GTT’s new mark III containment system approved by DNV
New Tanker Segment Director
tanker update
Low sulphur on the agenda
News from DNV to the tanker industry
No 01 2013
Navigating through the rough seas of
today’s market
contents
04 GTT’s new Mark III containment system approved by DNV ››
07 New Tanker Segment Director
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18 Low sulphur on the agenda
Front cover: © Teekay Corporation
tanker update Upgraded LNG containment system for reduced boil-off............................................................... 4 Total Makeover by Fiskerstrand Verft AS.................... 6 New Tanker Segment Director............................................ 7 Harmonised common structural rules for bulk carriers and tankers.................................................... 8 Great Eastern receives DNV’s Triple-E rating for 18 vessels.............................................................................. 10 New fuel-efFIcient MR designs from GSI1���������������������� 13 Planning and monitoring – key to fuel efFIcient operations1������������������������������������������������������������� 14 DNV Navigator™ ........................................................................ 16 Sulphur on the agenda – exhaust gas cleaning systems...................................................................... 18 Easy access to DNV rules and standards on tablets and mobile devices......................................... 24 Maritime Labour Convention........................................... 26 Which way now for Tankers?............................................. 27 Recent delivery: Carmen Knutsen..................................... 28
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We welcome your thoughts! Published by DNV Maritime and Oil & Gas, Market Communications. Editorial committee: Jan Koren, Business Director Tankers Magne A. Røe, Editor Marianne Wennesland, Production Design and layout: coormedia.com 1301-038 Please direct any enquiries to DNVUpdates@dnv.com Online edition of tanker update: www.dnv.com/tankerupdate DNV (Det Norske Veritas AS) NO-1322 Høvik, Norway Tel: +47 67 57 99 00 © Det Norske Veritas AS www.dnv.com
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editorial
Jan Koren Business Director Tankers Jan.Koren@dnv.com
Changes The tanker world is changing. Significant and funda mental drivers affecting the tanker industry in the short and longer term are developing: the increasing production of shale oil and gas in the world, in the US in particular; the discovery and development of mammoth oil and gas fields in Australia and East Africa; the increasing supply to China of piped oil and gas; the general increase in the production and consumption of LNG; structural changes and relocations in the refinery industry – just to mention some important ones. Unrest influencing oil and gas production in North Africa, the Middle East and West Africa is also part of the picture. China has expressed plans to carry 50 per cent of its oil imports on Chinese keels, and recently we have seen oil majors behind orders of a significant number of oil tankers. On top of this, tanker owners are generally facing a miserable freight market and at the same time important new environmental regulations with a significant economic impact. It is all about initial investment, fuel efficiency/operational costs and eventually the second-hand value of the vessels. All this is likely to have a lifetime impact on the vessels ordered now.
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On the positive side, some analysts predict a more healthy balance between supply and demand 1.5–2 years down the road, with the market bottoming out in 2013. Some owners are ordering relatively cheap fuel-efficient tankers, some even labelled as ‘super eco ships’ to position themselves for an improved market. Others are introducing operational changes and even modifications to their vessels. The tanker business will not be business as usual in the time to come, but there will be opportunities for those who are able to adapt to the new realities. This will require skill, effort and a slice of good luck. DNV is prepared to support the tanker industry and to do the required homework to meet the new realities. Updated information related to regulatory developments and available technology is but one example. Finding good and practical answers to challenges associated with fuel efficiency is another. Read more about some examples in the following. After 39 years of service for DNV, the time has come for me to retire. It has been an exciting voyage across the globe. I wish all of you who continue to carry the industry forward all the best and good luck! Enjoy the read!
Tanker update NO. 1 2013 |
3
LNG containment system
Upgraded LNG containment system for reduced boil-off GTT’s Mark III cargo containment system has been further developed to reduce the boil-off rate from LNG carriers by one third. DNV is the first class society to qualify this new GTT technology called Mark III FLEX.
Mark III is GTT’s well-established containment system. This has now been further developed to reduce the boil-off rate from 0.15% to 0.10% of the cargo volume per day. The common industry practice has been to build LNG carriers with boil-off rates of 0.15% of the cargo volume per day, reflecting the typical need for boil-off gas as fuel on board. The Mark III Flex system has been developed in response to the reduced need for fuel gas due to the improved efficiency and changed operational practice of LNG carriers. For current standard LNG carrier designs with a cargo capacity in the range of 160,000–170,000 m3, the 0.05% reduction in the boil-off rate is equivalent to 85 m3 or 36 tonnes per day. The improvements have been achieved by increasing the containment’s insulation thickness from 270 mm to 400 mm. This change in thickness affects the design of system elements that penetrate the insulation, such as the lower pump tower support and gas dome. The modified
4 | Tanker UPDATE NO. 1 2013
Photo: DNV
Text: Per Wiggo Richardsen, DNV
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Principal Engineer Tom Klungseth Østvold, DNV Advisory, worked with GTT throughout the qualification process of its LNG containment system.
proportions of the insulation panels have a potential effect on the loading of the secondary barrier. The new system also implements GTT’s modified liquid dome design. GTT has carried out an extensive qualification programme for the new system to ensure that the safety and reliability levels remain equivalent to or better than those of the conventional Mark III system.
Approval in Principle (AiP) was granted by DNV in June 2011. In mid-September 2012, the system was given DNV’s General Approval for Ship Application (GASA), which means it is qualified for shipboard use. So far, 27 new vessels with the new Mark III FLEX system have been ordered from Korean yards. Twenty of these will be built to DNV class. GTT’s other LNG containment system, NO 96, is being developed to meet similar boil-off rate (BOR) requirements, and a similar qualification process by DNV is ongoing.
About GTT GTT (Gaztransport & Technigaz) is a French engineering company formed in 1994 by the merger of the two major players in the field of LNG membrane containment systems – Gaztransport and S.N.Technigaz – resulting in a company with combined experience of more than 90 years in the field of cryogenics and the storage of liquefied gases.
LNG containment system
GTT’s Mark III LNG containment system.
Photo: GTT
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Tanker update NO. 1 2013 |
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LNG bunkering vessel
Dedicated LNG bunkering vessel, LNG/C Seagas:
Total Makeover by Fiskerstrand Verft AS
In the early spring of 2012, AGA asked Fiskerstrand Verft AS to convert the former car ferry M/F Fjalir into an LNG bunkering vessel. The conversion will be completed in March 2013 and the vessel, renamed the LNG/C Seagas, will then be the first dedicated LNG bunkering vessel in operation. Text: AGA
M/S Viking Grace, which recently started to operate between Stockholm in Sweden and Turku in Finland. The conversion has been designed by Multi Maritime AS and comprises the complete removal of all the existing accommodation and most of the steel structures above the car deck. Furthermore, new watertight bulkheads have been installed below deck. The car deck will become the
new tank deck after the installation of the 84-ton 187 m3 vacuum-insulated stainlesssteel LNG tank, type C, delivered by Cryo AB in Gothenburg. In addition, the vessel has been equipped with a completely new and comfortable accommodation module and modern wheelhouse for its safe and efficient operation.
Photo: Marko Stampehl
The former double-ended car and passenger ferry M/F Fjalir has been undergoing a comprehensive conversion at Fiskerstrand Verft AS. Built for Fylkesbaatane AS by Løland Verft AS at Leirvik, West Norway in 1974, the vessel was acquired by AGA Gas AB Stockholm in early 2012. She has now been converted into an LNG gas carrier and will be put into service in Stockholm to serve the Viking Line ferry
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M/F Fjalir as a car & passenger ferry.
