the Baltic
the
JUNE 2010
What can be done about piracy? T h e O f f i c i a l M a g a z i ne o f t h e B a l t i c E x c h a n g e
JUNE 2010
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the
BALTIC The Baltic is the official magazine of the Baltic Exchange Tel: +44 (0) 20 7623 5501 E-mail: enquiries@balticexchange.com Website: www.balticexchange.com
Publisher
W H Robinson
editor
Lucy Budd The Baltic is published for the Baltic Exchange by Maritime Media (a division of Roxby Media Ltd) The Diary House, Rickett Street London SW6 1RU Tel: +44 (0) 20 7386 6100 Fax: +44 (0) 20 7381 8890 E-mail: inbox@mar-media.com The Baltic annual subscription rates £110 for UK, Europe or the world, sent airmail including P&P
Tel: +44 (0) 20 7386 6120 E-mail: lucy.budd@mar-media.com
SALES manager
David Scott E-mail: david.scott@mar-media.com
DESIGNER
Keith Clark ISSN 0967-0394 This publication is printed on PEFC certified paper. PEFC Council is an independent, non-profit, non-governmental organisation which promotes sustainable forest management through independent third party forest certification.
The Baltic is published on behalf of the Baltic Exchange
the Baltic
and is supplied to members as part of their annual
the
membership package. However, the views expressed in The Baltic are not those of the Baltic Exchange, its directors, its officers or the publishers unless expressly stated to be such. The Baltic Exchange is the world’s premier and oldest international shipping market. Most of the world’s open market bulk cargo chartering is negotiated at some stage by Baltic members who represent leading international companies. Other activities include the world’s most important market for buying and selling ships, specialist freight by air and commodity dealing. The Baltic Exchange operates a
JUNE 2010
What can be done about piracy?
strict code of business ethics encapsulated in its motto ‘Our Word Our Bond’. The Baltic Exchange disclaims any responsibility for the advertisements contained in this magazine and has no legal responsibility to
T H E O F F I C I A L M A G A Z I N E O F T H E B A LT I C E X C H A N G E
JUNE 2010
deal with them. The responsibility rests solely with the publisher.
theBaltic June 2010 www.thebaltic.com
1
Contents Chairman’s statement 7 Mark Jackson Baltic briefing 7
8 Baltic enhances Greek services 9 Global Freight Derivatives Forum 10 Baltic cricket team to take on Lashings World XI 11 Baltic Irish Dinner
10
12 Baltic Chairman’s Cocktail Party 14 The view from above 15 Passing the Port 16 Sporting contacts
17
Logbook 17 Gallic eccentricities Industry News 20 People, places, plcs
23
Baltic comment 23 Michael Grey State of the market 26 Tankers
26
32 S&P 33 BIMCO 37 Offshore 39 Dry bulk 41 Towage & salvage
37
45 Shipmanagement, crewing and education theBaltic June 2010 www.thebaltic.com
3
See more. POMAX lets you see more opportunities for profit in freight forwarding and other derivatives. It gives you all of the functionality of a “Big Bang” solution—but you’ll have it up and running in weeks, not years. Details at www.navita.com
First-tier functionality, right out of the box.
Contents Oxford Analytica 54 Iron ore exporters gain clout FFA 54
56 Looking forward Marine security 62 Policing the seas Environment
62
76 Achieving efficiency Shipbuilding and repair 90 Strike while the iron is hot Cargo focus 95 Breakbulk
76
Geographical focus 100 Canada Port Focus 104 Gothenburg 95
Legal news 108 Legally speaking Insurance 109 Insurance parlance
100
110 Insurance ITIC 112 Commercial profiles 124 Events
105
theBaltic June 2010 www.thebaltic.com
5
Reducing risk across the world’s freight routes
With over 80% of cleared dry FFA transactions and around 25% of cleared wet freight transactions, LCH.Clearnet is the world’s leading clearing house for freight. We’re also the only one with OTC default experience. Our OTC Freight service covers the most actively traded routes – twelve dry and eight wet – and is open to all brokers who are members of the Forward Freight Agreement Brokers Association. We also clear fertilizers, iron ore and emissions. Operators in all these marketplaces – the chartering companies, ship owners and trading companies – are increasingly keen to manage their risk through cleared trading opportunities. The stability and security of the LCH.Clearnet default fund makes clearing through us an attractive proposition. Find out more at www.lchclearnet.com
COMMODITIES | EQUITY & FINANCIAL DERIVATIVES | ENERGY | FIXED INCOME | FREIGHT | SECURITIES | INTEREST RATE SWAPS
Chairman’s message Mark Jackson
Chairman’s message T
he announcement that the Baltic Exchange is to set up a central screen – BaltEx – for dry freight derivative trading by the end of the year will have
taken few in the derivatives markets by surprise. The project was put in motion last year after the Oslo forum, where there was agreement from the FMIUG and the FFABA that a Baltic Exchange centered solution should be found. A submission for Multilateral Trading Facility status with the UK’s Financial Services Authority has been made, and we expect to have the screen up and running before the end of 2010. BaltEx will be run by a subsidiary company of the Baltic Tradewinds
Exchange – Baltic Exchange Derivatives Ltd. The background to this move has been both a change in the regulatory tone from financial regulators around the world in the wake of the 2008 financial market crash, and loud calls
Mark Jackson
from the users of freight derivatives for a system which allows trades to be entered anonymously
standard trades, but also continuing to develop
Sun Wei, our first Chinese speaking staff
and facilitates a simple straight through clearing
more sophisticated off-screen trades.
member, and Maria Tierris, who is our new
process to multiple clearers.
The Baltic Exchange Board is fully committed
representative in Athens.
Change is coming to the derivatives markets
to this project and we are convinced that this
Serving our members well also includes
and a Baltic Exchange solution ensures that the
is an important step for the Baltic to be taking
our role in binding together the social fabric of
shipping market retains control of this sector,
to enable the continuing evolution of the freight
the marketplace with get togethers such as
and that the style and characteristics of the
derivatives market. BaltEx is not designed to
the Chairman’s Cocktail Party (see page 11
successful freight derivatives market are retained
generate huge returns, but as a service for
for photos) and the Young Baltic Association
at a time of change. We are convinced that
members which will help develop the freight
evenings. The Baltic encourages the networking
if we fail to act now, change will be forced
derivatives marketplace.
provided by the various Baltic Exchange sports
Of course, many of the nearly 600 companies
clubs and gives financial support, services and
BaltEx will help improve liquidity in FFA
in Baltic Exchange membership currently have no
help in promoting events. The Cricket Club is
trading volumes by making it easier for existing
direct involvement in the paper markets and will
holding a big charity day, with a match against
traders to trade standardised contracts as well
not be directly affected by this announcement.
Lashings in July. And this year has seen a
as potentially opening up the market to other
We continue to provide our members both
Cycling Club founded and the re-emergence of
players who have to date stood on the sidelines.
in the UK and overseas with a wide range
the Go-Kart Club. In Singapore we have 5-a-side
The concept presents a unique opportunity for
of services. Our disputes resolution service
football league and are always looking to help
all freight derivatives stakeholders to benefit from
and advice for companies fixing vessels with
members develop contacts. I continue to believe
faster execution, a more efficient transmission to
new counterparties continues to be in strong
that the Baltic Exchange plays a crucial role at
clearing and the inclusion of market participants,
demand. Our market reports, indices and route
the heart of the shipping market place, bringing
large and small, as well as high supervisory
assessments are used across the physical as
together and defending competing interests as
and compliance standards. Our goal is to not
well as paper markets.
well as providing services to an international and
on the market.
disintermediate brokers. The FFA broker will
Building on the opening of a Singapore
continue to play a central role, both executing
office three years ago, we have now recruited
theBaltic June 2010 www.thebaltic.com
growing membership base.
7
Baltic briefing
Baltic enhances Greek services T
he
Baltic
Exchange
has
opened
a
representative office in Athens, headed by
qualified lawyer and former P&I club executive Maria Tierris. The Baltic has a growing number of Greece-based member companies in and around Athens and the new office will provide these members with local support as well as help increase the Baltic’s profile in the region. “I hope to help increase awareness of the benefits of membership to Greek shipping companies,” said Tierris. “The Baltic Exchange offers its members the security of doing business in an environment where counterparts have been
Maria Tierris
approved by other members of the Exchange.” Baltic Exchange chief executive Jeremy Penn said: “The Greek market has always been a
in Athens, we will be able to offer the Baltic’s
assistance with physical market commercial
knowledge and expertise locally.”
disputes. As well as its informal mediation
hugely important one to the Baltic Exchange and
The Baltic’s services include a huge range
service, the Baltic can also provide advice to
it is one which we hope to build on by expanding
of physical and derivative freight market
members unsure about a potential counterparty.
our services in Greece. By having a legally
information, including route assessments, fixture
qualified Greek national available to members
lists and forward curves. The Baltic also provides
Baltic appoints new head of marketing F
Check before fixing T
the Baltic Exchange. Responsible for growing
scheme, member companies are able to report
ormer BP and International Petroleum Exchange executive Jackie Bullimore has
been appointed as the head of marketing at
he Baltic has a successful record in dealing with defaulting counterparties through a
posting system. Under the long-established
the Baltic Exchange’s membership and revenue
market participants who contravene the Baltic
base and reinforcing the Baltic’s role at the heart
Code. All member companies are encouraged
of the freight derivatives market, she is based
to check with the Baltic Exchange before dealing
in London.
with a company with whom they have no
Baltic Exchange chief executive Jeremy Penn
previous experience.
said: “We are delighted that Jackie has joined
The Baltic mediates informally on behalf of
the team. She has many years of experience
members to help recover unpaid commissions,
in the oil markets, but will be focused on all
demurrage claims and unhonoured arbitration
aspects of the shipping markets. Her range of
awards. It also maintains a database of
experience and contacts will be of great benefit
companies with whom Baltic members have
to the Baltic Exchange.”
had difficulties in the past. This service covers
She replaces Janet Sykes who has joined
both physical market and freight derivative
Clarksons.
disputes. All this information is available to Baltic Exchange members.
E-mail: jbullimore@balticexchange.com Tel: +44 (0)20 7369 1637
A full listing can be found in the members-only Jackie Bullimore
8
theBaltic June 2010 www.thebaltic.com
area of www.balticexchange.com
Baltic briefing
Global Freight Derivatives Forum: Shanghai, 16 September T
New Baltic Exchange companies
he 2010 Baltic & FFABA Global Freight
and sees traders and brokers from across the
Derivatives
on
world meet to discuss the development of the
16 September in Westin Bund Centre, Shanghai.
industry. Recognising the importance of China
The half day forum will comprise of keynote
and the region to the continued growth and
speeches from leading market practitioners and
development of price risk management tools
The Baltic is delighted to welcome the
panel discussions considering topics such as
for the freight industry, we are delighted to be
following companies into membership
the interaction between the iron ore swaps and
holding our event here.”
Forum
will
be
held
FFA markets, the priorities for FFA market partic-
Sponsored by the Baltic Exchange and the
ipants globally and the development of the FFA
FFA Brokers Association, attendance at the
market in the Asia-Pacific region in particular.
event is free for Baltic Exchange members and
Baltic Exchange chief executive Jeremy Penn
invited guests.
said: “Whilst we have run numerous events in China before, this is the first time that our
See www.balticexchange.com/shanghai2010
Global Freight Derivatives Forum has been held
for programme and booking details.
in China. The event is a key one for the industry
Director appointments 2010 C
Cerrito 1186, Piso 7, Capital Federal, Argentina Tel: +54 11 5237 1000 E-mail: atlantic@atlantic-chart.com.ar
Century Chartering Ltd 6th Floor, Kanda-Takeo Building, 3-12-10, Kanda-Nishikicho, Japan Tel: +81 3 5280 7777 E-mail: century@ccljp.co.jp
Cleartrade Exchange Pte Ltd
olm Nolan of Agelef Shipping and Quentin
shareholder directors. Colm Nolan replaces
Soanes have been elected and re-elected
Michael McClure who steps down at the July
respectively to the Baltic Exchange board as
Atlantic Chartering SA
Annual General Meeting.
1 Robinson Road, #18-00 Aia Tower 048542 Singapore Tel: +65 6535 1944 E-mail: info@thecleartrade.com
EnBW Trading GmbH
Visit the Baltic at Posidonia T
he Baltic will be exhibiting at the Posidonia
Sadly departed The Baltic regrets to report the passing of the following Baltic Exchange members:
tradeshow this June and members and oth-
ers interested in meeting a representative should come and see us. We will be found within the Maritime London lounge at stand number 280. Visitors will be able to have a demonstration of the Baltic’s online services as well a comprehensive overview of the organisation. Also on the stand will be representatives
Darrach Waterkeyn
Durlacher Allee 93, D-76131 Karlsruhe Germany Tel: +43 721 63 17522 E-mail: freight@enbw.com
G-Ports (UK) Ltd 1st Floor, 2 Lanhydrock Villas Kenwyn Road, TR1 3SH Tel: +44 7970 595517 E-mail: info@g-ports.com
KAMCO
Buries Markes for many years, he retired from
ASEM Tower, 159-1 Samseong-dong Gangnam-gu, South Korea Tel: +82 2 2103 600
membership in 1994.
Navigator Shipbrokers Ltd
John Pinder
1A St Vincent Avenue, Remvera, Auckland New Zealand Tel: +64 9 522 9645 E-mail: navigator@navship.co.nz
Mr Waterkeyn was first elected to the Baltic Exchange
in
1968.
Having
represented
from Heidenreich Innovations, the company
Members will learn with deep regret of the death
which operates the Baltic99.com website, run
of John M Pinder on 25 January 2010. Mr Pinder
in conjunction with the Baltic. The service is
was first elected to the Baltic Exchange in 1978
designed to improve accuracy and efficiency
and represented Lykiardopulo & Co (Chartering)
when dry bulk shipowners complete and
Ltd until in 1992 he became a retired member.
distribute vessel questionnaires to charterers and
R R Rate
c/o Nordea Bank Norge Middelthuns gate 17, Oslo, Norway Tel: +47 22 48 50 00
Mr Rate was first elected to the Baltic Exchange
Standard Chartered Bank
in 1969. He represented both Fafalios and F T
1 Basinghall Avenue London EC2V 5DD Tel: +44 20 7885 8888
port terminals. The website allows for automatic completion by linking over 100 of the currently required questionnaires to a common database. In addition, the website allows the user to search the database for specific information about each vessel and to easily keep track of certificate dates.
Everard during his membership, retiring in 1982.
Bob Maddox
Nordea Bank Finland Plc
Mr Maddox was first elected to the Baltic
Trayport Ltd
Exchange in 1955, representing William Shyvers
4th Floor, Rose Court 2 Southwark Bridge Road, London SE1 9HS Tel: +44 20 7960 5500
for many years until he became a retired member in 1990.
theBaltic June 2010 www.thebaltic.com
9
Baltic briefing
Baltic cricket team to take on Lashings World XI 11 brave Baltic Exchange cricketers will
He added: “The club even boasts its own
have the chance to take on the Harlem
Test cricketer Jack Richards who kept wicket for
Globetrotters of world cricket, the Lashings
England in the Ashes winning team of 1986/7,
World XI, in a charity Twenty20 match at the
and we remain hopeful of another Elvis Presley-
Honourable Artillery Club’s (HAC) ground in the
style comeback for the event!”
Three Peaks Challenge
The afternoon presents a unique opportunity
City of London on Friday 23 July. The Lashings team, which is celebrating
for over 300 of London’s shipbrokers, charterers,
West Indian legend Richie Richardson’s benefit
traders and owners to rub shoulders with
year, will have a distinctly Caribbean flavour. The
these cricketing celebrities before the match
team features the pace duo Curtly Ambrose
in the Prince Consort rooms of the HAC at a
and Courtney Walsh as well as Viv Richards,
champagne reception. This is followed by a
Gordon Greenidge and even the great Brian
three course luncheon, a charity auction and
Lara, who is currently considering a comeback to
Twenty20 match. The day is hosted by Test
county cricket with Surrey. Other regulars include
Match Special’s unmistakeable voice of cricket,
famous ex-England players such as Graeme
Henry Blofeld OBE.
Hick, Devon Malcom and Phil Defreitas, whilst
Supporters or potential players can follow
pace aces of the calibre of Jason Gillespie and
the club through the season on its Facebook
Mohammad Akram are sure to test the Baltic
homepage “Baltic Exchange Cricket Club”. Proceeds from the event will be going
men’s courage on the pitch.
A
t the end of June, teams from across the
However, according to Baltic team captain
to shipping charity The Sailor’s Society and
Jamie Freeland of AM Nomikos, the Baltic can
although more than 25 tables of 10 places each
of Jeremy Penn, Cris Eccleston and Willy Lyth
boast cricketers who play to a good standard. “We
have already been sold, should companies wish
from the Baltic, will be racing up the UK’s three
have leg-spinning batsman Sid Nair (Clarksons),
to take one of the few remaining tables or take
tallest mountains in a bid to raise funds for the
explosive batsman Fraser Larke (ICAP) and
individual tickets, they should contact:
Sailors’ Society. The challenge involves climbing
vice-captain Charlie Russell (Shearwater), whilst
shipping community, including one made up
up and down Ben Nevis in Scotland (1,344m),
classy new signings such as Henry Walpole (MC
Crispin Eccleston
Helvellyn in the English Lake District (950m) and
Shipping) and Graham Booth (Braemar) have
E-mail: cecclestone@balticexchange.com
Snowdon in Wales (1,085m) within 24 hours.
raised hopes that shipping’s premier cricket team
Tel: 020 7369 1654.
can give a good account of themselves on the
To contribute to the fundraising effort see
pitch and even pull off a shock result.”
www.justgiving.com/The-Baltic-Exchange
Marine Capital sets triathlon challenge M arine Capital has invited all members of the
The London Triathlon is the largest triathlon in
Baltic to compete in the London Triathlon
the world, with over 8,000 people participating
on 7-8 August in aid of Concern Worldwide,
every year.
organisation
Marine Capital has kindly offered to pay
dedicated to reducing suffering and ending
the registration fee for teams taking part, so
extreme poverty.
all money raised will go directly to Concern
an
international
humanitarian
Worldwide.
10
The winning team will receive the Concern
Cup sponsored by Marine Capital.
theBaltic June 2010 www.thebaltic.com
For more information contact Oksana at Marine Capital on +44 (0)20 7898 9335.
Baltic briefing
Baltic Irish Dinner T
his year’s Irish dinner attracted the usual full
mistakenly kept calling the guest speaker Jimmy
integrated schools in Northern Ireland, was the
house of 500, with the guest speaker the
Nelson, joined Jimmy in singing with the band,
grateful recipient of a record £11,000 raised at
well known actor Jimmy Nesbitt, who produced
along with another famous Irish actor, Adrian
the event. David Beckett, Chairman for the past
a highly entertaining speech. The society’s stal-
Dunbar, who had come along for the craic. The
two years, will be succeeded in rotation by Brian
wart master of ceremonies, Kelly Wilson, who
Integrated Education Fund, which runs over 70
Nixon for the next two years.
Young Baltic Night O
ver 200 young Baltic members enjoyed a night at Pause Bar in London’s Leadenhall Street this May. Membership of the association
is open to all members of the Baltic under the age of 35. The association holds regular social gatherings throughout the year. For further details please contact Crispin Eccleston: Tel: +44 (0)20 7369 1654 E-mail: ceccleston@balticexchange.com
Philip Trish (EDF Man), Mike Ackerman (Baltic Exchange) and Mark Pauchet (MSI)
Tom Foulger (Poten) & Mark Mackay Lewis (Clarksons)
Charlie Oughton, Kirsty Marsh and Alex Lindsay (Lykiardopulo & Co)
theBaltic June 2010 www.thebaltic.com
11
Baltic briefing
Baltic Chairman’s Cocktail Party Over 500 Baltic members and guests enjoyed an evening of champagne and canapés at London’s Christchurch, Spitalfields in May. Hosted by the Baltic chairman, Mark Jackson, the evening was once again an enjoyable occasion, bringing the shipping market together under one roof.
The Lord Mayor of London, Nicholas Anstee, and Mark Jackson,
Meng Shen (SSY), Yuan Bo (Cosco), Ying Sun (Charterhouse
chairman of the Baltic Exchange
Shipbroking)
Jeremy Penn (Baltic Exchange), David Hughes and Barrie Wooderson (Baltic Exchange)
12
theBaltic June 2010 www.thebaltic.com
Baltic briefing
Siri Sundal (Clarksons Securities), Simon Trowell (PacBasin), Francis Trowell and Mrs Trevor Marsh
Kamelia Koleva (Howe Robinson), Monir Ahmadi (Howe Robinson) and friends
Jim Davis (IMIF), Efthimios Mitropoulos (IMO)
Chris Reilly (BRS Futures), Leslie Dryvers (Louis Dreyfus Paris), Darren Rissetto (BRS Futures)
theBaltic June 2010 www.thebaltic.com
13
Baltic briefing
The view from above Baltic Air Charter Association chairman Dick Gilbert on aviation delays
T
he maritime community must have
easy to establish exactly how many flights
After a couple of days, our humble operations
looked on with bemused curios-
were cancelled as a result, but something in
office received a rare visit from Skyways’ boss
ity as the aviation industry periodically
the order of 15,000 per day is likely. On that
Eric Rylands, who instructed us to forget about
grounded itself during the ebbs and
basis, the volcano cancelled more flights, for a
our summer timetable, and operate as many
flows of volcanic clouds from Iceland recently.
much longer period, and inconvenienced more
flights as possible, using all aircraft and crews to
Although not my area of expertise, I suppose
passengers than 9/11 did.
their maximum until further notice.
that shipping has nothing comparable in its
There has never been a peacetime European
Fortunately, we operated our own coaches
history (other than wars perhaps) that has so
equivalent circumstance that has grounded so
and facilities in Beauvais, so we were able to
comprehensively halted trading for such an
many for so long, but it’s not entirely without
keep going even when Le Bourget airport closed
extended period.
precedent. On a much smaller scale I remember
down, and BEA finally had to throw in the towel,
For the airline business, there is a recent
a gradual strangulation of air services in 1968
abandoning one of their Vanguards in Paris.
precedent of course – the grounding of all flights
which affected my little corner of the aviation
They had been navigating across France using
in the USA following the terrorist activity in New
world.
road maps for some days, as the radio beacons
York on 11 September 2001. Immediately after
May 1968 in France saw the largest
had been switched off by militant engineers, and
that incident, 5,000 flights were stopped within
general strike ever to bring the economy of an
there was no alternative system (we were all
three hours (one every two seconds), affecting
industrialised nation to a complete halt. Starting
lucky that the weather remained fine and clear).
an estimated 1 million passengers. Around
with student protests, it resulted in a strike of
Skyways, as the last airline still flying, had the
30,000 flights a day take place in the United
11 million workers for more than two weeks,
satisfaction of bringing the BEA crew back to
States, so the consequences were dire.
and nearly collapsed the de Gaulle government.
London on one of our flights.
The ban started to be lifted very gradually the
Ironically, the protests forced a general election
Eventually, the Beauvais control tower staff
following day, and by 13 September a new set
in the June, which returned the Gaullist party
walked out, and we were stuck. There was a
of airport security rules was created, enabling
to office even stronger than it had been before!
proposal that I would be sent to Beauvais with a
flights to recommence. Using these procedures,
At the time, there were several ways to get
radio and a few basic bits of equipment, to act
most airports were back in operation by 14
from London to Paris. In descending order of
as a temporary controller. Just as I was about to
September, so the ‘total’ regional ban effectively
ticket price, they were: a BEA (predecessor
board the flight to set this up, a message arrived
lasted only around one day.
of British Airways) flight in a Vickers Vanguard
from France which said “Do not send Gilbert.
In contrast, the initial European shutdown
from Heathrow to Le Bourget; take the British
Trouble if he comes”. Workers had threatened to
was more protracted. The first hint of a problem
United Airways “Silver Arrow” service by train
block the runway if we went ahead with the plan,
came ‘out of the blue’ (as it were) on 14 April,
from Victoria, BAC One Eleven jet to Le Touquet
so our flights finally ground to a halt. I still have
with a total UK airspace ban being applied from
and train again to Paris Gare du Nord; fly
that signal, and the warning still applies.
noon on Thursday 15 April. Other European
with Skyways Coach-Air from Lympne in Kent
countries became affected one by one, as the
to Beauvais, using connecting coaches from
cloud spread.
London and on to Paris; use the Hovercraft from
UK test flights took place on 15 April (by
Ramsgate; or take a cross-Channel ferry.
the Met Office) and 18 April (by British Airways)
I worked for Skyways and, as the French
but the airspace remained closed. Flights were
strike started to bite, the first effect was closure
eventually allowed to recommence from the
of the ports, which shut down the ferry and
evening of 20th April, by which time the total ban
hovercraft routes and considerably increased
had been in force for five days. Because different parts of Europe (and never
our passenger loads. Next to close was the Silver Arrow because French trains stopped
all of it) were affected on different days, it isn’t
operating.
14
theBaltic June 2010 www.thebaltic.com
BACA represents the interests of commercial aviation companies, particularly in the aircharter industries and markets. Membership is around 135 companies, including airbrokers, charter airlines, airports, business aircraft operators, freight forwarders, consultants and others. See www.baca.org.uk for further details.
Baltic briefing
Passing the Port As port remains king, stunning still red wines and improving whites strive to be noticed in the marketplace. David Hughes offers an overview of Portuguese wines.
T
hey all came, bringing their vines, the
with Alentejo, the closest main
with many having that slight
Phoenicians, the Greeks and of course
region to the holiday rich resorts
spritz which is so refreshing
the Romans, who named their new
of Algarve. Here Arinto and
province Lusitania, what we now call
Antao Vaz produce dry yet aro-
Portugal, and from where much of the wine
matic whites with hints of nuts and
ever, a range of styles abound
produced was exported to the Roman Empire.
peaches (seek Fundacao Eugenio
and again you generally get what
de Almeida, Pera-Manca, Alente-
you pay for. Also, some more than
Portugal has hundreds of indigenous grape
when you’ve pulled the cork in the heat of summer. How-
varieties – many attributed to Henry the Navi-
jano 2007, expensive but excel-
fair sparklers are also coming out
gator, who bought back vines from his many
lent from good wine shops).
of the Alentejo.
The best advice with
Last and not least I must men-
Records show that wine was exported to
Portuguese wines really is
tion the fortified wines of Madeira,
England as early as the twelfth century, and a
to pay that extra £2-£3
which belie the perception of
treaty in 1353 allowed Portuguese craft to fish
per bottle – it should be
elderly well-to-do English people
in English coastal waters against favourable and
worth it.
drinking it with fruit cake on bone
nautical journeys.
china. I have enjoyed tasting quite
increased importing and consumption of Portu-
Red varieties are now
guese wine (remember, it was not done to toast
exploding, for as well as mak-
a few recently, the variance of
our monarch with the wine of his enemy!)
ing port way up north in the
styles of the four white grape varie-
Today, Portugal has, on the one hand the
searing heat of the slopes of the
ties: Sercial (dry and pale), Verdelho
established port houses, the testimony of his-
Douro Valley, where the grapes
(medium), Bual (medium-sweet) and
toric cooperation, where English names abound:
are still trodden by the pickers
Malmsey (Malvasia) the richest – all
Taylors, Croft, Graham, Cockburn etc; then there
and volunteers in ‘the old way’,
with their degrees of smoky, burnt sugar
those same grapes are producing red
Mateus and the thin, acidic wines called ‘Vinho
of wonderful complexity. The top variety of the
Verde’. Latterly, Portugal has made huge, suc-
region is the stunning Touriga Nacional, which
You can pop into your local Morrisons and try
cessful strides to improve the quality of its wines,
is blended with other excellent varieties Touriga
the fairly good Point West 2008 red and a fairly
which was consistently apparent at the Wines of
Franca, Tinta Barocca and Tinta Roriz (known
quaffable, horribly-named Pink Elephant rose
Portugal tasting I attended within a huge mar-
as Aragonez in the south and Tempranillo in
2009 (£5.00) and there’s the good-value Tagus
quee at Lords during mid April.
Spain). Try to find the excellent Douro wines from
Creek range (widely available).
Vinho Verde is a region where once more red was produced than white – both of question-
wines
aromas and sweetness as they age, some up
are the ubiquitous, but successful rose wine of
Quinta de la Rosa. Waitrose stock ‘Altano’ 2007 (£6.49), a good ‘foodie’.
to a minimum of 20 years in oak casks.
And if you’re Cliff Richard fans there are good white, red and rose offerings from his Adega do Cantor winery in the Algarve.
able quality. Today, the planting and pruning of
In the regions to the south, Dao (same varie-
higher quality vines such Alvarinho, Loueiro and
ties as the Duero), Barraida (also Baga variety)
Trajadura varieties (often blended) has moved
and Estremadura (soon to be changed to VR
David Hughes was a shipbroker from 1961 to
the white wines of the region right up the lad-
Lisboa) are producing excellent options. Alen-
1983 when he “moved from shipping to sip-
der. Look for two really good Vinho Verdes:
tejo’s main red varieties are Aragoez (‘Tempra-
ping” – opening a wine bar-restaurant in Old
Soalheiro, Primeiras Vinhas, 2008, lovely crisp
nillo’) and Trincadeira. Right now I am seeking
Spitalfields in 1984. After 25 years, the busi-
acidity with stone fruit and melon textured fla-
out Adega Cooperative de Portalegre’s won-
ness was sold, and he is now a wine consult-
vours (around £13-14 in good wine shops), and
derful Quinta da Cabaca 2006 (red) and their
ant. A retired member of the Baltic Exchange,
Quinta de Azevedo 2009 (£6.69 Waitrose), a
Conventual Reserva 2008 (white). If you come
he conducts corporate, company and private
‘patio aperitif’, spritzy, light and crisp with citrus
across them, snap them up – you won’t be dis-
wine tastings and is available for information
and minerals – both will blow the old stigma out
appointed. Waitrose have the delicious Tinto da
and the supply of wines.
of the window.
Anfora, Alentejano – great value at £7.29.
Other excellent white wines are grown
Rose wine, on the back of the still popular
throughout the regions down to the south,
Mateus Rose, is very much on the increase,
theBaltic June 2010 www.thebaltic.com
www.thewine-enthusiast.co.uk david@thewine-enthusiast.co.uk
15
Baltic briefing
Sporting contacts There are many sports clubs associated with the Exchange and in most cases they are open to both members and staff of member companies Baltic Association Football Club
Lawn Tennis Club
Sub-Aqua Club
Stephen Calafti
Nick Hubbard
Lorraine Burns
Anglo Greek Chartering, The Baltic Exchange
Galbraith’s Ltd
The Baltic Exchange
38 St Mary Axe, London EC3A 8BH
Bridgegate House
38 St Mary Axe, London EC3A 8BH
Tel: +44 (0) 20 7283 9621
124-126 Borough High Street,
Tel: +44 (0) 20 7369 1638
London SE1 1BL
E-mail: lburns@balticexchange.com
Cricket Club
Tel: +44 (0) 20 7378 6363
Young Baltic Association
Jamie Freeland AM Nomikos, 4th Floor
Sailing Association
Crispin Eccleston
40 Grosvenor Gardens, London SW1W 0EB
Simon Cox
The Baltic Exchange
Howe Robinson Shipbrokers
38 St Mary Axe, London EC3A 8BH
Golfing Society
77 Mansell Street, London E1 8AF
Tel: +44 (0) 20 7369 1654
Chris Cox, c/o Frank Symons Ltd
Tel: +44 (0) 20 7457 8421
E-mail: ceccleston@balticexchange.com
Devonshire House
Tel: +44 (0) 20 7488 3444
146 Bishopsgate, London EC2M Tel: +44 (0) 20 7377 5423 E-mail: info@balticgolf.co.uk
Key Baltic Exchange contacts Management
Government Broker
Marketing
Tel: +44 (0) 20 7283 9300
Pat Swayne
Jackie Bullimore
Fax: +44 (0) 20 7369 1622/1623
Tel: +44 (0) 20 7369 1668
Tel: +44 (0)20 7369 1637
VPN 171 2000
Fax: +44 (0) 20 7623 6644
E-mail: jbullimore@balticexchange.com
E-mail: enquiries@balticexchange.com
E-mail: pswayne@balticexchange.com
Chief Executive
Dispute Resolution
Willy Lyth
Jeremy Penn
Barrie Wooderson
Tel: +44 (0)20 7369 1625
Tel: +44 (0) 20 7369 1624
Tel: +44 (0) 20 7369 1674
E-mail: wlyth@balticexchange.com
E-mail: jpenn@balticexchange.com
Fax: +44 (0) 20 7623 6644
Freight Market Department
E-mail: bwooderson@balticexchange.com
The Baltic Exchange (Singapore)
PA to Chairman and Chief Executive
Communications
8 Eu Tong Sen Street
Jill Bradford
Bill Lines
#17-87 The Central
Tel: +44 (0) 20 7369 1621
Tel: +44 (0) 20 7369 1653
Singapore 059818
E-mail: jbradford@balticexchange.com
E-mail: blines@navigatepr.com
Tel: +65 6377 0654
Philip Williams
E-mail: pwilliams@balticexchange.com
Baltic Exchange Charitable Society
Membership Manager
Richard Butler
Tel: +44 (0) 20 7369 1633
Tel: +44 (0) 20 7283 6090
E-mail: jharrison@balticexchange.com
Jackie Harrison
E-mail: richard.butler@baltic-charities.co.uk
Events and Room Hire Head of Finance
Crispin Eccleston
Duncan Bain
Tel: +44 (0) 20 7369 1654
Tel: +44 (0) 20 7369 1627
E-mail: ceccleston@balticexchange.com
E-mail: dbain@balticexchange.com
16
theBaltic June 2010 www.thebaltic.com
Baltic website: www.balticexchange.com
Logbook
Gallic eccentricities The design of ships often betrays their country of origin, none more so than in the case of France. Although responsible for a number of real beauties, it has also spawned a host of oddities, says Ambrose Greenway
S
ociété des Transports Maritimes was
Alsace, were ordered from FCM La Seyne, all for
later given limited passenger accommodation
founded in Marseilles in 1865 by dis-
delivery in 1866, and they were unusual in being
and a few had long lives, Franche Comté
tinguished French civil engineer Paulin
four-masted auxiliary schooners of just over
serving its owners for 45 years before being
Talabot to exploit a 13-year contract
1,000 dwt with engines placed aft.
scrapped in Genoa.
to carry iron ore from the newly discovered mine
The Mokta mine turned out to be less
Following on from the ‘Talabots’, as they
at Mokta in Tunisia to the smelters of Southern
profitable than expected and a number of
were known, was a group of 40 even more
and Central France by means of his Paris-Lyon-
the class were diverted to carry materials for
unusual five-masted auxiliary schooners built for
Mediterranée railway. Nine identical iron ships,
the construction of the Suez Canal, returning
the French government on the US Pacific Coast
named after French regions beginning with
with cargos of Egyptian cotton. Some were
in 1918. France had been forced to order abroad
One of SGTM’s distinctive early ore carriers leaving Bone
theBaltic June 2010 www.thebaltic.com
17
Logbook to replace heavy WW1 losses but when all steel tonnage building in the USA was requisitioned for the US war effort, they had to resort to wooden construction. The resulting three-hold ships had a deadweight capacity of 3,500 tonnes and were driven by a pair of reciprocating steam engines driving twin screws. One was lost on its maiden voyage but the class as a whole was never successful and saw minimal service in Europe before being laid up. Most had gone by 1925 but Gerbeviller, one of only a few sold to private interests, lasted until the early 1930s after conversion to a sailing ship. Tentative airmail services began during WW1 and on Christmas Day 1918 Lignes Aeriennes Latécoère started a link between Toulouse and Barcelona, extending to Rabat and Casablanca the following year. By 1925 it had reached Dakar, where mail for South America was loaded onto one of six surplus sloops loaned from the French Navy for on-carriage to Natal in Brazil. Latécoère sold out in 1927 to a French-born Brazilian banker who renamed the company Aéropostale. The old naval units were replaced in 1930 by four newbuildings from yards in Bordeaux, Nantes and Sète. The 17-knot, 480grt Aéropostale I, II, III and IV performed the crossing in just over four days but were notorious rollers and II was
Souchez, one of 40 wooden auxiliary schooners built in the USA in 1918
lost with all hands in August 1932. The following year, the bankrupt Aéropostale was absorbed
their history after release is obscure, though the
Eridan. Though rather ugly in appearance,
into the newly formed Air France and the
former I was scrapped at Casamance in 1950
their perceived ‘modernity’ was certainly eye-
remaining ships were subsequently renamed Air
and III was later wrecked on the Ivory Coast.
catching and provided a much needed boost to
France I etc and broadened to improve stability.
In 1929, Messageries Maritimes broke with
the company, whose elderly tonnage was being
Taken up by the Navy in WW2, they later worked
tradition and fitted square mushroom-topped
overshadowed by its rival P & O. Two groups
from Dakar on allied anti-submarine patrols but
funnels to its new motor liner, the 9,927grt
of similar ships followed; the 17,000grt Felix
The diminutive Aéropostale III and its sisters initially carried South American airmails between Senegal and Brazil but later used the Cape Verde Islands to shorten the passage time
18
theBaltic June 2010 www.thebaltic.com
Logbook
MV Felix Roussel (1930) was the second of Messageries Maritime’s quaintly named ‘Nautonaphtes’, an odd phrase coined by company president Georges Philippar
Roussel, Georges Philippar (lost by fire in the Gulf
the 25-knot, 29,253grt Pasteur to replace
personnel and troops to French Indo-China
of Aden in 1932) and Aramis and the 11,500grt
its 42,000grt flagship L’Atlantique, which
and later Algeria.
Jean Laborde and Marechal Joffre. A third ship,
had burned out in the English Channel in
In 1957 it was sold to Norddeutscher
President Doumer, entered service in 1935 with
January 1933. Its profile was unique with a
Lloyd and as Bremen was converted for North
a single oval funnel and those which survived
single huge funnel placed well forward, giving it
Atlantic service with new engines and a more
the war were altered to match, improving their
considerable presence despite a seeming lack of
modern funnel. Resold to Chandris Lines in
looks no end. Felix Roussel, which had become
balance. After transporting French gold reserves
1971, it was used for cruising as Regina Magna
Arosa Sun in 1955, lasted until 1974, spending
to Halifax, it went on to perform valuable
before becoming a Saudi accommodation ship
the final 14 years as an accommodation ship for
service as a wartime troopship under Cunard
in Jeddah in 1974 and finally foundered in
steel workers at Ijmuiden.
White Star management. It never entered its
1980 as Filipinas Saudi I whilst under tow
On the eve of WW2, Compagnie de
intended South American service and spent
to Taiwanese breakers.
Navigation Sud Atlantique took delivery of
the majority of its career carrying government
The unmistakeable Pasteur transiting the Suez Canal on a return voyage from Vietnam
theBaltic June 2010 www.thebaltic.com
19
People, places plcs
Industry news MOL
trading and broking personnel in both the physi-
MOL has announced that its president Akimitsu
cal and derivatives markets. More traditional
Ashida has now been appointed chairman of
chartering staff performing a scheduling rather
the board. Senior managing executive officer
than operating role, were receiving bonuses
Koichi Muto takes over as president. The new
within the 20% to 60% range, Mr Parry says.
appointments will be confirmed at a meeting
While the rumour-mill did rather exaggerate
of the board of directors following the annual
quite how many chartering millionaires were
general meeting of shareholders on June 22,
being created: “Bonuses of between 200%
2010.
and 400% were being received by top performers and senior managers in handson trading roles.”
HSH Nordbank
Matters
became
rather
grim-
Torsten Temp has been appointed to the
mer last year, when some 40% of
management board of HSH Nordbank, with
companies in the sector froze sala-
responsibility for Hamburg/Kiel.
ries,
He will be responsible for the Shipping,
with
13%
expected
to
do
so for 2010.
Transport and Energy market units. From 1989
However, hiring freezes have been
Torsten Temp worked for UniCredit, most
lifted in most cases and Spinnaker
recently as head of the global shipping unit.
says it notes an upturn in the maritime recruitment market since September last year, with reductions in the time it
Shipbroking salaries review
takes to make a placement pointing to
Shipbroking and chartering salaries paid to
returning employer confidence. Spinnaker is
freight traders this year for 2009 have been a
making three times as many broking, chartering
“picture of extremes” according to recruitment
and freight trading placements than it did last
attaining salaries
consultants Spinnaker.
year and the level of vacancies in the operations
of
segment has risen considerably, Mr Parry says.
£100,000 within the
While some companies have not paid
£70,000
to
bonuses to staff in freight trading roles, others
The tanker sector has notably picked up and
first five years, with bonuses over the same
have paid between 200% and 300%, par-
Spinnaker has made more placements in the
period moving from a modest 15-30% at the
ticularly in the dry market, says Spinnaker
first quarter of 2010, particularly in the product
outset to 100% plus for good performers after
chairman Phil Parry.
and chemical tanker markets, than in the previ-
five years.”
