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TANKEROperator AUGUST/SEPTEMBER 2008
Features: z z z z z z
KGs attract overseas investors Shipmanagement consolidation Hybrid gas carrier Science of tank cleaning Equipment – fit for purpose? Discharge requirements examined
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TANKEROperator Vol 7 No 8 Tanker Operator Magazine Ltd 213 Marsh Wall London E14 9FJ, UK www.tankeroperator.com PUBLISHER/EVENTS/ SUBSCRIPTIONS Karl Jeffery Tel: +44 (0)20 7510 4935 jeffery@thedigitalship.com EDITOR Ian Cochran Tel: +44 (0)20 7510 4933
Contents 04
Markets Sale and leaseback opportunities Spot or timecharter?
10
UKHO profile ENCs will be in place on time
11
German Shipping Review
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Shipmanagement New BSM set up explained InterManager wants pay rise Kristen and the environment GL and Ulysses offer software
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Chartering Cargo contamination in spot light
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Technology 43 Ship description New gas hybrid 47 Gas detection Ensuring it’s fit for purpose 52 Chemical tanker discharge - should be made easier 55 Tank gauging - a new name emerges 57 Tank cleaning - the Achilles Heal?
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SMM Preview This year’s exhibition is set to break records
cochran@tankeroperator.com
ADVERTISING SALES David Jeffries Only Media Ltd Tel: +44 (0)20 8674 9444 djeffries@onlymedia.co.uk PRODUCTION Vivian Chee Tel: +44 (0)20 8995 5540 chee@btconnect.com
SUBSCRIPTION
6 months (4 issues) $142 /Eur110 /£75 1 year (8 issues) $237/Eur185 /£125 2 years (16 issues) $398/Eur310 /£210 Subscription hotline: Tel: +44 (0)20 7510 4935 Fax: +44 (0)20 7510 2344 Email: jeffery@thedigitalship.com Printed by FISCHER Poligrafia ul. Dabrówki 10 40-081 Katowice Poland
KG schemes face lack of bank funding Tanker owners still expanding Germany attracts overseas players GL and DNV expand academies in Hamburg Training centres re-emerge GL and Lindenau research the breaking point Front cover photo
Blenheim Shipping's Aframax Star Lady seen recently at Fos. She is one of four sisters, which the London-based company outsources the technical management to Scinicariello. Another Aframax and two Suezmaxes are currently under construction. The company also owns drybulk carriers.
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August/September 2008
TANKEROperator
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COMMENT
Will SMM be the turning point, or will it be business as usual? The bi-ennual fun of rushing headlong through exhibition halls knocking countless people out of the way to make an appointment is nearly upon us. This, as if it would need any introduction, will shortly be SMM week. "Bigger, better, more visitors, more stands, more halls" - appear on every press release. And indeed, ever since your Editor first attended the show, which was longer then he cares to remember, it has indeed become bigger and better. Fed by the gigantic world orderbook, the equipment suppliers have never had it so good. In fact, the only worry seems to be how to manufacture and deliver that piece of equipment on time and within budget. 'Where will it all end?' the cynics ask. Will the economic situation cause a slowdown in vessel ordering? But, with most yards hanging the 'full up' sign outside until 2011-2012, the suppliers are still sitting pretty. Many have also signed lucrative after sales deals. One manufacturer told TANKEROperator a couple of years ago, that after sales and service etc accounted for more than 50% of the company's turnover. With all the various rules and recommendations from the many regulators on the horizon, the equipment industry will doubtless continue to reap the rewards of retrofitting and installing new equipment on newbuildings - ballast water treatment plants being the prime example just now. Like the Greeks highlighted in our June issue, the Germans have been major investors in new tonnage, but mainly in box ships. However, the various KG funds have now opened up to other types of vessels, including tankers. All is not rosy, however, as in what could turn out to be the shape of things to come, the German banks have almost ceased lending to KG fund investors, leaving the shipping companies who rely on KG type
funding bereft of investment for their projects. Without the proper finance for these projects, the shipyards will slowly run out of orders, which in turn will have a knock-on effect on the equipment suppliers. However, this is the 'worst case' scenario. We do not appear to have reached such a low point thus far, although the money men (and women) are warning of 'doom and gloom' next year. There are many problems facing the shipping industry, most notably operating costs. Most of them if not all will be discussed at SMM and solutions found, but havn't we been talking about similar problems for many years to varying degrees? I admit to being old enough to remember slow steaming in the 1970s and 1980s when the price of fuel rocketed, resulting in the Norwegian Fjords being awash with VLCCs and ULCCs. It was difficult to get finance in those days, due to low earnings, leading to negative equity. At the time, some even blamed to banks for the shipping crisis for being too free with their money and not undertaking proper credit checks. We can't accuse them of that in today's credit crunch aftermath. Two problems stand out above all- the perceived lack of experienced seafarers and the environment. In Germany, positive steps are being taken to recruit and train not only seafarers, but also office staff in the maritime field. Environmental issues are also being addressed, mainly by those seeking to reduce emissions and the polluting of the oceans, although like many things, opinions vary not necessarily for the right reasons. Will we be in time to address these issues for the better of the shipping industry and even more important- for mankind? Time alone will tell. The atmosphere at this year's SMM could be rather strange as on the one hand there is still a state of euphoria over the shipping industry's recent strength and on the other apprehension over what the next year TO or so will bring.
Product tankers in demand It would seem the consolidation bug has struck the product tanker industry yet again. Following relatively closely on TORM/OSG's buyout of OMI, Moller-Maersk has shaken the industry with an agreed bid for Broström. Interestingly, the offer was formally made through a company called Maersk Product Tankers AB, a wholly owned subsidiary of AP Møller - Mærsk. "The scale of the combined operation will enable us to offer a superior worldwide service through a large, modern and homogeneous fleet. We need scale to ensure our organisation is cost effective and for customers to have easy access to chartering offices globally. "Combining Maersk Tankers and Broström's scale with skilled and dedicated employees will further enhance our competitive position and create the world's leading product tanker company", Søren Skou, Maersk Tankers' ceo said when announcing the deal. Until this announcement, the No 1 position in product tankers was held by TORM, following the OMI buyout, but with more than 130 vessels both owned and long term chartered, the new combined operation will claim that title. Maersk also said that the demand for energy transportation was 02
expected to continue to grow, which together with the IMO's phase out of single hull tankers by 2010, underlined the positive business environment for the tanker market. It was in this light that AP Møller - Maersk had previously stated its intention to invest in Maersk Tankers as one of the growth areas within the group. Of course, the regulation authorities will have a look at the deal before it is allowed to go through, but this will probably be a formality. Once it is rubber stamped, Maersk said it would evaluate how the various partnerships and agreements could be integrated into the business structure. One partnership was with Hamburg-based Offen Tankschiffreederei, which was to put eight Hyundai Mipo type 37,000 dwt product tankers into Broström's fleet, adding to the eight already operated by the Gothenburg-based concern. Both companies are in favour of operating in pooling arrangements and this move will no doubt considerably strengthen Maersk Tankers' Handytankers pool. Other pool partners also operate the now standard Hyundai Mipo 37,000 dwt type tankers, most notably another Copenhagen-based operation, Norient Product Pool, managed jointly by Interorient and Norden.
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INDUSTRY - MARKETS
Sale & leaseback as a financial tool in freight & credit markets - part 1
A
By Basil M Karatzas* As anybody in the shipping industry can attest, prices for shipping assets have been experiencing their highest levels in recent memory.
sset appreciation has been more accentuated in the last four years, as Graph 1 depicts for five-yearold tankers - VLCCs, Aframaxes and MRs. The data is provided by the Baltic Exchange Sale & Purchase Assessment Index (BSPA) for which Compass Maritime Services is a panel member. Although the asset appreciation is welcome by shipowners who have had the good fortune and perspicacity to acquire assets in time, there is always the strategic consideration of how the shipowner should be utilising the current state of the markets by unlocking and deploying the capital appreciation and optimally positioning the company for the future. The selective sale of assets (older vintage, lower quality vessels, etc) is one obvious answer. However, for tonnage built in the early 1990's, the consideration is of maintaining control of the (still modern) assets in a strong freight market, and keeping access to tonnage in order to serve strategic accounts (charterers with their own cargoes) and generate operating profits. One such approach of unlocking capital gains that has been successfully employed by several shipowners is the sale & leaseback transaction (SLB), whereas the shipowner sells a vessel (a tanker for the purposes of this article) at today's prevailing market rates and simultaneously taking back the vessel on employment for a certain period of the time. In such transactions, the shipowner frees up
capital which can deployed in any way the owner sees suitable, optimally by placing orders to renew and replace the fleet, while at the same time retaining commercial and operational control of the tanker for a period of time in a robust freight market. In order for such a transaction to become feasible, several parameters are important and negotiable between the shipowner and the lessee, terms such as the period (short term versus long term) and type of employment (bareboat versus timecharter employment), purchase options, if any, and of course the daily rate that the shipowner will be paying to the new owner and lessor. Several other parameters indirectly affect the transaction such as the credit markets and cost of finance (for leveraged leases), type of asset class and assessment of residual risk of the vessel at end of lease, and finally the credit rating of the shipowner (an ex-owner and charterer of the vessel once the transaction has been consummated). What type of financial concerns would be interested in acquiring vessels on such terms? Leasing companies and investment funds that specialise in leases due to tax reasons (they can use depreciation for accounting purposes versus a tax-free shipowner in most cases), for residual value reasons (in a market moving higher vessels can have a market value above book value and thus offer to the financial owner an attractive return on investment), fixed income reasons (low risk, low reward
return) above cost of finance for a credit worthy lessor. From a financial and tax point of view in the US, leases are categorised as either a) Capital or finance leases - long-term leases covering more that 75% of the vessel's economic life, with the present value of the lease rental payments constituting 90% of the vessel's fair market value, and whereas the lessee automatically acquires the asset or has the option to acquire the asset at a bargain price. b) Operating leases - which are all noncapital leases (usually short-term leases where the lessee does not have an interest in the vessel after the termination of the lease). There is also the distinction of 'wet lease' versus 'dry lease' [in the former, the lessor provides crewing (timecharter in shipping terms), in the latter the lessor provides the vessel alone (bareboat charter)]. A couple more leasing terms to keep in mind are the 'net lease' where all costs associated with insurance, taxes, maintenance are paid by the lessee/charterer, and the 'leveraged lease' where the lessor arranges financing through a long-term creditor. Commercial applications Having covered the basic terminology, it's time to turn to the commercial applications of leasing in shipping. When negotiating the terms of a sale &
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INDUSTRY - MARKETS Tanker Asset Prices (5yr-old Vessels) VLCC - 5yr old AFRAMAX - 5yr old MR PRODUCTS TANKER - 5yr old
$180.00 Asset Price (USD mil)
$160.00 $140.00
Save time on cargo operations Save time on cargo operations
$120.00 $100.00 $80.00 $60.00 $40.00 $20.00
16 -S ep -0 3 16 -A pr -0 4 16 -N ov -0 4 16 -J un -0 5 16 -J an -0 6 16 -A ug -0 6 16 -M ar -0 7 16 -O ct -0 7 16 -M ay -0 8
$0.00
Graph 1
leaseback transaction, the purchase price and the daily rate are usually the most contested points. The higher the purchase price the happier the owner/seller, and the higher the daily rate the happier the lessee. While most asset prices in shipping are quoted basis 'prompt, charterfree delivery', in a sale & leaseback transaction the purchase price is some sort of a function of the daily rate. Usually, the higher the purchase price, the higher the required daily rate, all else being equal. In other words, the transaction can take place 'at market levels', 'below market' or 'above market.' An 'at market levels' transaction is when the purchase price of the asset reflects the sale & purchase market on a 'prompt, charter-free delivery' basis, and the daily rate is based on the purchase price. A 'below market' transaction is when the shipowner sells the vessel at below market levels in exchange of a below market daily rate that will allow generation of higher operating profit during the period of the charter. An 'above market' transaction is when the shipowner sells the vessel at above market levels while the daily rate will be higher than otherwise (think of this type of transaction as the owner using the vessel as an ATM machine, whereas the sale allows a few million dollars above market, which of course have to replenished during the period of the charter in the form of higher daily rate). An early generation double-hull Aframax built in 1993-1994 of about 95,000 dwt was contracted back then for about $40 mill. In today's market, 14 years later, such a vessel has a fair market value on a prompt, charter-free basis of about $43 mill. In a sale & leaseback transaction for such vintage vessel based on such purchase price, originated in 2007, the daily rental rate (bareboat charter to the financial owner) was around $15,000 - $16,000 for a decent credit (lowest investment credit) for a five-year term. Assuming the technical management cost of $8,000 per day, the daily vessel operating expense was around $23,000 - $24,000. In today's market, while the purchase price of such vessel is still within the same range, the required daily rate is in the region of $18,000 per day to reflect the tighter credit criteria and higher lending costs in the current financial markets. The daily vessel operating expense based on such a sale & leaseback net quote adds up to about $26,000 - $27,000. In Graph 2, we show the charter rates in the last eight years, on bareboat basis, for an Aframax of such vintage. The data was obtained from Clarkson Research Services on a timecharter basis, and adjusted for the daily operating expense and the utilisation rate to 100%. We have shown the one-year and the three-year firm contract daily rate and the spot rate against the pre- and post-credit crunch average daily rate that would have been secured for a typical transaction. It is no surprise that in the strong freight markets of this period, with the exception of an overall anemic 2002 and a couple more short-lived August/September 2008
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INDUSTRY - MARKETS
Post-Credit Crunch
$80,000 $70,000
1YR BBC Equivalent Daily Rate
$60,000 $50,000
3YR BBC Equivalent Daily Rate
$40,000 $30,000 $20,000
BBC Equivalent Daily Average Spot Rate
$10,000 $0
Pre-Credit Crunch
20 00 -0 1 20 01 -0 1 20 02 -0 1 20 03 -0 1 20 04 -0 1 20 05 -0 1 20 06 -0 1 20 07 -0 1 20 08 -0 1
Daily Rate (Bareboat Basis, USD / d)
Historical Aframax Rates (on bareboat basis)
Graph 2
soft freight market windows, the shipowner/lessee would had the opportunity to trade the vessel profitably on the spot market and on one and three year firm contracts and would had made an operating profit. Of course, the shipowner/lessee would have been exposed to the market risk of either renewing the short-term firm employment contract until fully covering the leaseback term, or risk the spot market. However, in such strong markets
06
conducive to leasing transactions, there was the case in early 2007 when an Aframax tanker of such vintage could be sold to a leasing company, bareboated back for five years and immediately 'flipped' to a third party also for five years (no market exposure) at a small profit ($1,000 - $2,000 per day). For this article, we have primarily focused on early vintage double hull Aframaxes, since they have been offering the best perspectives
for such transactions. A post-2000 built Aframax with a purchase price materially in excess of $60 mill would require a daily rental rate of around $30,000 for five years, which would have made the project unfeasible from an economic/commercial point of view. Of course, the period of the lease can be extended to more than eight years, among other factors, in order to become workable. The term of the lease and the rest of the parameters will be covered in future articles in this series, examining the variables and terms TO affecting a sale & leaseback transaction.
*Basil M Karatzas is managing director for projects & finance with Compass Maritime Services, based in New Jersey, US. He has executed projects in the sale & purchase (S&P) sector of the shipping business and has acted extensively on behalf of operating and financial owners in originating shipping transactions (sale & leaseback transactions, raising equity and debt, advisory services on shipping transactions and vessel arrests). He can be contacted at BKaratzas@CompassMar.com, +201585-9999, or www.CompassMar.com.
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INDUSTRY - MARKETS
Spot or timecharter your asset? The old argument as to whether to opt for long term charters or play the spot market has concentrated some of the finest minds in the shipping industry, usually to no avail.
U
pon analysing many fleets' charter exposure it soon becomes clear that different mixes of spot and period charters are used. The ideal fleet mix will gain the best results if the peaks of both spot and period are taken advantage of. However, traditional market spikes are becoming more uncertain and short term market hikes more common, making the job of shipping planners more complicated and making it more difficult to predict market behaviour at any given time. US consultancy McQuilling Services has
tried to analyse the period charter market. By placing a vessel on period charter an owner will be protected from the current high bunker costs, while at the same time provide a steady income. On the other hand, period charters prevent an owner from maximising potential earnings by taking advantage of a strong spot market and triangulating opportunities. McQuilling said that its analysis showed that the timecharter market is at times driven by the spot market, but is also has its own driving factors. For example, when the spot market is on the rise, the
period market tends to follow and the spot market earnings stimulate an increase in period rates. When the spot market is falling, the period market will only fall to a certain benchmark and it will not sink any further, regardless of what the spot market does. During this phenomenon, the period market rates will remain higher than the weak spot market earning for over a year at a time. McQuilling found that a VLCC fixed for 12 months in December 2006 would have generated higher earnings than if left on the
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INDUSTRY - MARKETS The 12 month MR charter rate has been above $20,000 per day for the past two years according to McQuilling Services.
spot market for the same period. Owners are attracted to the spot market by VLCC rates that could result in over $250,000 per day in TCE earnings. The consultant said that it had noticed spikes in a non-traditional time
admin@marine-service.gi snp@marine-service.gi
08
of the year, which is making the spot market an even more attractive option. If owners are able to take advantage of these spikes, then the spot market would be a much more lucrative proposition than the period market. However, not all owners will have vessels in place at the right time. The decision on whether to opt for the period or spot market is also dependent on financing structure, company policy, market levels, among many other factors. In a simple observation of historical market earnings, some conclusions may be drawn. McQuilling said. For example, in the Suezmax market, earnings have been clearly higher in the spot market compared with the one year timecharter market since January 2005. Furthermore, if triangulated, these vessels earned even more. In the smaller tanker sector, the immediate picture looked somewhat different. In the MR sector, the market had favoured 12 months timecharters for the last two years. However, two observations should be noted - the Singapore/Japan 30,000 tonne lifting drags down the average spot earnings and triangulation was not taken into account, despite being an essential part of MR operation. Notwithstanding this, the 12 months charter rate has been above $20,000 per day for the last two years and thereby provided healthy earnings for most of that period. Turning to longer period, McQuilling said that placing a vessel in a three year or longer charter is becoming even more complex. There were simply too many future unknowns that are almost impossible to predict. For example, the operating costs were expected to increase within the general line of inflation including commodities, labour and administrative costs. However, the cost of the shrinking number of seafarers was forecast to increase at a much higher rate, thus driving the operating costs upward. Even if owners are increasingly trying to regulate escalation costs into their calculations for period charter earnings, future operating costs remain an enigma and therefore diminish the attraction of long term charters, McQuilling warned. TO
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INDUSTRY - UKHO PROFILE
HOs confident of having official ENCs in place Following the official launch of the Admiralty Vector Chart Service (AVCS) earlier this year, the UKHO's chief executive Mike Robinson said that the organisation was “very comfortable� with its progress. "The sales have exceeded our expectations" Robinson said. The UKHO is continuing with its policy of offering three-month trial licensing periods and thus far about 30 vessels had taken advantage of the offer. Feedback has been positive but like any new initiative, there have been some teething troubles requiring some fine tuning of the service. Negotiations are still underway with China and other countries with a view to having as many electronic navigational charts (ENCs) available as possible by the end of this year in a bid to cover most of the world's largest ports (see TANKEROperator, May, page 36). While inconsistencies in chart information are the same whether an ENC or a paper chart is being used, in the case of ENCs it becomes much more apparent to the mariner because on ECDIS adjacent ENCs are displayed together on screen, whereas paper charts are normally used one at a time. The problem is highlighted where ENCs overlap due to sensitive political boundary type issues, this affects ENCs in a number of areas around the world, although its impact on the mariner depends to some extent on which ECDIS is fitted. Another difficulty in producing a truly harmonised ENC dataset is that underlying hydrographic data could have come from surveys of different eras resulting in discontinuities at survey boundaries especially where there is a mobile seabed. The UKHO said that it is determined to reduce the problems that inconsistency causes the mariner by working closely with other hydrographic offices (HOs) and by appropriate application of its compilation expertise. The organisation stated that the ENCs had to be at least as good as the paper charts currently used, "Users have come to expect accurate data from the UKHO", Robinson said. The UKHO is working with other (HOs) to ensure that the information issued by the Taunton-based organisation meets rigorous standards for accuracy and provides the mariner with the most appropriate navigational picture. Regarding the recent IMO NAV54 recommendations; a consensus was reached on a mandatory carriage requirement for ECDIS starting in 2012; this will be put to the next Maritime Safety Committee (MSC) meeting. 10
The HOs believe they will have adequate ENC coverage and consistency by 2010 and that pricing levels will have reduced by then. Extra training within STCW will be needed to ensure that all navigators have the necessary skills to use ECDIS safely and effectively. The NAV54 recommendations were based around papers submitted by Norway and the UK. After much debate it was agreed tankers of over 3,000 gt and passenger vessels of over 500 gt would be the first ship types to be fitted with ECDIS starting in 2012 for new hulls, with cargo vessels of over 3000 gt following in 2013. If these recommendations, which include retrofitting of existing tonnage by 2018, are adopted by MSC then this would mean around 60% take up of ECDIS across the board, Robinson thought. "ECDIS is the best method of navigation going forward. The starting gun was fired at NAV54," he added. The onus is now on HOs to produce the ENCs and ECDIS manufacturers to produce the systems. The UKHO is also looking to add layers to the ENCs so that other information that could be integrated into an ECDIS to support activities, such as passage planning and voyage execution. Digitising information, rather than relying on the paper format would provide greater flexibility in use of the data and was therefore the ultimate goal, the organisation said. Second phase The UKHO is in what it called a second phase of discussions with OEMs regarding the implementation of its plans. Given the lead times necessary it is hoped to be able to demonstrate 'front of bridge' operation sometime next year. Also under discussion at the IMO was ENavigation. This new concept could mean the provision of totally integrated services, including digitised port information running on the navigators' and masters' workstations and aimed at 'front end navigation'. One thing is certain, that when the use of ECDIS becomes mandatory in 2012 or later, depending on its adoption and ratification period, ENCs will have to be provided by Government approved HOs, so quite where this leaves the commercial vector data producers is not yet clear. However, the capacity to produce ENCs could be a problem in the near future for some nations, and so the UK, along with other states involved in hydrographic work, is offering assistance and training in producing ENCs, working through bi-lateral agreements and
UKHO ceo Mike Robinson.
