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    Tanker operator-magazines-march-2012 Tanker operator-magazines-march-2012 Document Transcript

    • TANKEROperatorMARCH 2012 www.tankeroperator.com Incorporating the TANKEROperator Annual Shipping Review
    • Contents Markets04 Demand heading for a slowdown News Profile06 Shipboard fatigue - fact US Report10 Arntzen spells it out Pipeline, or tanker? 30 STS Transfer GAC enters Sri Lanka LOI warning 32 Tank Services IMO’s PSPC COT Scanjet expands ANNUAL REVIEW Shipmanagement14 InterManager gains Inmarsat’s service bundle AWT upgrades Wallem goes for DNV Chemical/Product Tankers19 Low contracting a good sign What’s in your tank? Piracy24 ISS’ solution I We’ve been here before CCTV protection III How did it go wrong? Technology X Top 30 Listing26 26 Latest LPGC delivered XVIII Noboru Ueda Profile XX Witherby changes tack Front cover Thomas Gunn is to supply an additional 43 Unicom-managed vessels with its outfit management service, bringing the total up to 78 vessels, the bulk of the company’s fleet. The vessels will be supplied with both customised Russian Hydrographic Office and UK Hydrographic Office charts and publications, in both digital and paper format.March 2012 TANKEROperator 01
    • COMMENTFishermen shot dead- an accident justwaiting to happenThe alleged shooting dead of two Indian fishermen at least notes taken - to compare with the AIS.off the Indian coast last month has thrown up a An Italian report issued in mid-February called for a ballisticsplethora of theories and counter theories as to what comparison. Unfortunately, the Indians who were shot and killed aredid actually happen. not to be given autopsies, as the Indian authorities refused.The upshot was that the D’Amato managed Aframax Enrica Lexie was To help create a level playing field, C-Level Maritime Risks calledtaken to Kochi where the armed guards on board were arrested and for armed guard regulations to have teeth. ‘If it is found that an armedcould be charged with murder. guard team has fired in error, that’s bad enough - but for it to remain Although at the time of writing, it was early days following this quiet, that’s really much more condemnable. And self-regulation reallyincident, the facts as stated by both the Italians and Indians do not add is not the way to go - it’s a necessary but not sufficient condition’, theup, according to one US-based security concern. security company’s report said. At the beginning, the Italians insisted that they were approached by a In conclusion, the report said that the IMO has to step in and startboat that didn’t answer to warnings, including flares and radio calls (It adopting regulations with teeth - this is the wake-up call that has to behas since been established that both were attempted, quoting a report noticed - otherwise more will die - and countries will again findfrom Washington, DC-based C-Level Maritime Risks). themselves shoved into confrontations that no one wants, while pirates Conflicting reports of the incident have been received from both profit from the confusion and the new reticence of guards to use theirsides. For example, the Italians insisted that the event occurred 30 miles weapons.off the Kerala coast - at 12.30 hours Rome time - or 14,30 hours local Another US-based security concern told Tanker Operator a couple ofIndian time. And the Italian Navy reported the encounter first - before months before this incident occurred that there were many fishinganyone else, including the Indians. vessels in the Gulf of Aden/Red Sea areas. The fishermen are mostly For their part, the Indians insisted that the attack occurred at only 14 armed for their own protection, as they live by the gun in almostmiles off the Kerala coast - which they insisted was inside territorial lawless states. However, they pose virtually no threat to passingwaters. However, even if the distance was correct, the conclusion was shipping.wrong. Territorial waters extend only 12 miles, while 14 miles is in UK-based marine safety concern, BCB International has called oninternational waters. world leaders to rethink the self-protection measures used by What was really confusing, said C-Level, was that the Indians claim commercial ships to ward off pirate attacks. The company said that itthat the attack occurred at 17.00 hours locally - a full 2.5 hours later had been warning for some time about the dangers linked with the usedthan when the Italians said it occurred. of armed guards on commercial vessels. Another anomaly was, if the Italian marine infantry are to be While accepting that the vast majority of armed guards protectingbelieved, the description of the fishing boat from the Indians did not commercial vessels are extremely well trained and highly professional;match the description of the boat they encountered. There were also the company said that there can be no room for human error whenconflicting reports on the number of fishermen seen on board the vessel lethal force is used.and the number of bullets actually fired. We have also seen reports of naval units attacking innocent fishing The official Indian story was that there are no pirates in the waters craft with fatal results. After all, in the Indian Ocean, pirate motheroff Kerala, which the security company said is ‘simply not true’. ships are often captured dhows, or large fishing vessels. How do you Fishermen often approach a large vessel underway, as its wash churns tell the difference when put in a position where a decision has to beup the surrounding sea and with it the fish. taken almost in a split second? Following the reported incident, someone should have accessed the Was this particular incident caused by trigger happy marines, a shearAIS tracks of the Enrica Lexie and the other ships in the vicinity and panic reaction, or a calculated attempt to ward off an attack? Both sidescompared them with the time and location of the Indian fishing boat. differ on this. TO The coastal radar of the Kerala Coast Guard should be recorded - or The P&I clubs must be tearing their hair out. TANKEROperator Vol 11 No 4 EDITOR SUBSCRIPTION PRODUCTION Tanker Operator Magazine Ltd Ian Cochran 1 year (8 issues) Wai Cheung 2nd Floor, 8 Baltic Street East Tel: +44 (0)20 8150 5295 £195 / US$320 / €220 Tel: +44 (0)20 8150 5291 London EC1Y 0UP, UK cochran@tankeroperator.com 2 years (16 issues) wai@tankeroperator.com www.tankeroperator.com £300 / US$493 / €336 Printed by PRINTIMUS ADVERTISING SALES Subscription hotline: Ul.Bernardynska 1 Tel: +44 (0)20 7017 3405 41-902 Bytom PUBLISHER/EVENTS/ Melissa Skinner Poland SUBSCRIPTIONS Only Media Ltd Fax: +44 (0)20 7251 9179 Karl Jeffery Tel: +44 (0)20 8950 3323 Email: Tel: +44 (0)20 8150 5292 mskinner@tankeroperator.com jeffery@thedigitalship.com jeffery@thedigitalship.com 2 TANKEROperator March 2012
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    • INDUSTRY – MARKETS Tanker demand heading for a slowdown? During the middle of January, BP released its long term view of energy markets to 2030. lthough the outlook covers all would increase by a massive 23 mill barrels the Libyan pre-crisis total. Spain and ItalyA energy sources, for tanker markets the emphasis obviously is on oil. Gibson Researchhighlighted several points from the BPforecast that are closely related to the tanker per day.” This huge difference illustrates the importance of technology combined with government/consumer policies and the bearing it will have on the tanker business, Gibson have been the biggest European importers from Iran in recent times. It was also notable that France has gone from zero imports in the fourth quarter of 2010 to average 76,000 barrels per day duringsector. said. the second and third quarters of 2011. Most importantly, BP expects growth in On the supply side, growth in global liquids With Libyan crude exports now nearing pre-global liquids demand of 16 mill barrels per demand is expected to be met primarily by crisis levels, by the time the ban isday (oil, biofuels and other liquids) over the increasing OPEC production, which would implemented, Europe will be well placed tonext two decades, rising to 103 mill barrels rise by 12 mill barrels per day, with the largest switch supplies away from Iran.per day by 2030. This compares with growth gains in NGLs and crude output from Iraq and Europe’s economic growth (or lack of it) isof 19 mill barrels per day over the past 20 Saudi Arabia. also a major factor as demand is unlikely toyears, resulting in a slowing down, from an Perhaps worryingly for the tanker market, rise significantly during 2012, Gibson said.average of around 1.2% per annum to 0.8% BP anticipates that the Americas will largely Should Europe require to source alternativeper annum. become energy self-sufficient by 2030, due to crude supply, Saudi Arabia is the obvious However, a critical part of the outlook is strong growth in Canadian oil sands, Brazilian candidate to make up any shortfall. Saudithat only 9 mill barrels per day is expected to deepwater projects and US shale oil, as well Arabia could supply any shortfall through thecome from crude oil, with the rest coming as US and Brazilian biofuels. Sumed pipeline taking up the capacity vacatedfrom biofuels, NGLs and other fuels Overall, these trends will have major by the loss of Iranian crude.(including processing gains), Gibson said. implications for the tanker markets. Although Currently, Iranian exports to the Far EastChina and India would account for more than at present the immediate threat for the currently represent about 60% of its crude70% of demand growth, with consumption industry is tonnage oversupply, in the long run exports. Tougher sanctions on Europe willrising by 8 mill barrels per day and 3.5 mill factors such as slowing demand, simply mean more crude will go east. Indiabarrels per day, respectively. Demand in environmental concerns, fuel efficiency and and China will cite economic reasons for theirOECD countries is likely to fall by 6 mill technological advances will be among the reliance on a continuous supply, as theirbarrels per day. main drivers that will shape the future of the economies continue to grow. As a further Faced with a difficult task of projecting so oil markets and with it, demand for tanker inducement, Iran may offer crude atfar ahead, BP’s outlook is based on the transportation, Gibson concluded. discounted prices in order to ensure thatassumption of accelerating current trends in exports continue to their largest customers inthe energy sector, such as a drive for cleaner Iranian exports Asia.energy and greater fuel efficiency. Turning to Iran, the recently announced After 1st July, the political focus will turn For example, in the transport sector, European ban on imports of Iranian crude oil east as the US and Europe attempt to ramp up“…..efficiency of the internal combustion due to come into force on 1st July could mean more pressure on India, Japan and Southengine is likely to double over the next 20 a significant shift in crude oil movements. Korea to join the ban. Turkey will also comeyears,” BP said. This incorporates that Exports of Iranian crude into Europe under pressure as it is the fifth largest“…sales of conventional passenger vehicles, increased during second and third quarters of importer of Iranian crude. In the US, tougheraccounting for nearly 100% today…” will 2011, partly as a direct result of the loss of 1.3 financial sanctions are already on the agenda,decline to a third of total car sales by 2030 mill barrels per day of Libyan crude during Gibson said.and that sales of hybrid cars will dominate. the civil war. Several tanker operators have already stated However, BP cautions that if there are no Gibson calculated that Iran currently their intention of not loading at Iranianchanges to fuel efficiency, car usage and use exports around 0.7 mill barrels per day into terminals, including Tankers International TOof alternatives, “oil demand in road transport the European refinery system, almost half of and Frontline.04 TANKEROperator March 2012
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    • NEWS FOCUS - PROJECT HORIZONShipboard fatigue now scientificallyrecognisedThe results of a 32-month, partEU funded, 11 - partner researchproject into fatigue at sea havebeen published.The project clearlydemonstrated that certain ship watch patternscarry an increased risk of sleepiness, whichshould serve as a wake-up call to the industry,a leading maritime union official said at therecent launch of its findings. One of the project’s partners, Anglo-Dutchmaritime union Nautilus’ senior nationalsecretary Allan Graveson said the unionwelcomed the results and urged the shippingindustry and those who regulate it to act onthe findings. ”Nautilus welcomes this research, whichprovides detailed scientific support todemonstrate the validity of our concerns aboutfatigue at sea. No other safety-critical industrywould allow key personnel to regularly workup to 91 hours a week and this study offers The participants were wired up to monitor fatigue levels.the opportunity to move to methods ofworking that are based on science rather than Ice Class Tankers a TANKEROperator report Researched and written by Ian Cochran Arctic Tankers - a new Gold Rush? 18,000 word report by Tanker Operator’s editor, Ian Cochran £400 - March 2012 Northern Sea Route voyages Cost comparison with Suez Regulatory requirements Expected market growth Regulations - Polar Code Shore infrastructure Available to purchase online from our online store, alternatively to order please e-mail, Karl Jeffery, publisher, on jeffery@d-e-j.com Tel +44 208 150 529206 TANKEROperator March 2012
    • INDUSTRY – PROJECT HORIZONsocio-economic grounds. “The shipping industry and those who regulate it cannot afford to closed gaugingignore these findings,” he said. He was speaking of ‘Project Horizon’, the findings of which haveprovided a first benchmark for understanding and predicting howdifferent watch systems influence the level of fatigue, or sleepiness ofship’s officers. The research project brought together academic institutions andshipping industry organisations (see table), with specialist input fromsome world-leading transport and stress research experts. It made pioneering use of bridge, engine room and cargo simulatorssimultaneously to assess scientifically the impact of fatigue in realisticseagoing scenarios that would be encountered on board a 40,000 dwtproducts tanker undertaken two return voyages between Fawley in theUK and Rotterdam - a total trip of seven days. During the simulated vessel’s laden leg, two grades of cargo werecarried in order to test the shipboard personnel in the simulated cargoloading and discharge operations room. The cargo tanks were ‘fitted’with an inert gas system. In total, 90 experienced deck and engineer officer volunteersparticipated in rigorous tests at Chalmers University of Technology inGothenburg (50 persons) and Warsash Maritime Academy atSouthampton Solent University (40 persons) to measure their levels ofsleepiness and performance during the most common watch keepingpatterns – four hours on/eight hours off (4/8) and six hours on/six hoursoff (6/6). Some of the Gothenburg-based volunteers were also exposed to a‘disturbed’ off-watch period, reflecting the way in which seafarers mayexperience additional workloads, as a result of port visits, bad weather,or emergencies. The HERMetic UTImeter Basically, Chalmers simulated the standard three bridge Gtex is a portable electronicwatchkeeping scenario of four hours on and eight hours off and a‘disturbed’ 6/6 watch whereby deck officers were in a state of 18 hours level gauge for closed gascontinuous wakefulness. tight operation. Professor Mike Barnett, associate director (research) at WarsashMaritime Academy, Southampton Solent University, explained that The unit is used for custodyWarsash simulated both deck and engine room undisturbed 6/6 routine transfer, inventory control measurement andlinking the simulators. The cargo control room simulator was used free water detection on marine vessels.while the ‘vessel’ was in port. Both voyages between Fawley andRotterdam were simulated to be as realistic as possible, including a Connected to a HERMetic vapour controlpilot coming on board. The intake of caffeine was regulated by only valve, the UTImeter Gtex avoids any gasallowing four cups of coffee per day and no alcohol was allowed release during operation and enables 3during the experiment. The two round trips were then compared. measurements in one single operation: Participants came from many countries and were taken from all age ullage, temperature and oil-water interfacegroups and both male and female junior officers were used, all acting level measurement.as 2nd or 3rd Mates, as solo watchkeepers, or 2nd or 3rd Engineers forengine room duties. Those in the cargo control room simulator had By increasing safety and efficiency,some tanker experience and from which communications traffic was Honeywell Tanksystem helps customerssimulated, such as when undertaking bunkering operations in port. improve business performance. In addition, there was a Chief Officer and an AB on call, but theywere not present on the bridge during the watches. The deck officerswere not allowed to use an ECDIS and had no alarm systems to helpthem. A chair was placed on the bridge to see if the watchkeeperswould use it with mixed results. Key findings showed the most marked sleepiness detected was in the6/6 team where at least one occurrence of falling asleep on watch wasdetected among 45% of officers on the midnight to 6 am watch andthere was also one occurrence for about 40% of those on the midnightto 4 am watch in the 4/8 group. For more information visit our website Watchkeepers were found to be most tired both at night and the (continued on p9) www.tanksystem.com or call +41 26 919 15 00 © 2012 Honeywell International, Inc. All rights reservedMarch 2012 TANKEROperator
    • INDUSTRY – PROJECT HORIZONThe two simulated voyages with the different watches. Project ‘Horizon’ Key findings At least one occurrence of sleep was observed between the watch systems and at night and in the afternoon and sleepiness detected among 45% of officers in the 6/6 depending on whether off-watch periods were levels were found to peak towards the end of team working the 0000-0600 hrs watch at disturbed or not. Overall sleep duration for night watches. Chalmers and one occurrence for about 40% those on the 4/8 pattern was found to be The 6/6 regime was found to be more of those on the 0000-0400 watch in the 4/8 relatively normal, with around 7.5 hours per tiring than the 4/8 rotas and ‘disturbed’ off- pattern. day for those in Team 1 at Chalmers and watch periods were found to produce At Warsash, where the watchkeepers about 6 hours for Team 2 at Warsash. significantly high levels of tiredness. remained undisturbed in their off-watch rest Participants working 6/6 watches were In both watch systems, the disturbed off- periods, the number of occurrences of found to get markedly less sleep than those watch period was found to have a profound sleeping on watch for officers on the 6/6 on 4/8, and data showed a clear ‘split’ effect upon levels of sleepiness. pattern varied and was up to more than 20% sleeping pattern in which daily sleep on the There was evidence that routine and on the 1800-0000 watch. 6/6 pattern was divided into two periods — procedural tasks could be carried out with Such incidents of sleeping on watch were one of between three to four hours and the little or no degradation, while participants found within both watchkeeping patterns, and other averaging between two to three hours. appeared to find it harder to deal with novel they mainly occurred during night and early Reaction time tests, carried out at the start ‘events’, such as collision avoidance or fault morning watches. and end of each watch, showed clear diagnosis, as the ‘voyages’ progressed. Participants in all the groups reported evidence of performance deterioration – and Researchers also noted a decline in the relatively high levels of subjective sleepiness the slowest reaction times were found at the quality of the information being given by on the KSS scale, which got higher towards end of night watches and among those on the participants at watch handovers as the week the end of a watch and the end of the week. 6/6 patterns. progressed. Varying degrees of sleep loss were Watchkeepers were found to be most tired08 TANKEROperator March 2012