Illustration: AGA Gas AB
Artist’s impression of the AGA LNG Bunkering Vessel after the conversion. The vessel’s class notations are @1A1 R4(swe) ICE-C Tanker for Liquefied Gas E0.
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New Tanker Segment Director
New Tanker Segment Director At the end of this quarter, Håkon Skaret takes over as segment director of tankers from Jan Koren, who is retiring from DNV. Text: Mark Irvine, DNV
Vast experience Håkon Skaret will move to direct the segment from his present position as head of section for Class Systematics & Port State Control (PSC). Under his watch, DNV has developed a set of PSC services to help customers identify and deal with the PSC risks, resulting in a positive trend on detentions on DNVclassed ships. Skaret has a naval architecture master’s degree, and joined DNV in 1990. He spent the mid-1990s in Korea (Ulsan) on newbuilding and conversion supervision as well as SiO survey. He returned in 1998 to Høvik to what has been his main ‘home’ at DNV – Hull Structures. He spent a decade supporting surveyors and owners on a wide range of topics and ended his time there as acting head of section. He then moved to manage Class Systematics and between 2009 and 2011 was also responsible for the Emergency Response Service (ERS). Creating customer value “I am taking over a segment that has been very well led from a DNV perspective, so that gives me confidence,” says Skaret. “These
Photo: DNV/Nina E. Rangøy
“Tankers are core for DNV and the market recognises our leadership position,” says Tor E. Svensen, company president and acting COO of Division Asia Pacific and Middle East. “We have built this position through teamwork and through the strong contribution of individuals like Jan Koren, who have been able to combine a deep technical understanding of issues with the ability to build relationships with customers.”
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New Tanker Segment Director Håkon Skaret.
are challenging times for our customers – economically and technically there are tough decisions to make, not least due to demands for fuel efficiency and environmental regulations. In such times we see a strong need for DNV’s deep technical competence, and this represents a great opportunity for DNV to really make a difference for our customers. I also believe that DNV’s Class Service is second to none and that we have to continue to focus on creating value to our customers’ operations through the excellent service of our surveyors and by offering first class support by our technical experts. “I am looking forward to carry on the good work Jan has been doing for our Tanker segment customers.”
Never a dull day “There’s never a dull day in this segment, not with the sort of market share we have,” says Koren, reflecting on his 39 years at DNV – the last decade of which has seen him at the helm of the tanker segment. Koren joined DNV in 1974 after completing his MSc and almost immediately became involved in working with the IMO’s MARPOL requirements for prevention of oil pollution. That was the start of an exposure to the tanker business that continued throughout his career. He was the project manager for development of the Condition Assessment Programme (CAP) survey – at a time when DNV itself was pioneering the concept internationally. There followed management assignments in Singapore and Japan, interspersed by various strategic marketing assignments. “It’s been exciting to experience and observe at close range the development of the tanker industry, with all its challenges, and how well, with very few exceptions, that industry is performing,” says Koren. “Having been on the DNV team contributing to those high performance standards gives me a great deal of satisfaction.” DNV Tanker segment – market shares The segment incorporates oil, oil product, gas and chemical carriers. Market shares: • On order: 25% of global order book, 34% of DNV’s order book. • In operation: 23% of world fleet, 44% of the DNV-classed fleet.
Tanker update NO. 1 2013 |
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CSR
IACS class rule development
Harmonised common structural rules for bulk carriers and tankers Meeting the industry’s request for a common integrated set of class rules, IACS launches its Common Structure Rules for Bulk Carriers and Tankers. A large team of technical experts have harmonized and further developed the two originally independent rule sets. The result is an improved, comprehensive and consistent rule set which embraces both segments and takes them to the next level. Text: Marianne Wennesland, DNV
Entire Cargo Hold Region for FEA 0.65L
ENGINE ROOM
The first draft of the harmonised Common Structural Rules for Bulk Carriers & Tankers (CSR-H) was released on 1 July 2012. It was developed through ten disciplinebased sub-projects involving more than 70 specialists from IACS societies. Wave load, direct strength analysis, buckling, fatigue, welding, corrosion, local strength and hull girder strength were among the topics addressed in the process. Trendsetting development process “The joint forces from the tanker and bulker segments have produced a stronger technical standard,” says Åge Bøe, member of the IACS CSR-H project management team and senior principal engineer in DNV’s Ship Structures Department. “The end result is more complete and consistent: the rules, methods and procedures covered in part one are common to bulkers and tankers and constitute 80–90% of the rule set. Part two contains the ship-type specific rules.”
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SLOP TANK
0.3L
AE Aftmost cargo hold(s)
00
After cargo hold region
0.7L
Midship cargo hold region
FE Forward Foremost cargo cargo hold(s) hold region
Area covered by FEA
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CSR-H: Cargo hold FEM-scope.
It is on the cards that the successful CSR-H project is the start of a new trend in IACS class rule development. “The project was run with a high technical focus in a unifying, productive and cooperative environment,” Bøe explains. “The framework and template created for the CSR-H may be applicable to future rule development across other segments.”
What’s new? Changes from the current structural rules include a significant expansion in the scope of the direct strength analysis by the finite element method (FEM), compared to the required current scope which basically covers the parallel part of the hull. The scope now covers the entire cargo hold region, including the transition to the fore body and the engine
Photo: DNV/Marianne Wennesland
CSR
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Åge Bøe, member of the IACS CSR-H project management team and senior principal engineer in DNV’s Ship Structures Department.
Common Structural Rules for Bulk Carriers & Tankers
room. The current CSR net scantling approach is retained and the corrosion margin values have in general been left unchanged. Corrosion data collected from bulk carriers and tankers have been extensively re-analysed, verifying that existing corrosion margins are on the conservative side. Consequence assessment and software upgrade An extensive project including about ten tanker and ten bulker designs is under way in order to evaluate the CSR-H’s impact on scantlings. The consequence assessment process includes the testing of both the new rules and software tools. Despite the advantages of the CSR‑H, the comprehensive rule set has posed a major challenge for ensuring that compliance can be verified. “Verification of compliance with the new rule set requires a software tool upgrade equivalent to the switch from mobile
phones to smart phones,” smiles Åge Bøe. “The responsibility to provide updated software tools lies with each class society,” he stresses. “The complexity and scope of the CSR-H mean that the days of manual or simplified calculations are definitely over,” confirms Ole Christian Astrup, programme manager for DNV Technology and Services. “Providing the quickest and most user-friendly software solution is a key element in the competition for future customers.” Good software solutions are paramount to the work of both customers and approval engineers. To support the efforts to evaluate the new rules during the consultation period, DNV has incorporated the July 2012 version of the CSR-H into its Nauticus Hull software, is considering further measures, and has already provided major Asian yards with training in the new rules and related Nauticus Hull software.