Following the market crash in September
ous three quarters put together.
Presently, median to upper quartile salaries
2008 and the plunge in the Baltic Dry Index,
Graduate recruitment has also started to pick
for freight traders with 2-5 years experience
expectations were high for a “bloodletting” in
up in 2010 after a very quiet 2009. Salaries in the
range from €65-80,000 in mainland Europe, £55-
2009, according to Mr Parry. With the surge in
UK are closer to £25,000 than the higher end
65,000 in the UK, $120-150,000 in the US and
Chinese imports of iron ore and coal buoying
of the scale, Mr Parry says. This compares with
S$90-140,000 in Singapore. “By definition, the
the market however, the last year has seen a
starting salaries in the US of $40,000, with sala-
median to upper quartile only reflect one-quarter
two tier market open up between those who
ries in mainland Europe a bit lower at between
of people in the market,” explains Mr Parry.
called the market right in 2007/2008 and those
€24,000 to €28,000.
“There are of course many people earning more
During the high period freight trading staff
and less than these figures, but it is in this pay
Some of the biggest bonuses ever seen in
could quite commonly double their salaries
range, rather than above the upper quartile as
shipping were paid between 2005 and 2008.
within two to three years, Mr Parry says. “Very
it was in 2007-2008, where most recruitment is
100% bonuses were commonplace for freight
good freight trading and broking staff were
now taking place.
20
theBaltic June 2010 www.thebaltic.com
who did not.
People, places, plcs LCH Clearnet
UK tonnage tax warning
Citigroup
Jacques Aigrain has been appointed non-exec-
Moore Stephens has warned that companies
Citigroup, a US bank that already trades a
utive chairman of LCH Clearnet Group. Aigrain,
in the UK tonnage tax scheme should urgently
significant proportion of freight derivatives from
who took over on 6 April, replaces Chris Tupker,
review their financing arrangements following
its London dealing room, has announced that it
who has been chairman since July 2006 and
the decision by Her Majesty’s Revenue &
is set to develop its physical shipping operations
who announced his intention to step down in
Customs to withdraw, from December 2010, a
with the appointment of former shipbroker
September 2009.
concession on the application of transfer pricing
Alistair McLuskie, previously a director with
rules to loans made to UK companies under the
Simpson, Spence & Young.
Tupker said: “Jacques’ wealth of experience in the financial sector will be a great asset to
scheme.
Citigroup will be one of a number of major
the company and the markets it serves as LCH.
The UK transfer pricing rules apply to
banks which has expanded its operations into
Clearnet continues to work with its users to
transactions between a UK company and any
the physical shipping markets in recent years.
develop its leading position in clearing markets
other person under common control. They
Morgan Stanley owns a significant stake in
internationally.”
apply to transactions between UK companies,
Heidmar Inc., a Connecticut, London and
He continued: “My four years at LCH.
including transactions with UK tonnage tax
Singapore based tanker operator. J. Aron & Co.,
Clearnet have been both exciting and challeng-
companies. They also apply to transactions
Goldman Sachs’ commodities trading division,
ing. Last year’s capital restructuring was the final
across the tonnage tax ring-fence. When
began chartering vessels last year after it bought
step in a three-year programme to align owner-
tonnage tax was first introduced in 2000, it
Constellation Energy Group, whilst Barclays
ship and usership more closely, and the group is
was realised that the effect of applying the
Capital has a shipping division to support its
now positioned well for the future.”
transfer pricing rules to transactions involving UK
physical oil trading operations.
Aigrain was ceo of Swiss Re from 2006 to
tonnage tax companies could lead to a trap for
2009, a company which he joined in 2001 as
the unwary. For example, where a UK resident
head of financial services, New York. Prior to this
company had lent money to a UK tonnage tax
UK Chamber of Shipping
he spent 19 years with JP Morgan Chase, work-
company under common control, the application
Jan Kopernicki has been appointed president
ing in a number of senior roles in its New York,
of the transfer pricing rules meant that there was
of the UK Chamber of Shipping. Kopernicki
London and Paris offices.
taxable notional interest income for the lender.
is a member of the Shell Trading executive
The borrower would have notional taxable
committee and a director of Shell International
interest payable but, because of its tonnage
Trading and Shipping Company.
New chief executive for Maritime and Coastguard Agency
tax status, no tax relief was available, and a tax
Michael Parker, chairman of the UK holding
liability was therefore likely to arise. This applied
company for CMA CGM and its UK subsidiary
even where the lender was another UK tonnage
MacAndrews & Co Limited, was appointed vice-
The UK Department for Transport has announced
tax company, because the lending of money is
president.
the appointment of Sir Alan Massey as the new
not considered to be a tonnage tax activity.
In a keynote speech to mark the start of his
chief executive of the Maritime and Coastguard
Moore Stephens tax partner Sue Bill explains:
term of office, Kopernicki said that his main goal
Agency. He succeeds Peter Cardy who left his
“Following representations by industry at the time,
would be to increase government and industry
post as chief executive of the Agency in April.
HMRC agreed that, in most cases, the transfer
understanding of shipping’s importance to the
Massey’s appointment follows an open com-
pricing rules would not be applied in the case
UK economy.
petition. He joins the Agency following a long
of loans to UK tonnage tax companies. Now,
“Today, this nation is still pre-eminent in
naval career, spending the last two years as the
following recent developments, it recognises
maritime services – including shipping finance,
Second Sea Lord and Commander-in-Chief of
that it doesn’t have the authority to agree to any
insurance, brokerage, law and shipping itself,”
the Naval Home Command, bringing with him
informal concessionary treatment for taxpayers.
he pointed out. “There is competition from other
extensive leadership experience and knowl-
It is therefore withdrawing or legislating against
centres, but London remains the final point of
edge of the maritime sector. Commenting on
all informal concessions, and has announced
reference in most maritime matters.
his appointment, Sir Alan said: “I am joining an
that the concessionary treatment previously
“I see the Chamber of Shipping playing a vital
organisation with a proud tradition and a hard-
granted will be withdrawn with effect from 9
role in helping to maintain that pre-eminence, by
won reputation for excellence. I look forward
December 2010. The result is a different trap
engaging on today’s issues. Especially, we must
very much to working with Agency staff, the vol-
for the unwary, unless HMRC reconsiders the
focus on ensuring that the tax regime and the
unteers in the Coastguard Rescue Service and
position, which seems highly unlikely.
employment regime support the needs of the
the many organisations with a maritime interest.”
“It is therefore important that all UK tonnage
industry and its workers.”
tax companies or groups review their financing
He also said that the Chambers’ ongoing
arrangements and identify any loans from UK
commitment to positive action on carbon
Marinvest/Hafnia
companies to UK tonnage tax companies where
– specifically a trading system that puts a
Swedish
group
the companies are under common control,
value on carbon – would be a top priority
Marinvest has established a new chartering
even where the lender is another UK tonnage
for 2010. Addressing the subject of ballast
company, Hafnia Management. Marinvest hopes
tax company. The group should eliminate such
water management and the practical issues
the company will become a major player in the
loans, and ensure that no further loans arise.
surrounding sulphur emissions, together with
30,000 dwt and refined product tanker and
Specific advice should be obtained, and any
the resulting economic realities for the short-sea
chemical tanker markets.
restructuring will need to be carried out by 9
and passenger sectors, would also be key areas
December 2010.”
of work.
shipping
and
investment
Hafnia Management, which is based in Copenhagen, is now seeking new partners to help it develop its presence in the sector.
theBaltic June 2010 www.thebaltic.com
21
Baltic comment Michael Grey
The answer is blowing in the wind B
eauty, as they say, is in the eye of
ships or fishing boats, and these obstructions
the beholder and to some, a ser-
spudded into the sea bed in such colossal
ried array of wind turbines stretching
numbers. Sooner or later a big ship, disabled
across an otherwise empty sea, is
for some reason, will be blown into a wind farm,
poetry in motion, or would be, if they were all
with goodness knows what consequences.
revolving at once. If you are an enthusiast for
Indeed, it has nearly happened already.
‘sustainable’ energy (and who dares not to be
According to the latest Safety Digest from
in this judgemental age?) or indeed involved in
the UK Marine Accident Investigation Branch,
this growing industry of planting them on the sea
a “large” containership, preparing to enter port,
bed, joy, it is, to be alive. In 10 years or so, there
became disabled in the vicinity of one of these
will be scarcely a sandbank around the coasts
installations, suffered a subsequent blackout
of the British Isles that is not tenanted by the
and as a result was unable to deploy its anchors,
towering turbine stalks embedded into the mud,
which had yet to be cleared and were in gear
some 8,000 of them churning out watts from the
on the windlass. It was the sort of series of
Dogger Bank to the English and Welsh Grounds.
disasters which will age a shipmaster a dozen
You might think that the sea is wide and
years, made infinitely more horrific by the wind
free, but a published chart of the German Bight,
Michael Grey
and tide which was carrying the ship towards the wind farm.
showing all the positions of wind farm arrays seems to leave very little room for shipping on
not whacking incoming flights of Brent geese out
It was less than a couple of cables from the
its lawful passage. And if you were one of the
of their migratory traffic lanes in flurries of blood
nearest obstruction when two tugs, providentially
fishermen of the Frisian Islands, beam-trawling
and feathers. But we won’t go into any of these
attending the turbine installation barge, managed
for the peerless plaice and succulent sole for
contentious areas.
to tow the ship clear. It is perhaps worth
My main concern comes from experience
considering that if the wind farm had been
as a professional mariner, and the ancient law
completed, and no tugs thus in attendance, the
We had the rush for oil and the dash for gas,
which tells us that if there is an obstruction,
destruction would surely have been spectacular.
but it is mostly all gone, it is filthy hydrocarbons
natural or man-made, placed in a vast area
And in the same issue of this useful publication
and severely disapproved of by the policy
of sea, sooner or later somebody will run into
came the tale of a fisherman, who, preoccupied
makers, who have ‘pledged’ to ensure that
it, with calamitous results. And there is no
with his catch on the afterdeck of his boat, came
some 20% of this kingdom’s power is produced
argument that many of these wind turbine arrays
within an ace of sliding under a jacked up barge
by sustainable means. And that of course means
are being placed disturbingly close to well-used
working on wind turbine foundations. He merely
wind farms, as far as the eye can see, and if
shipping routes.
thumped into it, reminding him forcibly of his
which the area is celebrated, you would look at this chart and silently sob into your schnapps.
traditional users of the sea don’t like it, they can
Shipping just better become more organised
responsibilities.
and professional, you might say. Fair enough,
In the first of these incidents, there was
It is not the place of this columnist to consider
but your wind farming activities, we might retort,
no negligence or notable human failure, just
the relative efficiencies of this form of electrical
are costing us money. Already, there are well-
a number of regrettable mechanical failures,
generation. We all know these things are useless
established routes where ships will have to divert
which, piled one on another, made that ship
when the wind doesn’t blow, and half the time
to give appropriate clearance to wind turbines.
absolutely helpless in a most vulnerable
the turbines are being re-engined because their
What are a few miles additional passage time
position. The proliferation of these offshore
bearings have seized up, because (I am told)
because of a new ‘dog leg’ around this electrical
obstructions, along with their undersea cables,
the lubricating oil cannot properly circulate in
obstruction? Not a lot, perhaps, if you are bound
makes such accidents almost inevitable. It is
a machine which revolves so slowly. We know
for distant oceans, but if my ships are are rattling
a serious consideration, if you are into marine
we must have numbers of power stations on
back and forth to the near continent every day, it
insurance, shipoperation and management and
stand-by, in case there is a prolonged high over
soon adds up to higher fuel costs.
the assessment of maritime risks. Just as long
take a running jump.
Heligoland and weeks of calm. We have read
But my main concern is that of safety, and
that the blades occasionally fly off, when they are
the inevitability of brutal conflict between large
theBaltic June 2010 www.thebaltic.com
as we understand what we are letting ourselves in for!
23
Corporate viewpoint Canopus Group
CANOPUS Group of Companies
C
aptain Pankaj K Mishra is Founder,
aspects of the shipping business. But bulk car-
Chairman & Chief Executive of the
riers remained my specific interest and whilst at
Canopus group of companies and
Adsteam I remained very hands-on in dry bulk
an expert on the Indian ports sector
ship operations and management.
and bulk shipping markets. In this interview, he try, explains his current business interests and
When did you decide to go into business on your own?
gives a valuable insight into the Indian maritime
It was in 2002 that I decided to create my own
market.
company, which I did with my younger brother
tells us a little about his experience in the indus-
who is a marine engineer and who had served
How did you get into the industry? Tell us a little of your experience in shipping
at sea for a number of years as chief engineer.
After initial training on TS Rajendra (formally TS
and port agency services to ships calling at
Dufferine) I began my shipping career as a cadet
I formed Canopus Shipping & Trading Pvt Ltd based in Mumbai to focus on delivering ship Captain Pankaj K Mishra
ports in India. Over the years we have grown the company and we now operate 10 branch
with the Shipping Corporation of India (SCI). I joined SCI as a cadet in 1981 and trained on
our industry and it was this experience that gave
offices throughout India. In addition, we have
general cargo, container, dry bulk, tankers and
me the insight and drive to form the companies
developed a network of 25 third-party agents
passenger ships. I qualified as a second mate
I run today.
that operate under our Standard Operating Procedures. This means that Canopus is able
and later sailed on various foreign flag vessels managed by companies such as Anglo Eastern,
When did you come ashore?
Univan, Nomadic Shipping, Varun Shipping,
On qualifying as a master, I immediately enrolled
commercial port in India. It also allows us to
Hede Navigation and Hamilton Maritime, mostly
for an extra master certificate of competen-
provide a global perspective whilst retaining
on handymax and panamax bulk carriers. During
cy. After I passed that examination, I joined
in-depth local knowledge and to deliver efficient
this period, I qualified as a ships’ master and
LBS College of Advanced Maritime Studies
services at a reasonable cost.
was fortunate to visit many ports across the
in Mumbai and began teaching mariners. A
world and to experience many different cultures.
few years later, in the mid 1990s, I went back
Seafaring was different then; nowadays ships
to sea and then took a commercial position
How did the business develop?
spend less time in port and seafarers do not
with a container shipping company engaged
A logical extension to our agency business was
really get the opportunity to mingle with the
in feeder container services. I was later given
to provide shipbroking services. Canopus was
local people and experience what life is like in
the responsibility to set up a coastal container
already offering a limited broking service but
foreign parts.
feeder service on the Indian coast. The job was
I created Viking Shipmanagers in 2005 as a
I then spent a couple of years ashore before
challenging and I enjoyed it. I was then asked
dedicated dry bulk shipbroking operation. Viking
taking command of a 35,000 dwt dry bulk car-
to head-up the Indian shipping activities for
has offices in Mumbai, Delhi and Calcutta and
rier followed by command of a cargo ship that
Adsteam Marine that was, at that time, the larg-
employs six brokers. The company specialises
was tramping around the Indian subcontinent
est towing company in the world. This proved to
in dry bulk movements into and out of India. Our
and Far East. This was a wonderful experience
be a valuable experience as our activities ranged
main trades are coal, coke and iron ore, moving
for me, as my job was not only to command the
from shipmanagement, crewing, tramp agency,
in vessels ranging from handysize to capesize.
vessel but also to find employment for it. We
liner services, operation of a container freight
As specialists in this market, our brokers really
would spend two to three weeks in each port
station, dry bulk chartering, and P&I services.
understand the sector and are able to provide
discharging cargo and also fixing our next trip in
I acted as P&I correspondent for the Swedish
high quality services to our extensive customer
close coordination with the owners. I had lots of
Club and Skuld in India for about five years. This
base. India has a growing requirement to move
flexibility and it was a great learning experience.
role equipped me with commercial manage-
bulk commodities into and out of the country,
It also exposed me to the commercial side of
ment skills for all types of vessels and various
but our domestic fleet is not able to handle this
24
theBaltic June 2010 www.thebaltic.com
to deliver high-quality agency services at every
Corporate viewpoint Canopus Group global fleet for tonnage and we have established
And what does the future hold for you?
along with hinterland connectivity, rapid imple-
good relationships with non-Indian shipowners
We expect our overall business to grow by
mentation of the dedicated rail freight cor-
internationally.
100% by end of 2014 and we have a business
ridors, capacity expansion and establishment
plan in place to achieve that. This will be organic
of modern cargo handling facilities are the key
Why did you move to Singapore?
growth using internal resources.
issues for the sector. Realising the importance
We are also considering the possibility of
of multi-modal transport as a pre-requisite for
We established an office in Singapore to allow
international JVs and tie-ups to achieve growth
the smooth functioning of logistics, systems are
us to get closer to a number of shipowners who
on a different scale. We’ve recently introduced
being put in place for efficient transportation
are based here. This move has paid off well and
a superintendent or port captaincy role to the
from origin to destination.
there is a lot more work to do. As many quality
agency business, which allows well qualified
If we look at a broader perspective, various
shipowners have offices in Singapore it is a great
personnel to micro-manage all port calls to
projects under implementation are at different
location to have a liaison office, not only to pro-
reduce port costs for the shipowner and rapidly
stages of commissioning and for the actual
mote our range of services to potential owners
address any issues that might arise.
result to be realised, the projects need to reach
demand. Increasingly, we have to look to the
Development of extensive road networks
their final phase.
and charterers but also to listen closely to our
I see the freight management business
existing customers. Their feedback allows us to
expanding more organically. We have developed
The developments are undertaken alongside
take corrective measures and align our business
longstanding partnerships with our customers
the operational obligations imposed on them on
execution with theirs.
and our business will grow alongside theirs. As
a day-to-day basis. One needs to appreciate
they expand their operations so their need for
the fact that we are talking of ports that handle
ocean transport will increase and that will lead
90% of international trade by volume and 70%
to a growth in our business.
by value. For a country to reform from a labour
And what is your main business interest today?
intensive set-up to a capital-intensive model
We have created separate business entities to
And to our customers, we say, “Our com-
cater for different segments of our customers.
mitment to quality is your doorway to success.”
represents a huge transformation.
agement for cargo and ship interests who see
You are an acknowledged expert in the Indian ports and shipping sector, how do you see this sector developing?
to achieve that but the system does not per-
benefits in outsourcing their shipping require-
With all Indian major ports operating at 100%
development.
ments and consultancy-level involvement in
capacity and a CAGR of 7.7%, cargo traf-
Recognising the enormous outlay being
those areas. These services are provided under
fic is stated to touch 900 million tonnes by
invested in the sector and mindful of demand
different trade names and each business unit
2012-2013.
economics, I am confident that the Indian ports
Today’s Indian shipping industry is trying
Today our business comprises raw materials sourcing, shipbroking, port agency and other port related services (such as port captaincy and cargo superintendence), commercial man-
mit a total elimination of labour dependence. However, the addition of better technology is allowable and this is a major part of the overall
Even during the global recession, a 2.13%
and shipping sector is progressing towards a
The common denominator to all these com-
growth in cargo traffic was registered. Although
position where it can cater for a mature market.
panies is the raw material requirement for the
this was far less when compared to previous
steel and power industry.
years, any growth reflects the precedence of
has its own business head.
Many companies have little experience of
demand over supply. We are seeing the signs of
ocean transport or have little appetite to become
a progressive market here and despite the mac-
involved in this sector, and so retain us to take
ro-economic slowdown, the domestic economy
care of that activity for them. We invest a lot
is showing optimistic trends – but there are cer-
of time in getting to really understand our cli-
tain issues which need to be addressed.
ents’ current and future business so we can
The Indian shipping sector is presently in a
provide the best possible transport solution for
state of transformation and selective-intensive
them. Our involvement often begins with ship-
methods have been devised for a segmented
ping schedules that can determine a transport
focus. The Indian ports are evolving from state
requirement up to one or two years in the
monopolies to corporate entities.
future. Armed with this information and our own
The Port of Ennore pioneered the concept,
knowledge of the market, we can offer strategic
and the new generation ports are taking the
advice on the optimum periods to ship their car-
idea further. The Maritime Boards are shelter-
goes. We charter vessels on our own account
ing port development at state levels. With the
Pankaj K Mishra
– becoming the despondent owner – and use
National Maritime Policy at the centre and
CEO
these ships to service our clients’ needs. We
Maritime Boards at state level, inter-port com-
Canopus IVS Pte Ltd
do not operate spot market cargo. We also get
petition is being fostered, keeping the efficiency
8 Eu Sen Street, #17-85
involved and are able to advise on whether a
parameter focal.
The Central, Office Tower 2
client should consider purchasing a vessel and when would be the optimum time to do so.
The public-private partnership models are
For further information, please contact:
Singapore 059818
assisting the growth of minor ports in the coun-
Tel: +65 6222 7678
Our service is highly customer-focused and
try. The latest Port of Cuddalore is an example
Fax: +65 6222 6158
we enjoy the support of a number of well-known
of PPP in the minor port segment; 65% of the
Cell: +65 9088 3555
industry names.
future financing is said to be envisaged through
E-mail: b.mishra@canopus-group.com
the PPP route.
Website: www.canopus.co.in
theBaltic June 2010 www.thebaltic.com
25
State of the market Tankers
Weathering the storm The tanker market is displaying an unexpected resilience
T
he tanker market is an uncertain place
the beginning of the year. However, it remains
is making less of a mark on the market than
at the moment. Despite predictions of
considerably higher than it was in 2009,
was initially feared. According to Petropoulos:
high deliveries to come over the next
currently standing at 33% overall. “Outside
“There will be a lot of deliveries over the next
year, ordering has taken off again, as
the smaller sectors (where 90% non-delivery
two years, but the storage factor has played a
in many other sectors. “Prospects at the begin-
of product tankers of 10,000-30,000 and dwt
big role in absorbing tonnage, and this is likely
ning of the year looked fairly dire, but things
was recorded), products tankers 30,000-60,000
to continue. It is not always for financial reasons;
looked better as they went on,” says Dennis
dwt had the highest non-delivery rate of 38%,
sometimes it is cheaper for countries to store
Petropoulos, head of tankers at Braemar. Prices
and panamaxes 37%,” Tilley says. She expects
surplus oil than to stop production.” At 80 cents
appear to be on the rebound, and floating stor-
tanker non-delivery to remain a key feature of
to store one barrel for one month storage at
age is again removing tonnage from the market.
2010, with overall fleet growth well below initial
sea is a very economic proposition, rather than
However, many market analysts are unsure of
projections.
building expensive storage tanks. With the oil
Braemar, however, say that slippage across
market again in contango, storage is likely to
Erik Andersen of Platou Economic Research
all sectors is nowhere near as high as had been
increase further. Platou’s analysts estimate that
points out in the company’s monthly update
expected. “We are not seeing anywhere near
some 20 VLCCs are currently acting as floating
that charter performance has been looking up
the cancellation levels that were predicted last
storage, while another shipbroking source says
over the first quarter and continues to do so,
year,” says chief executive Alan Marsh. “The
that almost all of the Iranian VLCC fleet is
even in what is traditionally a quiet quarter for
ownership may well have changed, but the ship
currently used to store crude oil, rather than to
the market. “The simple comparison between
is still on the water.” Despite this, the tonnage
transport it.
the direction that the market will take overall.
the change in the fleet and the change in trade volumes is not telling the whole story. There are obviously a number of important additional factors,” he says. Amongst these factors he lists: • Build-up of crude stocks at sea • Accelerated phase-out of SH tankers in active trading • Productivity of DH tankers has dropped due to increased ballast legs. “The robust fleet growth after 2005 has obviously not been the dominating factor in freight rate formation,” he concludes, warning market players to “be prepared for the unexpected”.
Deliveries to increase? Clarkson Shipping’s Julia Tilley notes that tanker deliveries so far this year have shown considerable
slippage,
being
well
below
predicted levels – and below predicted average levels for 2010 as a whole. The percentage of non-deliveries has dropped sharply since
The worst appears to be over
26
theBaltic June 2010 www.thebaltic.com
Product of the Year
Protection of the Marine and Atmospheric Environments
Product Differentiation Innovation Award
Golden Coat Award
The honours for HEMPASIL X3 continue to mount. The world’s most advanced fouling release system, HEMPASIL X3 has been recognised as a major fuel-saving and environmental breakthrough for the maritime industry. To date, it is the proud winner of four major industry awards.
State of the market Tankers Changing trading patterns Thina Saltvedt, a senior analyst at Nordea Bank, says that China is on the doorstep of increasing its oil consumption dramatically “very soon”, if the country follows the development path of other Asian countries. Analysts at Braemar point out that it is widely expected that China will equal the per capita oil consumption of Europe by 2015 – it is currently at about a third of this level. This will make it the world’s largest oil in developed economies will reduce slightly due to reduced industrial output – most of which will move East – and tighter government policy. Some changes in trade flows are already becoming apparent. Saltvedt says that since Christmas, China has for the first time been the biggest buyer of oil from Saudi Arabia. This is backed up by figures quoted by Andersen, who says that China’s crude imports from the middle
Photo credit: Stena Bulk
consumer. At the same time, oil consumption
Trade flows are shifting
east were up by 40% in the first two months of the year. By contrast, she says, volumes from
While it is unlikely to become a regular
Varandey terminal in the Kara Sea in northern
West Africa were down by 15% – although the
trading route for many years, the Northern
Russia to Japan, according to reports in Lloyd’s
position was reversed in March, when volumes
Passage across the arctic continues to interest
List. No exact date has been set for the voyage
from the Middle East fell 5%, and those from
owners and charterers looking to cut down
but it is likely to take place in late summer.
West Africa increased by 50%.
on route miles. In February this year, Russian
In the medium term, the Deepwater Horizon
In the long term, Saltvedt says, the opening
company Sovcomflot announced that one of
oil spill could trigger changes in tanker routing
of the enlarged Suez Canal in 2010 will cause
its 70,000 dwt arctic shuttle tankers will carry
and fleet usage in the US trades, says Dennis
further changes in world oil flows, as it will allow
out a trial voyage later this year carrying crude
Petropoulos.
Brazil to export more oil to China.
oil through the northern sea route from the
theBaltic June 2010 www.thebaltic.com
29
State of the market Tankers Pooling shake-up Some of the big tanker pools have seen major changes over the last quarter. Nordic American Tanker Shipping, for example, announced that it has decided to place all its vessels in the Gemini Suezmax cooperation, which also numbers the NAT vessels have been in two cooperative arrangements. Herbjorn Hansson, the company’s chairman and ceo, stated: “Our vessels will trade in the spot market as in the past […] Our objective is to place all our ships with Gemini, including the two 2010 built Suezmaxes scheduled to be delivered later this year.”
Photo credit: Stena Bulk
Frontline and Teekay among its members. So far,
Stena is renewing much of its pool tonnage
Stena updates fleet
Ultimately, Stena aims to extend the pool to
Angeliki
Frangou,
chairman
and
chief
Stena Bulk has been shaking up its chartering
25 new and ultramodern suezmax tankers with
executive officer of Navios Acquisition, said:
arrangements to replace older tonnage with
an average age of only 3 years.
“We are pleased to announce this transaction;
modern vessels. The Nordic Voyager (built
The venture appears to be poised for further
Navios Acquisition will be a platform for building
1997), the Nordic Jupiter (built 1998) and the
growth with several quality owners with new
a world-leading operator of modern, high-quality
Nordic Freedom will be returned to their owner,
suezmax tankers applying to become members,
product and chemical tankers. We are excited
Nordic American Tankers, at the end of their
Stena said.
about building another company in the shipping
charter this year. According to reports in Lloyd’s
sector and believe that the attractive market
List, this means that Stena will be replacing 11
dynamics make this an ideal opportunity for
older tankers with more modern tonnage this
Navios enters the market
leveraging our global network of relationships
year.
Navios disclosed in early April that it is entering
and world-class skills developed in building
In addition, Stena now has six suexmax
the tanker market. This is a large-scale entrance,
Navios Holdings into one of the pre-eminent dry
tankers on order at Samsung shipyard and five
with the company announcing that it had
bulk shipping companies.”
at DSME Shipbuilding in Korea. The vessels are
acquired 13 tankers for an aggregate price
In her statement, Frangou emphasised
due for delivery from 2011-2013, and will all join
of $457.7 million. The fleet consists of 11
Navios’ record in company building, and the
the Stena Sonangol pool. “Stena Bulk has been
product tankers and two chemical tankers, with
256% growth in its dry bulk fleet by dwt since
patient in viewing the markets these past couple
an option to purchase two additional product
2005. “We aim to replicate these achievements
of years, which has proven to be correct,” said
tankers.
in the tanker sector through Navios Acquisition,” she said.
Photo credit: Stena Bulk
Ulf G. Ryder, president & ceo of Stena Bulk.
Ice routes remain a possibility
theBaltic June 2010 www.thebaltic.com
31
State of the market S&P
Time to buy Ordering is on the up again – will prices follow?
A
lmost since the markets began their
Resale prices also rose sharply, with new,
scrap prices are still historically very strong,
precipitous fall, it was predicted that
five-year-old and 10 year-old VLCCs all gaining
although down from the $500 per tonne levels
experienced shipowners would be
between $12 and $12.5 million between the end
seen earlier in the year. While most SH VLCCs
going on a buying spree as soon
of March and end of April, according to Platou.
have now been removed from the fleet, there are
as it looked as if prices were about to bottom
While second-hand prices are not yet at a
still some aframaxes working. However, most
out. As markets have recovered, and to some
premium to newbuilding prices, as they were at
removals this year are likely to come from the dry
degree stablilised, the S&P and newbuilding
the height of the last boom, there are indications
bulk side, especially the ageing handymax fleet,
markets have picked up again rapidly. The China
that they could be heading that way.
while there are a ‘fair amount’ of containerships
Association of the National Shipbuilding Industry,
that are likely to be withdrawn from services,
for example, reported a 770% increase in orders
particularly if the sector continues to struggle,
over the same period last year.
Dry market remains calm
said Alan Marsh, ceo at Braemar.
On the dry side, orders for the first four months were 18.8 million dwt, again more than half of the
VLCC prices surge
33.6 million dwt ordered for the whole of 2009.
Flight to assets?
By the end of the first quarter, orders had been
The orders were concentrated in the capesize
While it is too early to draw firm conclusions,
placed for 6.3 million dwt of tanker tonnage,
and handysize sectors. Capesize resale prices,
one market source has seen a ‘distinct rise’ in
already over half of the total orders placed in
however, remained steady or fell slightly, while
the number of Greek owners enquiring about
2009, at 11.1 million dwt, according to Platou.
smaller vessels saw a slight rise in value.
tonnage since the Greek rescue deal was signed
This rise in ordering has been reflected in a
in early May. It seems possible that owners may
sharp rise in prices, particularly for VLCCs,
be keen to put more of their money in assets,
where prices are up $10 million from year end
Scrapping
he said, particularly if the rescue deal leads to
2009, again according to figures from Platou.
Braemar Seascope had what it described as
high inflation.
Prices are still considerably higher in Korea
an ‘exceptional’ year on the S&P front last
than in China, reflecting a greater confidence in
year, much of it coming from demolition work.
Korea’s ability.
At present, 2010 looks likely to follow suit, as
32
theBaltic June 2010 www.thebaltic.com
State of the market BIMCO update
Revision time Grant Hunter explains what’s behind the revision of one of BIMCO’s most successful and widely used niche documents – the SHIPMAN 98 standard shipmanagement agreement
I
n the 10 years since the ’98 edition was
Key objectives
Layout and format
published there have been many develop-
The key objectives in revising SHIPMAN were:
To aid and improve clarity and layout for ease
ments in the shipmanagement industry – most
• Updating the standard agreement to reflect
of reading, the agreement has been divided into
notably the coming into force of the ISM and
current
commercial
shipmanagement
five sections, with some clauses restructured
ISPS Codes. While SHIPMAN 98 touches upon
practice and any relevant changes in the law.
responsibilities under ISM, much more has
• Ensuring that the basic principles and
been learned about the interplay between the
structure of the existing agreement are
• Section 2 – Services
owners and the managers in respect of the
maintained.
• Section 3 – Obligations
code in the intervening years. In 2007, BIMCO’s
• Improving the clarity and layout of the
Documentary Committee felt that SHIPMAN
agreement.
could benefit from an overall review to reflect
• Harmonising,
and reworded. The sections are as follows: • Section 1 – Basis of the Agreement
• Section 4 – Insurance, Budgets, Income, Expenses and Fees
wherever
possible,
the
changes in shipmanagement practice and the
provisions of SHIPMAN and the two
implementation of new legislation.
CREWMAN agreements.
• Section 5 – Legal, General and Duration of Agreement. The two-column layout has been replaced
Given the importance of SHIPMAN to the
with a single column using a larger and easier
shipmanagement sector, BIMCO has undertaken
to read font size. The new design will also make
a sensitive revision of the agreement to ensure
Overall structure
the agreement easier to work with electronically,
that the fundamental principles of the form are
The original structure and nature of the
using BIMCO’s idea document editing system.
maintained. The fundamental principles that
agreement has generally been retained, whilst
SHIPMAN established when it was originally
provisions have been updated on the basis of
issued in 1988 and which have become in
developments since 1998. Parallel revisions of
Crew management services
many respects the “law” of shipmanagement
all three management agreements have been
The crew management services section of
are carefully preserved in the new edition but are
done in order to ensure consistency. The revised
SHIPMAN 2009 has perhaps undergone the
spelled out with greater clarity. The new edition
SHIPMAN can be used as a one-stop-shop
most noticeable changes to the agreement. The
of SHIPMAN 98 is code named SHIPMAN 2009.
in respect of most shipmanagement services,
main changes have been made to strengthen
When SHIPMAN was last revised in 1998,
including technical and crew management. Both
the crew management provisions consistent
the CREWMAN agreements were updated the
the ISM and ISPS Codes have been defined and,
with the CREWMAN A and B agreements.
year following the publication of SHIPMAN. This
in recognition of the importance of these codes
BIMCO recognises that some parties prefer
resulted in a few inconsistencies in the text of
in the industry, the definition of and reference
to use SHIPMAN even when the agreement
parallel provisions. To avoid this problem and
to the “company” is one of the cornerstones
is only for crew management purposes,
to ensure consistency across the whole suite
of the revised SHIPMAN. The company’s name
even though BIMCO recommends the use
of standard management agreements, BIMCO
is required to be stated in a box upon entering
of the specialist standard crew management
has revised SHIPMAN and CREWMAN A and B
into the agreement, unless the code does not
agreement, CREWMAN A (on an agency basis).
simultaneously, which has brought the benefit of
apply, in which case “not applicable” should
To assist in this and also to make SHIPMAN’s
a greater degree of harmonisation than before.
be entered. Any changes thereafter should be
crewing provisions more comprehensive when
notified in a timely manner.
it is used for crew management purposes together with other management services,
theBaltic June 2010 www.thebaltic.com
33
State of the market BIMCO update • Chris Hilton, Eversheds LLP, Newcastle (Subcommittee Chairman) • Tom Bang-Olsen, T. Klaveness Shipping AS, Oslo (Owner member) • Costas Maounis, Phoenix Energy Navigation, Athens (Owner member) • Matthias Müller, Bernard Schulte GmbH, Hamburg (Owner) • Andreas Andreaou, Columbia Shipmanagment, Limassol (Manager) • Craig Brown, V. Ships, London (Manager) • Stuart Munro, ITIC, London (Club)
External consultation BIMCO benefited throughout the revision of SHIPMAN and CREWMAN from broad consultation with a number of shipmanagement experts, not least the Commercial Committee of the Cyprus Shipping Chamber, who provided constructive comments and suggestions from their shipmanager members.
Sample copies and explanatory notes As with all new BIMCO forms, SHIPMAN 2009 is available as an editable Word document using BIMCO’s widely used internet charterparty editing system, idea. This enables users to fill in the expandable boxes in Part I of the agreements with the variable information needed to complete the form. Additional clauses, if necessary, can also be added using idea – either from the builtin library of BIMCO standard clauses or from the users’ own uploaded library of clauses. Finalised documents can be e-mailed as a PDF file along with other attachments to chosen recipients. All documents created from templates on idea we have harmonised the crewing provisions
which need not be English. However, this is
can be ‘recycled’ for repeat or similar business
by streamlining the crewing provisions of
qualified by a requirement for crew to have a
to save time retyping information. For more
SHIPMAN 2009 with those of CREWMAN A
sufficient command of the English language to
information about idea, visit the BIMCO website
(Cost Plus Fee) 2009.
enable them to perform their duties safely, e.g.,
at www.bimco.org.
One of the areas in which SHIPMAN 98 was felt to no longer reflect current practice
those who are involved in ship to ship and/or ship to shore communications.
BIMCO has prepared a comprehensive clause by clause comparison between SHIPMAN 98
concerns the validity of medical certificates.
and SHIPMAN 2009. These explanatory notes
The previous three month validity requirement
show all of the changes made to SHIPMAN 98
has been replaced with a requirement that crew
Subcommittee
and explain why the changes have been made.
medical certificates should be valid at the time
The revision work on all three standard
The notes are available to download from the
the crew member joins the vessel and remain
management documents was done by a sub-
BIMCO website along with free sample copies of
valid for the period of service. In addition, the
committee of experts drawn from the industry,
the agreement. Similar notes and sample copies
revised agreement introduces an option for the
who spent two years working on the project.
are available for CREWMAN A (Cost Plus Fee)
parties to agree a higher medical standard than
The subcommittee consisted of representatives
2009 and CREWMAN B (Lump Sum) 2009.
that required by the flag state.
with previous experience from earlier revision
On the issue of working language on board
work on SHIPMAN and CREWMAN, as well
the vessel, SHIPMAN has been amended to
as representatives from shipowners and well-
emphasise that a command of the English
known shipmanagement companies. Club
Grant Hunter
language for every crew member is not a strict
expertise was provided by ITIC. The members
Chief Documentary
requirement. In the revised SHIPMAN there is a
of the subcommittee were:
Affairs Officer
common working language on board the vessel,
34
BIMCO
theBaltic June 2010 www.thebaltic.com
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Offshore
Tilting at windmills Offshore installation is providing opportunities for heavylift operators
W
ith increasing demand for renew-
“Our vessels travel at 17 knots, have a much
able energy and with offshore
higher transit speed in and out of port, they can
wind identified as one way of
carry nine Transition Pieces (TPs) which is more
helping governments achieve
than regular jack-up barges, and as the wind
their targets for reducing emissions, the heavylift
farms go further out to sea in deeper waters,
players are showing more interest in this huge
speed becomes even more important,” he says. When the Jumbo Javelin installed the first
potential market. In the UK alone, offshore wind represents a
TP, off the UK’s south-east coast last year, this
considerable opportunity as the Crown Estate
was believed to be the first time that a TP had
announces the new concession holders of some
been transported and installed with only one
of the Round 3 wind farm sites. If all the proposed
DP2 vessel.
wind farms come to fruition, a staggering 33GW
Jumbo Javelin can carry a lot of material,
will be installed by 2020 and at the same time,
stay in position in the field and it has a very high
there is an acknowledged shortage of the very
loading capacity, he adds. “We can get a lot of
specialist installation vessels. And wind farms
material to the site very fast, which is important
are not only multiplying, they are also being
given the very tight weather windows involved.
placed further out to sea in more challenging
We can also relocate from one position to the
waters.
next relatively quickly, as the vessel does not need to reposition anchors or jack-up and down again.” Mr Boutkan adds that the Jumbo vessel
Call for investment
can operate in sea states comparable to jack-up
Recently, the shipyards and wind power
barges.
industries made a joint call for investments
The next big opportunity
The vessel can carry out critical lifts in a significant wave height of at least 1.5 metres.
in the ships needed to ensure offshore wind This will require 10 to 12 new heavylift vessels
Jumbo Javelin loads the TPs, which can be
The European Wind Energy Association
and other vessels for transporting foundations,
up to 300 tonnes each, in Flushing in the
(EWEA) and the Community of European
towers, nacelles and blading systems, he added.
Netherlands, and transports them to the offshore
Shipyards’ Association (CESA) urged the
Some shipowners and operators are ahead
location. The vessel then positions itself on DP
European Commission and the European
of the game and have already got offshore wind
next to the monopile and lifts the TP from its
Investment Bank (EIB) to support the building
farm experience under their belt, such as Jumbo
lower hold on to the monopile. After levelling the
of new ships.
Offshore and MPI Offshore. Brian Boutkan,
TP to its final position, the grouting procedure is
are
Jumbo Shipping project manager, says that
carried out.
needed for the predicted growth of offshore
as the offshore wind sector chooses locations
To give crew safe access from the Jumbo
wind, they stressed. “From 2020 we will see
further out to sea, Jumbo’s vessels can offer an
Javelin to the installed TP, the Ampelmann II
40,000 MWs per year built offshore,” said Eddie
even bigger advantage over traditional barges,
system was used. This is a ship-based, self-
O’Connor, founder and chief executive officer of
primarily because of their speed and loading
stabilising platform which actively compensates
Mainstream Renewables and EWEA Secretary.
capacity.
for vessel motions to make offshore access safe
expansion.