    • INDUSTRY – PROJECT HORIZONafternoon while sleepiness levels were found to peak towards the endof night watches. Participants were performance tested using a hand held computer(PVT) when they came on watch and then again when they went offwatch. Performance deteriorationReaction tests carried out at the start and end of each watch alsoshowed clear evidence of performance deterioration – the slowestreactions were found at the end of night watches and among those onthe 6/6 patterns. Routine and procedural tasks were able to be carriedout with little or no degradation, but participants appeared to find it KROHNE Skarpenordharder to deal with novel ‘events’, such as collision avoidance, or fault offers complete solutionsdiagnosis, as the ‘voyages’ progressed. It was found, however, that the deck and engineering teams for monitoring of liquidsdeveloped a good working relationship. Social interaction was onboard all kinds of shipsencouraged as was deemed very significant. It was thought that fatiguewould reduce peoples’ interaction with each other. Researchers have used the data to develop a new fatiguemanagement toolkit – Fatigue Risk Management Systems - for use byshipowners and managers, seafarers, regulators and others, to helparrange working schedules to mitigate risks to ships and their cargoes,seafarers, passengers and the marine environment. It is hoped thatthese can be used as part of the Safety Management System (SMS)within the ISM, Professor Barnett said. It is hoped to develop a crisis management project, which will lookat how to manage fatigue in difficult circumstances. For this project,senior officers, such as Masters, Chief Officers and Chief Engineers,will take part. Project Horizon partners Warsash Maritime Academy, Southampton CARGOMASTER® – The all-in-one tank Solent University – co-ordinator. monitoring system Bureau Veritas, Marine Division Research CARGOMASTER® is the complete Department. solution for tank monitoring and alarm. The system is well proven Chalmers Tekniska Hoegskola, Department and is installed on all kinds of of Shipping & Marine Technology. vessels. Combined with the high precision cargo tank level radar European Transport Workers’ Federation, Nautilus International. tanker operators. Stockholms Universitet, stress research institute. EcoMATE® – System for monitoring of Charles Taylor – The Standard P&I Club. fuel consumption and bunkering European Community Shipowners’ EcoMATE® is a reliable system for Association. monitoring of fuel consumption and bunkering operations. Together with the OPTIMASS European Harbour Masters’ Committee. accurate and maintenance free INTERTANKO. solutions for all fuel systems. UK Marine Accident Investigation Branch. UK Maritime and Coastguard Agency. www.krohne-skarpenord.comMarch 2012 TANKEROperator
    • INDUSTRY - US REPORT US tax- Arntzen spells it out On 21st February this year, Morten Arntzen president and CEO of the Overseas Shipholding Group (OSG) gave a testimony to the US House Ways and Means Committee Subcommittee on Oversight and the House Ways and Means Committee Subcommittee on Select Revenue Measures Hearing on Maritime Tax Issues. n a speech championing the ‘American capital, have greatly improved the flow of fleet of merchant vessels, registered in certainI Shipping Reinvestment Act of 2011’, he said that the US maritime industry was critical to the country’s economic well-being its homeland and national security. A recent PricewaterhouseCoopers (PwC) cargo, resulting in virtually seamless movement of goods from origin to destination anywhere in the world. The US-flag industry also continues to invest in the expansion and modernisation of foreign nations, that are available for requisition, use or charter by the US Government in the event of war or national emergency.study for the Transportation Institute about the the fleet. For example, during the past year US fleet depletionUS domestic maritime industry found that the OSG took delivery of the last of 12 Jones Act However, a 2002 study commissioned by theindustry overall contributed more than $100 ships constructed by Aker Philadelphia Department of Defense and performed bybill in economic output to the domestic Shipyard, a huge investment that created professors at the Massachusetts Institute ofeconomy and employed nearly 500,000 thousands of US shipbuilding jobs and will Technology found that the EUSC fleetworkers. create thousands more relating to the vessels’ dropped by 38% in terms of numbers of ships Today, there are more than 40,000 vessels operation, maintenance, and commercial use. and nearly 55% in terms of deadweight These newbuildings tonnage between 1986 and 2000. Today, represented the largest OSG’s ships constitute a critical component of commercial shipbuilding the EUSC fleet. order since World War II. Despite the successes of the US maritime OSG also has made industry and notwithstanding the critical role substantial investments in US shipping companies play in the US its US-flag international economy and national defence, they face fleet, which has been severe competition and challenging market described by the conditions. Moreover, as a highly capital- Department of Defense’s intensive industry, the companies have very US Transportation substantial funding needs. Command as “a vital “US shipping companies simply cannot element of our military’s thrive if we are burdened with tax code strategic sealift and global provisions, which do not apply to other US response capability.” corporations, or if access to capital, These investments help to particularly our own earnings, is impeded,” sustain a US shipbuilding he warned. industrial base, a pool of A recent Lexington Institute study on the American seafarers and a contributions of the domestic maritime fleet of US-flag vessels industry to US security found that ‘the for time of war, or greatest danger to the role and function of the national emergency. US as a seafaring nation is the decline of its OSG and the US maritime industry and merchant marine.’ maritime sector also play a key role in maintaining a Antiquated provisionOSG’s Morten Arntzen. vibrant US-owned He explained that his testimony focused HRin the domestic maritime fleet, comprised of international shipping fleet, which may be 1031, the ‘American Shipping Reinvestmentsome of the most technologically advanced called into service for our nation’s defence. Act of 2011’, which would correct anvessels and other assets in the world. American-owned companies’ international antiquated provision in current law that The technological advances, which have ships are part of what is thus the ‘Effective singles out US shipping companies for lessresulted from that massive commitment of US Controlled Fleet (EUSCF)’ that is, the favourable treatment than other US businesses10 TANKEROperator March 2012
    • INDUSTRY - US REPORTand impedes access to their own earnings. As (ASRA) would repeal Section 955 and allow shipbuilding, seagoing and related trades.a result, that flaw in the tax code has impeded US shipping companies to bring home pre- More generally, by freeing up needed capitalshipping companies like OSG from having 1987 earnings that are stranded overseas by for the maritime sector, the legislation willaccess to their own capital, funds that affording US shipping companies the same tax provide an immediate economic boost in theotherwise could be used in the US. treatment on those earnings as the 2004 Act short-term, while creating lasting benefits for By way of background, as a general rule, already extended to all other US corporations the economy in the long-term.US corporations are allowed to defer US with foreign subsidiaries. For all those reasons, ASRA has earnedtaxation on their foreign subsidiaries’ income. Enactment of ASRA will allow US shipping broad, bipartisan support in the House and theOver 30 years’ ago, in 1975, Section 955 was companies to be treated the same as all other Senate.added to the Internal Revenue Code. This companies were treated in the JOBS Act, It is also supported by US maritime labour,provided that US shipping companies could giving them the ability to redeploy funds US shipyards, state maritime academies anddefer immediate taxation on their foreign currently stranded abroad for use here at US shipping companies.subsidiaries’ earnings from shipping home. “We in the maritime sector look forward tooperations only if those earnings were ASRA will help US shipping companies working closely with the chairmen andreinvested abroad in qualified foreign shipping make investments in the US-flag fleet, as well members of the Oversight and Select Revenueassets. as vessels that support homeland security and Measures Subcommittees to ensure prompt The Tax Reform Act of 1986 made matters the military. ASRA also will help create and passage of this important legislation,” Arntzeneven worse by ending deferral altogether for sustain thousands of American jobs in the concluded. TOshipping income earned by foreignsubsidiaries of US shipping companies, evenif reinvested in foreign shipping assets. Thisloss devastated US shipping over the next twodecades. Over time, Congress recognised the extentof that damage. To help revive US shipping, for Chemical/Product Tankersthe American Jobs Creation Act of 2004(JOBS Act) restored deferral for shippingincome. This change strengthened OSG’s THE tank coating system for carryingbalance sheet and allowed the company toembark on the largest US shipbuilding effort CPPs, PFADs, Methanol, and Bio-Fuels.since World War II. That 2004 law also lowered the tax barriers Rely on MarineLine® 784that prevented US companies, which did tank coating to handle abusiness internationally from bringing foreignearnings earned prior to 2004 back for wide range of cargoes carriedinvestment in the US. However, because the by chemical and productJOBS Act failed to address the problems tankers. MarineLine® 784created by enactment of Section 955 30 years’earlier, shipping companies could not benefit offers enhanced corrosionfrom those lowered tax barriers. resistance compared to As a result, US shipping companies weredenied an opportunity that the JOBS Act phenolic epoxies or zincafforded all other US corporations and the silicates, at a similar cost. Itforeign earnings reinvested in foreign shippingassets before 1987 remained stranded abroad. is faster and easier to clean, Because Section 955 remains law, US with higher cargo purity.shipping companies still must maintaininvestments in foreign shipping assets made Advanced Polymer Coatingsdecades ago, pre-1987. Any net decrease in Avon, Ohio 44011 U.S.A.those investments results in an immediate tax. This vestigial quirk in the tax law hascaused capital of US shipping companies to beleft offshore, effectively preventing thosecompanies from investing their earnings backinto the US economy. Legislation is needed to fix this problem forUS shipping companies and allow thosecompanies to redeploy their pre-1987 earningsin the US. +01 440-937-6218 Phone +01 440-937-5046 Fax www.adv-polymer.com The American Shipping Reinvestment ActMarch 2012 TANKEROperator 11
    • INDUSTRY - US REPORT A long arm for shipping’s ‘invisible hand’ On 7th February, 2012, business journalist Joe Nocera published in the Op-Ed pages of The New York Times an opinion piece entitled ‘Poisoned Politics of KeystoneXL’*. his article argued that given the with international flag market interest, any assumptions for building economic modelsT Obama administration’s decision not to approve the Keystone XL pipeline (a politically andenvironmentally charged decision in anelection year), the Canadian government has prospects over this border trade were until now fully indifferent: oil from Alberta could be transported via continental pipeline, very economically once the pipeline was installed, to the Gulf of Mexico without ever touching a and market projects. Selling (and transporting) Canadian oil across the ocean to China instead of to the US, and having the US import oil from countries located further apart than next door Canada clearly is not the mostactively been seeking alternative buyers for tanker; it will never pop the cork off of a efficient trade. As it turns out, in the marketthe oil extracted from their tar sands; namely, champagne bottle! (for owners active in the place there might be considerations thatthey have been cultivating buyers in China Great Lakes shipping, of course, the supersede economic efficiencies; in thisthrough a recent trade mission headed by the commodity trade between Canada and the US instance, environmental and political concerns,Canadian Prime Minister. is still a viable market). whether for good or bad reasons, guide the The Keystone XL pipeline was supposed to If Chinese prove to be substantial buyers for market place toward a certain direction andpour oil from Alberta, Canada, to the US Gulf the oil from the Canadian tar sands, logically toward the benefit of shipping.refineries where it could be processed and tankers will be involved in transporting oil There is little doubt that shipping is anconsumed in the US. The pipeline project was from the west coast of the North American industry driven by a multitude of variables andrejected partially on concerns about its impact continent to China. Obviously, this is inputs, including financial, fiscal, monetary,per se on the environment and partially on an inspiring news for shipping, and the tanker geo-political, sovereign, social, environmental,orchestrated effort by environmental groups owners in particular. Almost like a deus ex regulatory and technological factors. In turn,that perceive oil production from tar sands to machina intervention, a new trading route each of these factors is the product of severalbe highly energy-demanding and effortlessly appears on the globe map and the additional sub-variables and minor nuisances;environmentally dirty as to deserve a boycott tonne/mile demand automatically perks up. and, some of these variables may be correlatedat any point of the chain from investment in It’s still premature to figure out what type of to some extent or possibly be fullytar sand projects to production, transportation tankers will benefit most from such trade, but independent. Any decent economic model ofand consumption. an educated guess may be that oil will be the industry about future projections has to Of course, the counter-argument will be transported from Middle East to west coast deal with most, if not all, of such inputs.about the overall carbon footprint if the US/Far East in VLCCs or Suezmaxes, which The $60,000 question becomes, however,Chinese end up buying Canadian oil and the then would proceed in ballast condition to how one treats the ‘long tail’ of all theseUS sources oil from countries more remote Canada to load tar sands oil for China variables? There is a small probability thatthan Canada (like Venezuela, West Africa, or discharge and then proceed in ballast to each of these variables can vary widely.Middle East). Middle East to load again. Whether some of the approximately 120 The economic benefit and the potential VLCCs still on order will be delivered laterenvironmental impact of the pipeline aside, a Triangulation than scheduled, or cancelled altogether may beshipping executive’s mind has to focus on the Clearly such triangulating schedule reduces a small aberration that an economic model caneconomic benefit from the disproving decision the ‘ballast leg’ of the overall trip, as tankers tolerate.of the pipeline on the maritime industry alone. crossing westbound the Pacific Ocean are in On the other hand, if Canada finds in ChinaCanada is an extremely stable country and a laden condition. It’s still very premature to buyers for all the oil supposed to bestaunch US ally, and traditionally, most of the determine that the above scenario will transported to the US by the Keystone XLCanadian oil and mineral commodities find a eventually play out as such, or if it will serve pipeline (830,000 barrels per day), thenbig market in the US. No doubt, it makes as a catalyst for a market recovery from the potentially a VLCC will be required to loadgreat economic sense: a bankable and current slump in the tanker freight rates. For almost every two days; the impact on theinsatiable consumer market located close to instance, the pipeline may still be approved market, the low likelihood of such scenariothe producer country along a peaceful border next year once presidential elections in the US notwithstanding, can be much moresharing same institutional principles (unlike are out of the picture after November 2012. meaningful, as 25 VLCCs (about 4% of the‘buying oil from people who hate us’). Economic efficiencies and rational decision entire world VLCC fleet) will be required toBut, from a shipping executive’s perspective, making in the market place are the major service such trade.12 TANKEROperator March 2012
    • INDUSTRY - US REPORT High probability events sustain thedirection of the market, but it’s usually lowprobability events that act as catalysts and‘game changers’. It’s the events that seem Transas supplies MMA withinitially infinitesimally improbable thatchange the markets and can be a blessing, or a a full mission simulatorboon to market participants. As the CEO of Massachusetts Maritime Modern navigation systems installed onGoldman Sachs mentioned once, ‘I spent 98% Academy (MMA) recently hosted the bridge, include an integrated navigationof my time worrying about 2% probabilities’. an opening ceremony for the system (INS), dynamic positioning systems Shipping, an industry well known for its American Bureau of Shipping (DP2), ARPA/Radar multifunction displays,volatility has, time and again, shown that low Information commons building. and ECDIS, all meeting the latestprobability factors outside the industry can The 42,000 sq ft building houses the international maritime regulations.very well create or destroy value in shipping. Academy’s new full mission ship simulator, The full mission simulator is in additionIt seems that the cancellation of the Keystone supplied by Transas USA. to the Transas Navi-Trainer ProfessionalXL pipeline may be poised to create such It combines maritime tradition with the 5000 simulator systems already installed atvalue for the shipping industry. TO latest technology in maritime training, MMA. It can operate either independently, including the campus library, museum, or in joint exercises across campus for archives, model ship collection, plus hi-tech multi-vessel scenarios, with the existing tug * This article was written by Basil M simulation facilities, multimedia ‘smart’ bridge and electronic navigation laboratory.Karatzas, chief executive of Karatzas classroom, and resource centres. As one of the US’ six state maritimeMarine Advisors & Co, a shipping The new simulator and its support areas academies, Cape Cod located MMA claimedfinance advisory, vessel appraisal and include a full mission, 360 deg bridge to balance a unique regimental lifestyle withvessel brokerage firm based in simulator, debriefing room, instructors a typical four-year college academic studyManhattan. Karatzas may be contacted control room and an ante room. course.at info@BMKaratzas.com, or at +1 713545 5990. WE UNDERSTAND Severn Trent De Nora has over 35 years of leadership and expertise in electrolytic BALLAST WATER TREATMENT disinfection treatment solutions. Setting new standards with the Type-Approved BALPURE® ballast water treatment system, we have created a simple, reliable and cost-effective solution for both new and existing vessels. - Easy to install - Easy to operate - Low capital cost - Low operating cost - Non-corrosive - Operator safe - Suitable for hazardous cargo area installations - Surpasses IMO D-2 standards by ten-fold Visit us at Asia Pacific Maritime, March 14 –16, Singapore and at Sea Japan, April 18 –20, Tokyo To learn why BALPURE is the right ballast water treatment solution for you, contact sales@severntrentdenora.com or visit www.balpure.comMarch 2012 TANKEROperator 13
    • INDUSTRY - SHIP MANAGEMENT Industry association goes from strength to strength InterManager, the international trade association for the shipmanagement industry, has started 2012 with a bang. n the first month of this year,I cargo, freight and logistics. Certificate of Fellowship at the annual general InterManager welcomed two full Each of the marine teams works closely meeting of the North West England & North members – shipmanagement companies with an international network of maritime Wales Branch of The Nautical Institute in Histria and Green Wave – and two lawyers, marine surveyors, investigators and Liverpool on 16th February.associate members – international law firm loss adjusters to provide the complete marine Rear Admiral JS Lang FNI, chairman of theHill Dickinson and crew communications legal service 24/7. council’s fellowship committee, said:provider SMART Link. Hill Dickinson’s enrolment enables “Fellowship of The Nautical Institute is Histria Shipmanagement manages a fleet InterManager to reacquaint itself with former only awarded to those who have made acomprising nine modern fuel efficient 41,000 member Ian Maclean who has now moved to significant contribution to nautical science,dwt oil/chemical tankers, including two Hill Dickinson having previously been with the nautical profession and/or the objectivesnewbuildings under construction at Constanta Ince & Co. of the Institute.”Shipyard. Future plans include the building of Philippines-based SMART Link providestwo 50,000 dwt shallow draft, high cubic, fuel satellite communication for the maritime KPI seminarsefficient eco-design oil/chemical tankers industry with an estimated 120,000 active A series of workshops is being held toscheduled for delivery in 2013. subscribers. Backed by telecommunication promote the InterManager-led KPI Formed in 1992, the shipmanagement company SMART Communications Inc, Association’s system of measurable standardsconcern is part of the Histria Group, which SMART Link serves seafarers in the for the shipping industry.encompasses a network of companies engaged Asia/Pacific region, Indian Ocean, Middle InterManager is using the workshops as ain shipmanagement, chartering, operation, East and parts of Europe and America and is means of communicating a bettercrewing, repairs and upgrading, technical installed on some 7,500 vessels. understanding of how the measurement systemmaintenance and safety at sea for a growing works, including explanations of thefleet of tankers, bulk carriers and general IMO representative performance indicators being used and thecargo vessels ranging from 3,000 dwt to Building on this momentum, InterManager has process of collecting data.164,000 dwt and totalling an aggregate of appointed Capt Paddy McKnight to the role of For example last month in Singapore,more than 650,000 dwt. its IMO permanent representative. InterManager secretary general Kuba The Romanian-based concern was among The organisation was previously represented Szymanski, together with vice presidentthe first European shipping companies at the IMO by Svein Sorlie of Wilh George Hoyt and Markus Schmitz, managingawarded the International Safety Management Wilhelmsen Holding, who has now retired director of SoftImpact, led the first full dayCertificate IMO A 741(18) by Germanischer from shipping. workshop which was held at the offices of VLloyd in October 1997. The company has On leaving the RN, he spent 15 years as the Ships - courtesy of V Ships Singaporerecently updated and restructured its integrated UK representative at The Japanese managing director, Capt Satnam Kumar.management system to give added value to its Shipowners’ Association (JSA), which entailed Szymanski said: “This is a good opportunitycapabilities to manage a modern fleet. interaction with all the leading shipping trade for us to talk to current and potential users of Green Wave Shipping is a Singapore- organizations, as well as the IMO. the KPI system and explain the benefits firstregistered company managing a small fleet of In particular, he was a member of the hand as well as addressing commonmodern stainless steel chemical tankers. The shipowners’ delegation throughout the genesis misconceptions. It is also good to hear actualcompany is a subsidiary of Koyo Kaiun Co. and development of the Maritime Labour users of the system explaining how they are Hill Dickinson’s international marine, trade Convention at the ILO in Geneva. benefiting from it and have them share theirand energy practice comprises more than 100 In another move this year, InterManager experiences with the wider industry.”dedicated marine legal experts based in president Alastair Evitt, has been made a In addition, InterManager has established anLondon, Piraeus, Singapore, Liverpool and Fellow of The Nautical Institute (FNI). Asia-based KPI support network to enableManchester. The practice comprises four Evitt, managing director of Meridian Marine users to share best practice and other TOteams – yacht, shipping, commodities and Management, was formally presented with his information.14 TANKEROperator March 2012
