the Baltic
the
Freight derivatives market looks East SEPTEMBER 2010 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
SEPTEMBER 2010
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the
BALTIC Editor’s letter
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 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 and is supplied to members as part of their annual membership package. However, the views expressed in The Baltic are not those of the Baltic Exchange, its directors, its officers or the publishers unless
theBaltic
expressly stated to be such. The Baltic
the
Exchange is the world’s premier and oldest international shipping market. Most of the world’s open market bulk cargo chartering
Freight derivatives market looks East
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 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
SEPTEMBER 2010
and has no legal responsibility to deal with them. The responsibility rests solely with the publisher. 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
OFC.indd 1
SEPTEMBER 2010
C
hina is the engine driving much of the change in the shipping sector today – increasingly as a direct player in the market, as well as a consumer of shipping services. The Baltic Exchange will be holding its annual FFABA meeting in Shanghai later this year, strengthening links between the Baltic Exchange and shipowners, brokers and charterers in this vital region. In the cover story, Neville Smith looks at the development of the derivatives market in the Asia Pacific region, and its likely role in the future. Elsewhere in the magazine, we look at the continuing problem of piracy and the efforts that the shipping industry is making to deal with it, as well as what it means for owners and charterers. BIMCO ‘Green’ shipping and the prevention of pollution continue to be major concerns, for the industry with the IMO preparing to debate measures for the reduction of shipping emissions this autumn. We look at the problem from a variety of angles, including the long-term effects of the Deepwater Horizon oil spill for the offshore industry and the shipping support sector. The Baltic Exchange continues to play an important role in providing social and networking events – as our reports from the Baltic Exchange cricket match and tennis tournament show.
26/08/2010 10:30
theBaltic September 2010 www.thebaltic.com
1
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First-tier functionality, right out of the box.
Contents 1 Editor’s letter Chairman’s message 7 Mark Jackson 7
Industry News 9 People, places, plcs Baltic briefing
10
11
Offshore disputes
11
Baltic Exchange training courses
11
PR for maritime companies
12 Freight Derivatives Forum: Shanghai 12 Honorary life membership for IMO secretary-general 13 New sales & marketing manager
24
25
14
$600,000 raised for the Sailors’ Society
16
Baltic vs Lashings
18 Fehr Cup tennis tournament celebrates 75th anniversary 20
Wine notes
22
Sporting contacts Key Baltic Exchange contacts
Logbook 23
Workhorses of the sea
Baltic Comment 25
29
Michael Grey
State of the market 27
Tankers
30
BIMCO
33 Heavylift
47
37
S&P
39
Towage & salvage
41
Dry bulk
42
Shipmanagement, crewing and education
theBaltic September 2010 www.thebaltic.com
3
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Contents Environment 55 Green shipping Oxford Analytica 58 BP spill changes global offshore outlook 56
FFA 61
Building the Asian market
Ship agencies 69 Looking beyond the port 65
Maritime security 72
Theory into practice
74
Ship detained? It’s still on hire
Registration 83 Inspection gets tougher 70
84 News round-up Cargo focus 85 Containers Geographical focus
86
87 Upper Gulf Port focus 91 Germany Insurance 93 Insurance parlance
91
94 ITIC Legal news 96 Legally speaking 97 Commercial profiles
96
IBC Events
theBaltic September 2010 www.thebaltic.com
5
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COMMODITIES | EQUITY & FINANCIAL DERIVATIVES | ENERGY | FIXED INCOME | FREIGHT | SECURITIES | INTEREST RATE SWAPS
Chairman’s message Mark Jackson
Chairman’s message S
eptember sees the Baltic Exchange once again in Shanghai: on this occasion bringing together senior traders and brokers active in the global dry
FFA market for our Freight Derivatives Forum. The event is one of many Asian events and meetings in the Baltic Exchange calendar and we hope that this forum will help attract greater interest and understanding of freight derivative trading in China. When compared with the European market, Asian FFA trading volumes seem small and do Tradewinds
not yet reflect the region’s physical shipping importance. After all, this is a region which generates three-quarters of global iron ore trade, over a third of world oil demand and plays a huge role in shaping the shipping markets.
Mark Jackson
Over half of the Baltic Exchange assessments for the tanker and dry freight markets have an
market assessments, how the forward curves
To this end we have already opened a
Asian element. From Middle East crude oil to
are constructed and why participation in the
representative office in Singapore and are
Singapore, South American iron ore to Qingdao,
various Baltic freight market users’ groups is
gearing some of our route reporting times to
Indonesian palm oil to Europe, or our east coast
important. Beyond the freight derivatives market,
the Asian markets. We run training courses
India to China iron ore assessment, the Baltic
we need to ensure that there is a commitment
for the freight derivatives industry in Singapore
Exchange is at the heart of the Asian shipping
to the concept of doing business enshrined in
and are currently in discussions with a leading
markets, providing shipowners, charterers and
our motto “Our word our bond”. The smooth
Chinese university to offer more in-depth training
traders with an unbiased and accurate picture of
running of the shipping markets relies on trust
across other commercial areas of shipping in
daily freight rates.
and it is vital that we continue to work on this
Shanghai. We hold regular Asian freight market
I believe that we can help increase the
basis. Joining the Baltic Exchange sends out a
information user group meetings and are keen
number of companies trading freight derivatives
clear message to customers and competitors
to get as many Asian companies embedded in
in Asia by demonstrating to potential market
alike that your company operates to the highest
the fabric of the Baltic Exchange as possible.
participants
ethical standards.
We have seen the push in Asia lead to more
how
the
system
is
solidly
underpinned by the Baltic’s freight market
However, we cannot simply assume that
Asian members than ever before. We now have
information and showing how companies
a great brand name and three centuries of
nearly 400 individual members in the region. This
have successfully devised and implemented a
history are going to be enough to send out a
is the fastest growing area for Baltic Exchange
freight risk management and trading strategy
clear message that the Baltic Exchange has
membership and is very much a direct result
which has enhanced their business. If this
something to offer the Asian shipping, finance
of the investment of opening a Singapore office
market is to take off in a meaningful way,
and trading communities. The Baltic Exchange
in 2006.
we need to ensure that Chinese charterers,
is a global organisation which represents global
I expect that in future we will see greater
shipowners and banks understand what the
shipping interests. We are not just the London
Asian representation on our board and that
Baltic Exchange’s independent services are;
market. We may be headquartered in London,
we will spend increasing amounts of our time
why they can be confident in their robustness
which has historically been the world’s most
focusing on Asia-specific issues. In the coming
and of what relevance they are to their day to
important shipping centre, but we are geared
years we will see our physical presence in the
day business. Companies need to understand
towards providing services which are relevant to
region grow and will offer more to the market
the Baltic’s methodology for arriving at the daily
maritime interests around the world.
than ever before.
theBaltic September 2010 www.thebaltic.com
7
Port call one hour ahead
20 nautical miles from here By then, we will have … • • • • • •
made 30 deliveries to vessels had boarding officers on board 6 vessels carried out safety services on 2 vessels processed more than 135 transactions produced 15,000 litres of chemicals carried out 4 customer visits
Making every port your home port
As the world’s leading maritime service network, we strive to get your vessels in and out of port as quickly and efficiently as possible. www.wilhelmsen.com/shipsservice
People, places, plcs
Industry news Baltic updates TCE assessments
expertise in the dry cargo market is an ideal fit
2004. Since then we have grown and established
for the Group, and we look forward to working
our position here in Germany, and today we have
The Baltic Exchange has switched to calculating
with our new colleagues in driving the business
an expert German staff and strong relationships
its Tanker Time-Charter Equivalent Assessments
forward.”
with German banks, charterers and investors.
(TCEs) based on bunker prices in line with the
Johnny Plumbe, chief executive of ACM said:
By buying out our partners we become a little
bunker swaps market. The move is designed to
“This acquisition is a strategically important step
more nimble and ready to move swiftly to take
stimulate freight derivative trading.
for ACM as it diversifies our earnings while using
up opportunities that the global recovery may
In future, the basis for TCE conversions
the Group’s already established and significant
present. As we are currently predominantly a
on various routes will be Rotterdam 380 cSt,
expertise in shipbroking. Endeavour is highly
tanker owner we have not been as hard hit as
Rotterdam 380 cSt max 1% sulphur or Singapore
complementary with our recently started venture
some in the German shipping community, which
380 cSt. Diesel or gas oil requirements will not
for dry cargo in the UK. These dovetail and will
had such a strong containership focus, and we
be taken into consideration and the parameters
allow us to start to serve the dry cargo market
are poised for growth. Hamburg has shown itself
of the Baltic Exchange calculations have been
worldwide.
to be an excellent base from which to operate
“We anticipate the acquisition will be
a high quality global shipping group, and we
All TCE voyage descriptions will also continue
earnings enhancing in the first year within the
expect to grow further here as the recovery
to be available on www.balticexchange.com
Group. This is a major step forward in achieving
strengthens and opportunities arise.”
together with port costs supplied by Cory
our strategy of building a complete shipbroking
Brothers Shipping, and exchange rates used
business utilising our considerable client base
in the calculations provided under licence by
and infrastructure and giving a first-class service
Eitzen/Ultragas
XE.com.
to the industry.”
Navieras Ultragas Ltda has acquired Camillo
amended accordingly.
The calculation process is a transparent one,
Eitzen’s majority shareholding in Eitzen Bulk
with subscribers to the Baltic Exchange’s freight
Shipping. The 74.33% shareholding, priced at
market services now able to access a voyage
Galbraith’s
$93 million, represented Camillo Eitzen’s entire
calculator which shows all the parameters set
Managing director Nick Hubbard has left
shareholding in the business.
when arriving at the TCE rates. They can also
Galbraith’s, the shipbrokers and consultants.
Navieras Ultragas Ltda. has also undertaken
adjust parameters in the voyage calculator to
Hubbard joined Galbraith’s in June 2009.
a mandatory public offer for the remaining
reflect details of their own business.
Charles Fowle, a long-time Galbraith’s director
outstanding shares in Eitzen Bulk Shipping.
TCE calculations were previously based on a range of bunker prices, including Aruba, Augusta,
and head of the tanker department, has been appointed chairman.
Hafnia Management
Fujairah, Philadelphia and Wilhelmshaven.
Hafnia Management A/S has begun chartering
Hellespont
activity in the LR1 sector, and will be active in
ACM/Endeavour
The Hellespont group has strengthened its
the MR segment from August. Hafnia Tankers
ACM Shipping Group has acquired Australia-
global base in Hamburg, Germany by buying out
will market and operate product and chemical
based
Endeavour
the two minority partners in its Hamburg-based
tankers from owners including Lauritzen,
Shipbrokers for AU$10 million (£5.8 million). This
shipmanagement company and reshaping its
Gotlandsbolaget,
acquisition takes the Group into the dry cargo
corporate organisation.