sharing technical experience. Nations that are signatories to the SOLAS convention are obliged to ensure provision of hydrographic services and when ECDIS is mandatory this will include ENCs. The International Hydrographic Organisation (IHO) encourages all states, which have navigable waters to recognise this responsibility. Nations can meet their obligations either by developing their own capability, or through agreement with another state to provide these services on their behalf. The IHO said recently that its goal was to improve the level of hydrographic services throughout the world by capacity building, a theme supported by the UKHO. The IHO defined three phases in the development of a national hydrographic capability as the core to this strategy. 1) Focus on the need to recognise their national responsibilities for the provision of hydrographic services and to initiate the collection and dissemination of marine safety information. The first stage is essential in order to maintain existing charts and publications to enable safe navigation. 2) The provision of advice and training assistance to support the creation of basic hydrographic surveying capability. 3) Support further development of a national hydrographic service, including such capabilities as paper chart production, ENCs and nautical publications. Underpinning the IHO initiative is a four-step process - awareness, assessment, analysis and action. The organisation said that by proceeding in such a co-ordinated manner, the capacity building strategy will over time help HOs worldwide to develop appropriate levels of hydrographic capability. TO
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INDUSTRY - FOCUS ON GERMANY
Focus on Germany Banks pull the plug on KG funding
G
ermany's seemingly insatiable appetite for newbuildings continues, especially in the more traditional German liner sector. Despite spiralling newbuilding costs, the interest continues to be fuelled by the 'KG' fund schemes, whose liquidity shows no sign of abating. However, the more traditional German finance houses will no longer look at speculative deals, but rather seek a shipping project with a charter attached for cash flow reasons resulting in some of the KG fund investors finding finance harder to come by. During the past few years, the KG fund managers have looked at other projects away from the traditional containerships and have recently endorsed almost all types of tankers, including gas carriers; offshore support vessels and even a drilling rig. This has attracted more oversees players to Germany, either in joint ventures with established German players, or by setting up shop on their own. To take advantage of KG type finance, a company must have an operational base in Germany and more contentiously, if the German flag is being considered, then the August/September 2008
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vessel owner/operator must employ a master who is fluent in German marine law. A successful German tonnage tax regime was introduced in 1999 and to keep it going for the foreseeable future, the authorities have asked that German-based owners ensure that 500 vessels will be under the German flag by the end of this year. This means an extra 70100 ships will need to register in the coming months, a fact not lost on the German Shipowners Association (VDR), or its members. The attraction of Germany and in particular Hamburg, as well as other centres, such as Leer and Bremen, is that maritime clusters have been built up that clearly work. According to figures produced by the Hamburg Metropolitan Region, in Germany there are 440 shipping companies operating around 3,300 vessels totalling around 67 mill gt. Of the owning companies, more than 200 are based in the Hamburg area. There are also many overseas company subsidiaries located in the German coastal cities. Within the next three years, according to figures produced by the VDR, there will be another 1,300 vessels delivered into the
TANKEROperator
German-controlled fleet, which will put a strain on crewing resources and training. At a recent German Maritime Conference a decision was made to support the nautical training locations in the coastal states by expanding their capacity. Greek interests One example of an overseas concern setting up shop in Hamburg is Hellespont. The leading Greek-based tanker owner and manager relocated part of its operations, including the shipmanagement to Hamburg in a joint venture to take advantage of the KG finance system. As a result, Hellespont Hammonia GmbH & Co KG was formed, which is 50% owned by Hellespont, 25% by shipowner Peter Doehle and 25% by KG emission house HCI Capital. Apart from full day-to-day shipmanagement, the Hamburg office is responsible for manning, insurance, repair & maintenance, purchasing, operations, husbandry, accounting and chartering. Since the German arm first commenced operations out of Peter Doehle's offices, 11
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INDUSTRY - FOCUS ON GERMANY Hellespont ceo Christian Freiherr von Oldershausen receives a commemorative plaque from Father Apostolos on the occasion of the blessing of Hellespont’s new Hamburg premises.
Hellespont has built up a considerable presence, both in terms of ships and of people. Today, the company has six crude tankers (five Suezmaxes and one Aframax), six LR1 coated product tankers and three recently purchased IMO II chemical tankers. Not stopping there, the company ordered another eight IMO II chemical tankers and six platform supply vessels for delivery between the end of this year and the middle of 2010. All have been ordered through KG financing schemes. The company's ceo Christian Freiherr von Oldershausen said that Hellespont had earmarked its eight 17,000 dwt IMO II epoxy coated newbuilding chemical carriers for a pool operation. "It (a pool) creates a certain stability of earnings and the KG fund investors now understand this concept," he said. Despite the 'credit crunch', von Oldershausen said that there was still an appetite among investors for shipping projects, but the trick was to find the right project. "Investors’ appetite for shipping equity has not diminished. The problem is finding a project that yields an acceptable return as newbuilding prices have gone up tremendously," von Oldershausen said. The escalating cost of newbuildings has squeezed margins. In addition, the German finance houses that lend to the KG investors have become more discerning as have the investors themselves. From Hamburg, Hellespont technically manages all of the fleet under new managing director Captain Matthias Imrecke. Captain Andrew Lidgard was also recently recruited to manage the offshore fleet, also operating out of the Hamburg office. For crewing purposes, Hellespont has a small stake in Manila 12
Shipmanagement & Manning Inc. Hellespont hopes to employ its first cadets in August of this year as due to the number of newbuildings, the company needed to grow its seafarer pool. The company is already achieving 92-93% seafarer retention and claimed to have a large officer pool. The company recently moved out of partner Peter Doehle's offices on the Elbchaussee to a more central location as more space was needed. Another reason was to be near the major banks, broking houses, laywers etc that abound in the centre of Hamburg, von Oldershausen explained. To cope with the fleet expansion, four teams have been set up in the office to look after the crude, product, chemical and offshore sectors. Von Oldershausen admitted that the chemical carriers required more attention due to their specialist nature. A dedicated health and safety officer will be appointed soon. Around the same time that Imrecke was recruited to head up the technical management team, former head Spyros Vlassopoulos who had spearheaded Hellespont's start in Germany went back to Piraeus to take charge of the company's commercial activities, to strengthen
the relationship with charterers and subcharterers. As for the current fleet, two of the three 13,100 dwt chemical tankers in the fleet are working the spot market, while the third is long term chartered to Vitol trading in Asia. Von Oldershausen described the chemical carrier market as "disappointing" in the first quarter of this year. However, it picked up slightly in the 2Q08. He expected a "rough period" until the end of next year when, "…..in line with expectations of market participants things should pick up again. In the meantime there are a lot of newbuildings coming on stream," he said. The six Panamax LR1s are timechartered to Sanko for seven years and are operating in the product market sector. Four of the five Suezmaxes and the Aframax are also long term chartered to the Japanese operator. The remaining Suezmax -Hellespont Trust is chartered to Heidmar and is operating in its Suezmax tanker pool. Sister Hellespont Trader is also operating in Heidmar's Suezmax pool having been sub-let from Sanko.
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“Investors’ appetite for shipping equity has not diminished. The problem is finding a project that yields an acceptable return as newbuilding prices have gone up tremendously.”
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Christian Freiherr von Oldershausen, CEO, Hellespont Hammonia GmbH & Co KG
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INDUSTRY - FOCUS ON GERMANY Although not ruling out the use of the German flag for some of the vessels in the near future, von Oldershausen explained that if the three 13,100 dwt chemical tankers were put under the national flag, then the company would need to employ around 15 German officers, which in today's climate would be extremely difficult. Dutch interests Last year, Amsterdam-based Seaarland Shipping Management expanded its growing global network into Germany by setting up a joint venture with Hamburg-based TB Marine-Hamburg GmbH. The same year, Seaarland and TB and Partners' jointly ordered four IMO II shallow draft 29,000 dwt product carriers, plus two coated LR1s from China's Zhejiang Hongguan Shipbuilding for delivery in 2011 and the latter from New Century Shipbuilding for delivery August and September 2008. To manage the ships and to provide access to the German equity market in July last year, Seaarland and TB Marine set up Seaarland Shipmanagement (Hamburg) GmbH & Co KG, which now operates under the watchful eyes of managing directors Andreas Sand and Claus Bethke.
The joint venture originally started with the delivery of a secondhand handysize IMO III product tanker - 36,000 dwt Alia - on 19th December 2007 while three more handysize tankers were purchased from Teekay for delivery this year, plus a newbuilding, which is due for delivery next January. These were the first vessel to be technically managed from Hamburg by Seaarland. At the time of the agreement, Seaarland's head Antonio Zacchello said; "We now have a strong foothold in the Mediterranean, in North Europe in both Amsterdam and Hamburg, and in Asia, through our Singapore and Indian companies. This German initiative with strong partners follows our strategic growth plan, always working with good partners to maximise our mutual strengths and deliver to our charterers the powerful combination of a global shipping company with strong local knowledge." TB Marine-Hamburg GmbH was founded on 1st July 2005 by Stephan Bracker and Steffen Thate to initiate, finance, own and manage newbuildings and secondhand ships for both private and public investors in the German KG market. It has strong relations with Chinese shipyards and a Chinese investment group via
Aquarius Marine Consulting (AMC), Hamburg. Thorsten Schablinski, sole partner and managing director of AMC, provides technical consultancy, plan approval and newbuilding supervision for TB's projects. TB Marine and its partners now have 30 tanker newbuildings on order. In a recent investor presentation, TB Marine said that vessel Nos 1-24 will be employed under long term charters and pool arrangements with leading European pool operators in the size range of up to 20,000 dwt. For example, eight of the Ice Class 1A chemical/product newbuildings were fixed long term to Maersk Tankers and another eight to the Clipper Group. The final eight in the 16,500 dwt19,000 dwt range are intended to go into the Swift Tankers pool. Four 29,000 dwt tankers will join the Handytankers pool while two LR1s are also on order and will join the Global Tanker Pool. Other vessels planned include three 92,500 dwt bulk carriers and the latest venture involving the financing of eight vehicle carriers (PCTS), which are being built for Laeisz management. Amsterdam-based Seaarland Shipping Management is a commercial shipmanagement company and part of the
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Zacchello Group Profile Zacchello's shipping interests originated in 1948 when Antonio Zacchello and some partners purchased a 10,700 dwt 'Liberty' ship - Rialto. He subsequently bought his partners out and continued to build his shipping empire on his own. Today, this consists of Seaarland Shipping Management BV (Amsterdam), Motia Compagnia di Navigazione SpA (Venice), Seaarland Shipmanagement (Hamburg) GmbH & Co KG, Seaarland Management Services (Singapore) Pte Ltd, Seaarland Management Services Pvt (India) and Seaarland Management Services (Geneva) SA. Basically, the companies' operations are split as follows: Seaarland Shipping Management (Amsterdam) acts as commercial manager of the ships owned by the group's Dutch companies and for the third party owned vessels. Seaarland Management Services (Singapore) is responsible for the day-today operations east of Suez. The office is growing as Zacchello puts more emphasis on the developing Persian Gulf/Asian markets. Motia carries out commercial and technical management for its owned vessels and is responsible for the technical management of the vessels owned by the Dutch-based companies, as
Zacchello Group, which also includes Venicebased Motia Compagnia di Navigazione, as one of the shipowning arms and the technical management arm for the group's fleet. The group controls a fleet of 25 modern product and Aframax tankers with 15 newbuildings to come, plus three Panamax bulkers with another seven Panamaxes and minicapes to come. At the end of its newbuilding programme, the Zacchello Group will control about 85 ships, including a fleet of 30 medium to longterm timechartered ships. In addition, the group has a 50% ownership of 10 Naplesbased SynerGas Ethylene/LPG carriers and has offices in Venice, Naples, Amsterdam, Singapore and Hamburg. TB Marine's Steffen Thate told TANKEROperator that initially, the joint venture was set up to focus on newbuilding 14
well as third party owned vessels. Seaarland Management Services Pvt is responsible for the group's Indian seagoing crew requirements. Seaarland Shipmanagement (Hamburg) is jointly owned with TB Marine-Hamburg and manages the co-owned vessels with German investors and provides a gateway to the major German market. Seaarland Management Services (Geneva) is responsible for advisory and the execution of FFAs on behalf of the group and its clients. Seaarland Hamburg will handle an additional 24 product/chemical tankers in the range 16,500 dwt to 19,000 dwt, which together with four out of eight car carriers, have been financed by German investors. Venice-based Motia has 12 vessels under full management and expects to take delivery of another four newbuildings. Motia also operates four ships on timecharter. Technical management of the whole Zacchello group is handled by Motia and Seaarland Hamburg. As at June of this year, the total number of vessels controlled by Seaarland and Motia was 116. These include 62 currently in operation, 37 newbuildings and 17 timechartered vessels yet to be delivered. Zacchello has placed some of the vessels in pools, such as Suezmax International, Aframax International, Handytankers and Baumarine. Other vessels are timechartered
projects. During the past three years, TB Marine has been responsible for 42 newbuildings and four secondhand vessels and has built up a pool of private investors within the KG scheme. The loan facilities have been arranged through the world's largest ship financing bank HSH Nordbank and also with Deutsche Bank, Hamburg and Norddeutsche Landesbank, based in Hannover. "We are now benefiting from the Seaarland handysize, Aframax, LR1 and Suezmax tanker pools, which in turn benefit from the German market, including the KG funding schemes," Thate said. TB Marine/Seaarland Shipmanagement gained its ISM certificate from ABS in October 2007 and now employs around 25 persons in Hamburg. Thate explained that Seaarland has a global network of crewing outlets.
Antonio Zacchello.
to operators such as Trafigura, STX Pan Ocean, TotalFinaElf (Italia), ST Shipping, ENI, Cargill and Armada. The group also operates on the spot market. The group also holds a 50% stake in Synergas SrL through a Dutch concern called Julia Finance, which was set up specifically for this purpose. The other 50% is owned by Ca.Fi.Ma, the holding company of the Cafiero Mattioli Group. Synergas was formed in November 2005 to purchase the fleet of 10 LPG carriers of 4,000 cu m to 9,000 cu m capacity from Navigazione Montanari, which was duly completed a month later.
As for the future, "By about 2011, we will have around 35 chemical/product tankers under full management owned by Zacchello and his partners," Thate said. It is Thate's intention to put around three to five vessels under the German flag while another 10 are flying the Italian flag under Motia's control. Other major flag states have also set up shop in Hamburg, including Liberia and the Marshall Islands, which employ German speaking auditors and surveyors. Oil majors are being focused on by the group as there is more external control being exercised today through various schemes, most notably TMSA. Frequent safety, security and other meetings are held between TB Marine, Seaarland and the pool/charterers. Thate said that the company was also co-operating very closely with ABS.
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INDUSTRY - FOCUS ON GERMANY As for AMC, this concern offers third party technical newbuilding supervision and only puts its own people in the shipyards, rather than relying on third party newbuilding surveyors. For example, ACM newbuilding standby chief engineers will move into the office as engineer superintendents, once the newbuilding supervision period has ended. Seaarland Shipmanagement only employs ex seafarers and a cadet scheme is run in a joint venture with ASP Ship Management Scandinavia based in Mariehamn, Finland. KG expertise The German KG (Kommanditgesellschaft) equity syndicating system is perhaps not suffering as badly as other forms of raising finance in today's economic gloom and doom. Whereas some would be investors in shipping equity will still rely on the debt financing to purchase shares in vessels, other private shareholders do not. KGs were originally designed to help the German shipyards and shipping industry. A general partner (GmbH) is usually required. Individuals participate with fixed equity
portions on a non-recourse basis. To qualify for syndication, vessels must in compliance with international class society standards, while both the commercial and technical management of the vessels must be undertaken in Germany and the vessels must be registered in Germany, although an internationally accepted flag is also possible. Once the domain of smaller container and multipurpose vessels, all types are now being considered providing they have a long term timecharter attached, but not a bareboat, or demise charter contract. The change in the German tonnage tax of 1st January 2007, bought no substantial difference to equity finance deals. Basically, the tax is based on the gt of a vessel and not the profit/loss performance (see page 18). However, Tobias Koenig founder of Koenig & Cie GmbH said that the syndication market, which is most important in Germany for larger projects, is almost totally disrupted by the current financial crisis. "The KG funds are not lenders. They are syndicating equity and combine it with debt financing to buy ships, which they operate and charter out," he explained.
Koenig said that despite this, the company had managed to realise new products. He criticised HSH Nordbank, the world's largest ship financier, saying that the default rate in the vessel mortgage loan sector is zero per cent. "Their caution with the granting of loans does not always seem reasonable to us," he said. Koenig was founded in 1999 and in 2006 established Marenave Schiffahrts with HSH Nordbank. It is claimed to be the first German shipping trust set up legally as a public listed company. The objective was to provide institutional investors with the possibility of investing in the shipping market on a long term basis, creating a new asset class for better investment portfolio diversification. He said the most KG investors were experienced and many of them invest 'anticyclically' and "...were in it for the long run." Due to their cyclical nature, the volatile markets have led to diversification being highly valued. For example, besides shipping, Koenig is now established in real estate, private equity, renewable energy, secondary market of UK life insurance policies and infrastructure.
