi Tanker and MS A steady stream of deliveries, including figures are 10 LPG carriers and interests in Tanker Shipping, which account for a large VLCCs, has taken the total number of crude 72 LNGCs. tranche of chemical tankers. TEEKAY CORPORATION (16.3 mill dwt)

Teekay only has one At the end of last year, the company had carriers, plus another four newbuildings. 3 chartered in VLCC on its books, hence 158 vessels shown on its fleet list. These Teekay’s interests in FPSOs came about due the total deadweight tonnage is less than included chartered in and managed vessels, to the acquisition of specialist Norwegian Frontline and MOL. plus 13 newbuildings. player Petrojarl, while the group’s shuttle The group, which now consists of Recently the fleet has diversified through a tanker business was built on the back of the separately public companies Teekay LNG series of mergers and acquisitions and now purchase of Navion, plus Anglo Nordic and Partners, Teekay Offshore Partners and Teekay consists of 45 Aframaxes; 35 shuttle tankers; tie ups with other companies. Likewise, the Tankers, plus parent Teekay Corporation, 30 Suezmaxes; 10 product tankers; six FSOs, product tanker business was built up on the claims to ship about 10% of the world’s five FPSOs and one VLCC. back of the 50% buyout of OMI with TORM. seaborne oil and has dubbed itself – ‘The Not included in the figures are a further 15 At the end of last year, the tanker newbuilding Marine Midstream Company’. LNGCs, plus four newbuildings and two LPG programme was coming to an end.

The purchase of the Navion fleet boosted Teekay’s involvement in the North Sea shuttle tanker sector.

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TOP 30 TANKER COMPANIES Nippon Yusen Kaisha (NYK) (11.5 mill dwt, plus 2.3 mill dwt newbuildings)

4 Taking NYK as a whole VLCCs, plus six other crude carriers, 33 In addition, NYK has interests in 10 entity the fleet has considerably product tankers and seven chemical carriers. VLGCs and one ammonia carrier, plus 39 increased with the deliveries of a tranche of NYK claimed that the number of VLCCs LNGCs. VLCCs with still more to come. now operated put the company in third place The newbuildings included another seven Under operational management are 35 in the large tanker category. VLCCs and one MR.

Overseas Shipholding Group (OSG) (10.8 mill dwt, plus 2.1 mill dwt newbuildings)

Similar to most tanker operators Euronav, have been converted to FSOs at vessels (two owned and five chartered) and 25 5 today, OSG operates a mixed fleet of Dubai for a contract to operate in Maersk Oil product carriers (10 owned and 15 chartered), owned and chartered vessels. Qatar’s Al Shaheen oil field off Qatar, but one which includes two US flag tankers trading The company is also involved with joint – FSO Africa, ex TI Africa - is now subject of internationally. ventures and pools. The company’s fleet a dispute between the owners and charterer, OSG’s US flag Jones Act fleet includes ranges from ULCCs, two of which are part while the other – FSO Asia, ex TI Asia – has 11 handysize tankers (four owned and owned with Euronav, taking in every tanker been delivered and is on site. seven chartered), seven ATBs and three size range and sector to Jones Act product In its foreign going fleet, OSG operates 15 lightering vessels. Neither the ATBs, nor tankers, specialised lightering tankers, VLCCs (including the ULCC TI Oceania). four Q-Flex LNGCs were included in the articulated tug/barge combinations (ATBs), These include eight owned and seven overall figures. plus a car carrier. chartered vessels. In addition, there are two As for the newbuildings, at the end of OSG has recently sold off all of its single chartered in Suezmaxes, 15 Aframaxes (six October last year, OSG had three VLCCs, hull units and today only operates double hull, owned and nine chartered, including an LR2), four LR1s, 15 handysize (five US flag), plus double bottom, or double sided tonnage. 13 Panamaxes (11 owned and four chartered, two lightering tankers on order, or under Two of the ULCCs, co-owned with including LR1s), seven specialist lightering construction.

NITC (10.6 mill dwt, plus at least 3.82 mill dwt newbuildings)

6 NITC took the world by surprise last year by ordering 12 VLCCs from two Chinese shipyards for delivery 2012-13. At the end of last year, the Iranian tanker company added the last of a series of 13 VLCCs built in South Korean yards, bringing the total VLCC fleet to 28. In addition, the Iranian concern has nine Suezmaxes and five Aframaxes trading internationally, plus three handysize chemical/product tankers used purely for domestic trades. As well as the VLCCs on order, NITC is believed to have ordered a series of five 63,000 dwt shallow draft Panamaxes for Caspian Sea operation from Iranian OSG owns a diverse fleet, including Jones Act tankers. shipyards.