Investments
totalling
E2.4
billion
theBaltic June 2010 www.thebaltic.com
37
Offshore The
deck
arrangement
enables
nine
and easy. All the TPs can be stowed vertically
will supply enough power for around 750,000
in the hold of the vessel and transported to the
homes. Phase One of the wind farm is planned
complete sets of Vestas V90, three MW turbines
offshore location.
to be completed in 2012 and this will include 175
to be loaded. MPI Resolution was configured to
turbines with a combined capacity of 630MW.
carry and install 27 individual blades, nine one-
“There was some scepticism in the beginning
piece towers and nine nacelles.
but I think people will realise that our product is
MPI Adventure will be deployed for the
a very competitive way of installation. Speed is
installation of the foundations and turbines for
of the essence in this work and we have speed,”
the first phase of the London Array wind farm,
in the UK, has
Boutkan says.
which will be the world’s largest offshore wind
GustoMSC to provide the basic design
farm and which could be the world’s first 1GW
Package for two or more newbuild wind farm
offshore farm.
installation jack-up vessels.
There are many self-propelled jack-up barges being built and while these may be ideally suited
Meanwhile, Seajacks, of Great Yarmouth entered into a contract with
The jack-ups will
for the topsides, Boutkan believes DP vessels
The vessel is currently being built at
double the Seajacks fleet. The vessels will
offer a very good alternative for the foundations.
Cosco Nantong and will be delivered to start
incorporate a fully redundant DP2 propulsion
Using a DP positioned heavy lift vessel
construction in April next year. MPI Adventure
system, accommodation for 90 persons and
compared to the conventional method of moving
is actually a second-generation vessel based on
an 800 tonne leg encircling crane. Seajacks is
and installing TPs means that one vessel is used
the MPI Resolution but it has increased capacity
anticipating the delivery of the first newbuild in
for transporting a large load and then it can
in terms of transport, jacking and cargo.
the first quarter of 2012.
offer a fast transit to the installation site and the installation itself, he says.
MPI Resolution is already an experienced
Blair Ainslie, managing director of Seajacks,
hand at offshore wind farm work, having
says: “The new vessels will facilitate faster
“We are quite competitive in this market and
completed foundation operations for the Thanet
and more efficient installation of turbines and
we are looking at various projects, including
Offshore Wind Farm last year, after installing 84
foundations offshore and provide us with an
installing
TPs and J-tube assemblies.
excellent platform for expansion into other
foundations,
jackets
and
TPs.”
aspects of this growth industry.”
Currently, the Dutch firm, headquartered in
TPs and J-tubes were loaded at the Port
Rotterdam, has identified at least three possible
of Flushing from barges transporting the
One thing is clear: the push for green energy
wind farm projects.
components by river from the manufacturing
is not going to stop and offshore wind will
facility in Hoboken, Belgium.
play an increasingly significant role. Some
At its home port at the Tees Offshore Base,
pioneering heavylift operators have been brave
MPI
MPI Resolution was later transformed from
enough to make the necessary and substantial
MPI Offshore, another shipowner experienced in
foundation to wind turbine generator (WTG)
investments needed and these companies are
the fledgling offshore wind farm sector, received
duties. In December last year the vessel
now reaping the rewards. But others, spotting
good news recently when it secured a charter
departed for Dunkirk and the first loadout of the
the opportunity, are sure to follow.
for MPI Adventure before the vessel is even
generator components.
built. Sited in the Thames Estuary, the project
38
theBaltic June 2010 www.thebaltic.com
State of the market Dry bulk
Can lightning strike twice? China drove the dry bulk boom; can it be relied on to get the sector out of the slump?
I
China and India drive growth
ron ore continues to be the main driver for
In addition, Braemar said, seaborne oil and
the dry bulk sector, which has been showing
In his presentation of the company’s annual
dry bulk trades have been closely linked to world
gradual but consistent growth over the last
results, Braemar’s cfo James Kidwell pointed to
economic growth in terms of income, which the
quarter. According to Platou, increased iron
the IMF’s projected growth rate of around 8.5%
IMF is predicting to rise gradually over the next
ore shipments from Brazil were the main factor
for countries in developing Asia, with Chinese
few years. This would indicate growth in demand
behind higher freight rates for capesizes during
GDP growth expected to be above 10% for
for dry bulk trades of just under 4% for the next
April. Platou’s figures show a particularly strong
2010 and 2011. This creates a climate in which
few years.
rise in capesize rates during the last week of
there will continue to be a high demand for raw
However, whether this growth will be
the month.
materials in China. Asked what would happen
sufficient to absorb all the tonnage on order
if growth did not attain these levels, Kidwell
remains to be seen. Clarkson’s Martin Stopford
said: “Even if growth is 3%, we have not had
warned that the ordering cycle may take even
DnB urges caution
an economy like this ever. The scale of it is
longer to pass than has been predicted, saying
According to a report released by DnB NOR,
unprecedented.”
that: “Shipowner and shipbuilder investment
Chinese annual iron ore imports could peak at
Chinese growth is behind a rapid increase
cycles can, when combined, be capable of
1.3 billion tonnes – twice as high as last year –
in exports from India. “India exported over
producing upswings and down swings lasting as
by 2020. While this would create demand for an
100 million tonnes of iron ore last year. Long-
long as 35 years.”
additional 584 capesizes, more than absorbing
term, that figure is only going in one direction,”
the outstanding orderbook, the bank also urged
Kidwell said.
caution for lenders looking to return to the market: “It is too early to assume that the danger is over, there are still major risks associated with lending to the shipping-related businesses,” said ceo Rune Bjerke, writing on the Norwegian website E24. “Although we see that parts of the industry, such as dry bulk and tanker market is getting better, there are still many unresolved issues within the container shipping sector,” he said. Some major players in the market suspect the apparent recovery is not as stable as it seems. Keith Denholm, ceo of Pacific Carriers, for example, said in a speech to the Association of Shipbrokers and Agents in New York, that the there was a risk that it had created a ‘false floor’ due to fleet inefficiencies and port congestion driving up demand.
Braemar
market was currently in a ‘fragile state’, and that
Seaborne trade and GDP
theBaltic June 2010 www.thebaltic.com
39
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Towage & salvage
Saving the Shen Neng Both high-profile and more routine cases are keeping salvors busy
A
lthough there are fewer vessels at sea given the current economic dip, there does not seem to be any shortage of salvage jobs.
Danish group Svitzer is working on one of the
most high-profile salvage operations of recent times, following the grounding of a Chinese bulker on the Great Barrier Reef, a UNESCO World Heritage site. On April 3, the 230 metre Shen Neng 1 grounded 70km east off Queensland’s Great Keppel Island, allegedly some 12km off its intended course. A government investigation was immediately launched. The Australian Maritime Safety Authority (AMSA) stated: “The Shen Neng 1 lodged a sailing plan through AMSA’s Rescue Coordination
Centre
prior
to
departing
from Gladstone.” The ship indicated that it would be following a route within the designated shipping area, the safety authority stated. “While the sailing plan provided an indication of the intended passage of the ship, the ship has deviated from its sailing
The Shen Neng 1
plan, entered a prohibited area and run aground ship’s lower hull. Maritime Safety Queensland
Great Barrier Reef,” Svitzer spokesperson
“A competent and alert watch-keeping officer
general manager, Patrick Quirk, later said that
Matthew Watson told The Baltic magazine
should be able to navigate easily in this area,”
the main engine room had been breached,
from Gladstone.
the authority added. The master and chief officer
the main engine damaged and the rudder
were later arrested by the Australian police.
seriously damaged.
on Douglas Shoal.
A team of about 30 Svitzer personnel from Australia, Singapore and the Netherlands (home
The panamax bulk carrier had left the Port
Svitzer immediately mobilised two tugs,
of Svitzer Salvage) were working on the casualty,
of Gladstone carrying approximately 65,000
one from Gladstone – the 46mt bollard pull
both on location, and from onshore sites where
tonnes of coal and was bound for China. Around
Tom Tough – and the larger, 64mt bollard pull
equipment was assembled and transported
975 tonnes of heavy fuel oil was on board the
vessel, the Austral Salvor from Brisbane. As the
to the vessel. The salvage team included
vessel, which is owned by the Shenzhen Energy
Shen Neng 1 had been dragged 30m across
Drew Shannon, who led the Svitzer team that
Group, a subsidiary of COSCO.
the reef one of the tugs was used to help
moved the stranded Pasha Bulker which ran
stabilise the vessel.
aground in 2007 in storms off Newcastle,
Maritime Safety Queensland activated a national oil spill response plan when the master
“We are working extremely hard with
told the authority that there was a hole in the
Australian authorities to protect the iconic
theBaltic June 2010 www.thebaltic.com
New South Wales.
41
Towage & salvage Boskalis takeover goes ahead
Following the initial internal oil transfers that took place immediately after the grounding, the
One of the other majors in the industry,
Pacific Responder, a dedicated salvage and
Smit Internationale, has also found itself in
response vessel from north Queensland, arrived
the headlines but for different reasons, as the
in Gladstone with specialised boom equipment
Boskalis take-over finally goes ahead. On March
to protect the reef in the event of a spill during
27, the Dutch dredging group declared that
the external oil transfer.
its offer for Smit was unconditional, as 90% of
A large 50 metre bunker barge, the Larcom,
Smit’s shares were tendered.
with a capacity of up to 1,500 tonnes, was
In an historic press conference, representing
moored alongside to receive oil from the
Smit’s last one as a stand-alone firm, Smit chief
stricken vessel. Shen Neng 1 was eventually
executive officer Ben Vree stressed once again
refloated and was expected to be taken to the
that all four Smit divisions (Harbour Towage,
Port of Gladstone.
Terminals, Salvage, Transport & Heavylift) of the
The incident led to an immediate outcry
Rotterdam-based company would stay together
in Australia and by environmental groups
under the acquisition and that the Smit name
worldwide. The Australian Prime Minister Kevin
and logo would be retained.
Rudd flew over the site and vowed to bring
An extensive newbuild programme would
those accountable to justice.
also be honoured, he stressed, saying that
There were also calls for mandatory piloting
there would be “no cancellations”. This year
through the reef. WWF urged the government
alone, some 25 vessels will join the company
to make it compulsory that all large commercial
and this follows on from 34 last year. Seven are
vessels travelling within all parts of the
due to arrive in 2011 and Mr Vree told the Baltic
Great Barrier Reef should have qualified and
magazine that he did not exclude “building a few
experienced pilots on board.
more as prices are coming down at the yards”.
In response to this incident, Australia is
As well as the incident in Australia, Svitzer is
Smit would probably add the newbuilds into
seeking to extend the Great Barrier Reef vessel
currently busy across the globe. The company
Australia, Brazil and the Baltic and he expects
traffic system further south and to subject ships
is deploying its unique patented mobile dredger,
to see future growth in Taiwan and China.
to greater surveillance.
the Salamander, to dredge around a 7,455 gt
The company recently started a joint venture,
Ships sailing through the southern parts of
Bulgarian cargo vessel which is stranded high
Towmar Smit Baltic, and the group was awarded
the Reef will be tracked by satellite and required
on a beach in Italy. The Burgas grounded off
a five-year exclusive license for the Port of
to regularly report their movements.
the beach of Castellaneta, Taranto in a storm
Gladstone. Australia is a new market for the firm
in March.
and five newbuild, 70 tonne bollard pull tugs will
Over recent years, queues outside Australia’s coal ports have been a regular feature as
Hendrik Land, senior commercial manager,
they feed Asian demand. There are also fears
Svitzer Salvage, says although a relatively simple
Although Smit had not been unscathed
that traffic will only intensify as several new
piece of kit, the Salamander can work in areas
by the recession, Mr Vree says the firm has
LNG plants open. Unofficial reports say that
where normal bulldozers and dredgers cannot.
a strong balance sheet, that costs are under
sometimes vessels use the reef as a “rat run”,
“The mobile dredger can drive on to the beach
control and that there will be plenty of chances
taking short cuts to coal terminals.
and work in shallow water and surf.”
to grow further as it enters a new chapter in its
work at the port starting next year.
170-year history.
Minimizing the bunker spill was a priority
42
theBaltic June 2010 www.thebaltic.com
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Shipmanagement, crewing and education update
Shipmanagement news InterManager presents at Brussels
Secretary general Guy Morel, who has
totally at odds with such responses in all other
pioneered the association’s KPI project, said:
professions, where an unintentional incident is
InterManager representatives met with top
“We welcomed this chance to explain thoroughly
treated as such and does not lead to criminal
European Union officials in Brussels in April to
how industry-wide performance monitoring will
sanctions. Seafarers continue to be penalised
discuss EU policy towards key issues in the
benefit shipmanagement and move us forward
for acts that have nothing to do with criminal
shipmanagement sector. Criminalisation, piracy,
to greater transparency and effectiveness. I am
negligence.
transparency and a lack of unity across member
delighted that the EU officials found our project
“InterManager would like to appeal to the
states towards maritime issues were some of the
interesting and effective and we look forward to
honourable delegates to raise this issue at home
subjects on the agenda.
gaining their support.”
and make the difference now – seafarers are not
InterManager secretary general Guy Morel
The criminalisation of seafarers in particular
and secretary general elect Captain Kuba
has been a major concern for InterManager,
guilty unless proven so,” Szymanski said.
Szymanski, Svein Sorlie, group senior vice
which spoke at the IMO in March about its
president at Wilh. Wilhelmsen, George Hoyt
concern
from Newslink and Harald Sleire, senior research
displayed towards seafarers during cases of
Japanese forum highlights need for seafarers
engineer at Marintek met with EU officials from
criminalisation.
By 2020, the maritime industry will need to
at
the
“discriminatory
attitude”
the Maritime Transport Directorate, including
“InterManager believes these practices have
recruit an additional 32,153 officers and 46,881
Dimitrios Theologitis, head of unit maritime
an extremely damaging and dangerous effect on
ratings above 2010 figures to meet growing
transport and ports policy, Jacques Michaux,
the shipping industry,” delegates to the MEPC
needs, according to a study carried out by the
Torsten Klimke, Josep Casanovas and Anne
meeting were told. InterManager also pointed
Nippon Foundation and the Japan International
Devouche.
out that the criminalisation of seafarers directly
Transport Institute (JITI).
Capt Szymanski said: “This was an important
contrasts with the STW subcommittee’s call to
The results of the ‘Study on the future global
opportunity for us to discuss the issues which
shipowners, managers and flag states to do
supply and demand for seafarers and possible
affect shipmanagers throughout the world. We
more to encourage young people to consider
measures to facilitate stakeholders to secure a
enjoyed an informative exchange of views on a
a career at sea and to work harder to retain
quantity of quality seafarers’ were presented in a
wide range of subjects.”
existing seafarers.
seminar at the IMO in mid-May by JITI President
In addition, the InterManager team gave
“To suppose that professional seafarers can
Makoto Washizu. “How”, he asked, “are we
a presentation on its pan-industry KPI (Key
be detained without trial is a disproportionate
going to secure the necessary number of young
Performance Indicators) project.
response not justified in maritime law and
people for the future security of the maritime industry?” The seminar, also discussed how a Corporate Social Responsibility (CSR) approach could be adopted to improve working conditions and boost the image of the seafaring profession. The study was carried out by a steering committee composed of academics and representatives from the maritime industry. The group found that while the recent global economic crisis had temporarily affected world cargo movement, projections for industry growth over the coming ten years were still high, and at current levels of recruitment, supply was unlikely to meet demand. Even where recruitment is higher, too many existing seafarers are seeking shore-based jobs early in their careers.
The InterManager delegation to the IMO
theBaltic June 2010 www.thebaltic.com
45
Power Power Shift? –– China China takes Shif Control Power Shift? takes Control
Drawing closer to the power, TradeWinds Drawing closer to the power, TradeWinds’ Shipping China 2010 moves to Beijing to examine every important face Beijing to examine every important facet of how the shipping industry’s Drawing closer to the power, TradeWinds’ Shipping China 2010 moves to fortunes are linked to China. Dedicated s fortunes are linked to China. Dedicated sessions will focus on areas of Beijing to examine every important facet of how the shipping industry’s vital importance include vital inform vital importance and include vital information for the globaland shipping fortunes are linked to China. Dedicated sessions will focus on areas of community , including: community, including: vital importance and include vital information for the global shipping The Chinese Economy – implications • • The Chinese Economy – implications for shipping community, including: Demand • • Demand drivers for dry and liquid bulk drivers for dry and liquid bu • The Chinese Economy – implications for shipping Energy and commodity security – ma • • Energy and commodity security – matching demand with supply • Demand drivers dry and liquid bulk side conundrum – unraveling the supply Shipbuilding • • Shipbuilding –for unraveling the supply • Energy andfinance: commodity security matching demand with supply Asset finance: lending, leasing bonds • • Asset lending, leasing–bonds, export credit agencies • Shipbuilding – unraveling the supply side conundrum Chinese offshore technology • • Chinese offshore technology • Asset finance: Commercial lending, leasingrecycling bonds, export credit agencies and • • Commercial and technical solutions for ship owners in Asiatechnical recycling
• •
Chinese offshore technology Register your interest and be among the Register yourand interest and be among the first to receive programme: Commercial technical recycling solutions for shipthe owners in Asia
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Shipmanagement, crewing and education update seafaring by consulting students at 12 maritime
industry should seize the opportunity created
Web access key to crew rentention?
institutes in six countries. While respondents
by such new technologies to foster employee
Improved internet access at sea could help
seemed drawn to seafaring as a high-status
loyalty early on”, he stated.
boost crew retention levels by offering closer
The Committee investigated the image of
preferred within a company.
“The shipping
vocation and praised the wages and job
links with family, friends and trainers, acording
satisfaction, most felt pessimistic about the
to the North of England P&I Club. “Faster
at sea and difficulty with relationships and
ITF and Intermanager cooperate on manning
family life as reasons for planning to move
The International Transport Workers Federation
lonely,” says North’s head of loss prevention,
to land-based work in the future. Seminar
(ITF)
managers’
Tony Baker. “Improving the ability to get online
speaker Dr Björn Kjerfve, President of the World
association, InterManager, have signed a MOU
can have significant benefits for crew morale
Maritime University, further pointed out that
committing them to work together on areas such
and wellbeing – but it needs to be managed
piracy incidents are on the increase and that
as maritime safety, training, and preventing the
properly.”
200 seafarers are being held hostage at the
criminalisation of seafarers.
on-board lifestyle, and cited poor conditions
present time. Another area of concern is that too few women take jobs as seafarers, and 94% of
and
international
turnarounds in port and restricted shore leave mean life on board can become increasingly
ship
The Club says living conditions on board by
and the quality and cost of communication
InterManager secretary general Guy Morel and
with family are key issues of concern for people
ITF Seafarers’ Section secretary Jon Whitlow.
considering a seafaring career. According to
The
understanding
was
signed
all women who go to sea work on ferries
The MOU identifies a significant overlap in the
Baker: “Young seafarers now expect to have
and cruise ships, with only 6% in maritime
goals and objectives of the two organisations
similar internet connectivity when at sea as they
cargo transportation. Women are dissuaded
in the field of shipping’s human element. It also
do at home.”
by a lack of ‘family friendly’ policies, health and
recognises the potential benefits of greater
The Club also believes better web access will
safety concerns and a perceived lack of career
cooperation in areas such as: criminalisation and
aid seafarer training, which will in turn improve
progression, as they are often entrusted with
the fair treatment of seafarers; the promotion of
crew retention and reduce accidents. “Continual
fewer duties than male colleagues.
social communication on board ships; meeting
professional development programmes rely on
As an example of best practices the
the aspirations of young seafarers; promotion
a significant amount of onboard training and
industry should adopt, Maria Bottiglieri, from
of a safety culture on board ships; ensuring that
supervision, much of which could be done
the Giuseppe Bottiglieri Shipping Company,
manning agencies meet the requirements of
online,” says Baker.
pointed out that her company had started to
the Maritime Labour Convention; improving the
However, the Club points out there are
provide a free company nursery to attract and
image and reality of the industry; simplification
a number of technical issues that need to
accommodate more female seafarers. This was
of the documentation required to be carried
be overcome, not least potentially prohibitive
also recommended by Mr Washizu who pressed
by ships; crew/officer training, attraction and
data costs – though system development and
for “the introduction of a support system for
retention;
availability are continuing to make downloading
female seafarers, including financial support by
standards.
companies for babysitting arrangements”.
and
improving
accommodation
These findings led the Steering Committee
reflects our focus on the care for our seafarers
to propose several measures to stakeholders
and our belief that, with better liaison and
for securing a new generation of high-calibre
cooperation, we can minimise unnecessary
seafarers, based on attracting newcomers to
duplication of effort, improve efficiency and
the profession, providing increased education,
enhance our impact. We have already seen
training and support to those already going
what can be achieved when the industry
to sea, increasing female participation in
unites on issues such as criminalisation
the industry and strengthening information
and piracy, and we hope to build on
dissemination and national policy. Under these
those lessons.”
headings, stakeholders were urged to improve
Jon Whitlow added: “This is a
conditions both at sea and in maritime institutes
positive step towards developing
and to strengthen relationships between the
closer ties on matters of com-
two.
mon interest with international bod-
In a paper, Peter Cremers, CEO of Anglo-
ies representing shipowners and
Eastern Ship Management Services, said: “To
operators. We hope that searching
make our industry more attractive, the living
for common ground and improv-
conditions on board must be improved to be
ing communications and liaison will
in line with the expectations of the youngsters.
result in a more powerful united
The minimum requirements must be upgraded
voice on industry issues.”
so that the accommodation on board feels like a ‘home’ and not a posting to a remote location’.” He also pointed out that young seafarers
cheaper.
Guy Morel commented: “Today’s signing
The past two years have seen a number of occasions when organisations across the shipping industry have
– and prospective recruits – now used online
come together to speak out on issues such
social networks to discuss the working
as piracy and the unfair criminalisation of sea-
conditions provided by various companies, and
farers. The ITF has previously signed an MOU
even compared which routes and ships they
with Intertanko.
theBaltic June 2010 www.thebaltic.com
47
With the world’s largest FSS fleet and the most extensive
For more information contact:
global teleport and fiber infrastructure, Intelsat provides
maritime@intelsat.com
its customers with unparalleled resources.
+1 202-944-6944
Put the power and reach of the Intelsat network to work for you. To learn more, visit www.intelsat.com www.intelsat.com
Shipmanagement, crewing and education update Legal issues are also critical, potentially resulting in ship detention and crew arrest if ships’ servers or personal computers are found to contain inappropriate material when calling at ports in certain jurisdictions. The Club recommends shipowners include suitably worded terms in contracts of employment to ensure the benefits of internet use at sea can be enjoyed by all while maintaining the rights of individuals and employers.
Liberia launches VOC management plan approval service By July 1, 2010, all tankers carrying crude oil will be required to implement and maintain on board an approved ship-specific VOC (Volatile Organic Compounds) Plan, in accordance with Regulation 15.6 of the revised MARPOL Annex VI. The VOC Management plan is required in order to obtain a MARPOL International Air Pollution Prevention (IAPP) certificate. VOC emissions are air pollutants which need to be controlled in the global effort to reduce the harmful effects of atmospheric pollution. VOCs from crude oil transports are a mixture of light-end components in crude oil, which can be emitted from oil and oil products during production, processing, loading, transport, unloading and storage. The lightest component, mainly methane, contributes to the greenhouse effect, while the heavier components, mainly propane and butane, contribute to the formation of ground-level ozone. The purpose of the VOC Management Plan is to ensure that tankers prevent or minimise VOC emissions, as far as is possible. The Liberian Registry is offering a VOC Management Plan Review
Does your international medical insurer go this far?
and Approval Service to help tanker owners achieve compliance with impending IMO legislation governing air pollution. Captain David Pascoe, senior vice-president of (LISCR), the US-based manager of the Liberian Registry, says: “Regulatory compliance is becoming an increasingly onerous task in the shipping industry, and responsible ship registers can take some of the burden off their clients in this respect by adopting a proactive approach to issues such as this.”
Bureau Veritas to audit manning agencies Bureau Veritas has moved ahead of the Maritime Labour Convention 2006 and set up a system to audit and certify manning agencies for seafarers. “Shipowners and managers need to be able to demonstrate they are working with properly run seafarer recruitment and manning
Evacuation to the nearest centre of medical expertise. Whether you’re in the gas or oil business. Wherever you are. You’re just a phone call away. Our 24/7 multilingual helpline is ready and waiting. To get you to the nearest medical centre. As soon as possible.
offices,” explains Claude Maillot, director, ships in service, Bureau Veritas. “When the Maritime Labour Convention comes into force it will be a requirement for organisations recruiting and placing seafarers to conform to the standards set down. We have had a Code for Approved Seafarer Manning Offices since 1998, and building on that experience and the requirements of the MLC 2006 we have now launched a new service for the assessment of Seafarer Recruitment and Placement Systems (Seafarer Manning Offices). It will enable the best manning agencies to demonstrate their readiness for the MLC implementation, and will help owners and managers to ensure they get the right crews.”
Bupa International Healthcare. Everywhere. +44 (0) 1273 322 091 www.bupa-intl.com
Bureau Veritas is working with owners and organisations to ensure that the Maritime Labour Convention can be implemented as smoothly as possible. It has already issued its first Statement of Compliance under the MLC to Danish shipowner Herning Shipping a.s.
theBaltic June 2010 www.thebaltic.com Bup_Rig_Oil_270x86_Col_TheBaltic_June10.indd 1
49 19/4/10 12:03:19
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EFMD
Shipmanagement, crewing and education update
Education news Anglo-Eastern to expand Mumbai maritime academy
Cremers explained that he felt the emphasis
Professor Ella Ritchie, Pro Vice Chancellor
on training and cadets was becoming more of
for Teaching and Learning at Newcastle
As the long-term shortage of qualified officers
an industry trend as owners were realising that
University said, “The collaboration offers an
and crew becomes an increasing concern for
the shortage of quality officers would not be
exciting opportunity for both Newcastle and
the maritime community, Anglo-Eastern has
going away in the near future. Consequently, any
EIMA. For the university, it is a major step
taken a direct approach to the problem by
investment in this area should be seen as a long-
towards achieving our international expansion
launching its own maritime academy in Karjat,
term strategy. However, he urged shipowners to
strategy, attracting some of the best graduates
just outside Mumbai. In a company statement,
provide more places for cadets, offering that:
in the world, and further raising our reputation
Anglo-Eastern said that it had chosen Mumbai
“An ideal situation would be to have our own
as a world-class university. Locally, Newcastle
as the location for the school as India had been
training ship for 20+ cadets. Help us to get a
University’s long standing tradition of excellence
its first choice for crew supply since the early
training ship for 20 cadets, and we will manage
in the marine sector will boost and support
80s. Today, Anlgo-Eastern employs in excess of
it free of charge.”
the growing marine industry in UAE, helping to deliver some of the best graduates of the future.”
8,000 Indian seafarers, making up approximately 80% of its crewing requirements across a fleet back, and setting up this maritime academy,
EIMA and Newcastle collaborate
Marine academy for Plymouth
which will bring us cadets straight from high
Emirates International Maritime Academy (EIMA)
The UK government has given the go-ahead
school, is the first step,” said Peter Cremers,
is to collaborate Newcastle University in the
for the opening of Marine Academy Plymouth,
Anglo-Eastern’s group ceo.
UK to offer a programme of high quality and
a multi-million pound state funded academy
The academy took its first batch of 120
specialized maritime studies and education in
that will focus on marine eduation. The signing
students last year, enrolling them in a first-year
the UAE and the Middle East/North Africa region
signals the green light for more than £17 million
nautical science course. A graduate mechanical
at large.
worth of investment in the new school. The
of 315 vessels. “We now think it’s time to give
engineering course, a one-year curriculum
The first programme to be run under the
news has been welcomed by the University of
to convert mechanical engineers into marine
agreement will be an MSc in Marine Technology,
Plymouth, the academy’s lead sponsor and both
engineers, is set to commence with 40 students.
intended to give graduate professionals working
co-sponsors, Cornwall College and Plymouth
At present, all the students enrolled will be
in the marine industry skills in advance marine
City Council. The sponsors have set up the trust
offered employment in the Anglo-Eastern fleet.
technologies,
that will manage the new academy.
Future plans include the development of a
operations. The program is designed to be
Unlike maritime academies such as Warsash
second campus that will increase the potential
flexibly responding swiftly to the current and
and the above-mentioned maritime academy
number of students to 1,000, and allow the
developing challenges and demands of the
in Mumbai, the Plymouth academy is not a
company to open the campus to all students,
global maritime sector.
facility for training officers and cadets, but will
not only those exclusive to Anglo-Eastern.
management,
and
business
Captain Jaafar bin Sidin, Director of EIMA
offer a wide range of curriculum subjects, with
According to Peter Cremers, Anglo-Eastern
said: “We are proud and excited to welcome
specialisms in technology and science with a
aims to make the academy one of the leading
Newcastle University to the UAE and hope this
focus on the marine environment.
institutes for nautical education in India.
beginning will lead to a long term relationship
Marine Academy Plymouth (MAP) will open
However, he said, the academy still has a long
offering more programs at the undergraduate and
its doors on 1 September 2010, working out
way to go before that can happen. Anglo-
postgraduate levels to meet the requirements of
of the existing school buildings. Significant
Eastern has invested $8 million in the maritime
the industry and to match the expectations of
improvements and remodelling are being
academy, but is now looking for further funding
our students. In our endeavours to develop
planned for the school site at St Budeaux in
for expansion. “Our first batch of students
EIMA as a centre of excellence for maritime
readiness for the September opening and new
are close to graduating but we need help to
learning, Newcastle University was the ideal
buildings are planned for 2013.
complete the second campus,” said Cremers.
choice as their goals and our vision are closely
“The planning and designs have been done
matched. EIMA is fully committed to supporting
and we are now actively seeking the financial
regional capacity building in maritime education,
support of our owners. Our clients have been
applied research and development for maritime
very supportive insofar as having cadets on
professionals and experts to serve the needs
board our ships and we hope they will continue
and requirements of the maritime industries of
to do so, by supporting our Maritime Academy.”
the GCC countries and the region.”
theBaltic June 2010 www.thebaltic.com
51
When it matters most
Behind every test is a life Protecting the safety and wellbeing of seafarers and maritime workers is critical. Every crew member is responsible for ensuring that accidents at sea do not happen. Today’s maritime operators face some of their toughest challenges yet, including new international regulations for safeguarding health and welfare. With a worldwide client base, Concateno has more than 20 years’ experience providing the maritime industry with drug and alcohol testing programmes and hazardous chemical exposure monitoring.
Concateno Maritime Services Drug and alcohol testing
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Find more information on our full range of products and services, along with advice on the best method of testing for your company.
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Tel: +44 (0)20 7712 8000 Email: maritime@concateno.com www.concateno.com
We have created a section devoted to our Maritime customers which is built around all testing needs from ship to shore. The Maritime Division team are solely focused on your drug and alcohol programme, ensuring that you get the best, most responsive service.
Concateno Harbour Quay, 100 Preston’s Road, London, E14 9PH, UK
CGP7433 Ed.001a
•
Corporate viewpoint Concateno
Concateno Steering a course to health and safety
O
ne of the main driving forces behind
The changing market of drugs
The deterrent
the testing of vessels for drugs and
The market for new drugs is also constantly
A drug and alcohol policy needs rules, education
alcohol was the spillage of oil from the
evolving; different geographical regions have very
and a threat to ensure that people take notice
Exxon Valdez off the coast off Alaska in
noticeable preferences for their taste in recreational
of the policy. The “threat” can be provided by
1989. A number of issues became apparent after
drugs, such an example would be the increase
the constant reminder of a random drug testing
this disaster, resulting in Exxon putting together a
in Ketamine abuse, especially in the UK and the
programme. It is important that offshore locations
Charterparty Clause so any tankers chartering their
Far East. But Ketamine abuse has associated
are not seen as a “safe” location out of the reach
oil must test for drugs and alcohol. This instigated
bladder dysfunctions such as shrunken bladder
of drug testing.
an industry-wide shake-up to eliminate preventable
and ulcerative cystitis, leading to high frequency
The need to have a fully comprehensive drug
accidents by introducing the simple and effective
and urgency of urination, bladder pain, matter
and alcohol testing service from a single supplier
safeguard of drug and alcohol testing.
passing through the urinary tract, kidney damage
with a global outreach and adhering to the highest
and bladder cancer.
industry standards is essential in the maritime
The dangers of abuse
New drugs will lead to new problems; this
industry.
The impairment effects of alcohol and drugs are
can impact on the crew’s health as much as the
The advantage of using a single provider
well documented and can put your vessel, crew
dangers of being “under the influence” whilst on
ensures for all maritime drug and alcohol testing
and your company’s reputation at risk. All shipping
duty.
the security of supply and a consistency of service, and will result in reduced administration costs
companies need to ensure that their officers and crew are fit for duty, and this includes both their
Alcohol versus drugs
for you. To achieve these benefits, your supplier
awareness of the dangers of drug and alcohol
The signs of alcohol misuse are readily recognised.
must be an expert in global logistics such that
misuse and a process to help support and assist
In contrast, some effects of drugs, for example
sample collections can be carried out across an
compliance to shipping guidelines and regulations.
amphetamine’s apparently endless energy, can
international collection network in all major ports as
A drugs and alcohol policy that includes a test
initially appear beneficial, disguising the associated
well as in secondary ports. Collections need also to
programme does both – it helps raise awareness
elements of risk taking, depression and paranoia.
adhere to full chain of custody requirements so that
so that crew understand the seriousness of the issues and it also acts as a deterrent.
Regulations
Alcohol comes in bulky or fragile containers,
samples are handled correctly, are never mixed and
difficult to hide. Illicit drugs for personal consumption
never lost, and therefore legally defensible. It is also
are lightweight and inconspicuous.
the responsibility of the provider to know regulatory
We have social rules governing the use of
frameworks affecting maritime drug and alcohol
a
alcohol. Drugs such as cannabis (marijuana),
testing and to adjust procedures accordingly.
comprehensive drug and alcohol testing policy with
amphetamine and cocaine are “outlaws” – the
Finally, the laboratories in which analysis is carried
having to adhere to local legislation on drugs and
users make their own rules and consequently
out will need to have the highest standards of
alcohol, and ensuring compliance with regulatory
push the barriers of safety to satisfy their own
accreditation to ensure that the test results you
bodies, such as:
preferences.
receive are correct every time.
There
is
a
complexity
of
introducing
Drugs and alcohol usually get considered under
• ISM Code
These
attributes
are
embedded
into
• USCG
the Health and Safety banner but there is also
Concateno’s 20 years of maritime experience and
• ExxonMobil
a security risk. The desire for these products
have made us the world’s largest single supplier of
“All seafarers must be able to respond at any
can place the purchaser in circumstances where
drug and alcohol testing services to the industry.
time to an emergency situation.” (Oil Companies
they may unintentionally, deliberately or through
International Marine Forum Guidelines for the
blackmail give away information that the dealer
Concateno
control of drugs and alcohol onboard ship).
could sell on to interested parties. The complexity
Harbour Quay
Labour
of international drug trafficking and its links
100 Preston’s Road
Convention, which was adopted by the ILO in
with criminal activities could attach enormous
London, E14 9PH
February 2006, has been designed to ensure the
ramifications to the purchase of a small amount of
Tel: +44(0)20 7712 8000
highest standards of healthcare, safety and welfare
an illegal drug.
Fax: +44(0)20 7712 8001
In
addition,
the
new
Maritime
for seafarers. This will also be brought into force in the near future.
As part of an overall security strategy it makes sense to ensure that personnel are not the weak
E-mail: enquiries@concateno.com www.concateno.com
point in an organisation’s defences. An effective deterrent is required to convince them that the risks of even occasional drug use are not worth taking.
theBaltic June 2010 www.thebaltic.com
53
Oxford Analytica
Iron ore exporters gain clout The outlook for the iron ore market remains strong, but pricing structures are changing dramatically
M
ajor mining companies have largely succeeded in their push for shortterm iron ore pricing, breaking with the four-decade-old tradition of
annual benchmark prices. Price control for traded iron ore has shifted to the three major mining-for-export companies after their significant consolidation of ownership. UK-Australian BHP
Billiton and Rio Tinto, and Brazilian Vale dominate the international iron ore market. Together, these three companies exported around 74% of the seaborne trade in 2009. Vale and BHP Billiton successfully pushed this year for the end of the four-decade-old annual pricing system in favour of quarterly price adjustments. Both mining companies reached landmark agreements with Japan’s Nippon Steel and South Korea’s POSCO steel on March 30. Meanwhile, Rio Tinto announced on April 8 that it is still negotiating, especially with China, the world’s largest importer of iron ore, to set prices on a quarterly basis. Rio Tinto has had a tense relationship with Beijing, after failed price negotiations and China’s arrest and conviction of four Rio Tinto employees.
China Beijing continues to oppose the shift to a quarterly pricing system, and has called for an international trade challenge to what it regards as monopolistic practices by the big three iron ore exporters. China accounts for about 65% of seaborne ore imports, followed by Japan with about 10% and all others with 25%. Last year, China overtook the United States in the number of vehicles sold, and China’s car sales in January of 2010 were more than double those of a year earlier.
54
theBaltic June 2010 www.thebaltic.com
Oxford Analytica rate and is expected to continue to do so. In North America alone, the challengers include at least six juniors and start-ups. Pelletised iron ore, which accounts for about 17% of global iron ore trade, is the premium product. Many established and new iron ore producers in India, China, the former Soviet Union, Africa, North America, and even traditional producers Brazil and Australia, are challenging the market position and oligopolistic power of the three major iron ore companies. Nonetheless, they are still far behind: the ‘big three’ had high profits over the six-year price run-up prior to 2009. With larger work forces, the major companies have greater flexibility to adjust or absorb some reductions in staffing. In a demand rebound like this year’s, they are able to pressure for increased prices.
New capacity The supply of iron ore will continue to increase, Construction will continue to drive demand for steel
as capacity expansions are long-term in nature and financing is already in place, with
In 2009, iron ore prices fell drastically due
The concentration of producers in the iron ore
demand growing. Although it is not enough to
to the global recession. However, even with
industry is far greater than the concentration of
satisfy China’s needs, the country has added
benchmark price cuts of 28% for iron ore fines
global steelmakers. The six largest steelmakers
substantial capacity in recent years.
and 48% for pellets in the annual benchmark
in the world – ArcelorMittal, Baosteel, Nippon
In China, new iron ore mine capacity
negotiations, China pushed for even deeper
Steel, JFE Steel, Hebei Steel and POSCO –
expansions in 2008 totalled about 50 million
cuts, but could not reach an agreement.
together contributed less than 22% to the global
tonnes. They are estimated at about 35 million
1.2 billion tonnes of steel production in 2009.
tonnes in 2009. This year, the increase may be
Chinese steel mills ended up buying an estimated 60% of their ore in the spot market,
only 25 million tonnes, with year-end iron ore
which was cheaper initially, but rose far above
mining capacity at about 490 million tonnes
the annual benchmark price later in the year.
Diversification
The annual benchmark price was $74 per tonne,
Chinese buyers are seeking to increase the
Outside of China, iron ore mining capacity
but spot prices reached $135 dollars per tonne
number of sources of their iron ore supply, both
rose about 115 million tonnes in 2008, with
by the end of 2009.
globally and domestically, in order to diminish
the increase in 2009 estimated at about 81
their dependency on the ‘big three’ exporters.
million tonnes. In 2010, there may be another
(upgraded).
Demand from China will remain high in the
107 million tonne gain, bringing the total non-
Concentration
foreseeable future, leaving the steel industry
Chinese iron ore mining capacity to 1,590 million
The world’s iron ore industry has become very
in a weak bargaining position against major
tonnes.
concentrated in the last few years. In 2009:
suppliers. China has many small iron ore mines,
Despite its importance as the key global
• Vale had approximately 310 million tonnes
but they are not able to meet the country’s
importer, China is losing clout in the iron ore
booming demand.
market. Vale, Rio Tinto and BHP Billiton will
of capacity;
Much of China’s iron ore deposits are low-
maintain their major influence over the world
grade hematite ores, which average 30%-35%
price for the foreseeable future. In the longer
tonnes.
iron content. Hematite ores tend to be hard
term, new mining entrants are likely to act as a
Hence, the ‘ big three’, which export almost
to upgrade, so they are often blended heavily
moderating influence on pricing.
all their output, produce 680 million tonnes of
with high-grade direct-shipping-ores of 60% or
iron ore out of a world total production for export
more iron to improve productivity for the blast
of 908 million tonnes.
furnaces. In China, high-grade ore must be
• Rio Tinto had around 220 million tonnes; • BHP Billiton had approximately 140 million
Vale, Rio Tinto and BHP Billiton are also
imported.
actively expanding their existing iron ore capacity. Taken together, they increased capacity by about 25 million tonnes in 2009 and plan to add
Global supply
another 100-125 million tonnes of capacity by
The rising Chinese demand for iron ore and
2012. Other companies together also have more
the country’s desire to break the oligopoly
Report by Oxford Analytica
than 125 million tonnes of new iron ore pellet
of the big three suppliers are driving forces
www.oxan.com
capacity proposed to be completed worldwide
for additional capacity: global iron ore mining
© 2010 Oxford Analytica
in the next three to four years.
capacity has been expanding at a 6% annual
E-mail: dgautrey@oxford-analytica.com
theBaltic June 2010 www.thebaltic.com
55
FFA
Looking forward A round-up of news from the derivatives sector
Baltic Exchange outlines dry FFA screen trading plans
the OTC FFA market to migrate to a greater level of automation and transparency in the least
Imarex has appointed Geir Olsen as the
The Baltic Exchange has applied for Multilateral
disruptive manner possible.”
group’s new chief executive officer, following Exchange
the resignation of Herman Michelet in March.