• IACS initially developed two independent sets of common structural rules covering oil tankers and bulk carriers respectively, effective from 2006. To meet the industry’s request for a common integrated set of class rules, steps have now been taken to harmonise these rules. • Following the release of the first draft of the CSR-H in July 2012, there was a hearing period that ended on 1 January 2013. • The second round consists of the release of the next draft version on 1 April 2013 with a hearing period ending on 1 July 2013. A final draft will be produced for review by the individual class societies’ technical committees. • The CSR-H are expected to be adopted by the IACS Council in December 2013, followed by final publication in January 2014. • The implementation date is expected to be 6–12 months after the final publication date, indicating sometime between July 2014 and January 2015. All new contracts after the implementation date will have to comply with the new rule set. • The CSR-H will have to comply with the IMO’s Goal Based Standards (GBS) for tankers and bulk carriers, entering into force in July 2016. The rule set needs to be verified and implemented well in advance of this milestone.
Tanker update NO. 1 2013 |
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Great Eastern Shipping Company
Great Eastern receives DNV’s Triple-E rating for 18 vessels “In order to succeed in bad times, you need to be moderate during the good times,” says Tapas Icot, President of Great Eastern Shipping Company Ltd (GESCO). “In addition, you need to be foresighted and prepared for new regulations in due time before they kick in, otherwise unnecessary time and resources will be spent to ensure compliance.”
Critical success factors “The key to success, especially in the current challenging market with low charter rates and an oversupply of tonnage, is to have cost-efficient ship operations,” says Mr Icot. “Our continuing focus on energy efficiency has enabled us to keep our revenue steady even when the daily earnings from ship operations have fallen. Having sufficiently qualified personnel both on board the vessels and in the shore organisation is necessary to achieve savings in practice. We have ensured this by spending time on the actual implementation of all the identified energy efficiency initiatives on board, with clear targets set and dedicated responsible persons on board and ashore for following up all initiatives as part of the ship-specific energy efficiency management plans (SEEMP). This has given us savings of 2–3% over the past few years, measured by the Energy Efficiency Operational Indicator (EEOI), which takes into
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Photo: The Great Eastern Shipping Co. Ltd./Vivek Varadkar
Text: Petter Andersen, DNV
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Tapas Icot, President of Great Eastern Shipping Company Ltd (GESCO).
account the volume of cargo transported, distance sailed and grams of CO2 emitted,” says Mr Icot. Environmental challenges and opportunities GESCO’s strategy is to deliver safe transportation that has a minimum impact on the environment and meets all the industry regulations and requirements. “We view the choice of technology we have to make today in order
to stay compliant in the coming years as a challenge,” he continues. “The current technology available in the market has a high capital cost and in addition comes with a limited amount of practical experience data. This makes it difficult to know the exact total cost of the technologies, including the operational costs, which are a very important element.” How much space to allocate for the retrofit of ballast water treatment systems and installation of exhaust gas cleaning systems for new designs, and what type of ballast treatment technology will meet its vessels’ trading pattern needs, are some of the issues that GESCO is currently working on. “There is no question that ensuring preparedness for emerging environmental rules and regulations is also a business opportunity, and that those who make the right decisions today will see great benefits from this some years down the line,” says Mr Icot. “No one knows the answers to
Photo: Great Eastern Shipping Co. Ltd.
Great Eastern Shipping Company
Jag Aparna.
this today and we are therefore spending a lot of time making sure that the technology choices we make for our existing and new ships will be suitable for our future operations.” Customer requirements “The oil majors chartering our tonnage impose requirements as to the quality system and the competence of our staff,” says Mr Icot. “Another element which has become more and more important is the actual fuel efficiency of each vessel considered for charter. We see a clear trend towards charterers comparing vessels when it comes to fuel consumption, and clearly preferring those vessels that can document the most fuel-efficient operations within a similar type and standard. In most charter contracts, the charterer is paying for the fuel and wants to secure the most fuel-efficient vessel for its contract. We therefore view our focus on fuel
Triple-E
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ENVIRONMENTAL & ENERGY EFFICIENCY RATING
“How to know a vessel’s actual fuel oil consumption is a challenge for us when choosing new vessels for time charter. This is important as we are paying the fuel bill as part of most charter contracts. It is the ship operator’s responsibility to document the ship’s accurate/ factual fuel consumption so that we can assess the vessel’s green performance compared to the industry average.” Umesh K. Vishwekar, General Manager – Shipping, Hindustan Petroleum Corporation Ltd
efficiency and the thorough documentation of our vessels’ actual environmental and energy efficiency performance as a positive contribution, that can give us a commercial advantage when bidding for new charter contracts.” Triple-E environmental and energy efficiency rating from DNV Recently, GESCO was awarded DNV’s Triple-E environmental and energy efficiency rating for 18 of the vessels in its fleet. Three vessels achieved a level 2 rating as the first vessels in the world to do so. The rating means in practice that GESCO and its vessels have been found to comply with an industry-leading level of environmental performance. “We see great value in having our ships rated in accordance with DNV’s green Triple-E standard,” says Mr Icot. “To achieve the rating, we focused on training and making our employees aware of environmental issues,
Tanker update NO. 1 2013 |
11
Great Eastern Shipping Company
“Fuel efficiency is one of the most important elements for us when evaluating vessels for charter. A vessel that can document low fuel consumption is more attractive to us and we are considering giving suitable weighting to this in the chartering process. We welcome green initiatives taken by the shipping companies which will enable us to identify the vessels that are being run more fuel efficiently and hence with the lowest operational costs.”
Photo: DNV
M.R. Karandikar, General Manager (Shipping), Indian Oil Corporation Limited
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Derek Hoare (DNV), Business Development Director for Maritime Oil and Gas, Region India and Middle East (to the left) handing over the Triple-E rating declaration for JAG ARYA to Mr. Indra Bose, General manager Quality, Safety & Training Great Eastern Shipping Company.
we established clear energy efficiency targets and implemented these on board, we implemented an advanced performance and analysis tool to monitor the efficiency of our fleet and we included energy efficiency in our quarterly management review meetings. By establishing baselines for our ship operations and defining concrete KPIs based on these, we can monitor and measure the improvement in our operational efficiency year by year. In addition, the Triple-E ratings are a symbol of
12 | Tanker UPDATE NO. 1 2013
our efforts to run our vessels in the most efficient way possible, and we use these as part of our documentation when bidding for new charter contracts.” Quality comes with competence and awareness “Environmental and energy efficient ship operations start with the individuals in an organisation,” says Mr Icot. “We seek business partners that can help us build the competence needed to better understand our current business
environment and guide us in the right direction when it comes to choosing new technology and implementing it. DNV has for many years added value to our business through ship classification and ISO 9001, 14001 and OSHAS 18001 certification, and also as an advisor helping us improve the way we operate our vessels. DNV has a focus on quality in its deliverables, and this matches our strategy of being foresighted and prepared for emerging rules and regulations.”
GSI
New fuel-efficient MR designs from GSI Guangzhou Shipyard International Company Limited (GSI) in Guangzhou, China, is a major and recognised builder of MR tankers for the global market. Text: Jan Koren, DNV. Based on interview with GSI’s Vice President Jin Li Chao and Deputy General Manager Business & Marketing Department William Zhou Xu Hui
New designs GSI has its own design team and has recently developed two new designs, a 40,000 DWT shallow-draft and a 50,000 DWT product/chemical tanker, with an emphasis on fuel efficiency and a green profile. New hull lines and specially designed propellers are among the important features to minimise fuel consumption. Based on different model tests and CFD, GSI claims that a close to 20% fuel reduction has been estimated for its new designs compared to its earlier hull designs. Further, the company states that the hydrodynamic features of its designs are such that Becker Marine Systems has not recommended ducts or fins to be fitted to improve performance. Widespread interest The designs have attracted widespread interest and a series of new contracts, including 16 firm orders
Photo: Jan Koren, DNV
Based on its current global order book, which contains more than 140 (year-end 2012) MR tanker contracts, and statements from different market analysts, GSI assumes there will be a near global balance in the demand supply of MR tankers at the end of 2014 or early 2015 with increasing demand. The company expects relatively few new contracts in the first part of 2013, with a r ising number later this year and in 2014.