    • INDUSTRY – SHIPMANAGEMENT - COMMUNICATIONS Frontline opts for Inmarsat’s new service bundle A major tanker company has claimed to have overcome the increasing complexity and cost of communications by opting for a complete switching system. rontline, the world’s largest tanker XpressLink system. VSAT is used when inside “Most shipowners are not at the point whereF owner in terms of tonnage, is to enhance its ship/shore communications network byinstalling Inmarsat’s new offering XpressLinkon more than 100 vessels in its fleet, including the coverage, however, when outside the coverage area, or the VSAT signal is lost, communication is automatically switched to FleetBroadband and back again when the VSAT returns online. they are taking ‘all singing all dancing’ complete solutions. Like in all markets, there are the leading edge adopters, as well as the more standard shipowner who is content with the basic product,” Coles said.the newbuildings. Coles said that shipowners were Langva said that with fixed annual costs, he “We evaluated the providers and made a increasingly looking for redundancy and saw the possibility of savings with a largepurely commercial decision about XpressLink communications reliability. “In the past they fleet, especially with the increased need forfrom Inmarsat,” said Kjell Langva of Frontline have been happy with one service, but today communications. He explained that FrontlineManagement in Norway. “The choice was they can’t take the risk,” he said. “We Management also looks after vessels in themade after a year of positive experience with (Inmarsat) are in charge of the service Knightsbridge, Golden Ocean, Ship FinanceVSAT from Ship Equip”. reliability to deliver a cost-effective service.” and Sea Tankers’ fleets, among others. “The cost-benefit profile and the unmatched For a fixed low cost, XpressLink provides The installation of XpressLink onfailover capability, which offers unlimited vessels worldwide with access to both Ku- Frontline’s vessels will commenceusage on Inmarsat FleetBroadband, were key band VSAT and L-band FleetBroadband immediately and continue throughout 2012.to the decision. Also Inmarsat’s ability to services in a bundled package – with a Langva explained that most of thedeliver made up the additional element in guaranteed free upgrade to the 50 Mbps installations/upgrades will take place while themaking the choice,” he said. capability of Inmarsat’s Ka-band Global vessels were in port, such as Singapore, which “With XpressLink’s internet and voice Xpress when the service becomes operational is a favoured destination. “Satcoms installationservices, communications on board the vessel in 2013. is not a big job, as the crew can prepare thewill be greatly enhanced, supporting “Ka-band is a game changer from a speed vessel before an Inmarsat technician comes onoperations and improving overall efficiency. It perspective, introducing truly high speed board for a few hours,” he said.also allows the crew to stay in touch with broadband over satellite. It is a VSAT service In a recent presentation, Coles said that infamily and friends and handle their personal and will replace slower KU services currently the future, companies will be able to use theaffairs, at a very low cost, which has been an being offered,” Coles explained. communications available to transfer moreimportant issue for Frontline,” said Langva. data for much the same cost. Service choice For a tanker using anywhere between 10 GB Driving force Turning to FleetBroadband as a standalone and 40 GB per month, a bundled solution wasLangva explained to Tanker Operator that product, Coles said that Inmarsat continued to more cost effective that a ‘pay as you go’Frontline uses the ‘always on’ option as the see high take up of FleetBroadband from new solution, he said.crew’s recreation was the main driver of the customers, as well as those migrating from With the new Global Xpress ka-bandwhole project. “The crew is the most older generation technology and competitor service due to be launched in 2013, tieredimportant element of success when competing products that are not as reliable. pricing will be offered for the amount ofwith other shipowners,” he explained. He also explained that some of Inmarsat’s bandwidth used per month allowing operators Frank Coles, president, Inmarsat Maritime, customers go straight for an ‘always on’ a choice. Coles said; “It will depend on howsaid. “The contract with Frontline is a service, while others opt for a choice of much data needs to be transmitted and howlandmark agreement for XpressLink. This is a services. “The need for ‘always on’ is not much the vessel operator is willing to pay.significant endorsement by the world leader in always there from a (shipowner) business There will be a certainty of costs at eachcrude oil shipping. It confirms that we have a perspective,” he said. level.”highly-competitive product, offering excellent Coles said that there was some cost synergy The average plans will be between 10 MBvalue for money and with the right focus on for larger fleets, but it was also true to say up to 5 GB, but an operator can negotiatedelivering reliable high-speed broadband costs depend on the type of service required. more if he or she needs it, he explained.through a combination of L-band and VSAT “If a customer wants fast internet broadband Global Xpress will offer downlink speeds ofservices.” of course it will be more expensive than up to 50 Mbps, and up to 5 Mbps over the Switching is an integral part to the simple email. uplink, from compact user terminals. TOMarch 2012 TANKEROperator . 15
    • INDUSTRY – SHIPMANAGEMENT - MANAGEMENT SYSTEMS AWT upgrades fleet management system Standfirst—-Applied Weather Technology (AWT) has released GlobalView 2.0, a new version of the company’s fleet management system. his features port forecasts, tide days out. on a subscription basis. This is provided inT data, tools for easy customisation and direct access to bunker pricing. According to ErikHjortland, advisor, ship performance andbunker management, Odfjell Tankers, “With Tide data: High and low tide data for over 7,500 locations help plan arrivals or departures based on high tides. Global ice concentrations: Global ice concentration imagery is available to help partnership with LQM Petroleum Services. Easy customisation: GlobalView 2.0 allows fleet managers to send a message to multiple ships at once. Adding customised links to additional websites and datathe addition of port forecasts, spot forecasts ships make the safest voyage possible. ensures that essential information is easilyand bunker pricing, GlobalView is an even Colour-coded global ice concentration accessible, all in one place.more valuable fleet management platform. imagery, based on satellite data, shows Eco-Speed calculator: Using this tool, fleetUltimately, it helps us to be more efficient in dangerous ice concentrations. managers can calculate the estimated costmanaging our fleet.” Spot forecasts: GlobalView 2.0 provides of voyages at different speeds. Fleet The new features of GlobalView 2.0 include detailed weather data for specific ocean managers’ plug in parameters and the eco-the following: areas. Spot forecasts are available with speed calculator will show a comparison. Port forecasts: Fleet managers can plan and hourly updates three days out and three and Monitor vessels with BVS on board: Fleetschedule the best time for loading/unloading to six hourly updates five days out. managers can now see voyage tracks fromavoid periods of precipitation, or strong winds. Fuel pricing: Real-time bunker pricing is AWT’s BVS on board system to monitorPort forecasts are available for more than available for more than 70 locations their entire fleet. TO2,500 locations with hourly updates three days globally. Information is updated throughoutout and three and six hourly updates five the day and includes barging rates, offered Fleet Reports CDI Near Miss Reports SIRE Management Reports Port State Control Repetitive Questions Flag State Inspections Most frequent Deficiencies Class Inspections Marine Injury Report Ship Visit Reports Overdue Items Report Internal Audits Ship Reports Navi Audits Oil Major Reports Marine Injury Reports Vessel/Cargo damages Machinery damages Vetting Status Report Environmental incidents Internal vs. External Deficiencies Near Misses Key Performance Indicators Non Conformities info chemserve-marine.com www.chemserve-marine.com16 TANKEROperator March 2012
    • INDUSTRY – SHIPMANAGEMENT - DATA MANAGEMENTWallem opts for DNV Navigator Hong Kong-based Wallem Ship Management has ordered DNV Navigator for its managed fleet of more than 190 ships. he contract also includes the Work of information about most of the world’s ports taking this next strategic step.Tseafarers. and Rest Hours module allowing for compliance with international legislation on rest hours for This is the largest contract signed for DNV and terminals including publications and data from UKHO, IHS Fairplay and other sources. Arrival and departure procedures for all the major ports are available as well as a comprehensive nautical library providing up-to As part of the system’s implementation, Wallem will make use of the Work and Rest Hours module. This module demonstrates compliance with the Maritime Labour Convention 2006 (MLC) and the Standard ofNavigator thus far. Basically, it is a dedicated date maritime-specific information. Training, Certification and Watchkeeping fordecisions support tool for assisting the Master Seafarers (STCW).in handling the administrative and regulatory Master’s notes Any violation of regulations is clearlycomplexity of port operations, the class The system is arranged for easy creation of identified and the system allows user-definedsociety explained. Master’s Notes, which are used for sharing reports to be generated. Crew timesheets can DNV Navigator facilitates compliance with port specific knowledge within the fleet and be generated in MS Excel and the power ofrequirements from charterers and port information can be shared with other systems the system can be increased by addingauthorities and is often referred to as the such as gangway control systems and ECDIS. company-specific forms and by sharing data‘Captain’s best friend’. “Wallem is striving continuously to manage with other company-specific or third party More than 1,200 port clearance forms are their fleet in safer and more cost effective systems.automatically filled in with ship data so that ways”, said Captain Deepak Honawar, DNV Navigator was introduced in 2002 andthe required paper work can be prepared in a Wallem’s director of safety and quality. The is already in use on over 2,000 shipsfew minutes. The system includes a database company tested the system thoroughly before worldwide. TOMarch 2012 TANKEROperator . 17
    • INDUSTRY – CHEMICAL/PRODUCTS TANKERS Low contracting bodes well for the future Most operators have more faith in the chemical and products tanker markets’ future than any other at present. owever, not all is rosy In 2012, the expectations are for an even the Mediterranean region where the activityH underlined by a Gibson Research report issued in the middle of February, which said that theproduct tanker market in the East has beenseverely depressed over the past few months. smaller increase in fleet numbers, not least due to anticipated delays and cancellations, as well as strong interest in scrapping amid the current weak returns. The biggest gain is likely to be in the LR2 increased by 49% over the quarter followed by the Northwest Europe (26%) and Singapore (17%). TCEs for LR2s trading on the benchmark fleet, with net increase of 6% this year.route from the Middle East Gulf to Japan Importantly, LR1 supply is forecast to rise by(TC1) have averaged only $6,000 per day (on only 2% and MRs by just 1.5%. This will leada round voyage basis at design speed) since to an overall growth of only 2%. BeyondNovember. 2012, even slower expansion is projected in TCE returns dropped to even lower levels in the product tanker fleet.early February, to around $2,000-$3,000 per Thus, the current market is still feeling theday at design speed. The conditions for effects of rapid fleet expansion over the pastsmaller product carriers in the East were few years, but the more limited growth insimilar, with LR1 and MR TCE earnings also supply in the future will alleviate the Source - Drewry Maritime Research.sinking well below fixed operating costs in oversupply of product tankers.recent months. At the same time, on the demand side, the Of the product fleet, Drewry said that MRs This weakness in the region across all size prospects are for robust growth. More than 2.8 stand out as having the greatest earningsranges has been primarily due to an mill barrels per day of new refining capacity potential in the long term. The consultancyabundance of available spot tonnage, with in the Middle East and India is expected to said that it expected that the fleet growth isslow steaming becoming a common feature of come on stream by 2016. This will offer likely to be restricted on account of lowthis particular market sector. strong support both to long haul and short ordering in this sector. Since 2005, the product tanker fleet has haul products trade out of the region.increased by 1,005 vessels (+65%). This is Combined, these improvements in the Short termequivalent to close to an 8% per annum supply and demand conditions could provide a In the short term, a marginal improvement inincrease. However, the pace of growth has solid base for a substantial gain in product the Atlantic trade is anticipated, althoughslowed over the past 12 months and, as a tanker rates in the East in the medium term, downside risks include the closure of severalresult, the total gain in supply was only 3.5% but for now product tankers will have a few refineries in the US Gulf, due to a lack of cashlast year. more ‘rough waves’ ahead of them, Gibson flow and the Eurozone debt crisis. However, concluded. the demand for MRs is likely to grow steadily in Asia and Middle East regions with MRs positive upcoming refinery capacity additions. Drewry Maritime Research’s latest Tanker But the key for this potential rise in rates is Forecaster tends to agree, saying that while the demand/supply gap, which will work in crude oil tankers will continue to suffer, favour of owners to a considerable extent. The product tankers, especially MRs, are expected supply of MRs declined marginally by the end to perform better in the coming years. of 2011 to 23.5 mill dwt. Freight rates for MRs improved in the last Further, with the MR orderbook equating to quarter of 2011 owing to an increase in 8.5% of the fleet, Drewry forecasted a supply chartering activity across major trade routes in demand balance of 2.3 mill dwt (or 9.8% of this segment. Overall, reported spot chartering supply) for 2012. However, it is the reduction activity increased by 18% in 4Q11. of this balance to 0.5 mill dwt (or 2.1% of Source - Gibson Research. Considerable improvement was observed on supply) come 2016 that will push rates up. TOMarch 2012 TANKEROperator 19
    • INDUSTRY – CHEMICAL/PRODUCTS TANKERS What’s in your tank? Last January, the MARPOL 73/78 Annex II and MEPC 2/ Circ. 15 Annex 10 tank cleaning regulations that came into force in August 2010 came into full effect, leaving many ship operators facing a new challenge. t is now up to vessel owners and global network and service centres are factory just outside Tønsberg in Norway withIsea. operators to not only meet these regulations fully, but also to continue to improve shipmanagement efficiency,reduce operational costs and promote safety at confronted with a huge range of situations on a daily basis.” So how can marine chemical providers help owners and operators to meet regulatory demands while remaining efficient? Hunter manufacturing regulated by ISO 9001 and ISO 14001. Hunter explained that production and quality control is standardised for both product lines to ensure consistency and high quality Wilhelmsen Ships Service’s (WSS) director said that experience is key: “We have decades products: “Throughout the production processmarine chemicals, Graham Hunter, believed of experience and can provide a we are committed to reducing waste, transportthat although these new regulations could comprehensive range of products designed volumes, hazardous substances and recyclingcause headaches for some, they are entirely specifically to meet regulations through our materials. Our aim is to keep increasing thenecessary. eight global tank cleaning centres in Houston, effectiveness of our chemical portfolio while, Hunter said: “Tank cleaning is a vital factor Rotterdam, Singapore, Fujairah, Durban, at the same time, improving safety andin governing the success of ship operations Busan, Santos and Algeciras.” reducing environmental impact.”and the majority of shipowners and traders Hunter went on to explain that last year’srecognise the importance of efficient tank acquisition of Nalfleet has positioned WSS as New technologycleaning products and adequate procedures. a world-leader in the provision of As part of the acquisition agreement withWe know that the basis of successful tank environmentally-friendly marine chemicals. Nalfleet’s previous parent company Nalco,cleaning operations is a fundamental All chemicals are now being produced at the WSS has access to suitable technologyknowledge of all aspects and at WSS our same location, the Wilhelmsen Chemicals developed by the Nalco R&D team, in20 TANKEROperator March 2012
    • Your Preferred Ship Repair Yard in the Arabian Gulf th Celebrating our 35 Year of Operations. ISO 18001 ISO 28000 & 20858 ISO 9001 & 14001 ISO 27001 & ISPS CodeP.O. Box 50110, Hidd, Kingdom of Bahrain,Tel: +973 17 67 1111, Fax: +973 17 67 0236,E: info@asry.net, www.asry.net