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TOP 30 TANKER COMPANIES Sovcomflot Group (9.63 mill dwt, plus 1.4 mill dwt newbuildings) 7 Since the amalgamation of and two LPG carriers, plus various other types Sovcomflot and Novoship, the Russian of vessels in the fleet. giant now claims to be the world’s largest MR The Sovcomflot board at a regular meeting operator and the second largest Aframax on 18th December 2009 considered the results operator in terms of owned vessels. of the implementation of the ‘principal Due to its activities in the Barents Sea region, directions of Sovcomflot’s development’ for Sovcomflot is also the largest owner of Arctic the period of 2004-2009 and approved the shuttle tankers and due to its participation in SCF group’s strategy for 2010-2015. Sakhalin 2 project, the company also claims to During the past five years, the SCF fleet has be the number one in ice class LNGC operation. grown by more than three times. The average Of the 118 tankers currently operating, 15 age of the tankers has been reduced from 7.5 are Suezmaxes (plus one chartered), 36 to 6 years. Aframaxes (plus two in commercial By entering such sectors as the management), 12 smaller chemical tankers transportation of LNG and LPG, as well as the (formerly owned by MarPetrol), four LR2s, development of new and unique transportation five ice-classed shuttles (including three technologies for crude oil shuttle tanker Arctic shuttle tankers), 30 MRs (plus two operations in extremely harsh and heavy ice chartered) and 16 are handysize tankers (plus conditions of the Arctic and the Far East, the one in commercial management). range of services offered has been In addition, Sovcomflot’s newbuilding significantly broadened. Revenues have portfolio includes five Suezmaxes, four increased more than three times and in 2009 Aframaxes, two Panamaxes and two small amounted to $1.23 bill. The book value of net chemical tankers. assets has doubled to $2.81 bill and dividends Sovcomflot’s new livery can clearly be seen Not included in the figures are six LNGCs paid have increased by 14 times. on the MR East Siberian Sea.

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TOP 30 TANKER COMPANIES Euronav TORM (9.6 mill dwt, plus 1.3 mill dwt newbuildings) (9.6 mill dwt, plus 1.3 dwt newbuildings) 8 The Belgian-based tanker A total of 21 VLCCs and one ULCC are owner has increased its fleet since last operating in the Tankers International Pool of In this year’s listing, year’s listing. which, Euronav is one of the major partners. 9 we have included commercially Including long term chartered vessels and Another ULCC is currently being converted to managed tonnage where possible, hence those co-owned in joint ventures, Euronav an FSO, while a third is under long term contract. Danish product tanker giant TORM has has interests in 24 VLCCs/ULCCs, of which In addition, the company has still to take shot up the rankings. nine are chartered in either directly, or jointly delivery of one more VLCC and six TORM manages three pools – MR, with partners. Suezmaxes, which are on order or under LR1 and LR2 – which together with other In addition, there are another 18 Suezmaxes construction. Four of the Suezmaxes will be vessels managed, gives the company either owned, or operated on Euronav’s books. managed under joint venture agreements. responsibility for a grand total of 124 vessels split into 11 Handysizes, 49 MRs, 34 LR1s and 30 LR2s. In addition, TORM has a further 13 MRs and seven LR1s building for its own account.

The TORM Gerd operates in TORM’s Euronav has 21 VLCCs in the Tankers International Pool. MR pool.

Maersk Tankers (8.4 mill dwt, plus 3.3 mill dwt newbuildings)

10 Maersk Tankers, part of the In addition, Maersk Tankers manages 24 division in April 2009. AP Moller-Maersk group, has also LPG carriers. Elsewhere, the LNGC fleet is Another AP Moller-Maersk group affiliate shot up the rankings, partly due to the managed by Maersk LNG, having come manages FPSOs and FSOs, which are not amalgamation of Broström’s tonnage and under the banner of the Maersk Drilling included in the figures. partly through the delivery of newbuildings and more chartered in tonnage. Maersk Tankers This gives the Danish giant control over controls 33 LR2s. nine VLCCs, 33 LR2s, 33 MRs, 103 Handysizes, 66 intermediate and 16 small product tankers. Most of the vessels operate in various pools in which Maersk Tankers is the commercial operator, or partner. The total will probably increase even more next year as the company’s newbuilding portfolio includes another eight VLCCs, two Aframaxes, four MRs, seven Handysize and six small product tankers.