Skagerack Invest and Marinvest in both sectors.
dry
cargo
specialist
Nordic
Tankers,
LGR,
market and is in line with ACM’s stated strategy
The 25% each minority interests held by HCI
Hafnia Tankers is under the control of the
to become an integrated global shipbroking
Capital AG and Peter Doehle Schiffahrts KG in
designated management team of Anders
services provider. Endeavour concentrates on
Hellespont Hammonia GmbH & Co KG have
Engholm, ceo. Commercial directors Peter
the growing Asia Pacific dry bulk market and has
been bought out. Hellespont Hammonia has
Larsen and Søren Steenberg will join the
a wide range of global clients, including major
been renamed Hellespont Ship Management
business after the completion of their current
world recognised blue chip mining, industrial and
GmbH & Co KG, and is now a wholly-owned
‘gardening leave’ periods. Michael Rasmussen,
agricultural companies, as well as shipowners
subsidiary of the Hellespont group parent
senior operational manager, Martin Lorenz,
and operators.
company, which has been renamed Hellespont
senior chartering manager; and Søren Skibdal
Deutschland GmbH.
Winther, senior chartering manager, have already
Terry
Karadanais,
ceo
of
Endeavour,
commented: “ACM’s strength as a global
Phrixos Papachristidis, Hellespont group
shipbroking business is an excellent platform for
ceo, says: “We entered the German market
the Endeavour team to continue its growth. Our
cautiously with the help of two good partners in
theBaltic September 2010 www.thebaltic.com
started work at Hafnia Management.
9
People, places, plcs Braemar
Chinese project and heavy lift market. Simon
to invest $250 million in its Reach initiative,
Braemar Shipping Services says its first quarter
Jiang, with more than 10 years of experience
intended to create the world’s fastest trading
results are in line with its expectations and
as chartering and sales manager in worldwide
engine, establish a world-class data centre
ahead of the same period last year. In an Interim
shipping, has been appointed branch manager.
and seamlessly connect trading communities
The
on
in Chicago, New York, Tokyo and London
quarter of the financial year beginning 1 March,
the expertise of both China Shipping, with
to Singapore. These four hubs will radically
group chief executive Alan Marsh said: “Market
its
lower
activity and transaction volumes have both
Jumbo Shipping, with its rich experience in
been pleasing. The dry bulk chartering market
heavy lift transport.
Management Statement covering the first
CS-JHL
excellent
joint
venture
(inter)national
draws
network,
and
cross-border
connectivity
costs,
the Exchange says. “SGX’s presence in London marks a strong
performed steadily in the first quarter driven
commitment to our customers in meeting and
by the continuing growth in demand for raw
responding to their needs. Building connectivity
Clarksons
and
the same period tanker market rates were strong
Andy Rham has been appointed managing
strengthen our position as the market of choice
and we were able to conclude a good level of
director of Clarkson Port Services (CPS)
for investors wanting to participate in Asia’s
business. Sale and purchase deal flow has been
following the retirement of Alex Geddes. CPS
rapidly-growing economies, and for issuers
maintained and the forward order book remains
provide agency, stevedoring and port storage
seeking to access global capital markets,” said
at a healthy level. The other shipbroking desks
facilities at a number of strategically positioned
Magnus Bocker, chief executive officer of SGX.
have performed well, particularly containers and
ports in the UK.
materials, particularly from the Far East. Over
offshore.”
enhancing
market
accessibility
will
The SGX London office is headed by chief
Rham was previously operations director,
representative David Battle. He said: “Many of
Suen Ka Pok, chief representative of
based in Southampton. He started in the
our customers are in Europe and the US, and
Braemar’s Shanghai office for the past six years
industry in 1988 with Killick Martin as ship’s
a London base enables SGX to reach out to
has been appointed to the role of director of
agent at Exxon’s Fawley terminal. He left in 1992
them and prospective clients as we roll out our
Braemar Seascope Limited. Suen Ka Pok has
to manage Hamble Agency, owned by Soufflet
Reach initiative and facilitate participation in
extensive experience in the Chinese sale and
France, involved in shipping grain and fertiliser,
Asia’s growing markets by a larger number of
purchase market.
later operating their UK freight desk. He became
trading firms.”
James Hsiao has been appointed head
part of Genchem when they acquired Hamble
of Braemar’s London and Beijing dry bulk
Agency and part of Clarkson’s in 2006 when it
chartering activities. He has worked in the
subsequently acquired Genchem.
panamax and cape sectors for many years.
AXS
Guy Campbell, head of Clarkson’s dry
AXS has updated its AXSTanker software suite
cargo division, has been appointed to the port
to include a number of new features. Brokers
services board.
looking to search the database can do so now
Jumbo Shipping
based on vessel draft and beam restrictions as
China Shipping-Jumbo Heavy Lift Co. Ltd.,
opposed to just using panamax or suezmax
SGX
vessel size search strings. There is a new attach
China Shipping, has opened a representative
Singapore Exchange (SGX) has established
file capability on the system as well as an AIS
office in Beijing, China, Together with its office
a London office to better serve its growing
data, sourced from Vesseltracker, map and
in Shanghai, which was set up in 2002, Jumbo
number of European-based customers. The
history access capability. Equally as important,
aims to further strengthen its position in the
London expansion follows SGX’s commitment
Q88 files can now be uploaded via the AXS
a joint venture between Jumbo Shipping and
Support system (e-mail to support@axsmarine. com) and can be exported in PDF, text or Word formats. Users can also search Ice Class and IMO I and II fields, and distance table data has been updated. Stephen Fletcher, AXSMarine’s commercial director, says of the enhancement: “We are very pleased to launch version 3.0 as we have been trying to deliver most of the new features since the beginning of 2010. We initially planned to launch in two phases but as with any plan we had to adjust and decided to launch everything together. We are very confident that the new features are intuitive, though we will provide training for our members who need it.” Several hundred individual shipbrokers use the AXSTanker suite to indicate the positions of some 8,000 ships, update tonnage, prepare position lists, or consult the tanker register, port database, and distance tables and The Singapore Exchange is expanding its London operations
10
theBaltic September 2010 www.thebaltic.com
voyage calculators.
Baltic briefing
Offshore disputes The demand for Baltic Exchange members’ expertise in offshore related disputes is continuing to grow
A
ddressing a recent meeting hosted by
a wide scope of topics, ranging from dispute
into the equation, and you’ll need even more
the Baltic panel of expert witnesses,
resolution and forensic investigations through to
professionals to perform feasibility studies,
Norton Rose partner, Neil Miller, said
performance reviews on operational contracts,
manage the supply and value chain, and even
a growing offshore fleet size, coupled
valuations of assets and damages, assessment
provide third party controls and due diligence
with a lack of a preferred dispute resolution serv-
of procedures and safe practices, as well as
analysis”.
ice, meant expert opinions were now needed
mediation, arbitration, and litigation.
more than ever.
The Baltic panel for expert witnesses was
“Dispute resolution is an area of particular
set up in 2008 by Baltic member, Peter Vaughan
“The highly specialised nature of the offshore
interest, because the offshore sector, unlike
James, with the aim of making the Baltic
sector, being a cross between the energy
the shipping industry, has no preferred dispute
Exchange the world reference for those seeking
and shipping industry, is giving rise to many
resolution service,” said Miller.
an ‘expert opinion’ in maritime matters. offshore
“By definition, as ‘Experts’ we all have our
“especially as it is becoming increasingly difficult
companies and contractors typically employ
own different professions,” he said, “which
to gain independent advice on a wider range of
consultants to resolve disputes, although the
makes us a truly unique body of reference on
issues.”
most efficient outcome for all parties involved
maritime affairs. We are ultimately united by the
As defined by the 1995 Merchant Shipping
is not necessarily reached, due partly to a
legal presentation of our findings in our Experts
Act, Floating Production Storage and Offloading
lack of industry-specific knowledge and vested
Report”.
Systems (FPSOs) fall under the category of ships
interests. An expert witness’ neutral opinion is
He added, “I am delighted we have been
and are thus subjected to the same industry
therefore highly valued and can ensure one party
able to talk about such a fascinating topic,
standards.
is no worse off than the other.
and I am confident our witnesses will be able
Instead,
opportunities for expert witnesses,” he said,
according
to
Miller,
to provide the industry with much needed
“So long as navigation is a significant part
According to ODS-Petrodata, as of 2009 the
of the function of the structure in question, the
worldwide offshore fleet consisted of 149 FPSOs
mere fact that it is incidental to some more
and 709 Mobile Offshore Drilling Units (MODUs).
For details on future meetings, or for further
specialised function, does not take it outside the
Neil Miller said, “Given that the fleet size
details on the aforementioned event, please
definition,” he explained. Having FPSOs fall under the same industry
has been slowly but steadily growing since
independent guidance”.
contact Peter Vaughan James.
2006, it comes as no surprise that expert
standards means that leading figures in the
advice is increasingly needed. In fact, throw
Tel: +33 2430 75032
maritime industry can provide their expertise on
the rising number of offshore wind projects
Email: pvj@balticexchange.com
Baltic Exchange training courses
PR for maritime companies
T
T
he next round of the Baltic Exchange’s popular training courses for the FFA market take place in London from 2-5 November. Delivered by Prof Nikos Nomikos and Dr Amir Alizadeh of Cass
he Baltic Exchange’s PR firm, Navigate PR, is running a training course providing advice
Business School, the training consists of two separate courses: Freight Derivatives & Shipping Risk
on how to raise a company’s profile across the
Management and Advanced Freight Modelling & Trading. The courses are also being run in 2011 in
shipping industry. The “PR for non PR people”
New York, Singapore and London.
course covers the maritime trade press, press
November also sees the Practical Dry Cargo Chartering course take place at the Baltic. Held on
release writing as well as a step by step guide to
22-25 November, the course covers the nuts and bolts of chartering bulk carriers. The course is run
strategic planning. The course takes place at the
in conjunction with the Cambridge Academy of Transport.
Baltic Exchange 19-20 October.
See www.balticexchange.com/training for full details.
See www.navigatepr.com for further details.
theBaltic September 2010 www.thebaltic.com
11
Baltic briefing
Freight Derivatives Forum: Shanghai 15-16 September T
his September, senior freight derivative trad-
with the freight derivative market as well as the
on the afternoon of 16 September. The Freight
ers and brokers from across the globe will be
development of new Asian routes. The Baltic
Market Information Users’ Group is made up of
gathering in Shanghai, China’s rapidly growing
Exchange will also provide details of its plans to
Baltic Exchange shipowning, chartering, financial
maritime and financial services hub, for the Baltic
help grow the FFA market. Delegates will have
and commodity trading members who rely on
Exchange and FFA Brokers’ Association Freight
a chance to make their views heard and play
the Baltic Exchange’s freight market information
Derivatives Forum. The forum takes place during
an active role throughout the forum through
and take an active role in developing the Baltic’s
the six-month Shanghai World Expo, China’s
the use of an interactive voting system as well
freight market services. The group meets on a
showcase event to the world.
as participating in facilitated ‘break-out group
regular basis around the world.
The high level forum focuses on how to
discussion’ sessions.
The two events offer plenty of opportunities
increase Chinese participation in the FFA
On 15 September, prior to the forum, there
for networking, with a dinner hosted by Noble
market and opens with an address delivered
will also be a comprehensive FFA workshop
Shipping on 15 September as well as another
by the Lord Mayor of the City of London and a
conducted in Mandarin and delivered by experts
sit-down dinner hosted by the FFA Brokers’
senior representative from the Chinese shipping
in the derivative field, providing a practical
Association on 16 September. This two-day
community.
overview of how to trade freight derivatives.
event is free of charge to invited guests and
Forum attendees will also hear from top
This workshop is designed to show existing and
Baltic Exchange members.