Financial Services Authority (FSA) for BaltEx,
announcement, Freight Market Information
According to Imarex, Michelet resigned as “a
a central screen-based trading solution for the
Users Group chairman Stefan Albertijn of Alfred
consequence of different views regarding the
dry Forward Freight Agreement (FFA) market,
C Toepfer International GmbH said:
management of the group and the execution of
Trading Facility (MTF) status with the UK’s
to be run by a new subsidiary, Baltic Exchange
Welcoming
“As
chairman
the
of
Baltic
New ceo for Imarex
the
Freight
Market
the group’s strategy”.
Derivatives Ltd. It is anticipated that BaltEx will
Information Users Group (Dry), I am very happy
Olsen, who has been Imarex’s chief financial
go live before the end of the year.
to see the Baltic Exchange has developed a
officer since 2009, has been acting as interim
Announcing the development at meetings
solution which fits nicely with the mandate
ceo since Michelet’s resignation. He will also
attended by freight derivative traders and brokers
the FMIUG formulated in 2009. The concept
continue to serve as chief financial officer.
at the Baltic Exchange, Baltic Exchange chief
presents a unique opportunity for all freight
The combination of the roles is a consequence
executive Jeremy Penn said: “BaltEx is being
derivatives stakeholders to benefit from faster
of Imarex’s decision to focus its strategy on
developed with the needs of both brokers and
execution, a more efficient transmission to
OTC and clearing as the main segments of its
principals in mind and is ultimately designed to
clearing and the inclusion of market participants,
business, while market analysis will be the third
help bring greater transparency, confidence and
large and small, as well as high supervisory and
operational unit. More resources will be allocated
liquidity to the dry FFA market. BaltEx will enable
compliance standards. In this respect BaltEx
directly to the individual business sectors.
both brokers and principals to enter their trades
shows that the Baltic Exchange is truly looking
Within Imarex’s OTC segment, Spectron has
anonymously and facilitate a simple straight
to maintain its pivotal role in the freight markets,
appointed Simon Davidson and Gordon Bennett
through clearing process. A Baltic Exchange led
working with all its members and defending their
as new managing directors with responsibility for
trading screen ensures that the shipping market
common interests.”
the Europe/Asia and the Americas operations
maintains control of, and ultimately benefits from,
Baltic Exchange chairman Mark Jackson
respectively. They succeed Andrew Stephens
the introduction of a centralised trading facility
said: “The Baltic Exchange Board is fully
who has decided to step down after serving
used by a range of market participants. We are
committed to this project and we are convinced
as Spectron managing director since 2003.
determined to build a consensus of support from
that this is an important step for the Baltic to be
Stephens will be available as an advisor for the
the market for the trading platform.”
taking to enable the continuing evolution of the
Imarex Group going forward. Both Davidson and
freight derivatives market.”
Bennett have extensive market experience and
He added: “Unlike central screens already proposed by other parties, which seek to impose
A date for the launch of BaltEx has not yet
have been part of the Spectron management
an existing futures market trading system on
been finalised and the Baltic Exchange will be
since 2002. Their appointments ensure continuity
to the freight derivatives market, BaltEx will
building up staff numbers to roll-out BaltEx in the
and lay grounds for continued success for the
enable continued access to multiple clearers
coming months.
Spectron Group.
and has been designed not to disintermediate brokers. We believe that greater liquidity for
BaltEx is based on technology developed by Elysian Systems.
India-China FFA launched
easily traded standardised contracts will create
All dry FFA contracts are already settled
more opportunities for brokers to develop more
against the Baltic Exchange’s physical indexes,
On March 10, the Baltic Exchange commenced
sophisticated off-screen trades. They will of
which are compiled from a panel of independent
the trial of an implied iron ore Voyage Equivalent
course continue to execute standard trades, on
shipbrokers.
rate based on the S7 India-China supramax iron
screen where appropriate. Our goal is to enable
56
ore timecharter route.
theBaltic June 2010 www.thebaltic.com
FFA and the dry FFA market. Therefore, it is a natural step for Clearport – now part of CME Group – to expand its offering in post trade freight clearing, says Stevens. It now offers wet FFAs cleared as forwards and priced on a Worldscale basis, reflecting the mainstream market practice. In addition, it has recently launched a slate of dry FFAs, which also clear as futures. It has to be recognised, though, that the FFA market is no longer a market in search of a clearing solution, but rather a market concerned about the quality and breadth of service on offer, says Stevens. In this regard, Clearport has introduced some important features that should be popular with existing market participants, as well as helping to develop the market further. As with all Clearport products, there is no screen to view, and no central marketplace offered. Deals are agreed between counterparties, usually through a broker, and only submitted to clearing once the trade is confirmed. Trade submission usually takes place through the CME Clearport website, although an API is also available for connection by broker screens such as Trayport. Submitted trades are checked automatically against risk limits, and the trade is confirmed or rejected immediately. Where enaThe first FFA trade on the supramax India-China timecharter route was completed
now that smaller clips are regularly traded in the
bled, Straight Through Processing means that
market in greater volume.
the trade can feed through directly into customer risk systems in a matter of seconds.
between principals Morgan Stanley and Cargill
“It is becoming obvious that people no
International SA Geneva on March 12, reports
longer rely purely on FFAs for trading and risk
On the dry freight side, the timecharter
FIS, which brokered the deal.
management, that they see options as useful for
average contracts have been listed with a ¼
Francesco Ronsisvalle and Joe Radmore
hedging and speculation. The market is getting
day contract size to allow for more flexibility
of Morgan Stanley said: “Morgan Stanley sees
to the size where you can’t just ignore it, you
for trade splitting and shaping across months.
considerable opportunity in the India-China
have to realistically look at getting involved,” said
Balance-of-month (‘balmo’) contracts have
routes for timecharter and spot business. This
FIS options broker James Schembri.
also been listed to facilitate a tailor-made risk
has the potential to be a very useful tool for
The increasing number of market participants
management solution. Additional contracts are
traders of iron ore, as well as freight and iron
has also meant that trading options has become
under development, with the aim of offering a
ore swaps.”
less expensive, with more participants trading
full range of products which will be of use to
John Banaszkiewicz, managing director of
half contracts or small days as a means of
all freight market participants. CME Group has
Freight Investor Services said: “This is a kick-
getting started. “Smaller clips make options
a reputation for offering innovative products
start for the S7 route and vindicates our belief
much more attractive to smaller shipowners who
on Clearport in response to the needs of the
that there is demand for this from our customers.
want to dip their toe in the pool. As a buyer of
market.
FIS has been pushing the importance of the
an option you can use simple techniques to give
Clearing an FFA does come at a cost,
individual Baltic routes for paper and iron ore
yourself the full upside on a successful trade
wherever clearing takes place, both in terms of
hedging and we think there’s a lot more liquidity
while also limiting your downside to the premium
clearing fees and in the costs for posting margin.
to come.”
you paid,” Schembri says.
The Clearport fee schedule reflects the fact that this is a competitive market, with discounted fees for members as well as for non members
Options trading to pick up, predicts FIS
CME Group expands central clearing services
that trade high volume.
FIS believes that higher volatility, increased
A number of new innovations are available
step is to set up a futures account with one of
volumes and the availability of clearing could
to the freight markets, designed to introduce
the Clearing Members. Once this is done, there’s
make 2010 the year that options gain significant
efficiency and flexibility to this key element of the
an online licence agreement to complete, risk
traction in the paper freight market. The use
global economy, says Richard Stevens, director
limits are assigned to accounts by clearing firms,
of options is potentially attractive because of
research and product development at CME
and customers can identify the brokers who are
the way that trading can be used to maximise
Group in London.
given permission to submit trades for clearing
upside potential while limiting exposure. The
Since 2005, there has been exponential
addition of clearing has removed counterparty
growth in both Clearport’s distribution (over
default risk, and their cost is more manageable
10,000 registered users) as well as in the wet
theBaltic June 2010 www.thebaltic.com
For those that aren’t on Clearport, the first
on their behalf.
57
Corporate viewpoint LCH.Clearnet Ltd
Real-time STP for Freight C
hange is advancing on the FFA market – the need for clearing is still as ever prevalent, with statistics indicat-
brokers to widen their distribution channels
Figure 1. Average PTC Clip Size
with a guarantee of real-time straight-through-
20
processing from the point of trade to clearing.
ing that in the first quarter of 2010,
16
Access to the credit filter application will be
98% of dry FFA trades were cleared, 84% of
12
available through a secure web-based interface
Jan-10
Oct-09
Jul-09
And there’s more … Apr-09
1). Historically such trends have translated into
O
Jan-09
clip size traded in those products (see Figure
4 Oct-08
lative interest and a decrease in the average
contact LCH.Clearnet for further information.
Jul-08
have become vanilla, resulting in greater specu-
that is configurable to the user’s needs. Please
8
Apr-08
Certain structures and elements of the market
Jan-08
which were cleared by LCH.Clearnet alone.
Average Clip Size (lots)
greater adoption of technology within the market
LCH.Clearnet’s next suite of enhancements will address the needs of clearing banks to integrate 3rd party back-office applications directly with
segment, not just in clearing but in transaction
Enhancing technology
our clearing platform. LCH.Clearnet are now
efficiency and back office reconciliation, through
In a move that is set to drive greater efficiency
investing in scoping work that will offer real-time
increased take-up of electronic trading and API-
in the OTC cleared FFA market, LCH.Clearnet
messaging capability and the opportunity for
based real-time messaging. These needs are
is launching a credit filter as an add-on to
clearing banks to experience further operational
becoming evident in the brokered FFA market
its existing clearing technology.
The credit
efficiency gains. In addition, LCH.Clearnet is
as more and more counterparts look to replicate
filter will expedite the clearing process by
making improvements to its clearing system
the efficiency gains seen on other in-house trad-
reducing operational effort for clearing banks
ECS, which will give clearing members and
ing desks – screen-based trading, lower round
using a credit risk management module that
brokers an enhanced GUI. This will greatly
trip costs, straight-through-processing and
allows predetermined credit limits to be set
improve the efficiency for users of the platform,
deeper liquidity through increased client flow.
on a counterparty basis. This will significantly
in dealing with cleared FFA trades.
Couple these elements with the current regula-
streamline the clearing process. Trades will be
tory pressure for greater trade transparency in
evaluated by the credit filter in real-time to check
Product and volume update
the OTC space, and electronic enhancements
the available credit lines of the counterpart, as
As well as technology enhancements, LCH.
become inevitable.
set by their Clearing Member; deals that meet
Clearnet has recently added the S7 timecharter
Brokers, clearing banks and clearing houses
the pre-approved credit limits can then flow
route (East Coast India – China) as well as
now face more pressure than ever to improve
directly into LCH.Clearnet’s clearing platform as
handysize options to its FFA product suite.
services and technology for market principals,
cleared transactions – removing a requirement
Looking forward, there are a number of new
and we are seeing glimpses of a new and
on clearing banks to confirm trades on a deal
markets, related to freight, which LCH.Clearnet
improved infrastructure in the OTC cleared FFA
by deal basis. Credit limits are updated in real-
is investigating with brokers, for planned launch
market at LCH.Clearnet. Screen trading is still
time based on the daily trading activity of the
in the coming months.
in its infancy but is being actively promoted by
counterpart, using LCH.Clearnet’s initial margin
the trading and brokerage community, which if
parameters as the basis for credit usage.
With reporting of trade data becoming increasingly important, LCH.Clearnet is now
successful will increase transaction flow through
In addition to the credit management
publishing daily, weekly and monthly cleared
wider distribution. This in turn will increase flow
capability that is on offer to clearing banks,
volume data on its website. In addition, open
through clearing houses and ultimately clearing
the credit filter also enables streamlining of
interest volumes are also being reported per
banks, but will heighten the requirements
trade entry for brokers that wish to capitalise
route, with weekly updates.
for greater trade processing efficiency borne
on the technology.
through improved systems and technology
to register their trades through the credit filter,
investment. LCH.Clearnet has taken its initial
reducing the time it takes for their trades to be
steps in a process to increase trading and
confirmed cleared. Furthermore, LCH.Clearnet
operational efficiency for clearing members and
is able to offer an open access API that will
brokers alike.
allow connection from any electronic trading
FFA Brokers will be able
platform. This significant advancement allows
58
theBaltic June 2010 www.thebaltic.com
Website: www.lchclearnet.com/freight
Corporate viewpoint AXSMarine
AXSMarine Work faster and more efficiently with information at your fingertips
A
s the global shipping industry strug-
manage more efficiently and make faster
In addition, AXSMarine has developed a state-
gles to come to terms with the rav-
decisions. All of AXSMarine’s products enable
of-the-art address book (AXSAddressbook) far
ages of the most severe economic
users to securely and selectively manage,
outweighing anything available from MS. They
downturn in its history, one thing has
share, receive and publicise data with affiliates
also deploy and develop MS plug-ins for various
become very clear: opportunities may exist but
or partners. Users decide which information
parts of the AXSMarine product suite.
being one step ahead of the competition is cru-
to share, and with whom, by simply clicking
cial if you are to win the deal. Time is definitely
easy-to-recognise
money in today’s fast moving shipping industry
employs state-of-the-art security to provide the
AXSDry
and being able to gather, assimilate and act on
highest integrity concerning the capture and
AXSDry is a complete set of online tools and
the right information at the right time can be
maintenance of data.
databases designed for the dry bulk shipping
symbols.
AXSMarine
All companies users’ privacy is guaranteed
industry. Hundreds of operators, brokers,
at all times. Permanent availability is ensured
charterers and financial institutions save time and
That is where AXSMarine comes in. Its
through rigorous redundancy and back-up
make better decisions by easily interacting with
services are designed to take advantage of what
routines. “In a complex and changing market,
data from the suite’s powerful assessment and
is now referred to as ‘Web 2.0’, the second
we have a simple vision: allow each of our clients
analysis tools. AXSDry enables its users to have
generation of internet-based communities which
to bring their own personalised order to a vast
a complete view of the dry bulk shipping market
aim to facilitate collaboration and information
array of data,” said AXS Marine’s ceo, Fabrice
— without having to sort through thousands of
sharing between users.
Demichel.
e-mails, or manage multiple programmes on their
crucial to ensuring success over failure, as well as a healthy profit margin.
With one click to connect to AXSMarine, users
computer desktops. AXSDry offers subscribers
decision-making
access a complete catalogue of online analytical
a wide variety of features, including Vessel
tools and databases for shipping industry
programmes such as voyage estimators, freight
Manager, Cargo Manager, Voyage Calculator,
professionals. AXSMarine’s online tools are
matrices, distance calculators, vessel position
FFA Manager, Fixtures, Distance Calculator,
secure, fast and easy to use, and the databases
or cargo order listings, commercial and sales
Freight Matrices, Port Library and MOPS (Marine
they source are always up to date. Because
advices, valuations, and market & statistical
Operations Performance System).
they are internet-based, they are available from
reports. These programmes can be tailored to
any computer, anywhere; there is nothing to
the individual user’s requirements.
AXSMarine produces a complete set of interactive,
internet-based
AXSDry’s
Vessel
Manager
featuring
AXSTracker facilitates the updating of incoming
download or install.
tonnage e-mails without having to read them
Indeed, according to Stephen Fletcher,
all. Also available in an MS Outlook plug-in is a
AXSMarine commercial director, having your
How does it work?
facility where the original e-mail can be saved
finger on the knowledge button is part and
AXSMarine has teams of product specialists
and retrieved from the vessel database. In
parcel of this desire for a seamless flow of
collecting raw data from reputable sources.
this way, a broker can transform thousands of
bespoke knowledge – data that are honed and
AXSMarine subscribers also add their own
positions into his own personal, searchable file.
shaped to meet the exact requirements of the
information – always privately, and sometimes
AXSDry’s MOPS was launched in January 2009.
client. AXSMarine’s ability to provide the right
to share with other members. AXSMarine’s
With it, vessel operators can enter voyages
tools and data that are totally dependable,
purpose-designed algorithms transform this
and issue access to their agents to their online
reliable and seamlessly updateable is core to
raw data into databases of searchable and
Statement of Facts manager, thus finalising the
its clients remaining one step ahead of their
sortable information. These databases, when
port expenses directly in their own database
competitors.
used and combined with their high-performance
saving re-keying of critical information.
With
AXSMarine,
shipping
industry
online tools such as vessel searches, voyage
AXS Dry Club members can now view
professionals can transform their massive
estimators,
calculators,
up-to-date chartering positions as part of
overload of raw data into useful, searchable
research and more, let users run their day-to-
their service for a small additional monthly
information. As a result, they can work faster,
day businesses more effectively.
subscription, while brokers are able to benefit
distance
tables,
theBaltic June 2010 www.thebaltic.com
59
Corporate viewpoint AXSMarine from additional marketing advantages by
AXSOffshore
promotion and provides dedicated user and
uploading their chartering position information to
Developed together with two high profile
technical support for customers across the
the AXS database. The new module has already
shipbrokers, AXSOffshore has taken AXSMarine
entire Asia-Pacific region. Since January 2009,
undergone extensive market-place testing over
further into the realms of a common platform
existing product enhancement responsibilities
the past six months and is proving beneficial to
that is database independent. Stephen Fletcher
have also been migrated to the Singapore office.
Club members.
explains: “In the offshore supply vessel industry
AXSMarine SA in Paris focuses on new product
According to Stephen Fletcher, the new
there are many different kinds of vessels which
development and technologies. AXSMarine
information will save clients many more hours
cannot simply be categorised like one does dry
added sales, support and technical staff during
of manpower.
bulk or tankers by size and dwt or, as container
the 4th quarter of 2008 and early 2009 forming
“This service can benefit everyone,” he
vessels are, by size and teu intake. There are
a cohesive team of 10 people, adding to its
explained. “We currently carry some 800 ship
many specialised vessels, and users need to be
team of 12 in Paris. “Singapore is quickly
positions a week, which represents up to 25%
able to manage a subjective view of the vessel’s
becoming a hub for all sectors of the shipping
of the spot market, and we are working diligently
category.”
industry,” says Stephen. It has also boosted its
over the next month to improve the quantity
presence in the European, Middle Eastern and
available,” he said.
African (EMEA) shipping markets by opening a
AXS-Alphaliner
new representative office in London. The new
AXS-Alphaliner is an enhanced version of
office, based at 60 Cannon Street in the heart
AXSAddressbook
Alphaliner, which joined forces with AXSMarine
of the City of London, is headed up by Hugo
Many shipbroking, chartering and operating
in 2005. AXSMarine’s powerful data sorting,
Rousse, who has relocated from AXSMarine’s
organisations are considering, or have already
processing and sharing technologies transform
Paris office.
migrated,
exchange
Alphaliner’s rich databases into true productivity
messaging platform. About 95% of required
tools. AXS-Alphaliner provides its subscribers
functionality, which has only been available in
with a unique picture of the liner industry,
industry-specific message system offerings, is
unparalleled in its accuracy. Members benefit
configurable off-the-shelf within MS Outlook.
from features such as Vessel Fixtures, Sales
to
an
MS
Outlook
& Orderbook, forward open Vessel Positions, and Vessel Descriptions, as well as daily news
Free Distance Table
updates, searchable news archives, a weekly
Bucking the market trend, AXSMarine is now
newsletter and a whole series of very detailed
providing the industry with a free distance table
market reports and statistics.
from its public website. Stephen Fletcher draws attention to the fact that there were a couple of ‘free’ alternatives available on the market
AXSTanker
which began charging last year. “Our distance
AXSTanker is a set of up-to-date knowledge
table has been integrated within our products
databases and high performance interactive
for more than five years and it has never been
tools designed for the specific needs of
our intention to charge for the service,” he
competitive tanker brokers. Several hundred
says. Over 6,000 individuals have subscribed
individual shipbrokers use the AXSTanker suite
to this free service since it was launched at the
to indicate the positions of some 8,000 ships,
beginning of June 2008.
update tonnage, prepare position lists, or consult the tanker register, port database and distance tables. The exclusive membership of tanker
For further information, please contact:
AXSS&P
brokerages votes to approve the admission
AXSMarine Headquarters
AXSS&P is the first AXSMarine product to
of any new applicant. The recent and much-
80 rue Taitbout
maintain the common platform theme, but this
lauded additions to AXSTanker are AXSTanker
75009 Paris FRANCE
time, without providing a sharing capability
and Gas Calculators, which are tools allowing
Tel: +33 1 53 43 05 70
between different clients. Encompassing all of
brokers and charterers to stop making all their
their standard search and database features and
calculations by hand or Excel.
AXSMarine Pte Ltd
many more, AXSS&P allows users to override
10A Trengganu Street
technical specifications, add their own vessels,
Singapore 058464
incorporate their own proposal templates, and
AXSMarine
importantly the system was designed with full
AXSMarine believes it needs to be where its
integration to MS Outlook, allowing users to add
customers are, which is why it has built up a
AXSMarine Limited (London)
e-mails and attachments directly to vessels in
strong presence in the core shipping and broking
60 Cannon Street
the database.
centres around the world. Established in London,
London, EC4N 6NP
Conversely, users may retrieve e-mails and
Paris, and Singapore, the company is setting its
Tel: +44 207 002 1089
attachments directly from the AXSS&P database
sights on the Americas in 2011. AXSMarine
– ultimately reducing the need to search and
has been present in Asia since it opened an
E-mail: commercial@axsmarine.com
search e-mail archives.
office in Singapore in early 2007. Incorporated
MSN Messenger: support@axsmarine.com
in 2008, AXSMarine Pte. Ltd. manages product
Yahoo! Messenger ID: axstanker
60
theBaltic June 2010 www.thebaltic.com
Tel: +65 6225 3115
Maritime security
Policing the seas A long-term solution to the piracy problem is a long way off, but assistance and training for crews and owners is becoming more widely available
T
he figures tell their own story. Last year, there were a total of 406 armed attacks against vessels around the world, according to figures from the
International Maritime Bureau (IMB), which monitors and reports on piracy and armed robbery against ships. Bulk carriers appear to be particularly vulnerable, perhaps because of their relatively slow speeds, with a total of 109 vessels coming under attack. Containerships, general cargo ships and tankers also proved popular targets, but pirates will strike at almost anything – up to and including the rather illconsidered choice of naval vessels, on occasion. Simon Fordham, a crisis management expert at Begbies Traynor, said in a lecture to Lloyd’s of London that the maritime industry was undoubtedly facing a piracy crisis, with no sign of resolution or impact reduction for some time to come In the first quarter of this year alone, 69 separate attacks were reported. Of these, 18 were carried out in Somalia, 12 in the Gulf of Aden, and three in the Red Sea, clearly showing that the East coast of Africa remains a hot spot for armed attacks on vessels, despite increased coverage from naval patrols in the area. The piracy problem in the area has become apparent over a very short period of time, with attacks in the Gulf of Aden alone increasing from 13 in 2007 to 116 last year. Earlier this year, it was widely reported that Islamist forces have been moving in on the Somali coastal towns used as a base for pirate operations. However, this may do little to reduce piracy, as commentators were suggesting that the move was motivated by a desire for a cut
Naval patrols reduce attacks – but they can’t be everywhere
62
theBaltic June 2010 www.thebaltic.com
Maritime security of the lucrative ransom business. Control of the
forces and shipowners and operators alike is
Preventative measures
piracy business may change, but any reduction
being diminished by the inability to bring pirates
Some operators have been routing vessels
in attacks is likely to be short term only.
to justice and to prevent them from returning to
around the southern coast of Africa, rather
It is obviously not altogether impossible to
operation after capture and release, and by the
than face the Gulf of Aden and its approaches.
combat piracy. Five years ago, all the attention
recent extension of piratical activity far into the
Routing software now features an ‘anti-piracy’
was on the increased amount of attacks in
Indian Ocean.
option that avoids high-risk waters. However,
Indonesian and Malaysian waters, in particular
as the price of oil – and of bunker fuel – rises
the Straits of Malacca. While piracy remains
again, the risk/benefit ratio of the longer trip may
a problem there, attacks in Indonesia were
Industry petition
be changing once more, particularly considering
down to just 15 last year, compared to 79
Reflecting what Intertanko’s chairman Capt
that even with the current high risks of piracy,
five years ago, while attacks in the Malacca
Graham Westgarth recently called “a signifi-
the chances of an attack are still very small
Straits fell from 12 to two in the same period.
cant degree of frustration”, Intertanko is urging
compared with the total number of vessels
However, tactics used to reduce piracy in this
governments to step up their involvement and
transitting the area. Other vessels, such as
region – where attacks are mostly confined to
commit to the maintaining of international sea
those involved in the World Food Programme,
restricted waterways – may not be suitable for
lanes with concerted efforts to find real and
are operating to ports directly within the danger
the vast areas of the Indian ocean, where naval
workable solutions to enable them to fight piracy
zone. For ships that choose to, or have to,
anti-piracy patrols have been likened to ‘trying
more aggressively and effectively by:
operate in these waters, there are a range
to police the entirety of the USA with just one
• increasing naval and other appropriate mili-
of strategies that can be taken to mitigate
patrol car’. And the extent of the waters in which
tary support, and by adjusting their rules of
the risk of attack – or defend against it when
Somali-based pirates are operating seems to be
engagement for naval forces to allow naval
it comes.
ever-widening, with attacks now taking place in
forces to tackle piracy head-on (at present,
One possibility is the introduction of a
the Indian Ocean, 400 miles offshore and more.
many countries are only allowed to tackle
professional escort, either armed or unarmed.
A further problem is the lack of precedent on
pirates if an attack is actually in progess,
According
rather than imminent);
SecureWest International, which provides a
what to do with pirates when they have been
to
Clare
Williamson-Cary
at
captured. As Somalia is lacking the infrastructure
• ensuring effective powers are granted and
range of maritime security training and services,
to deal with them, in some cases, pirates have
are in place to arrest, detain and bring to
demand for SecureWest’s escort services has
been captured, only to be released again.
justice all those who operate on the high
increased significantly over the past two years.
According to a spokesman for Intertanko, the
seas outside the law.
This is not solely due to the well publicised
effectiveness of the measures taken by naval
events in the Gulf of Africa, she says. “All manner
Lower your risks on the high seas.
Talk to maritime security experts BGN Risk about your next transit to ensure your people, your cargo and vessels, and ultimately your profits, are protected at sea. Call industry leaders Liam Morrissey or Simon Fordham on +44 (0)207 398 3800 for: • Security Planning and Management • ISPS Code Compliance
Call for maritime security advice now on:
+44 (0)207 398 3800
• Anti-Piracy Operations • Crisis Management
Or visit our website: www.bgn-risk.com
www.bgn-risk.com
0310 BGN Risk Ad.indd 1
14/4/10 15:56:06
theBaltic June 2010 www.thebaltic.com
63
Maritime security
TRAINING & AUDITING
COUNTERMEASURES & RESOURCES
CONSULTANCY
INTELLIGENCE
Shore Based Management Training
Propeller Arresters™
Flag State and Industry Bodies
Command Team and Crew Training
Banners
Management Board
Confidential - Masters 2 Masters Intelligence Service (C-M2M)
Suez Crew Competence and Vessel Hardening Audit
Handbook, DVD, Bridge Cards, Risk Assessment
Fleet Audit
Ship Support Service
Legal and Insurance
Merchant Maritime Warfare Centre info@mmwc.org
64
+44 (0)845 26 99 801
theBaltic June 2010 www.thebaltic.com
www.mmwc.org
Maritime security of threats are becoming more visible to the end users of cargo as well as vessel operators, who often are already under pressure to be efficient and first to market in the current economic environment. As such, many shipowners and end users are working together to build a more comprehensive approach to ensure their cargo makes it securely from point A to point B.” The company expect the popularity of escort services to continue, she explains. This is primarily for two reasons: “For one, the area of operation for piracy is spreading as the pirates try to stay one step ahead of the international military response as well as ‘upstart’ pirates, who though not always as organised, are looking to get their share of the ransoms. Furthermore, there has been a notable broadening in the number and types of vessels with the need [for security teams]. Formerly, if you had a higher freeboard or could maintain a decent speed, piracy was often low on the list of concerns. But with the changing and ever-more sophisticated tactics of pirates, emboldened by the potential rewards on offer, all vessels run the risk of attacks.” In one such operation, SecureWest provided an escort vessel for a tug transitting the Gulf of Aden with a vessel in tow. Operating at just five knots, the convoy was well below the recommended speeds for vessels passing through the transit corridor, making it very vulnerable to potential attack. Both the vessel operator and the insurance company were keen to have robust security provision. Due to limited space on the tug, it was decided to use an escort vessel, rather than an onboard team. The escort vessel, carrying an armed security team and supported by rigid inflatable boats (RIBSs), would establish a 24-hour security picket screen around the ‘convoy’. In order for a screen of this type to be successful, it is vital that both master and crew of the vessel are confident with the concept and workings of a security screen. In this case, the leader of the security team made immediate contact with the master of the tug and gave a brief on maritime security measures, carried out a security risk assessment and discussed rules of engagement. An escort security plan was drawn up and agreed between both vessel masters, and anti-piracy briefs and training for the Master and crew were given. Training and drills including table top and practical exercises, took place throughout the voyage, so that each member of the crew was confident in their role during any type of incident. “It is important that all personnel understand the risks they may face and the mitigating measures to defend against it. Experience has also shown that crew understanding and involvement engenders a
Danger zone?
theBaltic June 2010 www.thebaltic.com
65
PROTECT
YOUR
ASSETS MANAGE
YOUR RISKS
www.bergenrisksolutions.com
Maritime security greater degree of assurance and confidence,”
Education
says. Piracy, however, is not just a concern for
says Clare Wiliamson-Cary.
Since the introduction of the ISPS code, it has
those traversing known flashpoints such as the
Regular security alerts to both vessels on
been obligatory for ships to have a security plan
Gulf of Aden. “Attacks need not involve hostage
incidents occurring in the region of the transit
in place, with a designated officer responsible
situations to cause severe disruption. Even petty
allowed the convoy to change the passage plan
for ship security. However, for those operating
theft can impose a financial burden on maritime
during the transit to avoid an area where there
in high-risk waters, additional training can be
operators in the form of business interruption
had been several sightings of suspected pirate
necessary, both for the security officer and for
and multiple insurance claims,” she warns.
mother-ship activity in the preceding two days.
the crew as a whole. “Maritime crews cannot
Education is as vital to minimize threats of this
be expected to know instinctively how to react
kind as it is to deal with the more dramatic and
in extreme conflict situations,” emphasise staff
highly publicized piracy issues.
Training is crucial
at MAST Security, which provides advice and
Posting guards on ships is a controversial
training both for crews and for professionals
measure, however, and one that not all security
looking to work in the maritime security field. The
experts support. Ben Jackson, head of security
company now offers a special course combining
at MIG Security, for example, says the company
the three day Ship Security Officer with one day
takes the view that regularly providing armed
of anti-piracy training.
escorts “would be an alarming escalation of
According to Clare Williamson-Cary, training
the situation that would put at risk the most
options in the field of anti-piracy include, but are
vulnerable vessels and crews attempting to earn
not limited to anti-piracy protocols for the vessel/
a living at trade at sea”.
crew, crisis management planning for shoreside
“Passive measures can be the only way
personnel, and the integration of technologies
forward if we are not to see huge escalation in
into the security structure. She emphasizes
casualties of the piracy situation in the Gulf of
the need to tailor the training to each individual
Aden,” warns MIG’s managing director Marcus
company: “Assessor skills are as critical in our
DiVincenzo. NAVFOR and other naval vessels
staff as the ability to deliver the course, because
already provide efficient and professional cover
often the shipping companies will know they
in the region. Instead, MIG advises owners to
need the training, but not always be aware
concentrate on providing crew with anti-piracy
where their biggest weaknesses may lie. Prior
training that will give crew the experience and
to the training, the trainer will assess the client’s
ability to read situations, avoid attack if possible,
goals and needs and make recommendations
and react correctly where an attack cannot be
to ensure the training is not only a good fit for
avoided. The answer to the piracy problem “is
them, but also is crafted in such a way as to
as much about thought as countermeasures,”
offer long term benefits to the company and not
Jackson says.
just a paper certificate to hang on the wall,” she
The industry steps in
ernments to do everything possible to protect
correct response all have their part to play in
Enough is enough! Governments must act now to fight piracy
protecting individual crews from pirate attack,
Almost every day seafarers are being kid-
ships at risk of attack by pirates by:
ultimately, it will take intervention at a much
napped and exposed to an increasing risk of
• dedicating significant resources and con-
higher level to make the seas safe around
injury or even death.
While technology, training, preparation and
the world. Against this background, a group
Every day seafarers transport the world’s
of organisations across the industry launched
goods through areas where the risk of pirate
the ‘enough is enough’ campaign in May this
attack is increasing.
year. The campaign, backed by an online petition, aims to persuade all governments to
Every day seafarers’ families are suffering worry and uncertainty.
commit the resources necessary to end the
Every day the chances of attracting people
increasing problem of Somalia-based piracy.
to jobs at sea – on which all our economies
The campaign backers hope to gather at least
rely – are shrinking.
half a million signatures to the petition, which
Every day shipping companies and their
will be presented to governments by IMO World
insurers have to pay for increasing anti-piracy
Maritime Day, September 23.
measures, extra fuel and ransoms – costs that
The
campaign
is
being
backed
by
Every day the risk of a major ecological
InterManager, International Group of P&I Clubs,
disaster due to an oil spill caused by piracy
Intertanko, ISF, ITF, IUMI and SIGTTO, as well
increases.
unions worldwide.
the thousands of seafarers and the hundreds of
certed efforts to find real solutions to the growing piracy problem; • taking immediate steps to secure the release and safe return of kidnapped seafarers to their families; • working within the international community to secure a stable and peaceful future for Somalia and its people.
are eventually passed on to the consumer.
BIMCO, ICS, IFSMA, IMEC, IPTA, Intercargo,
as national shipowners’ associations and trade
We, the undersigned, urgently call on gov-
Every day the chances of a recovery in the world economy are being jeopardised by this threat to world trade.
theBaltic June 2010 www.thebaltic.com
67
@
For more information on these companies and to view this publication online using the latest Page-Turning technology, visit:
www.thebaltic.com
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HEMPEL AS
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INDEPENDENT MARITIME SECURITY ASSOCIATES
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INDIAN REGISTER OF SHIPPING
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INTELSAT
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International Maritime Acquisition & Security 5th & 6th July 2010, Asia Pacific iMAs 2010 is a unique event addressing the growing need for sophisticated naval equipment in the realm of the global maritime community that is tailor-made for an international audience of high level government procurement and security personnel from the naval and maritime enforcement agencies.
Commodore Ranjit Rai, Indian Maritime Organization Vice President David Mugridge, Dalhousie University Maritime Security Consultant
Expand your knowledge on current programs of the Asia Pacific naval forces
Rear Admiral Douglas McAneny, US Pacific Fleet Commander Submarine Forces
Increase your understanding of Asian naval plans and acquisition strategies to prepare yourself for the future
Captain Andre Katerinc, South Africa Navy OPV Manager
Be at the forefront of new and innovative maritime surveillance technologies while hearing from our influential international counterparts on methods to augment cooperation & interoperability
Terence Trathen, Royal Australian Navy Combat Systems Interoperability Manager, Directorate of Naval Warfare Systems Pottengal Mukundan, International Maritime Bureau Director Captain Toni Fonokalafi, Tonga Defense Services Chief of Defense
ADVISORY PANEL
FIND YOUR REASONS TO ATTEND
Commodore (Retd.) R S Vasan, Indian Navy / Center for Asian Studies Head – Strategy & Security Lt. Commander Wade Gough, US Coast Guard Chief of Incident Management Division Ed Buclatin, US European Command Director of Public Affairs Dr. Pola Singh, Maritime Institute of Malaysia Director General Rear Admiral Ferdinand Golez, Phiippine Navy Flag Officer in Charge Captain Haji Mamu Bin Said Alee, Malaysian Maritime Enforcement Agency Director of Maritime Policy and International Relations Rear Admiral John F Sigler, Near South Asian Centre for Strategic Security Studies Director Stefan Alfredsson, Icelandic Maritime Administration Head of Maritime Security Dr. Eric Frecon, S. Rajaratnam Institute of International Studies Post Doctoral Fellow Joshua Ho, S. Rajaratnam Institute of International Studies Senior Fellow Lt. Colonel (Retd.) Joshua Ho, Republic of Singapore Navy / S. Rajaratnam Institute of International Studies Senior Fellow
Benchmark your performance against other regional port and custom authorities Professional line-up of experienced regional & international speakers to give an in-depth insight of the maritime outlook in the Asia-Pacific region Focus on key strategic topics that need action to be implemented to stimulate further security in the maritime sector of the Asia Pacific region Unique ‘by invitation only’ forum to exchange ideas between both authorities and service providers Unparalleled access to high profile authorities in both the government and private sectors of Maritime security, border Patrol, Coast Guards, Port Authorities and Naval Forces in the Asia Pacific. Unmatched networking opportunities with Defense Ministers, Naval officers, solution Providers, Decision Makers, industry Analysts and think tank experts
FIND YOUR REASONS TO ATTEND Job Function: Naval Officers, Coast Guard Officers, Port Security Officers, Government Officials, Defense Officials, Attachés, Procurement Experts, Ransom Negotiators, Academics, Industry Experts, Business Development Directors, Marketing Directors and Project Directors. Industry Classification: Naval Forces, Coast Guards, Maritime Agencies, Port Authorities, Departments of International Affairs, Ministries of Defense, Civil Defense Authorities, State Government Authorities, Naval Electronics & Avionics, Radars, Systems Integrator, Electro Optics, Ship Builders, Aircraft Manufacturers, Original Equipment Manufacturers, Distributors, Management Consulting Services, Education Services, Satellite Telecommunications, Space Research and other technology providers.
For more information please contact: Natasha Jiandani tel.: +91 9844766782, e-mail: natasha.jiandani@fleminggulf.com
Corporate viewpoint MAST
MAST Maritime Asset Security and Training Ltd
M
company with a strong international
Comprehensive security support
Piracy concerns & commercial maritime security capability
presence and offices in Malta, UK,
Different vessels with distinct uses, whether
It has been estimated that in 2008/9 pirates
Djibouti, Oman and South Africa.
commercial or private, operate on a myriad of
gained in excess of $100 million through ransom.
AST is a leading maritime security
The company offers comprehensive advice
potential routes and require their own particular
Whilst it is true that the majority of the global
and cost effective security support across a
bespoke security solution. To meet such diverse
attacks on vessels are committed by Somali
wide spectrum of maritime operations, including
needs, MAST provides a comprehensive,
pirates, it is also clear that the problem is not
commercial shipping, oil and gas exploration
integrated security service for its clients within
isolated to the Gulf of Aden or Indian Ocean, and
and private yachts.
the maritime community.
is present in others areas of the globe, including
MAST also has a security design and
South East Asia, West Africa and parts of South
installation department and we are involved
Our key service areas include:
America. The trend is also that such attacks are
in numerous large newbuilds and yacht refit
• Commercial shipping security
moving further and further from the coast.
projects across Europe.
• Unexploded Ordnance Surveys / Disposal
MAST’s mission is to ensure that we provide
This presents a significant and continuing
• Yacht security
challenge to the shipping and international
appropriate support to allow our clients to
• Design and installation of security systems
community.
concentrate on their primary objectives. Our
• Intelligence support
support is delivered through our extensive
• Training
at sea and the changing political environment,
experience and determination to operate to the
• Hijack/Kidnap and Ransom (K&R) Response
more shipowners and charterers are being
highest operational and ethical standards.
Service • Insurance / research and support
70
theBaltic June 2010 www.thebaltic.com
In response to the increasing threat to assets
directed to provide for their own security. Private security companies provide part of the answer to
Corporate viewpoint MAST the problem, when used in conjunction with the
of piracy in the Indian Ocean, thus ensuring
The use of firearms
support offered by the International community
support throughout the region.
There are many valid arguments for and against
MAST is also a security advisor to Watkins
the carriage of firearms on ships and a number
Lloyds of London Insurance Syndicate, which
of key factors that must be addressed before
In view of the increasing number of piracy
is part of Munich Re, the world’s largest insurer.
a decision is taken, including the legalities and
attacks, clients need a security partner they can
Our consultants also have a track record
completely rely on. For over four years, MAST
of extricating ships and crews from arbitrary
MAST provides armed security where the
has been delivering a responsive, cost-effective
detentions and deadlocked situations in many of
law permits and if it is appropriate to the threat.
security service.
the most challenging places around the world.
and the various naval task forces operating in the region.