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TOP 30 TANKER COMPANIES Maran Tankers Management (8.4 mill dwt, plus 1.1 mill dwt newbuildings)

11 Formerly Kristen Navigation Today, the shipmanagement arm has 19 VLCCs, In addition, there is one Aframax and another and part of the Angelicoussis Group, 11 Suezmaxes and eight Aframaxes on its books. three VLCCs to come. Maran Tankers Management has expanded its The list of VLCCs include four vessels Another group company - Maran Gas - looks fleet since the last review. longterm chartered to Chevron Shipping. after the fleet of LNGCs and LPG carriers. AET Tankers (6.9 mill dwt, plus 1.9 mill dwt newbuildings)

12 The MISC Berhad subsidiary MRs and two smaller tankers on order, or in mid-2010. operates 11 VLCCs, 49 Aframaxes, under construction, all due to be delivered this Parent MISC also claims to be the world’s one LR2, one Panamax, three MRs and six year, or next. largest independent operator of LNGCs and smaller coastal tankers. For its Galveston lightering operation, AET also has two FPSOs and one FSO on its In addition, AET has 13 Aframaxes, three has two workboats on order, due for delivery books, plus a series of chemical tankers.

AET operates 49 Aframaxes and has another 13 to come.

VELA International Marine (6.2 mill dwt, plus 1.3 mill dwt newbuildings)

13 Saudi giant Vela has shed Today, the fleet consists of 20 VLCCs Added to this, are an unknown number a few single hull VLCCs and taken (down from 24) one Aframax (LR2) and four of tankers regularly taken on timecharter, delivery of its sixth newbuilding VLCC in the MRs. In addition there are another four or spot charter, on behalf of its parent period under review. VLCCs to come from Daewoo this year. Saudi Aramco.

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TOP 30 TANKER COMPANIES National Shipping Corporation of Saudi Arabia (NSCSA) (5.8 mill dwt, plus 720,000 dwt newbuildings)

14 NSCSA is another At the time of this survey, NSCSA 80:20 owned in a joined venture with company, which has shot up in controlled 17 VLCCs and 11 chemical SABIC. the rankings. This was due to taking delivery carriers. There are another 16 chemical The Dubai-based Saudi company also has of a series of VLCCs with possibly more carriers under construction, which will join a 30.3% interest in Petredec, operator of a to come. their sisters in the NCC subsidiary. NCC is fleet of LPG carriers. Dynacom Tankers BW Maritime Management (5.5 mill dwt, plus 720,000 dwt (5.7 mill dwt, plus 1.2 mill dwt newbuildings) newbuildings) 15 Dynacom has also risen in the rankings, due to 16 Singapore-based concern – taking delivery of one VLCC, two Suezmaxes and eight Panamaxes BW Maritime – formerly BW Shipping last year. Management, manages 16 VLCCs, 12 LR1s and two smaller At the turn of the year, the company had 10 VLCCs, nine Suezmaxes, one chemical carriers. Aframax and 18 Panamaxes. The company’s newbuilding projects include two more Some of the VLCCs are vintage so some sales are probable this year. VLCCs. Early this year, Dynacom is due to take delivery of another two Other affiliates look after offshore and gas shipping Suezmaxes and has a further six VLCCs on order. interests of the BW Group, which are substantial.

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TOP 30 TANKER COMPANIES Tsakos Energy Navigation Ocean (TEN) Tankers (5.5 mill dwt, plus 526,000 dwt newbuildings) (5.4 mill dwt, plus 2.4 17 At the beginning of January, In addition, TEN has a further two mill dwt newbuildings) TEN operated 51 tankers covering all Aframaxes for delivery this year and two size ranges from VLCCs to Handymaxes. more Suezmaxes on order for delivery 2011. Also higher up in the The split was 26 crude carriers from In late January, the company announced 18 pecking order, Singapore-based Ocean VLCCs to Aframaxes and 24 products tankers that it had sold two Aframaxes – the 2003 Tankers has taken delivery of several vessels from LR2s to Handysizes. The other vessel is built Marathon and Parthenon – for a total with more to come. an LNGC. of $78 mill. Ocean Tankers is an affiliate of Hin Leong and thus far manages four VLCCs, seven Suezmaxes, 14 LR2s, seven LR1s, 21 MRs, 19 what are called general purpose tankers and 12 bunker barges. On the newbuilding front, the company has seven VLCCs and three MRs on order, or under construction.