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GSI’s Vice President Jin Li Chao (left) and Deputy General Manager Business & Marketing Department William Zhou Xu Hui.
plus ten options, were signed in 2012 and during the first half of January 2013. The yard claims that advanced technology, fuel efficiency and the trust of owners, including reputable companies such as Stena and Norden, are the main elements contributing to this success. GSI believes that fuel efficiency will improve further, as practical experience is gained and feedback from full-scale operation is received to provide a basis for
evaluation. The whole shipping community will gradually mature in this area. So far, it is GSI’s experience that owners are mainly focusing on tons-per-day fuel consumption for one specific condition, e.g. the design condition. However, the company expects owners to increasingly focus on fuel efficiency over a range of conditions, including the ballast condition, compatible with their vessels’ expected operating profile.
Tanker update NO. 1 2013 |
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TCC
Planning and monitoring – key to fuel efficient operations “In TCC, we are passionate about performance evaluation and continuous improvement,” says Captain Vinay S. Patwardhan, Director of Group Planning & Development and General Manager for Tanker Operations, TCC Group, Hong Kong.
Photo: DNV/Jan Koren
Text: Jan Koren, DNV
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Captain Vinay S. Patwardhan, Director of Group Planning & Development and General Manager for Tanker Operations, TCC Group, Hong Kong.
Founded back in 1917, the TCC Group is approaching the formidable age of 100 years. Captain Patwardhan suggests that surviving for so long offers irrefutable evidence that the company must have done things right. Today, TCC owns and operates a moderate, mixed fleet of 15 ships, almost three mdwt, consisting of Capesize bulkers, Panamaxes, VLCCs and Aframax tankers. There is currently excessive tanker capacity in the world and no immediate sign of relief. Most of the tanker fleet is now operating on term charters or in the spot trade. TCC is in the fortunate position of being debt-free, with the freedom
14 | Tanker UPDATE NO. 1 2013
to take advantage of opportunities surfacing as a result of the current market situation. “TCC’s tankers have been reviewed by oil majors like Exxon, Shell, Chevron and BP and, after intense scrutiny, we were proud to be assigned elite owner/operator status and humbled by the support and admiration of our peers and competitors,” says Captain Patwardhan. “Although all our ships are gainfully employed, the rates are not superlative,” he claims. “We believe that 2013 will be a year of transition and bottoming out,” he continues. “Low rates will dominate until after a lot of balancing and adjustments have taken place. The year 2014 will be
poised to see rate improvements, supported by significant scrapping of ageing tonnage and cancellation of new building contracts. We have two Panamaxes on order for delivery in 2014/15, when we expect improved supply/demand in the market. TCC is also contemplating the expansion and replacement of its tanker fleet in the near future.” Patwardhan believes that one of the keys to remaining profitable in a challenging fiscal environment is encouraging and maintaining a culture of loyalty and sense of ownership among members of the company at all levels, ashore and at sea. The more invested a member of the team feels, the more watchful and responsible he will be about his job. Patwardhan observes that the traditional ship owner operated with a more hands-on approach towards management – he hired teams of highly skilled and experienced professionals and fostered a culture of teamwork and loyalty among shipboard and shore personnel who were made to feel genuinely invested in the welfare of the company. Such a holistic approach is now rare, Patwardhan says. He has concerns that pure investors or opportunists with little or no shipping background have entered the scene, playing the money game with quick returns as their main objective, and that this may seriously compromise maritime safety and the longterm profitability of a shipping operation. He believes that the passionate allegiance and sense of belonging of the trusted
TCC
employee towards the company have eroded, and the quality of ship operations has subsequently declined with the migration of ships from the proud model of ‘Parental Care’ to a more detached, absentee model of ‘Foster Care’. TCC’s operations, he believes, are unique in this regard. “TCC has retained many of the best attributes of a successful family business. For one thing, we are not too big; our size allows us to be a more cohesive and responsive team, and our owner is passionately committed to making every employee feel invested in the smooth running of the business. Expectations are high for everyone, but so is the support each employee is given at sea and ashore. Such a culture of loyalty and watchfulness at every level, and the hands-on commitment of our owner, will serve the company well in the long term, making TCC a safe and profitable operation.” Relations with charterers are key to success Long-term relationships with charterers, based on trust and operating excellence, have been TCC’s recipe for sustainable success. The ‘top of mind’ strategy has achieved a mutually rewarding fusion of charterers’ needs and TCC’s aspirations. Quality and consistency in safety and risk management have been the core values of the ship operations. “We never lost our focus on this virtue over the years, regardless of changing market conditions. This has been reflected in our goal setting, operating practices and robust commitment to training to continually hone our current skills and inculcate new ones,” says Patwardhan. “Our policies have evolved to include environmental issues such as fuel saving/ emissions. We have taken certain environmental initiatives and elevated our operating standards by exceeding the mandatory regulatory compliance. By nurturing our relations with our customers in an open dialogue and by continuously demonstrating high standards, trust is being built in our relationships. A unique bond exists between those on board and on shore. The management recognises the strength
of its role to support those on board in the joint pursuit of excellence by the team on shore,” he says. Focus on performance and efficiency “Our focus on our performance has expanded to include fuel efficiency. For each vessel, we conduct a complete economic life cycle analysis, from ‘cradle to coffin’, voyage by voyage, year by year. Fuel costs are upsetting budget calculations, with price escalation ten times higher than 15 years ago. As a necessity, we have concentrated on all aspects of our operations influenced by fuel oil and lubricating oil bills,” says Patwardhan. “Practising operational efficiency and energy efficiency is therefore not new to us. We are focusing on indirect and direct means of energy efficiency. Machinery performance is continually monitored, based on intimate knowledge of the hardware and manufacturers’ standards, including our own experience and stringent operational procedures. “Fuel efficiency and operating technical excellence are achieved by means of a Technical Passage Plan (TPP) unique to the TCC ships and unlike any other in the industry. Our ships do not leave port without first filing a Technical Passage Plan. The TPP ensures that the ship has a risk profile for critical systems before moving from port to port to achieve ‘passage without stoppage’. Fuel efficiency is an integral part of the Technical Passage Plan. Fuel efficiency is also achieved in the complexities associated with cargo heating. A tanker master is assigned to guide the ships in the cargo-specific heating procedures in order to optimise cargo operations and ensure economic fuel consumption.” TCC subscribes to Nauticus Air and Nauticus Environment, DNV software for monitoring of environmental performance. Patwardhan remarks that it provides a good overview of fuel consumption, and contributes to their focus on fuel efficiency and the preservation of the environment and air quality. “In TCC, we are passionate about performance evaluation and continuous
improvement. This is an important and integrated part of our operating profile. For us, this all started some years back based on self- motivation. Now we believe we are well ahead of industry practice as reflected in typical Ship Energy Efficiency Management Plans (SEEMP), which have been required by the IMO since 1 January 2013 in order to reduce emissions. We only had to establish a bridging document to align our established tools and documentation with the formal SEEMP. Fuel saving is a consequential benefit to the charterers, and their appreciation is yet to be transformed into a reward for the owners,” says Patwardhan. “Today there are many vendors and suppliers of equipment and services peddling their as yet unproven products associated with fuel efficiency or each promising significant improvements and savings, some complex, and these will be carefully evaluated,” he adds. In his experience, the interaction with peers in the shipping industry and sharing information with users and through informal business networks and technical seminars, such as those hosted by DNV, have been most useful. Engine Efficiency Finally, Captain Patwardhan claims that he would have liked to have seen the MEPC consider specifically putting more emphasis on examining fundamentals of combustion to improve engine efficiency, rather than rushing to set restrictions and impose the treatment of emissions from slow-speed marine diesel engines on ships. “There can be no energy efficiency unless there is engine efficiency,” he stresses. As a consequence of its belief, galvanised by the chairman of the Group, Mr Kenneth Koo, TCC has been actively involved in the research into and development of a technology to very significantly improve fuel combustion and reduce and reverse emissions by achieving results which can be implemented in the not too distant future. The results so far have been very promising.