MAST is currently in support of in excess of
We have a dedicated response capability
40 shipping clients ranging from specialist tug
with on-scene advice and negotiation, dealing
and tow, dredging and towed array operations
with ransom delivery arrangements to assistance
to tanker and bulk carrier operations.
with the vessel’s recovery and crew repatriation.
rules of engagement.
In broad terms, the carriage of firearms on ships depends on several factors including: • The law of the country in which your ship is registered and flagged • International Law (Law of the High Seas)
MAST can provide onboard protection teams
Ship hijacks and arbitrary detentions present
who will sail with your ship or yacht in areas
a unique challenge to marine underwriters and
The inherent right of self defence exists as
of high risk. Our men are all British ex Royal
shipowners as no two hijacks are quite the
a principle in most jurisdictions and the use
Marines or of equivalent experience and once
same. There is always a complex web of
of force in these unique circumstances is an
on board will use their training and skills to train
different local and commercial interests at play.
extension of that principle.
your crew and increase the defences of the
Whilst never losing sight of the core issue
With careful research and clear operating
ship. Depending on the threat, insurer approval,
of crew welfare, MAST will firmly represent
procedures, including Rules of Engagement
peculiarities of jurisdiction and flag state, this
underwriters’ or shipowners’ interests during the
based on a proportionate and reasonable
dedicated team can provide armed protection
process of negotiation and subsequent claim.
response to the threat, it is arguable that the
during a passage.
With the general focus of shipowners being
• Territory the ship is entering.
carriage of firearms represents a pragmatic
Our subsidiary companies, MAST FZCO
the safe release and welfare of the crew, MAST
in Djibouti and MAST Salalah in Oman are
is acutely aware that underwriters have an
strategically located to enable a swift response.
added duty to ensure that claims are properly
of
We can arrange for the MAST transfer boat
scrutinised, particularly since this class of
governed by their charter on the use of force.
to rendezvous with your ship outside of Port
insurance involves specific issues of moral
www.bapsc.org.uk
Limits, thereby minimising any deviation and
hazard.
delay.
decision that can sometimes be justified. MAST are members of the British Association Private
The
Security
company
Companies
operates
to
and
are
exemplary
MAST‘s negotiation department is led by a
standards and is in full support of concerted
MAST has permission to operate from
former P&I Club Director and Somali specialist
efforts by the UK government and the BAPSC
Djibouti and Salalah with firearms, as well as
who have conducted 11 negotiations on behalf
to increase transparency and regulation of the
other countries surrounding the affected area
of shipowners.
industry.
Private Security: an effective partnership and appropriate response It is becoming increasingly clear that private security companies in partnership with the international coalition authorities and the shipping community can ameliorate the effect of the current scourge of piracy. Solving the problem of piracy, however, remains a political conundrum for which there does not appear to be any medium-term evidence of a solution.
For more information, please visit: www.mast-commercial.com
theBaltic June 2010 www.thebaltic.com
71
MIG y Securit
MIG Security have taken the skills learnt within the Royal Marines and placed them in the commercial shipping sector. We are thinking men and we feel you don’t need to hide behind the barrel of a gun. With a gun you have one option; with thought and experience you have safe secure passage. We use the principles of defence that have been used for the last 100 years within the British Forces:
MIG supply the complete solution from survey of the fleet and provision of the addition to the Ships Security Plan, through to the installation of the defence equipment and transit security management. The Security team will ensure the ship is made fully secure before entry into any dangerous areas, whilst also ensuring the ship’s Captain and crew are fully aware and happy with the operation throughout.
• • • • • •
The MIG security teams are made up of very experienced ex Royal Marines Commandos, used to operating in the areas in question.
Deception All round defence Mutual support Reserves Offensive spirit Depth
Team Leaders • 22 years’ experience within Royal Marines • Extensive commercial security experience • SSO qualification as a minimum • Complete EU NAVFOR understanding • Competent in report and brief writing • Medically trained
With our partners we supply the full complete solution. Our insurance partner will give a large discount with us on board and review your fleets insurance. Our K & R partner will be on standby for no retainer. We have packaged a deal that can’t be beaten, and with the use of our experienced trainers on board delivering the C.A.P.T. concept, your cost of security will go down as more of the crew are trained.
Security Team Member • More than eight years’ experience within Royal Marines • Commercial security experience • Fully Trained in Anti Piracy drills • Medically trained
For more information please contact us on: Tel: 01395 224586 0044 1395 224586 Website: www.migsecurity.com Info@migsecurity.com
Corporate viewpoint MIG Security Ltd
MIG Security Ltd F
ollowing many piracy attempts, some
an attack correctly, with what support they have
successful, and all very costly, the secu-
to do it. We teach and practice the principles
rity thought process needs to shift with
of defence, deception, all round defence and
respect to anti-piracy operations. The
mutual support etc. The offensive spirit goes
particular situation in the Gulf of Aden (GoA) has
along with the confidence that there is a simple
brought together two industries, namely the glo-
answer to the problem and it’s as much about
bal shipping industry and the security industry.
thought as it is countermeasures.”
These two may well make awkward bedfellows
Passive measures can be the only way
for a number of reasons but chiefly a difference
forward if we are not to see a huge escalation in casualties of the piracy situation in GoA. The
in the approach to piracy and pirates. Many security companies see the increasing
security measures advocated here are available
problem of piracy as the next goose to lay the
to all, relying on the will and diligence of a crew,
golden egg after the slowing of demand for
rather than how many guns the company can
their services in Iraq and Afghanistan. They talk
afford to buy.
of weapons and gunboats to escort a group
• Ben Jackson – 23 years spent within the British Royal Marines Commandos. Ben
of vessels, in much the same way, but far less efficiently, than the EU NAVFOR and others
crews attempting to earn a living from trade at
has carried out many transits through the
currently do. The people caught in the middle
sea,” says Ben Jackson, Head of Security at
areas mentioned and has foiled three pirate
of all of this are the crews of the ships making
MIG Security. “The pirates’ modus operandi at
attempts; this experience forms the basis of
their way through these dangerous waters. At
the moment is only to take control of the vessel
present, the aim of these pirates is to take a
and not harm the crew; if the rogue so-called
• Marcus Di-Vincenzo – 19 years’ service
Maritime Security Officers carry on
within the British Royal Marines Commandos,
down the weapons route, the
with service in Navy boarding parties across
ship and its crew hostage in order to extract a ransom from the shipping company that owns the vessel.
views of the pirates will swiftly change.”
Currently, the crews of seized
the concept of C.A.P.T.
the globe. MIG Security Ltd is a specialist security
ships are being well cared
MIG have developed a
company based in Devon that services a
for and it is in the interest
method which empowers
worldwide capability. Most of the operators
of the pirates to do this,
the Masters and crews to
employed within MIG are ex-Royal Marines,
but how would the situation
take responsibility for the
holding vast experience within the piracy arena,
defence of their ship and
differ if the wild card of
livelihood, which puts them
firearms is introduced? How
many
people
not
engaged in piracy might be killed or injured by ill-disciplined security officers? What
from service on board naval ships in the problem areas of the globe.
under no extra risk and makes a successful passage much more likely. Security of a tanker has to be put down to
Please forward enquiries to: Marcus Di-Vincenzo
kind of retribution could be expected on crews
knowledge and team effort; with armed guards
01395 224586 / 00447813 850478
of vessels successfully hijacked, if pirates are
on board, the options are very quickly narrowed
E-mail: Marcus@migsecurity.com
killed in the fire fight?
down to force instead of early detection, a
Website: www.migsecurity.com
“We take the view that this would be an
wiliness to resist and, lastly, an ability to defend.
Info@migsecurity.com
alarming escalation of the situation that would
“C.A.P.T. (Crew Anti Piracy Training) is a
put at risk the most vulnerable vessels and
new dynamic concept to the world of maritime security, which will give crews the experience and ability to read situations using all the resources at the team’s disposal,” advises Marcus Di-Vincenzo, MD of MIG Security. “It’s the inability and lack of these skills that causes incorrect decisions and offensive actions, putting the ship and all on board in danger. “The aim of C.A.P.T is to launch the crew into passage without any wasted time or expense, with the minimum of fuss, knowing what they have to do to avoid piracy attack, how to react to
theBaltic June 2010 www.thebaltic.com
73
Corporate viewpoint Securewest International
Is your security secure? E
very day billions of dollars worth of goods
of ‘Special Forces’ teams will pale if it becomes
details of vessel positions. But what about the
are shipped across the world’s ocean.
apparent such personnel have never set foot on
personnel who might be monitoring on their behalf
Threats to this supply chain have led to
a ship before! Security should not be regarded
and what vetting have they under gone? Our
an array of initiatives and legislation that
as a noun but instead a whole ship activity, and
own internal policy is simple. All candidates must
require vessel owners and port authorities to com-
security teams must have the experience to work
demonstrate an exemplary service record and
ply with a wide range of regulations: The Maritime
effectively with a ship’s Master and crew and
the company also completes enhanced criminal
Transportation Security Act (MTSA) and its interna-
instil confidence that will allow them to cooperate
records bureau checks for each candidate as
tional counterpart, the International Ship and Port
effectively in emergency situations.
further back-up.
facility Security Code (ISPS), the Transportation
Effective vessel security is about a range
We have also invested considerable time and
Workers Identification Credential (TWIC), and the
of measures to create layers of barrier against
effort to both seek and achieve official approval
list goes on.
potential threats. Vessel hardening and deterrents
from independent organisations such as the
The recent sustained pirate activity in the Gulf
– both lethal and non-lethal – a carefully crafted
MCA and Det Norske Veritas (DNV) to provide
of Aden (GoA) has rekindled the debate about
and tested security plan, anti-piracy training and
services such as security training and vessel alert
the role of private security firms in the maritime
drills for the crew, crisis management training for
monitoring for clients.
sector. The message being given is that while
key personnel, thorough route threat assessments
But such standards are far from universal.
Coalition Task Forces have a role to play in the
prior to a voyage and ongoing intelligence with
To a great extent, shipping companies have
defence against pirate attack, the commercial
24-hour vessel monitoring during a transit all
no yardstick or terms of reference by which
shipping sector must also make provision for its
have a important part to play. It is the provider
to measure security companies, something that
own security.
with sufficient depth and experience of service
cannot be satisfactory in a world where global
But, despite all that is potentially at stake,
provision that will be best placed to offer the most
prosperity is predicated on secure seas.
it seems remarkable that those entrusted with
appropriate solutions – if you only have riding
The time has surely come for leading maritime
security are not necessarily subject to the same
teams to sell, you are only going to recommend
regulatory bodies and , if necessary, governments
rigorous checks and balances that are placed on
riding teams!
to implement a uniform, international maritime
vessel owners and port operators. Nor is there
Choice of security personnel is therefore critical
security provider ‘gold standard’ to assist the
any accepted standard by which such provision
and at Securewest International we have frequently
maritime sector as they judge who might be
can be judged.
found that in security ‘hot spots’ around the globe
suitably competent to provide the services it needs
It is, perhaps, not surprising that a company
bribes are commonplace amongst local ‘security’
to achieve a secure working environment.
which has served the maritime community for
companies and these guards are often ‘bought’
over 22 years should express some concern at
or coerced into revealing vessel plans or allowing
Author – Clare Williamson-Cary, CEO Securewest
the number of inexperienced start-up companies
stowaways to access the vessel. For the sake of
International.
that have sprung up in the past couple of years.
the lives of all crew, it is vital that those involved in
All eager to cash in on the increased demand, new
providing maritime security are properly checked.
Securewest International has been specialising in
companies rapidly emerge, only for some to ‘jump
But it is not just on the domain of manned
ship’ (in at least one case, literally!) just as quickly,
guarding that focus should fall. There should be an
of expertise connected with the provision of onboard
and potential customers would do well to examine
internationally agreed set of standards and service
or in-port security officers, escort vessels for high
very carefully the claims of extensive experience
delivery that must be met by anyone offering
risk transits, vessel hardening consultancy and anti-
from newly incorporated companies.
maritime security services to vessels or maritime
piracy training, vessel tracking and SSAS monitoring
But longevity alone will not guarantee relevant
facilities. This should include a set standard for
through a 24/7/365 Maritime Assistance Centre, crisis
wisdom. Securewest International specialises
training, rules of engagement – including use of
management training and K&R, ISPS code related
in just maritime security and for good reason.
force – reporting procedures and standards of
regulatory compliance programmes and audits, and
The challenges of operations in the maritime
vetting of security officers and their administrative
DNV/MARAD/MCA/TRANSEC approved training.
environment are very different to those of land-
support.
maritime security for over 22 years, incorporating areas
based activities and an impressive track record in
Personnel vetting is particularly important.
Iraq does not necessarily translate into experience
Vessel owners have often expressed some
and capability on board ship. Military training
suspicion regarding tracking initiatives and
per se is no guarantee that personnel have the
information sharing websites because they are
For more information, visit:
necessary skills to operate at sea and boasts
concerned about who might be able to access
Website: www.securewest.com
theBaltic June 2010 www.thebaltic.com
75
Environment
Achieving efficiency Establishing an energy efficiency design index may take a while – but designs for energy efficient ships are increasingly popular
T
he reduction of emissions from ship-
EEDI shall be equal or less (eg more efficient)
efficiency index could actually make larger trans-
ping continues to be a hotly debated
than the required EEDI, and that the required
portation systems less efficient in operational
topic at IMO, but one where there
EEDI shall be drawn up based on EEDI baselines
terms and would make building certain types of
sometimes seems to be little progress.
and reduction rates yet to be agreed. However,
ships impossible.
While debate continues on the question of
there appears to be some way still to go
market-based instruments and an emissions
even to get agreement on the technical issues
trading scheme, the establishment of an energy
surrounding EEDI.
Building a better bulker
efficiency design index (EEDI) for ships is one
While there is still much work to be done on
of the measures which seems most likely to be
establishing the technical basis for an EEDI, a
No simple solution
number of shipowners and naval architects are
The IMO’s Maritime Environment Protection
According to a report commissioned by
coming up with innovative solutions to increase
Committee (MEPC) decided at its most recent
EMSA from Finnish maritime engineering firm
efficiency and reduce emissions ahead of the
meeting in March to set up a Working Group
Deltamarin, it is essential to identify the ship
requirements.
“to build on the significant progress that had
types where EEDI represents a comparable
Deltamarin itself has been working on
been made during the meeting on technical and
measure of efficiency when evaluating the
standardised bulker designs for handymax and
operational measures to increase the energy
applicability of the index.
supramax vessels that it says shows remarkable
implemented
efficiency of ships”. The Working Group will
Deltamarin believes that an EEDI would
fuel savings. “Barry Rogliano Salles suggested
report back to the Committee’s next session
mainly lead to power limitations for new ships.
in 2005 that we should design a standardised
This, in turn, would lead to standardising design
bulk carrier as the market was booming,” said
MEPC
speeds at a certain level depending on ship
Mikko Mattila, sales and marketing director at
agreed on the basic
type and size. This approach could be feasi-
Deltamain. The company decided to concentrate
(MEPC 61), in September 2010. In
the
event,
concept
that
a
ble for large ocean-going cargo ships
on smaller vessels as larger vessels such as
vessel’s
attained
which have uniform design criteria,
capesizes tend to be better designed and more
such as large tankers, bulk carriers,
energy efficient.
containerships and LNG carriers.
Ironically, the designs were finished in late
However, the system would be
2008, just as the market crashed, and ordering
too simplistic
fell to almost nothing. However, the designs are
for complex
now in the model testing phase, and results to
ships or ships
date may encourage owners to take a closer
in
look. Deltamarin claims that they show an
specialised envi-
“unheard of” daily fuel consumption that is “way
operating
includ-
ahead of the competition” – offering average
ing passenger ships
savings of 26% on fuel consumption, although
ronments,
ship-
it says that savings of up to 45% are possible.
ping in general. Limiting
One-third of the gain in this efficiency comes
the power or speed of
from changes to the hull geometry, but most
these kinds of vessels
of the propulsion efficiency increase comes
to make them com-
from changes in the rudder design. Changes
ply with an energy
have also been made to the propulsion of the
and
76
short-sea
theBaltic June 2010 www.thebaltic.com
Environment … and a better containership While the Delta-B bulker is almost at the production stage, and Stena’s Airmax design is undergoing tests to establish if it will be a practical proposition, some ships are desgined never to be built – but are intended to stir up debate. DNV, for example, recently launched its new Quantum containership concept, which is designed to offer increased flexibility and greater efficiency. In line with the need for slow steaming that has been a feature of the container sector since the beginning of the shipping crisis, it has a design speed of 21 knots, but can operate efficiently at speeds between less than 10 knots and more than 22 knots. The ship is wider at deck level than at water level, giving a total capacity of 6,210 containers. The need for ballast water is minimised and LNG is introduced as part of the ship’s fuel. Several companies Stena’s test vessel aims to prove the cavitation concept
have been pushing LNG as a possibility for cleaner ship fuel, including Wartsila. However,
vessel, which has a larger propellor diameter
the air when a model is scaled up to full size.
Tor Svensen, president and chief operating
and operates at lower revs than a conventional
According to Stena, building a ship based on
officer of DNV, is quite clear that this is not a
bulker.
normal model tests of a 4 metre long model
design that is meant to go into operation.
In addition, the payload is well above what
would have been very risky.
“Even if it would be possible to realise the
is usual in ships of the same size today, while
Accordingly, Stena has taken the unusual
Quantum within three to five years, this is a
the draft is the industry standard. It is also more
step of building a 15 metre long model, to verify
concept ship designed to stir up a debate
stable in form than most bulk carriers, as it does
that the results achieved also applied on a larger
about shipping innovation. All the aspects of the
not have bulbous bows.
scale. Testing the air regulation system will also
concept design are unlikely to appear in a single
be an important part of a future project.
ship, but certain aspects will be taken further on
BRS is working with several owners, and bids are in from a number of yards, Deltamarin
The model consists of a steel box, containing
a case by case basis. I am convinced of this,” he
said. The design will scale to larger vessels, and
all the equipment, surrounded by a hull made of
said. He refers to the automotive industry, which
vessels of other types, Mattila said. In particular,
fibreglass reinforced plastic. The flat bottom has
has long traditions of introducing new concepts
it believes there is potential for adapting the
a cavity for an ‘air cushion’, which is almost as
as a lodestar for the future development of new
technology to containerships – when people
wide and half as long as the ship.
cars.
start buying them again.
… a better tanker
The air cavity is fed with air by fans and the
Mr Svensen adds: “We all know that the
air is controlled so that the bottom of the air
shipping industry is facing tough times. But now
cushion is in line with the bottom of the hull. Test
is the time for innovation and a focus on new
data is transmitted via a link to a tender boat.
solutions.”
Stena has been looking into the effects of an ‘air cushion’ under the hull to reduce the friction between the hull and the water. The concept involves reducing the ‘wet surface’, ie the part of the hull that is in contact with the water, thus slowing down the ship. This is achieved by means of a cavity filled with air in the bottom of the hull. This means that the water is in contact with air instead of steel plate, thus reducing friction. However, a number of phenomena complicate the picture, including internal wave formation in the cavity, which reduces the positive effect. A balance must also be struck between optimising the air pressure to achieve the greatest possible reduction in resistance and, at the same time, minimising air leakage. Tests in a conventional model basin have indicated energy savings of between 20-30%. However, while it is normal to scale up directly from the test basin model to the actual ship, there is no previous experience of the effect of
Stena’s Airmax from beneath
theBaltic June 2010 www.thebaltic.com
77
Corporate viewpoint Advanced Polymer Coatings
APC’s breakthrough tank coatings MarineLine® 784 for Chemical Carriers and Product Tankers, and new MarineLine® X for Oil Tankers and FPSOs
A
dvanced Polymer Coatings (APC), Avon,
ance coating MarineLine® 784, which is used to
Ohio, USA, is the manufacturer of the
line and protect the tanks of chemical carriers.
well-known and patented high-perform-
Since that time, more than 350 chemical tankers have utilised the MarineLine® 784
MarineLine® was first applied to a chemical
coating system to carry thousands of different
cargo ship in 1994, allowing
types of aggressive chemicals, including the full
the vessel to receive IMO
range of IMO chemicals. Many benefits separate
Class I designation. The
MarineLine® 784 from other types of coatings,
ship immediately started
and also from stainless steel tanks. These
carrying a wide range
benefits include ease of cleaning, assurance
of
cargoes,
of high cargo purity, and flexibility to carry
including methanol, acetic
many different types of cargoes. The market
chemical
acid, and caustics. The
for MarineLine® 784 continues to expand as
coating was based on
more shipowners and chemical producers in
polymer technology the
the industry realise the high performance and
company had pioneered
versatility of this protective coating for handling
for a number of space-age
hazardous cargoes.
applications.
Newly coated MarineLine® 784 chemical cargo tank
78
theBaltic June 2010 www.thebaltic.com
Corporate viewpoint Advanced Polymer Coatings A key benefit is MarineLine® X’s inherent chemical resistance, as the coating is formulated with patented high performance polymers that cross-link together to form a hard, tightly knit structure. A key concern to oil tanker operators that have vessels such as a ULCC, VLCC, Suezmax, Aframax, Panamax, Seawaymax, and FPSO, is the acidified moisture (sulphuric acid) of wet inert gas systems that corrodes conventional tank coatings. MarineLine® X, however, is resistant to acidified moisture, providing a long lasting solution with better corrosion resistance. Unlike chemical tankers where the entire tank surface is coated, MarineLine® X is only coated on the tank top and deckhead areas of the oil tanker, where concerns of acidified moisture are Newly coated
MarineLine®
most prevalent.
784 chemical cargo tank
New MarineLine® X is provided with a semi-
A ‘green’ coating
product tanker carriers trading in clean petroleum
gloss, light blue colour. The coating is offered in
The MarineLine® 784 cargo tank lining system,
products (CPPs), vegetable and edible oils, wine,
five gallon (19 litres) and one gallon (four litres)
developed to protect maritime chemical tankers
biofuels, and any IBC Chapter 18 cargoes.
kits with catalyst.
A new breakthrough for the DPP market
For more information on the MarineLine® 784
business environments. The technology is based on a tightly knit, cross-linked organic-
Today, Advanced Polymer Coatings is making
contact:
inorganic polymer structure that creates a
a foray into the oil tanker market with a new
Advanced Polymer Coatings,
nearly impermeable barrier. The coating resists
coating, MarineLine® X. Donald J. Keehan,
Avon, Ohio 44011 USA
chemical attack from a wide range of aggressive
APC Chairman, explains: “Using our extensive
Tel: +01 440 937-6218
cargoes and assures product purity from port to
background in the marine tank coatings industry,
Website: www.adv-polymer.com
port, virtually eliminating tainted cargoes from
we studied the oil tanker markets for several
occurring, a problem at times with conventional
years, working to develop
coatings. This is a real plus for the environment.
the proper tank coating
In addition, the extremely smooth, hard,
system for their specific
slick surface of MarineLine® 784 makes
needs, which is different
tank cleaning an easy process. During port
than those of chemical
changeover, no extensive cleaning chemicals
tankers.
are needed to wash the tank walls, thus greatly
MarineLine® X – a coating
reducing the use of cleaning chemicals, requiring
that offers much better
less fuel consumption for cleaning equipment,
performance and versatility
and lowering emissions, all excellent green
for oil tanker operators
advantages. Faster cleaning also leads to prompt
than conventional phenol
turnaround, so chemical carriers can go back
epoxy linings which have
into service quickly, maximising the usage of the
limitations.”
and their cargoes, delivers on ‘green’ principles that have become so necessary in today’s
vessels, another ‘green’ concept.
The
result
and new MarineLine® X tank coating systems,
is
MarineLine® X offers
MarineLine® 784, which is sometimes
a number of key benefits
referred to as ‘liquid stainless steel’, is coated
for the shipowner and
directly onto the carbon steel substrate of the
operator.
ship’s tanks. This replaces the need to fabricate
comparisons for the tank
In
economic
tanks made of stainless steel which can be very
coating and the application
costly. It is estimated by APC that a carbon
costs,
steel tank coated with MarineLine® 784 cost
only requires a two-coat
less that one-sixth of the price for an equivalent
system, compared to three
tank fabricated in stainless steel, thus further
coatings for phenol epoxy.
preserving resources of the shipowner and
This eliminates extra days
shipyard, which are additional ‘green’ benefits.
for drying and extra spray
MarineLine ®
X
The MarineLine® 784 brand has had great
application costs, resulting
penetration in the chemical tanker market and
in savings and allowing the
is now the preferred tank lining for handling
owner to maximise return
aggressive chemical cargoes. MarineLine®
on investment in a shorter
784 also offers versatile, effective solutions for
period of time.
theBaltic June 2010 www.thebaltic.com
79
Corporate viewpoint Hempel A.S.
The freedom to choose fuel-saving fouling release I
t’s now possible to take advantage of the fuel-
A new patented tie-coat from Hempel
saving benefits of Hempasil X3 – even if your
is set to change how the shipping industry
Knock two days off your drydock time
vessel is coated with a traditional antifouling.
views fouling release coatings. As the industry
For
Hempel’s new Hempasil Nexus X-Seal is the
increasingly looks to realise the fuel-saving
coatings, converting to Hempasil X3 can
fastest and cheapest way to upgrade your old
benefits of silicone coatings such as Hempasil
be a costly and time-consuming process.
antifouling system to the environmentally friendly,
X3, Nexus X-Seal gives shipowners the freedom
Due to the non-stick properties of silicone,
fuel-saving technology Hempasil X3, without full
to upgrade from conventional antifouling to
applying fouling release coatings on top of
blasting the hull.
fouling release – with fewer coats and without
antifouling means either fully blasting the
the extra cost of full blasting.
ship’s hull and building up the system from
80
theBaltic June 2010 www.thebaltic.com
ships
with
conventional
antifouling
Corporate viewpoint Hempel A.S. scratch, or using a two-coat system with an epoxy-type link coat and a tie-coat beneath the silicone. But that is about to change.
How to get Hempasil X3 for your fleet
Nexus X-Seal makes it possible to apply fouling release on top of an aged
Hempel now offers a complete range of products for applying Hempasil
antifouling coating without full blasting and with only one coat to seal the
X3 under different scenarios. What is the best option for your fleet?
old antifouling system and make a strong link to the X3 topcoat. Marie Bakholdt Andersen, group product manager in Hempel, explains: “We
For vessels that require full blasting
created this product specifically for customers who want to upgrade from
If your vessel’s hull has been recoated several times, a full blasting to
conventional antifouling to fouling release – and it’s a revolution compared
remove all the aged coatings would be a good investment. This means
to current industry standards. Shipowners can now benefit from a system
building a new epoxy system, followed by Hempel’s patented tie-coat
that uses only one tie-coat to seal the aged antifouling and tie the system
Hempasil Nexus and the Hempasil X3 topcoat. Although this solution
to the fouling release topcoat, instead of fully blasting the hull or using the
requires a relatively high initial investment, it results in a very smooth
two-layer tie-coat systems that have traditionally been used for these kinds
topcoat to ensure you get the highest fuel-saving potential – and with
of conversions.”
this solution you can also opt for Hempel’s fuel-saving guarantee.
This means that Nexus X-Seal can knock approximately two days off the the vessel’s owner up to US$400,000 in surface preparation, application
For vessels coated with Hempasil X3 or other fouling release topcoats
expenses, dock rent and vessel inactivity.*
Hempel recently launched Nexus X-Tend for recoating vessels with
vessel’s drydock time compared to a vessel undergoing full basting, saving
an existing fouling release topcoat. Nexus X-Tend is designed to be
New technology gives robust system
used in repair and touch-up areas and creates a strong link to all the
Nexus X-Seal forms a long-lasting bond between the antifouling coating
substrates in an old fouling release system. The fast repair procedure is
and the silicone topcoat, and it has undergone extensive testing to ensure
an inexpensive, simple and efficient way to extend the lifetime of your
that its properties and performance match the needs of shipowners. “Nexus
fouling release coating by five extra years.
X-Seal is an epoxy-polysiloxane tie-coat that can be used directly on top of old antifouling,” says Ulrik Bork, developing engineer at Hempel. “It is a
For vessels coated with antifouling
consequence of further development of Hempel’s patented Nexus tie-coat.
If you want to upgrade your vessel from antifouling to fouling release,
The modification provides excellent compatibility with physically drying
Nexus X-Seal is the cheapest and fastest solution. Nexus X-Seal
antifouling coatings and at the same time gives outstanding adhesion to
enables you to avoid full blasting, it requires only one tie-coat to seal
the Hempasil X3 topcoat.”
your old antifouling coating, and provides a strong link to the fouling release topcoat. This system has a lower initial investment than a full
More customers can now benefit from Hempasil X3
blast solution, but as the average hull roughness is higher, the fuelsaving potential must be expected to be lower.
“With Nexus X-Seal we have removed the cost and time barriers that previously stopped many shipping companies from converting to fouling release coatings,” says Marie. “Nexus X-Seal gives shipowners the freedom to choose the best fouling control product for their vessels – and I’m sure that even more companies will now opt for reduced fuel bills and lower CO2 emissions with Hempasil X3.” * Example of a container vessel with a 15,000 sqm hull and a daily hire rate of US$85,000.
If you’d like to know more about Hempasil X3, Nexus X-Seal, Nexus X-Tend or Hempel’s other fouling release solutions, please contact:
Marie Bakholdt Andersen
Torben Rasmussen
Group Product Manager
Group Product Manager
E-mail: mbaa@hempel.com
E-mail: tr@hempel.com
Tel: +45 4527 3033
Tel: +45 4527 3976
Tel: +45 5123 2593
Mobile: +45 4017 2585
theBaltic June 2010 www.thebaltic.com
81
Corporate viewpoint Hyde Marine
Hyde Marine Offering reliable, chemical-free ballast water management solution
H
yde Marine, the US manufacturer
Register. In May 2010, Hyde received a
of the IMO Type Approved Hyde
Type Approval PDA Certificate from ABS.
GUARDIAN®, a totally chemical-free
The Hyde GUARDIAN® treatment
ballast water management (BWM)
involves a two stage process of filtration
system, has called on the designers of the
and high intensity UV disinfection.
latest generation of vessels to include a Type
Seawater is processed through the
Approved BWM in their plans or at the very least,
filtration and UV stages during ballasting.
give careful thought to piping arrangements and
Water receives a second dose of
sufficient engine room space to allow retrofit-
UV energy during deballasting to
ting of treatment systems. According to Tom
assure compliance. UV disinfection
Mackey, former chairman and founder of Hyde
is widely used globally in water and
Marine, as many as 70,000 vessels will have to
wastewater treatment plants as well as
be fitted by 2016 to comply with the IMO’s bal-
the food industry. UV inactivates organisms
last water discharge requirements. Fewer than
by destroying their DNA, but without creating
200 vessels are thought to have purchased bal-
the harmful disinfection byproducts or discharge
last water management systems and it is feared
concerns as with chemical-based treatment. The
consumption
that in some cases owners will find themselves
Hyde UV system is carefully designed to ensure
consumables result in very low operational costs
paying high premiums for delivery before the
that an adequate UV dose is delivered to the
over the life of the ship. The low pressure drop
deadline.
organisms, even in low transmission conditions.
allows for use of existing ballast pumps and
and
exceptionally
low
“We believe that it will be a huge challenge to
An important part of the success of the
ensures minimum reduction of ballast flow rates.
retrofit some vessel types and that some owners
Hyde GUARDIAN® system lies in its patented
Although ultraviolet-based systems may have
may find it difficult to apply BWM technology if
stacked disk filtration technology, which removes
a higher initial cost than rival chemical-based
their engine rooms have complicated and tight
sediment and larger organisms prior to the UV
systems, there is little in the way of ongoing
fitting machinery and piping arrangements,”
stage. According to the company, this type of
maintenance costs. Costly and potentially
said Tom Mackey. However, he noted that Hyde
automatic back-flushing filtration system is much
dangerous chemicals are not needed to clean
Marine’s systems have a small footprint and can
more efficient and reliable than screen-based
the system and the ultraviolet lamps have 8,000
fit into relatively small spaces and, therefore, are
filters.
hours of life, and can therefore be expected to
suitable for most vessels.
“Passing through our disc filters is effectively
last up to 15 years.
Hyde Marine, which has received orders for
like passing through several concentric screen
“We believe that reliability of ballast water
more than 25 vessels, including from Flensburger
filters. We are able to remove the target
systems is the most important aspect that a
Schiffbau Gesellschaft to supply two 700m3/
organisms and return them to the sea. Many
shipowner should consider. If the ship can’t
hr Hyde GUARDIAN® systems for two new
of these more developed animals are resistant
discharge its ballast water, then it’s out of
Rettig Bore ro-ro vessels, was a pioneer in the
to disinfection technology, which any treatment
business. Our system is completely automatic
development of chemical-free BWM technology
system that does not include an effective pre-
and will integrate with the ship’s control systems,
and was one of the first systems to offer a
filtration stage may put shipowners at risk of
minimising any additional workload for the
practical, commercial solution. According to
non-compliance,” says Jim Mackey, Director of
vessel’s crew.”
Tom Mackey, the technology has already proven
sales for Hyde Marine. He adds: “A really unique
itself in seven years of continuous service on the
design feature is the extremely energetic back-
cruise vessel Coral Princess. The Coral Princess
wash process, which starts automatically when
28045 Ranney Parkway
was the first vessel accepted into the US Coast
pressure differential reaches 0.7 bar and cleans
Cleveland, Ohio 44145 USA
Guard’s STEP program and was used as the
the filters like new.” All wetted parts of the system
Tel: 440-871-8000
test platform for IMO testing. In April 2009 Hyde
are produced in polymeric materials, assuring an
Fax: 440-871-8104
received IMO Type Approval from the UK Flag
extremely long service life in seawater.
E-mail: sales@hydemarine.com
Administration and Type Approval from Lloyd’s
82
The GUARDIAN® system’s low energy
theBaltic June 2010 www.thebaltic.com
Hyde Marine, Inc.
Website: www.hydemarine.com
BRUNEL M A R I N E C OA T I N G S Y S T E M S
Discover the best kept secret in the Marine Coating Industry - visit
www.br unelmcs .com
Marrying the environment to the exacting needs of the marine industry Brunel Marine Coating Systems is responsible for developing revolutionary coating systems for the marine industry. The most environmentally friendly & durable High Performance Coatings available in the world today. Our coatings are in use on ships and marine structures around the world - often in the most challenging of environments.
• Non metallic, contains no biocides or solvents, applied by standard airless pump. • 100% solids, extremely hard and does not wear off - surface microtexture less that 10 microns. • Proven to reduce operating costs and carbon footprint - zero VOC! • Non porous and does not support marine growth. • Easily and economically cleaned, if needed, without affecting the coatings life or integrity. • DNV Certified compliant for deductions from Norwegian Shipowners Environmental fund.
Corporate viewpoint Brunel Marine Coating Systems
Marine coating’s best kept secret B
runel’s Enviromarine hull coatings have
Even then, the coating will not be a shipyard
Proof of its durability has come as vessels
now been around for more than a
item of repair. All such schemes have caveats
return to subsequent scheduled drydockings
decade and are continuing to break
of In Water Survey Provisos against premature
having retained the film thickness, hardness and
the mould. Enviromarine is the first and
failure; Brunel Enviromarine will satisfy such
smoothness, which have time and again been
caveats regarding the coating performance.
assessed as “Exactly the same” and “Perfect”.
only hull coating to have been approved and cer-
This was previously unheard of.
tified by DNV as eligible for a subsidy from The Shipowners’ Environmental Fund because of its
Enviromarine
As such, it is able to remain smooth and
Last year, one of the two largest ro-ro vessels
intact in the harshest of conditions and, because
Now, while the industry is desperately
trading in the North Sea was given a full
each of the two coats chemically cross-links to
searching for ways to extend dry-docking
application of Brunel Enviromarine. Logically,
homogenise with the other, it cannot delaminate.
intervals and others are striving to achieve a
Brunel do not expect this vessel to need coating
Because there is no solvent, there is no shrinkage
7.5-year docking interval, Brunel’s Enviromarine
again for a very long time, if at all. As a result,
during the natural curing process, so there is
has been considered and singled out as suitable
the owners have confirmed their decision to coat
adhesion over the whole of the jagged profile of
for a 10-year docking interval. A pilot scheme is
her sistership this summer. Brunel’s strategy
blasted steel that is never put under stress.
to be introduced soon to show the superiority
does not rely on failure of its coating for repeat
of the Enviromarine coating and extend the
business!
environmental credentials.
This complete lack of solvent is not only good for the environment and those working
The Enviromarine system has been selected
on and around the application, it eliminates
because of its proven durability. It is a 100%
the pores where microorganisms can nurture
This accolade, based on the company’s track
solids complex resin system which, because
marine growth and where growth, in turn, can
record of sustained performance of coatings on
there is absolutely no solvent within it or added
anchor. Instead, the coating cures naturally into
vessels already over 10 years, will allow an
to it, is completely non-porous, is around four
one, homogenous system, extremely hard and
owner to apply a full coating of Enviromarine at,
times harder than concrete and yet remains
with a natural microtexture measured as less
say, the vessel’s five-year Special Survey and not
more flexible and elastic than the underlying
than 10 microns, or just one-hundredth of a
dry-dock again until she is due for her 15-year
steel.
millimetre. The fact that the coating does not rely
7.5-year docking interval, already accepted by some, to a 10-year period.
on shedding biocides or paint into the marine
Special Survey and TMON requirements.
habitat to kill growth, using instead the normal motion of the ship and the difficulty growth has in attaching to a hard, smooth surface with no pores and no possibility to penetrate it, means that it retains this smoothness throughout its life. In fact, there is no particle in the system larger than five microns!
Hull cleaning World-leading
underwater
hull
cleaning
company, UMC, now have a worldwide network and have considered residual growth on Brunel Enviromarine to be so slight and so easy to remove, that they offer a considerable discount for the periodic cleaning of the coating. UMC cleaning is achieved without damaging Brunel Enviromarine, or shedding paint or toxins Largest ro-ro trading in the North Sea coated at Arno Dunkerque
84
theBaltic June 2010 www.thebaltic.com
into the sea. Properly treated in this way, a
Corporate viewpoint Brunel Marine Coating Systems Zero VOC Brunel point out that radical or even revolutionary progress of this kind cannot be achieved by accident. It is because of this that considerable investment is dedicated to research and development to improve ease of application and durability, among the other beneficial aspects of Enviromarine. For example, they are now very proud to say that they have fully eliminated all volatile organic compounds (VOCs), the harmful, pollutant and dangerous elements present in other coatings, and a microtexture now certified at less than 10 microns. Application of Enviromarine by conventional airless spray equipment
Cavitation vessel will comfortably continue to benefit both
by normally problematic humidity levels.
A further innovation has been the Cavicure system
operationally and financially for well over 10
The coating is also inert. It will not
for safe and durable repairs to steel damage as a
years, further minimising its ecological impact
contaminate surrounding vessels or steel work
result of cavitation. This happens most notably in
through avoidance of the need to blast off what
and does not require any special processes or
the areas around props, rudders and thrusters,
remaining toxic material may remain on a vessel
expensive encapsulation. The specific gravity of
where the pressure differentials of propulsion
once the bulk has been shed into the sea, let
1.42 means that overspray is not easily airborne.
turbulence create this phenomenon and rely
alone applying another VOC-loaded coating.
Furthermore, Brunel prices the Enviromarine
again on Brunel’s 100% solids technologies.
To quote David Shrieve, chairman and
system by the square metre. They feel it is
After preparation, the solvent-free complex resin,
co-founder of the Conservation Foundation:
important that the customer receives an invoice
Cavicure, at the appropriate viscosity, is applied
“Whoever we are, wherever we are, we all have
in the same amount as the original quotation,
with conventional tools to fill the damaged areas.
our environmental footprint. From what I have
with no nasty surprises or ‘extras’.
Because there is no solvent in this non-shrink
seen of Brunel’s Enviromarine, it certainly helps
resin, it may be applied as deeply as required
the marine industry to reduce its environmental
Future looks bright
and will still cure. A final coat of Enviromarine
footprint.”