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INDUSTRY - FOCUS ON GERMANY A joint venture - Scorship - was also formed with Monaco-based Scorpio, which is involved in the running of two tanker pools, in which Koenig is participating. "To have a joint venture, such as Scorship, seemed to be logical as Scorpio was seeking access to the German market and we had been looking for a partner to invest in Panamax tankers," Koenig explained. "Therefore, our Panamax and handymax product tankers had been managed by Scorpio Ship Management, Monaco. Later on Scorship Tankers GmbH was formed by the two partners, which has now taken up the management of these vessels," he said. "There is a lot of interest outside Germany to find a local partner. And this is the reason others have formed partnerships and will probably continue to do so in the future," he added. Last June, Scorship Tankers GmbH christened two further double hull tankers at New Times Shipbuilding, located on the Yangtze River. The tankers were the last two in a series of six sister ships. They were christened King Daniel and King Douglas. The latter was handed over to the charterer ST Shipping and Transport, Singapore and King Daniel will be delivered in September. The six double hull crude oil/product tankers were ordered in 2005 for delivery in 2007 and 2008. They were Panamax class LR1 product tankers. The last two both make up the Product Tanker Fund IV, which had been open to
Koenig & Cie investors since the end of March 2008. The fund concept is a combination of fixed charter and pool earnings, with one vessel benefiting from the stability of the former and the other vessel from the variable earnings of the latter (this vessel will be deployed in a leading tanker pool). Koenig uses what it perceives as the best partners available to technically manage the vessels, for example, Columbia Shipmanagement (CSM), Thien & Heyenga and V Ships. For example, all of the Marenave vessels are managed by CSM Hamburg. The issuing house invests in containerships, bulk carriers and product tankers. But thus far the different ship types have not been included in one fund. For tankers, Koenig thought that initially, this had proved more difficult. However, today Koenig & Cie is a successful tanker company with‌."an unparalleled network in the tanker markets. We offer investment opportunities that are hard to match, which is giving us a competitive advantage over other German issuing houses," Koenig concluded. In another move, Jens Mahnke recently joined Koenig & Cie GmbH as a managing partner to take on responsibility for all shipping matters. Prior to this, Mahnke worked with the Nordcapital Group, where he was managing partner for shipping project development for the last six years. From 1st June, the shareholder structure of
Koenig & Cie GmbH was Tobias Koenig holding 86%, Klaus Fickert and JĂśrn Meyer each holding 5% and Johannes BitterSuermann and Jens Mahnke each holding 2%. Since TANKEROperator's visit, Scorpio Tankers GmbH & Co KG and Scorpio Shipping Company, Monaco have said that they are set to broaden the business scope and as a result have been renamed Scorship Navigation. As part of the expansion plan, the company will soon manage drybulk carriers as well as tankers. Jens Mahnke was named ceo on 1st August. Essberger expands John T Essberger is expanding its tanker fleet by ordering a series of newbuildings from China and Turkey. The company has also extended its shipmanagement portfolio by winning a management contract for a series of Swedish product tankers newbuildings. The Chinese order involves two 8,500 dwt Ice Class 1A chemical tankers fitted with 16 stainless steel tanks, plus another two options. The first vessel will be delivered at the end of 2010 and the second in February 2011. Essberger chose Dingheng (Jiangsu) Shipbuilding, which Captain Stefan Buelow, managing director John T. Essberger Ship Management described to TANKEROperator as a new yard specialising in LPG and chemical tankers. The vessels will be built in co-operation with the Dutch-based Volharding Shipyards and were designed by a Norwegian concern. They will be powered by MAN
The 5,771 dwt chemical tanker Georg Essberger seen in the Kiel Canal.
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INDUSTRY - FOCUS ON GERMANY medium speed common rail engines from the manufacturer's Augsburg works. Earlier, Essberger had selected the new Turkish shipyard of Eregli to construct an 8,400 dwt and three 5,300 dwt vessels. The larger vessel is an IMO II type 124 m long, oil and chemical tanker fitted with MarineLine coated tanks. Construction began on 26th November last year under the supervision of Essberger and Bureau Veritas and the vessel is due to be delivered in January 2009. The three Ice Class 1A 5,300 dwt tankers will be fitted with stainless steel cargo tanks and all will feature MAN prime movers. They are due for delivery in September, December 2009 and April 2010 respectively. As for the management contracts, these were for Svithoid Tankers' three 3,400 dwt and two 4,500 dwt tankers. Essberger inspectors travelled to an Estonian shipyard in Tallinn to take over the first vessel for Svithoid. One 3,400 dwt tanker - Vedrey Thor - was chartered to Fisher Everard, while the larger units will operate for Herning under a long term charter. Buelow explained that Essberger's philosophy was to continue to operate specialist tankers of up to 10,000 dwt in partnership with the oil and chemical majors on a mixture of timecharter and spot business basis. The vessels normally operate in northern Europe, Baltic and Mediterranean/Black Sea regions. In 2004, Essberger bought Dutch chemical tanker operator Broere from the Vopak group and formed the Broere/Essberger chemical tanker pool. In April of this year, the operation was brought under the banner of Essberger Tankers. The new vessels and all Essberger vessels will be gradually renamed taking the Essberger suffix. At the beginning of this year, Hugo Finlay was recruited to run Essberger Tankers as managing director. He has had more than 40 years' experience in the tanker business having been employed at senior level by Stolt Nielsen and Jo Tankers among others. At present, the fleet flies the Dutch flag (Broere vessels), German and Madeira flags - the latter as a European flag. As for seafarer training, Essberger uses various establishments in Poland, China, the Philippines and in-house seminars are regularly held. On board training will be continued, Buelow said. The company employs European masters on its tankers, mainly from Holland, Germany, Poland and the Baltic States. The seafarers are employed on a two month on, two month off rotation, which helps to ensure a good retention rate, Buelow believed. Being a family owned company, it was easier to bring the seafarers into a family type working atmosphere, he thought. In Europe, Essberger has its own crewing agency in Gdynia, while in Singapore, the company owns the crewing agency -Transocean Ship Management and has a partnership in a Manila-based training centre, which is equipped with modern simulators, including bridges. These can be attached to engine control rooms and a small engine. The Asian facilities are mainly used for the bulk and cement carriers managed by Essberger, as well as for ratings on tankers (Filipinos). Essberger has set up a safety and vetting department in Hamburg and Buelow said that he was "quite happy" with the TMSA audits. Similar to the vessels, Essberger has bought the shipmanagement activities closer to home by dispensing with the old shipmanagement company Transocean to better reflect the Essberger brand. Buelow explained that the shipmanagement arm will only look at third party management business for special projects, such as newbuildings. It was not Essberger's intention to become a fully fledged third party shipmanagement concern. He is an active member of BIMCO, IPTA, the VDR and sits on the
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INDUSTRY - FOCUS ON GERMANY One of the Lindenau class 32,000 dwt product tankers, managed by German Tanker Shipping.
technical advisory board of Germanischer Lloyd. Explaining this involvement, he said; "It is vital to be in the front line with all the rules coming up. We have to join together to present a good image and have to be proactive. We cannot just lean back and forget about what is happening. Everybody has to participate. If something comes up, don't fight it, but discuss it, otherwise we will loose credibility," he added. To ensure adequate repair and maintenance is carried out, Essberger has a repair shop in Dordrecht, Holland, which came with the Broere buyout. The company also uses the Hamburg shipyard Norderwerft among others for its tanker fleet. Buelow said that he did not believe in outsourcing too many activities, but rather keep them in-house to better monitor costs.
GTS opts for Lindenau tankers Another major German tanker player is Bremen-based German Tanker Shipping (GTS), which now controls 12 product tankers averaging 3.5 years old with one newbuilding still to come. Eight of the earlier product tankers are of the Kiel-based Lindenau 32,000 dwt class, while the newer four are of 40,600 dwt. Another vessel due for delivery in March of next year will be slightly larger at 43,000 dwt, but still built to the Lindenau design. All the vessels were built by Lindenau Shipyard. Ten are in the KG system while the other two are wholly-financed by the company. All the activities connected with the ships are handled in-house by just 18 people. The vessels fly the German flag and are
classed by GL. Managing partner Frank Jungmann described the flag as "of very good quality", but said the process of registration could do with improvement as at present several different authorities become involved. "We need a central department in Germany for registration and a simple, efficient administration," he said. Other German companies spoken with by TANKEROperator voiced the same opinion. Being under the German flag, all GTS' officers are German, while the ratings are from the Philippines. Jungmann agreed with other German owners requiring German officers that for the future, the pot was empty. GTS' vessels normally trade in the spot market, however, there a few charters
German tonnage tax explained Introduced in 1999, the German tonnage tax scheme has been by and large welcomed by the German shipping community. So much so, that moves are afoot to reach the target of 500 vessels under the German flag by the end of this year, otherwise it could be scrapped or amended, according to the German authorities. If the target is reached then the tonnage tax stays in place for the foreseeable future, and all the signs are that this will happen as the German shipowners interviewed by TANKEROperator were considering putting at least some of their vessels under German flag. Basically, the scheme allows companies to elect to have their taxable profits from 18
shipping activities determined at fixed rates with reference to their ship sizes for 10 years at a time, hence the call for more tonnage by the beginning of next year to start the next decade of fixed rates. Graduated Tariff Up to 1,000 nt = Eur0.92 per 100 nt per day 1,000 - 10,000 nt = Eur0.69 per 100 nt per day 10,000 - 25,000 nt = Eur0.46 per nt per day More than 25,000 nt = Eur0.23 per nt per day As an example given by the Hamburg Metropolitan Region, a graduated tariff is imposed on the net tonnes, which is then
multiplied by the number of days a vessel is in operation. In the case of a 40,000 nt vessel, the calculation is based on an assumed profit of Eur174.80 per day. For 365 days of operation, this is calculated at Eur63,802, on the basis of which taxes will be charged independently of the actual annual profit. Assuming the equity capital totals Eur21.6 mill, the calculated profit is 0.3% of the equity capital per annum, which is claimed to be of minor relevance. In accordance with the current Income Tax Act, the amount - assuming that the economic development of the vessel operations will be positive - indicates a largely tax free capital gain. „
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GERMAN TANKER SHIPPING
German Tanker Shipping GmbH & Co. KG Hans-Bรถckler-Str. 50 28217 Bremen Phone +49 421 387638 Fax
+49 421 3876390
e-mail info@german-tanker.de
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INDUSTRY - FOCUS ON GERMANY concluded on coa terms. The company was formed in 1998 by former Carl Buettner executives. It originally owned seven vessels up to about 23,000 dwt, but has since concentrated on the larger size ranges, leaving Buettner to compete in the smaller market sector. The six 24,000 dwt tankers built in Croatia are today Buettner's largest vessels. Jungmann described the 40,000 dwt to 43,000 dwt size as being in the middle of the South Korean designed 37,000 dwt and 47,000 dwt types with good draught capabilities of about 11 m on maximum dwt cargo capacity (dwcc). The Lindenau-built vessels are fitted with MAN Diesel 4-stroke 8-cylinder medium speed diesel engines from the manufacturer's Augsburg works connected to a CP propeller through a reduction gear. Becker rudders have also been fitted on the larger vessels for extra manoeuvrability. Being fitted with the same engines results in continuity of spares enabling the use of the same maintenance and other systems used across the entire fleet.
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Classed with GL, the vessels are Ice Class E3, or E2, equivalent to Finnish/Swedish Ice Class 1A, or 2A. Eight are 1A and the other four have the E2 (2A) notation. Today GTS operates with six partners and two managing partners. Jungmann explained that the company's policy is to operate the vessels in Europe or transatlantic and sell them when they reach their second or third surveys (10-15 years old). "They will still be in excellent condition," he said. When operating in Europe, the average voyage time is only around 4.5 days, including loading and discharge operations. The normal economic service speed is 13.5 knots, although the vessels can steam at 15.5 knots if needed. They each carry 18 crew on board. As for the pumping systems, the smaller vessels have been fitted with Framo Deepwell hydraulic pump systems, while the larger vessels have Hamworthy Svanehoj electro-pump systems fitted. Each tank is coated and the vessels are fitted with cargo heating systems.
Offen up and running The first four of CP Offen's eight Hyundai Mipo 37,000 dwt MRs have recently joined Broström's fleet. Ordered and technically managed by recently formed Offen subsidiary CP Offen Tankschiffreederei, the eight will be commercially managed by Bröstrom following the signing of a long term partnership agreement with the Hamburg-based company last year. Before the first four were delivered, Broström was already operating eight 37,000 dwt MRs in the European market transporting refined petroleum oil products. All the new vessels were scheduled for delivery by the end of this year from South Korea. The first four picked up a cargo of vegetable oil from Asia to reposition to Europe. They will all fly the UK flag. *Since this update, it has been announced that Broström is to be taken over by Maersk. Where this leaves CP Offen Tankschiffreederei’s joint venture agreement is thus far unknown (see page 2). TO
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GL academies prove successful Last year, Germanischer Lloyd (GL) held 276 seminars worldwide, attracting 4,086 participants, compared with 220 in 2006, which pulled in 3,950 people.
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L has developed what it calls a 'Modular System for Further Education in Shipping', which is split into 11 distinct subjects. Both public and private seminars are held, and tailor-made in-house tutorials are also offered. GL Academy's Susanne Schreeck told TANKEROperator that it was not the intention to compete with seafarer training schools or universities, but rather join forces if possible. Seminars and tutorials are held worldwide in English, although local languages can also be used, for example to train surveyors in overseas locations. Most maritime subjects are covered, from basic shipping knowledge to high technology, including a series aimed at 'training the trainers'. The UAE and India are areas of obvious potential, GL said. An academy will be opened in Dubai this October, which will be used by the other Gulf States and the class society is also in talks with Dubai Maritime City about a co-operative partnership. Another partnership is also in place with the Indian Institute of Marine Engineers based in Mumbai. Other co-operative training ventures are
“
based in countries such as Vietnam and earlier this year, GL recently opened GL Academy Hellas, which is run from Piraeus. The class society is also one of 12 partners in the soon to be opened MTC Maritime Training Center Hamburg (see page 23). GL has found that the more popular seminars are the ones that cover general topics, such as basic shipping and technology, for example for bank staff involved in the maritime sector. Some of the courses will include exercises involving individual and group work and interactive sessions. "We do not only show overheads," Schreeck explained. One of the more specific training courses covers the 'Certified Coating Inspector'. This course will be held between 16-22 November and is already fully booked with 15 participants. The seminar has been put together by GL in co-operation with Muehlhan, which specialises in marine surface protection. As for GL's class portfolio, over 6,300 vessels totalling 70 mill gt are now under regular technical supervision of GL. In the space of 12 months, GL's fleet has grown by 10 mill gt. "This is a milestone in
the history of the classification society," said Dr Hermann Klein, member of GL's executive board, at the classification society's Hellas committee meeting in Piraeus at the beginning of June. "Based on the incoming orders we expect a sustained growth rate again," he said. To cope with the extra tonnage, GL has increased its staff level particularly in East Asia. In 2006 alone, a total of 312 employees were hired worldwide. Since the beginning of this year more than 300 international positions were filled. Today the workforce totals over 4,100 worldwide. In another move, GL has been authorised to participate in the US Coast Guard's (USCG) alternate compliance program (ACP). As a result, US shipowners can select GL as their recognised organisation, acting on behalf of USCG. GL is one of only three non-US classification societies to have a USCG ACP authorisation. ACP is a voluntary alternate process for a US registered vessel to obtain a USCG certificate of inspection by complying with the standards of a delegated classification society, including its ACP Supplement and International Conventions. TO
In the space of 12 months, GL’s fleet has grown by 10 mill gt. “This is a milestone in the history of the classification society...based on the incoming orders we expect a sustained growth rate again ”
”
- Dr Hermann Klein, member, Germanischer Lloyd Executive Board
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DNV claims second spot in German vessels classed On 1st June, 2005, DNV moved its European headquarters from London to Hamburg. The German offices cover northern Europe and Africa. At the time, DNV said that Hamburg was an increasingly important international maritime centre for shipowners, management companies, financial institutions as well as shipyards, reflected by the steadily growing number of vessels managed or owned by German companies, in particular containerships. "The decision to move the regional office to Hamburg is underlining our strategy to become the number-one class alternative in Germany and shall give a clear signal to the market that we see increasing potential for growth of DNV services. At the same time, we recognise the ongoing importance of the UK maritime market by continuing our good work in the London market," said DNV Maritime coo Tor Svensen, speaking at the time of the move. Regional manager Joerg Beiler and country manager Joerg Langkabel said during TANKEROperator's recent visit to Hamburg that competition among class societies will increase the focus on the service level and will trigger the introduction of new services for the market. However, competition would not lead to reduced focus on quality.
Last year, DNV moved into larger premises located in the centre of Hamburg, close to the flag administration. Langkabel explained that the German flag authorities have now extended the scope to carry out statutory surveys etc on German flag ships by other class societies. DNV now claims the No 2 spot in terms of German-controlled tonnage entered behind GL. Although the high number of containerships controlled by German interests under GL class is attracting much of the other class society interest, DNV claimed more than 38% of the tankers in German management in terms of gt. DNV also boasted 1.3 mill gt of German newbuildings by the middle of this year, compared with 1.85 mill gt of newbuildings entered for the whole of 2007. The class society has appointed a local customer service manager whose job it is to visit the owners and listen to their needs, Langkabel explained. Thus, the concept of a Hamburg service centre had been expanded. For example, a tailor-made service is offered on fuel savings - a very pertinent example today when the cost of IFO 380 cSt had hit the $700 per tonne mark recently. Another example of the service concept is that advice can be given on TMSA and Safety Management Systems. At the beginning of this year, DNV employed 70 people in Hamburg and the
DNV has opened its own dedicated academy in Hamburg.
22
satellite offices around Germany. By the end of 2008, this number will have risen to 90. An office has also been opened in Bremen. DNV has a huge database containing what it calls 'knowledge management'. For example, some German owners and managers need to know about potential propeller damage in routes through ice. The information held on propeller damage could help the owners and managers decide upon the need to carry a spare propeller. Certification of marine equipment and subsuppliers is another strong area within Germany as many suppliers, such as MAN and MTU among others, have full orderbooks due to the massive vessel ordering spree during the past few years. Several vessel types, including containerships, cruiseships and ro-ros are being built in German shipyards to DNV class. Also included are four LPG carriers at Meyer Werft for Harpain Shipping. German ports are among the busiest in Europe and the repair yards are experiencing better times of late, creating more work for class surveyors in general. Similar to GL, DNV has set up an academy in Hamburg, which takes up one floor of the six-storey building. Three rooms are available in an open type landscape, the largest of which can accommodate up to 60 persons. Both seminars and courses are held focusing on operations and technical topics, including technical courses aimed at nontechnical personnel, which are proving popular. DNV has been holding seminars and courses in Germany since 1995 and welcomed more than 1,200 participants last year, which encouraged the society to open its own dedicated facility. Seminars and courses are split into categories, such as ship types, which include containerships, oil and product tanker, chemical tanker and gas tanker updates plus design, equipment and cargo operations. Another series covers maritime technology in all its forms from hull inspection to managing complex electronic systems integration. Four courses are offered on maritime rules and classification issues and a larger selection of courses cover management systems. General shipping business is also covered aimed at the office newcomer. All the listed seminars and courses are held TO in English.
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Large training centre nears completion One initiative underway in which GL is a stakeholder is the Maritime Training Center (MTC) Hamburg, which is due to open its doors next February. Hamburg has been without a major training facility since many nautical colleges closed down during the shipping downturn experienced during the 1980s, which left a huge gap in training. Hamburg also lost the 'SUSAN' simulator training facility to Leer, which is now home to a large shipmanagement fraternity. MTC will be located at Harburg, a suburb of Hamburg, built in an old dock area. Illustrating Hamburg's maritime cluster mentality, MTC is a joint venture between shipping companies Rickmers Reederei, Orion Bulkers and Marlow Navigation who acts as a crew manager. Apart from GL, other stakeholders include MAN Diesel, the River Elbe, Port of Hamburg and Kiel Canal Pilots' Associations, port and logistics training concern ma-co maritimes competenzcentrum (formerly known as FZH),
and private investors. SAM Electronics is acting as a co-ordinating partner while Bremen-based Rheinmetall Defence Electronics will supply the shiphandling, radar/ECDIS, GMDSS, liquid cargo handling and ships engine simulators. Furthermore, hands on training will be provided for the operation and maintenance of marine diesel engines and their components through a MAN Diesel workshop. Previous FZH fire fighting and rescue boat courses will also be included. MTC managing director Heinz Kuhlmann explained that by integrating the pilot groups, ma-co specialists and the GL Academy, MTC will be able to offer quality and professional knowhow at the highest level in most disciplines. Kuhlmann said that marketing the centre would start in earnest this September when bookings will be taken. He also claimed that he already had verbal promises from some shipowners to use the facilities. All the training courses, seminars etc, plus the documentation will be in English to attract
An impression of the full mission bridge simulator.
international clients. Once MTC is fully operational, it will have a training capacity of 14,300 man hours, making it one of the largest training centres in Europe. The equipment and operation alone is costing Eur6.5 mill and the City of Hamburg is donating Eur900,000 towards the project. Apart from Harburg, another simulator centre is TO planned in Hamburg for a 2010 start up.