Tanker update NO. 1 2013 |
15
DNV navigator
DNV Navigator™ – reducing on-board paperwork by up to 90% Introduced in 2003, DNV Navigator helps manage the administrative and regulatory complexity of port operations and is currently in use on more than 2,500 vessels worldwide. One of its latest improvements, the interface with Q88.com, assists ship masters in reporting officer-matrix data in a seamless flow through Q88.com’s Officer Matrix system and straight into the OCIMF’s SIRE. DNV Navigator helps reduce on-board paperwork by up to 90% and enables ship officers to focus on their primary responsibility: ensuring safe and efficient ship operations at sea and in ports.
Photo: DNV
Text: Rolf G.S. Buøen, DNV
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DNV Navigator helps manage the administrative and regulatory complexity of port operations and is currently in use on more than 2,500 vessels worldwide. DNV Navigator’s newest improvement, the interface with Q88.com, assists ship masters in reporting officer-matrix data in a seamless flow and allows fleet information management and verification by both ship master and owner.
16 | Tanker UPDATE NO. 1 2013
Photo: DNV
Photo: DNV
DNV navigator
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Odd Arne Haueng, Managing Director, DNV Maritime Partner.
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Navigator’s interface with Q88.com ensures that officer-matrix data from the ship sails smoothly through Q88.com’s Officer Matrix system and straight into the Oil Companies International Marine Forum’s (OCIMF) Ship Inspection Report Programme (SIRE). Before the fleet information is submitted to SIRE, both ship masters and owners can manage and verify it on www.Q88.com or www.OCIMF.com. The system’s automated compliance check provides an overview of the vessels which do not meet the oil majors’ requirements and the power to act on this information. “We’re pleased to continue delivering value to our customers through this partnership,” says Odd Arne Haueng, Managing Director of DNV Maritime Partner. “Industry feedback indicates that the onboard paperwork burden is reduced by as much as 90%. This allows ship officers to concentrate on their primary responsibility of ensuring safe and sound ship operations at sea and in port.” DNV Navigator facilitates compliance with the requirements of charterers and port authorities and is often referred to as the ‘Captain’s best friend’. More than 1,600 port clearance forms are automatically filled in with ship data so that the
required paperwork can be completed in a few minutes. The system includes a database of information about all the world’s ports and terminals, including publications and data from the UKHO, IHS Fairplay and other sources. Arrival and departure procedures for all major ports are available as well as a comprehensive nautical library providing up-to-date, maritime-specific information. Safety is further enhanced by DNV Navigator’s quality Q88 connection to OCIMF’s Ship Inspection Report Programme. “SIRE is one of OCIMF’s most significant safety initiatives and a unique risk-assessment tool for tankers,” says Haueng. “It constitutes great value to operators, charterers, terminal operators and government bodies concerned with ship safety.” With the ILO’s Maritime Labour Convention (MLC) 2006 entering into force on 20 August this year, systematic monitoring of the crew’s work and rest hours is paramount. In response to this need, DNV Navigator now offers a web-based portal enabling the ship management to monitor work and rest data recorded onboard and demonstrate compliance with MLC 2006, The Navigator Shore portal will give
Rolf G.S. Buøen, Marketing and Product Manager, DNV Maritime Partner.
the management a monthly overview of the “percentage of hours worked in nonconformity”, as suggested by OCIMF. Ships that already have Navigator Work and Rest installed on board may easily upgrade to allow for office monitoring and be prepared for the upcoming MLC 2006. New subscribers can easily activate this by contacting us. With the Fleet module installed on board, the Shore portal also presents an up-to-date status of the crew and vessel certificates.
DNV Navigator • Reduces online paperwork by up to 90% by simplifying and speeding up ship-to-shore reporting • Market-leading software in use by more than 2,500 vessels • Ensures smoother port clearance procedures by providing timely information and forms that meet the port state requirements of 11,000 ports and terminals worldwide • Reduces delays and possible penalties in connection with port calls • Ensures safer navigation • Work & Rest Hour module with office monitoring (MLC 2006) • Contact information, video presentation and further information available at www.dnvmp.com
Tanker update NO. 1 2013 |
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Sulphur on the agenda
Sulphur on the agenda – exhaust gas cleaning systems The choice of strategy for compliance with sulphur dioxide emission requirements is causing frustration and confusion as owners weigh up the pros and cons of exhaust cleaning solutions against fuel switches. And rightly so: the introduction of SOx cleaning technology is a paradoxical problem. On the one hand, there is a potentially very favourable economic solution with a pay-back time of between one and two years in special cases. On the other hand, there are the unknown risks that accompany the introduction of new technology; what if it doesn’t work as intended? TEXT: TOMAS TRONSTAD, DNV
Cvetojevic Photo: DNV/Damir
implications for the yards, ship owners and operators. A good source of EGCS fundamentals can be found at www.egcsa. com. The article will provide examples of figures for some design parameters. These figures should be read with caution as the manufacturers are continuously developing their designs.
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Tomas Tronstad, Principal Engineer, DNV.
The list of questions arising in relation to exhaust gas cleaning systems (EGCS) is long and intricate. Long – since this involves new technology of which the yards, operators and owners have little experience. Intricate – since the issue is inherently multidimensional and includes factors such as novel technology, operational issues, compliance regimes and local and international authority enforcement strategies, to name just a few. This article will provide a short update on the matter, based on DNV’s experiences so far. The focus will be on practical
18 | Tanker UPDATE NO. 1 2013
How does the EGCS process work? A wet EGCS works by allowing water to be intimately mixed with the exhaust gas, which leads to several chemical processes taking place between the water and the sulphur in the exhaust. The sulphur is transformed and captured in the water phase, ultimately as sulphate. The waste water is cleansed, removing particles and rudiments, before being discharged into the sea. Seawater has a natural buffering capacity that neutralises acid by-products of the chemical processes, whereas fresh water needs to have chemicals added to allow the same process. The chemicals most often used are caustic soda or magnesium oxide. The sludge rinsed out from the waste water is stored in tanks for later delivery in port. In a dry EGCS, the exhaust gas is fed through a packed bed of calcium hydroxide granulates, forming gypsum (calcium sulphate). The produced gypsum (in granulate form) is stored in on-board
containers. This means the containers must be replaced during ship berths. For a smaller vessel, typically short sea shipping, the exchange must usually be done once a fortnight. The dry EGCSs’ main advantages over wet EGCSs are: simpler systems, no sludge production and no discharge water. The systems will become rather heavy and large for power plants of around 20MW and bigger. Will the discharge of sulphate be harmful to the oceans? And will stricter requirements come into force at a later stage? Studies and in-field testing done to date show that the increase in sulphate due to exhaust gas scrubbing will be insignificant when compared with the quantity already in the oceans. As to the content of other substitutes in the discharge water, special concern should be paid to Poly Aromatic Hydrocarbons (PAHs). MEPC Guideline 184(59) states that further research into the effects of PAHs on the environment may require the future tightening of requirements, possibly with retroactive effect. The MEPC Guideline further recommends that a ship which has provided wash water measurement data from an installed EGCS plant should be granted a waiver of compliance with possible future stricter discharge standards for this plant.