    • INDUSTRY – CHEMICAL/PRODUCTS TANKERSaddition to a skilled team of Wilhelmsen any perfume or colouring agents.Chemicals scientists based at the R&D Components (chemicals) withlaboratory outside Tønsberg. Both teams meet Pollution Category X shall noton a regular basis to review the latest exceed 10% of the total weight oftechnologies. the cleaning additive. And although WSS is the largest producer If a component (chemical) fallsof marine chemicals in the world, innovation within Pollution Category X, it shallis still the prime goal. “It’s not only about be readily biodegradable.size,” says Hunter. “We realise that customers All chemical tank cleaning suppliershave a choice. We need to keep innovating to need to adopt their existing productlead the market.” range to these changes to comply with the new circular. WSS guidelines on tank cleaning Products approved and evaluated through chemicals: MEPC/Circ.363 ceased to be valid on 1st MARPOL Annex II regulations for the August, 2010. To maintain a listing beyond discharge of noxious liquid substances this date, a re-evaluation of the cleaning include restrictions on the types of cleaning additives concerned, in accordance with the WSS marine chemicals director Graham additives allowed to be used in tank revised guidelines given in MEPC.1/Circ.590, Hunter. washing operations. and regulation 13.5.2.of Annex10 of WSS offered to market 20 separate IMO- MARPOL 73/78 is required. WSS chemicals solution: approved tank cleaning products under the The new circular of Annex10 of MARPOL All WSS tank cleaning chemicals are; old MEPC/Circ.363. 73/78, (MEPC.2 / Circ.15, Annex 10) came Free from nonyl phenol ethoxylates or Of these 20 approved chemicals, five were into force on 1st August 2010. other estrogenic compounds. pure tank cleaning products. The remainder WSS has 10 products approved according Non-flammables. general and multipurpose cleaners. to this circular. High concentrates. Changes in IMO legislation MEPC/Circ All products previously holding an IMO Economical in use. 380: approval can still be used for general cleaning Tested and passed paragraph 13.5.2 of New rules superseded MEPC/Circ purposes around the vessels. Annex II of MARPOL 73/78. 380 from 1st August, 2010. Products used for spot cleaning in tanks IMO approved to MEPC 2/Circ. 15 annex Future products must not contain can be used as previously. 10. TO A TANKEROperator conference Produced in association with Making money in a tough tanker market: how to cut costs and increase operating standards Supported by Sponsors include Martin Shaw Dimitris Lyras Emmanuel Vordonis Speakers: Martin Shaw, managing director, Marine Operations and Assurance Management Solutions Ltd, ex-VP technical, fleet manager and vetting service manager, BP Shipping Dimitris Lyras, director, Lyras Shipping and founder, Ulysses Systems (chair) Emmanuel Vordonis, ex executive director, Thenamaris Ships Management Contact Mads Friis Sørensen, branch manager, FURUNO European Branch Office Mary-Ellen Kontogeorgou Takis Koutris, managing director, Roxana Shipping and chairman, Marine Technical Managers Delegates Manager Association (MARTECMA) events@tankeroperator.com Captain Andreas Xapolytos, CEO, Tsakos Columbia Shipmanagement George Vassiliades, commercial manager, Tsakos Columbia Shipmanagement Mel Skinner Sponsorship Manager mskinner@tankeroperator.com Metropolitan Hotel, Athens, April 3 2012 Tel +44 777 25227222 TANKEROperator March 2012
    • INDUSTRY - PIRACY ISS launches anti- piracy solution Cost effective armour protection will provide countermeasures to safeguard vessels and crew welfare nchcape Shipping Services (ISS) and to the Master. The system can then be easily provide significant increased survivability ifI Vessel Protection Solutions (VPS) have launched an anti-piracy partnership. The solutions will provide customers withhighly effective fully certified systems that aredesigned to combat RPGs and small arms fire, stowed when the vessel is not transiting high risk areas. It comprises - Ramor 500 Specially designed light-weight, armoured the crew comes under small arms fire. These lightweight vests and helmets will also offer additional protection against fragmentation and blunt trauma. Graham Fee, project manager, VPS hub,ISS said. steel that offers comprehensive protection to ISS commented: “While Best Management “Time and again we see bullet proof vests the bridge and vessel’s access points. The Practices provides useful guidelines andissued to crews without hard armour plates, armour is able to withstand multiple hits from recommendations to combat pirate attacks,and vessels using 8 mm mild steel to protect high velocity rifle rounds including AK47 when it comes to ballistic protection,the bridge, internal doors and citadels, which making it ideal for Citadel construction. The shipowners need real counsel on the kind ofwill do nothing against a round from an system does not require class recertification as solutions to adopt. Budgets are tight given theAK47,” said Edward Unwin, VPS’ sales it is lightweight and easily removable. current economic climate, however there’s nodirector. point in just going for the cheapest material “Similarly, using double layers of standard Composite armour that may tick a compliance box but doesn’tmesh fencing to counter the threat of an RPG A range of ultimate lightweight armour work during an attack and invalidatesattack will actually increase the chance of a protection that has been designed specifically insurance; ultimately costing more in the long-lethal detonation,” he continued. for the maritime industry. Products include term. Following extensive research and live fire fully certified Lloyd’s Register approved Claus Hyldager, ISS group CEO, said:testing, as well as years of consultation with ballistic doors, weapon cabinets and “Piracy is one of the greatest challenges thethe defence industry and associated partners removable ballistic panels. These STANAG industry faces.”and suppliers, ISS and VPS will provide certified products are ideal for offering “While the legislative debate continues oncustomers with a comprehensive range of enhanced protection to the bridge and internal how to best tackle the issue in relation toadvanced, high-tech protective access areas. armed guards, is it vital that shipowners havecountermeasures, ISS said. access to the best equipment and on board Light armour system against shaped Anti-ballistic personal protective vessel and crew armour that providesordnance (LASSO). A high tensile steel mesh equipment (PPE). appropriate protection, right now.”that short circuits an RPG projectile rendering Certified body armour, helmets, hard armour “Our focus is to provide solutions that saveits explosive shape charge inert. LASSO is plates and soft armour panels, which have lives, are cost efficient and are proven by bothdeployed around the bridge offering protection been specifically designed for maritime military and civil agencies.” TOto the crew while still allowing full visibility applications. These protective systems will“ “Our VPS operation and our expertise in this area is testament to our commitment to helping our customers meet these challenges that serve to impact the efficiency of their operations and the wellbeing of their crews,” - Claus Hyldager, ISS group CEO ”24 TANKEROperator March 2012
    • INDUSTRY - PIRACYProtecting your vessel by CCTV In the latest BMP4 - Best Practise for Protection against Somali Pirates, the installation of CCTV cameras was recommended. n Page 36 item 8.9 Closed section 8.13). mounted CCTV cameras, providing live realO Circuit Television (CCTV) states - Once an attack is underway and pirates are firing weaponry at thevessel, it is difficult and dangerous to observewhether the pirates have managed to gain Recorded CCTV footage may provide useful evidence after an attack. Singapore-based Gentay has installed the above described CCTV installation integrated with the low cost iPoP-network solutions for time images to a computer monitoring station in the Citadel (ECR). It also included the monitoring equipment, recording devices for up to 14 days recordings, as well as all required networking utilising the integratedaccess. vessels to facilitate a rapid low cost iPoP-network solution for vessels. The use of CCTV coverage allows a degree installation of a comprehensive system. The cost for this integrated solution,of monitoring of the progress of the attack A unnamed but claimed to be a well known including installation, commissioning andfrom a less exposed position: oil major has completed initial trials of this training is about $23,000 per vessel, Gentay Consider the use of CCTV cameras to system, which will now be deployed on their said. ensure coverage of vulnerable areas, vessels to deliver real time CCTV images This solution does not rely on WiFi particularly the poop deck. from strategic positions situated on board, technology, which has proven to be sporadic Consider positioning CCTV monitors at the directly to the monitoring and recording on board vessels and does not require rear of the bridge in a protected position. computer in the Citadel. installation of cabling, instead it utilises the Further CCTV monitors could be located at The installation includes six CCTV existing vessel power network to transmit the the Safe Muster Point/Citadel (see BMP4, cameras, four internal and 2 IP67 externally CCTV signal. TOMarch 2012 TANKEROperator 25
    • TECHNOLOGY - SHIP DESCRIPTION - GAS HUSKY Stealthgas completes small gas carrier newbuilding plan On the 12th January 2012 the Vafias Group named two more gas carriers in Japan, the last in a series of a long series of newbuildings for the Vafias Group. he two purpose built high more than 26 newbuildings at a cost of more winches have been fitted with two drums eachT specification, fuel efficient LPG/VCM carriers are of 7,500 cu m capacity each. They fly theLiberian flag and are classed by BureauVeritas. than $1.5 bill, the total debt of the group is claimed to be below the $1 bill mark! Stealthgas president and CEO Harry Vafias said; “We are waiting the last gas ship to be delivered in May and we are finished after a for extra safety, level alarms have been fitted in the bunker tanks; cylinder oil tanks have been added for low sulphur fuel operation, which have a capacity of about 15 days; two bilge alarm sensors have been fitted in the The first vessel- Gas Husky - was delivered frenetic pace of taking delivery of 10 lpg engine rooms; Hamworthy Svanehoj anti-on the 18th January, while the second vessel, carriers, nine MRs, five Aframaxes and two rotating cargo pumps were chosen, as well asdue to be delivered in May 2012, was named Capesize bulkers in the last 3.5 years. Anderson Greenwood cargo tank safetyGas Esco. “We want to buy a few more gas ships. as valves. Each vessel’s hull has also been coated Gas Husky is on long term charter to a the market is quite firm and in addition, during with five years’ antifouling protection.Middle East state-owned company while at the the past three years, we sold eight older units They have been built to US Coast Guardtime of writing, the Gas Esco is still unfixed. and we need more younger vessels to keep our approval for operating in US waters and also Following these deliveries Vafias concern lead in this segment,” he explained. to Japanese trading regulations.Stealthgas will maintain its position as the All the Aframaxes and MRs are on long They are fitted with two IGC Type Clargest manager by number of owned ships in term bareboat charters, Vafias told Tanker independent cargo tanks with a capacity ofthe 3,000-8,000 cu m gas segment. Operator. 3,750 cu m at 100% load, or 3,675 cu m at These two ships represent the final pair in a The gas fleet is 50% managed by Stealthgas 98% load factor in each tank. They have aseries of 10 gas carriers that the Vafias group in Kifisia, Athens and the rest is split between design pressure of 17.65 bar g (18 kg/cm2)ordered for a total cost of around $250 mill at Mumbai-headquartered Selandia Ship and the valve settings have been setthe Japanese shipyard of Kanrei Shipbuilding. Management and Manila-based Swan accordingly. The maximum vacuum obtainable Once the final vessel is delivered, the Vafias Shipping Corp. per tank is atmospheric.Group fleet will grow to 62 ships, comprising The maximum and minimum temperatures38 gas carriers, 22 product and crude tankers Enhancements acceptable in the tanks are 45 deg C and 0 degand two Capesize bulk carriers, making it the The Gas Husky and Gas Esco have beenthird largest group in terms of the number of upgraded compared with their near sisters. For LPG VCM One tank 410 250vessels in Greece. example, they comply with Exxon/Mobil’s Both tanks 730 450 Moreover, despite the huge growth seen 2006 criteria.between 2008 and 2012 with the deliveries of In addition, the fore and aft mooring Loading rates (cu m/hour)26 TANKEROperator March 2012
    • TECHNOLOGY - SHIP DESCRIPTION - GAS HUSKYC respectively. It should be noted that these figures are based on amaximum velocity of 6.5 m per sec for LPG and 4 m per sec Principal particulars – Gas Husky, Gas Escofor VCM in the liquid piping. If the cargo temperature is lessthan 0 deg C, a shore heater is to be used. If the vessel’s heateris used then the maximum rate of loading is limited to 250 cu Length, overall 119.5 mm per hour. Length, bp 112 m The loading is accomplished only by the terminal pumping Breadth 19 msystem and a proper size gas return line is to be connected. Depth 9mThese figures are also subject to the operation being Summer draft 6.8 mundertaken in favourable conditions both on board and ashore. Summer deadweight 6,900 t Each tank is fitted with a Hamworthy Svanehoj removable GRT 5,860 tdeepwell vertical centrifugal multi-stage cargo pumping system Capacity 7,500 m3capable of 400 cu m per 120 m at SG 0.601, or 220 cu m per Main engine 3,510 kW @ 203 rev/minhour at 160 m at SG 0.948. A full liquid cargo can be Auxiliaries 2 x 485 kW @ 1,200 rev/mindischarged in about 19 hours at 1 bar pressure, or around 53hours at 5 bar pressure. Speed 13.5 knots (CSR) Following discharge and before stripping, about 1.5 cu m of Fuel consumptionliquid will be left in each tank and about 40 tonnes of vapour (HFO) 14.9 t/dwhen discharging LPG. This takes around two hours to (MDO) 2.36 t/dremove. Tank CapacitiesEach tank is also fitted with a Tanabe Pneumatic Machinery (HFO) 610 m3cargo compressor and an inert gas system. The vessels can (MDO) 100 m3produce their own inert gas and use nitrogen plants and fans Fresh water 140 m3for tank inerting. Cargo heaters have been fitted of the shell Cargo tanks (max) 2 x 3,750 m3and tube type. In case vapour gas is needed to feed the OUT NOW! NOW! Ask your local chart agent or see www.seamanshiplibrary.com Witherby Seamanship International 4 Dunlop Square, Livingston, Edinburgh, EH54 8SB, Scotland, UK. Witherby Seamanship International 4 Dunlop Square, Livingston, Tel No: +44(0)1506 463 227 Fax No: +44(0)1506 468 999 Edinburgh, EH54 8SB, Scotland, UK. info@emailws.com Web: www.seamanshiplibrary.com Email: Tel No: +44(0)1506 463 227 Fax No: +44(0)1506 468 999 Email: info@emailws.com Web: www.seamanshiplibrary.com @ p yMarch 2012 TANKEROperator 27
    • TECHNOLOGY - SHIP DESCRIPTION - GAS HUSKY General arrangement drawings.28 TANKEROperator March 2012
    • TECHNOLOGY - SHIP DESCRIPTION - GAS HUSKYGas Husky is chartered to a Middle East state-owned concern.compressors, each vessel can supply the gas. tank dome and the vessels are both fitted with 1,200 rev/min. A float level type gauge is fitted at each a starboard and port manifold for cargo The main propulsion unit gives the vessel a operations and a 4 tonne speed of around 13.5 knots (at CSR) with a lifting capacity hose 15% sea margin. The fuel consumption figures handling crane located work out at around 14.9 tonnes per day of amidships. HFO and 2.36 tonnes per day of MDO. A Deutz emergency generator has also been Main machinery fitted as has a Miura boiler and gas The Gas Husky and Gas economiser, plus two Matsubara air Esco are powered by a compressors and a Sanwa emergency air Makita B&W type 6L35MC compressor. Mark 6 diesel engine, The two fuel and one luboil purifiers were developing 3,510 kW at 203 supplied by Mitsubishi. A Miura Protec rev/min (90% MCR) evaporator for waste heat recovery with a burning heavy fuel oil. Two capacity of 10 tonnes per day was also auxiliaries have been fitted installed. The same manufacturer supplied the per vessel of Yanmar waste oil incinerator. manufacture type 6N165L- The oily water separator was of Taiko KikaiCEO Harry Vafias pictured at the shipyardduring the naming ceremony. SN burning marine diesel oil. These are Industries make, as was the sewage treatment 4-stroke engines developing 485 kW at plant. TO Custom built and series product Technically reliable Well proven designs Continuous technical development Dependable partner Customer oriented approach DAMEN DOUBLE HULL OIL TANKER MTS ‘SHANNON FISHER’ STANDARD OF EXCELLENCE DAMEN SHIPYARDS BERGUM Member of the DAMEN SHIPYARDS GROUP P.O. Box 7 phone +31 (0)511 46 72 22 info@damen-bergum.nl CUSTOM BUILT IN SERIES PRODUCTION 9250 AA Bergum fax +31 (0)511 46 42 59 www.damen-bergum.nl The NetherlandsMarch 2012 TANKEROperator 29
    • TECHNOLOGY – SHIP - TO - SHIP TRANSFERSGAC opens up off Sri LankaGAC’s in-house ship-to-ship (STS) logistical issues due to bureaucracy and high the company claimed.transfer concern GAC Transfer costs of locating there. In 2009, three decades of civil war officiallyServices (GTS) has opened a new “Thanks to its proximity to that market and came to an end and in 2010 the London-basedfully-equipped base in Sri Lanka. its key geographical position close to major joint cargo committee of the Lloyd’s insuranceThe company said that this move was in east-west shipping lanes, Sri Lanka was a market removed Sri Lanka from the War Riskresponse to the growing demand for LPG natural choice for the expansion of STS Rating.imports and exports of clean products in the services to the region,” he explained. That opened the way for the expansion ofIndian Subcontinent. GAC’s STS operations to complement existing STS equipment, such as fenders and hoses, Safety compliance services such as ship agency, bunker suppliesin accordance with industry standards, is The main commodities handled include LPG and the ship supply service (SSS), which usesstored at GAC’s base in Galle, which is (-50 deg C), crude oil, fuel oil and gas oils, all a fleet of 10 modern high speed service craftstrategically located at the southern tip of the in line with OCIMF and International to deliver supplies and personnel to vessels inisland and is ready to be transported by tug to Chamber of Shipping (ICS) guidelines and in international shipping lanes without themdifferent locations, according to demand and strict compliance with the GAC group’s HSSE having to deviate from their course.conditions. policy, quality management system and all Agency, STS, SSS, bunker supplies and Experienced GTS operators work in local and international safety, security and other services can be provided as part of anconjunction with their GAC Sri Lanka environmental regulations. integrated package of shipping, logistics andcounterparts to take care of all local Most operations will be carried out off port marine solutions that GAC provides from thearrangements, such as government permits, limits (OPL) without any port authority ports of Colombo, Galle, Trincomalee and,clearances, storage and transportation. intervention. During the southwest monsoon most recently added - Hambantota. Lars Bergstrom, GAC Group vice president season between June and October, STS GAC currently offers STS transfer– Indian Subcontinent, said the choice of Sri operations will be concentrated in the more operations from over 10 bases, includingLanka as the regional base for STS operations sheltered areas OPL Trincomalee and at OPL Rotterdam, Amsterdam and Flushing in theoffered a logical solution for principals Galle and Colombo during the December to Netherlands, Gibraltar in Spain, Frederikshavnwithout incurring high costs, or getting caught April northeast monsoon season. and Kalundborg in Denmark, Gothenburg inup in red tape. All operations are supported by boats Sweden, Malta, Cyprus, Malaysia, Vietnam, “India is a very important market with owned and operated by GAC Sri Lanka the Arabian Gulf and Indian Ocean.growing demand for STS, but there are according to the highest safety standards, TOBeware of LOIsThe OnlineSTS team has issued Following several contacts, as well as STS service providers, supporting theirthe following warning about the discussions with P&I clubs, the following rejection of signing the LOI’s, according toissuing of LOIs. procedure is recommended to be adopted by Step 1 above, as this evidence is highlyBefore conducting an STS operation, some the shipowners as a standard policy. essential for the P&I clubs.service providers issue letters of indemnities1) Masters/managers should avoid signing Indeed, the signing of LOIs without prior(LOIs) to the Masters of the vessels and LOI’s given by STS service providers. consultation with their P&I club might result 2) If the STS service provider insists, then therequest that they should be signed on behalf of in conflict with managers’ coverage.the owner and prior to the commencement of P&I club should be immediately informed Furthermore, in some LOIs, contractualan STS operation. and consulted. It is of utmost importance duties with reference to the third party that the P&I club indemnity are included, which appear to be should be made aware out of the scope of the P&I coverage, as of the LOI, agreed with the shipowner. otherwise, the owner STS service providers may accept partial may not be liability on condition that the shipowner covered in case of an provides evidence that the incident occurred incident. due to gross negligence by the provider/ 3)Masters/ managers POAC (person in overall advisory control) etc. should only sign the In this case the owner bears the burden of LOI, incorporating any proof. suggestions from their It should be noted that P&I clubs understand P&I club. the commercial implications and time Managers should be constraints in STS operations and endeavour able to provide to support their clients provided that they have evidence, such as email been fully informed in advance, OnlineSTSThe Port of Rotterdam has set up dedicated ship-to-ship transferareas within the Europoort complex. communication, with concluded. TO30 TANKEROperator March 2012
    • Our ability to provide localknowledge and responseis unmatched. In 350 portsaround the world on-the-spothelp and local expertise isalways available to members.