FFA brokers and other experienced market
potential Chinese freight market participants
participants discussing their views on the latest
the basics of FFA trading and how to execute
See the FFA section of www.balticexchange.
developments in the FFA market. Topics which
a successful freight derivative trading strategy.
com for latest programme details.
will come under the spotlight will include the
A Freight Market Information Users’ Group
growth of iron ore swaps and their connection
Meeting is scheduled following the main forum
Honorary life membership for IMO secretary-general I
(IMO)
from shipping and to ensure that the leadership
secretary-general Efthimios Mitropoulos was
of IMO on all matters related to international
awarded honorary life membership of the Baltic
ocean transportation remains undiluted.
nternational
Maritime
Organization
Exchange in July in recognition of his services
Receiving his award Efthimios Mitropoulos
to the shipping industry. Mr Mitropoulos has
said: “As a student of history and a lover of all
served as IMO secretary-general since 2004
things maritime, I cannot tell you what a genuine
and previously served as head of the IMO’s
privilege it is for me to be received in this, one
Maritime Safety Division for 12 years. Making
of the most prestigious temples of international
the award, chairman of the Baltic Exchange
shipping, in the City of London, where the
Mark Jackson, said: “Your period as secretary-
heart of the industry beats stronger than in any
general has been marked not just by your skilful
other maritime centre of the world; and to have
management of the complex environmental and
this Honorary Life Membership of the Baltic
other issues confronting shipping as an industry,
Exchange conferred upon me. It puts me in the
but also by a deep empathy and concern for all
most elevated of company of richly deserving
those who go down to the sea in ships, as well
former recipients of the highest stature and is
as their families.”
an honour for which I am extremely grateful and very appreciative.”
Under Mitropoulos’ leadership, IMO has pushed forward a strong environmental and
Also present at the lunch were the UK
safety agenda with successes in numerous areas,
Efthimios Mitropoulos at the Baltic
Minister of Shipping Mike Penning, Intercargo
including the MARPOL extension, phasing out
Exchange
chairman Nicky Pappadakis and Efthimios Mitropoulos’ son Elias.
single-hull tankers and more recently securing be both economically sensible for shipping and
Previous recipients of Baltic Exchange life
trade as well as meaningful for the environment.”
membership awards have included Sammy Ofer
greatest challenge still lies ahead – which is
The Baltic chairman confirmed that Mr
(2009), the Duke of Edinburgh (1953), Winston
to find a global, IMO-led solution to carbon
Mitropoulos would have the full backing of the
Churchill (1954), and Maersk Mc-Kinney Moller
emissions from ships. This solution needs to
Baltic in his efforts to tackle carbon emissions
(1991).
successful agreements on emissions controls. Mark Jackson added: “We know that your
12
theBaltic September 2010 www.thebaltic.com
Baltic briefing
The Baltic board 2010/11 Left to right (front row) Andrew Francis, Tony Westbrook, Paul Over (vice chairman), Mark Jackson (chairman), Haralambos Fafalios, Demetrius Dragazis (Back row) Quentin Soanes, Duncan Dunn, John Tsatsas, Stephen Baldey, Richard Goodall, Colm Nolan, Guy Campbell. Not pictured: Michael
Borrow a painting from the National Maritime Museum
Robson and Lambros Varnavides
since the concept was devised and was previ-
will still be needed to undertake the more
ously a trader on the BIFFEX floor, the forerun-
sophisticated trades and to add value through
ner of today’s Forward Freight Agreement (FFA).
analysis and guiding principals through their
He is also a former vice-chairman of the FFA
deals. FFA brokers need only look at the oil and
Copyright National Maritime Museum, London, 2010
New sales & marketing manager T
Brokers Association.
energy markets which have moved from an OTC
Wide selection of paintings at the National
to an automated system to see that there is still
Maritime Museum
he Baltic has appointed a new sales & marketing manager, Robin King, to help further
develop the Baltic’s membership services. A former commodity and freight derivatives broker, Robin King brings a wealth of hands-on commodity and freight derivatives experience, having worked for a number of companies, including Clarksons, GFF, EDF Man and AA Hooker since
the late 1970s. One of the first FFA brokers,
Robin King
Robin has been involved with freight derivatives
“I will be actively involved in the Baltex project and helping to raise the profile of the
scope for a good broker.”
T
Baltic Exchange across the shipping, energy and
With membership levels growing year on
financial markets,” commented Robin King. “I
year, the Baltic Exchange’s international profile
believe that the proposed Baltex trading screen
has grown steadily over the past decade,
where, for an annual fee, companies may bor-
for freight derivatives will make freight derivative
particularly in Asia. “I see a huge international
row paintings from the museum’s maritime art
trading more readily available to a much deeper
growth potential for the Baltic as more industrial
collection for display in their own offices.
pool of market players and potentially boost
concerns become more directly involved with
The collection is remarkable for both
liquidity massively. There is already a huge
shipping and control their own fleets of ships.
its artistic quality and the variety of subject
interest in the freight markets from banks,
These companies are joining the Baltic Exchange
matter. Its main elements include early-Dutch
hedge funds and energy traders, but many
to gain access to our freight market information
and Flemish marine paintings, British marine
are still holding back because of the current
services and subscribe to the Baltic Code. Our
paintings, portraits, history and genre paintings,
market structure. As a former freight derivatives
word our bond is an important ethos in the
and ships portraits. Artists represented include
broker myself, I understand the misgivings of
international shipping markets and becoming a
Willem van de Velde (the elder and younger),
certain brokers towards this project, but the
member of the Baltic is an important step for a
Dominic Serres, Charles Brooking and Abraham
freight derivatives market needs to evolve and
company to build its reputation in this sector,”
Storck.
the Baltic Exchange is a natural custodian of a
said Robin King.
he National Maritime Museum in Greenwich, London operates a corporate loans scheme
A
museum
curator
will
assist
with
central freight market screen. Change is being
Married with two young children, Robin King
selection and the scheme helps care for the
driven by the principals who are fed up with a
is a keen musician, scuba diver and maritime
museum’s collection of over 4,500 oil paintings
fragmented market. A successful screen will
archaeology expert. He has been involved with
and 60,000 prints and drawings.
bring price transparency to the market and with
the raising of a number of cargoes from wrecks
that knowledge so much more business can
around the world in conjunction with Oxford
be done.”
University.
He added: “I firmly believe that there will be
For more information visit ww.nmm.ac.uk/ support-us/corporate-opportunities or contact Leander Feltham, Corporate Membership and
a continuing role for brokers in the FFA market
Robin King can be contacted on
Loans Manager
and that smaller brokers in particular will benefit
E-mail: rking@balticexchange.com
National Maritime Museum
by having access to all the prices. Brokers
Tel: +44 (0)20 7369 165
Tel: +44 020 8312 6603
theBaltic September 2010 www.thebaltic.com
13
Baltic briefing
$600,000 raised for the Sailors’ Society
38
teams, many of them Baltic Exchange
members,
took
part in the 2010 Three Peaks Challenge to raise funds for
the global seafarer charity, Sailors’ Society. The teams, which came from as far afield as the USA, Singapore, Norway and China, took part in the gruelling 24-hour challenge to climb three of the highest peaks in the UK – Ben Nevis in Scotland, Helvellyn in the Lake District and Snowdon in Wales. The event started at a leisurely pace with dinner aboard the Glenlee tall ship, berthed in Glasgow. The teams soon left their home comforts behind as they set out to tackle the peaks. Overall winners of the challenge were the Cargill Eco Speed team from Geneva,
Parbinder Mahay from Tradewinds -
James Dennison from Clyde & Co descends
who completed all three climbs in six hours 42
Ben Nevis
Ben Nevis
minutes, and came in as the fastest climbers on both Ben Nevis and Helvellyn. They were beaten
The awards ceremony took place at the
to second place on Snowdon by the Clarksons
Merseyside
Maritime
Museum,
Liverpool,
team who climbed the mountain in just two
after all the weary climbers had completed
hours. Indeed, the Clarksons team was hot on
the challenge. Sailors’ Society chief executive
the heels of Eco Speed throughout the event,
Robert Adams congratulated all the teams on
finishing just 16 minutes behind them.
their hard work, not only in terms of the physical
and mental challenge, but also in pledging to raise an outstanding $600,000 in sponsorship for the charity. Director of fundraising Jan Webber was thrilled with the event: “We’d like to thank everyone who took part in the event and all our sponsors who have supported it. We are particularly delighted that the event has been such a success this year as 2010 is the IMO Year of the Seafarer and therefore this support takes on an even greater resonance. We hope that the teams soon forget those blisters and sore limbs and remember instead the tremendous views they enjoyed at each of the peaks and the fact that their fundraising efforts will make a real difference to seafarers all over the world.” If you can’t wait until the 2012 Sailors’ Society’s Three Peaks Challenge, there are still places available on the equally demanding Wilderness Challenge at the Cairngorms National Park in September. Please contact Felicity Patterson for more information Felicity Patterson Tel: 023 8051 5957 E-mail: fpatterson@sailors-society.org
The Baltic Exchange Team
14
theBaltic September 2010 www.thebaltic.com
Baltic briefing
Team Clarksons – second fastest team
The Bacon Buttie Team – Helvellyn night climb
Ince & Co prepare to climb Ben Nevis
Iain Guun, Jonathan Bailey, Graham Delaney – BP Shipping
Mauricio Acuna
Glencore completes Helvellyn
Cargill’s Angels
Fastest team – Cargill Eco Speed
theBaltic September 2010 www.thebaltic.com
15
Baltic briefing
Baltic vs Lashings
W
hen the bouncer from Jason
frenzied bidding saw a 'competitive total' raised
Gillespie clunked off his hel-
for the Sailors’ Society in their efforts to help
met on its way to the boundary,
seafarers and their families around the world.
Baltic Exchange opening bats-
No-one in the crowd gave the Baltic's brave
man Henry Walpole knew he was in a contest.
XI any hope against their opposition; however,
Adrenalin pumping, the next ball he faced was
they bowled and fielded with great skill to
another bouncer – this time from England's
restrict Lashings to a total of 163 runs with Jay
giant fast bowler Devon Malcom – which was
Mastin (ICAP), Almaher Shelley (MOL Navix), and
dispatched over the hospitality tents for six as
captain Jamie Freeland (AM Nomikos) snaring
commentator Henry Blofeld's distinctive tones
wickets. However, it was with the bat that they
described the scene to a rapt crowd. No, not a dream but the third and fourth
really shone, with Henry Walpole (MC Shipping)
overs at the Baltic's spectacular match against
smashing the bowling to all parts before man
the Lashings World XI at the HAC in the heart
of the match Fraser Larke (ICAP) took over
of the City of London in aid of the Sailors’
and propelled the Baltic score to 156 before a
Society, where nearly 500 Baltic members and
barrage of short pitched bowling from Dominic
guests were royally entertained to a champagne
Cork left them just a few runs short.
reception, lunch and charity auction in the As
Test
superstars
such
The day was the brainchild of Jeremy Palin (Arrow Panamax) who with Baltic Captain
beautiful Prince Consort Rooms. as
Richie
Jamie
Freeland
organised
event.