Marine Training Center - Hamburg
MTC will open it’s doors beginning of 2009 in Hamburg and provides a wide range of maritime training courses for navigation, technical operations, maintenance, GMDSS, safety and tanker operations. For more information and course catalogue 2009 contact: info@mtc-simulation.de
www.mtc-simulation.com August/September 2008
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A hull with a breaking point
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Kiel-based Lindenau Shipyard is further enhancing tanker safety by designing vessels with a pre-determined breaking point.*
y providing tankers with predetermined breaking points in their double hull, Lindenau believes it can enhance tanker safety. While mandatory double hulls offer significantly better protection against the threat from a collision than single hull vessels, pollution may still occur if both the outer and inner hulls are punctured. If the inner tank shell was designed to partially disconnect from the supporting structure in a lateral collision, it would deform more easily, bulging inwards to produce a large dent at the point of impact, rather than rupturing. This would require an inner hull
made from a highly ductile, extensible material. These ideas inspired the concept of a so called 'crumple zone' for tankers. To turn this idea into an actual project, Lindenau got in touch with Hamburg-Harburg Technical University (TUHH) and Germanischer Lloyd (GL) to arrange for a basic initial research programme. It was thought that an austenite with high ductile yield might prove suitable material for the inner tank shell. Under tensile loading, these kind of austenites resist failure for a much longer period than standard steel types. While shipbuilding steel has a ductile yield of between 16% and
22%, austenitic steel can be extended to 30% to 35% before failing. However, a tensile shell in itself will not suffice. To bulge inward across a large enough area, the shell must be allowed to separate from its supporting structure. To illustrate the problem, Lindenau's project head in charge of developing the design - Ingo Tautz - used an image of a balloon inflated inside a wire cage and glued to the bars. "Pushing the balloon downwards will cause it to burst. But if you don't glue it to the bars, it will be free to move so you can push it inwards to quite an extent before it will burst," Tautz explained.
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Predetermined breaking point. In a collision, the malleable inner hull of the tanker will bulge inwards without causing an oil spill. (Graphics – Lindenau)
On any ship you will find the cage's equivalent. It is formed by longitudinal stringers and vertical frames. Stringers and frames make up the skeleton that supports the outer and inner hulls of the ship and which are spaced about 2 m apart. The critical question is how to enable the inner shell to separate from this supporting cage, thereby enlarging this space. As far as the longitudinal stringers are concerned, the solution is straightforward enough- the stringers are welded only to the outer hull and have no contract with the inner hull. A more complicated matter is the case of the vertical frames. A series of holes, known as perforated pre-determined breaking points, are made in the sections closest to the inner shell. In a collision, the frames are intended to rupture at these locations, thus releasing the inner shell. The larger number of breaking frames, the better. This design concept was first developed by Lindenau partner and former managing director Guenter Stehn, who estimated that frames may break over a length of 20 m along
a ship's body, allowing the austenitic inner shell to bulge inwards by several metres without rupturing. To ensure that this works, tanks may not be fully loaded and must be fitted with burst plates designed to break on impact. The cargo then flows into a neighbouring tank or ballast tank. What made Stehn's approach appealing was its simplicity. The vessel's inner shell deforms without causing an oil spill. But how far can this be taken before the ship's structure becomes unstable? As it is, sailing in rough seas is a punishing experience for a tanker, exposing it to incessant assaults from different load combinations, a constant interplay of compressive and tensile stresses. This relentless strain is particularly aggressive around cut outs and holes where cracks may form. Perforated pre-determined breaking points are not exempt from this threat. The critical question is, how should the perforations be designed so the frames only fail in a collision as intended while safeguarding the structural integrity of the vessel during normal operations?
In his dissertation completed under the supervision of TUHH's Professor Eike Lehmann, Tautz analysed the hidden pitfalls of calculation methods that simulate the planned failure of pre-determined breaking points. The ductile yield of austenitic steel, while known, does not help in determining the highly important parameter of time of failure when calculating collision simulations. Knowing the time of failure is critical. If a tank shell separation from the frames is too late, the striking vessel might penetrate it. No matter how many calculations are performed, there is no substitute for physical measurements and practical tests. To accommodate this, Lindenau has requested research funding from the German Federal Ministry of Economic Affairs. The research project aims at clarifying important aspects of operational and collision safety. Operational safety measurements have already begun on a ship section built according to the new design concept and installed on the 44,700 dwt product tanker Seychelles Patriot.
Seychelles Patriot. One side section was built with integrated predetermined breaking points. (Photo – Lindenau)
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Celebrating 50 years of service
Put to the test. A side section for Seychelles Patriot featuring perforations. (Photo – Lindenau)
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This 189 m long double hull tanker was delivered by the Kiel yard last February. A three-frame side section of this vessel was built according to Stehn's design, featuring perforated pre-determined breaking points. GL is conducting long term measurements on one of the frames to verify the results of the structural durability calculations performed thus far. These measurements were taken using strain gauges attached to the perforations. These strain gauges consist of plastic strips with etchedon copper leads. When the material expands, the copper's electrical resistance will change accordingly. The resistance readings are then converted into units of tensile force, providing a means to assess the static and dynamic stresses occurring around the measurement points. Three perforation holes have been fitted with six strain gauges each. "Measurements will continue around the clock for an entire year," said Peter Wania, GL's metrology engineer. "This should provide us with enough data to answer the question as to whether this design provides adequate structural durability." These measurements provide clarity regarding the operational safety of the design under normal operating loads. "What we cannot do with these measurements is verify what will happen in a case of collision," Tautz conceded. Therefore, Lindenau will run a series of crash tests, some of which will involve a scale model of a ship's side, complete with predetermined breaking points, which will be rammed by a bow-like element. "We will not be able to substantiate the precise functional behaviour of our design until we complete the entire research project," said Tautz. A three-year window has been assigned for the project. All parties involved are aware that the new concept will fail in a worse-case collision scenario, a high speed, right angle impact. "When a ship collides at a 90 deg angle at high speed, it will cut right through to the centre of the struck vessel. There is no way to prevent that," said Stehn. But ships generally heave to when a collision is imminent, so the impact occurs at an oblique angle. Five to six frames might break in the process, Stehn estimated, producing an inner-shell dent two to three metres deep. The concept of a crumpling zone for tankers may not be ready to be put into practice immediately. But conceivably, it will shape the way oil and chemical tankers will be built at Lindenau during the coming decades. Stehn himself was open to the idea that the patented design concept of perforated pre-determined breaking points may become an international requirement at some point in the future. TO
*This article first appeared in GL’s magazine ‘nonstop’ by whose kind permission this article was reproduced.
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BSM comes of age With the ink barely dry on the regrouping programme undertaken by the Bernhard Schulte Shipmanagement Group (BSM), TANKEROperator spoke with ceo Andreas J Droussiotis about the coming together of the group’s diverse shipmanagement concerns.
B
SM is in the big league and currently manages a fleet of 648 vessels; 285 fully managed and 363 crew managed and 44 confirmed until the end of 2008. Furthermore, the group employs over 17,000 personnel on board and onshore. Droussiotis explained that the whole purpose of the merger was to protect the business and invest in a stronger future. "As with any unification, the systematisation of the group is taking time with close cooperation, and a lot of hard work. Organisations have used acquisitions to reach new markets and acquire new customers. We prefer to expand gradually, keeping all operations under control", he said. The decision to merge the various companies was taken by the group as a whole. The management teams of each concern considered this as the best solution for the future. "Merging a group of companies and diverse cultures under one banner is a challenge, in addition to a great opportunity. Situations like this are never easy to deal with. You suddenly recognise the need to put in place more effective standards and policies. In order to achieve this, effective leadership and teamwork have to be reached on all levels. "Both the challenge and the opportunity are there, and by unifying the group of companies, Bernhard Schulte Shipmanagement plans on representing just what the power of unity can
Andreas Droussiotis
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mean in the shipping industry. The result? Being better for the clients, for the employees and for the shareholders", Droussiotis said. Droussiotis explained that the company plans to manage costs within the integrated group to profit from opportunities in the shipping industry, while continuing to provide quality shipmanagement. "Ultimately, there will be savings; however, we expect the usage of concentrated power to yield positive results", he said. "BSM has a strong management team, with an established reputation for success. Working under one banner, the new structure will only reinforce our efforts to further develop the opportunities throughout our organisation," he said talking of the integration of senior management. New roles have been assumed by members of the management team, and new roles were also being made available to cope with the expansion of the group and the shift in management roles. "Everyone has taken up their new roles and they will work fully for the success of the group", he explained. All ship management units, which were previously under the control of the separate main companies will become fully fledged and provide all the services to clients directly. Due to the fleet separation, which was organised for various reasons, they will report to the group fleet directors for the different vessels who will be responsible for their operations. As a result of the coming together, BSM's clients' fleet are now managed by strategically located service delivery centres (SDCs) around the globe. "These have the specialist knowledge, the experience, the up-to-date systems and certifications in place to manage all types of vessel and fleet currently in service with maximum efficiency", he said. He said that from containerships, conventional bulkers, gravity-fed self-unloading bulk carriers, through Panamax, post-Panamax, Handysize, ro-ros, pure car carriers, crude, chemical, LNG, or LPG tankers, to heavy-lift vessels, semi-submersibles and FPSOs - the on board and onshore specialists are highly experienced in managing vessels and fleets of every type and age. Basically, the fleet has been divided into three categories - dry, tanker, gas/LNG and each category is managed by a team headed
by a group managing director. Droussiotis said that the most important issue for BSM was nothing else but the continuous training and upgrading of its own people. The majority of people in BSM's present training facilities/schools come from the Philippines, Cyprus, India, and to a lesser extent, the ex Soviet states. "Our foundations stand by the principle to own the agencies we recruit from. We have the company's policies, philosophy, mentality and recruiting standards within these agencies, as well as the training we conduct in these areas", he explained. He said that building relationship and professional networks were just some of the elements that keep the shipping industry on its toes. Leadership, collaboration, communication; these are aspects that are needed to keep the human factor from growing stagnant. It is the human factor issues that are capable of acting as catalysts in developing technologies, expansion rates, and so on. "However, with strict follow-up of the policies, we are able to cope with the immense problem, as well as with the unreasonable escalation of wages, which we try hard to cope with", he said. As for specialist vessels, Droussiotis said that over the years, the group has managed a large number of gas and chemical vessels. The shipmanagement units are capable of providing experienced crews for these vessels from the BSM pool with the guidance and control of the group managing directors. "We have a number of our seafarers, both officers and ratings, who have been with us for over 10 years; a good number who have been with us over 15-20 years. Dependable seafarers are harder to come by today; which is exactly why we work harder to keep them. We have a good number of senior officers who started as ratings with us, meaning we have been satisfied with their performance and they have been pleased with us as employers", he said. As for Hamburg, Droussiotis said that Bernhard Schulte's role in the group today is like in the past- that is the role of the shareholders. There is close co-operation and an information flow, but the company is not involved in BSM operations at all, he stressed. TO
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InterManager speaks out for a pay rise One of the major problems facing third party shipmanagement concerns today is remuneration, especially when basic costs are escalating.
“S
hipowners must realise that shipmanagement fees need to increase otherwise the majority of professional managers will become reluctant to take on more ships", warned Ole Stene, InterManager president. Claiming that shipowners still had to recognise the valuable role that third party managers play in today's shipping industry, Stene complained that owners still "did not want to pay the fees that managers' deserve for taking care of their assets" He added: "I have not seen much improvement in the management fee structure since it first started to be debated in the media and when you see how the shipping market has improved coupled with the concerns we have on recruiting and manning and taking care of the asset value of the ships, we are surprised owners are not prepared to share their fortune with us in taking care of their ships." Despite this reticence on the part of the owners, Stene claimed it was inevitable that fees would rise and that owners would start to realise they have not only to invest in manning but also in paying for the management services that they are receiving. "It is becoming more difficult for shipowners themselves to recruit the right shipmanagement resource. In a way it is the third party managers who control those people who will be eventually employed as superintendents ashore. If a shipowner, particularly the asset players, goes out into the market to try and hire superintendents or crew managers, he will find he has a huge problem attracting the right people," he added. InterManager has also reiterated its stance on the continuing detention in South Korea of the Hebei Spirit's master and chief officer. "Yet again we see our highly professional and valued seafarers singled out for appalling treatment," said Stene. "How can we encourage young people to take up a career in shipping when they see experienced and innocent crew criminalised in this way. Would 30
InterManager president Ole Stene.
the airline industry accept this - I think not!" The 1993-built single hull VLCC was at anchor waiting for a berth to discharge when a crane barge broke its tow in stormy weather and smashed into her side, holing three cargo tanks. About 10,500 tonnes of oil spilled into the sea, causing the country's largest ever oil spill. Two South Korean tug masters were jailed for their part in the incident, but the tanker's two officers, Indian nationals Capt Jasprit Chawla and Syam Chetan, were cleared of all charges on 23rd June. However, they have since been prevented from leaving South Korea pending a retrial that is not expected to take place until early next year. Under South Korean law, prosecutors have appealed to the country's high court against the decision by a district court in the Daejeon area of South Korea that exonerated the men of blame. Depending on the outcome of the high court trial, prosecutors may appeal to South Korea's
Supreme Court, which would result in another retrial which might not take place until the middle of next year. The two men have received support not just from their employer, V Ships, but also from other seafarers in messages and telephone calls. Capt Chawla, who has 17 years of exemplary seafaring service, said in a recent interview that he felt he had done nothing wrong and that he was reluctant to return to sea, fearing that any future decisions he took at the helm would be coloured by this experience. Stene added: "This criminalisation of seafarers is having a seriously detrimental effect on recruitment. Seafarers spend many months away from their families doing an essential job for global trade. It is horrific to then confine these men many miles away from their homes and their loved ones, particularly when they have already proved they have done nothing wrong. We are very concerned that this type of incident is deterring young men from TO pursuing a worthwhile career at sea."
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A company’s take on the environment Athens-based Kristen Navigation, part of the Angelicoussis group of companies, has established an environmental management system in accordance with ISO 14001:2004.
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anaging director Stavros Hatzigrigoris explained that this initiative was undertaken to make the company "more organised" and that it enabled him to "measure what we are doing". One of the major topics at present is the control of the various emissions, such as SOx, NOx and particulate matter (PM). Hatzigrigoris thought that logical steps should be taken to control emissions and said that he applauded the recent MEPC findings. "It is wise and workable", he said. He warned that NOx and CO2 emissions problems don't go together as any fuel consumption increase needed to control NOx emissions would create more CO2. For example, ballast water exchange would increase fuel consumption to cope with the more power needed to run the operation. For a VLCC, Hatzigrigoris estimated that 800 kW of extra power would be required to run such a system. "We need time to look at everything including the reduction of CO2 and NOx. However, this energy problem is not (only) for the shipowners, as it needs to be discussed at IMO level," he said. "We need a safety culture and an energy culture," he added. Kristen has listed the initiatives being undertaken by the company both ashore and afloat to control energy consumption. For example, three VLCCs have been fitted with MAN Diesel electronically-controlled main engines. These engines have no camshaft but instead to provide power for fuel injection and exhaust valve lifting, they use a hydraulic oil loop with fine filtered oil from the main engine's lubricating system at about 200 bar pressure. The loop for heavy fuel oil is maintained as on mechanically-controlled engines, that is individual plunger type fuel pumps with hydraulic activation. Hence, no fuel oil will enter the precision fast-acting control valves in the hydraulic oil control loop. This system enables the adjustment of fuel pump and August/September 2008
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exhaust valve timing for optimum economy and NOx reduction. Kristen said that this was producing lower part load fuel consumption, lower emissions and particularly smoother and better low load operation. Switching to low emission modes means that the NOx exhaust emission will be below the IMO limits, and if desirable below local emission regulations. Recognising that prevention is always better than mitigation, the company said that it opted for an upstream solution, that is, trying to reduce the formation of NOx, rather than just cleaning the exhaust fumes. To reduce NOx emissions, new sliding type fuel valves were developed by MAN Diesel, which have been installed on all of Kristen's newbuildings since 2003. In addition, seven out of 19 tankers built prior to this have been retrofitted. Slide valves are designed to reduce the fuel volume remaining in the fuel injection nozzle when the valve is closed. They are also equipped with a specially designed injection nozzle that optimises the distribution of fuel throughout the combustion process. The aim is to avoid high temperature peaks and thus reducing the NOx build up.
Kristen Navigation currently has 34 tankers on its books, plus another 15 on order. These are VLCCs = 23, plus four newbuilding. Suezmaxes = Five, plus seven newbuilding. Aframaxes = Six, plus four newbuilding. Seven of the VLCCs currently in service are bareboat chartered to ChevronTexaco.
TANKEROperator
In addition, these valves optimise the fuel's combustion ensuring a cleaner engine. The consequential reduction of the HC emissions and also of PM results in less smoke formation, Kristen said. Furthermore, the engine benefits from reduced piston fouling and exhaust gas boiler fouling resulting in the exhaust valve duct being in excellent condition. The new VLCCs from Daewoo will be fitted with asymmetric fins to improve propeller flow and therefore enhance the propeller's efficiency. Kristen estimated that fuel savings of up to 4% can be achieved, but this was to be confirmed following the trials of the first vessel, which were due to take place in June. Energy audit Energy efficiency is controlled primarily through careful ship operation and management. With the view to enhancing its energy efficiency, Kristen organised an 'energy audit' on board one of its VLCCs to assess the energy performance of the vessel and its major machinery and operational management practices. Among the main objectives were: Identifying energy saving opportunities and the assessment of their technical and economic feasibility. Setting up of energy conservation programmes for existing vessels. Developing design considerations aiming at higher efficiency levels for newbuildings. Establishing 'best practice' for on board energy management to be implemented by the crew during their everyday working life on board. Another initiative Kristen regularly undertakes when necessary is propeller polishing. This has been estimated to increase the propeller's efficiency by between 2-4% resulting in significant fuel savings and therefore emissions. Kristen now carries out propeller polishing on all its managed VLCCs on a regular six month cycle as a company policy. 33
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INDUSTRY - SHIPMANAGEMENT Kristen regularly uses low sulphur fuel oil when entering an ECA, or other SOx controlled areas established by national or regional legislation. In addition, by regularly carrying out independent fuel oil analysis, the company is able to closely monitor the sulphur content of bunkers lifted to ensure compliance with the various regulations on sulphur limits. All the fleet have been supplied with refrigerant recovery units to deal with refrigerant gases. Kristen only uses hydrochlorofluocarbons (HCFCs) and hydrofluocarbons (HFCs), which are deemed to be less harmful to the ozone layer. Their consumption is closely monitored. Kristen has also set up a Transport Energy Efficiency Index expressed as grams per hfo per tonne/mile and as well as a CO2 index. These are monitored regularly for benchmarking and for identifying instances where corrective action is needed to improve environmental performance.
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Greek nationals tend to stay with Greek shipping companies and to help retention, Kristen is organising a survey among the officers, which it was hoped would show the level of satisfaction in working for the company.
The company is also one of the partners in the EU-funded integrated R&D project Hercules. This initiative was set up to design cleaner and more energy efficient marine engines by developing and testing new technologies to reduce emissions and increase efficiency and reliability, thereby reducing fuel consumption, CO2 emissions and engine lifecycle costs. Kristen said that the specific objectives
TMSA 2 hits the streets Now that the tanker world has digested the contents of TMSA 2, it has become clear that some of the anomalies that appeared in the original version, published in 2004, have been cleared up. One of the major changes is that smaller tankers, including bunker barges, are now included and the text has been changed to reflect this, that is the word 'tankers' has been changed to 'vessels.' It was thought that this omission in the first version left certain gaps when TMSA was applied to smaller tanker operators. ISM expert Dr Phil Anderson writing in ReportISM said that this move opened up the TMSA concept to a wider audience, including those drybulk operators who have seen the benefits that can be gained by adopting TMSA as a whole, or in part. Some of the key performance indicators (KPIs) have been re-arranged into a more logical sequence. The anomalies in the text have also been clarified, particularly on how the programme should be used and monitored. Basically, the updated version keeps to
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the same format as its predecessor, which is aimed at helping tanker operators measure and improve their safety management systems, while encouraging detailed and continued assessments of safety management. TMSA 2 also includes references to all of the latest industry regulations and practices adopted since the original version was published four years ago, ensuring consistency with the new rules entering force since 2004, Anderson said. He also said that the guidance on achieving the required improvements under the original version has been enhanced, as has the ability to react and build on the experiences and feedback from OCIMF members, vessel operators and industry organisations. Anderson thought that TMSA had evolved in a major risk assessment tool, which is used to assess whether a vessel should be accepted to carry a gas or oil cargo. Almost 730 operators now have access to the TMSA website with global interest reflecting the tanker ownership. Users include 107 in Greece, 66 in Japan, 62 in the US and 49 in Singapore.