    • TECHNOLOGY - TANK SERVICING Gearing up for IMO PSPC COT Approved at MSC 87 in May 2010, the IMO’s Performance Standard for Protective Coatings of Cargo Oil Tanks (IMO PSPC COT) becomes effective on 1st January 2013 for new tankers. he main paint manufacturers have connecting to longitudinal and transverse material is assured and the product supplyT been undergoing laboratory tests in order to gain certification for their products under the watchful eyesof the class societies to ensure that they aresuitable for application in cargo tanks. bulkheads. Longitudinal and transverse bulkheads to the uppermost means of access level. For cargo tank bulkheads without an uppermost means of access, the coating location has met regulatory requirements. The successful IP products passing laboratory tests included key products from the Interbond, Intergard, Interplate and Intershield product ranges. The background to the new performance must extend to 10% of the tanks height at Approved laboratories carrying out thestandards, according to International Paint the centreline, but need not extend more testing include COT bv based in the(IP), was that the move from single hull to than 3 m down from the deckhead. Netherlands. COT was the first laboratory indouble hull crude oil tankers resulted in a Flat inner bottom and structure to height of the world with specific Lloyd’s Registernumber of vessels experiencing accelerated 0.3 m above inner bottom. approval to carry out testing in accordancecorrosion in cargo oil tanks, principally due to IP has announced that its principal anti- with the IMO MSC.288 (87) regulations forthe double hull promoting a more aggressive corrosive primers and shop primers have cargo oil tankers.corrosive environment. successfully passed what the company calls TACs for the successful IP products will be While it had become common practice to “….these very demanding IMO PSPC COT formally issued in due course, the companyapply protective coatings in the upper and laboratory tests in accordance with the IMO said.lower areas of cargo oil tanks, the IMO PSPC MSC.288 (87) SOLAS regulations for cargo Another coatings manufacturer toCOT regulations mean that certain areas of the oil tankers.” successfully complete the tests was Jotun.tanks must be coated on crude oil tankers Similar to the requirements of the IMO These tests were also carried out by COT bvgreater than 5,000 dwt at newbuilding, where: PSPC for sea water ballast tanks, these in the Netherlands on several of the The building contract is placed on or after regulations are designed to ensure the Norwegian company’s tank coatings systems. 1st January 2013 or, in the absence of a longevity of cargo oil tanks and stipulate that Two test methods were utilised. The first building contract, applied coatings must remain in ‘good’ test simulated the composition of the vapour The keels of which are laid, or which are at condition for a minimum of 15 years, as phase in crude oil tanks, both in ballast and in a similar stage of construction on or after defined by IACS. fully loaded condition. The second test 1st July 2013, For a cargo oil tank coating to comply, all simulated immersion in a crude oil tank with a Or the delivery of which is on or after 1st coatings must be tested by class society model liquid developed to replicate some of January 2016. approved testing facilities and have a class the most corrosive crude oils. The minimum areas of the cargo oil tanks society Type Approval Certificate (TAC). The According to Jorunn Holdhus Skovly, that must be protected in accordance award of a TAC means the product has Jotun’s product manager for tank coatings, the with the regulations are: demonstrated the expected in service coating systems performed well in these Deckhead and structure, including brackets performance, the quality of the supplied rigorous tests. TO Unloaded - Loaded - Corrosion potential from Corrosion potential 60ºC ‘pitting’ in tank bottom from ‘thermal cycling’ THERMAL CYCLING 25ºC Pitting and rust staining of the tank top NO SMOKING NO SMOKING INERT H²S GAS Sludge (Cathode) DRAIN WATER CO² H²O SOX OIL COAT Inert Inert Inert Gas Gas Gas STEEL PLATE H²S Condensation Pitting (Anode) Corrosion Aggressive of deck components head plating in crude oil (sludge) Source - International Paint32 TANKEROperator March 2012
    • TECHNOLOGY – TANK SERVICING Ariston merges with Scanjet to offer turnkey solutions Swedish tank cleaning equipment supplier has acquired Ariston, manufacturer of cargo and ballast control systems. he merged company has been complete the Scanjet ability to offer customers Cargo tank level monitoring (radar orT renamed Scanjet Ariston.“Joining the group means the Scanjet Ariston multipurpose monitoring& control system, already installed on over550 projects worldwide, is now available to turnkey solutions from our global network of offices and service partners. When combined with our Scanjet Macron products already used on over 400 installations, the Scanjet range gives our group the class leading global electric pressure sensors) with VRC & pump control. Ballast tank monitoring (air purge type or electric pressure sensors). Overfill alarms (floats or acoustic).Scanjet’s customer base of 3,500 capability for cargo and ballast monitoring Water ingress monitoring systems.installations,” said Stavrin Bosnov, Scanjet combined with integrated tank cleaning.” Automatic oil-water interface detectionAriston sales director. The Scanjet Group product portfolio to the system for oil/product tanks. Magnus Wallin, group CEO and architect of marine and industrial market now comprises: Vapour emission control systems.Scanjet’s rapid growth in recent years, said: Fixed and portable tank cleaning machines MPS anti-piracy systems (passive“The Ariston team, products and expertise (turbine, air or hydraulic-driven). non-lethal). TO TANKEROperator The Latest News is now available on TANKEROperator’s website at www.tankeroperator.com and is updated weekly. For access to the News just register by entering your e-mail address in the box provided. You can also request to receive free e-mail copies of TANKEROperator 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.March 2012 TANKEROperator 33
    • TECHNOLOGY - TANK SERVICINGPortable liquid-level gauge for fuel tanksMitsui OSK Lines (MOL) and misleading readouts with conventionalMusashino have jointly developed equipment. The new liquid-level gaugewhat is claimed to does not register misleading readouts.be the world’s first portable Sounding tape and gauge can be usedliquid-level gauge for vessel fuel simultaneously. Portable liquid-tanks. MOL said that even on vessels equipped with level gauge with wirelessThis reduces the workload needed to measure fixed liquid-level gauges, crews measure the function.a ship’s fuel level during bunkering and liquid level manually by hanging soundingenables more accurate measurement. This will tapes into sounding pipes located on the deck,reduce the crew’s workload, and help prevent to help prevent overflow and to checkincidents such as fuel spills from overfilling. bunkering volume during refueling. Its features include - This operation must be done by a skilled time. This improves the efficiency of fuel level Compact main unit (24 cm wide x 37 cm crew member, which creates additional burden measuring operations, reduces workload, and high x 31 cm deep), lightweight (about 4.5 on the crew as he, or she must measure several helps prevent overflows, thus reducing the risk kg). tanks simultaneously. of fuel spills and environmental damage from Power source of the main unit is 9V dry With the new liquid-level gauge, the fuel tank overfill. cells. pressure sensor, which is suspended into the In December 2011, MOL invited several Digital readouts and superior operability. fuel tank, senses changes in liquid-level shipowners and shipmanagement companies to Wireless function enables simultaneous pressure and detects the fuel level in the tank a demonstration of the system on a vessel monitoring of liquid levels in several tanks. quickly and accurately. under construction. Overflow problems during Bubbles sometimes occur on surface of fuel In addition, because of the function of bunkering and the ‘cappuccino phenomena’ oil during bunkering. This is called the wireless transmission, several tanks can be are common issues in the deepsea shipping ‘cappuccino phenomena’ and may cause monitored on the ship’s computer at the same industry. TOUltra high solids epoxy for on boardmaintenance and corrosion controlFixing minor corrosion spots Another plus is the short drying time that drydocking.before they lead to major drydock leaves the painted areas immersion-ready in Short drying/curing time (immersion-readyrepair work and at same time eight hours, at 20 deg C, thus ensuring a quick in eight hours, at 20 deg C).meeting IMO’s ‘GOOD’ ballast tank return to service. Easy handling and less waste, thanks tocoating condition are big With its very low VOCs and ease of use, the handy 2.5 litre cans.advantages for shipowners. coating is ideal for on board maintenance Easy application reaching sufficient filmHempel’s new moisture tolerant and fast- work to keep the ballast tank coating in thickness by brush.curing Hempadur EM 35740 is the ideal ‘GOOD’ condition (according to new IMO Surface-tolerant for reduced preparationsolution for this task, the Danish coatings guidelines for maintenance and repair of time.manufacturer claimed. ballast tank coatings, MSC.1/Circ. 1330). Moisture-tolerant for application on damp Ballast tank corrosion is a major worry for Ultimately, the product can help shipowners surfaces.shipowners, as it can lead to structural failure. to avoid costly annual inspections schemes Extremely low VOC for maximumBut corrosion repair usually means taking a and reduces the need for repair work at the convenience and care for crew andship out of service for drydocking. With next drydocking - all without disturbing vessel environment.Hempadur EM (Easy Maintenance) 35740 operation, Hempel said. Minimal PPE (personal protectioncorrosion spots can easily be fixed - even at While Hempadur EM 35740 has been equipment) required.sea, the company said. specifically developed for on board ballast Hempel also supplies ballast tank coatings that Hempadur EM 35740 is a new ultra high tank maintenance, it is also suitable as a comply with IMO-PSPC type approvedsolids (96% VS) and damp surface tolerant general on board maintenance primer for most products, to ensure optimum ballast tankepoxy coating primarily for on board other areas of the vessel. performance and optimised efficiency duringmaintenance and repair of ballast tanks. The Major advantages - application in the shipyard.product, available in 2.5 litre cans, is intended The easiest way to keep corrosion down For optimal performance and service life,for brush application and it is particularly while at sea. the coating should be reviewed duringwell-suited for spot or smaller area Helps keep your ballast tank coating maintenance checks in drydock, as well asmaintenance, or repair in hard-to-reach areas in ‘GOOD’ condition (according to during on board maintenance carried out bywhere climate control and surface preparation IMO guidelines). the crew. TOare difficult. Reduced need for repair work at next34 TANKEROperator March 2012
    • A TANKEROperator supplementTanker shipping reviewMarch 2012 Contents A touch of déjà vu? I Markets - where it all went wrong III Top 30 listing X Profile - ClassNK’s Noboru Ueda XVIII Witherby adopts self-selection XX One of Teekay’s North Sea Shuttle tankers Photo credit - Seagull.
    • ANNUAL REVIEW - COMMENT Déjà vu - are we re-living the 80’s?A leading industry commentator recently said that this decade would be a ‘decade of costmanagement’. The question is, if this is the case then what will the industry look like at the end of it?* hose of us who have some grey is a concern that is shared by owners, at the same time as the visibility hasT hair will remember the last time things looked like this. The 1970s was a decade that started with highrates and large shipbuilding programmes onlyto progress to low rates by the mid-70s. In the charterers and by port state organisations. When combined with the increasing sophistication of the way information is gathered and disseminated, a decline in quality will soon be noticed. increased. The increase in incidents is worrying as they are a leading indicator of the danger of a bigger spill. The wrong set of circumstances, even with double hull, could produce a large visible spill, which would set1980s, low rates continued, which resulted in With the many new requirements mentioned the industry back years.a change to the structure and standards within above it is easy to be distracted from what has There are a variety of reasons why there hasthe industry. This was reflected in some of the been the industry’s main aim – reducing oil been this increase. I claim no detailed analysisincidents occurring in the 1980’s and 1990’s. pollution. but here are some thoughts:- Could we see that again boom in the early The annual Intertanko casualty statistics Larger fleet although other analysisyears of the new century, followed by low (see below), which also includes data from corrected for size of fleet shows there isfreight rates in the teens and incidents in the ITOPF, is a useful indicator. still an increase when that is taken intolate teens and twenties? The graph shows the improvement from the account. History seldom repeats itself exactly, but 1990s to the mid 2000s. It is difficult to think Predictable teething problems in the largethere are lessons to be learned from the past. of another industry that has enjoyed such an number of new ships increasing hull andSo what is the same as last time and what is improvement. We should all be proud of that. machinery incidents.different. The increase in casualties since the mid Linked to the above, a lack of familiarity Today, we have low freight rates and 2000s is a worry even though it has not with new equipment in the new vessels.oversupply of tonnage. We are facing slow resulted in an increase in pollution. Competence and experience gapgrowth in large parts of the world, so overall Presumably double hull has done what is particularly in senior ranks carried forwarddemand for shipping services is down. supposed to in reducing pollution from low from reduced training and recruitment inEnergy costs are high and energy demand is energy collisions and groundings. the last recession.not growing as quickly as previously forecast. The things that are different from the 1980sare the most interesting:- Interest rates are low while they increased over the 80’s. This suggest that depending on finance arrangements and build cost, the drain from finance costs may be less of a problem that the 1980s. The industry structure is more complex leading to more complex regulation and requirements. New requirements related to air quality, security, ballast exchange and greenhouse gases are being introduced without reference to the ability to fund. We already have a shortage of quality officers worldwide, which combined with the complexity of modern vessels suggests a hunt for new cheaper sources will have Source: Intertanko. limited benefit without affecting quality.Most importantly though is the tanker The catch is that as the industry has Could there also be the ‘laws of diminishingindustry’s concern for quality safe ships. This improved the tolerance for spills has reduced returns? I believe the development of safetyMarch 2012 TANKEROperator Annual Review I
    • ANNUAL REVIEW - COMMENTmanagement systems with their focus on so will the outside world and this may reduce At the later stages without seeing the bigcontinuing improvement was a major customer’s confidence in using you. picture the tower will collapse.contributor to the improvement shown above. Vetting, port state, USCG etc will notice if A warning from history - the good officersIn the early days of the system it was easy to your operating standards have started on board your ships prevent more things goinggenerate ‘quick wins’ - improvements that dropping off even if you don’t notice yourself. wrong than you ever hear about irrespective ofwould have a wide and deep benefit while not The nature of these organisations are such that near miss and incident reporting. As you makegenerating excessive effort and cost to when a warning comes up that fleet standards changes they will be the last barrier that willimplement. are falling then it triggers further attention prevent something that is merely ill advised As time passed, the need to react to resulting in more inspections, etc. This will hit turning into a disaster. So take care to retainincidents and continuously improve may result the revenue side of things as ships become their resilience in the difficult times.in more onerous, less effective solutions. more difficult to trade, get arrested etc. To me then the big question over the nextThese solutions may have the opposite effect So the decisions on which costs are good few years will be:-to that desired because they absorb more of costs and which are bad ones is important. How do we reduce operating costs whilethe limited on board capacity. In some cases Cost cutting is a spiral, which if unchecked improving our operating standards? This is thethat capacity may already be exceeded with leads to catastrophe. Quite often most debate title of the forthcoming Tanker Operatorthe result that corners are being cut just to get will take place on the first turn of the spiral. conference in Athens on 3rd April at whichthrough the day. Where does this leave the shipowner? Iwould say in the eye of a perfect storm:- Rates are low, so limiting funds available. New requirements mentioned above that will cost money to implement and absorb shipboard workload. The need to focus on maintaining and indeed improving the operating standards created to avoid pollution. The possibility that just ‘pedalling faster’ will generate more expense and less improvement in the safety management system. Tomorrow isn’t just yesterday squared!!The shipowner is subject to the same advicethat Charles Dickens’ character Mr Micawbergave David Copperfield: “Annual income £20,annual expenditure £19, result happiness:Annual income £20, annual expenditure £21,result misery.” Based on James Reason. To avoid ‘misery’, the shipowner has tomake changes to deal with the current market. At this point the cuts are least likely to cause the Author is speaking on the subject of –It is fair to say that after a period of boom catastrophe, as there will be multiple layers of How to undertake shipmanagement better (seethen there will be some potential to cut costs, protection. At the next turn the debate will be www.tankeroperator.com for details). TObut at what cost? less because ‘look at last time nothing In simplistic terms the shipowner operates happened’. As the spiral progresses morein the space between bankruptcy and barriers are peeled away increasing the risk *This article was written by Martin Shaw, whocatastrophe. If you spend too much you will but the spiral continues because ’nothing has is the managing director and founder ofgo bankrupt. If you spend too little on safe happened’. Marine Operations and Assuranceoperations you will face a catastrophe, which In fact there may be some small signs, but Management Solutions (MOAMS), amay well lead to bankruptcy as well. In a high they may be overlooked. This is an application consultancy set up in 2010 dedicated to themarket, bankruptcy is a long way away and of the corollary to ‘Murphy’s Law’. Murphy’s application of modern operationalyou can afford to spend to avoid the Law is ‘what can go wrong will go wrong’. management techniques to drive efficiencycatastrophe. Indeed you will spend more to The corollary is ‘What should go wrong and safety in the marine sector.keep the ships running and trading. In a low doesn’t and we draw the wrong conclusions’. Previously, Shaw was vice presidentmarket the space between bankruptcy and So the focus is cost management not cost technical in BP Shipping, the shipping arm ofcatastrophe is a much narrower space and cutting and relies on an understanding of the the BP Group. He has a background in marinetakes more skill to operate within. value as well as the cost of what you are engineering having served at sea up to the In the real world there are early warnings of taking away. rank of second engineer before taking thebankruptcy and catasptrophe. Clearly you will It’s a bit like playing the block game Extra First Class engineers’ examination andrecognise the cash flow problems on the way ‘Jenga’ with a blindfold on. In the early stages coming ashore into BP Shipping’s office asto bankruptcy. More importantly in the ‘global of the game you can take away blocks by feel Fleet Safety Officer.village’ and especially with listed companies, without causing the block tower to collapse. II TANKEROperator Annual Review March 2012