When
a
wonderfully
the
cricketers’
Richardson, Herschelle Gibbs, Shaun Tait, John
successful
Emburey and Dominic Cork mingled with their
nerves settle again a rematch is on the cards,
shipping equivalents, Henry Blofeld entertained
with the odds of an upset shortening after
Ed Ritchie (RA Chartering) & Peter Oliver-
the crowd with some choice anecdotes and
the Baltic's courageous display.
Smith (Howe Robinson)
Jamie Freeland and Tom White
16
theBaltic September 2010 www.thebaltic.com
Baltic briefing
Jeremy Penn (Baltic Exchange), Patrick Murphy (Clyde & Co/BECC), Richard Sayer, Callum Ludgate, Ed Royle
James Marshall (NZL), Henry Walpole (MC Shipping/BECC)
John Emburey, (England) with BECC president Jack Richards of
Jason Gillespie (Australia), Shaun Tait (Australia), Jamie Freeland
Orient Shipping (Eng)
(BECC & AM Nomikos)
Barrie Wooderson (Baltic Exchange) and Saqlain Mushtaq (PAK)
Clarksons table
Henry Kidd, Charles Dixey, Guy Willson, Ed Long-Price, Georgie Farr
Howe Robinson table
theBaltic September 2010 www.thebaltic.com
17
Baltic briefing
Fehr Cup tennis tournament celebrates 75th anniversary Richard Fehr, grandson of Frank E Fehr CBE, reports
S
pecially designed tennis shirts, the
Frank Ford accompanied by his wife Audrey.
his wife Lesley, who represented Rea Bros, the
attendance of past winners, replica
Frank represented Bank Line for several years,
private merchant bank and who won the first of
trophies and an evening barbeque
first winning in 1954. Also present were Nick
his four victories in 1965. The list would not be
were all part of the celebrations of
Greenwood of Shaw Savill who first won in
complete without our indefatigable referee and
the 75th Anniversary of the Fehr Cup Baltic
1956 and contributed to his company having
organiser, Perry Perera, who won his first ‘Cup’
Exchange inter firm doubles held on Thursday
their name engraved on the cup no fewer than
in 1968 representing Gdynia America Shipping
8 July at the Surbiton Tennis and Fitness Club.
12 times, and Ian Pitt, also accompanied by
Lines and went on to win four more times in the
Following a rain free Wimbledon fortnight, the whole day was blessed with glorious sunshine.
Entries
The usual format of the competition proper with
Cargill
Catherine Bacon & Joanne Letcheva
Embiricos Shipbrokers Ltd
Nick & George Embiricos
the 15 losers prior to the quarter finals making up two divisions and playing five games each in an American Tournament kept everyone on the
Braemar Seascope Ltd
grass courts until well into the afternoon. Clarksons 1 (Graham Murray & Allan KentLemon) had a very close second round match
1
Charles Morrison & Richard Wetzaki
2
Hugh Twort & Tom Morrison (withdrawn)
Vogt & Maguire Ltd 1
Chris Owen & James Lowry (Withdrawn)
(Nick and George Embiricos) having to play
2
Adam Bastin & David Stoop (Kametra Kolera)
a championship tie-break in the third set and
3
Julio Pradera & Emmanuel Papadopulos
1
Mark Jackson and Mike Sysum
2
Andy Underwood & Alex Wood
3
Dina Suleimanova & Ashley Keyte
1
Philip Fourie & Stephen Sharpe
2
Kazumitsu Futatsuka & Philip Freely
3
Tom Ravenscroft & Pedro Bravo
against the number three seeds Embiricos
eventually winning 10-8. Galbraiths 1 (Stephen McHale & Charles
Howe Robinson & Co Ltd
Claire & Charlotte Vogt
A M Nomikos & Son (UK) Ltd
Dashwood), the fourth seeds, had an easy passage to the semi-finals but were beaten by Braemar Seascope 1 and took the winning
Noble Europe Ltd
semi-finalists spot. In the final and under the watchful eye of umpire, former winner Steve McHale, Braemar Seascope 1 (Charles Morrison and Richard
Lykiardopulo (Chartering) Ltd
Wetzaki) seeded two, beat the no 1 seeds and
Galbraith’s Ltd
last year’s winners, EA Gibson Shipbrokers (Andy Lawson and Andy Roberts).
Charlie Oughton & Rob Birkett 1
Stephen McHale & Charles Dashwood
2
Alex Hacking & Brenden Edwards
Lykiardopulo (Charlie Oughton and Rob
E A Gibson Shipbrokers Ltd
Andy Lawson & Andy Roberts
Birkett) headed the American Tournament
Simpson Spence Young Ltd
Graham Bagnall & Henry Trowbridge
Holman Fenwick & Willan
Alistair Mackie & Withdrawn
Section 1 with a total of 25 points out of 33 games and Clarksons 2 (Gary Morgan & Luke Justus) Section 2 with 23 points out of 30
Clarksons
games. During the day we were delighted to see several past winners of the Fehr Cup, including
18
1
Graham Murray & Allan Kent-Lemon
2
Gary Morgan & Luke Justus
Frank Fehr & Co Ltd
theBaltic September 2010 www.thebaltic.com
Amanda & Steve Goodman
Baltic briefing mid-eighties. It was also nice to see past players Mr & Mrs Paul Vogt, John Servante and Peter Bullock taking an interest in proceedings throughout the day. Also welcome and competing for the first time was Amanda Fehr Goodman (grand-daughter of Frank Fehr) and her husband Steve, representing Frank Fehr and Co Ltd. Before presenting the Cup and prizes to the worthy winners, Richard Fehr (who actually competed in the late sixties, but whose promising career was cut short by a nasty soccer injury on Hackney Marshes) thanked those whose organisational skills had contributed to the success of the day, singling out Perry Perera and also Costas Maramenides, who kindly distributed the anniversary shirts and single-handedly organised the American Tournament Sections 1 and 2. Before directing all those present
All past winners. Squatting (left to right): Andy Lawson, Stephen
in the direction of the barbeque, Richard thanked the Surbiton Tennis and
McHale, Nick Hubbard. Standing (left to right): Ian Pitt, Perry
Fitness Club and its director, Roy Staniland, for organising the day so well
Perera, Nick Greenwood, Frank Ford, Andy Roberts and Charles
and head groundsman, Lee, for producing such first-class grass courts.
Morrison
A memorable day!
First Round Howe Robinson 3
bt
Braemar 2
W/O
Vogt & Maguire
bt
Frank Fehr
6/0 6/2
Nomikos 2
bt
Howe Robinson 1
W/O
Clarksons 1
bt
Galbraiths 2
6/1 6/4
Cargill
bt
Holman Fenwick & Willan
W/O
Howe Robinson 2
bt
Nomikos 3
6/0 6/2
Clarksons 2
bt
Simpson Spence & Young
6/1 7/5
Winners of the Fehr Cup 2010. Richard Fehr, Charles Morrison, Richard Wetzaki and Perry Perera (Referee)
Second Round EA Gibsons
bt
Howe Robinson 3
6/0 6/1
Noble 2
bt
Vogt & Maguire
6/2 61
Lykiardopulo
bt
Nomikos 2
6/4:6/2
Clarksons 1
bt
Embiricos
6/3 5/7 7/6
Galbraith 1
bt
Noble 3
6/1 6/1
Nomikos 1
bt
Cargill
2/6 6/2 7/6
Noble 1
bt
Howe Robinson 2
6/4 6/3
Braemar 1
bt
Noble 1
6/1 6/0
EA Gibsons
bt
Noble 2
6/3 6/3
Clarksons 1
bt
Lykiadopulo
6/1 6/2
Galbraith 1
bt
Nomikos 1
6/1 6/1
Braemar 1
bt
Clarksons 2
6/0 6/0
EA Gibson
bt
Clarksons 1
6/0 6/4
Braemar 1
bt
Galbraiths 1
6/0 6/1
bt
E A Gibson
6/3 6/1
Clarksons1
bt
Galbraiths 1
Toss of coin
American Tournament
1
Winners Lykiardopulo
American Tournament
2
Winners Clarksons 2
Quarter Finals
Finalists EA Gibsons (Andy Lawson and Andy Roberts), Umpire Steve McHale and Braemar Seascope (Richard Wetzaki and Charles Morrison)
Semi Finals
Final Braemar
Third Place
The winning semi-finalists Clarksons1 (Graham Murray and Andrew Kent-Lemon) with their prizes presented by Amanda Fehr Goodman
theBaltic September 2010 www.thebaltic.com
19
Baltic briefing
Wine notes David Hughes offers an overview of Pinot Noir, a fickle and demanding wine
“
T
o master it is every wine maker’s
Demand from California’s excellent cooler
long morning sunshine, avoiding the afternoon
dream,” said Adam Wynn as we stood
coastal regions of the variety came under
heat and giving way to the essential cool
surveying the rows of his Pinot Noir
pressure after Pinot Noir’s exposure in the film
evenings. Another factor is the soil, which is of
vines within his Mount Adam Vineyard
Sideways, causing an explosion in domestic
limestone and marl.
situated close to South Australia’s Barossa
interest and consumption of the variety (and
The variety reflects pronounced terroir
Valley.
a dramatic down-turn for other red varieties
(reflection of flavours from the soil). This makes
particularly Merlot!).
site selection a crucial factor – thus the complex,
Pinot Noir is one of the most difficult grape varieties to grow and make into fine wine. Yet
Further up the coast, Oregon State’s
sometimes tiny domains and land ownership that
wine makers all around the world strive to
Willamette Valley are impressing with the variety
is unique to Burgundy and simply impossible to
produce that end result which will make the
and although the growing seasons are rather
try and explain here.
recipient simply purr with joy.
short, Washington State and British Columbia’s
Historically, particularly in London’s City wine
Okanagan Valley are hanging in there with some
lodges, there have always been two camps:
It is one of the oldest grape varieties to be cultivated for the purpose of making wine; it is known that the Ancient Romans called the variety Helvenucia Minor. Pinot Noir produces small crops; the skins are thin and thus susceptible to various pests
lovely styled Pinot.
