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Tanker operator-magazines-march-2012

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Tanker operator-magazines-march-2012

  1. 1. TANKEROperatorMARCH 2012 www.tankeroperator.com Incorporating the TANKEROperator Annual Shipping Review
  2. 2. 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
  3. 3. 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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  5. 5. 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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  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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

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