    • ANNUAL REVIEW - MARKETS Where did it all go wrong? The new year has started with the global economy in a precarious state, as emerging economies expand, while advanced economies struggle to keep pace. S-based consultancy McQuilling almost 2% per year for clean petroleum this demand for older tankers needed forU Services said at the time of writing in its 2012-2016 Tanker Market Outlook, global GDPgrowth was forecast at 4% with the IMFexpecting that emerging economies would products. In an effort to improve the company’s forecasting, in this year’s cycle McQuilling said that it attempted to capture trade between non-OECD countries. This decision was made conversions. As a result, McQuilling said that at least 15 VLCCs will be removed from the fleet each year in the forecast period. In order to reflect current industry practicesexpand by 6.1% and advanced countries by due to the rising energy demand in developing in response to rising bunker prices, the1.9%. countries, new refining infrastructure and consultancy lowered its net-fleet sailing speed However, against a backdrop of sovereign changes in oil production trends. As a result, by one knot to 13.5 knots at the start of 2012.credit risks in Europe, a polarised political the consultancy claimed to have been better The assessment of historical bunker pricesclimate in the US and inflationary concerns in able to analyse recent changes in the tanker compared to Brent crude oil showed that thethe developing economies, these figures were market. traditional correlations no longer yielded anrecently revised downward. In 2011, McQuilling expected 276 vessels accurate basis for forecast. This resulted in The tanker market has not been immune to would be delivered into the tanker fleet, but placing an additional supply-premium onthe economic situation. Looking back at 2011, only 228 actually did so. Although this helped bunker prices to $650 per tonne.McQuilling calculated that total tanker limit tonnage capacity growth in 2011, it will Asset prices declined throughout 2011.demand contracted by 0.5% from 2010 levels. likely pressure fleet expansion, particularly in Overall, prices contracted by almost 9%This decline was influenced by several 2012 and 2013 as delayed deliveries enter the across all class sizes and ages. The only sectorunexpected events such as the Libyan civil trading fleet. to post a rise in secondhand asset prices waswar, which slashed North African export The exit profile was estimated at 75 vessels MRs. The comparatively higher freight ratesvolumes for the majority of the year. but 69 actually exited the trading fleet. The recorded by the MR class during 2011 As a result IEA members released supplies most noteworthy difference occurred in the supported this development.from Strategic Petroleum Reserves, which VLCC fleet, whose total fell by 18 vessels. Syndicated loans to the shipping industryfurther eroded tonne/mile demand. Weak This was partially influenced by demand for will remain limited in the current economiceconomic activity, reduced refinery utilisation FPSO/FSO conversions. The continued environment. Ironically, this factor shouldin Europe and lower purchases of West expansion of offshore reserves will help keep help the market gradually return to a balancedAfrican crude from Asian customers also hadan effect. Sport rate TCE Revenue The VLCC sector continued to be the most Forecast Forecastconsolidated class for the transportation of (2012 WS) (US$ 000/Day)crude and residual products. A total of eight 2011 (Act)* 2012 2011 (Act)* 2012trades comprise almost 80% of VLCCdemand. Crude & DPP In clean petroleum products, evolving trade VLCC 260 MMT (AG / East) TD 3 45 46 10.2 23.5routes increased LR1 tonne/mile demand by Suezmax 130 MMT (Wafr / USAC) TD 5 66 68 13.6 13.2over 10%, but the MR2 types remained the Aframax 70 MMT (Carib / USG) TD 9 93 105 4.8 14.0workhorses of the sector. McQuilling anticipated that excess tonnage Panamax 50 MMT (Carib /USAC) TD 10 114 115 9.1 11.9supply will remain the primary theme during Clean Productsthe consultancy’s forecast period. The Aframax 75 MMT CPP (AG / Japan) TC 1 95 90 9.1 12.8downside risk to the global economy will add MR 38 MMT CPP (Carib/USAC) TC 3 134 132 11.4 12.1an additional element of uncertainty to tanker MR 37 MMT CPP (Cont / USAC) TC 2 141 139 10.4 10.3demand. As a result, the consultancy forecast that *Actual 2011 average spot rates based on 2012 Worldscale flat ratesdemand should rise by an average of 1.5% per Source: McQuilling Servicesyear for crude and residual products and by Spot Rate Forecast by Trade (2012 WS) / TCE Revenue Forecast by Trade (US$ 000/Day).March 2012 TANKEROperator Annual Review III
    • ANNUAL REVIEW - MARKETSsituation, as it should limit orders for new America and Europe, as weak petroleum and northern South America.tankers, McQuilling said. product demand reduced refinery utilisation Data published by the EIA put refinery As the lending capacity is constrained, rates and crude-oil imports via pipeline have utilisation on the East Coast at 70% ofsome companies may not be able to meet altered supply sources. capacity in 2011 compared to a nationalloan-to-value covenants, which should This trend can be observed as tonne/mile average of 85%. Tonne/mile demand wasencourage industry consolidation. This could demand from the Middle East to the US Gulf further pressured from the reduction in Libyanopen the door for companies from outside the declined by 4% throughout the year. supplies, the economic situation in Southernshipping industry to acquire assets. In recent editions of its Tanker Market Europe and, to a lesser extent, recent events in Finally, McQuilling expected spot freight Outlook, McQuilling noted the trend of Syria and Iran.rates to hover at or near 2011 levels (adjusted increased trade between loading regions in the During the next five years, McQuillingto 2012 WS flat rates) this year. West with cargoes destined to the East. The expects tonne/mile demand for crude and load regions are defined as the Americas, West residual products to rise by an average of Demand Africa and Europe and discharge regions 1.5% per year. Tonne/mile demand forTurning to demand, McQuilling said that in include the Far East, Southeast Asia and India. Suezmaxes is forecast to rise by 9% duringaddition to oversupply stemming from robust It is expected that this trend will continue in the period but its overall share will remaincontracting in 2006, the tanker market has the future, despite demand being slightly stable at about 18% of demand.been negatively impacted by several events. lower in 2011 compared to previous years. With only one exception, trade volumes on The Arab Spring acted as a double edged This contraction was largely influenced by the top 15 CPP trade routes increased bysword as it slashed Libyan crude oil reduced Libyan production, which had a around 13% from 2010 to 2011 even thoughproduction for the majority of the year and significant influence in widening the price the total sector only expanded by 1.5%. Tradeprompted IEA members to release 60 mill differential between light and heavy crudes. in CPP saw a noticeable shift towards largerbarrels of oil from the Strategic Petroleum This raised the price of West African crudes tankers on trades between the Far East and theReserves in June 2011. This reduced demand in comparison to oil supplies from the Middle Caribbean, EC Mexico, Venezuela andfor loadings and discharge from the global East, lowering tonne/mile demand from Colombia. Overall, LR1’s share of tonne/miletanker fleet. western loading zones. The West-to-East demand rose by almost 15% throughout the Oil demand was further pressured trades are also largely influenced by fuel oil year as the downstream industry beganthroughout the year as a solution to the arbitrage into the Asian market, as Singapore undergoing structural changes.European financial crisis remained elusive and is the world’s largest bunkering hub. A steady rise in trade from Northern Europesigns of an improving US economy were In 2011, data showed that bunker sales hit to South/East Africa has been observed overclouded by political wrangling. As the year another record high of 43 mill tonnes, with recent years. These cargoes are mainlycame to an end, rising concerns over inflation sales averaging 3.5 mill tonnes per month. gasoline and gas oil. The boost in trade can bein emerging economies further lowered oil This strong demand helped limit the fall in attributed to the region’s healthy economicdemand and economic forecasts. West-to-East fixtures last year. outlook with GDP growth forecast at 5% this As mentioned earlier, for the transportation Tonne/mile demand for Aframaxes fell by year.of crude and residual products, VLCCs remain 18% throughout the year. Despite its greater Over the next five years, McQuillingthe most consolidated of all sectors with eight flexibility compared to VLCCs and Services forecast that CPP tonne/mile demandtrades making up 77% of demand. On a Suezmaxes, regional factors negatively will rise by an average of about 2% per year.regional basis, the Far East made up the influenced demand. It is expected that MR2s will remain the worklargest portion of demand as its expanding For example, in the Western Hemisphere horses of the CPP trade but will slowly cedeeconomy and downstream sector continuously reduced throughput rates at refiners located on some tonnage to larger vessels.require new sources of hydrocarbons. The the US East Coast lowered import Trade in petroleum products will continueopposite has been occurring in OECD North requirements from load ports in the Caribbean evolving as weak margins are consolidating Brown’s Nautical Almanac is arranged in numbered parts for ready reference as follows:– I. Astronomical data in daily use by navigators, with explanations of its use. II. Nautical Tables and Methods. III. Tide Tables for Home and Foreign Waters, predictions have been compiled by the most reliable authorities as acknowledged; The Tidal Constants for British Isles and Foreign Ports. IV. Coastal Courses and Distances around the British Isles. Courses are given in Correct Magnetic (2012) and in True (3-figure) notation, distances are to the nearest ¼ mile; Table of Courses and Distances around the British Isles, North Sea, English Channel and the Baltic Ports. Providing Nautical V. Distance Tables giving a world-wide coverage of total distances from the principal ports of publications for 160 years. Britain, U.S.A. and Canada, to all important ports of the world; Numerous other tables giving inter-port distances in important areas. Distributors in over 30 VI. Miscellaneous Information: Legal, Technical and General. countries worldwide. VII. Lights, Beacons and Buoys of the British Isles, including Éire and the Channel Islands; website: www.skipper.co.uk Pilotage information. e-mail: info@skipper.co.uk A mass of Valuable Matter for the Merchant Navy, Yachtsmen, Shippers, Shipping Offices, etc. telephone: 0141 429 1234 Used round the world every day throughout the year. IV TANKEROperator Annual Review March 2012
    • ANNUAL REVIEW - MARKETS g y gthe refining industry in OECD countries. forecasting slippage Total No. of Vessels Additions Deletions Trading FleetThese closures have totaled just over 1 mill considers many 400 4200 3900 350bpd in the US Atlantic Basin since the second factors. After 300 3600 3300half of 2011. determining what 250 3000 200 vessels will be 150 2700 2400 Supply delivered as IMO 1 100 2100 50 1800On the back of the continued weakness in the or 2, the orderbook is 1500 0global economy, oil market disruptions and adjusted for delays (50) 1200 900over capacity, tanker contracting fell to 109 and cancellations (100) 600 (150) 300last year, its lowest level since peaking in based on an internal (200) 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162006. assessment of the Given the current size of the fleet, which financial health ofstands at 3,498 tankers above 27,500 dwt, shipyards and Figure 1- Total Fleet Inventory Changes*. Source: McQuilling Services.contracting is expected to remain low in the owners.short-term. The availability of loans to the The final step in *These figures do not account for switching between clean and dirtyshipping industry will also remain limited in estimating fleet trades on Aframax / LR2 and Panamax / LR1. They also do not accountthe current economic environment. This expansion compares for other factors that reduce supply, such as slow steaming, floatingshould help the market gradually return to a the current orders in a storage and port delays.balance, as it should continue to limit new given year to a fractiontanker orders, McQuilling said. of the average placed between 2001 and 2011. specialisation of trades for which these tankers Prior to making adjustments to represent The greater of the two is used to determine the are used.delays and cancellations, McQuilling recorded number of deliveries that could materialise Figure 1 illustrates additions, deletions and562 vessels of 27,500 dwt and above currently during the forecast period. trading fleet inventory for all tanker classes.on order through 2014. This accounts for Over the next five years, McQuilling expected Note that through 2014 the tanker fleet willvessels that have a hull and an IMO number 767 tankers to be delivered into the market, continue absorbing a high number of tankersbut omits deals listed as ‘reported’. which includes vessels delayed from previous before beginning to slow towards the end of The consultancy said that its process of years. Some 228 tankers are expected to be the forecast period. delivered this year. Starting in 2014, McQuilling said that it This represents a expected the delivery programme to slow to slippage of 35% based roughly 125 vessels with this number on the original- continuing to shrink. R p Responsible tank cleaning Responsible t k cleaning ible tank l e ig g unadjusted orderbook. As bunker prices rise in an environment of In the larger tanker tanker oversupply, upward spot rate classes, the movements are limited and owners have consultancy forecasted reduced sailing speeds to reduce fuel deliveries of 62 consumption. McQuilling responded to this VLCCs and move by lowering the average fleet sailing Suezmaxes. speed by one knot to 13.5, realising that some With the exception owners may be operating at speeds closer to of the MR2 class, with 8-9 knots. an estimated 44 As the sailing speed is reduced, the delivery SC 15TW deliveries this year, of a cargo takes more time, reducing both the SC 45TW supply increases global and route specific availability of should be less vessels. Table 1 provides the impact to the pronounced in the tanker fleet when operators reduce sailing smaller tanker sectors. speed by one knot. Other factors that will Same make Relatively healthy contribute to a reduction in tanker supply are makes sense freight rates have port delays and demand for floating storage. Select Scanjet for both your fueled MR2 market In recent years, demand to convert VLCCs fixed installed and portable optimism in recent into FPSO/FSO units has increased. This has tank cleaning equipment years. The least been influenced by robust demand from the SC 30T pronounced supply expanding offshore industries in South growth should occur in America, West Africa, the Gulf of Mexico, the Panamax and MR1 Southeast Asia and Australia/New Zealand. classes with a Going forward, the consultancy estimated that Phone: + 46 31 338 7530 E-mail: sales@scanjet.se respective three and the offshore sector will absorb 15 VLCCs per Web: Web: www.scanjet.se www.scanjet.se nine deliveries year for conversion to FPSOs/FSOs. expected this year. Historically, these have been single hull This small orderbook vessels but at the end of last year the Chios is due to the increasing (301,824 dwt, 1993 built) and the ArosaMarch 2012 TANKEROperator Annual Review V
    • ANNUAL REVIEW - MARKETS years. This factor could be adjusted upwards if VLCC SUEZ AFRA PANA MR the global economy regains its balance and Number of Vessels * 15-28 3-15 8-15 2-5 9-20 returns to a growth trajectory. Source: McQuilling Services It is important to remember when looking atTable 1 - Number of Vessels for each 1 knot of speed the capacity index that it is a tool to gauge the * Assuming speed reduction across fleet sector. Specific number depends on deployment interaction of supply and demand and not an assumptions absolute indicator of expected market performance. (291,391 dwt, 1993 built) double hull vessels weather, maintenance, delays, dislocation, Looking forward, the tanker market were sold for conversions into floating storage capacity reductions and availability will continue to be pressured by the units. This trend should continue and further reductions. Figure 2 provides the capacity combination of high tonnage availability help reduce fleet capacity. index for the entire trading fleet. combined with demand side pressure. TO Capturing the relationship of the factors that In the coming years, the influence tonnage supply and their impact on capacity index for the total No. of Ships Capacity Index 3500 52% demand in a specific period requires fleet will continue to rise, Capacity Index - right scale evaluating the effect of the fundamentals as deliveries will outpace 3000 Tanker Supply 51% driving the market. In its 2012-2016 Tanker deletions. In the short- Tanker Demand 50% Market Outlook, McQuilling calculated the term, a rising capacity 2500 surplus, or deficit, of vessels by subtracting index in the LR1 sector 49% estimated demand from the average annual will be seen, as a relatively 2000 48% tanker inventory that is available for each strong delivery profile 1500 vessel class. could pressure 47% By normalising this result, a capacity index fundamentals. 1000 46% was produced to gauge the surplus, or deficit, The capacity index is of a specific tanker sector. In addition to the also pressured, as the 500 45% fore mentioned factors that absorb tanker forecast is for demand 2001 2003 2005 2007 2009 2011 2013 2015 capacity, the capacity index accounts for growth to be less Figure 2: Capacity index - total fleet. tanker supply reductions stemming from pronounced during the out Source: McQuilling Services. A successful story... Thruster Systems from BRUNVOLL Brunvoll’s operation is dedicated to thrusters, and we supply and service complete thruster packages We take full responsibility for your thruster BRUNVOLL – the single needs, including source supplier of thruster drive system packages systems Refined and proven concepts teamed up with supreme technical solutions ensures For more information, www.brunvoll.no low life cycle costs BRUNVOLL – manufacturer of BRUNVOLL • Tunnel Thrusters Strandgata 4-6, • Azimuth Thrusters N-6415 Molde • Low-Noise Thrusters Tlf. +47 71219600 • Thruster Control Systems e-mail: office@brunvoll.no VI TANKEROperator Annual Review March 2012
    • ANNUAL REVIEW - MARKETS The changing VLCC spot market VLCCs seem to the most talked about sector of the tanker industry at present. his is primarily due to the dire and diesel demand, with the US becoming a fixtures discharged in China; in January 2012,T freight rates available to VLCC owners chartering their vessels for voyages from the Middle East toboth east and west destinations. Braemar Seascope took a look back to 2005 net petroleum products exporter for the first time last year since the late 1940s. Despite overseas demand for petroleum products refined in the US, a number of East Coast refineries have closed. They relied on that had increased to 40%. Chinese oil refiners have swept into leading positions in the VLCC charter market. Indeed, discharges east of Suez now account for 85% of VLCC voyages out of theto see how the VLCC spot market has imported crude, but couldn’t compete with US AG compared to 71% in 2005.changed in just a few years. Gulf refiners with access to cheaper West Mark Williams, Braemar Seascope research Since 2005, there has been a 25% reduction Texas Intermediate crude oil. director, believed that this swing to the East isin reported AG/West spot VLCC voyages China, meanwhile, has become the world’s now firmly entrenched.from 291 in 2005 to 216 in 2011. Just 11 second largest consumer of oil and, with an He said, “As Chinese refiners will probablyAG/West fixtures were recorded in January2012; if annualised, the total would be 180,only 62% of the number recorded just sevenyears earlier. The US, the world’s largest oil consumerand traditionally the major customer forMiddle Eastern oil, has diversified its suppliesof energy with important knock-on effects forthe VLCC market. The reasons for thisdiversification are complex and reflect notonly market evolution, but changes to USeconomic, fiscal, environment and foreignpolicy. According to a recent US EnergyInformation Agency (EIA) report, domesticcrude oil production reversed a long-termdecline to grow from 5.18 mill barrels per day(bpd) in 2005 to 5.47 mill bpd in 2010.Meanwhile, oil imports from Canada rosefrom 1.6 mill bpd in 2005 to 1.97 mill bpd in2010. More locally-produced oil will replace long- How the VLCC market has changed since 2005. Source - Braemar Seascope.haul oil in a shrinking marketplace: the EIA2012 Early Release Overview forecasts a extensive refinery building programme add over 6 mill bpd of domestic refinery0.5% annual reduction in energy consumption underway, is in line to match US oil capacity in the next five years, their presenceper capita in the US between 2010 and 2035. consumption within the current decade. in the VLCC spot market is likely to increase Meanwhile, high gasoline prices in the US As a result, the VLCC spot market has further as China makes efforts to secure itshave led to a reduction in domestic gasoline swung eastwards; in 2005, 20% of VLCC spot energy supplies.” TO“ As Chinese refiners will probably add over 6 mill bpd of domestic refinery capacity...the VLCC spot market is likely to increase further as China makes efforts to secure its energy suppliesMarch 2012 - Mark Williams, Braemar Seascope Research TANKEROperator Annual Review ” VII
    • ANNUAL REVIEW - MARKETS Demolition set to break records Could steel traders be in for a bumper 2012 due Last year was not a record-breaking one for tanker recycling, despite to the extra supply of vessels for recycling this the poor freight markets. For four years from 1982 to 1985 over 20 year? mill dwt of tankers were recycled while 14 mill dwt was sold for Bets are now being taken about how many vessels will be forced by demolition in 2010. Some 8.4 mill dwt of tankers were recycled in the weak freight markets into the arms of recyclers, Braemar 2011, with the figure for January 2012 maintaining that trend. Seascope said. By comparison, Braemar Seascope estimated that, in 2011, 24.2 Globally, ship scrapping capacity is almost unlimited in certain mill dwt of bulk carriers were sold for scrap, surpassing the 12 mill areas, as it is a simple business of driving ships onto beaches and dwt scrapped in 2009 during the credit crunch, and the 11.5 mill dwt cutting them up with oxyacetylene torches. scrapped in 1998 after the Asian financial crisis, as well as the 15 Theoretically, great numbers of ships could be sold for scrap and mill dwt scrapped in 1986, the year the BIFFEX bottomed out at held as inventory by the scrap dealers, to be pushed up the beach as 554 points on 31st July of that year. and when required. Scrap prices for ships of around $500 per light Scrapping of all types reached 41 mill dwt in 2011, making it the displacement tonne (LDT) remain, suggesting that demand for the third largest year for demolition ever. The second biggest was in steel content in ships remains strong, the broker said. 1986 when 43 mill dwt was scrapped, while the record was 1985 Indeed, ship recycling capacity could grow further in coming when 44 mill dwt of vessels were sent to the beaches. years. The China State Shipbuilding Corporation president said Mark Williams, Braemar Seascope’s research director, said: “If recently that half of China’s shipyards could go bust in the next two macro-economic conditions in 2012 continue to underwhelm and if to three years. Many of these yards could switch to recycling as, in scrap prices stay at their recent high levels, this year could easily theory, could European shipyards, though the economics of surpass 1985 as a peak year for demolition.” recycling in Europe are currently not encouraging. SHIP AND OFFSHORE UNIT REPAIR AND CONVERSION. O Harland and Wolff Heavy Industries Ltd Queen’s Island, Belfast BT3 9DU, Northern Ireland T: +44 (0) 2890 458456 M: +44 (0) 7710 036 746 E: billymc@harland-wolff.com www.harland-wolff ff.c f.com ISPS approved. BSEN ISO9001: 2000 AccreditedVIII TANKEROperator Annual Review March 2012