Bordeaux and Burgundy. Should we favour
Australia’s best production regions are
Bordeaux where production from a good or fair
Victoria State’s cooler, beautiful Yarra Valley and
vintage will, across the board, be consistent and
Mornington Peninsula, equally matched by the
a safe purchase whether it be a top Chateau or
Pinot vineyards of northern Tasmania.
a Cru-Bourgeois?
and splitting. Those skins have light tannins,
New Zealand flew the Pinot flag many years
Burgundy, however, is simply a minefield.
thus the lighter colour of the eventual wine.
ago at the vineyards of Martinborough, just
The producer is king. Some will make good
The further ‘fickle’ bit is that the variety also
outside Wellington. Then the Marlborough region
wine from the vineyard even in indifferent years,
has relatively high and complex acid levels for
(northern tip of the South Island) produced
whereas some will produce indifferent wine in
a red grape and a good concentration of fruit
plentiful, consistent quality Pinot and latterly,
good years. But when it’s right, Pinot Noir is
is required to balance that acidity. Pinot Noir
further down the South Island, Central Otago laid
a delight to behold. You may see, I am in the
demands warm days and cool nights. If the
claim to the right of producing New Zealand’s
Burgundy camp – strengthened by my four-day
growing season is too warm, the skins can
best (and certainly most expensive) Pinot Noir.
tasting visit to the region last November.
sunburn and the end product has stewed and
Tips to purchase: for a good example with
over ripe flavours. Thus plantings tend to be in
fruit expression, seek mid-priced reliable names
the cooler areas of the countries of production;
from around the new world or the lighter-styled
however, the grower will be aware the variety is
Burgundies: Rully, Mercurey or Givry. But if it is the ultimate Pinot Noir experience
very susceptible to spring frosts. Unlike Claret (Bordeaux) which is usually a
you seek, grab your wallet and head off to
blend of three or four grape varieties, Pinot Noir
seek out a seller who knows. Purchase your
stands alone and is rarely blended with other
Burgundy, head home, pull the cork and match
varieties. The one exception of course is its
with game, mushrooms and excellent company. Therein lies Heaven!
vast contribution in the making of Champagne where it is blended with Chardonnay and Pinot Meunier, and it is fair to say that most great
The Old World
Champagnes and top ‘Sparklers’ from around
Back in the old world, Romania produces some
the world are Pinot Noir driven.
fairly good and reasonably priced supermarket level Pinot Noir. Lighter versions of the variety hail from Italy (Pinot Nero), Germany and Austria
The New World
(where it is called Spätburgunder), Alsace
Whilst the New World tends to produce lighter
(northern France) and there are increased
versions of the wine with prominent and
plantings in England.
vibrant strawberry fruit, there are sometimes justified However, from
of
‘one
dimensionalism’.
greatest of Pinot Noir within the two-mile-wide,
stunning
Pinot
Noir
thirty mile-long stretch of hills called the Cote
claims
regions
native homeland.
20
However, it is Burgundy that produces the
outside
of
emerges
Burgundy,
its
David Hughes was a shipbroker from 19611983 when he “moved from shipping to sipping” – opening a wine bar-restaurant in Old Spitalfields in 1984. After 25 years, the business was sold and he is now a wine consultant. A retired member of the Baltic Exchange, he conducts corporate, company and private wine tastings and is available for information and the supply of wines.
d’Or (Slope of Gold) where the vineyards slope
www.thewine-enthusiast.co.uk
gently towards the east, providing the vines with
david@thewine-enthusiast.co.uk
theBaltic September 2010 www.thebaltic.com
Baltic briefing
Bomber Command Memorial This group of retired shipping friends visited Portsmouth Historic Dockyard in July. The day included exploring HMS Victory, Warrior, the Mary Rose Museum and a harbour trip to see modern Royal Navy warships. Pictured from left to right: David McNally, Derek Webb, John Servante, Alistair Chalmers, John Wood (organiser), Derek Taylor (photographer), John Hanman, Keith White and Peter Spencer (just out of sight)
New Baltic Exchange companies The Baltic Exchange is delighted to welcome the following new companies into membership:
Carisbrooke Shipping
Eastwill Shipping
38 Medina Road, Cowes, PO31 7DA
10/F Room 1020, 5 Canton Road,
www.carisbrookeshipping.net
Ocean Centre Harbour City, Hong Kong
Tel: +44 (0)1983 284100
Tel: +86 010 85972952 E-mail:dry@ewshipping.cn
R
etired Baltic member Harry Hughes has been in touch to make readers aware
of the Bomber Command Memorial Appeal. Harry Hughes himself flew 76 missions with 102 and 692 Squadrons over Germany in the
Eastern Sea Transport
Island View Shipping International
Second World War. 55,573 men from Bomber
Eastern House,
200 Cantonment Road,
Command gave their lives, but there is currently
9 Timber Pond,
#06-04 Southpoint,
no memorial commemorating their heroism.
M A Jinnah Road,
Singapore 089763
However, permission has been granted for an
Karachi 75620,
www.ivs.co.za
open style pavilion at the Piccadilly entrance to
Pakistan
Tel: +65 63 23 0048
Green Park and funds are being raised.
www.easterngroupcos.com
E-mail: handymax@ivs-int.com
Tel: +92 21 32851945 56
Saxo Bank
For further details see:
E-mail: info@easterngroupcos.com
www.saxobank.com
www.rafbombercommand.com
Sadly departed We regret to report the passing of the following members
Ray Ackers
Christopher Gompertz
Patrick Metaxa
Mr Ackers was first elected a member of
Mr Gompertz was first elected to the Baltic
Mr Metaxa was first elected to the Baltic in
the Baltic in 1962 and represented Simpson
Exchange in 1964 and worked for Baltic
1959 and represented Rank Hovis from 1965
Spence and Young until becoming a retired
members such as Eggar Forrester, Killick
until becoming a retired member in 1993.
member in 1992. Members wishing to
Martin and Docenave.
Mr Metaxa also served as a Baltic Director
remember Mr Ackers may like to place a donation with either Prostate Cancer or Unique
Robin Angus Graham
between 1970-73.
(charity for rare chromosome disorders).
Mr Graham was first elected to the Baltic in 1965 for Tatham Bromage & Co Ltd. Between
Edward Sydenham
Robert Adam
1972-1979 he represented Sir William Reardon
Mr Sydenham was first elected to the Baltic in
Mr Adam was first elected to the Baltic in 1954
Smith & Sons Ltd and then in 1979 founded
1964 representing P WighamRichardson. He
and during his membership represented Walter
Angus Graham & Partners. Mr Graham was a
then went on to represent Abetone Chartering
E Frank, Gdynia America and Krohn & Co
Retired Member from 1998 to 2003.
between 1987-199
Kenneth Long
Nigel Taylor
(Shipping & Trading) Ltd.
John St.Clair Gainer
Capt Long was first elected a member of
Mr Gainer was first elected to the Baltic
the Baltic in 1992 for Intercargo. Between
Exchange in 1953 and during his membership
1999-2000 he was a sole trader member, and
represented Bunge & Co Ltd. In 1989 he
from 2000-2005 he represented the London
became a Retired Member of the Baltic.
Metropolitan University.
theBaltic September 2010 www.thebaltic.com
Mr Taylor was first elected to the Baltic in 1972. During his membership he represented Nielsen Shipping, Davies & Newman, BMM & London Shipbrokers and Anderson Hughes.
21
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
Crispin Eccleston
Lorraine Burns
Anglo Greek Chartering, The Baltic Exchange
Tel: +44 (0) 20 7369 1654
The Baltic Exchange
38 St Mary Axe, London EC3A 8BH
E-mail: ceccleston@balticexchange.com
38 St Mary Axe, London EC3A 8BH
Tel: +44 (0) 20 7283 9621
Tel: +44 (0) 20 7369 1638
Sailing Association
E-mail: lburns@balticexchange.com
Cricket Club
Simon Cox
Jamie Freeland
Howe Robinson Shipbrokers
Young Baltic Association
AM Nomikos, 4th Floor
77 Mansell Street, London E1 8AF
Crispin Eccleston
40 Grosvenor Gardens, London SW1W 0EB
Tel: +44 (0) 20 7457 8421
The Baltic Exchange
Tel: +44 (0) 20 7488 3444
38 St Mary Axe, London EC3A 8BH
Golfing Society
Tel: +44 (0) 20 7369 1654
Chris Cox, c/o Frank Symons Ltd
E-mail: ceccleston@balticexchange.com
Devonshire House 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
Robin King
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: rking@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: rking@balticexchange.com
Robin King
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
22
theBaltic September 2010 www.thebaltic.com
Baltic website: www.balticexchange.com
Logbook
Workhorses of the sea Today’s reliance on bow and stern thrusters and integrated bridge control systems has reduced the need for ship handling tugs, but up to the 1960s almost all ships of any size needed shepherding in and out of port by those ubiquitous workhorses. Ambrose Greenway provides a nostalgic photographic essay on some veteran steam tugs
B
elching smoke, the Mataras tows a
in South American west coast ports for the
removal from ships of the Western Fleet gathered
heavily laden Greek bulk carrier through
Pacific Steam Navigation Co. Sold to Chile in
in Torbay for the presentation of new colours by
the shallow channel off Buenos Aires
1938, she was that country’s premier tug for
HM the Queen in late July 1969. Tactful was built
in February 1969. Built at Wilmington
many years and was responsible for laying the
as Everard’s F T Everard in Great Yarmouth in
Del. in 1908 for the US Revenue Cutter serv-
large single point-mooring buoy at the port of
1928 and later served the port of Fowey as the
ice, forerunner of the USCG, she was sold to
Quintero. Later saved from being sunk, she was
green and black-hulled Tolbenny from 1951 to
the Puget Sound Tug & Barge Co in 1934 and
gradually restored by a group of enthusiasts
1965. She was scrapped in Plymouth in 1973.
served other west coast owners before being
and was accorded Historic Monument status in
The twin-funnelled salvage tug Cabo Espichel
sold to the Argentine navy in 1947. She towed
1990. Since 1994 she has been a museum ship
was the largest of three tugs completed by
a barge carrying six war surplus US military tugs
in Talcahuano but sadly was capsized by the
Harland & Wolff, Govan for Lisbon Harbour
on her delivery voyage and later appears to have
tsunami associated with the Chilean earthquake
Board in 1927/1928. She measured 395 gross
sailed as the civilian Ona Sol before being broken
earlier this year. Her owners are hoping to
tons and her twin screws gave her a speed of
up in 1983.
salvage her.
13 knots. Although mainly employed on harbour
Depicted in Valparaiso early in 1969, the
Plymouth-based ‘Tacky’ Reynolds’ was the
towage, she was also used for salvage duties on
magnificent Poderoso (Powerful) was built in
last UK owner to use coal-burning tugs. Here
the Portuguese coast and was eventually broken
Liverpool in 1911 to carry out towage duties
its Tactful (foreground) and Trevol assist in gash
up in 1973 after a career of 45 years.
Mataras
Poderoso
theBaltic September 2010 www.thebaltic.com
23
Logbook
Tactful and Trevol
St Canute
The icebreaker bow of Fowey Harbour Commissioners’ St Canute betrays her origin as the Sanct Knud of Odense built at Fredrikshavn in 1931. Acquired in 1961, she assisted china clay ships in the Cornish port for seven years before being sold to the Trust running the Exeter Maritime Museum. When that organisation folded after some 30 years, she was acquired by a Swedish gentleman, renamed Stockvik and, after repairs in Terneuzen and Amsterdam, eventually arrived in Stocka in the Gulf of Bothnia in August 2000, since when she has been undergoing restoration. Seen approaching the Royal Docks in the early 1960s, J P Knight’s small motor tug Kundah
Kundah, Napia and Challenge
overtakes Ship Towage’s Napia and Challenge escorting the inbound Benhope. Napia was built
from demolition in 1973 by Taylor Woodrow
Scotts at Bowling in 1941, she became the
at Goole as Empire Jester in 1943 and joined
who preserved her in St Katherine’s Dock.