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were to reduce related NOx emissions by 60% by 2020 and other emissions, such as PM by 40%. This is to be achieved through a variety of new developments in thermodynamics and mechanics of 'extreme parameter' engines by addressing advanced combustion concepts, multistage intelligent turbocharging and 'hot' engines with energy recovery and compounding. In addition, new internal emission reduction methods, after treatment techniques and new sensors are being developed. Training initiative To help cope with the lack of quality seafarers, Kristen has set up its own training school, near its office on the main Athens thoroughfare of Syngrou. Hatzigrigoris claimed that the company had the largest number of cadets in the Greek fleet and explained that the company's policy was to only employ Greek officers as the vessels fly the Greek flag. Kristen's maritime institute has been certificated by DNV. A Kongsberg Polaris bridge simulator has been installed as has a PC version of an engine room simulator. The company uses its own instructors to run its courses and refresher courses and including the building, the investment in the training centre ran to about Eur500,000. Greek nationals tend to stay with Greek shipping companies and to help retention, Kristen is organising a survey among the officers, which it was hoped would show the level of satisfaction in working for the company. A Sea Tel satnav has been installed on the vessels and seafarers are able to send private e-mails through the company's servers, Hatzigrigoris explained. Kristen also manages about 10 tankers owned by sister company Alpha Tankers, including three coated and stainless steel coil fitted LR2s. They have been operating in the naphtha trades for about 18 months, before TO switching to dirty trading.
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Winner - Sea Trade, Dubai International Maritime Awards, 2006 for “Outstanding Maritime Services”
Finalist - Lloyd's List, Middle East and Indian Subcontinent Awards, 2006 for “Shipping Agent of the Year”
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255, MADHAV DARSHAN, WAGHAWADI ROAD, BHAVNAGAR (INDIA) Phone: 91(278) 2424591/2524407 Fax: 91(278) 2429503 Email: harakhji@gmail.com Exporters of Marine Machineries and Equipment Website: www.harakhji.com
Oil Purifier Mitsubishi SJ-3000
Marine Engine Cat 3606 DI
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Fresh Water Generator Alfa Laval JWP-36-200
Turbo ChargerMitsubishi MET-35
Refrigeration Compressor Carrier 5H-20
Cylinder LinerSulzer RND-90
Hydraulic Motor Fukushima MA-10
Exporters of Second Hand Marine Machineries like Main Engines, Generators, Turbo Chargers, Oil Filters, Air Compressors, Hydraulic Equipments, Chilling Compressors etc.
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INDUSTRY - SHIPMANAGEMENT SOFTWARE
Class society offers integrated software tool
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Leading German class society Germanischer Lloyd has released a second version of its software suite - GL ShipManager.
ew are the modules reporting and analysing plus compliance management. "Ship operators and managers have expressed the need for a more workflow-orientated software tool in order to overcome the increasing administrative burdens of complying with industry requirements and regulations", commented Heiko Hofmann, managing director of Ms Logistik Systeme GmbH (MsLS), the GL Group company, which put it together. Based on the results of a focus group consisting of three of Germany's largest shipping companies and GL, compliance management was designed as a best practice solution for recording, analysing, acting upon and documenting incidents, as well as occurrences. The incident management tool is a main component of compliance management and facilitates the implementation of a company's safety and quality management systems. The module can specify the type of report with default categories - accident, complaint, deficiency, hazard, improvement, incident, near miss, non-conformity and risk. Given this information, incident management will delegate and manage tasks involved in carrying out corrective actions. It has an action plan, which also includes preventive action. The compliance management module covers all relevant requirements of the ISM Code, which can be supported by an IT system, GL claimed. While documentation management enables easy updating and dissemination of safety and quality manuals, certificate management configures crew profiles for various ship types in compliance with relevant regulations. Dynamic GL ShipManager 2 is dynamic. It is not only programmed for document management, but August/September 2008
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also for workflow orientation. With compliance management it doesn't have to be communicated through an external email system like Outlook. It has a messaging function, which is integrated in the mask of the screen. Furthermore, the messaging function has a ranking list, so all the persons involved can be contacted. The reporting and analysing module is integrated with all other modules in the system to collect data on various operational processes and generate reports. It provides a tool to analyse, evaluate the efficiency and optimise costs, as well as processes. Reporting and analysing offers an array of standard reports combined with freely definable reports and the flexibility of ad-hoc reporting. The user is able to create his, or her own reports and analyse key figures on demand. New license In order to allow customers to implement GL ShipManager within their own financial constraints, MsLS sells GL ShipManager 2 under a new license model. In addition to purchasing the software licenses, a leasing option with the same software will be available. With the upgraded system, the data handling is claimed to be more efficient and there is an expansion of interfaces. There is an increased efficiency and security of data transfer, allowing any type of attachments to be sent quickly and safely. In addition, there is an increased configurability of transfer data, which provides a higher degree of protection. The enhanced order management has a function originally designed for a cruise ship company. Namely, the integration of the redelivery function as a standard component. It enables efficient processing of transactions in which goods or equipment are sent back
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from ship to shore, for example, in the case of incorrect delivery, damaged goods, quality defect or service. Each GL ShipManager module can also be purchased individually. Implemented as a complete suite, it is an integrated information system that improves and automates processes, resulting in a cost saving potential, a reduction in workload and increased efficiency, GL claimed. The system will be continuously upgraded with another version - 2:1 - due at the end of this year. Another upgrade is planned for next year, MsLs' head of marketing Michael Bauerhaus told TANKEROperator. Functions, such as a new comprehensive crew management system, TMSA, ISM risk management, hull monitoring, risk management and assessment, shipboard routing assistance (SRA) and condition based maintenance will be enhanced, or added. Bauerhaus explained that GL ShipManager was originally designed to be a base system to support all the other systems, which had tended to become isolated. The system as a whole aimed to cover all processes, including GL tools, survey status and many shipboard functions, including heavy weather routing, crew functions etc. The monitoring and certification of many cargo and ballast tanks can be accomplished in a short space of time with the minimum of resources. Compliance documentation can be speedily accessed. An incident report system can be used with an integrated communications system, between ship and shore. GL and MsLs will give comprehensive 24/7 support and training and among the companies that have tested the system and provided feedback are Hamburg-Sud (HSDG), Columbus Shipmanagement, MPC and AIDA Cruises. HSDG made use of the system's crew TO management module. 37
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INDUSTRY - SHIPMANAGEMENT SOFTWARE
User friendly system continuously enhanced Leading software developer Ulysses Systems has continued to develop its fully integrated system - Task Assistant - for both shipboard and shoreside use.
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his system is claimed to be very user friendly as it allows the user to access the task to be undertaken and information needed without scrolling through pages of information, which might be irrelevant to what was required at the time. There are around 50 plus functions available for each role at present and once the user has quickly learned how to navigate the system, the task to be undertaken can be speedily accessed, Ulysses claimed. Task orientation is the key differentiation of Ulysses: Task orientation is an activity based way to organise information so that it appears to the user not only when he or she looks for it, but also more when they are involved in a task that might need it. This is extremely important in making the system user friendly and even more important in rendering a system that helps seafarers with their jobs, Ulysses said. People learn when they are given information, which they did not know, that is relevant to what they are doing.
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Structuring a system enabling that relevance to be achieved is the key to usability and value of an enterprise software system. Only those authorised to undertake certain tasks are allowed access to the relevant pages. The delegated persons can have access to either part or the whole system depending on what the requirements are. Once logged on, the system will show the user what he or she has access to and an audit trail can if needed automatically track the user's actions. Also Task Assistant pre-emptively provides the user with relevant information from various sources within the enterprise that could be needed for the task at hand. Since the user may not be aware of information contained in the system that may be needed for the execution of a task, the task orientation presents the user with all relevant information at the right time in the execution of the task. Maintenance One example is maintenance tasks, maintenance schedules and work to be
Task orientation is the key differentiation of Ulysses: Task orientation is an activity based way to organise information so that
it appears to the user not only when he or she looks for it, but also more when they are involved in a task that might need it. 38
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undertaken can be seen, including specifics such as sorting by ship by fleet by machinery including work schedule, spares orders etc. For a person in an organisation, such as a fleet manager who gets involved only when others call him in, a view of this information can be very different from that of a chief engineer who is involved with the same ship every day. Ulysses role task orientation ensures the right configuration for the right role. Ulysses had found that the marine industry has neither the time nor the budgets to train officers to use unintuitive software. Hence the software has been specifically developed for multi-tasking users with a lot of logical indexing structure tailored to each role and task, resulting in the ease of navigation of the system which is of prime importance. Thus the common requirement that information for a certain user only makes sense if combined with other relevant information is fully accounted for. A prime example is a group purchasing manager who needs to see spares ordering information in such a way as to back up his subordinates and ensure the vessels were supplied in time, as well as to check whether pricing criteria had been adhered to. The problem today is that the number of qualified seafarers is decreasing while the number of tasks, which need to be undertaken on board, is increasing. This results in more risk assessments, KPIs and other tasks, which all involve a certain amount of form filling, including the recently revised TMSA for tankers. This means that a lot more information needs to be collected in forms for the above tasks, and a lot more relevant knowhow needs to be provided to users at the time it is needed to ensure
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INDUSTRY - SHIPMANAGEMENT SOFTWARE quality and co-ordination. "If you had around 100 vessels in your fleet, you could be collecting and using information on 700 forms per day," director Panteleimon Pantelis said. So organising this information is clearly a priority. A maritime system such as Ulysses organises the information relevant to role, task and context. Accident investigation Accident reports can be compared with the crewing model enabling the shore staff to see which seafarers, vessels etc have had the most accidents and analyse the reasons why to prevent similar situations occurring again. The results can be saved as a 'Word' document, or in an Excel spreadsheet. Several reports can be compiled using the stored data, such as a list of injuries, accidents, non-compliances, records of chart and publications upkeep, plus seafarers qualifications and certificates, among others. For example, seafarers' cargo operation experience can be recorded and ascertained using the seafarer audit voyage management
system, which will give all the relevant details of his or her records, qualifications and certificates and even which type of vessels they had previously served on. The non-compliance reports are fully integrated with the other tasks. Ulysses explained that if they were separated, it would be extra work to reconcile all activities relevant to resolving a non conformance; activities such as maintenance, purchasing, crew management etc, with the underlying non-compliance. By using an integrated system, the lifecycle of a non compliance can be assembled with all the related activities to help co-ordinate the resolution, ensure process control, enable statistical analysis, etc. Task Assistant blends these tasks with all other corporate processes to create what Ulysses believed was a fundamental improvement in the way a company benefited from information and information technology. "You need to have software that virtually enables the user to teach him or herself how to use the system. We tend to train the trainer and this takes around four hours to cover all
the models available in the system," Pantelis explained. As mentioned, the biggest problem today is the shortage of seafarers. The system can help as a by-product by keeping a company well informed of seafarer experience and thus primed for most eventualities. The system is continuously being updated and Ulysses has offices worldwide that can offer support. The company will tailor-make the content of a system for a new client and ship if needed, as it would obviously cause major problems if a maintenance system intended for a tanker turns out to be a system meant for a containership once installed. The idea is to start the system configuration from a pre-configured platform for as many of the tasks as possible and ensure that the platform is readily upgraded as situations, rules and regulations, equipment on board and so on changes. Ulysses is used by a number of tanker operating companies who are finding it more and more essential to control the quality of TO their operations, the company claimed.
Experience the rewards of an integrated TMSA IT Solution Services Included:
Features: Role Based Access Remote Access/Web Based Technology Real Time Data/KPI Analysis Programmed Workflow Customizable and Expandable Document Management SIRE II/CDI Integratable with Existing Software User Friendly
TMSALogix Š
TMSA ISM OPA 90 ISPS SMPEP PCSOPEP Ballast Water Management ISO ThreatLogix Š
For an on-line demonstration email tmsa@hudsonmarine.com or call Michael Kane +1 856.486.0800
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INDUSTRY - CHARTERING
Charterer’s cargo contamination case not proven
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The Society of Maritime Arbitrators, New York, has sent a case note on a recent arbitration award dealing with liability for cargo contamination*.
he Aframax Eos undertook a voyage from Amuay Bay to New York with a cargo of 549,087 barrels of fuel oil under a Shellvoy 5 charter form. During the voyage, the vessel's heating coils leaked and an amount of fresh water was introduced into the fuel oil. The cargo had reportedly been purchased with a maximum sediment & water (S&W) of 1%. The supplier's load port certificate of analysis showed S&W of 0.7%. However, upon arrival at New York, the cargo inspectors found the S&W to be 1.8%. Following an initial partial discharge and considerable subsequent testing and retesting, the charterer ordered the vessel to move from the berth to the anchorage. The vessel remained at anchorage for 18 days before reberthing and completing her discharge. As a result, the charterer lodged a claim for $471,435, primarily for blending stock required to reduce the S&W content to acceptable limits and related tankage costs. The owner counter-claimed for demurrage totalling $1,117,842, including the 18 days spent at the anchorage. The charterer contended that it had proved a prima facie case by establishing that the S&W was 0.7% on loading and 1.8% on discharging. Furthermore, the owner did not dispute that the vessel's heating coils had leaked fresh water into the cargo and therefore the ship was unseaworthy at the commencement of the voyage. According to the US arbitrator, the owner contended that the load port analysis of the cargo used by the charterer was at least suspect, if not erroneous. Moreover, the amount of fresh water which could have entered the cargo through the leaking heating coils was inconsequential and therefore could not and did not cause the considerable increase in S&W content found at New York.
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He said that the first issue was whether the load port analysis used by the charterer as the basis for its claim fairly represented the condition of the cargo upon loading. The cargo was loaded from a massive open pit identified as open pit 801. Just before the Eos berthed to load her cargo, a vessel loaded fuel oil from pit 801 which had an S&W of 1.4%. The Eos' certificate of analysis was prepared by the supplier's laboratory and not by an independent inspection company. The owner had no involvement with the sampling or analysis of the cargo from pit 801. Further, if - as the charterer contended - the sole cause of the increase in water content from 0.7% to 1.8% was due to the leaky coils, then there would have been a commensurate increase in the volume of the liquid in the ship's tanks. There was an increase of about 1,704 barrels based on the difference between ship's ullages at load and discharge ports. No evidence However, to support an increase in the volume based on a difference of 1.1%, there would have had to be a volumetric increase of about 6,050 barrels. There was no evidence to support this position, the arbitrator said. While load port certificates may be prima facie evidence of the cargo quality as between buyer and seller of the product (and indeed this is often 'final and binding'), the quality certificate does not have the same import as between a charterer and an owner. The sole arbitrator, Jack Berg, concluded that, based on the credible evidence, the cargo on loading likely had a water content of between 1.4% and 1.5% and that the leaky coils added about 0.3%. "The overwhelming bulk of the problem" was the excess water existing in the cargo at loading, for which the owner was not responsible. The result was that the charterer's claim was denied. The arbitrator then considered the owner's
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demurrage and expenses claim of $1,117,842, of which $324,438 was for loading and discharging operations and $822,066 for time spent at the anchorage. He had no difficulty awarding the former. With respect to the latter, the charterer argued that the high water content caused by the leaky coils made it impossible to discharge the cargo promptly. However, the arbitrator found that this position was not sustained by the evidence. The terminal would have taken the cargo in at any time and ultimately did so. Instead, the arbitrator found that the time spent at the anchorage had less to do with the cargo's S& W content than charterer's decision to use the ship as floating storage in a rapidly rising market from which it "profited enormously". The full amount of the owner's claim was awarded. Each side also claimed legal expenses in excess of $600,000. With very little discussion, the arbitrator awarded the owner, as the prevailing party, $550,000 as being reasonable in the circumstances. (Case - Andorra Services Inc and Chemoil Corp as charterer - and Venfleet Ltd, as owner). The 1993-built 99,440 dwt tanker Eos is owned by Venfleet, a subsidiary of Venezuelan oil concern PDV Marina and managed by Bernhard Schulte Shipmanagement. She is entered with the UK P&I Club and classed by TO Bureau Veritas, according to Equasis.
*We are indebted to Maritime Advocate for permission to reproduce this article and to the sole arbitrator, Jack Berg, and the Society of Maritime Arbitrators based in New York for providing the case study. 41
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© Crowley Maritime Corporation, 2008
CROWLEY is a registered trademark of Crowley Maritime Corporation .
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TECHNOLOGY - SHIP DESCRIPTION
Hybrid gas carrier sets the standard Anthony Veder’s innovative hybrid gas carrier - the 7,500 cu m LNG/LEG/LPG carrier Coral Methane* - is due to enter service in December this year.
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he was launched at the Gdansk shipyard of Remontowa on 7th May this year and is being built on an owner/supplier basis. Anthony Veder's managing director Jan Valkier explained that the company was in total control of the shipbuilding process, due to the Coral Methane's complex design. There were options attached to the original building contract but these have expired. The gas plant and tanks were designed and developed by TGE Engineering. The Hamworthy Svanehoj pumps had to be redesigned to cope with LNG and other gasses. Rolls-Royce supplied the complete power and propulsion package, which includes Bergen Diesel gas/diesel electric propulsion unit and a twin Azipull propulsion system for ease of manoeuvrability. Coral Methane is being built to Bureau Veritas Ice Class 1B and will fly the Dutch flag. She has been chartered to Gasnor for 15 years but will used by other operators when not engaged in Gasnor's LNG trade, which will be mainly confined to the Norwegian coast. She has been fitted for ship-to-ship transfers and will also be able to load at most European gas receiving terminals, including the two being built in Rotterdam, acting as a
North European/Norway/Baltic Sea feeder. Valkier admitted that the Coral Methane had a larger capacity than currently needed in Norway, but was convinced the trade will grow as several Norwegian controlled coastal vessels, such as ferries and offshore supply vessels, now use LNG as their main fuel source. Anthony Veder technically and commercially manages 15 LPG/Ethylene carriers and has another four under purely commercial management. The company operates its own commercial pool in which the other four vessels are included. Like everywhere else, crewing is a problem as the seafarers need a gas certificate and gas experience. The company has a pool of Dutch, Ukrainian and Indonesian officers and as salaries have been rising appreciably, Valkier thought that the incentives were in place to recruit proper candidates. Gas courses are available in Rotterdam and training is also undertaken on board ship. Anthony Veder operates a cadet programme where potential seafarers are taken on annually. Demands have also been put on the shore staff. For example, the safety and quality department used to consist of just one person, but now there are three people
employed. In general Valkier thought that the business was more demanding and there were occasions where the crew was less experienced than would be preferred resulting in more supervision being necessary. Veder favours the Dutch and Liberian flags and although most of the vessels trade in European waters, including the Mediterranean and the Baltic, two vessels have been trading for Japanese trading houses in Asia since 2000 and another newbuilding will join them shortly. Three of the vessels have been built to Finnish/Swedish Ice Class 1A thus guaranteeing them winter shipments in the Northern Baltic, especially Finland. A few months ago, Veder purchased Bergesen Gas' Ice Class 1A 6,100 cu m BW Helen on the back of a charter from YARA to lift ammonia cargoes. The ships mainly lift petrochemicals (80%) and the remaining 20% of the cargoes are made up of LPG. Other projects could be on the horizon, including the carriage of CO2 and the question of shipping carbon capture cargoes. Charterers' vetting procedures tended to be quite strict and Anthony Veder is also involved with the TMSA process. About 70% Once delivered, Coral Methane will be chartered to Gasnor for 15 years.
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TECHNOLOGY - SHIP DESCRIPTION
of the vessels are on long term contracts, such as coas. Spot charters are used to optimise some of the voyages. Normally just one cargo is carried as Veder prefers to keep each ship in the same trade for ease of purging, although they are fitted with a nitrogen
generator for purging purposes. As for the petrochemical and LPG markets, Valkier said that they remained good. He explained that the rates in this more specialist market tend not to experience the same degree TO of extremes as seen in other markets.
*A full ship description of the Coral Methane will appear in the first issue of TANKEROperator following her delivery.
Wavespec Limited Consulting Marine Engineers and Naval Architects
Specialists in the design, design review, plan approval and construction, commissioning and survey of LNG Carriers, LPG Carriers, Oil Tankers, Oil Product Tankers and Chemical Carriers.
Fullbridge Mill, Fullbridge, Maldon, Essex, CM9 4LE. Telephone: ++ 44 (0) 1621 840447 Fax: ++ 44 (0) 1621 840457 General E-Mail inbox@wavespec.com Web Site: www.wavespec.com
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gestaltung: www.jrs-viskom.de – realisation: www.make-ad.de
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MARINE EQUIPMENT Hamburg 23-26 September Visit us at SMM 2008 Hall A1 / Stand 451
Deck Machinery Compressors Steering Gears World-wide Service
Uetersener Maschinenfabrik GmbH & Co. KG info@hatlapa.de www.hatlapa.de O
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TECHNOLOGY - GAS DETECTION
Ensure the equipment is fit for purpose Gas detection equipment is required on board all types of ocean going vessels. The requirement can range from simple enclosed space monitors to multiple portable instruments and multi-point sampling systems*.