Gibraltar based Brunel Marine Coating (Sales)
is then applied. The zero porosity, smooth
Ltd are currently experiencing a large number
and resilient finish repairs and protects against
Fuel efficiency – low emissions
of direct approaches from industry consultants
further cavitation. This system has been used
and agencies wishing to promote Brunel’s
extensively for major clients worldwide. Notably,
The effect of microtexture on the performance
products to shipowners in their local market.
three vessels had this system applied whilst
of a hull is well-documented, although most
Although there is no present intention to risk
actually afloat and the vessels sailed a matter of
manufacturers’ graphs only start at 100 microns
manufacture outside of its current, controlled
hours afterwards. The cavitation had become a
and Enviromarine has a microtexture of less than
UK location, Brunel are building a sales and
condition of class but, after inspection following
10 microns. Hull performance when coated with
marketing network to service the increasing
a full circumnavigation of the globe, the condition
an ultra-smooth, non-absorbent, impermeable,
interest brought about by these ground-breaking
was removed by class.
safe system, protects not only the marine
developments.
habitat, but also the air above it. The lower
Brunel also runs instructional visits to
emissions come quite simply as the result of
shipyards and is presently compiling a directory
burning less fuel.
of approved contractors for preparation and
Brunel sees this as a matter of increasing
application of the Enviromarine system.
importance, partly because of the global
For further information please visit: www.brunelmcs.com
instability of fuel markets, but also because of the forthcoming legislation requiring ships to burn cleaner, more expensive fuel. They also see it as essential that, in this industry, application and operation need to be practical and straightforward. Therefore, Enviromarine is applied with conventional, Graco-type spray equipment, standard globally and in just two coats. Because there are absolutely no solvents either within or added to the system, it cures naturally to its smooth finish, regardless of humidity (because there is no need for evaporation) and without any need for subsequent ‘conditioning’. Time being money, it is of great benefit that there are just two coats to apply in an operation which will not be interrupted
Paint inspector reflecting on the natural, mirror-like finish of Enviromarine
theBaltic June 2010 www.thebaltic.com
85
We are the experts: • • • •
Sale and Purchase Second Hand/Recycling Vessels Financing Surveying
• Green recycling - Surveying - Localisation/Analysis and inventory of hazardous material - Waste Management Scheme - Ship Recycling Plan - Selection of suitable and certified recycling yards - Supervision/Monitoring and Reporting of the ship recycling project More than 60 green recycling projects successfully completed
Pioneer of Green Recycling Projects Guarantee of Good Performance Worldwide Postal Address: Eckhardt Marine GMBH P.O. Box 101746 D-20012 Hamburg
Phone: +49 40 328 102-0 TELEFAX: +49 40 335 783 / +49 40 331 576 E-MAIL: sandp@eckhardt-marine.de
OFFICE: Eckhardt Marine GMBH 13 Ballindamm D-20095 Hamburg
Corporate viewpoint Eckhardt Marine GmbH
Responsible recycling N
o industry has been left untouched by
management
a growing pressure to demonstrate an
Eckhardt Marine’s commercial division enables
awareness and responsibility to the natu-
the company to hire and operate tugs if ships
ral environment. Many industrial sec-
have to be repositioned under tow or to
tors have been impacted deeply by “sustainable
commercially manage vessels for a period of
development” policies. The shipping industry is
time prior to demolition. This is usually achieved
no exception, where one of the main focuses has
through a sale and leaseback arrangement
been on ship recycling activities. These have suf-
with the previous owner or on Eckhardt’s own
fered from a considerable bad image and reputa-
account in the international freight market,
tion over the last decades, often being linked with
where the company has developed very close
low industrial standards, pollution and poor social
relationships with charterers that employ
safeguards for yard workers.
elderly ships.
NGOs,
state-bodies
and
international
and
crewing
requirements.
The core activities and services provided by
organisations are addressing this issue and are
Eckhardt include:
working on an international convention for ship
• Sourcing
recycling. But international law-making is a long-
“end-of-life”
vessels
through
owners, brokers and insurance companies.
term process and the sudden drop in freight
• Sale and purchase of “end-of-life” ships on
rates has made it very obvious that solutions are
a regular basis, and second-hand ships for
needed now.
further trading for selected clients.
Who better than a company that has more
• Managing the towage and last voyages of
than a century’s involvement in this activity to
vessels, with or without cargoes, to different
face up to the future of ship recycling by offering
recycling destinations.
its experience and knowledge to meet the
• Establishing ad-hoc or long-term joint
immediate demands of the shipping industry?
ventures in every country where ships can be broken up.
An industry pioneer
• Development and introduction of new
Eckhardt Marine enjoyed the professional
rigs) totalling 1,500 vessels for a light-weight
recycling standards to meet “green recycling
backing and dedication of the traditional German
displacement (actual steel weight) of more than
objectives”. This effort has already been
industry as a subsidiary of Klöckner, VIAG/
12.5 million metric tons during the last 15 years.
successfully implemented in China and for a number of shipbreaking yards in India.
Deutsche Bank and ThyssenKrupp before management buy-out initiated by Briac Beilvert
Global network for tailoredservices
and Guenther Werle.
being taken over by FIS Holding GmbH via a
• The sale and purchase of all types of European navy vessel which are destined
Head office operations in Hamburg include a
for recycling and which are handled under
Having its roots in 1901 – the date of
trading team to acquire and place ‘end-of-life’
a “special notification procedure”. Eckhardt
inception of its former parent company –
vessels, a post-fixture department to handle
also follows up and reports on the recycling
Eckhardt Marine GmbH has experienced all
the detailed transactions following the trade,
and decontamination process to the relevant
periods of the ship recycling industry and has
and an administration team. Vessels sales can
a presence in all ship recycling countries where
be concluded in as little as two hours, although
• Trading of scrap products (heavy melting
it has a current involvement in all aspects and
others might take up to three weeks. Once
scrap, shredded scrap, billets and such like)
functions of ship recycling projects. In the past,
the sale is completed, the selling owner will
the company operated ship recycling yards in
generally arrange for the vessel to be delivered
• Conducting a sourcing programme to
Germany, the USA and Spain before becoming
to the recycling yard although, if required,
secure additional tonnage by purchasing
the most successful and reliable trading house
Eckhardt will organise the repositioning voyage
older vessels and chartering them back, via
in demolition tonnage, handling all types and
through its shipmanagement division. This
bareboat charters, for periods of two or three
sizes of floating structures (merchant ships,
team has a deep knowledge of rapidly taking
years, whilst also securing the ultimate sale
navy ships, submarines, barges, pontoons, oil
over elderly ships, including their technical
to the recycling market.
theBaltic June 2010 www.thebaltic.com
authorities.
to recycling clients.
87
Corporate viewpoint Eckhardt Marine GmbH Track record and strong relationships
conditions and a rational organisation of the
and analysis of the hazardous materials during
work.
the first boarding through to the dismantling of
Due to its unique background, Eckhardt
• Monitoring and advice to recycling yards
the ship’s last plate. Documented with pictures,
Marine GmbH is privileged to enjoy a network
for being compliant with ISO 30 000:2009
drawings, protocols of the work progress and
of long-standing direct relationships with
(Ship Recycling Management System) which
statements of compliance, this report gives
shipowners, selected brokers and recycling
is the new ISO standard for ship recycling
full details of the depollution and dismantling
yards. Continued good service, reliability and
facilities. This demonstrates how Eckhardt
process, quantities of waste removed and where
commitment to quality have enabled Eckhardt
Marine GmbH is fully compliant with the
and how they were ultimately disposed of.
Marine GmbH to offer a complete range of
Basel Convention and all existing technical
ship recycling services, from the processing of
guidelines (IMO, ILO etc). Early in this decade,
clients which include:
trading transactions to delivering environmental
the company became registered as a waste
• A guarantee for the complete and efficient
and engineering recycling solutions, in often
broker under the European Union notification
management of commercial and technical
complex legal and economic circumstances.
procedures and legislation for the control
green recycling processes in China and
Eckhardt Marine’s professionalism and
of trans-boundary movement of hazardous
reliability has allowed the company to foster
waste, including their disposal from both the
close relationships with a number of financial
disposing and receiving countries.
partners, including some of the major German
As
a
long-term
partner
to
This brings a range of benefits to Eckhardt’s
India. • Continuous monitoring of the dismantling and recycling processes as well as the
breaking
subsequent depollution and disposal work. • Best-practice
green
recycling
services
commercial banks. This enables it to secure
yards, Eckhardt has been able to convince
sufficient debt financing to purchase “end-
several yards to enter exclusive cooperative
in accordance with the most modern
of-life” vessels from those environmentally
joint ventures in China and India, where
international and domestic standards at a
responsible
with
the company’s technical procedures can
maintaining and enhancing their public image.
be implemented under its own monitoring
• Reliable client orientated services which
These include most of the world’s oil majors
systems. All yards working with Eckhardt under
reduce the client’s exposure to liability and
and publicly traded shipowning companies,
the green recycling procedures are certified
damage to their reputation and company
and more generally all shipowning companies
under ISO14001 (Environmental Management
image.
acknowledging accountability in the way their
System), OHSAS18001 (Occupational Health
Safe and responsible ship recycling is fast
vessels will be disposed of.
and Safety Management System), and many
moving up the corporate agenda for all shipping
also hold the ISO9001 Quality Management
companies. Eckhardt Marine has abundant
Still one step ahead: green recycling
System certificate.
knowledge, experience and competence to
Eckhardt Marine is in the process of
ensure that vessels are dismantled without
Eckhardt Marine has established a set of technical
practicing and implementing the new ISO30
causing undue harm to the environment and
procedures for the ecological and sound recycling
000 certification in cooperation with yards’
without endangering life. That should be the aim
of ships for owners that have a particular concern
management. These yards, specially selected
of everyone involved in the international ship-
for the disposal of their elderly ships, in compliance
by Eckhardt, differ from others as they:
operating sector.
with the Hong Kong International Convention for
• Are of new construction and functionality,
the Safe and Environmentally Sound Recycling of
meeting the standards of the western world.
Ships, 2009. Although this legal framework has
• Have a lay-out and technical infrastructure
successfully. Eckhardt Marine GmbH has been
not entered into force since its adoption on 19th
for the segregation and optimum sequence
able to exploit its genuine knowledge and deep
May 2009, Eckhardt Marine GmbH has already
of green recycling procedural steps.
experience of the ship recycling industry and is
owners
concerned
adjusted the standard of its Green Recycling Scheme to comply with this convention. The technical procedures cover the following issues:
on board. • The analysis and examination of hazardous materials in accordance with MEPC (Maritime
green
recycling
a range of resources to meet social and quality standards to help preserve the environment. That is what sustainable development is
management system.
all about.
of the workforce. • Provide appropriate accommodation and healthcare facilities for personnel. • Employ specially trained staff for safety procedures and accident avoidance. • Maintain
an
excellent
reputation
for
dependability and efficiency.
Environmental Protection Committee of IMO)
Contact: Briac Beilvert / Guenther Werle
A recycling plan
Managing Directors
• An appropriate removal and collection of
Eckhardt Marine monitors ship recycling projects
Eckhardt Marine GmbH
each type of hazardous waste for proper
in a very similar way to the supervisory process
Ballindamm 13
disposal or neutralisation in dedicated
employed for the construction of new ships.
D-20095 Hamburg, Germany
landfills or facilities.
Regular reports are made by Eckhardt Marine
Tel: +49 403281020
• A dismantling plan of the ship structure,
to the vessel owner, detailing the steps involved
Fax: +49 40335783
ensuring the implementation of safe labour
in the dismantling process from the inventory
E-mail: sandp@eckhardt-marine.de
179 (59) adopted 17/07/2009.
88
projects
onward transportation in an advanced waste
code for the individual and collective safety
of the hazardous materials and substances
60
a prime example of a company bringing together
ships’ components made of hazardous
localisation, analysis and condition reporting
than
facilities for hazardous waste prior to
• Have strict adherence to a protective dress
these tasks encompasses identification,
Since 1999, Eckhardt Marine has handled more
• Have secure intermediate special storage
• A waste-management scheme for handling materials or substances. The scope of
competitive price.
theBaltic June 2010 www.thebaltic.com
SECURE SECURE SECURE SUSTAIN SUSTAIN SUSTAIN SUPPLY SUPPLY SUPPLY Energy is a must for prosperity and a better quality of life. Energy for more people is thus the main theme of the 19th ONS to be held on Energy is a must for prosperity and a better of2010. life. Energy 24 – 27quality August Energy is a people must for andtheme a better quality life.toEnergy for more is prosperity thus the main of the 19thof ONS be held on Energy is a must for prosperity and a better quality of life. Energy for more peopleCan is thus the main theme of the 19th ONS to be held 24 – 27 August 2010. we combine increased consumption withon for more people is thus the main theme ofenergy the 19th ONS to be held on 24 – 27 August 2010. sustainability? Can we secure both our prosperity future? 24 and – 27our August 2010. Can we combine increased energy consumption with Can weinvolved combine increased energy consumption with Can we secure our prosperity and our future? Since sustainability? 1974 ONS has itself inboth challenges, innovation and Can we combine increased energy consumption with sustainability? Can we secure both our prosperity and our future? inventive solutions. Today ONS is regarded as one of the world’s sustainability? Can we secure both our prosperity and our future? Since meeting 1974 ONSplaces, has involved in challenges, innovation and leading energy where itself delegates and visitors from Since 1974 ONS has involved itself in challenges, innovation and inventive solutions. Today ONS is regarded as one of the world’s almost oneSince hundred and know-how to theand 1974countries ONS haspresent involvedtheir itselfideas in challenges, innovation inventive Today ONS is regarded as one ofand theworld. world’sfrom leadingsolutions. energy meeting places, where delegates visitors energy inventive solutions. Today ONS is regarded as one of the world’s leading energy meeting places, where delegates and visitors fromto the almost one hundred countries present ideas and leading energy meeting places, wheretheir delegates and know-how visitors from almost one hundred countries present their ideas and know-how to the energy world. Thisone yearhundred the focus will be on environmentally and energy almost countries present their ideas sound and know-how to the energy world. efficient production methods, enhanced resource use and accessibility, energy world. focus will be on environmentally and energy and the searchThis for year new,the renewable sources. ONS is the only sound arena that This year the focus will be on environmentally sound and energy efficient production methods, enhanced resource use and accessibility, showcases thethe complete energy from fossilsound to renewable This year focus will be onpicture environmentally and energy efficient enhanced resource use and accessibility, andproduction the searchmethods, for new, renewable the only arena that resources. efficient production methods, enhancedsources. resourceONS use is and accessibility, and the search for new, renewable sources. ONS isfrom the only arena that showcases the complete energy picture fossil to renewable and the search for new, renewable sources. ONS is the only arena that showcases the complete energy picture from fossil to renewable resources. showcases the complete energy picture from fossil to renewable resources. resources.
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Shipbuilding and repair
Strike while the iron is hot For cash-rich companies not threatened by overcapacity, this is the time to order, as yards begin to feel the pinch
I
f the shipping market feels threatened by the
established, but expensive, yards in Europe,
shipbuilding, with the market reaching a record
prospect of a boom in deliveries over the
well-known yards in the Far East and cheaper
height of 91.2 million dwt completed in 2008.
next few years, many shipbuilders are feeling
but newly-built facilities in the Far East, there will
Each of the peaks to date has been followed by
threatened by the prospect of owners being
be considerable competition for survival.
a considerable trough. However: “If we believe
unable to pay for ships on order. Overcapacity is
Chinese projections, we will have 40 years of
a problem for yards as much as it is for owners,
steady growth after we hit the bottom of the
with the rush to build facilities to keep up with
Overall market conditions
the flood of orders for ships leading to a number
Figures
of yards which may now stand empty. Between
that there have been four peaks in modern
from
Clarksons
Research
current market,” says Martin Landtman, ceo of show
Newbuilding and repair yards alike are having a difficult time
90
theBaltic June 2010 www.thebaltic.com
STX Finland. “It is clear that Korea and China have been motors for this growth.”
Shipbuilding and repair
Turku is concentrating on environmental work of 2009. “The first cancellations were the ‘easy’
have preferred a year to get settled into the job
future.
ones, where owners could afford to let things go.
first, “but prices at the moment are just too good
At the height of the shipbuilding boom, the
Now we are seeing owners in real difficulties,”
to be ignored”. The company has approached
Shipbuilders’ Association of Japan predicted
said Cargotec’s Olli Sotalo. Many of this first
nine yards around the world, although only six
that there would be a need for some 35 million
wave were bulker and container vessels. Some
responded with offers. Asian yards in particular
CGT per annum shipbuilding capacity. This has
20% of the company’s marine orderbook of E1.6
are offering a very good price, said Bockmann,
since been revised downwards to 26 million
billion is now under threat of cancellation, but
who declined to comment on whether he was
CGT per annum. Projected shipyard capacity
Sotalo believes that many of these threatened
under pressure to choose one of Finland’s
currently stands at 75 million CGT. Shipyards
cancellations will not materialise.
increasingly struggling yards for the work.
Predictions about demand versus capacity show
a
rather
more
pessimistic
bulker
However, pricing is not the only factor to be
points out, as this excessive capacity combines
cancellations in the early part of 2009, Cargotec
taken into consideration, particularly when it
with the imbalance of supply and demand on
was beginning to get orders for more bulker
comes to newbuildings, rather than repairs. For
the buyers side.
equipment, in particular as a result of orders
the two new vessels that Rettig will be building,
placed by Chinese owners, Sotalo said. In
says Bore, the company has decided on ‘proven
addition, some owners were benefiting from the
European yards’, rather than heading for China.
The cancellation question
slowdown, as orders were now being placed
Vessels will only be about 15% more expensive,
There have been plenty of discussions about
for complex vessels that were too expensive to
he says, and the company is willing to pay that
cancellations between yards and owners – but
build at the height of the boom. Offshore vessels
for the added security in terms of timely delivery.
few of them in public, Landtman says. As a
are one of the few areas where Sotalo sees
In addition, he says, Chinese yards tend not to
result, no-one is really sure of the true extent of
growth potential over the next few years.
be flexible over design, and the fuel efficiency
are not just facing one crisis, but two, Landtman
Despite
the
high
number
of
of existing designs is not that good – whereas
the situation facing shipyards worldwide.
Rettig is looking to increase fuel efficiency on the
One means of gauging the extent of cancellation is to look at figures given by major
Bargain hunting
suppliers to the shipyards, rather than to the
As a result of the competition for orders, yards
suppliers themselves. Engine manufacturer
have become very aggressive in pricing for both
Wartsila, for example, say they are facing a
shiprepair and shipbuilding. “Two years ago, you
cancellation risk of approximately E500 million
had to go where you found a space; today yards
Environmental options offer a future
this year. Last year that risk was estimated to
are forced to be much more competitive,” said
Likewise, Viking Line’s new ships will have to
be E800 million, although final figures showed
a spokesman for Rettig Shipping. His company
be 30% more efficient than today’s ships. This
total cancellations for the year at E410 million.
has changed yards at least once because the
improvement will come mostly from hull design,
Overall, Wartsila saw orders for ship engines
previous one got complacent over pricing for
says Bockmann, since the ships that are being
down by 80% in 2009, with the first half of the
drydocking, he implies.
replaced were probably designed in 1984 or
year being “exceptionally slow”. The company is
The return of lower prices is beginning to
having to “make reorganisations to cope,” said
attract owners back to ordering, according to
Atte Palomaki, VP corporate communications.
several commentators.
new ships by up to 20 tonnes per day.
85, and there have been huge advances in ship design since that time. Environmental regulations will be a big driver
While the market for merchant ships is down,
“Yard prices are absolutely great at the
of yard work over the next few years. Turku
“even here there is pick-up potential”, he
moment,” says Michael Bockmann, who took
Ship Repair Yard, for example, says that it is
emphasised.
over as MD of Finnish-based ferry company
concentrating on environmental work to attract
Cargotec, which provides handling systems
Viking Lines in mid-February. In fact, prices are
owners, including conversions and updating
for containerships, says it saw two waves of
so good that he launched into a newbuilding
equipment, although the yard’s strongest side is
cancellation last year – initially from the beginning
programme just 20 days after joining the
still annual fast dry docking. Wartsila reckon that
of the year until May, and then again at the end
company. If anything, Bockmann says, he would
more than 20,000 vessels will need to upgrade
theBaltic June 2010 www.thebaltic.com
91
Shipbuilding and repair their bilge and ballast water cleaning systems
shiprepair yards. Even at a yard which has one
within the next three years. They also estimate
of the largest dry docks in the Baltic, capable
that many vessels are in need of conversion
of taking tankers of up to Aframax size, “We
work to improve hull design and efficiency in
live from hand to mouth,” says Sundqvist. “We
order to minimise operating costs, particularly if
never know what we’ll be doing in five or six
an emissions trading scheme is introduced for
weeks time, and there are huge variations in the
the shipping industry.
workload. Some weeks we don’t have enough
Ship conversions, either to increase efficiency, or from a low-cost to a more profitable ship
work for one employee, and then, two weeks later, we’ll have 200 subcontractors in.”
type, are also likely to provide a good source of
Being located in the Baltic presents its own
income for repair yards, and, to a lesser extent,
problems for the Finnish yard in terms of the
to newbuilding yards.
location. “The wage load is three times higher than in Baltic countries, but our productivity is higher,” says Sundqvist. Perhaps as a result,
Repair yards feel pressure
75% of customers are Finnish.
Like the newbuild yards, repair yards have
Higher wage prices are compounded
been feeling the impact of the economic crisis.
by political issues elsewhere in the Baltic, in
At Turku Repair Yard, for example, a member
particular in Poland, he continues. “We think
of the BLRT Group, and one of the largest
the Polish government will continue to prop up
shiprepair yards in the Baltic, turnover last year
Polish yards that are even cheaper than those
was E60 million, compared with E80 million in
based in the Northern Baltic. We cannot work
2008. Managing director Hans Sundqvist thinks
out how they can do steel work for $2 per kilo
that this year will be even harder than 2009,
– we can’t even get materials for that price. For
with many customers feeling the effects of the
us, the cost would be $6-8 per kilo, while even
economic downturn more strongly than before.
other Baltic countries would offer $4-5 per kilo.”
For repair yards, there is an added element
Similar help is unlikely to be forthcoming for his
of uncertainty due to the unpredictability of
own business, even if EU regulations allowed
the work. Yard work tends to be cyclical,
it, he concludes. “The government might help
and February and the beginning of March in
newbuilding yards, but not repair yards, they’re
Hans Sundqvist
particular are traditionally not a good time for
too small.”
92
theBaltic June 2010 www.thebaltic.com
Are You Being Served?
We take extra care of your cargo • R egular services from the Continent and Baltic to the Black Sea v.v. • MPP tweendeckers fitted for project cargo
Hartel Shipping & Chartering BV Goudhoekweg 14 3233 AM Oostvoorne The Netherlands Phone +31 181 486 222 Fax +31 181 486 152 E-mail mail@hartel.nl Internet www.hartel.nl
Cargo focus Breakbulk
Breakbulk shipping turns the corner After a difficult 2009, demand for breakbulk shipping services is on the up again. Moreover, this sector’s future prospects are being enhanced by a relatively restrained programme of investment in new tonnage
I
n many respects the breakbulk sector is one part of the global shipping industry that tends to slip under the radar, certainly compared to its more glamorous container shipping cousin.
However, companies transporting breakbulk goods – essentially non-bulk cargoes that are too big or otherwise unsuited for containerisation – have a critical role to play within the global economy. The Dutch consultancy Dynamar has just published a new report, Breakbulk: Operators Fleets, Markets*, which reviews the current state of this sector. In it the report’s author, Dirk Visser, observes that: “Overall the breakbulk industry has been riding the waves of globalisation quite successfully and carriers of breakbulk, project and heavy lift cargo have become as essential to the world economy as box ships. The developing world could not do without breakbulk ships and it should not be overlooked that it was breakbulk vessels carrying out-ofgauge machinery to key production centres that allowed the ‘China factor’ to actually take off.”
A healthy orderbook The Dynamar report also points out that the position of breakbulk shipping has been much enhanced by a sustained programme of investment in new ships. In Mr Visser’s view:
Gerhard Jannsen, Rickmer’s director marketing and sales
theBaltic June 2010 www.thebaltic.com
95
Cargo focus Breakbulk “Since 2000, breakbulk shipping has turned
Another
from being an ailing to a thriving part of the
investment
industry and an initial lack of newer, efficient
Bremerhaven-based Beluga Shipping, which
ships has been rectified in part by the arrival
has 31 vessels on order with a combined
Rickmers currently has nine Superflex Heavy
of new, very capable and productive units with
capacity of 515,000 dwt. These include its new
MPC vessels employed in the Round-the-
many more on order.”
19,100 - 20,000 dwt ‘P series’ ships, the first of
World Pearl String service, going eastbound,
which, the Beluga Houston, entered service in
with departures every fortnight. In addition, the
January this year.
company has expanded its cooperation with
Moreover, this investment has taken place in a more responsible and sustainable way than in
company
with
programme
a
substantial
underway
is
ports, especially in less developed regions where we are more likely to encounter draft, length or beam restrictions.”
some other segments of the shipping business.
Eastern Car Liner (ECL) and is now operating
Dynamar estimates that the newbuilding
four ECL vessels with breakbulk capacity on a
orderbook for breakbulk ships, including project
Flexibility is key
and heavy lift vessels, currently stands at around
Other fast expanding operators in the breakbulk
25% of the existing fleet in deadweight terms.
sector include Austral Asia Line and Rickmers,
However, Mr Visser points out: “If all breakbulk
both of which have 14 vessels on order.
ships older than 25 years were scrapped now
Rickmers’ new ships will be delivered in 2011
Bringing back the tweendecker
then the orderbook would only replace 70%
and 2012, and include four 24,000 dwt so-called
Last September, the US-based TBS group,
of the lost space. This is where the breakbulk
Mumbai-max vessels, designed to meet the
which operates a fleet of 25 multipurpose
sector differs from the container industry, where
constraints of the leading Indian gateway port
tweendeckers, took delivery of the Rockaway
the capacity of newbuildings exceeds that of 25
and which can lift up to 700 tonnes, and six
Belle, the first in a series of six multipurpose
year-plus vessels by 15 times!”
19,000 dwt vessels with a lift capacity up to 480
tweendecker newbuildings which the company
One of the leading carriers in the breakbulk
tonnes. The remaining four ships on order are
has ordered from China. The second vessel,
segment is BBC Chartering. The German
17,000 dwt multipurpose vessels that can lift a
Dakota Princess, was delivered in March and
operator is set to significantly increase its market
maximum of 300 tonnes.
two further vessels will be delivered in 2010, with
roundtrip in the Pacific on a monthly basis.
share over the next few years, having around 46
Gerhard Jannsen, Rickmer’s director market-
ships on order for delivery in 2010-12, totalling
ing and sales, adds: “Compared with our Pearl
Chief executive Joseph Royce says: “The
over 560,000 dwt. These are all multipurpose
String fleet, which consists of nine 30,000 dwt
timing is right for these new multipurpose,
ships of varying types, ranging in size from 3,500
vessels, these ships are obviously smaller. This
retractable tweendeckers, which are ideal for
dwt to 37,500 dwt.
gives us greater flexibility when calling at smaller
parcel and general cargoes. They are brand new
The new tweendecker, Rockaway Belle, delivered last year
96
theBaltic June 2010 www.thebaltic.com
another two due in 2011.
The reliable container, reefer, ro-ro and multipurpose liner service to and from Southern Africa
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Cargo focus Breakbulk
ships, with the latest technology, and will give us
multipurpose ships that the company has on
25% more floor space for general cargo.”
order in China. Each has a maximum lift capacity
There is a general consensus that the
He continues: “Around 75% of the multi-
of 640 tonnes and is specifically designed for the
financial crisis is easing and that many large
purpose tweendecker fleet is over 25 years
transportation of breakbulk and project cargoes.
scale projects that had been shelved are now
of age and in need of replacement. We feel
New Orleans-based Intermarine is investing
being reactivated. “There are indications that
demand for this type of ship is going to be
heavily in its multipurpose vessel fleet, contracting
postponed projects will be reactivated shortly
significant and we plan to buy more new ships
a series of eight newbuildings. The last of four
and the level of enquiries for cargo to be
of this type in future, as they are not readily
10,000 dwt E-Class vessels, the Industrial Echo,
moved within the next couple of months has
available on the second-hand market.”
entered service in early 2010, and these ships
been increasing,” says Mr Janssen. “The energy
feature dual 250 tonnes capacity cranes that
sector has been relatively resilient in the face of
can be combined to lift cargo units weighing up
the global economic crisis and our expectation
Upgrading the fleet
to 500 tonnes. Four further 12,000 dwt F-Class
is that the wind farm, nuclear power and fossil
Safmarine, part of the AP Moller group, has an
ships, each with two 400 tonnes cranes, will
energy sectors will generate an increase in the
extensive multipurpose vessel operation that
follow into Intermarine’s fleet in 2010 and 2011.
breakbulk volumes that need to be shipped.”
transports breakbulk goods on a global basis,
Other players with significant breakbulk ships
TBS’ Joseph Royce is similarly upbeat. He
but which is primarily centred on the West
on order include SE Shipping and Coscol.
says: “Our liner and parcels services began
African trades. Over the past year the company
The latter is considered by Dynamar to be the
their recovery during the fourth quarter of 2009
has rejuvenated its fleet of multipurpose vessels,
biggest ‘pure’ breakbulk operator, with a fleet of
and the first quarter of 2010 has continued that
taking delivery of several new vessels on
some 70 ships, totalling around 1.2 million dwt.
trend. We have seen a strong recovery in South
them to adopt protectionist trade policies.”
long-term charters, and this has resulted in
America, where Brazil and Peru particularly are
notable service improvements. As Greg Ulicki,
booming economies, and we see opportunities
Safmarine’s director of multipurpose services,
Recovery beckons
in Africa as well.” To meet these evolving
points out: “The injection of new tonnage tends
For all breakbulk operators, 2009 was a very
requirements TBS has initiated a new breakbulk
to result in improved schedule reliability, although
difficult year. As Joseph Royce reflects: “Looking
service from the US Gulf to South America and
this is subject to port conditions in West Africa.”
at 2009 the breakbulk segment suffered as much
is setting up a joint venture in South Africa to
Safmarine will be taking delivery of four new
as any within the dry cargo market. There was
target the requirements of the energy sector in
18,000 dwt multipurpose vessels in 2010/11,
a lot of uncertainty about financing and this led
the region.
and these will be the first vessels of this type
to projects being cancelled or postponed. Our
Intermarine is also strong in the breakbulk
that will be wholly owned and managed by
steel parcel services out of Brazil in particular
sector between the USA and South America.
Safmarine for more than a decade. Mr Ulicki
took a big hit.”
The strength of the latter market has recently
says: “Our investment in new, owned tonnage
Most carriers active in the breakbulk segment
persuaded the company to diversify, setting up
is proof or our commitment to the trade and the
are, however, generally optimistic that, while
a new service connecting Europe to the east
deployment of these ships will further enhance
2010 will be another tough year, market trends
coast of South America and another from North
our service and lower our environmental impact.”
are moving in their favour, particularly as a result
Asia to Brazil.
Another South Africa based breakbulk
of developments in South America, India and
specialist,
MACS
Shipping,
has
recently
China.
Breakbulk operators are still, however, suffering the knock-on effects of low container
According to a spokesman for BBC: “These
freight rates, which is encouraging some
three markets still have immense potential and
shippers to switch cargoes to the box option,
The Polish-Chinese joint venture Chipolbrok
are rapidly developing, driven by a high rate of
where this is possible. A recovery in this sector
is another breakbulk specialist that is upgrading
public and infrastructure investment. It is unlikely
is likely to be a prerequisite before breakbulk
its fleet and recently took delivery of the Adam
that they will reduce their development and
operators can fully restore financial health.
Asnyk, the first of a series of six 30,000 dwt
infrastructure investments, and we do not expect
purchased a new feeder vessel, the Black Rhino, to augment its West Africa service.
theBaltic June 2010 www.thebaltic.com
99
Geographical focus Canada
Cause for optimism Global economic issues are continuing to impact on Canadian trade, a fact which is reflected in port performance statistics for 2009. There are, though, signs of recovery in some sectors, including grain exports
P
orts on Canada’s west and east coast experienced varying fortunes last year. However, there was an underlying theme of recovery at all facilities, especially on
the Pacific coast. Cargo moving through Canada’s main west coast gateway, Port Metro Vancouver, dropped 11% last year compared with 2008, to just under 102 million tonnes. However, the port authority reports significant growth in grain, specialty crops and petroleum products traffic, as well as a modest increase in loaded export container volume.
Key exports recover The upturn in key Canadian exports, such as grain, has given the port reason to believe that the worst of the crisis is now behind it. According to a statement from the port: “Volume decreases experienced during the first half of 2009 inched toward recovery in the third and fourth quarters, foreshadowing possible gains for 2010.” Demand from Asia, led by China and India, was a major factor behind the increase in volume for bulk cargo exports, with total grain shipments rising by 33% to set a throughput record of 18.1 million tonnes and wheat volumes surging by 38% on the back of strong demand from Latin American, South American and Middle Eastern markets. Coal exports finished the year down 6%, at 24.3 million tonnes, but continue to represent the port’s single biggest trade, accounting for nearly a quarter of Vancouver’s
100
theBaltic June 2010 www.thebaltic.com
Geographical focus Canada throughput. Consistent growth in coal exports to
construct, increases Deltaport’s capacity by
in the second half 2009, following a weak first
South Korea and China throughout the year was
around 50% to 1.8 million TEU. Over the next
half, to push total traffic to 4.16 million tonnes.
complemented by the recovery of demand for
ten years, container traffic through Canada’s
This was, however, down 14.2% for the year
metallurgical coal by major steel producers, such
west coast is expected to double and the new
compared to 2008.
as Japan, in the second half of the year.
berth at Deltaport is part of a long-term plan to
During 2010 Prince Rupert port will remain
Vancouver’s forest product volumes dropped
strengthen Canada’s Pacific Gateway and ensure
focused on further increasing its container
21%, but this was mainly due to a sharp drop
Vancouver’s ability to accommodate the growth
volumes and intends to press on with the Phase
in domestic demand. Foreign forest product
in container trade, in particular with Pacific Rim
2 expansion of the Fairview Container Terminal.
volumes by contrast increased by 1%, again
economies like China.
The port authority also intends facilitating the
driven by strong demand from China. Forest
development of new export capacities for bulk
product exports moving to China via Vancouver in
commodities, including sulphur, potash and
West coast weathers storm
mineral concentrates, bulk liquids such as
Demand for containerised forest product
Also on Canada’s west coast, the Port of Prince
vegetable oils and petroleum products, and
exports helped boost Vancouver’s loaded
Rupert appears to have weathered the receding
import capacities such as in-bound project cargo
container exports, although overall the port’s
global economic storm better than Vancouver,
and automobiles.
container business contracted by around 14%
recording its highest volume throughput since
compared with 2008, to 2.15 million TEU. Loaded
1997 last year. The port handled 12.2 million
container traffic fell by 10% in the 12-month
tonnes of cargo in 2009, up around 15%
period, but with laden box movements in the first
compared with 2008 volumes.
fact increased by 38% in 2009.
East coast faces slower recovery
half of the year down 17% compared to equivalent
The increase in traffic in 2009 was not driven
In general terms, ports on Canada’s east coast
months in 2008, the port has justification for
by any one line of business, as throughput levels
have struggled with the recession to a greater
claiming that a recovery in its container trade
were up for most Prince Rupert facilities, including
extent than those on the west coast, reflecting
is well underway and should be reflected in
containers and bulk cargo. The Fairview Container
Pacific coast facilities’ closer ties with key Asian
significant growth during 2010.
Terminal handled 265,259 TEU, a 46% increase
markets. In this region there are signs of trade
To prepare for longer term container traffic
over 2008, while Prince Rupert Grain (PRG)
improvement, however. The Port of Montreal for
expansion, in January this year Global Container
terminal volumes jumped by more than 35% to
instance points to recent growth in certain types
Terminals and Port Metro Vancouver officially
just over 5 million tonnes, the terminal’s highest
of dry bulk cargo traffic, such as iron ore, as a
opened the new CAN$400 million third berth
throughput since 1993. Wheat shipments, the
potential harbinger of economic recovery.
at the Deltaport container terminal. Deltaport
core of PRG’s business, were up almost 56% to
Overall though Montreal experienced a 12%
is the largest container terminal in Canada,
4.6 million tonnes, offsetting decreases in volumes
drop in traffic to 24.5 million tonnes in 2009. Bulk
handling approximately 45% of the containerised
for barley, canola and grain pellets.
cargo experienced an 8.7% decline, although
cargo that moves through Canada’s west
Also on the bulk cargo side, the port’s Ridley
grain shipments recorded a 14.7% increase over
coast. The project, which took two years to
Terminals experienced a surge in coal volumes
the previous year. Montreal’s container trade took
theBaltic June 2010 www.thebaltic.com
101
Geographical focus Canada a significant hit, and dropped by over 15% to 1.25
Sept-Iles invests for the future
million TEU.
reclaim its title as second busiest port in Canada.
Several major investment projects for the port
Earlier this year the Port of Sept-Îles announced
Cargo volumes handled at the Port of Sept-
were announced last year, giving Sept-Iles cause
the signing of an agreement with the federal
Îles, one of Canada’s key bulk cargo gateways on
for optimism about the future. Construction of
government to develop the Pointe-Noire dock,
the east coast, dipped 12% in 2009, with the port
a new cruiseship terminal, additional facilities
to provide additional capacity for Consolidated
achieving a total volume of 19.8 million tonnes
at Pointe-Noire wharf optimisation project, the
Thompson Iron Mines. Work on this project is now
compared with the 22 million tonnes handled
La Relance terminal expansion project and
underway and should be completed by late 2010.
during the previous year. This slowdown was
the signing of a long-term agreement with
Around CAN$10 million will be invested to provide
caused, for the most part, by a reduced volume
Consolidated Thompson Iron Mines made 2009
greater berthing capacity at the dock and make
of iron ore shipments.
a record breaking year in terms of investment in
use of the land behind it to create a maritime
the port. “All signs point to 2010 being a year
transhipment centre for bulk cargo.
of significant growth, thanks to the $160 million
Algoma extends fleet
worth of infrastructure investment announced
Part of the Ontario-based Algoma Central
last year in collaboration with our partners,”
Corporation (ACC), Algoma Tankers, is
comments Carol Soucy, chairman of the port
expanding its fleet with the recent purchase of the product tanker Algoma Dartmouth for US$9 million. The vessel, which was already operated by Algoma Tankers under a long-
authority board. The launch of Consolidated Thompson Iron Mines’ storage and handling operations in the Port of Sept-Îles in the autumn of 2009 is
CSL prepares for next generation of self-unloaders The Montreal-based CSL group is designing a new generation of self-unloading bulk carriers that will incorporate the latest technology in vessel construction along with
particularly important, as shipments generated
proven gravity belt self-unloading systems.
by the new iron ore producer, which boasts an
According to CSL president, Paul Cozza:
fuel delivery and vessel bunkering services
annual production capacity of 8 million tonnes,
“Ideally by the end of the year we will have
within the Halifax Harbour.
should soon enable the Port of Sept-îles to
firm plans in place for a new generation
term bareboat charter arrangement, provides
The Algoma Tankers fleet now consists
of ocean-going vessels to modernise and
of seven vessels, including the new product
expand our fleet.”
tankers Algonova and AlgoCanada, which
The fleet renewal initiative is not limited
joined the fleet in late 2008 and early 2009.
to CSL, but also its partners in the CSL
This fleet is claimed to be the newest and
International
most technologically advanced product tanker
Algoma Central Corporation and Torvald
fleet operating within the Great Lakes and St
pool,
Oldendorff
Carriers,
Klaveness, who are also planning similar
Lawrence River system and on the Canadian
initiatives. “The investment from all of
east coast.
the members squarely demonstrates the
ACC has also recently reached an
continued support and focus on the long-
agreement with its domestic dry bulk joint
term health of the CSL International pool,”
venture, Seaway Marine Transport (SMT), to
says Mr Cozza.
timecharter three bulk carriers to them for a
CSL is generally upbeat about its
five-year term upon their arrival in Canada later
prospects for 2010, and sees positive
this year. These vessels, the Algoma Spirit, the
trends in a number of key markets. “The
Algoma Guardian and the Algoma Discovery
economy in the United States, the main
are currently owned by Algoma Shipping
market for the CSL International business,
Inc., a wholly-owned foreign subsidiary of the
is expected to improve throughout the year,
Corporation. They are all maximum seaway
albeit slowly. For the pool we think Latin
size bulkers and were built in 1986 and 1987.
America has a very exciting future and our
Algoma Corporation will provide operating
self-unloaders are perfectly positioned to
management and crewing services for the
meet growing infrastructure needs there. We
vessels, which are expected to be deployed
will be focusing this year on expanding our
by SMT, the largest operator of dry bulk
presence in the region.”
vessels on the Great Lakes – St Lawrence
CSL’s Canada Steamship Lines division
Waterway, primarily in the grain and iron ore
owns and operates a fleet of 19 Canadian
trades. ACC currently has five product tankers
flag vessels, including 11 self-unloaders
under construction at yards in China. When
and eight bulk carriers, which trade on
these are completed over the next two years
the Great Lakes and St Lawrence Seaway
they will join an existing owned product tanker,
system. A newbuilding programme from
plus 18 other product tankers that are owned
1998-2004 rejuvenated the fleet, which was
or are under construction by third parties, in
supplemented in 2008 by the purchase of
the Hanseatic Tankers fleet.
four bulk carriers.