Sulphur on the agenda
What is the difference between an open and closed loop EGCS? An open loop EGCS utilises seawater as a scrubbing agent, pumping seawater up into the funnel and discharging the same amount of water after cleaning out debris. A closed loop system utilises seawater or fresh water with added chemicals in a closed loop. A certain amount of water is regularly tapped from the closed water loop and then cleaned and stored in a tank. An equal amount of new replacement water is added to substitute the tapped water. A closed loop system is only able to operate in completely closed mode for as long as the discharge water tank volume allows – usually a few days’ operation.
How much space does a typical EGCS require when installed? Do the available EGCS technologies differ dramatically in terms of size and weight? For a 10MW power plant, covering main engine(s), auxiliary engines and boiler,
Photo: Wärtsilä Moss
What is the reason for the large physical size of EGCSs? Will they shrink in the years to come? The chemical processes required need a certain amount of time to take place. Consequently, the EGCS body diameter is dimensioned to reduce the speed of the exhaust gas and the length is dimensioned to allow the necessary contact-duration period. Moreover, the lower the temperature of the exhaust, the greater the SO2 solubility, which is also why the process is space demanding, since the water spray also functions as the cooling media. For the reasons stated above, it is questionable that EGCSs will become considerably smaller in the future, although the manufacturers are working on this issue.
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AE scrubbers with deplume.
Tanker update NO. 1 2013 |
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Sulphur on the agenda
the rough physical size requirements of the goose-necked EGCS body (in the funnel) are 7–10 m in length, 3.5–5 m in breadth and 5–8 m in depth, depending on the manufacturer. Columnar designs may be slimmer and longer (a diameter of 2.2 m and length of 12 m for a 10MW plant), and these tend to be fitted on each engine or boiler. The main spacedemanding parts of the EGCS plant are the main EGCS body, process plants (water treatment, etc.) and fluid storage tanks. For dry EGCS systems, there are no watertreatment-system considerations to take into account. What is the typical weight of an EGCS and will it affect ship stability? For a 10MW power plant, covering main engine(s), auxiliary engines and boiler, the weight of the EGCS body in the funnel would typically be about 7–10 tons in a wet condition. Additional weight will come from the tanks and systems, but these will be lower in the ship. DNV’s experience of stability issues is that the EGCS weight can usually be accommodated without any need for special arrangements. This is especially true for designs which can replace the silencer. What are the main issues to consider when retrofitting an EGCS on board a ship? When retrofitting an EGCS, the funnel is usually expanded to allow for the EGCS body. Experience shows, however, that fitting other equipment is often a bigger challenge. The location of tanks, routing of piping – especially the water pipes from below the water line up to the EGCS in the funnel and back to the sea, accessibility of equipment, routing of chemical piping versus personnel safety and accessibility for inspection are some of the main concerns. What are the realities related to the EU requirement for closed loop cycle EGCSs? The European Council and European
20 | Tanker UPDATE NO. 1 2013
Parliament reached provisional agreement on the sulphur content of marine fuels on 23 May 2012, amending directive 1999/32/EC. This requires EGCSs to be of the closed loop type, but only if the ship is using fuel containing more than 3.5% sulphur. Considering the possible onset of a global requirement of 0.5% sulphur content; could an EGCS potentially be smaller if it is to clean to 0.5% sulphur content only (not 0.1%)? A wet EGCS that cleans to a 0.5% sulphur content will require less amount of process water, and hence lower pump capacity and power compared to one that cleans to a 0.1% content. The EGCS body may be made somewhat smaller in size, but probably not dramatically smaller. The auxiliary power requirement will be less however, as will the volumes needed for sludge- and water-treatment tanks. What is the difference between class approval and IMO certification, and why does an EGCS need both? Classification society approval covers the standard class issues such as core safety for people and property (including the vessel). In addition, the IMO requires the equipment to be certified for environmental compliance with guidelines developed by the IMO MEPC.184(59). The flag state may authorise classification societies to perform this certification, with the classification society then issuing the approval and certificate on behalf of the national maritime administration. Are there areas or ports that do not accept EGCSs as an alternative means of reducing sulphur dioxide emissions? Exhaust gas scrubbing is an accepted supplement to the use of low sulphur fuels under the International Maritime Organisation’s air pollution regulations (MARPOL Annex VI). All ports accept the use of EGCSs within their waters, including the discharge of waste water. Specific ports and confined waters such as the Baltic Sea
may forbid open loop EGCS systems in the future. How does the EGCS affect the vessel’s EEDI and EEOI? The energy efficiency design index (EEDI) or the operating index (EEOI) does not include explicit equations for EGCS plants, and EGCSs are as such not included. If the ship auxiliary power in the EEDI/ EEOI is given from electric power tables, the increased fuel consumption due to an added EGCS will likely be added in the power tables and contribute to a small increase in the EEDI/EEOI. The details on how the EEDI/EEOI formulas will integrate the increased auxiliary power consumption may be specified for the actual newbuild project/EGCS retrofit project. If the auxiliary power consumption is provided as a percentage of the main engine power, this percentage will also cover the extra power needed to operate the EGCS. In the latter case, the EGCS will not introduce any changes to the EEDI or EEOI. What is the effect of the two different approval schemes, scheme A and scheme B, in the IMO MEPC Guideline 184(59)? Scheme A requires online monitoring of the plant’s wash water effluents and operating parameters, but only periodical monitoring of air emissions. Scheme B specifies periodical monitoring of wash water effluents, but online monitoring of air emissions. The basis of the verification procedure under scheme A (may be viewed as a form of type approval) is that if all relevant components and operating values and settings are within those approved, then the performance of the EGC system is within that required without the need for actual exhaust emission measurements. Scheme B works under the assumption that “MEPC type approval” is not present, and thus online monitoring of air emissions is required. What about possible future emission requirements as to particulate matters (PM), including
Photo: Wärtsilä Moss
Sulphur on the agenda
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AE exhaust gas cleaning.
black carbon (BC) – will an EGCS manage to capture PM and BC to acceptable levels? An EGCS plant designed to remove SOx is capable of capturing a significant share of the exhaust particulate matters as well. However, the physics behind the capturing of SOx from an exhaust gas stream is fundamentally different to that relating to the capture of particulates. Designing a wet EGCS to be efficient at particle
capture will usually make it less suitable for SOx capture, and vice versa. The SOx EGCS will also tend to capture the largest particles, whereas it is the smaller particles that cause the greatest concern when it comes to detrimental health effects. That said; studies indicate that SOx EGCSs can reduce smaller particles and BC at an average level compared to methods and technology otherwise normally available.