London North Eastern Railway’s Central No 3 in
Wm Watkins’ Thames fleet in 1946. She became
Since 1999 she has been owned by the Dunkirk
1946 and was based in Grimsby following railway
J G Efthinou’s Tolmiros in 1971 and spent her
Little Ships Restoration Trust and is still in
nationalisation three years later. In 1961 her
final decade in the Loucas Matsas fleet before
full working order.
ownership passed to the British Transport Docks
being scrapped in 1986. Challenge, a veteran
Yet another example of a war-built Empire
Board and she was renamed Rampside. Sold to
of the Dunkirk evacuation, was built in Aberdeen
type tug was the Greek Posidon, seen here in
Greece in 1973, she spent her last decade as
in 1931 for Elliot Steam Tugs and was saved
Piraeus in 1973. Completed as Empire Fir by
Vernicos’ Vernicos Fani until scrapped in 1986.
Cabo Espichel
24
Poseidon
theBaltic September 2010 www.thebaltic.com
Baltic comment Michael Grey
A case for danger money I
t used to be taken for granted that if you were
There are other risks, with the weight of
to send a ship into a region of the world where
legal systems behind them, that are every bit
there were known hazards, you would demand
as worrying to the owner or mariner as probing
an uplift in the freight rate. The Spanish Civil
rock-infested coasts with inadequate charts.
War comes to mind, with the substantial sums
There are a growing number of jurisdictions
earned by British “blockade runners”, of whom
which seem to send out their officials with the
Captain “Potato” Jones was the most notorious
mission to look for trouble aboard visiting ships.
example. The owners, of course, would tend
Places where a crossed-out entry in the Oil
to suggest that they had no knowledge of any
Record Book will have the officers facing hours
particular risks to their ships as they signed on
of interrogation by hostile law-enforcers. There
their crews, while their broker was simultane-
are ports where “port state inspection” means
ously explaining to cargo interests that the haz-
a license to routinely frighten seafarers who are
ards were such that only a very imaginative rate
doing their jobs to the best of their ability, where
would compensate the owner. It was a question
customs and immigration authorities behave in
of whom you believed.
a high-handed fashion and treat seafarers as a lower life form and potential criminals.
The “tanker war” between Iran and Iraq was another case in point, where there were
Now, of course we have places where any
genuine risks of losing the ship to the heroic
form of navigational incident or accident involving
aviators employed by both combatants who
the ship attracts penalties under criminal law,
were charged with sinking them. But there
Michael Grey
where once a more civilised or liberal regime might have obtained.
were owners who, at a time when tanker rates were bumping along the bottom because of the
in the paperwork, an undeclared aspirin, or the
People know pretty well where these
huge overcapacity, made a mint by risking their
weighbridge has suggested that the amount of
ports are. Would it not be a salutary lesson
ships in these hazardous waters. It was tough
cargo discharged was disappointingly less than
to these illiberal places to boycott them, until
on the crews, however; uncorroborated tales
that anticipated in the bill of lading. The choice
their governments had resolved to behave in
suggesting that there were occasions where the
is stark; either pay this reptile a four figure sum
a more civilised fashion to visiting ships and
hapless ratings aboard ships were under the
in medium denomination dollar bills, or the ship
their seafarers? Whack a 20% surcharge on all
impression they were bound for the Mexican
is arrested, the master and mate rotting in a rat-
freight transactions to compensate those who
Gulf, and only alerted to the dangers when
infested prison, while the P&I Club tries to make
were willing to risk their ships and seafarers in
Exocets started to whizz about, or the Master
some sense of the affair.
the ports of such a state? It’s heresy, of course,
We mostly know where these places are to
and will never happen, but when owners of fine
be found, where the stench of corruption is to be
companies and their shipmasters are charged
There are still hazardous areas in the world,
smelt a very long way offshore. Should there not
under criminal law because of a pollution event
mainly thanks to the depredations of pirates in
be a substantial bonus payable to anyone who
that was caused by cargo lost over the side in
the western Indian Ocean and Gulf of Aden,
would risk a ship in these hazardous waters? Or
appallingly extreme weather, some things have
while a trip to the Gulf of Guinea can be a trifle
maybe a far better idea would be to declare the
just gone too far for the most tolerant sea people.
trying on the nerves, wondering whether it is
region a “corruption risk zone” and require a CGS
Let us have Admiralty Pilot Books spelling out
really the agent’s boat approaching, or a gang of
(Corruption and Graft Surcharge) to be levied on
the hazards that are likely to face the mariners
heavily armed extortionists. But there are other
every tonne of cargo bound for these benighted
who brave these hostile coasts, just as the
parts of the world which, for both owners and the
places. The trouble is, of course, that where liner
overfalls, tidal rips and offlying rocks were the
crews of their ships, can be very worrying indeed.
conferences could possibly get away with such
subject of urgent warnings. Why not mark the
“Captain, you are in big trouble!” Consider
a levy, those in the tramp market would be so
charts with red overlays like those which warn of
the number of places where some evil-eyed
anxious to cut each other’s throats that such an
danger areas, that must be avoided at all costs?
official, his revolver swinging on his hip and his
impost would not stand for a second longer than
Above all, let these people know that if they are
tone triumphant, has discovered some glitch
it took to find another ship.
going to be beastly, there is a cost attached.
called for sandbags to be piled around the wheelhouse.
theBaltic September 2010 www.thebaltic.com
25
PROTECT
YOUR
ASSETS MANAGE
YOUR RISKS
www.bergenrisksolutions.com
State of the market Tankers
Capacity requirement to shift Sandra Speares talks to shipping market analyst Fred Doll – and finds that the early months of the year saw tanker fixtures going better than expected
T
here was good short term tanker
OPEC accounts for roughly 40% of the
demand during the first four months of
world’s oil and natural gas liquids supply. OECD
Refining changes shift market pattern
2010, extremely high spot fixture levels
countries have roughly 25% of supplies, but
Over the past couple of years, refining has not
during February and March and early
most of the fields are mature, and European
been very profitable in the US, Mr Doll said. The
April, Mr Doll told a meeting of the Maritime HR
production is shrinking. The BP blow-out aside,
same is true for Europe. Things have been a bit
Forum at the end of May. The forum is used by
a key question is whether Americans will start
better in Singapore, but there have still been
the industry – including a large number of tanker
changing their energy habits, Mr Doll said. “If
“difficult times”.
companies – to benchmark salaries and benefits
they do, that will be a very negative development
packages for employees.
for the tanker market.” If on the other hand, if they continue the
There has been very good performance in China, because refiners are selling into a controlled price environment.
existing pattern, there will be a slower rate of
Refining as an industry is under pressure. US
A tale of two segments
growth, “but still growth, which again is very
refineries are only operating at 85% of capacity,
Longer term oil demand is divided into two
important for the tanker market”.
with some refineries being closed, so the US
segments, Mr Doll said. The developing world
So far, OPEC’s capacity is in excess of the
presents a mixed picture. In Europe, refineries
has healthy demand growth. They also have
world’s requirement, Mr Doll said. “We have
are running at around 81% of capacity. Refinery
a growing refining sector as demand grows in
ample oil right now, there is a supply cushion.”
utilisation is a bit higher in Asia and in non-OECD
countries like China, South East Asia, India and
Some of the excess is, however, high-sulphur
Asian countries.
the Middle East, and Latin America. The US,
and therefore difficult to refine.
Europe and Japan are seeing stable oil demand
While refining may be in decline in some
There has been a lot of price volatility recently,
regions, there are refining expansion plans in
he said. The volume of oil being traded in the
the Middle East and Asia. The Middle East
Overall, 2009 oil demand was 85 million
futures market is much higher than the actual
refiners are intending to refine crude oil locally
barrels per day. The mature economies still
volume oil being used, he said. “As a result, a lot
and export it as products or chemicals to the
account for over half of that demand. As far
of the movements are trading movements rather
growing markets in Asia, Mr Doll explained.
as the developing countries are concerned
than fundamentals.”
There are also large export refineries being
or actual shrinkage.
China has 10%, India 4%, and the other Asian
There are also quirks in the US petroleum
built in India. They are not intended to supply
countries about 8%. These economies are
market, he said. The benchmark crude price is
the domestic market. Higher value distillates
accounting for most of the growth in demand.
set at the Cushing, Oklahoma hub and there are
for destinations like Europe are already being
There is also growth in Latin America but the
some supply and transportation problems which
exported from the Arabian Gulf. Mr Doll said that
Asia segment is “key for the tanker market”.
have resulted in atypical price movements.
while maritime companies might have a strong
theBaltic September 2010 www.thebaltic.com
27
State of the market Tankers successful in the tanker segment, Mr Doll said.
European presence now, the growth is going to
years – as President Chavez chose to maximise
be in Asia and the Middle East. “It could be in
dividends from PDVSA rather than reinvesting
What is happening is switching of vessel
crude, or it could be in product tankers, but your
in expanding capacity. As a result, production
types, “as long as the same amount of money
business plan and your business outlook needs
has decreased by nearly 1 million bpd since
stays on the table”.
to be consistent with a big Asian presence. The
2000. Production is of the order of 2.2 million
The other issue to be considered is the
US market is a key market for VLCCs from West
bpd, instead of the projected target of 5 million
single-hull phase out of VLCCs, Mr Doll said.
Africa and the Arabian Gulf. Product tankers
bpd. In consequence, the US demand is being
There are still roughly 22 million dwt single-
are coming into the US from refineries in South
supplied from West Africa or the Arabian Gulf.
hulls still trading, most at a reduced utilisation
America and Europe. Imports are also coming in
in comparison to the double hulls. Ships are
from India to the US West Coast as they have
being sold for conversion and there is some
targeted that market, Mr Doll said. Long-term
Delivery delayed?
scrapping taking place, but scrapping has been
growth in world oil demand is around 1.8%,
The VLCC fleet is made up of around 540
fairly low after a burst of activity at the beginning
he said.
vessels. So far, slippage or delays on delivery
of the year. Possibly, this involved companies
have been in the order of 10% Mr Doll said, in
that had made a prior decision to scrap their
comparison with slippage in the dry bulk fleet in
vessels without looking at the day to day trading
Falling demand
the order of 30%. “You basically have reputable
environment. “The overall orderbook will more
There was a shrinkage in oil demand of 1.5%
owners, ordering from established yards, so the
than replace the single hulls,” he said. If the
last year, the first time that has happened for
orderbook is much more stable than in the dry
reduction in the use of SH tankers sticks and
many years. US demand peaked at around 20.8
bulk sector.”
they are not allowed to trade after the end of
million bpd and is now below 19 million bpd.