A
s with any large market, there are a significant number of equipment suppliers. Unfortunately for those on board the vessels, decisions can be made within procurement departments that do not take key factors into consideration; suitability for required use, spares availability and technical back-up. This can and does lead to problems when the equipment does not meet the requirements for the application and technical support is required at the next port of call. Suppliers looking to sell gas detection equipment to the marine market often view this sector as like any other. That being the case, they meet the regulation or requirement at the lowest cost and the orders will come in. This often results in equipment that was designed for another market being reclassified and offered as a solution to the marine market. Within Europe, Marine Equipment Directive (MED) approval is gained and this is the end
of the process - equipment is certified for marine use, make the sales !! The intensive cost of the research and development of a new product is such that it is natural to look for the greatest return possible on the investment. A new confined space monitor, for example, will be designed with the major land-based opportunities in mind these being telecommunications, water treatment, construction and petrochemical/refinery applications. The temptation is to get the same equipment marine approved and sell into the marine market. This is perfectly acceptable when being used as a confined space monitor on board, as these are numerous such as hold spaces, void spaces and cargo handling spaces. Dangerous situations can arise, however, when these units are adapted slightly and sold as gas measuring instruments suitable for specialist applications, such as the monitoring of inerted cargo tanks.
Once the European Marine Equipment Directive approval is gained, that tends to be the end of the matter.
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An instrument being used for monitoring during inerting operations is required by the International Convention for the Safety of Life at Sea (SOLAS) Chapter II-2 Reg.16 3.2.1 to monitor hydrocarbon vapour concentration in the cargo tank to less than 2% by volume. As a confined space monitor is designed for safety monitoring, it typically will not have a suitable resolution or accuracy required to monitor at low percentage volume levels; the key measurement with these instruments is LFL (Lower Flammable Limit) or LEL as it is categorised in land-based applications. Similarly, ISGOTT 3.2.2 demands that no static hazard is introduced to a tank when sampling to monitor gas levels. Specialist marine equipment manufacturers understand this requirement and will provide sample line that is conductive, thus eliminating a possible source of ignition. Equipment suppliers without knowledge of the marine market will supply adapted confined space monitors with standard sample line; typical markets on land do not require conductive sample line, meaning it is not readily available. Spares critical Another feature of the marine market that is often overlooked is the availability of spares and technical support when needed. It is straightforward when selling to land based industries to be able to guarantee spares availability and technical support. After all, the end users will be in the same time zone, if not the same country as the sales office. The marine market requires such availability on all of the main shipping routes. Port authorities and coast guards require that gas detection equipment is operational and within calibration. Failure to satisfy these checks can mean that a vessel will not be able to dock in port or leave the port. This can be extremely costly if the cargo has been sold on the spot market and is required on a tight shipping schedule thousands of miles away. It is worth checking with your intended supplier of gas detection equipment that they 47
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TECHNOLOGY - GAS DETECTION have the necessary infrastructure in place to support the equipment. The basics of this infrastructure should be authorised repair centres in place on the majority of vessel trading routes. It is important to confirm that the repair centres are authorised as this will mean they have a direct line of supply to the original equipment manufacturer for availability of spares and are regularly checked for quality of work. When required, the repair centres will have qualified technicians available to come on board and assess any problems; repair and putting systems back into commission where required. The key issue is that there will be a stock of key spares available, removing the need for the crew of shipmanagers to chase around looking for a solution to what should be readily available. Having a network of authorised repair centres will provide additional benefits. These can be significant such as a no-hassle warranty exchange programme, equipment swap-out and centralised invoicing, if required. As with any instrumentation, gas detection equipment can fail due to a number of conditions. Knowing that such a failure will be serviced or replaced at the next port of call
without delay is reassuring. The validity of the warranty claim can be assessed later; the most important aspect is not to delay the vessel. A direct link and common policy between authorised repair centres and the equipment manufacturer increases the flexibility of service. When gas detection equipment requires a non-standard repair it is often possible for the repair centre to supply a temporary loan instrument that can be swapped out at the next port of call with the repaired instrument. This prevents any problems with the vessel not having sufficient operational units on-board while retaining the familiarity of equipment usage by the crew. Advanced payment When a new customer looks to purchase parts or a service, the terms can often be payment in advance. This can be impossible to arrange for a vessel visiting port one day and leaving the next. Using an equipment manufacturer with worldwide service centres means that invoicing can all be passed through a centralised account. Again, this serves to provide the vessel with the required service without delay. As has been explained, a procurement
department will often select gas detection equipment primarily based on price. It is possible that this equipment can mean that the crew of the vessel will attempt to use it for applications that it was not designed for. In fact, it can introduce a dangerous situation that would not arise if using equipment designed specifically for specialist marine use. Examples of such are lack of resolution and accuracy for gas measurement in inerted tanks or the introduction of a static hazard within a cargo tank. Also, an often ignored factor is the support required to keep equipment operational. The support of authorised repair centres in ports where they are required with available technicians, spares and technical support can outweigh the initial cost savings at purchase. The motto of the story is that if you decide to purchase gas detection equipment based on selling price alone; be prepared to hear back from the crew regarding excessive costs TO relating to delays or being held in port.
*This article was written by David McLafferty, formerly marketing manager, Gas Measurement Instruments Limited (GMI).
Introducing the new range of Gas Detection instrumentation from GMI GMI have been providing Gas Detection Equipment to the Shipping Industry for over half a century. We manufacture and supply an extensive range of single-gas and
GMI can provide a complete Gas Detection package: Portable Instruments Fixed Systems - Gas Sampling Systems - Addressable Detection Systems
multi-gas, portable and fixed gas detection systems to meet all of the following Ballast Tank Monitoring
requirements . . . . and more VISIT GMI AT SMM STAND No. B1-OG-444
Pump Room Monitoring Confined Space Monitoring Void Space Monitoring Inert Gas Monitoring Accommodation Monitoring
for OIL TANKERS CHEMICAL TANKERS LIQUIFIED GAS CARRIERS BULK CARGO CARRIERS REFRIGERATED CARGOES GMI Head Office: Inchinnan Business Park, Renfrew, PA4 9RG Scotland, U.K. Tel: +44 (0) 141-812 3211 Fax: +44 (0) 141-812 7820
GAS MEASUREMENT INSTRUMENTS LTD e-mail: marine@gmiuk.com 48
web: www.gmiuk.com
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TECHNOLOGY - GAS DETECTION
Two hand held gas detectors launched W
ith a two-year lifespan and guaranteed to be repair-free during that time, the new Draeger X-am 1700 is one of a new generation of one-to-four gas detectors specifically designed for personal monitoring applications. The new gas detector is claimed to be ideal for use where explosive gases and vapours as well as O2, CO and H2S may pose a threat to health. No larger than a mobile phone, this lightweight, ergonomically designed instrument is easy to use and features the latest miniaturised XXS generation of powerful electrochemical DraegerSensors. For improved safety when facing unknown hazards, the catalytic Ex sensor, calibrated to methane, responds quickly to explosive gases. Offering a high level of sensitivity to combustible organic vapours it also ensures dependable warnings in the event of explosive hazards, Draeger said. With a practical two-button control panel and straightforward menu guidance system,
Leading gas detector manufacturer and supplier Draeger has introduced two new products.
the X-am 1700 benefits from a large liquid crystal display which provides all readings at a glance. Fitted with a crocodile clip for secure attachment to clothing, it also incorporates gas inlets on both the top and front to ensure that, even if it is accidentally placed in a jacket pocket, it will still provide a reliable warning against gas hazards. In alarm situations, the X-am 1700 provides three different types of warning. These are an audible multi-tone alarm, a visual 180 deg alarm and a built-in vibrational alarm. Dust and water-resistant to IP67, this rugged instrument remains fully functional and ready for use even after being dropped in water. The integrated rubber protection and shockproof sensors provide additional
resistance to impact and vibration and the unit is also able to withstand electromagnetic interference, Draeger claimed. The X-am 1700 can be used with either the standard alkaline or optional NINH batteries. In addition it can be fitted with a T4 battery which can be recharged in the workshop or in a vehicle, while still inside the instrument. Equipped with a data logger as standard, the unit allows data such as alarms, errors and the results of function tests to be transmitted via infrared interface to a PC. The data can then be analysed using the DraegerGas Vision software. A variety of options are also available. Meanwhile, the new Draeger X-am gas detection instrument provides accurate, reliable measurement of one to five gases. Lightweight and as small as a mobile phone, it is completely maintenance free and ensures fast, reliable monitoring of ambient air. Rugged in design and easy to use, this innovative, ATEX approved to zone 0 instrument also offers extremely low operational costs.
The pocket gas detectors are ideal for potentially hazardous areas, such as machinery spaces.
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TECHNOLOGY - GAS DETECTION Incorporating the latest miniaturised XXS generation of high performance sensors, the X-am 5000 can be fitted with up to four sensors to detect as many as five gases at once. For example, by using a catalytic Exsensor together with two electrochemical sensors and a combination, double sensor for CO and H2S, it will provide simultaneous measurement of explosive gases and vapours as well as O2 and other toxic gases.
As well as a wide range of sensors to protect against CO, H2S, CO2, Cl2, HCN, NH3, NO2, PH3 and SO2, Draeger oxygen sensors offer a five-year expected lifetime, and the catalytic Ex sensor, calibrated to methane, offers exceptional longevity, the company said. Providing improved safety when facing unknown hazards, this Ex sensor responds quickly to explosive gases (additional
calibrations are available) and offers a high level of sensitivity to combustible organic vapours. As a result, it ensures dependable warnings in the event of explosive hazards. A variety of options are also available such as an external pump with flexible hose for use in pre-entry/confined space measurement applications and the Draeger E-Cal automatic test and calibration station. TO
Inert gas generator from Coldharbour UK based Coldharbour Marine, a division of Transvac Systems has added a new type of inert gas generator (IGG) to its existing range of products. The new, patented third generation IGG system (3gIGG) is claimed to reduce the risk of explosions in cargo tanks and for other applications, such as ballast water treatment. Howard Towers, Coldharbour marine director said; "Our new third generation Sea Guardian™ IGG represents the result of several years intense research and development effort by the team here in the UK, and that in turn was based on our combined in-house experience of more than 50 years in this important sector." The new technology incorporates several significant advances over traditional IGG
systems, in both burner and quench scrubber design, resulting in a safer, cleaner, lower maintenance, simpler to operate unit, the company said. It is fitted with a specially developed Venturi type burner, using axial flow staged fuel and low NOx atomisation and has been developed from the power generation sector, where the basic technology has a well established history of stable, reliable operation over long periods. Coldharbour said that the patented quench scrubber design is a particular highlight of the system, offering an end to Venturi/scrubbing towers, spray nozzles and demister pads. As a result, the units are more compact than earlier technologies and this will facilitate the retrofit market, as well as newbuildings in the future. Howard Towers.
Long term reliability and benchmark performance testing was completed in late 2007 and the units are currently in the final stages of receiving appropriate approvals and certification. Towers continued; "Our aims were to design and build the best IGG for the current and all foreseeable future market requirements, capable of operating at 0.5% or lower residual O2 levels while maintaining zero soot output. We also wanted to address the typical operating and maintenance issues associated with the earlier IGG technologies." Coldharbour Marine is looking to expand its distribution network for the technology worldwide. It has already received indications of interest from Europe, the US and Japan and expects to deliver the first customer units in 2009. „
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FOUR IN A SERIES on operating chemical tankers more profitably
Clean Quick Turnaround in Port Starts with Fast Cleaning
MarineLine® coating squeezes more profit from chemical tankers by ensuring quick cleaning, leading to faster port turnaround and more service hours on the high seas. Often, tank cargos will change between voyages, so effective tank cleaning is essential. MarineLine® coating maintains a very slick and hard surface, i.e. an Ra 0.7 rating (very smooth) vs. Ra 1.8 for Phenol Epoxy. So, the steps of tank washdown, cleaning, drying and desorption move along quickly, with superior tank cleanliness as the ultimate result. The cross-linked polymer structure of MarineLine® also ensures superior resistance for thousands of chemical cargoes as well as food grades and edible oils, when compared to the limited service and extended cleaning requirements for stainless steel or other coatings. MarineLine® is the best choice for clean, profitable tanks!
MarineLine® tanks are easily washed and cleaned so they can be quickly readied for the next chemical cargo.
Advanced Polymer Coatings, Ltd. Avon, Ohio 44011 U.S.A.
+01 440-937-6218 Phone +01 440-937-5046 Fax www.adv-polymer.com
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TECHNOLOGY - CHEMICAL TANKER DISCHARGE
Discharge requirements should be simplified 250000000
1000000 900000
200000000
800000 700000
150000000
600000 500000
100000000
400000
Lub Oil
chemical tanker is a type of vessel designed to transport chemicals in bulk. Ocean-going chemical tankers generally range from 5,000 dwt to 40,000 dwt in size, which is considerably smaller than the average sizes of other oil tankers. Chemical tankers normally have a series of separate cargo tanks, which are either coated with specialised coatings such as phenolic epoxy or zinc paint, or constructed from stainless steel. Tank cleaning after discharging cargo is a very important aspect of chemical tanker operations, as tanks which are not properly cleaned of all cargo residues can adversely affect the purity of the next cargo loaded. Hence they are fitted with very efficient tank cleaning system. Since the design requirement of chemical tankers is more stringent than oil tankers, they are capable of carrying oil cargoes with some modification. Most shipowners ensure that their chemical tankers are certified to carry oil and chemical cargoes. The freight earned when lifting clean petroleum products (CPP) is low compared with chemicals, hence a shipowner will only carry oil when a chemical cargo is not available. This happens on average once per year. Another Annex 1 cargo is lubricating oil. The carriage of lubricating oil requires a
CPP
A
Should discharge criteria of Annex II cargoes be applied to carriage of Annex 1 cargoes in chemical tankers?*
CPP Lub oil
300000 50000000
200000 100000
0
0 2000 2001 2002 2003 2004 2005 2006 2007 Year
Source:
higher degree of cleanliness and care of cargo, thus chemical tankers are the natural choice. Their freight is comparable to that of chemicals. Hence lubricating oil is carried exclusively on chemical tankers. Broadly we can divide Annex 1 (oil cargoes) carried in a chemical tanker into three categories -. 1) Non-persistent clean petroleum products like Mo gas, Kerosene and Naphtha. They are volatile hence will tend to evaporate in
few hours. They are moderately toxic to the marine environment. However, they are more volatile then chemicals like Xylene and Toluene. When compared to Acrilonitrile, or Benzene they are certainly less harmful to human health and the marine environment. 2) Diesel and light grade lubricating oil (SN 150, SN 600). They are moderately viscous. However, their viscosity is less than 50 MPa.S at 20 deg C and they may
Need anchors and chains? Meet us at SMM 2008 Hall A1, stand number 122
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TECHNOLOGY - CHEMICAL TANKER DISCHARGE take up to 12 to 24 hours to evaporate. As reusing wash water. Hence, they cannot use should be 150 litres. far as their adverse effect on environment recycled wash water. Since copious amount of 2) Vessel should be en route. and on human health is concerned they are water is needed for cleaning to chemical 3) Vessel should be 12 miles off nearest land certainly less harmful than most of the pure standard, a large quantity of tank washing in a water depth of more than 25 m. chemicals. builds up. Either he has to keep the slop on 4) Discharge is made below water line. 3) Base oil, such as SN 2500. This is board, which means short loading of the next Now take an example of a chemical tanker persistent oil. If spilled in cargo, or else arrange for a big barge which with 20 tanks and a deadweight 15,000 dwt. large quantity, it can have may be very costly, or may not be available. After discharge of the Cat Y chemical, the similar of heavy grade fuel Now let us compare the discharge criteria of total quantity of chemical discharged will be oil. However, it is less Annex 1 with Annex II cargoes as per 20 x 100 = 2,000 litres or 2 cu m. persistent than many of MARPOL for category Y for a vessel built In the case of Annex 1 oil cargo, the total highly viscous category Y before 1st January, 2007. quantity allowed will be 15,000/30,000 = chemicals. 1) The total residue in the tank 0.5 cu m. If we compare the properties of some chemical and oil cargoes we will see that tone for tone adverse effect of Annex 1 cargoes carried in a chemical tanker is several times less than Seut Industrier as Mosssev. 63/65 - 1615 Fredrikstad, pb.352, 1601 Fredrikstad oil cargo. But the moment a Tlf: 69 36 87 70 - Fax: 69 36 87 71, E-mail: torbjorn@seut.no, www.seut.no shipowner loads CPP or lubricating oil, he has to As shown in the drawing the comply with following valves establish a "double requirements. barrier" closing. Make the valve able to bind off lines with all 1) Instantaneous rate of known liquids and gases. discharge should be less than 30 litres per nautical mile. Also in the matter of bleeding 2) Vessel should be more than and take out samples of the 50 miles off nearest land. pipeline you can use the valve 3) Tanker should be en route. together with pressure and 4) Tanker shouldn't be in a volume measures. special area. 5) Discharge should be through This valve can be delivered in Carbon steel, ST.52.3, in overboard line. stainless: AISI 317L and in 6) Operational ODCMS. Duplex material. 7) Total quantity of oil discharged should be less than 1/30,000. While complying with first six conditions is easy, compliance The SUET valve placed in with the 7th condition poses an Drain/Outlet Pipes from extra burden. The operator has tanks/reservoirs prohibit any to keep the slops on board. accidental discharges of Since most of the chemical toxic/forbidden chemicals to the loading terminals do not have environment. With a seal in the shore reception facilities, the top Bolt/Nuts it will convince the operator has to arrange for a Environmental Authorities and barge for slop disposal. The the Insurance Co. that it will be total quantity of wash water fool proof regarding wrongful after settling and discharging as opening of the valve. per MARPOL will be too little to justify the use of barge. If a vessel is trading in Seut blind flange valves Wherever you require security when blinding: special area, there is another A product based on quality, efficiency, simplicity. Liquids Oils Solvents Chemicals problem of huge quantity of Easy to operate and reliable in use. Suitable for: Gasses Steam and water Ships Rigs and platforms Refineries Terminals wash water, as most of small Chemical and petrochemical industries chemical tankers do not have inert gas fitted on board. The Approved by: DET NORSKE VERITAS - NUREAU VERITAS - LLOYD'S REGISTER OF SHIPPING layout of piping and pump - U.S. COAST GUARD - AMERICAN BUREAU OF SHIPPING - RINA ITALY GERMANISCHER LLOYD - USSR REGISTER OF SHIPPING system is not suitable for August/September 2008
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TECHNOLOGY - CHEMICAL TANKER DISCHARGE If we compare the property and effect of CPP and lubricating oils with some of the Cat Y chemicals, we find that larger quantity of harmful chemicals are allowed to be discharged compared to less harmful Annex 1 cargoes. When we compare the total quantity of chemicals transported with the total quantity of CPP, we find that total CPP carried in any year is 20 times more than chemical cargoes. Furthermore, the average size of product tankers is 50,000 dwt or more, while the average size of parcel chemical tankers is 12,000 to 20,000 dwt. The larger size and greater number of oil tankers mean in real terms that they will discharge much larger quantities of oil residue, which calls for very strict measures. While due to the small size and relatively small number of chemical tankers, the sum of all the cargo discharged will be much less than the total sum of oil residue discharged at sea. If we compare the total CPP imported in the US with the total lubricating oil imported, we find that on average the total CPP imported is 170 mill tonnes compared to only 610,000 tonnes of lubricating oil. (See graph). Now take the case of CPP and lubricating oil carried in a chemical tanker. The total quantity of Annex 1 cargo carried is not more than 20% of the total cargo in a year. Hence the total oil discharged at sea will be a fraction of similar chemicals discharged at sea. If the discharge criteria of Annex II cargoes, is applied to Annex 1 cargoes carried in modified chemical tankers it will be of great relief to chemical tanker owners in the present day scenario of spiraling expenses. 1) Instantaneous rate of discharge should be less than 30 litres per nautical mile.