What is the capex and opex of EGCSs, and what about the cost of installation? Economy of scale also applies to EGCSs, so the CapEx per MW is usually less for a large plant than for a smaller. Since there are still relatively few EGCSs, the financing package developed for each project differs a lot, making it difficult to reveal and compare prices. That said, to DNV’s knowledge, representative cost figures to date typically range from 300 €/kW for smaller projects (up to 5MW) to around 200 €/ kW for large projects and even to below 100 €/kW for the very large installations (>50MW). The figures given cover costs for the actual plant, installation and operation comes in addition. Operational costs differ for the various designs, depending on the cost of chemicals and added fuel consumption, but typical figures for current installations could centre at around 5 €/MWh. Installation costs also differ between the various designs and ship types depending on the project details. Yards are beginning to position themselves in this matter, and the experienced ones are able to offer technical know-how and streamlined processes. Costs of installation in the same order as the costs of equipment are known, but lower prices are also reported. The installation cost should also be nonlinear, with an economy of scale benefiting large plants. How much yard time should be expected for a retrofit of an EGCS on board a vessel? In DNV’s experience, commercial projects will require up to a month’s time in the yard, although shorter periods have also been reported. For multi-engine plants, typical of cruise ships and to some extent container ships, some suppliers are able to perform parts of the retrofitting of pipes and systems during normal operations, thus reducing yard time. Naturally, such a solution is stressful for the normal crew as well as for the installation team. The installation of an EGCS during ordinary docking is also known to be a challenge due to the already busy time plan.
Tanker update NO. 1 2013 |
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Sulphur on the agenda
What is the power needed to operate and run the EGCS? Power needs to differ depending on the supplier, technology and ship specifics, but a ballpark figure would be 3% additional fuel consumption due to the EGCS’s auxiliary power needs. Any increased fuel consumption as a consequence of increased engine back pressure would come in addition.
Corrosion and material selection – what are the risks involved? Can existing piping be used in retrofit projects? Strong corrosion-resistant materials in the parts of the system exposed to low pH wash water or alkaline chemicals are required. Plastic pipes or GRP are in widespread use here. The material selection is on the one hand a problem that should be manageable, given that the corroding substance is known. Recent years of on-board testing have provided several lessons when it comes to the selection of material for different equipment and components (valves, pumps, etc. in addition to the pipes). On the other hand, experience shows that the yards are on new ground in these questions and are understandably also concerned about the material cost. Good communication lines between the supplier and yard are essential to ensure the correct material selection. A retrofit system will not use existing on-board piping, with the possible
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Photo: Wärtsilä Moss
How does the EGCS affect the engine/boiler/economiser/ silencer operations? The economiser will not usually be influenced or changed due to the EGCS. The EGCS may in some cases replace the silencer, providing space which makes retrofit arrangements easier. Multistream plants are available, meaning that one large EGCS can accommodate the exhaust from the main engine, auxiliary engines and boiler. Classification Rules require a multistream plant to have a bypass; thereby ensuring the availability of the main function propulsion and power generation should the EGCS be blocked.
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Four AE scrubbers.
exception of short sections of pipes leading from the sea chests and the cooling water pipes that discharge overboard. The latter is by far the most important with regard to material issues. What are the main hazards and risks when it comes to the operation of the EGCS on board the vessel? DNV’s experience with the EGCS risk assessment projects to date is that, for the operational phase, the high-risk categories identified are mainly related to the safety of people and high operational costs.
These two groups are far more exposed than risk groups such as reputation, delay, environment and non-compliance. The safety risk is mostly related to bunkering and the handling of chemicals, notably caustic soda. The majority of the operational cost issues are related to having to switch to expensive compliant fuels during EGCS downtime or the improper functioning of the EGCS system. Through the risk workshops, proper mitigating activities are identified to reduce the risks to acceptable levels, and the responsible party is also given a deadline for completing the activity.
Sulphur on the agenda
What are the main hazards and risks when it comes to the core EGCS technology on board the vessel? For the EGCS system, the crucial items are related to the parts involving new technology. EGCS technology has a good track record for use in onshore plants. In that this technology is now being “marinified”, several new solutions, adaptations and integration issues are being designed. Failures and malfunctions are being exposed and the solutions to these are maturing, getting rid of some inevitable “child diseases”. Concretely, the parts of the EGCS with the most and largest technical hazards are usually the water cleaning equipment, the water system (seawater, fresh water and waste water), the exhaust system and components, the chemical systems, including dosing, and the control system, including monitoring equipment. Through the risk workshops, proper mitigating activities are identified to reduce the risks to acceptable levels, and the responsible party is also given a deadline for completing the activity. Will NOx-reducing equipment such as SCR plants also reduce SOx emissions? If so, can this allow for smaller and cheaper EGCS investments? An SCR plant will also extract some SOx from the exhaust flow. However, it is the last 10–20% of the sulphur contents that are the most challenging to remove. Thus, an SCR plant will not allow for considerably smaller or lighter SOx EGCS plants. Research and development work is ongoing to develop combined SOx and NOx EGCSs. To date, simultaneous De-SOx and De-NOx technology has not been demonstrated in full scale. What logistics supply will an EGCS in operation require? A wet EGCS with a hybrid or closed loop design will require a supply of the chemical agent, e.g. caustic soda or magnesium oxide. This is usually delivered by truck on the wharf. A large cruise ship will normally
require the bunkering of, say, caustic soda about every fortnight, typically in volumes such as 1 ton/MW/week. In addition, some manufacturers include water cleaning technology that makes use of other chemicals as well, such as flocculants and coagulants, but smaller quantities of these are required. The sludge removed from the wash water will need to be deposited in port. Most ports will have receiving facilities for such waste. What are an EGCS’s maintenance needs? Maintenance of the EGCS system is on the whole relatively undemanding and composed of generic maintenance tasks carried out on equipment such as valves and actuators, pumps, electric motors, heat exchangers, tanks, sensors, etc. The EGCS unit will usually be equipped with maintenance hatches for periodical internal inspection, including that of the spray nozzles, which could be required typically once a year. In general, there are very few or no parts to be greased or oiled periodically. For systems with MEPC Scheme B approval, the continuous emission monitoring system needs to be checked and calibrated periodically, and filters, etc, need to be replaced and cleaned. What can be done to minimise the risks involved in implementing new technology? DNV’s experiences show that there are a few important steps that should be taken in order to prepare for a successful project involving new technology: n clarify stakeholders’ requirements (Owner/Operator, Yard, Supplier, Class); n conduct a thorough examination of the technology and the operational issues, including a risk analysis; n prepare action plans to mitigate the risks found to be above acceptable levels; and n follow the plan to verify that the scrubber plant and integration are fit for the intended operation.
DNV Maritime Services provides technology assurance services and support, as well as scrubber selection support. Contact Tomas.Tronstad@dnv.com or environmentandenergyefficiency@dnv.com
Tanker update NO. 1 2013 |
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dnv rules and standards
Easy access to DNV rules and standards on tablets and mobile devices DNV’s “Rules and Standards Online” is a library of PDF files which you easily can access from your mobile devices.
For iPad and iPhone you can easily create a bookmark on your home screen. For Android devices you can bookmark ‘Rules and Standards Online’ via an app.