BP Shipping (4.3 mill dwt) TEN’s 40,000 dwt MR Byzantion seen anchored in Fos Bay. 20 There is no change to BP’s fleet composition this year and no newbuildings on the horizon. Tanker Pacific Today, the shipping arm of the oil major Management manages four VLCCs, 20 Aframaxes in two (5.2 mill dwt, plus 900,000 dwt newbuildings) classes, 17 MRs in two classes, plus four VLGCs, seven LNGCs in two classes, one 19 Tanker Pacific is another Aframaxes, two LR1s and 13 MRs. LNGC for the Northwest Shelf project and a company to have sold off its single Its newbuilding programme consists of four shuttle tanker. hull tankers recently in the light of the IMO Aframaxes and eight MRs. phase-out. In addition, affiliate Tanker Pacific Offshore This leaves the Singapore-based company Terminals owns FPSOs and FSOs, which were with eight VLCCs, two Suezmaxes, 18 not included in the figures. China Shipping Dalian Ocean Shipping (4 mill dwt, plus 1.1 mill dwt newbuildings)) Development (4.3 mill dwt, plus 1.6 22 Part of the huge COSCO One VLCC is shown for delivery this mill dwt newbuildings) group, Dalian Ocean Shipping year out of three on order. In addition, operates eight VLCCs, three Suezmaxes, the company has another two Aframaxes one Aframax, 13 Panamaxes and an MR. to come. 21 Although difficult to quantify as many of the vessels are purely employed on coastwise trades, a calculation using the Equasis database Minerva Marine showed that the conglomerate operated four (4 mill dwt) VLCCs, five Aframaxes, 13 Panamaxes, 34 Handysize to MRs, plus a plethora of small Minerva Marine has risen five Suezmaxes, 19 Aframaxes and 10 MRs. product tankers. 23 slightly in the rankings due to new In addition, Minerva recently entered the As for the company’s newbuilding deliveries, including a VLCC last year. drybulk Capesize market and now manages programme, this consists of three VLCCs, The company now manages two VLCCs, three recently delivered units. eight Panamaxes and two MRs.

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TOP 30 TANKER COMPANIES Shipping Corporation of India (SCI) (4 mill dwt, plus 1.2 mill dwt newbuildings)

24 SCI’s huge fleet is undergoing being used for storage and lightering duties. year and another one is to come. In addition, a replacement programme as the Included in this review are four VLCCs, six there are six LR1s, two LR2s and four earlier tonnage is single hull, whose Suezmaxes, eight Aframaxes, seven Aframaxes on order or under construction. operation is now banned along the Indian Panamaxes, eight MRs and six Handysize There could be more orders in the pipeline, as coast. tankers. The company also has interests in two similar to other Indian owners, state-owned SCI Several vessels have been sold for recycling LPG carriers and two LNGCs. is looking to further build up its fleet on the and more will no doubt follow. Others are Two MRs were delivered in January of this back of increased Indian refining capacity. Thenamaris Ships Chevron Management Shipping (3.7 mill dwt) (3.5 mill dwt)

This company regularly Chevron Shipping operates 25 buys and sells tonnage, as well as 27 eight VLCCs, four Suezmaxes, two being active in the newbuilding Aframaxes and five MRs. market. Four of the VLCCs are on longterm charter At the turn of the year, Thenamaris from the Angelicoussis group. managed two VLCCs, seven Suezmaxes, 16 The shipping arm of the US oil major has Aframaxes and five MRs. several 1970s built tankers, but all are double In addition, the company also has a sizeable hulled. drybulk carrier fleet. One of Thenamaris’ 16 Aframaxes. Chevron also has interests in two LPG carriers and one of the Northwest Shelf project LNGCs. Univan Ship Management (3.7 mill dwt) SK Shipping (3.2 mill dwt, plus 1.1 26 Univan manages 12 VLCCs, three MRs and eight smaller mill dwt newbuildings) chemical/product tankers. Among the tankers under management are 28 SK Shipping is involved vessels for Cido, Dannebrog Invest with South Korea’s utility companies Management, Shinyo, TMT and Van-Clipper. by shipping oil and gas. The company is also involved with The company manages nine VLCCs, two newbuilding supervision for third-party LR2s and three MRs, plus one Handysize owners, including VLCCs. tanker. As for newbuildings, SK Shipping has seven VLCCs on order, or under construction. Associated In addition, SK Shipping has interests in six LNGCs and a further six LPG carriers. Maritime Univan manages 12 VLCCs. (3 mill dwt, plus 1.2 mill dwt newbuildings) Kuwait Oil Tanker (KOTC) AMC is the tanker (3.1 mill dwt) 30 shipmanagement arm of the Hong Kong Min Wah Group, itself part of the giant China Merchants Group. 29 One LR1 has been added to KOTC also has another four VLCCs The company manages eight VLCCs, eight the fleet since the last Top 30 listing, on order, or under construction. Afrmaxes, one Suezmax and has a further four giving KOTC a total of eight VLCCs, three In addition KOTC manages four VLCCs on order, of which two were due for LR2s, three LR1s and three Handysize LPG carriers and another four bunker delivery early this year. product carriers. tankers.