Forecast seaborne trade of liquid chemicals (1982-2007, mill tons) 70 60 50 40 30 20 10 0 1985
1990 Organics
1995 Inorganic s
2) Vessel should be more than 50 miles off nearest land. 3) Tanker should be en route. 4) Discharge should be through overboard line. 5) Operational ODCMS. 6) The total residue in the tank should be less than 150 litres after discharging. 7) Vessel should be in water having a depth of more than 25 m. 8) Total carrying capacity of tanker should not be more than 20,000 dwt. 9) She should not be used exclusively for carrying Annex 1 cargoes. If it is not possible to extend all the criteria for discharge of Annex II, at least the parcel chemical tankers of less then 20,000 dwt should be exempt from "total discharge should be less than 1/30000" requirement of the TO discharge criteria.
2000 Triacylglycerols
2003
2007
O thers
*This article was written by Capt D Kishore who graduated from TS Rajendra in 1979. He joined Shipping Corporation of India as a deck cadet. Subsequently, he has served in most types of vessels. He joined Executive Shipmanagement, Singapore in 2001 as master on a chemical tanker and later joined Samundra Institute of Maritime Studies (SIMS) in 2004 as a faculty. At SIMS he is lecturing in tanker (oil & chemical) subjects, plus BTM and other safety courses.
Speed claims...fact or friction? The CASPERÂŽ Service provides technical managers with the information they need to sustain highest propulsion efficiency in a changing technology environment for drydock treatment, planned maintenance and performance monitoring systems.
www.propulsiondynamics.com
Hull Performance Monitoring U Fuel Conservation U Emissions Reduction Š2008 Propulsion Dynamics, Inc. All rights reserved.
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TECHNOLOGY - TANK GAUGING
Honeywell builds on Enraf purchase
E
It is just over a year since Honeywell agreed to buy Enraf Holding, a division of the privately held Dutch company - Enraf Instruments.
nraf Holding consisted of six groups, which at the time of writing are being merged into the Honeywell range of services, a task which is almost complete. Of specific interest to the marine sector is Enraf Marine Systems, which is now part of Honeywell Marine Solutions, while its land-based division - Enraf Tanksystems becomes Honeywell Tanksystems. Philippe Despagne, managing director of Honeywell Marine Solutions told TANKEROperator that the buyout gave the former company a greater advantage worldwide, especially in the service sector as Honeywell was a well established name with operations around the globe.
Of particular advantage to the shipping sector is Honeywell’s presence in South Korea, Japan, China and the Middle East. The company also has a large research and development capability. Enraf being a small to medium size concern did not have all the advantages that can come by using economies of scale, he said. Another advantage is that by having the entire marine portfolio in one division, a 'one stop shop' service can be offered, involving integrated systems. Honeywell has already gained experience by installing integrated systems (IAS) on LNG carriers building in South Korean yards. Despagne claimed that the division already had 60% of the LNGC market and it is already installing a similar
integrated system on board a large crude carrier having developed the software. Products include tank gauging, portable level gauging, fire detection systems, automated integration systems, portable devices for gas detection in ballast tanks and a portable topping off device. Retrofitting wireless technology on vessels' bridges and also newbuilding installations is another area of potential for the company. With 15% of the world's tanker fleet over 20-25 years of age, the retrofit market was seen as being very much "alive and kicking". Based on the experience of work in refineries, Honeywell is also introducing the concept of front end engineering demand (FEED) to both shipowners and shipyards.
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telephone + 47 71 21 96 00 fax + 47 71 21 96 90 e-mail: office@brunvoll.no www.brunvoll.no August/September 2008
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TECHNOLOGY - TANK GAUGING
closed gauging
“
With 15% of the world’s tanker fleet over 20-25 years of age, the retrofit market was seen as being very much “alive and kicking”.
”
International trade fair Hamburg Meet us at SMM 2008 Stand no. 60, Hall A1
The HERMetic UTImeter Gtex is a portable electronic level gauge for closed gas tight operation resulting in increased safety and efficiency. The unit is used for custody transfer, inventory control measurement and free water detection on marine vessels. Connected to a HERMetic vapour control valve, the UTImeter Gtex avoids any gas release during operation and enables 3, optionally 4 measurements in one single operation, Ullage, Temperature, Oil-water interface level and Innage. By increasing safety and efficiency, Honeywell Enraf Tanksystem helps customers improve business performance.
For more information visit our website www.tanksystem.com or call +41 26 919 15 00 © 2008 Honeywell International, Inc. All rights reserved
Training is another important aspect, involving both Honeywell employees and seafarers on board vessels. Last year, the company introduced a planned maintenance scheme for its systems whereby the crew could be trained to the first level of maintenance, thus allowing the service engineer to gain as much information as possible before coming on board and starting a repair or maintenance project. Despagne claimed that Honeywell was No 1 in the portable level gauging market with a 60% share and one major competitor and around 25% of the fixed tank gauging market with three main competitors, coming in at No 2. Honeywell also boasted the No 1 position in LNGC IAS with 75% of the market. For example, Teekay has ordered an IAS for one of its newbuildings in South Korea. Over 900 tankers have been fitted with tank radars thus far. He explained that even an 8,000 dwt to 15,000 dwt chemical tanker still had around 14 tanks plus a slop tank to take into consideration. He also said that the systems needed to be made to suit the product as for example, the same crude oil gauging system would not work in a tank full of vegoils. As mentioned, the service side of the business is becoming of increasing importance and the company thought that today is was essential for shipbuilders and owners to look for a powerful network of service stations to provide a seamless and timely service concept. To market this concept, Honeywell is active in 195 countries and boasts a short response time with spares shipped within 24 hours of a request. For the future, wireless technology is seen as the way forward. In addition, Honeywell is working on the ballast tank gas detection technology with enhanced safety systems built in and a portable topping off device to measure the level of ullage at the top of a tank. Taking advantage of the lead in IAS technology is another area to be exploited and the further development of the 'one stop shopping' policy for both yards and owners resulting in the supply of entire integrated systems, plus the FEED concept Today, under the corporate banner of Honeywell International, the Automation and Control Solutions division under ceo Roger Fradin consists of Honeywell Marine Solutions, which in turn controls Honeywell Enraf Tanksystems, Honeywell Enraf Terminal Automation, Honeywell Enraf Fluid Technology, Honeywell Enraf Calbron Solutions and Honeywell Enraf Contec. Honeywell Marine Solutions France is responsible for all tank level measurement and control activities and last year recorded $29 mill in revenue; Tanksystems is based in Switzerland and markets the portable tank level gauging systems and last year posted revenue of $20 mill; Norway is the home of ELTEK fire detection and fighting systems with a 2007 revenue of $6 mill; the LNG IAS division is based in South Korea and recorded revenues of $30 mill last year and finally US-based BW offers portable gas detection equipment and TO boasted a revenue of $5 mill for 2007.
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TECHNOLOGY - TANK CLEANING
The Science of Cargo Tank Cleaning If you ask any commercial or operational management company of a chemical or petroleum product tanker, they will probably say that tank cleaning is the Achilles Heel of the entire operation*
C
ertainly it is the rate determining step and very often it is the main reason why a vessel may or may not load its nominated cargo. But contrary to what you may hear, tank cleaning is not difficult; it is sometimes confusing and very often frustrating, but there is always a reason why something has happened and identifying this reason will very often resolve a problem. The importance of experience can of course never be underestimated, but as a great deal of experience has already retired, or is in the process of retiring, it has to be said that experience is not critical. It is actually noticeable that the days of the little 'black book' containing tank cleaning secrets are clearly becoming numbered, not just because the number of individuals with the experience is decreasing but also because many of the most effective tank cleaning secrets are pre-MARPOL regulations and based on using tank cleaning materials that are now prohibited. The use and availability of tank cleaning materials today is far more strictly controlled in terms of marine pollution, but as a direct consequence, the potency of many of tank cleaning materials has diminished, which does have an impact on the tank cleaning. Safety is also a far more significant concern and the tendency is to only use tank cleaning materials that are non hazardous, non toxic and non flammable. This too also affects the efficiency of the tank cleaning materials and does have a bearing on the tank cleaning, particularly when coated cargo tank surfaces are involved. When one considers that most tank cleaning materials are detergent based and detergents contain surface active ingredients, it is clear that the primary role of such products is to 'clean the surface of the cargo tanks'. If the cargo tanks are lined/plated/clad with stainless steel, these products are completely satisfactory, but if the cargo tanks are lined with organic or inorganic based paints that allow previous cargo residues to become
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A large cargo tank with a deepwell pump, drop line and a cleaning machine.
trapped inside the matrix of the coating, surface active cleaning materials are largely ineffective. This is mainly common sense, but knowing and understanding this is sometimes difficult to comprehend when there are apparently no other solutions available. What is tank cleaning? All tank cleaning procedures are a logical sequence of events that will ultimately lead to the objective of loading the next nominated cargo. The precise nature of the cleaning process is specifically determined by the chemical and physical properties of the cargo being cleaned from, the type of lining inside the cargo tanks, the size and dimension of the cargo tanks and the pre-loading specifications of the next nominated cargo. The key to any successful cleaning operation is very simply knowing how far to clean and determining whether each step of the cleaning has been effective. In practice most tank cleaning procedures are very similar, because there are not that many different variables available to the vessels:
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i) Fixed tank cleaning machines or portables (or both). ii) Water or solvent for the pre-wash? iii) Reaction of the previous cargo(s) with the cargo tank coating. iv) Cold water or hot water? v) Tank cleaning materials or not? Determining the correct plan is essential, but this can usually be gained from the many and varied tank cleaning guides available on the market. Of far greater significance and importance is the monitoring of each step of the plan, in order to make sure that it has actually been carried out. Tank cleaning guides are useful but they can also be extremely misleading for the simple reason that inexperienced operators will tend to use the guides as a definitive method for any particular tank cleaning. This is a mistake which can and does cause problems. Still today in legal disputes on whether a vessel is deemed to have cleaned (or not as the case may be) with "due diligence" in the preparation of the cargo tanks prior to loading the nominated cargo, legal reference is drawn 57
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TECHNOLOGY - TANK CLEANING as to whether the vessel cleaned within the guidelines stipulated in one or two of the most commonly used and published tank cleaning guides. One has to ask the question, "how can the outcome of a legal case be influenced on a ‘guideline’?" By definition, this is an indicator and not a definitive procedure? The answer to this question is quite simply that there is no other indicator, apart from experience, which is almost impossible to quantify. In the same breath, many chemical cargoes are now only loaded if a wall wash inspection is found to be within a set of pre-determined specifications. Achieving a wall wash standard (particularly in a coated cargo tank) is extremely challenging and requires extensive tank cleaning. If a vessel fails to meet the required specifications, it implies that the vessel is still dirty, yet in many cases this is just not true. Wall wash specifications are very often set to the same levels of magnitude as the export specification of the cargo being loaded. For example: i) Zero hydrocarbons in the wall wash and zero hydrocarbons in the final loaded cargo. ii) 0.5 ppm inorganic chloride in the wall wash and 0.5 ppm inorganic chloride in the final loaded cargo. In some cases, the wall wash specifications are actually stricter than the export specifications of the cargo being loaded. But we are now moving beyond a tank cleaning issue. How can a cargo tank be rejected because an independent load port inspector finds a wall wash sample does not meet a set of pre-determined specifications? Specifications that actually apply to all cargo tanks of all vessels, irrespective of vessel type, volume, shape, coating type and so on. The wall wash test by definition is random and the sampling technique (which can only be carried out on accessible areas of the cargo tanks which are furthermore only representative of between 10 and 15% of the internal surface area of the cargo tank) is impossible to standardise. Yet the sample is analysed to the highest levels of analytical precision in the cargo supplier's laboratories and it is these results that ultimately determine whether a vessel is clean or not and of course whether the nominated cargo can be loaded. This goes against all the laws of science, which suggest that the validity of any analytical procedure is directly governed by the quality of the sample. If the sample is not representative/typical/reproducible/ standardised, the analytical procedure is not valid. It is hardly surprising that tank cleaning is considered to be the weak link of the operational chain, but realistically the odds appear to be stacked well against the vessels. Failing a wall wash inspection does not always mean that the tank cleaning plan has been ineffective; similarly it does not mean that the next nominated cargo cannot be successfully loaded. On the contrary, passing the wall wash inspection does not guarantee that the next nominated cargo can be loaded without the risk of contamination. Yet still there is pressure to achieve this standard and without acceptance, the vessel does not load and the competence of the crew is questioned. This is where monitoring the tank cleaning procedure comes into its own. Indeed, it is found that the wall wash test is actually a very good means of monitoring the efficiency of any tank cleaning procedure, because in many cases the cargo tanks are visually clean, but still there are residues inside the tanks that are invisible to the naked eye, that can be picked up in a wall wash sample. Confirming the presence of these residues is only half of the solution. Identifying what the residues are and removing them is the key to a successful tank cleaning procedure. The hydrocarbon or water miscibility test is one of the most important parameters on a standard methanol or acetone wall wash. But the test is
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TECHNOLOGY - TANK CLEANING not specific and does not tell the analyst what the hydrocarbon is. In terms of monitoring tank cleaning, it is very important to know the nature of the hydrocarbon, because this can directly impact on the subsequent cleaning steps. It could be: i) Previous cargo. ii) Tank cleaning chemicals. iii) Old cargo absorbed into coated surfaces. iv) Reaction of the wall wash solvent with the coating. v) Other - for example hydraulic oil, leaking adjacent cargo etc. Different hydrocarbon products also have different responses to the hydrocarbon test, depending on the relative solubility of the hydrocarbon in water. The most common
hydrocarbon products to slip under the net of the hydrocarbon test are aromatics, because many aromatics have a very slight solubility in water. For example toluene has a solubility in water of approximately 0.18%, meaning that if the wall wash sample contained for example 0.175% toluene, it would pass the hydrocarbon test. Clearly having 1,750 ppm of toluene in a wall wash sample is not the preferred objective, yet this is quite possible. Accurately monitoring tank cleaning goes beyond just 'passing' a wall wash sample and if done correctly, the cargo tanks will actually be much cleaner than passing an independent wall wash inspection. The responsibility for the tank cleaning is
always on the vessel and in the case of a cargo tank rejection or cargo contamination claim there is no recourse on the choice of tank cleaning guide or the validity of the independent load port inspection. The vessel has to know how clean the cargo tanks are before any cargo is loaded and without monitoring the tank cleaning process this TO is impossible.
*This article was written by Guy Johnson, BSc (Hons) MRSC CChem CSci), director L&I Maritime (UK) operations@limaritime.com Tel. +44 1909 532 003
Super stripping system fitted on board small chemical tankers Five of eight 5,600 dwt double hull chemical tankers delivered to Bergen-based Mowinckel are fitted with a Norclean super stripping system. The other three are still under construction. According to Mowinckel Ship Management's Ove Berntzen, the advantage in fitting the systems is the reduced time and work needed for tank cleaning. "In many cases there is no need to gas free the vessel and go down to collect the remaining liquid", Berntzen said. "When we are using the super stripping system, the remaining liquid is only 0.5-1 litre in each bilge well. If, for instance, the remaining cargo is gasoline, we just run the nitrogen system to clear out the remaining liquid," he explained. For these types of vessels, the requirements for stripping is a maximum of 75 litres
remaining in each tank with the associated piping system. He said that during stripping tests on board one of the sisterships, the remaining cargo was found to be 24-50 litres. "As we comply with the stripping requirements by the use of 'normal' stripping, we do not use the super stripping system during normal unloading operations", he explained. Each ice class tanker has a cargo carrying capacity at 98% of 6,350 cu m and 138 cu m of slops and has 13 cargo segregations each with a double valve. They are fitted with eight 200 cu m per hour, four 150 cu m per hour and one 100 cu m per hour centrifugal pumps. They are provided with a cargo stock on each side and a common line of 200 mm port and starboard for and aft of the manifold. All the tanks can be discharged through any
of the common lines and/or separately through the manifold. A stern line of 200 mm is also fitted. Each presentation flange from the COT is of DIN standard and 150 mm. The entire cargo system is constructed of stainless steel and the vessels are coated with MarineLine. As well being fitted with the Norclean super stripping system, a nitrogen system was also installed in the tanks for inerting and purging. Out of the eight DNV classed vessels, the Frosta, Troma, Lycian, Lydian and Ionian have been delivered, while the remaining three - Hadra, Hitra and Vinga will follow this year and next. They are all products of the Celik Tekne Shipyard in Tuzla, near Istanbul. Of the vessels in service, Frosta is chartered to Esso Norge, Troma, Lycian and Lydian to TO StatoilHydro and the Ionian to Gefo.
Left: The stripping requirement is a maximum of 75 litres for this type of vessel. Right: Troma is long term chartered to StatoilHydro.
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SMM set to break records
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This month's SMM shipping exhibition, the 23rd to be held in Hamburg will be the largest ever, as the event has already attracted more than 1,800 exhibitors from over 50 countries, 250 of which will be new to SMM.
o cope with the number of stands, the floor space has been enlarged from two years ago by about 10,000 sq m to 87,000 sq m to cater for the expected 47,000 visitors. SMM's organisers have developed a system whereby a visitor will be able to obtain an admission ticket promptly and easily and thus avoid waiting at the cash desk. With the new online ticketing, a visitor will now have the opportunity to order an admission ticket from home via the internet. Tickets can be booked and paid for instantaneously. Payment is exclusively by credit card. A visitor can also take advantage of the convenience of online ticketing by receiving an invitation ticket from an exhibitor. Printing tickets out at home saves time and ensures you can arrive at the SMM without stress, the organisers said. Upon arrival, the visitor will be confronted by 11 halls, seven of which are new. A new 'sales lounge' will be built in the Central Entrance -upper floor. Information will be available on SMM Istanbul to be held 21st 23rd January next year in the Turkish city. SMM 2008 will be opened by German Federal Minister of Economics and Technology Michael Glos at 19.00 on 22nd September. At the opening ceremony new EC vice president in charge of transport Antonio Tajani, honorary president of the Community of European Shipyards Associations (CESA) Corrado Antonini and Hamburg's Mayor Ole von Beust will give addresses. Several side events are also taking place including Europe INNOVA Standards Network (EUROMIND), which will be organising an international workshop on 'Improving Interoperability in the Shipbuilding Supply Chain' to be held on 23rd September at VSM - Verband für Schiffbau und Meerestechnik e.V. The shipbuilding industry is characterised by intensive co-operation between different stakeholders (shipbuilders, suppliers, 60
classification societies and others) and the increasing demand of working in highly flexible networks, with often changing project arenas. This intensive co-operation is apparent in all phases of shipbuilding projects from conception, design to production of the ship until end of life. Leading edge shipbuilding production is aimed at the integration of latest developments in ICT and logistics in the local and distributed shipbuilding process. Without the interoperability of ICT systems, which require standards and compatibility between standards, advanced forms of E-business are impossible. Real progress towards reducing production cost and lead time depends on a deeper understanding of the integration of internal processes and those of suppliers into an 'integrated production system'. The EUROMIND network, a project funded by the European Commission, defined a generic highly flexible reference standard through a pragmatic bottom-up approach by borrowing and learning from standards that are best in their field and extending these for the use in the maritime industry. The consortium will present its results during a special event, organised by VSM in Hamburg. The workshop on 23rd September, will start with a walk-in session and continuing with a workshop in the afternoon with guest speakers from the European Commission, the industry and European associations. Of course, the number of exhibitors are far too numerous to be mentioned in this TANKEROperator preview. However, we have endeavoured to mention a few together with their exhibits in strict alphabetical order. Advanced Polymer Coatings will be showing the technology that has persuaded leading shipowners worldwide to specify the coating- MarineLine®. Donald Keehan, APC's chairman, the developer and manufacturer of the MarineLine® coating system, said, "The first ship coated with MarineLine® was in 1994. In
2006, we announced in Hamburg at SMM that the milestone 100th tanker ship had been coated with MarineLine®. Just last year, 107 tankers were coated with MarineLine®, and in 2008 we expect to break that record, and we are doing larger tankers then ever before. At SMM 2008, this fall, we will present the 300th MarineLine-coated ship." Demand for MarineLine® has led Advanced Polymer Coatings to open offices in the major shipbuilding centres across the world. Existing offices, including Advanced Polymer’s headquarters in Avon, Ohio US, MarineLine Europe in the UK, and MarineLine Turkey in Tuzla, have now been joined with new offices such as Advanced Polymer Coatings China in Shanghai, MarineLine Korea in Pusan, MarineLine Japan in Shizuoka, and Advanced Polymer Coatings SEA in Singapore. At SMM 2008, the company is preparing to launch an application company that will offer services in applying MarineLine® and other coatings. "With our vast experience gained in the past 18 years with regard to MarineLine® application, heat curing, and inspection, we know we can take coating application to another level, thus ensuring for shipowners and shipyards that their coatings work is done professionally and will meet all the warranty requirements." Alfa Laval will display its PureThinking solutions PureBallast and PureVent, as well as the new S and P Flex range separator module and the F-152 fuel oil filter. The focus will also be on integrated ship support, which combines spare parts procurement with other value-added services. Similar to Alfa Laval's preventive maintenance initiative, it provides a way of streamlining and safeguarding a supply chain, enabling faster and smoother communication that results in more economical operation. Alfa Laval will also unveil AQUA - a new freshwater generator - as well as the new Gunclean Toftejorg i65 D tank cleaning machine.