    • ANNUAL REVIEW - OIL SPILLS Last year’s oil spills lowest on record The recent trend towards fewer spills from tankers and less oil spilt is being maintained. ccording to International TankerA Year 7 700 Tonnes >700 Tonnes Year 7 700 Tonnes >700 Tonnes Owners Pollution Federation’s 1970 7 28 1990 51 14 (ITOPF) annual review, only 1971 18 14 1991 30 7 1972 48 27 1992 31 10 one large spill from a tanker 1973 28 31 1993 31 11occurred in 2011; the same as for 2008 and 1994 26 9 1974 90 272009. 1975 96 20 1995 20 3 With only four medium sized spills 1976 67 27 1996 20 3recorded for the second year in a row, this 1977 69 16 1997 28 10means that 2011 saw just five spills of 1978 59 23 1998 26 5greater than 7 tonnes (50 barrels) from 1979 60 32 1999 20 6 1970s Total 542 245 1990s Total 283 78tankers, the lowest on record. Average for decade 54.2 24.5 Average for decade 28.3 7.8 In addition, the total volume of oil spiltlast year was also the lowest on record and, Year 7 700 Tonnes >700 Tonnes Year 7 700 Tonnes >700 Tonnesat around 1,000 tonnes, represents a minute 1980 52 13 2000 21 4percentage of the volume of oil moved by 1981 54 7 2001 17 3sea. This combination of record lows is 1982 46 4 2002 13 3 1983 52 13 2003 17 4especially encouraging given the ever 1984 26 8 2004 17 5increasing quantities of oil transported by 1985 33 8 2005 22 3sea, ITOPF said. 1986 27 7 2006 13 5 The Federation maintains a database of oil 1987 27 10 2007 13 4spills from tankers, combined carriers and 1988 11 10 2008 8 1barges. This contains information on 1989 33 13 2009 7 1 1980s Total 361 93 2000s Total 149 33accidental spillages since 1970, except those Average for decade 36.1 9.3 Average for decade 14.9 3.3resulting from acts of war. The data held includes the type of oil Table 1: Annual number of oil spills Year 7 700 Tonnes >700 Tonnesspilt, the spill amount, the cause and (>7 tonnes). 2010 4 4location of the incident and the vessel 2011 4 1 Source: ITOPF. 2010s Total 8 5involved. Average 4 2.5 For historical reasons, spills are generallycategorised by size, small (<7 tonnes, or Position Shipname Year Location Spill Size (tonnes)<50 barrels), medium (7-700 tonnes, or 1 ATLANTIC EMPRESS 1979 Off Tobago, West Indies 287,00050-5,000 barrels) and large (>700 tonnes, 2 ABT SUMMER 1991 700 nautical miles off Angola 260,000or >5,000 barrels), although the actual 3 CASTILLO DE BELLVER 1983 Off Saldanha Bay, South Africa 252,000amount spilt is also recorded. Information 4 AMOCO CADIZ 1978 Off Brittany, France 223,000 5 HAVEN 1991 Genoa, Italy 144,000is now held on nearly 10,000 incidents, the 6 ODYSSEY 1988 700 nautical miles off Nova Scotia, Canada 132,000vast majority of which (81%) fall into the 7 TORREY CANYON 1967 Scilly Isles, UK 119,000smallest category, ie <7 tonnes. 8 SEA STAR 1972 Gulf of Oman 115,000 9 IRENES SERENADE 1980 Navarino Bay, Greece 100,000 This year, analysis of the causes of large 10 URQUIOLA 1976 La Coruna, Spain 100,000spills since 1970 has allowed a more 11 HAWAIIAN PATRIOT 1977 300 nautical miles off Honolulu 95,000detailed breakdown of vessel operations 12 INDEPENDENTA 1979 Bosphorus, Turkey 95,000taking place at the time of the incident. 13 JAKOB MAERSK 1975 Oporto, Portugal 88,000 14 BRAER 1993 Shetland Islands, UK 85,000 The analysis has revealed that 50% of 15 KHARK 5 1989 120 nautical miles off Atlantic coast of Morocco 80,000large spills occurred while the vessel was 16 AEGEAN SEA 1992 La Coruna, Spain 74,000underway in open water with allisions, 17 SEA EMPRESS 1996 Milford Haven, UK 72,000 18 NOVA 1985 Off Kharg Island, Gulf of Iran 70,000collisions and groundings accounting for 19 KATINA P. 1992 Off Maputo, Mozambique 66,700just over half of these. These same causes 20 PRESTIGE 2002 Off Spanish coast 63,000accounted for some 95% of incidents when 35 EXXON VALDEZ 1989 Prince William Sound, Alaska, USA 37,000the vessel was underway in inland, or Table 2: Major oil spills since 1967. Source - ITOPF.restricted waters. TOMarch 2012 TANKEROperator Annual Review IX
    • TOP 30 TANKER COMPANIES TANKEROperator’s Top 30 owners and operators Taking the usual format, this list has been compiled in descending order of total tanker deadweight tonnage per company. The figures have been extracted from company websites, the Equasis database, other sources and the companies themselves. We have purposely not included FPSOs, LPG and LNG carriers in the totals. As with last year’s listing, due the plethora of newbuildings delivered in 2011 and the amount of tonnage yet to come, plus a possible increase in the numbers recycled, there has been and still will be changes in the fleet compositions during the next year or so, which will continue to result in changes to the rankings. For example, in this listing the SCF Group has moved up the charts, while Oman Shipping and Nordic American Tankers have been included for the first time, due to their high number of recent deliveries.FRONTLINE Group(24.96 mill dwt, plus 2.1 mill dwt newbuildings) Due to the parlous state of to the sale of assets to Frontline 2012, which January, 2012. In addition, it was recently 1 the market, which has adversely will be registered on Oslo’s NOTC listing. reported that the company had ordered six affected companies with vessels having As for the assets, Frontline 2012 will MRs from STX Jinhae for $32.5 mill each.a high level of finance attached to their book purchase five VLCC newbuilding contracts, According to brokers, the vessels will bevalues, at the time of publication, Frontline six modern VLCCs and four modern delivered during 2013-2014. This order markshad just finalised the restructuring of its Suezmaxes from Frontline, valued at $1,121 the company’s first foray into the productempire. mill in total. tanker sector. In a nutshell, this resulted in Frontline 2012 Currently, the Frontline group operates, Recently, the company has been sellingbeing formed on the back of a large private or commercially manages 43 VLCCs, 18 1990s- built tonnage mainly for recycling, orplacement of shares, raising $283 mill, of Suezmaxes, including two newbuildings and conversion work, which looks set to continuewhich John Fredriksen’s investment vehicle five Obos. It has a further five newbuilding through 2012.Hemen Holdings had taken around half. VLCCs on order, which, as mentioned, have In addition, Frontline has formed aFrontline will retain about 8.8% of the new been switched to Frontline 2012. Suezmax pool – Orion Tankers – with Nordicshares. The totals include vessels chartered in, American Tankers (which see). The joint Once the shareholdings are in place, owned by subsidiaries and those commercially 50:50 joint venture will kick off with 29Frontline will receive $1,121 mill with respect managed, according to the website as of Suezmaxes. X TANKEROperator Annual Review March 2012
    • TOP 30 TANKER COMPANIESTeekay Corp(13.19 mill dwt, plus 940,000 dwt newbuildings) For ease of vessel compilation, Tanker 57 Aframaxes, one Panamax and five product 2 Teekay’s empire has been Operator has grouped all of Teekay’s owned carriers. In addition, there are four split up into what is now known as and chartered-in tanker tonnage under one newbuilding Suezmax shuttle tankers, plus aTeekay Parent and three daughter companies - banner. VLCC to come. The latter is jointly owned onTeekay Offshore Partners, Teekay LNG The figures listed do not include FPSOs, a 50:50 basis.Partners and Teekay Tankers. LPG and LNG carriers, but includes FSOs and This puts Teekay into second place in terms All four are public listed companies and the various shuttle tankers. of deadweight tonnage, despite having theover time Teekay Parent has sold (and According to the latest figures from the largest tanker fleet by vessel numbers.continues to sell) tonnage to the daughter company, Teekay Parent and its daughter Included in these figures is joint venturecompanies. companies operate a total of 48 Suezmaxes, part-owned tanker tonnage and long term chartered-in tankers, as well as five owned FSOs. As mentioned, not included are seven FPSOs, plus another two under conversion, 21 LNG carriers and five LPG/Multigas vessels on 15 year charters to IM Skaugen. They are operating in the Norgas pool. In a boost to its FPSO sector, last year Teekay agreed to purchase certain assets from Sevan and will take a 40% stake in the restructured company. In addition, Teekay LNG agreed to purchase six LNGCs from Maersk LNG in a joint venture with Marubeni. In the tanker sector, last June, Teekay Offshore signed an agreement with BG to build four shuttle tankers for operation in Brazil. The four Suezmax DP2 shuttle tankers will be constructed by Samsung Heavy Industries in South Korea. Upon delivery in mid-to-late 2013, the vessels will commence operations under 10-year timecharters to BG.Three of Teekay’s new shuttle tankers seen at a handling over ceremony at Stavanger.NYK Group(12.8 mill dwt) 3 NYK manages 40 VLCCs, tanker to service SMT’s North Sea offshore agreement with Repsol. This contract is for a four LR2s, 24 MRs and 11 chemical fields. five-year period starting from the fourth quartertankers, according to the company’s website The vessel will be built at Hyundai Heavy of 2012 and was the first timecharter contractdated March 2011. Industries and equipped with bow-loading signed by the joint venture after NYK entered In addition, the Japanese major manages 29 equipment. The tanker will also be built to the offshore shuttle tanker business inLNGCs and 10 LPG carriers, plus one DP2 notation to satisfy the stringent North Sea December 2010.ammonia carrier, which are not included in the shuttle tanker requirements. She will be A newbuilding DP 157,000 dwt Suezmax,figures. delivered in 2014. which is also being built at Hyundai Heavy One of NYK’s major joint ventures - Another timecharter was signed with Ente Industries will be used to ship crude oil fromKnutsen NYK Offshore Tankers (KNOT) - in Nazionale Idrocarburi (ENI) for two shuttle various locations, such as offshore Brazil.which NYK has a 50%, has entered into a tankers for a maximum 10-year period starting In the VLCC sector, in February 2011, NYKtimecharter contracts with several companies from summer 2013. and Thai Oil Public (Thai Oil) establishedlast year for newbuilding shuttle tankers. Two new 123,000 dwt shuttle tankers are TOP-NYK MarineOne, a joint venture These include a charter with Standard being built at Hyundai Heavy Industries and company based in Singapore.Marine Tønsberg, owned by ExxonMobil will each be equipped with a DP system. They The new company then purchased the VLCCExploration and Production Norway, for 10 will be used to transport North Sea crude oil Tenyo from NYK, which was subsequentlyyears, plus an option, for a newbuilding ashore. chartered to Thai Oil under a 10-yeardynamic positioning 112,000 dwt shuttle In addition, KNOT has signed a timecharter timecharter at the end of March last year.March 2012 TANKEROperator Annual Review XI
    • TOP 30 TANKER COMPANIESSovcomflot Group (SCF)(11.6 mill dwt, plus 1.6 mill dwt newbuildings) 4 Today, the SCF Group operates 156 tankers of all shapes andsizes, including six chartered in, resulting inthe company rising to fourth place in thelisting. They range from small asphalt/bitumencarriers and chemical tankers owned bysubsidiary Marpretrol to Suezmaxes. Theywill soon be joined by two VLCCs and afurther four Aframaxes, all of which arecurrently under construction. Broken down into types, SCF Groupoperates eight gas carriers with further fourLNG carriers on order, 24 ice-class shuttletankers, 60 oil tankers and 62 product tankers. The company also operates a drybulk andspecialised vessel fleet, such as tugs, seismicresearch vessels and icebreaking supplyvessels. The latter mainly operate in areas ofharsh conditions, such as the Arctic andRussian Far East, as do the shuttle tankers,which have been purpose built to operate insevere ice conditions. SCF/Novoship’s Aframax NS Clipper seen passing through the Dardanelles.Overseas Shipholding Group (OSG)(11.4 mill dwt, plus 1.1 mill dwt newbuildings) OSG still manages three out books, which have not been included in the International, Panamax International, and 5 of the four last remaining ULCCs in a figures. Suezmax International.joint venture, two of which have been Included are the three ULCCs, 14 VLCCs While each operates in generally the sameconverted to FSOs. (four chartered in), plus one newbuilding; two way, the characteristics of different market In total, OSG operates 111 tankers, of chartered in Suezmaxes; nine Aframaxes segments, geographic focus and establishedwhich 65 are owned and another 46 chartered (three chartered in), plus two newbuildings; cargo contracts differ, the company said.in. In addition, the US-based concern has one six lightering Aframaxes (four chartered in); For example, one of OSG’s ULCCs and allcar carrier, a series of articulated tug/barge six LR1s (two chartered in); 37 the VLCCs participate in the Tankerscombinations (ATB) and four LNGCs on its Handysize/MR product tankers (21 chartered International (TI) pool and trade worldwide on in), plus one long-haul voyages primarily in the spot newbuilding and 12 US market. TI was founded in 2000. flag product tankers All of the company’s Suezmax tankers are (10 chartered in). in the Suezmax International pool and trade Similar to other large predominantly in the spot market in the players in the market, Atlantic Basin. OSG entered this market OSG has been slowly segment in 2008 when the pool was shedding tonnage by established. recycling and Thirteen of OSG’s Aframaxes are in the redelivering chartered Aframax International pool, co- tonnage in the light of founded by OSG and PDV Marina in 1996. plunging returns. The latter has recently pulled out, but OSG OSG is a champion said it will continue to commercially manage of the pooling system this pool. and participates in four Finally, eight crude oil Panamaxes are in the pools: Tankers Panamax International pool, established in International, Aframax partnership with SONAP in 2004.One of OSG’s Jones Act US flag tankers built at Aker Philadelphia.XII TANKEROperator Annual Review March 2012
    • TOP 30 TANKER COMPANIESAET Tankers(10.7 mill dwt, plus 2.12 mill dwt newbuildings) 6 Part of the MISC group, Drydocks World Dubai to convert two of its the event of a potential deepwater wellSingapore-based AET Tankers is now one of latest Aframaxes into Marine Capture Vessels control incident in the US Gulf of Mexico.the world’s largest Aframax operators with 58. (MCV). Both vessels will be fitted with DP In addition, the company has 12 VLCCs, Eagle Texas and Eagle Louisiana, both technology, structural modifications requiredone Panamax and 13 chemical and products 107,000 dwt Aframax tankers delivered in for installation of modular processingtankers of various size ranges on its books. 2011 from Tsuneishi Shipbuilding, will equipment, additional accommodation and These figures, up to 1st January 2012, undergo extensive conversion and other facilities.include several long term chartered vessels modification allowing them to perform duties Once converted, the two tankers willand three Aframaxes owned in a joint venture. for Marine Well Containment Company continue to trade as standard Aframax tankers The newbuildings include four VLCCs, (MWCC) in the US Gulf of Mexico. until required for containment duties. AET’sfour Suezmaxes, plus two Aframax DP This project was on the back of a 20-year ship-to-ship transfer lightering operation isshuttle tankers. contract awarded to AET by MWCC to supply based at Galveston, Texas and operates STS in Last year, AET awarded a contract to two MCVs to provide containment services in the US Gulf.Maran Tankers Management(9.84 mill dwt, plus 1.28 mill dwt newbuildings) MTM is part of the newbuilding VLCCs to come. that specifies the requirements for 7 Angelicoussis Group and is represented Affiliate Maran Gas manages five LNGCs establishing, implementing, maintaining andby London-based Agelef as agents. and two LPG carriers, which have not been improving an energy-management system. This shipmanagement concern has 23 included in the figures. It offers companies a systematic approachVLCCs, 12 Suezmaxes and eight Aframaxes In January of this year, MTM was awarded to continually improve energy performance,on its books, including vessels bareboat an ISO 50001 accreditation by Lloyd’s including energy efficiency, use andchartered. Register. consumption, LR said. In addition, MTM has another four This is a voluntary international standardMaersk Tankers(9.29 mill dwt, plus abt 1.59 mill dwt newbuildings) 8 We have included all the units the figures. Last year, Maersk agreed to sell its within the LR2, Handytankers and entire LNGC fleet (eight) to a joint ventureBrostrom managed pools, plus the 17 VLCCs between Teekay and Marubeni.owned by the AP Moller-Maersk subsidiary. Another five VLCCs are under construction.All of the VLCCs will enter the Nova Tankerspool, which was recently set up with the aimof managing some 50 VLCCs by the end ofthis year. The pool partners are Maersk Tankers,Mitsui OSK/Phoenix Tankers, SamcoShipholding and Ocean Tankers. Morten Pilnov of Maersk Tankers, will beNova Tankers’ managing director. A poolmanagement company, Nova Tankers A/S, hasbeen incorporated with Kazunori Nakai aschairman. In January of this year, Ms Hanne Sørensenwas appointed new CEO of Maersk Tankerswith effect from 13th February 2012. Shereplaces Søren Skou, who recently assumedthe position as Maersk Line CEO. In addition, the group has a number of LPGcarriers, FPSOs and FSOs under varioussubsidiaries, which have not been included in Maersk’s 35,000 dwt Handysize Richard Maersk seen at Europoort.March 2012 TANKEROperator Annual Review XIII
    • TOP 30 TANKER COMPANIESMOL Group NITC(9.16 mill dwt) (8.97 mill dwt, plus 5.58 This year, we have taken the Atlantic Liberty, Atlantic Prosperity, the 1996- mill dwt newbuildings) 9 figures for vessels managed by Mitsui built Minesa and the 1998-built Rion, one of OSK Lines only, as shown by the the youngest VLCCs to go to the scrapyard 10 Due to political reasons,Equasis database. since the 1980s. NITC’s total could be subject to We have not included 20 LNGCs and Also on the scrap list was the 1992-built change, although Tanker Operator has tried toanother four LPG carriers. Suezmax Glen Maye. unravel the vessels owned. This leaves us with 18 VLCCs, one Last year, two of MOL’s shipmanagement . For example, late last year, OmanSuezmax, 10 Aframaxes, 10 LR1s and 28 companies merged. International Marine Shipping took back the six VLCCs that thechemical/product carriers. Transport and MOL Tankship Management company bareboat chartered to NITC, citing There are others owned by subsidiaries and joined together on 1st April, 2011 to form the threat of sanctions. These have beenchartered in, but these are too difficult to MOL Ocean Expert. deleted from the total deadweight tonnage inquantify, as they change almost daily. The merger integrated shipboard officers for operation. During the past year MOL has been the drybulk, tankers and LPG carrier sectors There must also be question marksrecycling 1990s-built tanker tonnage and belonging to both companies under the MOL surrounding some of the newbuildings, as torecently announced that another five would be umbrella to ensure more flexibility in seafarer their final destination regarding ownership.going breakers. allocation and streamline management, the At the beginning of this year, the company These included the 1995-built VLCCs company said at the time. was dealt yet another blow when the man credited with building up the company into what it is today, before the threat of sanctions moved the goal posts – Mohammad Souri – confirmed that he had left the company. The move appears political, as he was replaced by Hamid Behbahani, the former Minister of Roads and Transportation and a former professor at Irans University of Science and Technology, where he claimed to have taught current Iranian President Mahmoud Ahmadinejad. TORMMOL has recycled the Suezmax Glen Maye seen here in the Solent heading for Hamble. (7.65 mill dwt, plus 150,000 dwt newbuildings)Euronav China 13 Despite losing a few of its(8.73 mill dwt, plus480,000 mill dwt Shipping pool partners, TORM still has a considerable number of product carriers and isnewbuildings) Development a partner in the LR2 and LR1 pools. In total, TORM manages 29 LR2s, 22 (8.5 mill dwt, plus 1.9 11 All of Euronav’s 13 VLCCs LR1s, 51 MRs and 11 Handysize product and one ULCC operate in the Tankers mill dwt newbuildings) carriers. InInternational Pool. Another newbuilding Again China Shipping addition, theVLCC is to be delivered this year. 12 Development has risen in the listing Danish company These are a mix of wholly-owned and due to further deliveries of newbuilding has another threetimechartered in tonnage. VLCCs, taking the total to 15. newbuilding MRs The Belgian concern also operates 22 More are thought to be still to come- at to come.Suezmaxes and has another newbuilding to least six tankers of varying sizes, plus another To help ease itscome. Last year, the company cancelled a eight 48,000 dwt crude/products tankers from financial burden,further Suezmax newbuilding. Guangzhou Shipyard, whose contracting was last year the In addition, Euronav manages two ULCC announced in December 2010. company soldFSOs, which are both under long term In addition, according to the Equasis several productscontracts to Maersk Oil. Fleet management is database, the Shanghai-based company tankers, a coupleconducted by three wholly owned subsidiaries manages five Aframaxes, 16 LR1s, 13 of which were on- Euronav Ship Management and Euronav, Panamax crude carriers, 28 MRs and Handies, leaseback deals and cancelled oneEuronav Ship Management (Hellas). plus several smaller coastal tankers. newbuilding products carrier contract.XIV TANKEROperator Annual Review March 2012