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ANNUAL REVIEW - INSURANCE Risks associated with new green fuel legislation Regulations for the restriction of air pollution from ships will mean extra costs and responsibilities for shipowners, BMT Marine & Offshore Surveys has warned.

peaking at a London insurance includes EU Sulphur Directive (2005/33/EC) market seminar organised by the for most ships ‘at berth’ in EU ports marine consultancy, principal (1/1/2010), CARB Regulated California Ssurveyor Gerry Williams said: Waters regulations, mandating the use of “Burning ships’ fuel in an environmental ISO8217: 2005 DMA or DMB grade fuels in manner is a huge challenge.” main and auxiliary engines and auxiliary Williams said that fuel technology is a boilers (1/1/2012) and MARPOL Annex VI discipline and a science, on its own. Most for fuel oils to be used inside ECAs shipowners currently use a fuel mix (1/1/2015). containing on average worldwide 2.6% Currently, according to a survey, the sulphur, but Marpol Annex VI regulations average sulphur content in heavy fuel oil is specify a reduction in July 2010 for ships to 2.46%, although some owners already have a 1%, and in 2015 to 0.1% in ECAs. sulphur limit of 1.5% in their specification. The control areas are the English Channel, Yet there is little experience around of the North Sea and Baltic Sea. Ships can still burn likely effects of using 0.1% sulphur, said 1.5% sulphur in the Mediterranean and Williams, and this experience may come at a potentially 4.5% outside the European Union. premium as this legislation comes into force. The US has similar legislation pending, which Turning to other fuel concerns, Williams would create control areas 200 nautical miles said that what was described as ‘bad fuel’ in off its coastlines. One of 24 miles off casualties was more to do with poor handling, California is already in force and has its own rather than sub-standard fuel. In one example, separate controls, one of which sets all fuels a chief engineer experiencing severe to or below 0.1% by 1st January, 2012. purification problems, such as heavy sludging, “Potentially, this could result in some ships forced through the out of specification fuel BMT’s Gerry Williams. carrying four different fuel types at any one rather than reporting a problem and as a time. The complex changeovers will result, wrecked the engine. product, inflicting serious damage. Chemical inevitably increase the opportunity for errors and other wastes had found their way into fuel which in turn may lead to costly claims,” Engine damage selling at $500 per tonne. On one occasion explained Williams. Poor management of even above average fuel was contaminated by waste from the specification fuel could cause a very costly cosmetics industry. “The engineer surveyor Record keeping vital failure. For example, since 2001, BMT had a difficult time explaining to his wife In order to comply with the legislation, a surveyors have dealt with at least 30 instances when he came back from survey why he smelt ship’s officer will have to demonstrate in his of engine damage caused by fuel problems of perfume when he usually smelt of the or her record-keeping that the fuel has been related to catalytic fines. This problem is engine room!” said Williams. changed in sufficient time before crossing into increasing and is likely to get worse with the Calling for strict controls by shipping a control area. The changeover can be done in additional demands for low sulphur fuels. companies over their use of fuel, he urged that about one hour, but if it is done too quickly, Each of these casualties required a complete they institute, or improve fuel management “there is a danger you can gas up the engine.” renewal of pistons, liners and injectors, at a programmes to ensure sampling before use A rapid change of temperature can also cause cost of $1 mill to $3 mill each. One resulted in and regular inspection of handling. Williams thermal shock, or seizure of the fuel pumps. a vessel failing to keep up with a convoy and said that exemplary care was shown by Commencing in 2010, a raft of legislation falling victim to Somali pirates. managers of the Maersk fleet. He said that the limiting sulphur in marine fuels to 0.1% will Williams also referred to the problem of company does not allow its ships to use any come, or have already come into force. This unscrupulous suppliers adding waste to their fuel until thoroughly analysed and confirmed