About 80 VLCCs are due to be delivered
2010 “that is very good news for 2010 and early
Lower use of road fuel for freight haulage and
this year, totalling 25 million dwt, of which 6
2011”. However, the single-hull is also potentially
lower amounts of driving and possibly decisions
million dwt has been delivered so far. One to
one of the uncertainties which is holding people
on what US drivers choose to drive has resulted
three month delays have been experienced,
back from setting the staff bonus pool at
in lower demand. Japan has also shrunk
some of which may be as a result of severe
present, he said. “We have had high earnings
significantly and Korea is stable. China and
weather conditions, Mr Doll said or it could be a
compared to what people were expecting but
other Asian countries, however, are increasing
systematic delay problem.
if the single-hull phase out does take place the
oil consumption, in China’s case by 2 million bpd
The total orderbook is around 61 million
way that some people are expecting, then those
since 2006. Other Asian countries’ consumption
dwt, roughly 40% of the VLCC fleet. About 19
vessels will be leaving the trading fleet, either
is up by 1 million bpd and other countries round
million dwt are going to be delivered this year,
for scrap or conversion, by the end of the year.
the 2.5 million bpd largely driven by the Middle
30 million dwt in 2011 and 9 million dwt in 2012.
That is a good result for 2010 but “you can only
East, he said.
There are only 12 VLCCs out of 195 being built
scrap a vessel once,” he said and “thereafter all
One thing that helped the tanker market is that
at “uncertain shipyards” he said, and 38 out
of the newbuilding goes straight through to the
China does not have sufficient desulphurisation
of 140 suezmaxes. Whether or not they will
bottom line”.
capacity, Mr Doll said. This is an expensive
materialise, there are still roughly 100 suezmax
Potentially, the boost in 2010 comes from the
process. The Chinese refineries run a lot of West
ships to be delivered from reliable shipyards,
supply side, he said, and that means the ships
African crude and so do other Asian countries
and only 28 out of 156 aframaxes are ordered at
are not leaving the fleet later on so “you’ve taken
and that has created growth in tanker demand
uncertain shipyards. It is probable that most of
all the benefit up front”. Most of the single-hull
for West Africa. The US has also changed its
the orderbook will be delivered.
replacement has already taken place in the
trading patterns due to the Venezuelan situation
So far, owners are negotiating and trying
– one of the major changes of the last 10
to get cancellations but they are not being
suezmax and aframax segments. If one assumes that order slippage this year is as high as 30%, then rates would probably stay high and scrapping reduce. If 5 million dwt of vessels left the fleet this year, that would mean 8% fleet growth, Doll estimated, with a similar figure for 2011. In addition, some vessels used for storage, would then return to the market. There would be fairly low fleet growth if all 22 million dwt single-hulls were taken out of the market this year. However, in 2011 there are 30 million dwt of ships scheduled to be delivered, about 18% of the fleet. This year has been better compared to 2009, both for VLCCs and suezmaxes, but if singlehulls stop trading by end 2010, rates would start high then decrease during 2011 because of the additional capacity coming into the market. Commenting on loan to value convenants, banks are renegotiating these but at a higher interest rate.
Shrinking US oil demand could affect tanker usage
theBaltic September 2010 www.thebaltic.com
29
State of the market BIMCO update
Sanctioned New time charterparty Sanctions Clause to help owners deal with legislation at all levels
B
IMCO, working together with the International Group of P&I Clubs, has developed a Sanctions Clause for time charterparties. The development of
the Sanctions Clause has been prompted by the recent imposition by the international community of a fourth round of UN sanctions against Iran and by unilateral legislation expanding existing US sanctions against Iran that came into force on 1 July 2010.
Why do we need a clause? The purpose of the various sanctions against Iran is to prevent the development of nuclear weapons capability. As such, the sanctions target imports of certain materials into Iran – particularly refined petroleum products and chemical processing equipment. There is no general prohibition on trade with Iran or with Iranian interests. However, care should be taken to ensure that any cargo for import into Iran is carefully checked to ensure that it is not related to refining equipment or other prohibited material. Similarly, when entering into new business, care should be taken to check that the arrangements do not involve any Iranian entity listed as a company with whom trade is restricted or prohibited. Of particular importance is verifying the identity of the ultimate end user of the cargo. Of significant concern to the shipping industry is that involvement by non-US entities in the importation of refined petroleum products (diesel, gasoline, jet fuel including naptha-type and kerosene-type jet fuel, and aviation gasoline) into Iran, or any assistance in the development of Iran’s domestic refining capability, may result in US sanctions imposed not only on nonUS shipowners (including parent companies), but also on the crew and those who provide services, information and insurance to the vessel, such as managers, the ship’s insurers and their reinsurers.
What happens now?
30
theBaltic September 2010 www.thebaltic.com
State of the market BIMCO update When does it apply? As sanctions are often brought into force within a short period of time, the clause covers the application of sanctions after the vessel has begun an employment under the time charterparty (see sub-clause (b)). Whether the sanctions existed at the time the order of employment was issued, or whether they were subsequently applied, the owners will have the right not to comply with such orders or to refuse to proceed. It is essential that the owners communicate effectively with the charterers if the owners adjudge that the voyage orders will expose the
Sanctions apply to many cargoes entering Iran
venture to sanctions (see sub-clause (b)). The The penalties for breaking the US sanctions
broad application to sanctions and prohibitions
owners must advise the charterers promptly of
are severe and may result in non-US businesses
generally. As such, it reflects the growing use of
their refusal to proceed with the intended voyage
that break the sanctions finding their dollar
such measures by the international community.
and the charterers must provide alternative
transactions blocked by the US banking system.
The reference in sub-clause (a) to “any State,
voyage orders within 48 hours of being notified
Many P&I clubs have already implemented rule
Supranational or International Governmental
by the owners. It may be that only part of the
changes whereby cover will be terminated if a
Organisation” in this context is intended to
cargo on board the vessel will be subject to
member engages in trades likely to expose the
encompass, for example, US legislation (“State”);
sanctions, in which case the voyage orders may
club to sanctions.
EU legislation (“Supranational Organisation”);
be modified to permit the discharge of that part
and UN legislation (“International Governmental
of the cargo at an alternative port, while the rest
Organisation”).
of the voyage is maintained.
What does it cover?
As a general sanctions clause, the BIMCO
The objective of the new BIMCO Sanctions
Sanctions Clause will have a longer ‘shelf-
Clause is to provide owners with a means to
life’ when incorporated into time charterparties
assess and act on any voyage order issued
than a clause designed for one specific set of
What are the charterer’s duties?
by a time charterer which might expose the
sanctions against a particular country. Despite
Failure by the charterers to issue alternative
vessel to the risk of sanctions. The test is one
the generality of the Sanctions Clause it is no
voyage orders within 48 hours of receipt of the
of “reasonable judgement” by the owners in
less effective than a provision that expressly
owners’ notice will result in the owners having
determining whether the risk of the imposition of
identifies a country against which sanctions are
the right to discharge any cargo on board
sanctions is tangible (see sub-clause(a)).
imposed or which identifies a state that has
affected by sanctions at a safe port chosen
introduced unilateral sanctions.
by the owners at charterers’ cost. Such a safe
The clause is not specifically designed only to cover sanctions against Iran; it is a clause that has
port may include the original port of loading. In all circumstances, the vessel will remain
BIMCO Sanctions Clause for Time Charterparties
on hire throughout.
(a) The Owners shall not be obliged to comply with any orders for the employment of the Vessel
In sub-clause (c) the charterers are obliged to
in any carriage, trade or on a voyage which, in the reasonable judgement of the Owners, will
indemnify the owners against any and all claims
expose the Vessel, Owners, managers, crew, the Vessel’s insurers, or their reinsurers, to any
brought by the cargo owners or holders of bills
sanction or prohibition imposed by any State, Supranational or International Governmental
of lading or sub-charterers as a consequence
Organisation.
of the change of orders or, in the absence of a
(b) If the Vessel is already performing an employment to which such sanction or prohibition is subsequently applied, the Owners shall have the right to refuse to proceed with the employment and the Charterers shall be obliged to issue alternative voyage orders within 48 hours of receipt of Owners’ notification of their refusal to proceed. If the Charterers do not issue such alternative voyage orders the Owners may discharge any cargo already loaded at any safe port (including the port of loading). The Vessel to remain on hire pending completion of Charterers’ alternative voyage orders or delivery of cargo by the Owners and Charterers to remain responsible for all additional costs and expenses incurred in connection with such orders/delivery of cargo. If in compliance with this sub-clause (b) anything is done or not done, such shall not be deemed a deviation. (c) The Charterers shall indemnify the Owners against any and all claims whatsoever brought by the owners of the cargo and/or the holders of Bills of Lading and/or sub-charterers against the Owners by reason of the Owners’ compliance with such alternative voyage orders or delivery of the cargo in accordance with sub-clause (b). (d) The Charterers shall procure that this Clause shall be incorporated into all sub-charters and Bills of Lading issued pursuant to this Charterparty.
theBaltic September 2010 www.thebaltic.com
change of orders, the owners’ discharge of the cargo at a safe port. Finally, sub-clause (d) provides for the Sanctions Clause to run through the chain of contracts of carriage. The BIMCO Sanctions Clause for Time Charterparties is available to download from the Documentary/Clauses section of the BIMCO website (www.bimco.org) and is also available for incorporation into time charterparties prepared using BIMCO’s idea charterparty editor. The full text of the clause is shown opposite. Grant Hunter Chief Documentary Affairs Officer BIMCO
31
Heavy Lifting & Transport in Power, Oil & Gas and Petrochemicals
HEAVY EUROPE 2010
INSIGHTS FROM:
28th & 29th September 2010 THE CROWNE PLAZA, HAMBURG
www.heavy-europe.com
Looking to the Future: New Projects, New Vessels & New Limits LEADING EXPERTS INCLUDE:
Thierry Aelans Head of Projects and Operations RWE Innogy Cogen Gmbh
Bill Meyer Director Project Execution Development Foster Wheeler USA Corporation
Tom McGarry Global Logistics Manager M.W.Kellogg Limited
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Foster Wheeler USA Corporation Fluor RWE Innogy Cogen GmbH M.W.Kellogg Limited Fairstar Heavy Transport N.V. Aker Solutions Doosan Babcock Vestas Central Europe RICKMERS-LINIE GmbH & Cie. KG JACOBS Det Norske Veritas British Energy (part of the EDF Group) Essent Energie Productie BV Skuld GL Noble Denton BARD Holdings GmbH Uhde GmbH Wood Group Engineering (North Sea) Danish Meteorological Institute Ince & Co Liebherr-MCCtec Rostock GmbH Euroports
HIGHLIGHTS INCLUDE: • Supersize me – how big will modules get? Hear from the best brains in the business including Foster Wheeler, M.W.Kellogg Limited, Doosan Babcock and Uhde GmbH
Willo van Berkel
Head of Construction, Operations & Maintenance Division (Belgium & Netherlands)
Jac Weggen Manager Turn Arounds Essent Energie Productie BV
Michel van der Kreeft Director of Construction JACOBS
Fluor
Official Partners
DON’T MISS: INTERACTIVE WORKSHOPS 27th SEPTEMBER 2010 A: How to motivate and engage employees to work safely B: Reducing the risk of maritime piracy SITE VISITS 30th september 2010 Liebherr-Mcctec Rostock GmbH and Wallman Terminal
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• Avoid costly delays caused by permits and permissions Uhde GmbH reveals the lessons they learnt the hard way • Get the latest on the new generation of vessels RWE Innogy, Fairstar Heavy Transport N.V., and Aker Solutions all reveal their new vessel plans • Modularisation: What’s the next step? Foster Wheeler will examine how the growth of modularisation will impact construction in the future • Find out how an innovative approach to a shutdown saved Essent E12m How did they slice two weeks off downtime? • It won’t fit! Solutions to heavy lifting in confined spaces Fluor will share the most effective solutions when working in live plants and refineries • Project insights and a financial outlook for the energy sector What’s going to provide the biggest and most challenging projects over the next 2, 5 and 10 years?