102
theBaltic June 2010 www.thebaltic.com
SLS 15128 Baltic Exchange ad half pgv1_New Business 10-04-20 10:39 A
Geographical focus Canada
Quebec diversifies Another east coast port, the Port of Québec, saw its cargo volumes decrease by 21% in 2009 when compared to 2008, to 21 million tonnes. This was the first throughput decline posted by Quebec since 2001 and is attributed mainly to reduced demand for bulk cargoes used in the construction and steel industry in the United States, including iron ore and metallurgical coke. Over the past few years the Port of Québec has sought to diversify its activities. “Even though the decrease is an important one, it would be even more significant without the diversification efforts made, mainly with regards to tonnages of nickel, alumina, raw sugar, kerosene and biofuels,” points out Ross Gaudreault, president and chief executive officer at the Quebec Port Authority. The Port of Halifax also experienced a downturn in total traffic, albeit by a more modest 6.2%. Halifax’ bulk cargo shipments proved relatively resilient, dropping only by 1.6%, to 6.52 million tonnes, although breakbulk cargo,
can become
including forest products, dropped by almost 36%. Container traffic moving through the Nova Scotia port fell by around 11% to 345,000 TEU. However, this masks a significant improvement in the second half of the year, when overall containerised cargo growth was 4.2% compared with the second half of 2008. In fact, Halifax’s container throughput in the second half of 2009 was almost 26% higher than in the first six months, an increase triggered by the addition of several new container lines. In January this year the Halifax Port Authority started work at the South End Container Terminal on a CAN$35 million infrastructure project. The project’s primary purpose is to allow the terminal to simultaneously berth and handle two large post-Panamax vessels and involves deepening the berth to a depth of 16 metres from 14.5 metres and extending the quay line. Halifax’s container throughput has declined steadily since reaching a peak of 550,000 TEU in 2005 and this investment is critical if the port is to revive its fortunes and stay competitive in this sector.
Victoria yard retains leading role Victoria Shipyards Limited (VSL) is consolidating its position as one of North America’s foremost repair and newbuilding yards. In recent months, the company has secured a CAN$19.6 million contract to build a series of five lifeboats for the Canadian Coast Guard, for search and rescue operations around the country. These craft, designed as a first response rescue vessel in high seas, will enter service by March 2011. VSL has also recently completed work on a new catamaran type ferry for commuters within the Vancouver area. The TransLink Burrard Pacific Breeze entered service in December 2009 and can carry up to 400 passengers. In the ship repair sector, VSL is becoming one of the leading drydocking centres for the region’s cruise industry, and last year handled
Qualify as New Business on the Seaway and you save 20% on tolls If your cargo qualifies as New Business, you can add to your savings by shipping via the Great Lakes St. Lawrence Seaway System.
repair and refit work on three cruise liners, Golden Princess, Amsterdam and Millennium. The yard also completed a number of major upgrade projects for the Canadian Navy and Coast Guard, while other notable visitors to the yard’s docks included the container ship Alvsborg Bridge and the Norwegian survey vessel, Viking Vision. According to general manager Malcolm Barker: “Victoria Shipyards remains a leader in the ship repair and new vessel construction industry along the Pacific coast. This year the yard will build on the success of previous years’ work, with achievements in new vessel construction
New Business can include cargo that has a new origin, a new destination, or that was previously moving via a different mode of transportation. Or cargo that has not been previously shipped via the Seaway in the last 5 years in a volume larger than 10,000 tonnes.
projects for the Canadian Navy, Coast Guard and TransLink, while our established history of refit and repair works for various cruise lines, BC Ferries, commercial fishing fleets, container vessels and barges will ensure many years of prosperity for the company and its workforce.”
Visit our website for details and an application to qualify.
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theBaltic June 2010 www.thebaltic.com
103
Port focus Gothenburg
Gothenburg gears up Space is available – the priority is to make sure the facilities are there to match
T
he port of Gothenburg, already one of
sectors, down 19% from 2008. Foreign trade in
Privatisation agenda
the major hub ports in the Baltic, aims
vehicles fell by 42% over 2009. This figure too
2010 sees the beginning of a major shake-up
to expand its operations. Gothenburg
shows a recovery over the course of the year –
in port management. The port was previously
is known for its strict environmental
first half figures were down by 58%.
state-owned and operated. Under the new
policies, and aims to continue to develop them,
“We noted an improvement during the
arrangements, operations will be split into four
in particular by expanding the amount of rail traf-
second half of the year. It was not a major
sections. The state-owned Port Operating
fic through the port and encouraging the use of
upturn, merely a hint of an increase. Although
Authority will continue to be in charge of overall
cold ironing. Splitting off port operations from the
volumes fell overall we have fared well compared
port operations, while operation of the ro-ro,
port authority is expected to encourage growth
with many competing ports,” said Magnus
container and car terminals has been split off.
and efficiency in the future, while opening up oil
Kårestedt, Port of Gothenburg chief executive.
Each of these sectors will be handled by an
“As over one-quarter of Sweden’s foreign
outside company. The terminal facilities are
trade passes through the Port of Gothenburg
leased from the Port Authority, which retains
we can see changes in the economy at an early
ownership. The three terminals were officially
stage and naturally we have been affected by
split off from the Port Authority on 1 February
Second-half recovery
the setbacks in the automotive industry. It is
this year. “The work with the new structure has
Like other ports in the region, Gothenburg
heartening for everyone that things are looking a
gone very well and we have already seen great
saw a considerable drop in traffic during 2009,
little brighter,” Kårestedt continued.
interest from operators around the world,” said
storage facilities will boost the port’s role as a crude oil transhipment hub.
with box traffic down by 5% overall in 2009
2010 is seen as the first stage of the
Chairman of the Board Sven Hulterström. No
from 2008. However, traffic was down 10% at
recovery. New investments from liner companies
final date has yet been set for transfer of the
the half-year mark, showing that there was a
and from the new operating companies will allow
three terminal companies to external operators.
considerable recovery in the second part of the
the port to expand capacity.
Source: Port of Göteborg
year. Ro-ro traffic was another of the hardest hit
Clean air is a priority
104
theBaltic June 2010 www.thebaltic.com
Port focus Gothenburg Expanding oil capacity
Cold ironing
Liquid bulk is one of the most important sectors
Once
for the port, accounting for some 2,500 ship
innovations has been the introduction of high-
of
Gothenburg’s
most
successful
calls a year. While throughput in 2009 was down
voltage shoreside power for visiting ships in
7% on 2008, at 21.1 million tonnes, 2008 was
order to cut down on pollution from shoreside
a record year.
vessels. To ensure the energy provided is as
In 2009, Gothenburg began acting as a
‘green’ as possible, rather than just displacing
reloading hub for Russian crude oil. It is one
pollution from the vessels’ smoke stacks to
of the few ports in Scandinavia that can offer
an onshore power station, the port has also
a deep-water harbour for crude oil along with
installed two wind turbines. The first shoreside
transit storage for reloading onto larger tonnage.
power connections were installed in 2000.
Maintaining and expanding capacity is crucial
Currently, three quays at the port offer onshore
for success in this area and capacity has
power supply. Gothenburg has published a
recently expanded, as the port has recently
guide for ports intending to implement onshore
got permission to use one of four underground
power supply, and has won awards from the
caverns in the port for crude oil storage. The
EU and Lloyd’s List for its efforts to encourage
next step in the expansion of oil handling
crude and the product sectors. The port aims to
facilities will be to construct a process facility
make sufficient capacity available to secure its
with gas recycling, which should be completed
future in the area.
cold ironing. The Swedish government announced in mid-April that it will cut tax on cold ironing by
by the end of the year. The investment is carried
30%. “The announcement by the government
out jointly with storage company Scandinavian
is extremely positive. Apart from the fact that
Tank Storage AB, and is expected to cost in the
Rail throughput
customers who already use this technology will
region of SEK200 million.
Expanding the amount of cargo that either
have a considerably reduced cost, I believe the
Claes Jacobsson, president of Scandinavian
begins or continues its journey by rail is a major
decision will lead to further operators linking up.
Tank Storage, said: “We and our customer, a
part of the port’s environmental strategy. In
Onshore power supply will now become a more
major international operator on the oil market,
2009, the number of container journeys made by
financially attractive alternative,” said Kårestedt.
are extremely pleased that transport has
rail increased in absolute terms by 7% over 2008
commenced. The stock turnover depends on
to 366,500 TEU, even as the total container
environmental affairs at the port, said that those
the market, although we estimate a fourfold
throughput fell. Almost 50% of container
who already used ‘cold ironing’ had helped
turnover each year.”
throughput is transported by rail, thanks to
reduce emissions by around 5,000 tonnes per
tonnes
the development of a rail shuttle system in
year. She added: “Our aim is that as many as
of crude oil are handled each year at the
partnership with rail operators and shipping lines.
possible link up, so that the figure is at least
Tor Harbour. With the new facility now in
Facilities were further expanded in February this
30,000 tonnes per year.”
use, an increase of 20-60% is anticipated.
year with the completion of rebuilding work at
With three refineries close to the port, there is
the port’s two marshalling yards, where tracks
considerable potential for expansion in both the
were widened and extended.
At
present,
around
9
million
Åsa
Wilske,
who
is
responsible
for
Gothenburg
theBaltic June 2010 www.thebaltic.com
105
2010 PARTNER COUNTRY
PARTNER EVENT
In collaboration with the Maritime Council for the Oslofjord region See the Talks: http://www.youtube.com/ user/NHSTevents1
For more information regarding the Talks:
+44 207 842 2727
Agenda
info@nhstevents.com
www.nhstevents.com
Supported by
Sponsored by
The Oslo Shipping Talks comprise four sessions during the day, conducted largely in interview style, with a panel of chosen experts and industry leaders sharing insight and being asked to comment on a series of questions and propositions put forward by the session moderator.
The Mayor of Oslo will host a reception at 15.30 – 17.00h on May 31st for all delegates to the Oslo Shipping Talks and other VIP guests Opening Session 09.00h – 10.30h Setting the scene. 09.00h Trond Giske, Minister of Trade & Industry 09.20h Sturla Henriksen, Managing Director, Norges Rederiforbund 09.40h Henrik Madsen, President & CEO, DNV 10.00h Li Xiaopeng, Senior Executive Vice President, Industrial and Commercial Bank of China (ICBC) 10.30h Coffee / networking break
Session 3 13.30 – 15.00h Financing and building the order book. Is the balance of lending power shifting to the East and what are the implications for Norwegian ship owners and equipment suppliers? How is the role of Export Credit Agencies developing? How will the availability of bank loans and bonds affect the trading landscape for ship owners? Overview Dong Jianzhong, Managing Director, Welton Hazz Shipbrokers Discussion panelists Peter M. Anker, Managing Partner & CEO, RS Platou Harald Serck-Hanssen, Global Head of Shipping, Offshore and Logistics, DnB NOR Carl E. Steen, Head of Shipping, Oil Services & Intl Division, Nordea Bank Norge ASA Martin Stopford, Managing Director, Clarkson Research Studies Shicheng Yang, Chief Executive, COSCO UK Limited Grace Zheng, Partner, Yao Liang Law Office 15.00h Coffee / networking break Session 4 15.30h – 16.30h What are the commercial opportunities for shipowners and suppliers from high growth emerging economies and low growth advanced economies?
Session 2 11.00h – 12.30h To what extent does continued success depend on a vibrant and dynamic ship owner What’s it worth? Is the maritime cluster relevant beyond Norway, now and for centric community? Why are the service pillars; class, broking, finance,insurance, how long? legal and ship management so successful and where should companies invest for tomorrow. What is the value of the maritime cluster to Norway? Defining the cluster – examining Does shipbuilding and equipment supply in Norway really have a long term future? the constituent parts to demonstrate how far the cluster reaches in Norway’s GDP. What future can young Norwegians expect from the maritime sector? How are other clusters weathering the storm and looking forward? What can Discussion panelists governments do better? Are there common factors that have helped them succeed? Jan Morten Eskilt, CEO, The OSM Group Linked in to this is the question of where business is best served. What is important to Egil Holland, Director, Maritime Sector, Federation of Norwegian Industries owners – access to intellectual capital, closeness to clients, workable tax regime etc. Birgit M. Liodden, President, Youngship Overview Roy Reite, President, Offshore & Specialized Vessels, STX Europe Torger Reve, Wilh Wilhelmsen Chair in Strategy and Industrial Competitiveness, Felix H Tschudi, Chairman, Tschudi Shipping Company BI Norwegian School of Management Ole Wikborg, Director & Senior Underwriter, Norwegian Hull Club Discussion panelists 18.00h Dinner for all registered delegates at Helle Hammer, Managing Director, CEFOR kindly hosted by Winmar Sturla Henriksen, Managing Director, Norges Rederiforbund Henrik Madsen, President & CEO, DNV Ida Skard, Director General, Maritime Department, Norwegian Ministry of Trade & Industry Morits Skaugen, CEO, I.M. Skaugen SE 12.30h – 13.30 Delegate luncheon in the Mirror room kindly hosted by
Tradewinds Oslo Conference, 2009
Legal news
Legally speaking Sandra Speares looks at the issues surrounding the payment of ransoms
W
ith the spate of piracy attacks off
“Interestingly, the language reflects UN
the Somali coast showing no sign
resolution 1844, but these designated names
of let up, ransom payments are
have not been sanctioned in the same way
intended targets of the Executive Order, then it should have been more clearly stated.”
being paid on a regular basis to
under 1844.” He believes this suggests that the
ensure the crew and ship are released as swiftly
move is very much a US initiative and the rest
UK law clarified
as possible. The legality of such payments has
of the international community is not convinced
February’s judgment in the case of Masefield
depended on the fact that the pirates are not
that this is the right way to go. “It seeks to punish
AG v Amlin Corporate Member Ltd provided
linked to terrorist organisations, but are acting on
shipowners and offers no alternative for the safe
valuable guidance to the industry on the position
an opportunistic basis for personal profit alone.
resolution of a hijacking.”
regarding the payment of ransoms under English
A recent case in the English High Court has
law.
provided some reassurance to those involved
The case involved the hijacking of the
in ransom payments that they have the legal
Uncertainty persists
Bunga Melati Dua in August 2008 and while the
right to do so under English law. However, there
Dennis Bryant of Bryant’s Maritime Consulting,
main part of the judgment concerned whether
are indications that the US may be considering
says he finds the new order “highly confusing”.
the cargo was a loss under the 1906 Marine
taking action against those shipowners who pay
While he says piracy and armed robbery at sea
Insurance Act, the main point of interest as far as
ransoms to pirates, perhaps including banning
off the coast of Somalia are mentioned in the
the industry was concerned was the claimants’
them from US ports.
preamble of the order, “the real focus seems to
argument that ransom payments were contrary
be on individuals and entities that threaten the
to public policy.
Transitional Federal Government of Somalia and
US to ban ransom payments?
the African Union Mission in Somalia.
According to Holmans: “the court was ‘wholly unpersuaded’ that it would be right to
According to law firm Ince & Co, the US may
“The Office of Fair Assets Control issued
categorise the payment of ransom as contrary
use existing UN resolutions coupled with the US
a revision to its list of Specially Designated
to public policy. In the absence of parliamentary
Office of Foreign Assets Control to bring action
nationals
addressing
intervention, there was no clear and urgent
against those who pay ransoms. President
Al-Shabaab and its leadership. The Executive
reason for categorising the activity as contrary
Obama has recently signed a presidential order
Order does not mention whether the payment of
to public policy and the court should resist any
listing some of the names of those understood
ransom to pirates, Al-Shabaab, or anyone else
temptation to do so.”
to be investing in piracy, and a prohibition on
is prohibited. Certainly, the federal government
The judgment also emphasised that payment
paying funds to those named could affect
took no action when at least one US company
of ransoms was the only option. Holman Fenwick
ransom payments.
paid ransom to rebels/terrorists in Latin America.
Willan alone has been involved in more than 40
that
seems
to
be
vessel hijacks involving over 1,000 seafarers.
Industry and other sources have been closely
“The Executive Order does succeed in
watching US moves to have certain pirate
causing uncertainty within the international
This judgment, the firm believes should
leaders named as “designated” people under
maritime community. At the moment, there are
end speculation “usually from cargo interests”
this order. Holman Fenwick Willan partner James
no US citizens or US-registered vessels being
about the legality of ransom payments. “As the
Gosling, said he was “pretty worried” about
held hostage by Somali pirates. There are
Amlin case shows, public policy is one thing,
threats being made to ban the payment of
citizens and ships of allied nations being held
government policy is another,” Mr Gosling said.
ransoms as “What other option is there?” He is
hostage though. Could a zealous US Attorney
The non-payment of ransoms by governments is
concerned about the use of UN resolutions to
charge a foreign shipowner (or its insurer) with a
a “straightforward approach” he said.
impose a ban. However, the question remains as
US presence for paying a ransom to the pirates?
However, the threat of a ban remains as
to whether this would pass, given the sensitivity
It is now a possibility. While there might not be a
questions have been asked in the UK parliament
of states like Russia and China to the fact their
conviction, there could easily be a messy court
about the legality of payments and if the
seafarers are being held captive.
proceeding if such charges were brought.
consensus seems to be that they are illegal,
Stephen Askins of Ince & Co also expresses
“Assuming that Al-Shabaab, and their fellow-
concern that while the order affects US
travellers, are the real target here, inclusion of
“persons”, it might be extended to include
the mention of piracy in the Executive Order is
anyone with a business presence in the US.
unfortunately misleading. If piracy is one of the
108
theBaltic June 2010 www.thebaltic.com
restrictions on payment could be imposed.
Insurance news
Insurance parlance Piracy not ‘total loss’, says UK high court
T
he UK High Court has ruled that the
following payment of a ransom, showed that
hijacking by Somali pirates of a vessel,
the claimant had “lost only possession and not
NOM offers war risk policy in Nigeria
its crew and its cargo for ransom did
dominion over (or property in) their good”, he
NOM (UK) Ltd, part of the Nigerian-based BUA
not result in the cargo becoming an
said. It was clear that the shipowners had every
Group, is offering a 100% Lloyd’s backed war
actual total loss in terms of s.57 (1) of the Marine
hope of recovering the vessel crew and cargo,
risk insurance product to owners.
Insurance Act 1906 nor a constructive total loss
and therefore no abandonment had occurred.
NOM, who acts as a FOB buyer of
under s.60 (1) of the Act, report solicitors Walton
commodities from the large trading houses
and Morse.
on its own behalf, says insurance for the
ITIC pays piracy claim
West African trades is becoming increasingly
in the Gulf of Aden, laden with biodiesel owned
The International Transport Intermediaries Club
expensive, making trade more difficult. The
by the claimant, Masefield. About a month after
(ITIC) has paid out a claim in respect of a sum
company believes it has found a way to reduce
the capture of the vessel, while negotiations
of money stolen from the safe on board a ship
excessive insurance premiums for the region
for ransom and release were ongoing, the
managed by one of its members after the ship
by offering its own marine hull war risk policy
claimant tendered a notice of abandonment to
had been boarded by Somali pirates.
as an alternative to owner arranged war risk
The Bunga Melati Dua was seized by pirates
the insurers, which was rejected. The vessel was
In the latest issue of its Claims Review, ITIC
insurances for vessels trading to Nigeria. The
released some 10 days later, six weeks after its
reports that, after the pirates had boarded the
insurance is only offered to owners, not cargo
seizure. The vessel arrive in Rotterdam a month
ship, they opened fire on the accommodation
interests or charterers.
later, with no damage to the cargo.
block and entered the bridge. Once under the
It believes that it offers a “safe pair of hands”
Masefield claimed that the cargo became an
control of the pirates, the ship was forced to alter
to those owners interested in trading to Nigeria
actual total loss once the vessel was seized by
course for Somalia, where it was detained by the
or West Africa by taking on the war risk under
pirates, claiming that it had been “irretrievably
pirates for some months before being released.
its own policy.
deprived” of the cargo. The claimant argued
Before releasing the ship, the pirates stole
The risk is 100% covered at Lloyd’s through
that the court could not take into account the
a number of items from it, including a cash box
11 syndicates. A violent theft, piracy and barratry
prospects of recovering the vessel and cargoes
located in a safe kept in the master’s cabin. The
extension is available to be incorporated in
through a ransom payment, because a payment
cash box included the sum of $15,000 which
conjunction with the Institute War and Strikes
of this type was contrary to English public policy
had been placed on board by the ship manager.
Clauses.
(see p 114 for a fuller examination of this aspect
Because the manager had taken out ‘cash on
of the case).
board’ insurance, the stolen money was duly
Mr Justice Steel, however, noted that
reimbursed in full to the ship manager by ITIC.
there was an extremely high bar for showing
Under the terms of ITIC’s cash on board
irretrievable deprivation: “An assure is not
insurance, money can be covered when kept
irretrievably deprived of property if it is legally and
in a locked safe on the ship. ITIC also provides
physically possible to recover it (and even if such
a range of cover for managers and agents in
can only be achieved by disproportionate effort
respect of money carried temporarily in their
and expense).” The circumstances of the case,
care while in transit to a ship. The cover can be
the fact that the pirates immediately entered into
extended to money, including petty cash, kept
negotiation for the release of the vessel and that
in the manager’s office or at his home overnight.
previously seized vessels had been released
theBaltic June 2010 www.thebaltic.com
109
Insurance ITIC
Old questions resurface Andrew Jamieson of the International Transport Intermediaries Club looks at a couple of questions that refuse to go away
W
e live in difficult times, when
Extended charterparties
will look at the amounts they have been paying
everyone is trying to reduce their
The first chestnut relates to whether or not
as commission and consider whether this
costs. There are two old chest-
owners are obliged to pay commission on
expenditure could be avoided. The Baltic Code
nuts relating to the payment of
extended charterparties.
describes as “unacceptable” the “occasional
commission which have re-emerged in the current depressed economic climate.
It is perhaps inevitable that, when period
practice” of avoiding the payment of commission
business is due for renewal, some principals
due to brokers on direct continuations of time charters or contracts of affreightment. And, given this clear statement by the Baltic Exchange, it is disappointing that ITIC is regularly involved in pursuing principals who do try to avoid their obligations to brokers. Owners may question why, having fixed the ship for a given period and having paid the agreed commission, they should be bound to that broker for ever more. Obviously, brokers will believe that, for as long as the owners are enjoying the fruits of their labour, commission is payable. The Baltic Code cautions that, to avoid disputes, brokers should endeavour to have a clause inserted in the charterparty or contract of affreightment providing that they will receive commission on any hire or freight paid, but also on any continuation. There are some charterparty forms, most notably the NYPE, which expressly provide that brokers should receive commission “on hire earned and paid under this charter, and also upon any continuation or extension of this charter”. The lack of such a provision does not mean that brokers have no rights. Brokers are entitled to commission for bringing the parties into a contractual relationship. If nothing is said in the charterparty, a claim for commission during the extended charter period should succeed unless the extended business has become too remote from the brokers’ work.
If these ships renew their charters, is commission payable?
110
theBaltic June 2010 www.thebaltic.com
For the business to have become too remote
Insurance ITIC would require it to be a fundamentally different
The Worldscale issue
transaction. A revised hire rate does not make it
The second chestnut to have re-emerged
fundamentally different business.
recently relates to the issue of whether or not
It is a balancing act. Clearly, the more
commission is payable in the tanker markets
substantial the differences between the first
on fixed differential payments under Worldscale.
charter and the ongoing business, the less likely
Differential payments are designed to cover
it is that it will be seen to be connected to the
additional costs. Owners will of course feel that, if
initial broker’s efforts.
the purpose of a differential is to meet extra costs
The NYPE clause does not prevent all
actually incurred, then by paying commission
disputes. A frequently heard argument is that
one is creating a shortfall. Worldscale does
the clause refers to “this charter” and that the
not take a position on commission issues, and
renewed charter is wholly different because it
that includes what constitutes an appropriate
is contained in a different document. Often, the
brokerage commission and whether or not
owners or their representatives will refuse to
commissions should be paid on differentials,
produce a copy of the charterparty, claiming that
demurrage or other portions of the freight
it is confidential. The idea that brokers’ rights can
charges in any transaction.
be ended simply because the principals have
There do not appear to have been any
drawn up a new document doesn’t stand up to
decided cases on the point. The differentials
serious examination.
are, however, part of freight. Brokers are entitled
In essence, courts and tribunals will look at
to commission on freight. There are no obvious
the realities of the situation and will not allow
grounds upon which one can dissect the various
brokers to be unfairly denied commission on the
items that make up the freight. Therefore, it
basis of contrived differences.
appears that commission is payable on the total freight paid, however it is comprised.
theBaltic June 2010 www.thebaltic.com
111
Commercial profiles
BBC Chartering B
BC Chartering is one of the world-lead-
The ‘new wave’ of vessels, soon to be
The strength of the fleet and the capability
ing companies in transportation of Non-
joining the BBC Chartering fleet, represent our
of our professionals are critical components
Containerised Goods. The availability of more
commitment to the future and to growth. This
in meeting the manufacturing and installation
than 120 vessels combined with 24 offices
series of new generation super heavy lift vessels,
deadlines that our customers and the industry
around the globe is guarantor for short reaction
some with a lifting capacity of up to 900 mts, will
demands.
time and tailor-made solutions.
be fully deployed by 2012.
Following the philosophy of Six Sigma
With the global office network, we can offer
BBC is also giving a strong commitment to
and combining it with the framework of ISO
local knowledge and understanding. Quality
its bulk customers by providing new bulk vessels
9001, BBC Chartering continuously balances
of service is our hallmark. Dedicated shipping
of the BBC Neptune type carrying deadweight of
all relevant key factors to realise maximum
professionals are handling all kinds of projects
37,300 tons. Furthermore, the BBC Bulk Division
customer satisfaction and efficiency.
– large or small – with consistency and care
– Headquartered in Leer, Germany – coordinates
from the initial booking, to stowing and lashing
and provides customised and high efficient
For further information you may visit BBC
analysis, preparation for loading, all the way to
solutions by utilising its 24 global offices.
Chartering´s web page:
the actual handling, stowing and securing.
BBC is also proud to play a leading role
Providing a fleet, ranging in size from 3,500
in the carriage and handling of wind turbine
dwt to 37,300 dwt and due to the shallow draft
power as it continues to grow in popularity
characteristics of each ship we can serve almost
and is embraced by governments and energy
any port and offshore operation. That is why
companies worldwide.
BBC is perfectly geared for every break bulk,
As one of the pioneers in transporting
heavy lift, project and bulk cargo requirement.
windmills, with the first shipment in 1998, BBC
Specialised in heavy lifts and project cargoes,
has been in this business since the start,
we have the commercial and technical resources
obtaining a tremendous amount of knowledge
and abilities necessary to handle complex
and expertise as a result.
www.bbc-chartering.com
transportation projects.
BI Norwegian Self-owned foundation
Accreditation and ranking
programmes. BI offers special study provision
BI Norwegian School of Management is a self-
BI obtained the status of ‘Specialized University
within insurance, commodity trading, banking
owned foundation whose purpose is to conduct
Institution’ in 2008, after NOKUT (the Norwegian
and finance, and shipping.
education and research at a high international
Agency for Quality Assurance in Education) gave its approval on 27th February 2009. BI
International activities
has been EQUIS accredited since 1999 as one
Collaboration agreements with 148 universities
of only 110 business schools in the world. We
and business schools in 40 countries around
Vision
are one of the 100 most recognised business
the world, and many exchange students. Special
Its professional strength and relevance makes
schools of a total of over 4,000 such colleges
MBA programme in China in collaboration with
BI Norwegian School of Management a leading
in the world (one of 35 in Europe) in the “Top
Fudan University School of Management. Chief
business college in Europe.
Business School Worldwide 2008” survey. We
owners of the ISM University of Economics
are amongst the 65 best suppliers of tailor-made
and Management in Lithuania with 2,000
Values
in-house programmes in the world and provide
students. Strategic collaboration with Nanyang
BI takes quality and independence as the
the 117th best MBA programme in the world
University of Technology in Singapore, ESCP/
basis for its optimum research, education
(2008) according to the Financial Times.
EAP European School of Management in Paris,
level
within
management,
administration,
economics and marketing.
and University of California - Berkeley.
and intermediation for students, the business community, the public sector and positive social
Education and research
development. We are an independent business
BI has one of Norway’s leading academic
school, which is future orientated, research
environments within the core areas of financial
based, business orientated, and international.
economics, strategic management, marketing,
We conduct our work with quality, integrity,
leadership and organisation, and innovation
relevance and the ability to adapt and change.
and entrepreneurship. We offer two bachelor
BI creates effective and highly professional
programmes, a range of Master of Science
training by coordinating its resources across the
programmes, Executive MBA programmes and
organisation. Our managers and employees are
five doctoral programmes, extensive continuing
Nydalsveien 37, 0484 Oslo
aware of ethical dilemmas and challenges, and
and further education, Internet studies, tailor-
Tel: +47 81 00 05 00
take personal responsibility for handling these.
made in-house programmes and management
E-mail: study@bi.no
112
theBaltic June 2010 www.thebaltic.com
Commercial profiles
Merchant Maritime Warfare Centre LTD S
ince its launch, the Merchant Maritime
there are no gaps in your vessels’ security.
for the threat they face and an opportunity to strengthen any areas of vulnerability that the
Warfare Centre (MMWC) has been help-
MMWC’s innovative offerings are personified
ing seafarers empower themselves against the
by the development and launch of the MMWC
increasingly prevalent risk of piracy through a
Propeller Arresters™. By creating an on-water
MMWC goes further to assist your crew in
layered defence mechanism comprising of intel-
impenetrable security perimeter around a
a high risk transit by sharing the intelligence
ligence, physical countermeasures, training and
vessel, the MMWC Propeller Arresters™ are
gathered in their daily operations from the
onboard resources.
the first countermeasure of its kind to protect
multiple sources available to them. The MMWC
MMWC works relentlessly with maritime
vessels underway, regardless of vessel type,
Ship Support Service keeps masters abreast
and military organisations to reduce the threat
speed, cargo, flag state registration or weather
of the latest threat in their area whereas the
of piracy and enable shipping companies to
conditions. Not only capable of thwarting
Confidential
defend themselves without the use of arms in a
simultaneous attacks, the Propeller Arresters™
Service is a free two-way reporting facility that
practical, affordable and enduring way.
audit may highlight.
Master-2-Master
Intelligence
are designed to withstand multiple and prolonged
gives masters the opportunity to alert other
MMWC’s approach to reducing the threat of
periods of deployment. They are effective in any
masters in their area of suspicious pirate activity.
piracy has accumulated in an innovative portfolio
high risk area, when left unattended, and do not
of offerings advocating Best Management
interfere with your own vessel’s propulsion.
Practice (BMP). Since individual interpretation of
Due to a lack of evidential support for
BMP can leave some vessels more vulnerable
shipping companies adhering to BMP to share
than others, MMWC’s services strive to achieve
with internal and external stakeholders, MMWC
a minimum standard and consistent level of
launched the MMWC Crew Competence &
protection onboard. Ranging from affordable
Vessel Hardening audit in the Suez Canal. Acting
Contact details:
countermeasures, timely and in situ auditing
as a final check point for shore based teams, the
Merchant Maritime Warfare Centre
facilities, transit support and intelligence, training
audit not only provides the reporting exercise
Tel: +44 (0) 845 26 99 801
and invaluable bridge resources, MMWC has
that is needed, it also serves as a reminder
E-mail : sales@mmwc.org
a wealth of experience and services to ensure
to crew of the need to prepare themselves
Website : www.mmwc.org
Rickmers-Linie H
amburg-based Rickmers-Linie is one of
up to 640 tonnes. The main hatches are 32m in
East Coast. The four 11,000 dwt ships, built
the world’s leading specialists in the glo-
length to allow long loads to be accommodated
between 1995 and 1998, are equipped with
bal sea transportation of project and heavy lift
below deck. Adjustable tweendecks allow for
heavylift gear capable of lifting loads of up to 120
cargo. With more than 175 years to its name,
variations in cargo height. A dehumidifying
tonnes and also with RoRo ramps. Some regular
the company provides a world-wide network of
system controls the air in all holds, ensuring
loading ports within the westbound service
liner services for the transportation of breakbulk,
protection from condensation.
are Philadelphia, Charleston and Houston, with common discharge ports being Busan, Xingang,
project and individual heavy lift pieces. Rickmers
Furthermore, a regular liner service is offered
currently owns or long-term charters 13 special-
from Europe to the Middle East and the Indian
ist vessels and spot charters additional ton-
subcontinent. Since older vessels previously
As part of the larger Rickmers Group of
nage. The company’s newbuilding programme
operating in this service have been sold, sailings
companies, Rickmers-Linie can call upon
comprises 14 vessels which will be delivered
to ME and India are currently being performed by
considerable
from 2011.
charter vessels, until the company takes delivery
management of its fleet.
With the revolutionary Round-the-World Pearl
Qingdao, Shanghai and Yokohama.
in-house
expertise
for
the
of newbuildings earmarked for this service.
String Service, Rickmers-Linie has successfully
In 2009, Rickmers-Linie and Eastern Car
established new standards in terms of frequency,
Liner, Ltd. expanded their cooperation in
Rickmers-Linie GmbH & Cie. KG
flexibility and reliability in the breakbulk and
the Transpacific trade. The companies offer
Marketing & Sales
project industry, enabling customers to plan their
westbound departures from the US East
Neumuehlen 19
cargo flows more easily.
Coast to Northern China, Korea and Japan.
22763 Hamburg
The Pearl String Service is served by nine
The cooperation dates back to 2006, when
Germany
new identical 30,000 dwt purpose-built superflex
Rickmers started to deploy ECL’s vessels from
Phone: (+49) 40 389177 200
heavy multi-purpose container ships. These
the US to Asia. The newly concluded agreement
E-mail: marketing@rickmers.net
vessels are equipped with four large cranes, two
allows Rickmers-Linie to utilise ECL vessels now
of which can be twinned for a lifting capacity of
also eastbound from Asia to the US Gulf and
theBaltic June 2010 www.thebaltic.com
Contacts:
113
Commercial profiles
BGN Risk A
cross all aspects of maritime operations,
reducing incidents, insurance claims and the
learned. We can perform this service as part
BGN Risk provide risk-based control frame-
impact of crime.
of an insured or uninsured event. Our crisis management credentials are recognised by
works to protect your people, your cargo and vessels and, ultimately, your profits. Our integrat-
ISPS Code Compliance
specialist insurance syndicates. With offices in
ed and proportionate approach to risk manage-
BGN Risk consultants are well placed to assist
East and West Africa and the Far East we are
ment, prevention strategies and response tactics
organisations to achieve and maintain ISPS
poised to support clients with a cost-effective
provide a holistic and reliable security service to
Code compliance. This can be outsourced
preventative and reactive service.
your business. Our preventative services help
directly to us to manage on your behalf or we
Central to the management of BGN Risk
to control costs from the outset by improving
can train and validate key appointments in your
crisis services is our multilingual control centre,
your business processes and reducing the risk
organisation.
operating 24 hours a day and seven days a week, into which clients report incidents
of security issues affecting your operations. We also seek to add value through our efficient, reli-
Anti-Piracy Operations
and receive immediate advice while a crisis
able and cost-effective response services.
BGN Risk can deploy security escort teams
unfolds and from where response personnel are
onto vessels to safeguard them during high-risk
deployed to recover the situation.
Security Planning and Management
transits. We can advise your existing crew on
By helping our clients to focus their security
and hijack so that they are able to respond
operations we make their activities relevant to
appropriately to direct threats. In the event of a
the whole business and instil a proactive culture
hijacking, our negotiators will mobilise to recover
focused on deterring, detecting and displacing
the situation.
techniques to mitigate the risk of pirate attack
maritime security risks. A well-structured
Lead Contacts: Liam Morrissey, Simon
loss prevention and security department, if
Crisis Management
Fordham
aligned correctly within the business, results in
We provide an end-to-end solution, from the
Tel: +44 (0)207 398 3800
improved financial and operational performance,
initial liaison, negotiation, safe recovery of people
E-mail: enquiries@bgn-risk.com
becoming a self-sufficient profit centre by
and assets, post incident debriefing and lessons
Website: www.bgn-risk.com
BUPA International B
upa International has 38 years’ expertise
the oil and gas industry, for example, covering
road ambulance, and cover for sports injuries.
in caring for the insurance needs of expats
employees both offshore and onshore, as well as
Bupa International has also increased its cover
and their families around the globe. Covering
a maritime policy, designed for crew employees
for chronic diseases, such as diabetes and
over 800,000 people in 190 countries, Bupa
who live and work aboard yachts, super yachts
asthma, beyond diagnosis to include treatment,
International is the largest international expatri-
or ocean-going vessels.
including drugs and consultations. As chronic conditions become more common across the
ate health insurer in the world, supplying quality individual and group medical cover to people
Medical expertise
globe, the benefit this move provides customers
who are in their home country or living abroad.
Bupa International is also set apart by the medical
is significant from both a financial perspective
The company is part of the leading international
expertise it offers customers. Its emergency
and the peace of mind this extended cover
health and care group, Bupa.
medical team consists of highly-trained doctors
provides.
who are experts in high altitude diseases,
Expat understanding
tropical infections, patient evacuations and
Industry leader
Bupa International understands that expats want
home transportations. They also have extensive
In 2008, we were delighted to receive the Best
peace of mind about their health while abroad
experience of diagnosing and treating cancer,
International Private Medical Insurance Provider
– and a health insurer they can rely on to
heart disorders and musculoskeletal conditions.
award at the UK’s Health Insurance Awards, for
provide a high quality service and comprehensive
Bupa International’s medical team are available
the ninth time since 1999. Leading expatriate
coverage. That is why it has developed an
around the clock to customers, ensuring they
health insurer, Bupa International, has won a
unrivalled worldwide network of over 7,500
receive immediate and correct treatment, when
Queen’s Award for Enterprise for the third time,
participating hospitals and a 24-hour helpline,
the need arises.
having been a previous winner in 1999 and 2005.
team of experienced advisers. This is all backed
Adding value
For more information, please visit
up by direct settlement of bills where possible,
Flexibility is also Bupa’s hallmark, with customers
www.bupa-intl.com, or if you’re interested in
as well as a prompt turnaround of claims,
enjoying benefits such as primary care cover,
international health cover for you and your
with Bupa International processing over 15,000
maternity cover, home nursing, routine and
family, please call +44 (0) 1273 718 304. If
claims a week.
emergency dentistry, as well as hospital treatment
you’re interested in group cover please call
and accommodation, health checks, emergency
+44 (0) 1273 718 308
open 365 days a year, which is manned by a
Bupa International offers tailored products for
114
theBaltic June 2010 www.thebaltic.com
Commercial profiles
H2OLiteSpeed
Superfast, unlimited maritime broadband: just add water
F
or many in the maritime market, VSAT has
60cm in diameter, compact hardware, and offers
solutions. Ideal for short sea commercial vessels,
become an attractive but complicated option.
download speeds of up to a massive 2Mbit/s
including ferries, fishing vessels, cargo carriers
Unlike traditional leased line services, evaluating
high speed internet access, low cost VoIP, data
operating at sea and on inland waterways,
VSAT can involve far more components, costs
transfer and web browsing. The package also
yachts and other leisure craft, H2OLiteSpeed
and companies, many of whom are not read-
benefits from partner H2OSatellite’s industry
allows crews, passengers or friends on‐board
ily recognisable, and this can mean those who
leading optimisation, e-mail and virus protection
the benefit of true high speed internet on
could make savings by fitting the technology
software and its 24/7-365 support guarantee.
demand and crystal clear high quality voice.
shy away from it. Recognising these types of
For customers, this is the ultimate European
H2OLiteSpeed is the ultimate maritime VSAT
concerns, a consortium was formed in 2009 to
broadband package, including installation, hard-
package, developed and delivered by experts
develop the H2OLiteSpeed solution. Bringing
ware, airtime, and one fixed monthly invoice for
and supported by a 24/7-365 commitment
together more than 20 years of maritime satel-
unlimited broadband starting as low as E198
wherever you are.
lite communications experience and Europe’s
per month for 512Kbp/s and E457 per month
leading satellite provider, the combination of
for 2Mbit/s, all backed by the reassurance that
SES ASTRA and H2OSatellite partnered with
they won’t face escalating costs and a nasty bill
cutting-edge in‐motion antennae manufacturer
at the end of the month.
KNS has resulted in a dedicated, superfast
Currently offering coverage throughout
maritime broadband package with the lowest
Northern European waters, the H2OLiteSpeed
For more information, please contact:
prices in Europe. Powered by ASTRA2Connect,
footprint will soon expand with the launch of the
Tel: +44 (0) 1925 818 918
Europe’s most successful broadband solution,
ASTRA 3B satellite to include the Mediterranean
Fax: +44 (0) 1925 814 192
the H2OLiteSpeed all-in-one package includes
sea, allowing more customers to make major
E-mail: info@h2osatellite.com
stabilised tracking antennae with dishes from
savings over alternative conventional maritime
Website: www.h2olitespeed.com
Indian Register of Shipping I
ndian Register of Shipping (IRS) is a classifica-
already combined its domain knowledge in
tion society dedicated to maritime safety and a
shipbuilding and the IT sector to bring out state-
clean marine environment.
of-the-art software, ‘SHIP_MATE’.