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SMM PREVIEW Alphatron Marine will be presenting a comprehensive range of marine electronics including Alphaminicourse: The Alphaminicourse is a gyro compass range including a fully redundant DNV approved interswitch according to OSV rules. Alphaseapilot: The Alphaseapilot is a series of autopilot systems, ranging from a basic autopilot MFC to the fully extended MFA line. Alphaline MF: The Alphaline MF is a full type approved line of marine instruments, combining analogue and digital read-out into one single instrument. This range includes: wind information system meteorological system rate of turn indicator gyro repeater shallow water echosounder udder indicator system engine RPM info centre Alphabridge: The Alphabridge is a modular bridge console concept for small, medium and large vessels. Alphabridge T: Apart from the "standard" Alphabridge a full network based version
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is available, which is produced in close cooperation with Transas and JRC Japan Radio Company. AlphaConnect & AlphaAnnounce: The AlphaConnect telephone exchange and the AlphaAnnounce Public Address system will also be displayed at the exhibition. Alphatron JRC river radar JMA 609: The Alphatron river radar JMA 609 has been designed in close co-operation with JRC, resulting in a very sophisticated river radar targeted for the inland shipping market. Alphatechnique: Alphatechnique, a subsidiary company of Alphatron Marine, formerly Progress technique, will also be present at the Alphatron booth 334 and will be displaying automation and control systems such as; Alphatechnique bulk handling system Alphatechnique alarm monitoring system Alphatechnique tank monitoring and control system Altro Transflor is exhibiting its unique maritime flooring, Gallium. It is the only fully-approved, non-PVC slip resistant lightweight flooring on the market. Gallium offers enhanced underfoot slip and high levels
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of fire resistance and wear resistance. It is full compliant with MED under the guidance of the IMO and full USCG approval. Leading pump manufacturer Bornemann will demonstrate how its intelligent pump solutions are able to meet growing demands in shipbuilding. Bornemann's flagship product is its screw spindle pump, which comes in various design and performance sizes and is used depending on the task on hand and the requirements. For special requirements, Bornemann offers individual package solutions, including monitoring and control high-end pumps for special requirements. The screw spindle pumps are used as loading pumps on tankers, as transfer pumps for heavy-duty HFO quantities and as lubricating pumps for supplying the main engine. Bornemann progressive cavity pumps are used as sludge pumps, bilge pumps, as pumps to feed oil extractors, and to empty tanks (residue pumps). Caterpillar Marine Power Systems (CMPS) will showcase a wealth of advancements achieved in technology, manufacturing, customer support and financial solutions.
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SMM PREVIEW Caterpillar has two marine engine brands Cat® and MaK. MaK has been on show since the first SMM back in 1960. The technology display segment will present emission reduction solutions like ACERT™ Technology, Caterpillar common rail (CCR) and flexible camshaft technology (FCT). Also on display will be the most advanced MaK low emission engine technology (LEE). Finally, a new version of the MaK DICARE engine diagnosis and monitoring system can be seen. Chemring Marine, parent company of Pains Wessex, is exhibiting the Pains Wessex Mark 8 range of pyrotechnics. Sales manager Holger Muegge will be available throughout the exhibition to meet customers and distributors. Both managing director Robert Hill and product manager Keith Bradford will also be visiting from the UK. Also exhibiting is Chemring's UK distributor, Cosalt International. Çiçek Shipyard's stand will display recent ships completed or under construction,
Chemring’s product manager Keith Bradford.
including IMO II chemical tankers ranging in size from 15,000 dwt to 26,000 dwt, some of which were built to ice class 1A standards for North European trading; a 1,300-teu multipurpose breakbulk/container vessel; and a 58,000 dwt Supramax bulk carrier, the
largest vessel ever to be built in Turkey. New at SMM will be the yard's 3,150 dwt coastal tanker design, which offers early delivery dates, and its handysize bulk carrier. The first 3,150 dwt tanker is now under construction and is due for completion shortly as an IMO II chemical tanker. Various versions are available, including refined products and bunker tanker options. To be classed by Bureau Veritas and constructed to meet ice class 1B standards, these ships will be capable of worldwide trading, transporting oil products, chemicals and vegetable, animal and fish oils. MarineLine coatings have been selected by Çiçek to give the ability to carry a wide range of cargoes while high manoeuvrability is aided by the choice of twin azimuthing propellers and a bow thruster. Furuno Electric will be presenting INS Voyager the Integrated Navigation System (INS) and the new Bridge Alarm System BR1000. In addition, the Furuno INS training centre (INSTC) will be introduced: INSTC was established in Copenhagen in
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.
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SMM PREVIEW
Furuno will be introducing its training facility.
2005. The sole aim of the training centre is to educate the seafarers on the correct operation of the navigation equipment installed on their vessels - both during ordinary day-to-day
operation and under extreme conditions. The training center offers ECDIS education, bridge management training and product/ system training. To ensure and maintain a high level of quality in the ECDIS training, the education programme has been audited and certified by DNV SeaSkill™. This allows Furuno to issue official ECDIS certificates in compliance with IMO STCW 95 and course code 1.27, which are accepted by the maritime authorities. Also, the new VSAT and FleetBroadband systems will be presented. Hatlapa Marine Equipment will be presenting its range of steering gear, which has been further enlarged to meet the requirements of the newest 13,000-teu containerships, which have rudder torques up to 10,000 kNm.
After several European company buyouts, Hatlapa now claims to be the only non-Asian manufacturer of large ram-type steering gears. All its competitors are Japanese makers who operate mainly as licensors in South Korea and China. In addition, Hatlapa has further developed its range of small compact steering gears, starting at rudder torques of 30 kNm ideally suited for smaller vessel types. With the start-up of Hatlapa-Korea in early 2007, the ability to serve the Asian and especially the South Korean shipbuilding market has been extended still further. Hatlapa's co-operation with rudder supplier Becker Marine Systems (BMS) represents a valuable addition. The companies are aiming at extending their knowledge range through an intensive exchange of experience, to provide
Ballast water solutions - one of the highlights of the show Many of today's ballast water systems will be on show at SMM, due to the new IMO regulations on ballast water management, which have motivated manufacturers to come up with a series of innovations. Some of these will be presented for the first time at the SMM 2008. All new vessels will be required to filter all ballast water before taking it on board and before discharging it again soon. Along with the 12 bill tonnes of ballast water taken on board every year, vessels also carry an armada of stowaways to other parts of the world - including plankton, invertebrates, fish larvae, plants, and also pathogens. According to the environment protection agency World Wide Fund for Nature (WWF), there are more than 4,000 different species being carried in ballast water to new shores, sometimes with disastrous consequences. To back the arguments for the IMO ballast water regulations, the BSH (Federal Maritime and Hydrographic Agency) conducted an analysis as early as 2004 showing the costs for fishery, aquaculture, coastal facilities, etc resulting from this transportation of organisms. For example, the shipworm has caused Eur50 mill worth of damage in the Baltic Sea since 1993, and the Chinese mitten crab between Eur73.5 mill and Eur85 mill. The 'International Convention for the 64
Control and Management of Ships' Ballast Water and Sediments' put forward by the IMO in 2004 aims to put an end to uncontrolled migration of organisms to foreign waters. From 1st January 2009, ballast management will be introduced on ships, preventing uncontrolled exchange of water. By 2016 all ships, both new and old, will have to be fitted with a cleaning system - a lucrative market in view of the 44,500 ships of more than 300 gt trading today, according to figures of the ISL (Institute of Shipping Economics and Logistics, Bremen). Bremen-based ROW, a member of Veolia Water Solutions & Technologies, will showcase its new CleanBallast system at SMM. Following extensive onshore testing, the system has now been delivered to a shipowner for a live application. The system comprises DiskFilters and the EctoSys® electrolysis system for disinfection, treating the ballast water inline at full flow rate, and guaranteeing compliance with the IMO Performance Standard D-2. The northern German concern Hamann, a manufacturer of marine purification systems, will presents its three-part Sedna system. Hamann started to develop this system as early as 2001 and has IMO final approval and more recently from the German flag administration. The system works with cyclones and filters. Any remaining organisms are killed by means of a chemical in the third cleaning stage. Envio Water will show its EnvioMar® system, which kills micro organisms in
ballast water after a hydrocyclone has removed the suspended particulates. This system can handle up to 5,000 cu m of ballast water per hour. The results of the onshore test will be available at SMM. Mahle NFV will have its OceanProtectionSystem OPS for mechanical/physical ballast water treatment on the stand. It is another system that will be show cased for the first time at SMM. The approval procedure has just started. Alfa Laval has a lead in this field - the Swedish company already has IMO approval for its new development PureBallast, a chemical-free ballast water treatment system, and took the first order for it in August 2007. In total, Alfa Laval already has orders for 20 systems. Alfa Laval received its certification from DNV on behalf of the Norwegian flag administration. In October 2007, the NEI Venturi Oxygen Stripping (VOS) system was issued with type approval certification by the Liberian Bureau of Maritime Affairs. This included a technical review by ABS. The IMO Convention requires type approval certificates from flag administrations but not class. Earlier, Alfa Laval and Hamann had IMO G-9 Basic and Final Approval for their active substances. However, the IMO G-9 Approval process does not apply to VOS because it does not use an active substance, according to NEI. NEI will be exhibiting at SMM with its German agent DVZ-Services.
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SMM PREVIEW
Around 37 Dutch companies will be exhibiting in the Holland Pavilion.
common rudder systems. The range of vane type steering gears currently exceeds 1500 kNm. With this additional development, Hatlapa claims to be the only supplier worldwide offering all available types of steering gears. The importance in recent years of frequency inverter controlled AC motors has meant that more than 1,000 winches with this motor type have been delivered. This development was patent-protected at an early stage and is differentiated by the creation of nominal pull even at zero speed. This is a key advantage for mooring winches in their holding function. The feature is also available as ex-proof design for all kinds of tankers and gas carriers. Holland Marine Equipment organisation will be putting together the Holland Pavilion at SMM. Some 37 Dutch maritime suppliers will present their latest technologies in the pavilion, located in Hall B2, lower floor. The pavilion will measure 840 sq m and incorporate a 'superyacht lounge'. The Imtech Marine Group will be officially launched at SMM. It is an independent group of well established Imtech companies who have joined forces to offer the marine industry a wide range of technical solutions. The group offers tailor made, innovative solutions (systems and services) in automation, nav/com, HVAC (heating, ventilation & air condition), fire protection, energy and AV entertainment. It includes companies such as HDWHagenuk Schiffstechnik, Imtech Marine & Offshore, Imtech Schiffbau-/Dockbautechnik, Radio Holland Group and Royal Dirkzwager. The Minimax Group will be showing its 66
new Minifog marine XP high-pressure water mist extinguishing system. Minifog can be deployed in all vessel areas - whether cabins, corridors or in the engine room - and with one single sprinkler it has an area of coverage of up to 32 sq m. Compared with classic sprinkler systems, Minifog requires up to 90% less extinguishing water in the event of fire. Due to this extremely low need for water, the system's piping and water supply are small and easily laid out. Less need for space for piping in turn significantly facilitates retrofitting. One single Minifog sprinkler achieves can cover an area of up to 32 sq m. In total the Minifog system requires far fewer sprinklers than before. Consequently, the piping network has fewer branches and fewer fittings. As a side effect this not only means a saving in system costs but also a lower total extinguishing system weight. Fuel costs can also be reduced.
Rovsing Dynamics will join together with shipowners, classification societies and machinery manufacturers at SMM to exchange views and experience with vessel condition monitoring. Condition monitoring of critical vessel machinery is rapidly becoming an industry standard. To meet the increasing demand, Rovsing, a MAN Diesel approved condition monitoring supplier, will provide a forum on 24th and 25th September at SMM. The open seminars are entitled "Vessel Condition Monitoring for Condition Based Maintenance - What to gain and how to get there." Shipowners, who have implemented monitoring solutions together with Rovsing Dynamics, will share their practical experience with monitoring of main engine bearing wear, thrusters and turbochargers. These include PRISCO (tankers), Reederei F Laiesz (car carriers) and Scandlines (ferries). DNV, Germanischer Lloyd and Lloyd's Register will present their guidelines for a successful condition based maintenance strategy, supplemented by the requirements of MAN Diesel. MAN now recommends that shipowners completely disregard regular open-up inspections of the crank-train bearings of certain engine types with an approved bearing wear monitoring system, among other things. SAM Electronics, an L-3 Communications company will exhibit a wide range of equipment at this year's SMM. The company will display a series of newgeneration automation, navigation, power supply and energy distribution systems, as well as safety, security and infotainment systems, together with equipment from other L-3 companies.
SAM Electronics will be showing its Ship Control Centre (SCC).
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SMM PREVIEW Major exhibits include a complete Ship Control Centre (SCC) bridge assembly integrating navigation, communication, propulsion control and alarm monitoring functions on ergonomically-designed, standardised consoles via a series of four new 23-inch flatscreen monitors. Realistic visual simulation on three 40-inch monitors, supplied by Rheinmetall Defence Electronics will be featured in co-operation with the newly established Hamburg Marine Training Center (MTC). Key sub-assembly components based on the NACOS XX-5 range include new-generation series 1100 MULTIPILOT, TRACKPILOT and CONNINGPILOT units together with a CHARTRADAR and CHARTPILOT ECDIS. The navaid systems will be exhibited alongside the latest high-precision and typeapproved Speedlog SATLOG SLS 4120 with integrated alarm functions and which can be used in all ambient conditions. A new Integrated Navigational Data Display (INDD) is capable of showing CONNING functions at numerous on board locations. Energy and drive activities will also be highlighted. The latest diesel electric
propulsion systems from 1 MW up to 25 MW will be exhibited, as will a new ecological power connection system, SAMCon, housed in a standard container for interfacing between on board 6.6 kV electrical installations and Alternative Maritime Power (AMP) sources on piers. Also featured for the first time will be a switchboard system (ISA) comprising complete process monitoring of the total network, including visualisation by touchscreen technology and a new network safety concept. Other key exhibits include an integrated and modular high-end automation system (IAS) Damatic from L-3 Valmarine of Norway, which has modern human machine interface solutions for crew and maintenance personal, of which over 600 systems have been sold. The latest version of L-3 MAPPS's, Canada, Safety Management System (ISMS) will be similarly demonstrated in association with the IAS assembly. The latest dynamic positioning systems from L-3 Dynamic Positioning and Control System of the US will be shown, as well as the latest echo sounders and sonar systems
from L-3 ELAC Nautik of Kiel. Finally, ship operation sensor systems will be demonstrated by APSS, recently acquired by SAM, and cost-effective window wiper systems from WG Schulz of Hamburg will also be exhibited. Solar Solve Marine's existing ranges of marine roller blinds and solar screens will be on display as well as SOLASAFE-SR, the latest product launched earlier this year. The exhibition stand will be located in the British Pavilion, in partnership with the British Marine Equipment Association. The new SOLASAFE-SR scratch resistant anti glare roller screens are expected to generate a great deal of interest and the eco benefits of all the marine products will be emphasised. Tamrotor Marine Compressors will exhibit its new compressor range for large capacities, the TMC 240-365 series. In addition to this, TMC personnel will be present to provide information on other services, such as the TMC spare part kits that makes maintenance of the compressors easier and cheaper. The energy-saving, award-winning TMC
See us at stand 135, Hall B6 at SMM
August/September 2008
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Tamrotor will be showing its compressor range.
Smart Air速 frequency controlled marine compressor will also be exhibited. The TMC 240-365 series will replace the previous ML range. It is slightly smaller than the ML. However, the actual footprint, in terms of installation/fastening points, is the same. This means that users who have already planned installation of an ML compressor in the engine room can install the TMC 240-365 without having to change the specifications. Also, for repeat users, the new TMC 240365 compressor can be delivered with a kit for making all attachment points the same as for the ML series. All service points are accessible from one side, which means that placement is flexible not only in terms of height but also in terms of horizontal space, as it is not necessary to be able to access the compressor from more than one side. All canopy walls can be removed. At SMM 2008, Transas said that it will continue to demonstrate its ability to provide 'total solutions' to the maritime industry. To illustrate this approach, the stand will feature the company's Integrated Navigation System (INS), a solution for both Shipyards and crew training. This high-quality, navigation product is designed to provide seafarers with significant advantages in on board navigation, while an identical system can be used as a training tool enabling a simulated training environment to be as realistic as possible. The INS is based on the world's only DNV type-approved INS Class C Hyundai-Transas intelligent bridge system. Incorporating the company's type-approved ECDIS, radar and vector conning applications and having been developed in close co-operation with seafarers 68
and shipyards, Transas INS focuses heavily on user-friendly and intuitive functionality. As part of a continued product development programme, Transas is constantly expanding its range of on board systems to incorporate the increasing number of bridge functions and sensors needed to the INS such as gyro, echo sounder, autopilot, log and many others. Transas will also be displaying The Transas Full Mission Bridge Simulator operating as a fully functioning training tool. It has been developed in compliance with the DNV requirements for INS/IBS training. Westfalia Separator will be unveiling a new generation of mineral oil Separators eagleclass. Westfalia Separator Mineraloil Systems has expanded the capacity range both up and down, and has designed the separators to be more compact, lighter, more energy-efficient and with fewer wear parts. A new sensor technology system further minimises oil losses during de-sludging operations. The smallest and largest separator in this new series will be exhibited at SMM.
Westfalia Separator Mineraloil Systems is also extending its product line to include a newly developed fresh water generator, providing shipping companies and shipyards with a further module for the engine room from a single source This is the SeaWater Distiller, which has a capacity range of 10 to 30 tonnes per day. The Visco booster unit with a newly designed pump module is claimed to be more compact, lighter and more easily accessible. The module also takes up less space. As from next year, Westfalia Separator will market the BilgeMaster system with maximum oil contents of 15 ppm in the bilge water for the complete series; without additional adsorption filter and without chemicals. Sewage treatment will be a new addition to the range of equipment offered by Westfalia Separator Mineraloil Systems. With a combination of a centrifuge for separating coarse impurities, a buffer tank and an ultrafiltration system for removing fine impurities, Westfalia is developing a new sewage treatment system which is to be launched to coincide with the coming into force of the new IMO guidelines. This year, ZF Marine will display a variety of transmissions, controllable pitch propellers and electronic controls on the stand and also outside, where a propulsion shaft-line, with ZF W43100 gearbox and CPP, will be shown. The new transmission ZF W17000, available in reduction (NR) or reversereduction versions, is designed for continuous duty, commercial application with engine powers up to 3,000 kW (4,000 hp) at 1,200 rev/min and a ratio range from about 2 to 4.5. Several PTOs and PTIs are available as well as a 'get home' device and either manual or automatic trolling for slow-speed operation. Another new transmission system, the ZF 9050, represents ZF Marine's 9000 series, which is available in many different configurations - parallel offset (vertical and TO horizontal), down-angle and vee-drive.
Transas will be exhibiting its Integrated Navigation System (INS).
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dependent but hardly minor
14 million tons isn’t a drop in the bucket Yes, size matters when trading bunkers. Let’s just say that with sales of 14 million tons annually, we’re big enough to meet your needs worldwide at competitive prices—direct from our own stores or those of trusted partners. On the other hand, we haven’t forgotten the importance of friendly service and flexibility when it comes to doing business. Guess we’re not so big after all.
Physical Supply · Global Trading · Risk Management
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DETAIL – FOR US IT’S NATURAL
OUR ATTENTION TO DETAIL IS YOUR SOLUTION TO COMPLEX ENVIRONMENTAL ISSUES. www.lr.org/marine
Christmas tree worm, Caribbean Sea. The detailed spirals are the ocean worm’s highly-developed respiratory structures. Services are provided by members of the Lloyd’s Register Group. Lloyd’s Register is an exempt charity under the UK Charities Act 1993.