    • TOP 30 TANKER COMPANIESDynacom Ocean TankersTankers (6.84 mill dwt, plus 1.27 mill dwt newbuildings)Management 15 Singapore-based Ocean Tankers has risen in ranking thanks to its VLCC purpose’ tankers. In addition, Ocean Tankers manages several (7.13 mill dwt) newbuilding programme, of which the bunker tankers, supply craft and tugs in and 14 During the last decade, DTM has company still has four more to come. around the Singapore area.taken significant steps to renew its fleet. Today, the company boasts 10 VLCCs, Ocean Tankers is to put its VLCCs into the For example, during the years 2000 - 2011, three Suezmaxes, 14 Aframaxes, six Nova Tankers pool, together with partnersa total of 54 older tankers were sold, while the Panamaxes, 22 MRs, four IMO2 Chemical Maersk, Samco and Mitsui OSK.company simultaneously embarked on a tankers and 21 of what is calls ‘generalnewbuilding programme with the signing ofseveral contracts for VLCCs, Suezmax,Aframax, coated and crude oil Panamaxtankers. Today, the Equasis database is showing 12VLCCs, 21 Suezmaxes, one Aframax and 14Panamaxes, both LR1s and crude carriers asmanaged by DTM. With the exception of four tankers, all thevessels were delivered to the company in2004, or after. Dynacom said that Ice Class vessels willbenefit from increased crude oil exports fromthe Baltic; there will be longer haul productshipments due to refinery capacity restrictions;companies with a modern fleet will have anadvantage; heating coils in VLCCs will aidthe carriage of fuel oil cargoes. The 2008-built VLCC Hua San.National Shipping Co of Saudi Arabia(NSCSA)(6.1 mill dwt, plus 280,000 of newbuildings) 16 NSCSA currently manages 17 VLCCs, 19chemical carriers and four conros. In addition, another six 46,000dwt chemical carriers are due forimminent delivery, plus a 75,000dwt chemical carrier. These will enter the NationalChemical Carriers (NCC) fleet,which is an 80:30 joint venturewith SABIC and operates all thechemical carriers. In 2009, NCC entered into a50:50 joint agreement with Odfjelland established an operatingconcern in Dubai. The companyalso has a 30.3% stake in LPGcarrier operator Petredec. All of the vessels are managedin-house by Mideast ShipManagement. NSCSA’s 2001-built VLCC Harad.March 2012 TANKEROperator Annual Review XV
    • TOP 30 TANKER COMPANIESBW Maritime COSCO(5.45 mill dwt) Group17 BW Maritime operates 14 looks after the tanker sector. (5.07 mill dwt) VLCCs, 16 products carriers and two The offshore side of the business has a fleetchemical tankers from its Singapore base. of FPSOs, FSOs and FDFSOs, including the 18 The COSCO Group has 12 All the vessels, including the LNG/LPG 360,000 dwt Belokamenka used as an FSO in VLCCs, two Suezmaxes, threefleet of BW Gas is technically managed by Kola bay, near Murmansk. These have not Aframaxes, 10 Panamaxes and three MRs inBW Fleet Management, whose Singapore arm been included in the figures. service under the management of Dalian Ocean Shipping (COSCO Dalian). There are no doubt more to come due to China’s effort to ramp up its energy imports in its own hulls and due the fact that the group owns many shipyards in China. In addition, the tanker sector of the group looks after four small LPG carriers. Associated Maritime Corp (AMC)BW Maritimes’s 2008-built VLCC BW Edelweiss. (4.72 mill dwt) 21 Part of the Hong Kong MingVela International Marine Wah Group, itself owned by China Merchants, AMC manages 13 VLCCs, one(4.86 mill dwt) Suezmax and seven Aframaxes. The Aramco subsidiary has continued one LR2 and five MRs. It is thought that the newbuilding19 its policy of selling older VLCCs, According to its website, Vela also has up to programme came to an end with the deliverieshence Vela’s dropping down the order. 40 tankers ranging from VLCCs downward on of two VLCCs last year, lifting the company The company currently owns 15 VLCCs, charter at any one time. up the rankings.Tsakos Energy Navigation Shipping(TEN) Corporation(4.77 mill dwt, plus 314,000 dwt newbuildings) of India20 TEN’s fleet consists of three VLCCs, 10 Suezmaxes, nine on order on the back of a long term charter with Petrobras. They are to be delivered in (SCI)Aframaxes, three LR2s, nine LR1s, six MRs 2012 and 2013 respectively. (4.65 mill dwt, plusand eight Handies. TEN also manages one LNGC. 630,000 dwt In addition, TEN has two DP2 Suezmaxes newbuildings) 22 At the beginning of this year, SCI had four VLCCs, 20 other crude carriers, 15 product carriers and two chemical tankers. In 2011, the company took delivery of eight LR1s and four Aframxes, while selling two product cariers and four Panamax crude carriers. Another two VLCCs are under construction at Rongsheng.TEN’s Aframax Sapporo Princess seen in the Bosporus approaching the Black sea.XVI TANKEROperator Annual Review March 2012
    • TOP 30 TANKER COMPANIESMinerva Tanker Pacific ManagementMarine (4.21 mill dwt, plus 1.08 mill dwt newbuildings)(4.62 mill dwt) 26 Tanker Pacific has based company had six VLCCs, 17 Aframaxes continued to shed some of its older and 12 MRs under management. 23 Minerva Marine currently tonnage and at the same time has a large In addition, its orderbook stood at four manages three VLCCs, five order book. Suezmaxes, four LR1s and four MRs.Suezmaxes, 22 Aframaxes and 10 MRs. At the beginning of this year, the Singapore- Last year, the company took delivery ofthree secondhand Aframaxes and a bulkcarrier. SK Shipping (3.78 mill dwt, plus 1.28 mill dwt newbuildings)Oman 27 The South Korean shipping In addition, the company ordered fourShipping Co group has 11 VLCCs, two Aframaxes, three MRs and four small chemical tankers VLCCs from Hyundai in 2009, which are not thought to have been delivered thus far.(OSC) under management, according to the Equasis database. In addition, the company manages five LNGCs and four LPG carriers.(4.53 mill dwt, plus 1.75mill dwt newbuildings) 24 OSC has 14 VLCCs, plus Thenamaris Chevron four more on order; two LR2s; twomethanol carriers; two chemical tankers and Ships Shippingtwo product tankers in operation. In addition, OSC has seven LNGCs, two Management (3.18 mill dwt)LPG carriers and several drybulk carriers, (3.37 mill dwt) Chevron Shipping’s fleet 29including VLOCs. includes eight VLCCs, three Around 12 of the VLCCs are in the VL8 28 This company has two Suezmaxes, six Aframaxes and five MRs.pool, a joint commercial venture between VLCCs, six Suezmaxes, 16 Aframaxes and 10 In addition, the oil major operates oneOSC, NAVIG8 and VTN, which was formed MR/Handies under management. LNGC for the Northwest Shelf project andin 2010. More are due to follow this year. In addition, another VLCC, two Suezmaxes two LPG carriers. At least six of the VLCCs were thought to and four MRs are on order.have been redelivered from bareboat charter to The company also has interests in drybulkNITC recently, due to the sanctions threat. carriers and a containership. Nordic AmericanBP Shipping(4.3 mill dwt) Tankers (3.12 mill dwt) 25 Again there is no change to In addition, BP Shipping manages four BP’s fleet total. The oil major VLGCs, seven LNGCs, plus another for the 30 At the end of last year,manages four VLCCs, 20 Aframaxes, 17 MRs Northwest Shelf project. NAT took delivery of its 20thand the shuttle tanker Loch Rannoch. Suezmax, bringing the company into Tanker Operator’s Top 30 at No 30. The company has grown rapidly since it signed a bareboat agreement with BP Shipping for three vessels in the 1990s. This contract ended in 2004 allowing the company BP’s Aframax to expand from the three vessels to 20 in just British Kestrel seven years. seen st All of the Suezmaxes are operating on the Coryton, itself the subject of spot market and at the end of last year, NAT ongoing debate established the Orion Tankers pool together over its future. with Frontline on a 50:50 basis. This specialist Suezmax pool started with 29 vessels. As a result, during the fourth quarter of 2011, NAT left the Gemini pool.March 2012 TANKEROperator Annual Review XVII
    • ANNUAL REVIEW - PROFILE A year in the life of Noboru Ueda ClassNK chairman and president, Noboru Ueda, served as IACS chairman from July2010 until June 2011. He became the fourth ClassNK chairman to complete a term as the head of IACS since the association was founded in 1968. or his tenure at the helm of IACS, shipbuilders and IACS were able to come toF Ueda set three important goals - to complete the transition to a more transparent and robust IACSstructure and restate IACS commitment to theEuropean Commission; to make proactive solid understanding and agreement about the challenges we face as an industry. “I think the contributions of the Asian shipbuilders associations, who produce the majority of the world’s vessels, played antechnical contributions to the maritime extremely important part in the meetingindustry and the IMO. reaching a successful conclusion. As a result An immediate result of the transition to a of this success we anticipate that Asianmore transparent and open structure was the shipbuilders will be able to play a more activeadmission of the Croatian Register of role in future meetings of IACS and in theShipping and the Polish Register of Shipping industry as a whole.”as new members on May 3rd and June 3rd lastyear, respectively. Harmonised CSR During the year, ClassNK hosted and Ueda’s term of office was characterisedchaired chairman’s office meetings in Tokyo, particularly by the determination of IACS toLondon, Oslo and Kyoto, the 69th and 70th develop the Harmonised CSR for tankers andgeneral policy group meetings in Tokyo and bulk carriers. Demand for such rules hadSeoul and the 62nd and 63rd IACS council increased following the sinkings of the Erika December 2005 and had been applied tomeetings in London and Kyoto. off France in 1999 and the Prestige off Spain tankers and bulk carriers contracted for At the same time, Ueda took every in late 2002, prompting the IMO to develop construction on or after 1st April, 2006.opportunity to visit and maintain dialogue GBS. Ueda said it was important to realise thatwith the IMO and leading industry IACS began discussions on developing CSR there were two different sets of CSR, one fororganisations, including The International and, in June 2003, agreed to create one set for tankers and one for bulk carriers. While theseChamber of Shipping (ICS) and the Asian tankers and another for bulk carriers. The two sets of rules were developed at the sameShipbuilding Experts Forum. objectives included developing common time, they were developed independently by The immediate legacy of his term as minimum structural requirements for the the joint tanker team and joint bulker teamchairman of IACS was demonstrated recently design and construction of robust ships, rules and, as a result, were based on differentwhen a number of Asian industry groups based on transparent methods and rules technical approaches for such key technicalparticipated in IACS Winter Council Meeting supported by published technical background elements as wave load, fatigue, finite elementin London where, at Ueda’s specific request, documents. IACS also determined to provide method analysis and so on.they joined regular European-based shipowner a rational link between the requirements for “Before IACS completed the current CSR,and shipbuilders’ association participants. newbuildings and ships in service and include it sought feedback from industry, which The outcome was a more active and the IMO’s GBS’ concept. strongly requested that common technicalbalanced exchange of opinion, with all parties In his presentation on the main CSR approaches be incorporated in both sets ofmaking important contributions to discussions concepts and application of the to the China rules,” Ueda told delegates. Even thoughfocusing on the key issues of Goal Based Green Ship Technology conference in IACS managed to partially harmonise theStandards (GBS), Common Structural Rules Shanghai in July 2011, Ueda said the concepts CSR prior to completion, in order to meet the(CSR) and the Energy Efficiency Design underlying the development of the IACS’ CSR demands of industry, IACS committed itself toIndex (EEDI). were to apply a design and fatigue life off not completely harmonising the two sets of CSRs Commenting on the outcome of the meeting less than 25 years in North Atlantic based on a consistent methodology in theand whether Asian groups would continue to environmental conditions; to introduce high future.participate in IACS winter meetings, Ueda level strength assessment for factors, such as “Over this same time period, the IMOsaid: “I think the most important outcome of ultimate hull girder strength and to introduce continued to develop the GBS following thethe meeting was that beyond merely the net scantling concept. The current CSR completion of the CSR. The GBS and relatedexpressing our opinions, shipowners, was adopted by the IACS Council in amendments to the SOLAS convention wereXVIII TANKEROperator Annual Review March 2012
    • ANNUAL REVIEW-PROFILE In its final form, the Harmonised CSR will ultimately consist“ of three parts - a common part for the requirements of both tankers and bulk carriers and then two dedicated parts for the specific requirements of tankers and bulk carriers Noboru Ueda, ClassNK Chairman and president ”finally adopted in May 2010. With the CSR already complied with most of the GBS advisory group and to date, four meetingscompletion of the GBS, IACS decided to requirements. have taken place.make the Harmonised CSR comply with the However, because the CSR were completed It is understood the first draft of the rulesIMO GBS. Unlike the current CSR, which in 2006 and the IMO adopted the GBS in May for review by industry will be released in theconsist of two separate sets of rules for both 2010, the current CSR do not comply middle of 2012, following a consequencetankers and bulkers, the new rules will cover completely with some GBS requirements. The assessment and that the external review willboth types of ships. functional requirements not covered by the begin after this. “In its final form, the Harmonised CSR will current CSR included structural redundancy, “In order to ensure that the externalultimately consist of three parts - a common residual strength after damage, hull dynamic advisory group is balanced between all thepart for the requirements of both tankers and effects on fatigue life, design transparency and different sectors of the industry, as IACSbulk carriers and then two dedicated parts for so on. chairman, I endeavoured to include not onlythe specific requirements of tankers and bulk “In order to meet these requirements, IACS shipowners’ associations but also shipbuilders’carriers,” he explained. will develop new requirements, revise the associations in China, Japan and (South) current requirements or prepare transparent Korea in the membership,” Ueda said. GBS catalyst technical backgrounds and consequence “At some point of time, tankers and bulkUeda pointed out that the development of the assessments as part of the CSR harmonisation carriers will be designed according to theGBS at the IMO had been the catalyst for project,” Ueda said. Harmonised CSR instead of the current CSR.IACS’ decision to include compliance with the “As some requirements under development Although some new requirements will beGBS as part of the harmonisation process. The for compliance with the IMO GBS are quite added to comply with IMO GBS, shipsIMO GBS comprised a hierarchy of five tiers new, it is possible that scantling requirements complying with the current CSR remain- goals, functional requirements, verification may be affected. On the other hand, I expectof conformity, rules and regulations for ship that scantling impacts and consequentialdesign and construction and industry practices impacts on ship operation cost from theand standards. IMO provided Tiers I to III Harmonised CSR will be limited because onewhile the Harmonised CSR came under Tier of the main objectives of the Harmonised CSRIV. is to integrate the two existing approaches for In accordance with the IMO GBS key technical elements.framework, each class society’s rules “I must convey that it is premature toincorporating the Harmonised CSR would predict any scantling impacts from theneed to be compliant with both Tier I and Tier Harmonised CSR. I can advise that IACS hasII of the GBS. This compliance would then be started to conduct consequence assessmentsverified by the IMO as part of Tier III and will provide the industry with theverification of conformity. outcome next year (2012),” Ueda said. With regard to one of the key elements of Under the auspices of the IACS structurethe IMO GBS, Ueda made clear that the for the CSR harmonisation project, 10 teamsfunctional requirements consisted of 15 items working under the direction of the IACS Hullthat were further categorised into four fields - Panel were charged with carrying out thedesign, construction, in service condition and actual harmonisation work concerning waverecycling consideration. The main functional load, buckling, finite element method analysis,requirements for design and fatigue life were etc.to be not less than 25 years under North Noboru Ueda, ClassNK chairman andAtlantic environmental conditions, with which External review president.the current CSR had already complied. With regard to the Harmonised CSR under Although the GBS requirements had not development, IACS’ schedule provides among the best designed ships in the historybeen finalised during the development of the sufficient time for external review prior to of the industry, because the core of the rulesCSR, the current CSR were developed with a finalisation. However, in order to receive will remain similar. Therefore, shipsview to complying with the recently adopted feedback from the industry before this review complying with the current CSR should not beIMO GBS requirements. As such, the current period, IACS has organised a special external considered as sub-standard,” he concluded. TOMarch 2012 TANKEROperator Annual Review XIX
    • ANNUAL REVIEW - PROFILE Witherby changes with the times Part of any shipboard, or onshore function is the collection and dissemination of regulatory, information and training manuals. hese used to come in the shape of appropriate, can be added. Over 600 eBooks and unlock required modules/titles through theTrevolution. voluminous books, only to thankfully change into something more readable with the digital One of the leading providers of both hard and 26 ‘ship type’ modules are currently available for addition to the library and these will be added to over the coming months and years, Witherby explained. Today, the library is recognised normal mechanisms. ‘Seamanship Library’ also allows users access to marine technical eBooks from their PC, laptop, or online via PC, Mac or Tabletback books and digital eBooks is Witherby by the UK Maritime andSeamanship, a specialist publisher of Coastguard Agency (MCA) astechnical, operational and regulatory materials being an electronic equivalent forto the shipping industry. the on board carriage of IMO As the shipping industry has diversified instruments, such as the SOLAS,more fully into distinct sectors, ie MARPOL, LL, COLREG andcontainerships, drybulk carrier, tankers, gas STCW conventions and UKcarriers and others, each with their own Regulations, meaning that thesespecific needs, so Witherby has moved on publications are required to bewith the times with its various offerings. carried on board by the ship’s For example, from 15th February 2012, the Safety Management Systempublisher changed its ‘Seamanship Library (SMS). One of Witherby Seamanship’s best sellers.2012’ catalogue subscription to purchase to a An addition this year, Witherby has device. The huge quantity of referencemore self-selection module system. The introduced the option - ‘Seamanship Library material is fully searchable, saving hours ofdifference is that each module contains a Online’. This is a web based version of the manual browsing allowing the user to findselection of regulatory and technical titles that system suitable for all networks, operating what they want in seconds, the publisherbest fits the user’s ship type. systems and devices. claimed. ‘Seamanship Library 2012’ is now also Users can be kept up to date with Core module available through two of the industry’s information on the latest publications with one‘Seamanship Library 2012’ now consists of a navigational data management systems, easy synch! If users require a new edition –‘core module’ that contains 10 IMO titles that Chartco and Voyager. when they receive an updated version ofapply to all ship types. Once purchased, Users of these systems can have instant ‘Seamanship Library’, they can immediatelyadditional modules, or books, as required, or access to the library and are able to purchase upgrade to the latest edition. TO A potted history Witherby Seamanship has been The company’s early business included the Livingston (Scotland) and run by partners involved in producing, protecting preparation of contracts between merchants Iain Macneil and Kat Heathcote. Macneil and publishing eBooks for more and shipowners, plus the insurance clauses is an ex-seafarer who set up Seamanship than 10 years and it is thought associated with them. Some 272 years later, International to design and develop training that there are over 250,000 the company still supplies insurance clauses and reference materials for the shipping Witherby Seamanship eBooks in to the commercial marine market. industry. Kat, who has a background in the use today. In 2005, Witherbys entered into a joint energy business, including with BP and Books and eBooks are published for OCIMF, venture with Seamanship International, a Wood McKenzie, joined the company in SIGTTO, Skuld, IACS and ITOPF plus Scottish based company that had found a 2004. others. niche in delivering high quality content. The company has customers in over 180 Witherby can trace its history back to 1740 While Seamanship provided content through a different countries and has won a variety of in London, around the time that ‘Lloyd’s range of differing delivery mechanisms and awards. Witherby said that it is looking List’, one of the world’s oldest running media, it had the expertise in electronic forward to celebrating its 275th birthday journals, was first published at Edward publishing. in 2015. Lloyd’s Coffee House. Witherby Publishing Group is based in XX TANKEROperator Annual Review March 2012