Established in 1975 to serve the Indian
Besides CAP & CAS, IRS also provides
maritime industry, its operations have since
Emergency Response Services, which are being
grown in scope and international reach. It
utilised by a number of ships.
Security Management System. IRS Industrial Services offers third party inspection, design evaluation, risk management and technical advisory services to various sectors, including the oil and gas sector. IRS strives to promote safety culture through its activities and interactions with all stakeholders
became an associate of the IACS in 1991 and
In keeping with the safety culture, IRS has
is recognised by the IUA, London under the
a well-structured training programme for its
Institute Classification Clause. Additionally, many
surveyors that meets IMO requirements and IACS
IRS actively participates in all the working
administrations have authorised IRS for statutory
quality standards. The seven-level programme
groups of IACS; and in IMO as part of Indian
surveys and audits under IMO Conventions and
offers customised training for the various levels
delegations.
Codes.
and the different roles that a surveyor would
With the sustained growth of the economy in
Presently, IRS has about 1,500 ships,
assume. IRS has introduced computer-based
the region, and the availability of young technical
including oil tankers, bulk carriers, LNG carriers
training modules for Initial General Training and
manpower, IRS is indeed optimistic about its
and chemical tankers, totalling about 10 million
Annual Survey to supplement its classroom and
growing influence in the maritime sector.
GT under its class and is fast expanding.
on-the-job training.
IRS services comprise a complete suite of
Apart from marine services, IRS also provides
solutions, which cover the entire lifecycle of
management system certification and industrial
the ship. These range from ship classification,
inspection sectors.
in the global maritime industry.
Indian Register of Shipping
technical advisory services and statutory
IR Quality Systems (IRQS) is accredited to
certification to IT solutions. A dedicated
provide certification for quality and environment
Powai, Mumbai 400 072, India
research team enables IRS to match its technical
management systems and TS 16949. IRQS
Tel: +91 22 3051 9400
proficiencies to world-class standards. This
also certifies companies under the Occupational
Fax: +91 22 2570 3611
strong R&D base provides IRS the technological
Health and Safety Management System, Food
E-mail: ho@irclass.org
advantage that it seeks to exploit. IRS has
Safety Management System and Information
Website: www.irclass.org
theBaltic June 2010 www.thebaltic.com
52 A, Adi Shankaracharya Road,
115
Commercial profiles
COMPASSng by DREAMTECH F
ounded in 1999, DREAMTECH develops
software exclusively for the shipping industry. COMPASSng is an easy-to-use application designed with the continuing help of shipbrokers and other shipping professionals and explicitly created to enhance the productivity of shipping companies worldwide. The core of COMPASSng is a messaging software platform which allows you to search through massive quantities of messages (e-mail,
• Management of newbuildings and contract • Detailed records of purchase inquiries and and
automated
matching
of
commercial advices with active purchase inquiries and vice versa • Send vessel particulars via e-mail, as stored in database, with a single-click • Record and search inspectable vessels in wide ranges of areas
fax, telex, text messages) in very little time. Furthermore, COMPASSng helps you create and
• Electronic filing of Sale & Purchase deals and
manage circular lists to distribute information to
projects, together with associated messages,
hundreds of people at the touch of a button,
notes and attachments.
using the fully integrated Address Book and Activity Planner.
COMPASSng features two specialised, fully integrated modules for shipbrokers: COMPASSng Sale & Purchase module Provides advanced functionality to streamline the job of Sale & Purchase Brokers: • User-friendly update of commercial advising information on a single screen • Detailed records of vessel particulars and commercial history
save
and
load
past
voyage
• Integrated utility for laytime calculation • Fixture book allows users to file all fixtures with
broker inquiries • Manual
• Create,
calculations for dry and tanker brokers
resales
COMPASSng Chartering module
comprehensive electronic filing capabilities • Quick Find for vessel positions. More advanced features of COMPASSng software include: • Full integration with instant messaging software, such as Yahoo! and MSN • Integration with PABX (ie dial phone numbers by pressing a button on COMPASSng Address Book) • Global access to the vessels database through mobile devices • Robust, scaleable and resilient software
Provides advanced functionality to facilitate the
architecture
job of Chartering Brokers:
performance and business continuity
• User-friendly vessel position update. Vessel position can be entered from the messaging screen
that
ensures
improved
• Auto-archiving capability for old messages Currently, DREAMTECH has clients in Europe, the USA and Asia.
• Quick update of Voyages, Time-Charters Trips, Period Fixtures and COAs • Advanced matching between open vessel positions vessels with cargoes • Send vessel charter descriptions and Chartering Requirements by e-mail with a
For more information please visit
single-click
www.dreamtech-software.com
LCH.Clearnet The world’s leading independent clearing house
O
ur experience as a clearing house goes
The benefits to trading parties are clear:
By
constantly
evaluating
counterparty,
• Significantly reduced counterparty risk.
market, legal and liquidity risk, we ensure that
more asset classes than anyone else globally,
• Increased trading opportunities.
margin cover is set at appropriate levels.
both exchange traded and over the counter
• Ability to net-off long and short positions,
back over a century, and today we clear
Driving all our risk management activities is a
(OTC).
leading to:
dedicated team of over 50 risk managers, who
• Uniquely, we have over 10 years’ experience
• Reduced costs of trading.
share a wealth of experience and a convincing
• Enhanced liquidity.
record of successfully managed defaults – both
of clearing OTC.
exchange-traded and OTC.
• We have a track-record of five defaults only clearing house to have managed an
Risk management is at the heart of what we do
OTC default.
We have an unequalled reputation for reducing
successfully managed, and in fact we’re the
• Our standards of risk management are second to none.
risk across a wide span of markets globally. We’re committed to setting and maintaining
• Our technologies are very, very intelligent.
the very highest standards, across all our
• And we’re independent – so ‘conflict of
services and all the asset classes we clear.
interest’ issues don’t arise.
Our robust risk management framework affords exceptional levels of protection to
Isabella Kurek-Smith
Why use a clearing house?
clearing members, as demonstrated by our
Director, Head of Energy & Freight Markets
A clearing house acts as a go-between when
successful handling of the Lehman Brothers
LCH.Clearnet
two parties trade. As guarantor of the trade, the
default well within the margin held, and without
Tel: +44 20 7426 7460
clearing house bears any monetary risk involved.
loss to any other members.
E-mail: Isabella.kurek-smith@lchclearnet.com
116
theBaltic June 2010 www.thebaltic.com
Commercial profiles
GFI Freight G
FI Freight provides brokerage service for
Trading technology
more than 150 clients worldwide from dedi-
GFI has been a pioneer in hybrid broking, offering
cated derivatives desks in London, New York,
electronic trading supported by experienced
Shanghai, Singapore, and Cape Town, thereby
voice brokers who provide market colour, insight
• Estimation capability for the expected FFA
providing round the clock coverage for both
and anonymity in a way that is simply not
settlement rates for the current month and
shipping companies, as well as banks.
possible through electronic trading alone.
• Period analysis functionality to compare route data for months, quarters, half years and calendar years;
historical average rate calculations; • Timecharter calculator to determine daily
The synergies between GFI’s wet and dry FFA
GFI has for many years seen the importance
and physical freight desks and other commodity
of applying technology to inter-dealer broking.
markets in which GFI operates (for example coal
This covers the whole life-cycle of a trade, from
• Daily summary of market closing prices for
and iron ore) enables GFI to provide tailored
pre-trade analytics through electronic trading
both physical and FFA markets, including
hedging strategies by looking at the total risk
to confirmation and post-trade straight through
across a wide range of markets.
processing.
• FFA options calculator to perform price
(to this rapidly growing market) by combining
Analytics, data, research & technicals
• Manage freight exposure;
longstanding relationships within the shipping
GFI is a market leader in providing pricing
• Hedge against freight costs;
market alongside with GFI’s global strengths in
and risk management tools. It draws on GFI
• Determine availability of timecharter routes.
commodity derivative broking.
FENICS® knowledge and experience gained
GFI’s commitment and support to the
from over 20 years of intuitive price discovery
industry remains absolute and as such GFI is
Benefits of partnering with GFI Freight
software to currency derivative markets.
proud to Chair both the dry and wet FFABA
• GFI Group is a leading intermediary with an
and related analytical tools for both wet and dry
unmatched presence in global derivatives
FFAs through a web-based resource FENICS®
and cash markets.
Freight, which is designed to give commodity
GFI Freight provides access to market prices
• Our focus on a client based formula allows
producers, time charterers, shipowners and
for greater depth of understanding of the
financial institutions an in-depth understanding
‘cross fertilisation’ across vessel types,
of market movements and potential trading
options delta and gamma hedging.
opportunities by facilitating price discovery,
• Partnership with two leading firms, ACM
daily physical market commentary; discovery and sensitivity analysis;
GFI Freight, together with ACM Shipping and McQuilling Brokerage, provide unrivalled access
profit opportunity;
• Evaluate trends across FFA contracts;
institutions.
trends and route analysis.
Shipping, one of the world’s leading tanker specialist in marine transportation of crude
Key benefits of Data, Research and Technicals
and petroleum products.
• Charting of historical trends in volatility/
brokers, and McQuilling Brokerage, a
• Synergies between GFI Freight and other commodity markets in which GFI operates. • Continued investment and development of
spreads; • Route analysis functionality to compare and chart route history;
Wet Freight (FFAs): futures@acmshipping.co.uk Dry Freight (FFAs): dryfreight@GFIgroup.co.uk Dry Freight: drycargo@GFIgroup.co.uk www.GFIgroup.com/freight
trading and analytical technology.
theBaltic June 2010 www.thebaltic.com
117
Commercial profiles
Copenhagen Business School Executive MBA in Shipping and Logistics (The Blue MBA)
T
he program aims to give participants up-to-
modules will deal with leadership issues and
date insight into shipping economics and
personal development.
“In shipping today, organisations must focus on managing through economic cycles, innovation,
For the final integrating strategy project,
finding new markets, understanding sustainability,
topics should be chosen for their strategic
and the best research and development. A practical
purpose
giving
approach to these challenges is the strength of the
shipping, integrating commercial, technological
participating companies a valuable and practical
Blue MBA, where participating executives gain a
and financial aspects as well as maritime law
analysis. The project serves two purposes: for
wealth of extra international experience from tutors,
and supply-chain management, and leadership
the candidate, the aim is to integrate topics
advisors and fellow students.”
challenges. In this way, graduates of the
covered in the program by using real world data
Prof Peter Lorange, member of the Blue
program develop a complete understanding of
on a problem related to the candidate’s own
MBA advisory board and professor of strategy
the challenges in this sector.
modern management theories and their application in the maritime sector. The program adopts an holistic view of
and
integrating
function,
company. For the candidate’s company, the aim
in the Blue MBA program, president of Lorange
The program takes students to a top
is to have a strategic issue thoroughly analysed,
Institute of Business in Zurich and Immediate Past
international level in business administration,
with proposed solutions and implementation
President of IMD, Switzerland
reflecting the needs of the industry in a world
plans.
where globalisation, enhanced competition,
Start of the next class: 26 September 2011
“The Blue MBA provides great insight into
market understanding, strategic planning, and
(with an optional pre-MBA program 21-23
essential aspects of the shipping and logistics
the speed of technological change place ever-
September).
industry; it gives the overview of the industry and it
increasing demands on executive management
dives deeply into fundamentals like the key drivers,
skills.
opportunities and risks for the various players in the
The program consists of eight one-week
industry. With world-class teaching staff and senior
modules plus a final integrating strategy project
participants from most parts of the industry, it is a
(thesis). The eight modules are delivered on
dynamic learning experience with a good coupling
a regular basis, spread over the duration of
between theory and practice.”
the program, supported by a virtual platform,
For further details please see:
where individual/group assignments and group
Website: www.shippingmba.com
Maritime Technology, AP Møller Maersk (Class
discussions enhance the learning process. All
E-mail: ir.mbs@cbs.dk.
of 2009)
Bo Cerup-Simonsen, Vice-President; Maersk
Curaçao Towage Company W
ith a fleet of powerful tugs, the Curacao
that our clients receive the most effective and
with state-of-the art fire fighting, salvage, and
Towage Company provides superior tow-
professional service.
telecommunications equipment.
age and salvage services in the Caribbean,
As experts in the towage and salvage field,
We pride ourselves on the proven strength
Central America and the northern coastal
our employees are involved in every stage of
and ability of our tugs, the engines and the
regions of South America.
client service, offering continual functional and
machinery, which we have used effectively since
technical support.
1985.
Our services include ocean towage, harbour and coastal services, barge and dredger
Our experienced employees have degrees
The Curacao Towage Company has the
transportation, fire fighting assistance, port
from Dutch nautical schools and constantly
expertise to turn strength into power; the power
and terminal towage, crew management and
keep up to date on the latest technological
to tow thousands of vessels a year. We have
training, and technical maintenance, all based on
developments. Our close relationship with the
the ability to provide a range of professional,
the Lloyd’s Register Quality Standards.
Dutch Marine Division makes its expertise,
reliable and efficient services, not only in the
support and guidance readily available.
bustling Curacao harbour, but also throughout
Our mission statement is: “Through expertise, strength becomes power” and our vision is
Our
extensive
skills
encompass
all
the Caribbean, Central America and the northern coastal regions of South America.
to position Curacao Towage as a strong and
aspects of implementation and operation,
reliable towage Company, serving both the
including business requirements definition and
Our exceptional team members, who all
domestic and international sectors.
development of functional specifications for
possess nautical, technical and management
client approval. Additionally, we offer continual
skills, as well as extensive maritime knowledge,
online client support and contact.
make the Curacao Towage a strong and reliable
We aim to exceed the expectations of every client by offering outstanding customer service, increased flexibility, and greater value, thus
Our powerful tugboats are available 24 hours
optimising system functionality and improving
a day, able to provide immediate assistance
operational efficiency.
company.
under any circumstances. Our ASD tugs can pull
For more information, please contact:
Our company is distinguished by its functional
at a 360º angle, making them exceptional guides
Tel: +599 9 461 1055
and technical expertise combined with hands-
for all kinds of ships manoeuvring in difficult
Fax: +599 9 461 2055
on, experienced employees, thereby ensuring
conditions. Our tugboats are all equipped
Website: www.ktktugs.com
118
theBaltic June 2010 www.thebaltic.com
Commercial profiles
AXSMarine arnessing the ‘bespoke’ power of the
H
professionals
as
Real-Time Position Lists, Tanker Registry,
internet to enable clients to refine, collate
Vessel Manager, Voyage Calculator, Cargo
Distance Tables, and our high-performance
and extract the precise information needed
Manager, Fixtures, Port Library, Distance
Voyage Calculator.
to be ahead of the game is what has driven
Table, Indices, and MS Outlook plug-ins, all
leading global software provider AXSMarine
drawing upon comprehensive and always up-to-
AXSOffshore
to develop some of the finest proprietary
date databases.
AXSOffshore is a fast and easy-to-use platform.
includes
modules
such
chartering software and database packages
Users enter their own private data realtime
available for the global shipowning, broking and
AXS-Alphaliner
in virtually all fields. Data entry plug-ins are
chartering sectors.
AXS-Alphaliner combines the world-renowned
available with MS Outlook. Access Vessel
Speed and efficiency is crucial when it comes
databases and information of Alphaliner with the
Technical Databases & Commercial Histories,
to data assimilation, but as important is knowing
equally lauded data treating and data sorting
Data-migration,
that the data you receive exactly fits your
technologies of AXSMarine. Users benefit from
Commercial Advice, Working Us, Market
requirements, when you need it.
Sales,
Valuation,
Enquiry,
Daily News, Weekly Newsletter, Market Reports,
Summary, Commitments, User-defined similar
That is where AXSMarine comes in. Its
Vessel Orderbook, Sales & Deliveries, Fixtures,
vessels and Positions and Fixtures.
services are designed to take advantage of what
Owner/Operator Details, Vessel Deployment,
is now referred to as ‘Web 2.0’, the second
Services & Rotations, and Top 100.
AXSAddressbook
generation of internet-based communities which
AXSMarine now provides the required expertise
aim to facilitate collaboration and information
AXSS&P
to shipping companies and shipbrokers to
sharing between users.
AXSS&P (Sale & Purchase) is a fast and easy-to-
correctly configure MS Outlook/Exchange with
use platform. Users enter their own private data
the correct common folder functionality and filing
decision-making
realtime in virtually all fields. Data entry plug-ins
needs previously only made available in bespoke
tools and databases for shipping industry
are available with MS Outlook. Access Vessel
messaging systems. It has developed a state-of-
professionals. Its online tools are secure, fast
Technical Databases & Commercial Histories,
the-art address book far outweighing anything
and easy to use, and the databases they
Data-migration,
available from MS.
source are always up to date. Because they
Commercial Advice, Working Us, Market
are internet-based, they are available from
Summary, Commitments and User-defined
any computer, anywhere; there is nothing to
similar vessels.
AXSMarine produces a complete set of interactive,
internet-based
Sales,
Valuation,
Enquiry,
download or install.
AXSTanker
E-mail: commercial@axsmarine.com
AXSDry
In this exclusive service offering reserved for
MSN Messenger: support@axsmarine.com
Our complete offer for dry bulk shipping
tanker brokers only, members benefits from
Yahoo! Messenger ID: axstanker
Heidenreich Innovations Safe and precise stowage of chemicals on tankers Can we load this cargo?
System
Our applications have been built on over
System
(MASS), integrated with MCIS, provides the
40 years of experience in the liquid chemical
(MCIS) is a database containing details on
most complete solution for stowage planning.
trade and this gives us a unique insight into the
over 10,000 chemical cargoes. MCIS is
With more than 10 policy checks, MASS ensures
requirements of tanker operators, charterers and
continuously updated with new regulatory and
the easiest and safest stowage for your vessels.
technical management.
safety information and is essential for ship
The policy checks included in MASS are:
Milbros
Chemical
Information
Milbros
Automated
Stowage
operators today. • Tank capacity • MCIS contains data on over 10,000 chemicals;
• Certificate of Fitness
• Chemical information updated daily;
• Heating adjacent
• Stand-alone version onboard your vessels;
• Tank coating suitability
• Network version available in office;
• Comminglability (local/related tanks)
• Complete integration with your operational
• Cargo stowage history (FOSFA) / (NIOP)
systems, your office and fleet systems are
• Cargo stowage history (inhibitor)
updated in minutes;
• Max heating temperature
• “Private Notes” lets you enter remarks on
• Heating medium
www.milbros.com
specification, cleaning, cargo handling and
Tel: +1 203 413 2030
chartering information.
E-mail: support@milbros.com
theBaltic June 2010 www.thebaltic.com
119
Commercial profiles
Fairmount Marine BV F
airmount’s main activities are long-distance ocean towage, salvage and heavy-lift trans-
portation. In order to meet the highest quality standards imposed by our worldwide clientele – an absolute requirement when it comes to the towage and installation of the largest and most valuable floating units in the world such as F(P) SOs, gravity base structures, semi-submersible and jack-up rigs – Fairmount Marine operates five long-distance towing vessels with anchorhandling capacities of no less than 205 tonnes bollard pull and an average age of less than two years. In addition to these five supertugs, we operate – together with our Japanese partner
in remote areas or areas where no large dry-
transportation, Fairmount Marine has positioned
Fukada Salvage & Marine Works Co., Ltd – a
dock is available.
itself in the premier league.
fleet of multipurpose offshore support vessels
Fairmount’s staff of professionals both onshore
and semi-submersible barges. Amongst them is
and offshore is entirely dedicated to providing
the biggest semi-submersible barge in the world,
Fairmount’s
the 50,000 dwt giant Gavea Lifter. These barges
solutions for demanding towage and transportation
are perfectly suited for the transport of jack-up
assignments, worldwide. Fairmount’s quality
rigs, modules, topsides and any other (general)
management system and safety, health and
heavy and oversized cargoes. Furthermore, in
environment protection measurements are second
addition to providing a means of transport, they
to none and form an integrated, vital part of all
tel: +31 10 240 2500
have proven to be a perfect platform for dry-
operations. Building on the legacy of Holland as
E-mail: sales@fairmount.nl
docking of semi-sub rigs, drillships and vessels
the cradle of ocean towage and special marine
Website: www.fairmount.nl
clients
risk-free,
It is our goal and our duty to surpass clients’ expectations, every day.
high-standard
A small fleet doing big things! H
artel Shipping and Chartering was founded
September 2010 and June 2011. These vessels
in December 1990 by John Brobbel and
will be placed in our regular service to the Black
Worldwide traders, expected May/ August 2010
Sea.
mv Rhoon
mpp/tween, 1 ho/ha 7,000 dwcc geared
mv Brielle
mpp/tween, 1 ho/ha 7,000 dwcc geared
Associates. The company was started with the support of major trading companies involved in
With our experience of handling project
shipments of ferro alloys and non-ferrous met-
cargoes we took the opportunity to enter
als. In the pursuing years, increasing demand
worldwide trade. To facilitate this, we have
Nowadays we enjoy the support of many
for trading tonnage between Europe and the
taken on two geared (2x80mt) 7,950 dwt mpp
recognised European forwarding companies and
Black Sea gave Hartel, in 1996, the opportunity
tweendeckers ice1A on long-term timecharter.
exporters. We are a small company doing big
to take their first 1,500 mt vessel on long-term
These newbuildings have a unique concept, with
things, with dedication.
timecharter.
an unobstructed hold of 83.7 metres; we expect
Thereafter, Hartel developed their regular
delivery from the shipyard in September 2010.
service from Baltic/Continent to Mediterranean/ Black Sea. Throughout this time, Hartel has
HARTEL
Our fleet;
become more involved in project and heavy cargoes, ie generators, transformers, crane
Baltic/Continent – Med/Black Sea
parts, and large deck cargoes, including motor
mv Oostvoorne
sid coaster, 1 ho/ha 2,500 dwcc
yachts.
mv Westvoorne
sid coaster, 1 ho/ha 2,500 dwcc
Please contact our motivated team to take
mv Rockanje
sid coaster, 1 ho/ha 2,500 dwcc
extra care of your precious cargo:
mv Annette
sid coaster, 3 ho/ha 4,000 dwcc
Hartel Shipping & Chartering BV
The name of Hartel is well known within our trading area and we have a reputation for reliability and punctuality. Since 2005, we
Goudhoekweg 14
have also had our own tonnage, mv Brielle
Expected September 2010/June 2011
3233 AM Oostvoorne
and mv Rhoon, (2,300 mt dwt). The mv Brielle
mv Geervliet
tween, 1 ho/ha 3,000 dwcc
Netherlands
has recently been sold and a new fleet of four
mv Heenvliet
tween, 1 ho/ha 3,000 dwcc
Tel: +31 181 486 222
3,500 dwcc tween/box ice1A vessels have
mv Hoogvliet
tween, 1 ho/ha 3,000 dwcc
Fax:+31 181 486 152
been ordered and will be delivered between
mv Haringvliet
tween, 1 ho/ha 3,000 dwcc
E-mail: mail@hartel.nl
120
theBaltic June 2010 www.thebaltic.com
Commercial profiles
Grieg Star Shipping G
rieg Star Shipping AS (Star) is in charge of
New trades are evaluated and added as the
contracts and tramping. The flexible ships carry
the worldwide marketing and operation of
fleet grows. The most recent addition is a service
a variety of cargoes such as coal, coke, alumina,
the Grieg Group’s fleet of advanced open hatch
from Chile to the Mediterranean, with forest
fertilizers, ores etc.
vessels, as well as a fleet of conventional bulk
products and project cargoes.
carriers.
Both divisions enjoy the support of skilled
Star has designed and built cargo handling
operations managers and port captains located
Based in Bergen, Norway and with 16 offices
equipment ranging from pulp frames capable of
both in the headquarters and in the branch
in strategic locations in Asia, Australia, USA,
loading 56 tonnes in one lift, to vacuum clamps
offices. This allows for quick and accurate
Canada and Europe, Star’s open hatch division
for paper rolls with capacity up to 35 tonnes.
solutions to the often-complicated stowage.
run the specialised ships in regularly scheduled
These, as well as grabs and other special
They also frequently attend to the load and
break bulk parcel trades. Export trades, based
cargo handling gear, are serviced in their own
discharge to ensure safe and efficient operations.
on North American forest products, aluminum
workshops in Vancouver and Rotterdam.
In addition to the advanced ships and cargo
subsidiary
handling equipment, Star provides IT solutions
and south Europe, is a substantial part of their
Atlanticargo AB uses available space on the
enabling shippers, forwarders and agents
business.
regularly scheduled open hatch vessels to move
to handle everything from documentation to
project cargoes worldwide.
customs papers.
and other break bulk cargoes to Asia, north
The design features of the open hatch ships
The
Gothenburg-based
(removable tween decks, gantry cranes up
The Grieg group has just taken delivery of
to 68 mt, rain protection over unobstructed
two new state-of-the-art open hatch vessels,
holds, cell guides) allow for fast and safe
and two more will be delivered during the spring
handling of project cargoes, pipes, wind mills,
of 2010.
metals, newsprint, containers and bulk cargoes.
The Conventional Division of Star operates
Shippers welcomed these features when Star
a modern fleet of about 20 geared and grab-
built up their successful trades from Asia and
supplied conventional ships ranging from 25,000
All Star offices welcome your freight inquiries.
Europe back to both coasts of North America.
to 55,000 dwt trade worldwide, combining
Website: www.griegstar.com
Combi Lift K/S C
ombi Lift’s main activities are worldwide ocean
Mission: Combi Lift’s mission is to put
transportation of heavylift and project cargoes,
customers and clients first, through meeting
and today Combi Lift is one of the world leaders
and exceeding their expectations. We do this
within this segment. The current fleet consists of 14
by providing tailor-made heavylift transportation
heavylift carriers, including four semi-submersible
solutions which are characterised by being safe,
dock vessels with the ability to load and discharge
innovative and reliable. Our mission also extends
cargoes by means of lifting, rolling or floating the
to our employees and our fleet, both aspects of
same. In addition to the existing fleet, Combi Lift
our business in which we will continue to invest
currently has a newbuilding programme for two
substantially.
heavylift vessels which will be delivered during
Vision: Our vision is to position Combi Lift as a
2010. The main philosophy of Combi Lift is to combine the best expertise allowing us to lift the various
QHSEP Policy: On 5 September 2007 K/S
leading company in heavylift ocean transportation
projects with the highest standards and quality.
Combi Lift and Combi Lift (Germany) GmbH
and logistics, setting the highest standards through
were the first companies worldwide, within
sound business ethics, inspirational leadership and
Chartering and operation: The chartering
their segment, to obtain DNV certifications
integrated QHSEP best practices.
and operation departments are situated in Korsoer;
for fully implementing all three Management
the two departments comprise a team of skilled
System Standards, both ashore and on board
personnel. Combi Lift is able to provide customers
their vessels. In addition to the certification,
with a service that suits their requirements.
Combi Lift updated the OHSAS 18001 standard
Contact details:
certification from the 1999 standard to the new
Anders Poulsen C.O.O.
Engineering: The engineering & technical
2007 standard. Once again, Combi Lift is the first
Combi Lift K/S
management is run by Combi Lift (Germany)
heavylift carrier in the world to obtain this updated
Batterivej 7-11
GmbH in Bremen. Working with an experienced
standard. Combi Lift views the ISO certifications
4220 Korsoer
staff of master mariners, naval architects
as a key to upholding and maintaining good
Denmark
and welding experts, Combi Lift is able to
business practices. The company’s QHSEP
Tel: +45 5816 2030
provide tailor-made solutions that suit individual
policy ensures continuous improvement in
Fax: +45 5816 2025
customers’ demands and expectations.
its Quality, Health, Safety, Environment and
E-mail: mail@combi-lift.eu
Pollution Prevention management activities.
Website: www.combi-lift.eu
theBaltic June 2010 www.thebaltic.com
121
Commercial profiles
MMHE Highlights M
alaysia Marine and Heavy Engineering’s
April and August respectively. The conversion
structures like semi-submersibles and SPARs.
(MMHE) performance is driven by three
of the FPSO Ruby II was undertaken, the
Modular structures for FPSO topsides can also
core businesses: engineering and construction,
company’s first full engineering, procurement,
be built completely in the workshop, with its
marine repair, and marine conversion. It has
construction and commissioning (EPCC) FPSO
available height and floor space.
grown to become an integrated engineering,
project. MMHE was responsible for the EPCC of
procurement and construction contractor for
the conversion works on the facility.
The West Finger Pier comprises of a jetty and material handling quay (MHQ). The jetty is
high tonnage offshore oil and gas structures.
Currently, MMHE is currently busy with the
specifically designed to take berthings of up to
MMHE is capable of undertaking repair services
Construction of the Gumusut Kakap Floating
390,00 dwt of VLCC for repair, and conversion
on a complete range of vessels such as LNG
Production Unit (FPU) – a deepwater semi-
works of FPSO. The MHQ can accommodate
carriers and VLCCs, as well as various types
submersible facility. This is MMHE’s second
material delivery barges of up to5,000 dwt.
of floaters and a one-stop centre for FPSO and
deepwater project, following the successful
MMHE offers clients a one-stop solution in
FSO conversion.
completion and delivery in September 2006 of
areas such as LNG carrier repair, VLCC/tanker
2009 was another busy year with successful
the Kikeh DTU Truss Spar. Other engineering
repairs, FPSO/FSO conversion and various kinds
completion and delivery of significant projects to
and construction projects include Tangga Barat
of floaters, as well as deep-water development
local and international clients. The marine repair
Central Processing Platform, Kinabalu Gas
facilities for the oil and gas sector.
business remained resourceful, undertaking
Processing Platform B, and the BP Angola
major repair works in for LNG and LPG carriers,
Turret, to name just a few.
PLO 3
ULCC, VLCC, and chemical and product
MMHE has recently completed added new
tankers. Last year MMHE adeptly repaired 68
facilities, to its operations, namely a new cutting
81700 Pasir Gudang
vessels from worldwide orders that came from
and assembly workshop and West Finger Pier,
Johor
repeat business and new clients.
to further support its activities in the marine and
Malaysia
Amongst the projects delivered were the
heavy engineering arena. The new workshop
Tel: +607 268 2111
eight-legged B11K-A substructure and the
is designed to cater for fabrication of 1,200
Fax: +607 251 3997
B11K-A topsides to Sarawak Shell Berhad, in
mt blocks, especially for bigger deep-water
E-mail: marketing@mmhe.com.my
Jalan Pekeliling
Concateno
When it matters most
D
rug and alcohol use can create tough
Concateno in numbers
of care testing, and are always in pursuit of faster
challenges, impacting on communities, the
• 10 million tests conducted each year
and more sensitive tests.
workplace, families and individuals. Every day our customers take on these challenges – often making difficult decisions that will affect the health and well-being of those in their care.
• 8,500 customers from across all industries, healthcare and government bodies • 600 sample collection officers – a global network, from Adelaide to Aberdeen
Concateno has three UKAS accredited laboratories, each dedicated to the analysis of a specific sample type – oral fluid (Abingdon, Oxfordshire), urine (Canary Wharf, London), and
• 130 countries in which we have customers
hair (Cardiff, Wales). These laboratories can also
timely and accurate information that they need
• 75 police forces rely on our services
handle other sample types such as blood, if
to make these important decisions.
• Three world-class accredited laboratories.
required.
Concateno provides customers with clear,
We do this by getting closer to the people we
No other company can provide Concateno’s
Concateno maintains the highest levels of
support, understanding their work and shaping
combination of skills, services, testing products
internationally recognised accreditation and
our services around their requirements.
and international reach. We have dedicated
quality standards in the industry. We have
divisions specialising in the following areas:
quality accreditations for laboratory analysis,
and testing capabilities – spanning laboratory,
• Child Protection
office management, customer service systems
point of care tests and all sample types – means
• Clinical Diagnostics
and laboratory products, which are audited and
that we have both the ability and the flexibility
• Employee Services
monitored independently.
to create a solution that is right for each client.
• Criminal Justice
An unparalleled breadth of advisory services
Concateno strongest
and
brings most
together experienced
Europe’s testing
• Healthcare • Maritime.
To find out more, contact us:
organisations and over 60 years of collected
Concateno takes a pioneering role in pushing
expertise. We have a vision of how organisations
forward the science and technology of drug
Harbour Quay, 100 Preston’s Road,
needing drug and alcohol testing should be best
and alcohol testing. We are developing tests
London, UK, E14 9PH
served; through unbiased, scientifically driven
to detect newly emerging drugs of abuse,
Tel: +44(0)20 7712 8000
and informed drug testing, delivered to the
improving the performance of our laboratory
E-mail: maritime@concateno.com
highest standards.
instruments, extending the capabilities of point
Website: www.concateno.com
122
theBaltic June 2010 www.thebaltic.com
Concateno
Commercial profiles
JSC Sovfracht J
SC Sovfracht was formed in 1929 and during the Soviet period was the only governmental
Sovfracht is the general worldwide agent for the Russian Navy.
JSC “Sovfracht”
body in the USSR associated with chartering
At present, Sovfarcht has 25 affiliated
of the whole Soviet fleet and all types of cargo,
transport companies and regional representative
both export and import.
offices to render a full range of shipping and
Sovfracht is the oldest and one of the most experienced chartering companies in Russia. The company is a member of BIMCO and the Baltic Exchange. The company’s fields of activity include: • Dry cargo chartering • Handysize and handymax, coasters and river-sea ships
For more information, please contact: “Marine House”
logistic services in Russia, C.I.S. and the Western world. The company owns and efficiently operates
127994 Moscow, Rakhmanovsky per. 4, bld.1
railroad wagons, river-sea ships, port complexes,
Tel: +7 (495) 258 2741
container terminals and lorries.
Fax: +7 (495) 258 2854
Sovfracht also, together with the Russian Navy
fleet,
participates
in
Russian
and
E-mail: stepanyan@sovfracht.ru Website: www.sovfracht.ru
international projects in oil and gas research
• Project and heavy-lift cargos
in the Russian Far East areas Sakhalin and
Shipping Department
• Shipmanagement
Kamchatka.
Tel: +7 (495) 258 2864, 721 1941
• Agency • Sale and purchase
Additionally, Sovfracht is one of the top 10 transport companies in Russia.
Fax: +7 (495) 258 2876 E-mail: shipping@sovfracht.ru
The company constantly develops strategies and tactics to meet market challenges. It has ambitious goals for the future, and all the opportunities and capabilities to reach them.
IMSA Ltd IMSA Ltd is a high end specialist maritime
hardening, training, mentoring and security to
who have also had extensive experience in
security company with three areas of business:
ships operating in piracy-prone areas. Our belief
commercial maritime security. Their combined
consultancy, operations and training.
is that this can normally be achieved without
experience is second to none, and coupled
Although IMSA’s people, without exception,
resorting to arming our people. When there is
with their breadth of technical knowledge
have many years of maritime security experience
no alternative but to arm, however, we provide
and contacts within the international shipping
as individuals, the company cut its teeth
not only people with a lifetime experience of
industry, IMSA is able to offer unparalleled
providing consultancy advice for ports in the
weapons at sea, but also requalify them on
advice, training and security provision that is
run-up to ISPS Code vesting day in 2004. The
ranges as part of mobilisation, certificating them
widely regarded as industry best practice.
advice took the form of security audits and
accordingly for clients’ peace of mind. IMSA has
IMSA is based in Poole, and whilst it has
surveys of existing infrastructure and practices,
also put much thought into the difficult question
the necessary critical mass to tackle projects of
assistance with writing port facility plans and
of responsibility when weapons have to be used
almost any scale, is still small enough to be able
implementation of new procedures to ensure
in anger on board a civilian manned ship. The
to react personally and swiftly to a client’s needs.
compliance with the new Code. This advice
company’s solution has resulted in an innovative
was given to port authorities and governments,
approach to Rules for the Use of Force, which
and the underlying added benefit was the
goes a long way to removing the headache of
improvement in efficiency that accompanied
“Who’s in charge?”
IMSA Ltd
improved security procedures. Subsequently,
IMSA’s training department teaches ISPS
the company has provided security consultancy
Code accredited Ship, Company and Port
Fleetsbridge, Poole, Dorset,
on a range of projects from newbuild LNG
Facility Officer Security Courses.
United Kingdom BH17 0HL.
Marine Skills Centre, Fleets Corner,
production plants to specialised offshore
Major security providers frequently boast
operations in high risk areas, to the provision of
a maritime capability they simply do not have.
Fax: +44(0)1202 606521.
interdiction craft to protect afloat assets.
IMSA’s Associates are former Royal Marines or
SKYPE: IMSALTD
Royal Navy people with maritime backgrounds,
E-mail: info@imsaltd.com
IMSA’s people provide survey, preparation,
theBaltic June 2010 www.thebaltic.com
Tel: +44(0) 1202 696677 (24 hrs)
123
Events
What’s on where A round-up of conferences, exhibitions and events in the shipping world
June 1
Oslo
July 1-2
Singapore
September 24-25
Mumbai
Tradewinds: Oslo Shipping Forum
Advanced Freight Modelling and
India Shipping Summit
Designed and produdced for shipping ceos
Trading
A forum to address the most topical issues
from listed and private shipping companies,
Trading strategies for FFA players
affecting India’s shipping industry
brokers, key investors in shipping, bankers and
www.balticexchange.com/training
www.indiashippingsummit.com
entrepreneurs August 24-27
www.nhstevents.com June 2-3
Oslo
Stavanger
September 28-29
Offshore Nothern Seas
Marine Money Asia
A look at the political, ecoonomic and
www.marinemoney.com
Introduction to Shipping
technological issues surrounding the
A course for those who have recently started
international oil and gas industry
October 05
their profession in the shipping industry, those
www.ons.no
Greek Shipping Summit
Singapore
Athens
www.greekshippingsummit.com
who have a general interest in the industry or those who have worked within shipping for a
September 7-10
short period of time
SMM
October 17-19
www.bi.no/introshipping
The ‘must attend’ event in the shipbuilding
Coaltrans World Coal Conference
calendar
Europe’s leading coal industry gathering
June 7-11
Athens
Hamburg Amsterdam
www.hamburg-messe.de November 1-2
Posidonia The top marketplace for shipbuilders, suppliers
September 12-24
of ships’ equipment and shipping-related
Anatomy of Shipping
Management
services
For those needing the big picture, whether
Managing freight, bunker, interest and
www.posidonia-events.com
through changing roles, entering the industry for
counterparty risk
the first time or as a refresher
www.balticexchange.com/training
June 22-24
New York
Cambridge
www.seatrade-global.com November 3-4
Marine Money September 16
www.marinemoney.com/forums June 28-29
Singapore
Freight Derivatives and Shipping Risk
London
Freight Derivatives and Shipping Risk
Rio de Janeiro
London
Advanced Freight Modelling and
Latin America Ship & Offshore Finance
Trading
Forum
Trading strategies for FFA players
www.marinemoney.com
www.balticexchange.com/training
Management Managing freight, bunker, interest and
September 16
counterparty risk
Baltic Exchange/FFABA Global Freight
Seatrade Middle East Maritime
www.balticexchange.com/training
Derivatives Forum
Including Middle East Money & Ships
The freight derivatives industry’s key gathering
www.seatrade-middleeast.com
June 29-30
Dublin
Shanghai
October 26-28
Dubai
www.balticexchange.com/shanghai2010
3rd European Shortsea Congress
November 22-25
Two days of top-level discussion and
Practical Dry Cargo Chartering
networking
4 day hands on training course run by the Baltic
www.navigateconferences.com
Exchange and Cambridge Academy www.balticexchange.com/training
124
theBaltic June 2010 www.thebaltic.com
London
At IRCLASS,
At IRCLASS,
classification is not just about
classification is not just about
compliance with the rules.
compliance with the rules.
It is our partnership with you to ensure
It is our partnership with you to ensure
your ship’sconstruction construction quality, your ship’s quality, operational safety operational safety and your business efficiency. and your business efficiency. At we combine combineexperience, experience,expertise expertise and understanding At IRCLASS IRCLASS we and understanding with technology, and a professional team technology,worldwide worldwideoperations operations and a professional team to to achieve justjust this. achieve this.
VISIT US AT THE INDIA PAVILION, STAND 274
Discover More With Discover More With
IACS ASSOCIATE & RECOGNIZED BY IUA, LONDON
IACS ASSOCIATE & RECOGNIZED BY IUA, LONDON
52-A, A.S.Marg, Mumbai 400072, INDIA, +91-22-30519400, Fax: +91-22-25703611, Email: ho@irclass.org
52-A, A.S.Marg, Mumbai 400072, INDIA, +91-22-30519400, Fax: +91-22-25703611, Email: ho@irclass.org
Dedicated to safer cleaner seas
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