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iPad and iPhone On an Apple device, you can create a bookmark icon on the home screen by following these steps: n
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In the “Add to Home” window, you may want to type a title of your choice, e.g. “Rules Online”. Finally, tap “Add” on the “Add to Home” window:
Open the Safari web browser and go to http://exchange.dnv.com/publishing/ Or scan this QR code to go directly there:
Tap the Share button:
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In Google play (previously named “Android Market”), search for “DNV Rules” and you should find the app called “DNV Rules and Standards”. After installing it, you should have an icon on your home screen, which takes your web browser to “Rules and Standards Online”. Note that you need to have internet access when using the app.
You should now have this icon on your home screen:
To read PDF files you can e.g. use Apple’s iBooks app. iBooks can be installed free of charge from the iTunes App Store. In iBooks, the documents you have downloaded are available also when your device is not connected to a network. iBooks is also a good tool for organizing the documents.
and then “Add to Home Screen”: Android devices On Android devices you can also easily create a bookmark for instant access to ‘Rules and Standards Online’:
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When you tap on a link to a document, you will be prompted to save it. Tap “OK” (to save), and the document will be downloaded to your device. Using “My Files”, look for the document in the folder “Download” (/Root/Download).
dnv rules and standards
Keep updated on DNV rules and standards
Š DNV/Nina E. Rangøy
www.dnv.com/rulesnews
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Maritime Labour Convention
Maritime Labour Convention to enter into force on 20 August 2013 On 20 August 2012, the International Labour Organisation (ILO) announced it had received the 30th ratification, fulfilling the last condition for the entry into force of the Maritime Labour Convention, 2006 (MLC, 2006). The charter sets out the labour rights of the world’s 1.2 million seafarers and establishes a level playing field for ship owners.
The ratifying countries include major flag states such as Liberia, the Marshall Islands, the Bahamas, Panama, Norway, Singapore and Cyprus, and hold almost 60 per cent of the world’s tonnage. This means that the maritime industry will have a truly international standard for seafarers’ working and living conditions. The ILO has confirmed that the entry into force date for the Convention will be 20 August 2013. All ships of 500 tons and above in international trade will have to be certified as complying with the legislation developed by the flag states and identified in the Declaration of Maritime Labour Compliance as well as with the ship owners’ measures to ensure ongoing compliance with the requirements. Ships without certificates or flagged to non-ratifying states will be subject to the Convention’s “no more favourable treatment clause” and may have problems when entering the ports of ratifying states. Under the MLC, 2006 every seafarer has the right to: n A safe and secure workplace that complies with safety standards n Fair terms of employment n Decent working and living conditions on board ship n Health protection, medical care, w elfare measures and other forms of social protection For more details including a tool for self assessment, please see http://www.dnv.com/industry/maritime/ servicessolutions/statutoryservices/mlc/
26 | Tanker UPDATE NO. 1 2013
Photo: DNV/Nina E. Rangøy
Text: Georg Smefjell, DNV
Quite a lot of work will have to be done by authorities, ship owners, crew manning agencies, recognised organisations and ship owners before ships can be certified, and the clock is now ticking. The success of the Convention is, as always, dependent on effective implementation and we encourage the industry to start work and/or continue to work with sufficient resources. DNV has worked on these matters for a long time and we are ready to help implement the MLC, 2006 effectively by providing:
Seminars and courses An extended document review/gap analysis n A voluntary declaration of compliance n Statutory certification n Crew Manning Office certification (regulation 1.4) n Support material for self-assessment (owners, manning agents, yards and governments). n n
For further information, contact your local DNV Office or send an e-mail to MLC@dnv.com.
Tanker market
Which way now for Tankers? 2012 did indeed prove to be challenging for the tanker market. On several occasions, earnings fell below fixed operating costs on many of the benchmark routes. Text: Patrick Tye, Senior Research Analyst, Gibson Shipbrokers, London
Ordering at basement level With the exception of the MR sector, tanker ordering has fallen to very low levels. More than three-quarters of all tanker orders in 2012 were for MRs, with the emphasis on eco tonnage. Some newbuilding market watchers feel that prices may have reached their basement level and that the tanker market may be about to experience a fresh wave of ordering. With the current vogue of building eco vessels, the temptation to jump in at lower pricing levels may be too hard to resist. Of course, the headache of the over-supply situation is with us now, with little prospect of it disappearing in the short term. Chinese dominance Rumours about a wave of orders to support Chinese
assets to keep the balance shipbuilding consheets ticking over. tinue to circulate the market from time to time. So far Political influence (thankfully) this has It is rare for a year to pass only amounted to without politics rearing its a handful of tanker head and influencing the orders. China, havtanker market. The ever ing attained shiptightening of sanctions building dominance, against Iran has at times it has been estimated proved ‘entertaining’ as that at least half of the country continues the nation’s shipto find ways to export its yards will go bankcrude oil. Prior to the rupt within the next ›› Patrick Tye, Senior Research Analyst, introduction of the sancGibson Shipbrokers, London. three years. Sales of tions (on 1 July), threats second-hand tonto crude supply coupled nage have remained steady throughout with events in other Middle Eastern counthe year, and as asset values continued to tries pushed up oil prices and, as a condecline, it was clear that there are owners sequence, fuel costs. 2013 promises to be waiting to pick off bargains, particularly another eventful year for the tanker marwith so much quality tonnage available. ket; increases in tanker supply are slowing With no let-up in financial pressures, down but, generally speaking, demand yet more companies have had to protect prospects still look fragile. Hence, it may themselves from bankruptcy or have at be another difficult year for many parts of least been forced to restructure their the industry, but there are still opportunifinances. At times, this has involved selling ties and some bright aspects to focus on. Photo: Gibson Ship Brokers
Rising bunker costs provided owners with a major headache but have also focused the market on two concepts – slow steaming and the advent of the eco ship. While neither of these concepts is new, they certainly became two of the most talkedabout initiatives, particularly the eco ships. On the supply side, while there has been a slowdown in the overall delivery profile, another 47 VLCCs hit the water while a record 47 Suezmaxes also entered service. Tanker demolition was up on last year’s total at 4.1 million dwt, which included 67 first-generation double-hulls. Lightweight prices in India during the 1st quarter of the year exceeded the USD 500/lwt level, which may have tempted owners to sell. Although prices have softened throughout the year, they are still at healthy levels at around USD 420/lwt (India). Impending legislation and rising fuel costs could provide the stimulus for the removal of more units this year.
››
$/Million
Newbuilding prices for tankers.
160
140
120
100 VLCC 80 Suezmax
60
Aframax 40 MRs 20 2008
2009
2010
2011
2012
Tanker update NO. 1 2013 |
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Recent delivery:
Carmen Knutsen
Name of Vessel
Carmen Knutsen
Type of Vessel
Tanker for oil (Shuttle tanker)
Ship Yard
Hyundai Heavy Industries Co., Ltd.
Ship Owner
Knutsen Shuttle Tanker AS
Delivery Date
2 January 2013
Class Notations
✠1A1 Tanker for Oil ESP BOW LOADING CSR SPM BIS TMON BWM-E(s) DYNPOS-AUTR(A) E0 F-AMC OPP-F HELDK-SH(CAA-N) NAUT-OC VCS-2 Recyclable COAT-PSPC(B)
Flag & Statutory cert.
The Republic of Malta
Dimensions (L/B/D)
264m x 48m x 23.1m
Capacity/DWT
156,296
Speed/Cruising range
14.5 knots / A1, A2, A3 (Worldwide)