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ANNUAL REVIEW - INSURANCE

This means there will soon be big ships in regions and very limited refuges where a the Arctic travelling quickly, and no disabled vessel could safely spend the winter. operational experience exists in this area. If ice formed more rapidly than expected, it BMT therefore is trying to develop a thorough would be impossible to find a safe haven. He understanding of what the loads of these ships said that the Canadian Arctic, an area the size will be, and whether LNGCs will take the of Western Europe, has a population of dynamics of ice-breaking loads. These ships 15,000, and these people are dispersed in will, however, cost significantly more than the small settlements. standard open water ships. Rescue difficult Oil and gas Therefore, it would take some time before any The biggest factor exciting people at present is rescue service could intervene by air, let alone the prospect of oil and gas: the Arctic is by sea. Lifesaving equipment is unsuited for estimated to contain up to 25% of the world’s polar conditions, and pack ice would quickly undiscovered reserves and several giant fields rip liferafts apart. Lifeboats had little inherent have been discovered. Kendrick forecast that winterisation, while non-ice strengthened sea transport will play a major role in energy vessels would simply be crushed, he said. exploitation, with offshore fields having The development of Arctic shipping suffers marine components for exploration, drilling from a severe lack of trained people, and production; heavylift by ship and barge following from the downturn in training in the will compensate for lack of infrastructure late 1980s and early 1990s. To fill the gap, BMT’s Andrew Kendrick. around onshore fields; and movement of LNG retired Russian, or Canadian icebreaker cargo will be by sea. officers, sometimes well into their 70s, are by the technical management ashore that it Pipelines are difficult to build in Arctic being asked to perform the duties of an ice can be used. areas, and keeping the permafrost bed frozen navigator, advising a vessel’s master. He also praised the new Lab-on-a-Ship concept developed by Danish company NanoNord and classification society Lloyd’s “World authorities and maritime Register, which checks the fuel and lubes before use. “ businesses remain desperately short of

Polar problems expertise in ensuring safe shipping operations Speaking at the same seminar, Andrew in polar regions” Kendrick, vice-president of BMT Fleet Technology, the Canadian subsidiary of BMT Andrew Kendrick, vice-president BMT Fleet Technology Group addressed the problems of overcoming ” navigation in ice covered waters and cold climates. in summer is a key factor. “As the summers In addition, the absence of both adequate ice “World authorities and maritime businesses get longer and the winters get warmer, that navigation simulators and on board experience remain desperately short of expertise in becomes more of a challenge.” said Kendrick, makes a challenging situation more difficult. ensuring safe shipping operations in polar as pipelines are both a technical and an This is further complicated by the fact that regions,” Kendrick said. ecological risk. standard modern radar does not pick up the This situation prevails despite the rush to The Antarctic presents a more complex presence of ice particularly well. Charts are exploit and trade minerals in these harsh problem when it comes to managing poor, except for those which are the preserve of climates, and sell polar passenger cruises, he emergency response, due to its remoteness military powers. This is made worse by the fact explained. Laboratory testing cannot provide all and low population density. As a result, the that national governments are not investing the answers as to what happens when a 100,000 IMO has been asked to turn its guidelines for much in charts, although energy companies are dwt vessel crashes into a large piece of ice. ships operating in polar waters into a working on this necessity. But BMT is discussing with shipping mandatory code. BMT Marine & Offshore Surveys recently companies how to build a new, safe Kendrick went on to warn of limited received the Chartered Insurance Institute generation of Arctic tankers. What is well icebreaker support and expressed concern that (CII) accreditation for its training events and known is that even light ice can exert it will probably be at least a decade before a seminars during 2010. The company is dangerous forces on a ship, especially those new generation of icebreakers is available arranging further CII accredited seminars in with poor quality steel. Furthermore, the from any government source. Response times New York, Greece and Hong Kong in the speed of a ship is critical in an impact; while for any emergencies are therefore going to be first half of this year. These will address most sail quite slowly in the Arctic, LNGCs slow for summer events and very slow for topics such as lay-up problems, new bunker cannot because for reasons of efficiency, they winter events. fuel regulations, polar ice operations as have to keep up with the trains (facilities) On a similar theme, Kendrick went on to well as the Chinese newbuilding and producing the LNG, Kendrick explained. underline that there are very few ports in polar components market. TO

XVI TANKEROperator Annual Review March 2010 IBC:OBC.qxd 26/02/2010 10:50 Page 1 TANKEROperator

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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