To register: www.heavy-europe.com l Email: info@hansonwade.com Tel: +44 (0)20 3141 8700 l Fax: +44 (0)20 7222 2685 Please quote your priority booking code: BAL1
Heavylift Update
Heavy going Project work picks up, but rates fail to follow suit
S
everal heavylift players announced
debris that is saturated with oil. Then this debris
the engineering design verification of a deep-
new contracts in the last few months,
will be stored in a large containment area on the
water jacket and the float-over installation of
giving reasons for optimism in the
vessel’s deck.
the deck.
industry, although rates are still largely
in the doldrums.
The skimming system will collect oil and then
Dockwise is also assisting in the transportation
transfer it to a tank barge working alongside the
of barges to the USA, the Netherlands and
Mighty Servant 3.
Argentina and dredging equipment to the
Although this is the first time the Mighty
Netherlands and Columbia. All of these contracts
The great Gulf clean-up
Servant 3 has been used in such an operation,
are scheduled for the second and third quarter.
Dockwise is assisting in the oil spill clean-up
Dockwise believes the sheer size of the 27,270
Other third quarter awards include transporting a
operation in the Gulf of Mexico and sent its semi-
dwt vessel which is 180m x 40m, means that
semi-submersible rig from Dubai to Brazil and a
submersible heavylift vessel, Mighty Servant
it is perfectly suited to handle this type of large
jack-up rig from West Africa to the Netherlands.
3, out to the site in June. The heavylift firm is
clean-up.
working together with T&T International Fire & Salvage and BP. One of the largest vessels of its type in the world, the Mighty Servant 3 has been outfitted
Representing
André Goedée, Dockwise chief executive more
than
$35
million,
officer, said: “In the second quarter we also
Dockwise also announced 10 awards for
continue to benefit from a slowly increasing
heavy marine transport projects and two
number of inquiries. Tender activity for the years
engineering assignments.
to come remains strong and continues to hold interesting prospects for the larger vessels.”
in Galveston, Texas, with a variety of equipment
Previously he commented that the first
used to collect oil-saturated solid material and
Tender activity holds up
quarter had been “subdued” as expected. But it
excavating
Ocean Dynamics Ltd. (ODL), a member of the
had also seen increased tendering activity. “Our
equipment and a stern mounted skimming
Dockwise Group, was awarded a contract by
strategic view of the industry has been confirmed
system, the vessel will be able to collect solid
the China National Offshore Oil Corporation for
by the emergence of a new set of major scale
oily water. Outfitted
with
long-reach
The Gulf of Mexico oil spill has provided employment for some operations
theBaltic September 2010 www.thebaltic.com
33
WWW.COMBI-LIFT.EU
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· Lifting capacity upto 900 tonnes per unit. · Rolling and floating cargo upto 7500 tonnes per unit. · Dangerous/hazardous cargoes : IMO/INF · In-house engineering department for loadplanning and risk assesment.
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Heavylift Update float-over and deep-water projects for execution
could survive at the current freight levels, he
widening application of Korean risk management
beyond 2012. Dockwise has leadership in this
commented that it was unlikely. But even if a few
techniques, which tend to end up depressing
premium market, where we intend to maintain
individual companies did collapse he did not see
freight levels.”
and grow our presence.”
this as a major force in altering the tidal rise and
BigLift Shipping of Amsterdam has been
fall of freight levels.
The market situation was “trying” before the Euro crisis enveloped the market and had now
involved in several interesting projects recently.
The root causes of the “freight doldrums”
been further exacerbated by the BP/Deepwater
The Happy Buccaneer was engaged by
relate to the mounting oversupply of tonnage,
Horizon catastrophe on the Gulf of Mexico, he
Southern Seawater Joint Venture (SSJV) to
set against a lack of availability of funding for
stressed.
provide a solution for the installation of two
not only much conventional trade but also, more
This incident meant that the oil company
400 tonne concrete seawater intake towers
importantly, for big industrial and petro-chemical
investors would refocus their risk assessment
crucial to the operation of Perth’s new Binningup
projects, he commented.
and causes the oil companies themselves to
The pain only increased as the industry
review their capital spending plans. These
watched the Euro staggering along to say
may anyway be impacted or delayed by new
Originally designed to be towed to site,
nothing of Sterling, he added. “Stir into this
regulations coming into force, he stressed.
BigLift arranged a suitable lifting plan which
mix a general down-turn in US and European
Bedford admitted his views on the rates
involved a four-point mooring system designed
manufacturing capacity, albeit against the
outlook may seem to fly in the face of the received
so both intakes, which were 60 metres
progressive ‘Asianisation’ of industry – and
wisdom that breakbulk rates customarily recover
apart, could be safely landed using the
things do not look that bright.”
two years after mainstream economic return to
Desalination Plant, which will handle 50 million gigalitres annually.
growth.
same mooring spread.
But
Meanwhile, Enchanter loaded three cargoes
barring
“unexpected
events,”
he
in Europe for the Gulf of Mexico. Starting in
Is the market moving east?
commented, “I have to rest my case that whilst
Middlesbrough, a Flexible Deployment System
“Asianisation” is an important element of the
there is presently a certain level of demand (more
(FDS) was stowed below deck, including a
market which is broadly driven by European-
than we might have hoped a year ago) which
tower section and a 156 tonne tensioner. Then
controlled tonnage, he argued. “Quite simply,
will gradually strengthen, a corresponding and
in Kristiansand, Norway, a 290 tonne knuckle
there is a preponderance of project activity for
significant increase in freight rates is not going
boom crane was loaded on deck. And in
both shipment and delivery in greater Asia,
to happen soon”. Cancellation of quite a number
Gdynia, Poland, five RTG cranes were lifted on
which generally means not only a lesser number
of newbuildings will, however, help to heal the
board.
of revenue sea miles on a project but also the
wounds, he quipped.
After transiting the Atlantic, Enchanter delivered the cargoes in the reverse order of loading. The RTGs were discharged first at Houston, the knuckle boom crane to Port Fourchon and finally, the vessel proceeded to Mobile to deliver the FDS. Fairmount Marine has also been busy in the offshore sector, delivering three rigs belonging to Diamond Offshore to Brazil. First the Ocean Courage, followed by the Ocean Valor and finally the Ocean Baroness were delivered in July this year. The company also repositioned the SSCV Balder from Trinidad to West Africa in what it said was record time, with an overall speed of around seven knots.
Rates continue to suffer But while the market does appear to be more active, the rates are still very much depressed. Addressing a conference recently, Fred Bedford, a board member of Jumbo Shipping, stressed that although the heavylift/breakbulk market is certainly not in terminal decline, the rates leave a lot to be desired. The present freight rate levels are a “pale shadow of two years ago,” he says, and are liable to remain “unremittingly so for at least a couple more years”. Bedford said he felt they would not return to satisfactory or “investment grade levels until 2015 or beyond”. When asked if all of the current operators
Lack of funding for major infrastructure projects has hit the industry hard
theBaltic September 2010 www.thebaltic.com
35
S&P
Big spender Some big fleet acquisitions belie the summer ‘quiet period’
I
n the dry sector, several owners have been
has arranged bank debt financing to cover up
vessel fell from $62 million to $57 million over
making large fleet sales and acquisitions.
to 60% of the $545 million price agreed for the
the same period. Only in the handy sector have
Genco, for example, acquired five handysize
supramax fleet, with the remaining money to be
prices remained largely unchanged over the last
vessels from the Metrostar group and 16
raised from capital markets financing in the debt,
quarter. It remains to be seen whether the strong
supramaxes from Stefas SAS, a subsidiary of
equity-linked and equity markets.
rally in rates over August will translate into higher ship values.
Bourbon, in June. Genco intends to retain 13
The prolonged decline in rates over June
of the vessels, 12 of which are expected to be
and July has begun to have an impact on
delivered to Genco in the third quarter of 2010,
second hand values, particularly in the capesize
with the remaining vessel scheduled to be
sector, with prices falling from $73 million for
Tankers
delivered in the first quarter of 2011. While the
a newbuilding resale in May to $67 million in
Tanker prices rose sharply over the first quarter,
handymaxes were purchased for cash, Genco
July this year, while the value of a five-year-old
but have remained largely stable in the last three months, with a new VLCC going for $117 million, according to Platou, while a five-year-old tanker of similar size is valued at $93 million. There has been considerable scrapping activity, with 124 tankers removed from the fleet so far this year, most of them in the sub-70,000 dwt sector. Twelve VLCCs have also been removed from the fleet.
Navios enters VLCC market Some of the most noticeable activity, however, has been Navios Acquisitions’ agreement to purchase a fleet of seven VLCCs for a reported $587 million. Navios Acquisitions intends to finance the acquisition through $453 million of bank debt, $123 million cash and $11.0 million through the issuance of Navios Acquisition shares. Angeliki Frangou, chairman and chief executive officer of Navios Acquisition, stated: “Only 90 days ago, Navios Acquisition was a concept. Upon closing this transaction, Navios Acquisition will control 20 tanker vessels plus options to acquire two additional vessels. This acquisition alone will increase our fleet by almost 296% in dwt.” Ms Frangou continued: “This acquisition represents a strategic expansion into the crude tanker sector. These new capabilities will
increase
our
reach
within
the
oil
transportation industry and enable multiple cross-selling opportunities. We also anticipate opening an office in Asia to facilitate these new relationships and take advantage of the emerging Asian markets.”
theBaltic September 2010 www.thebaltic.com
37
Global leader in ocean towage
Hofpoort 16th Floor, 3032 AC Rotterdam Hofplein 20 The Netherlands
phone + 31 10 240 25 00 fax + 31 10 240 25 99
email sales@fairmount.nl www.fairmount.nl
Towage & salvage
Greening the tug Harbour towage operators are increasingly aware that they have to play their role in the reduction of emissions, particularly because a significant amount of their work takes place in densely populated port cities
D
enmark’s Svitzer has become the lat-
reach a more cost friendly solution,” says Lok.
est towage and salvage operator to
Svitzer
20
ports of Long Beach and Los Angeles in January
seek to reduce its environmental foot-
environmentally friendly vessels join its fleet in
2009. The vessel was designed to retain the
print by ordering two so-called eco-
the next 10 years as part of its fleet renewal
power and manoeuverability of its conventional
programme.
Dolphin class sister tugs, while significantly
tugs. Part of A.P. Moller-Maersk, the company
expects
to
see
more
than
The Carolyn Dorothy was introduced in the
says even though the tugs cost around 50%
reducing emissions, maintenance costs and fuel
more to build than regular tugs, Svitzer believes
consumption. This vessel is also quieter than
Foss wins for hybrid tug
its Dolphin sister tugs on the vessel, onshore
In areas where emissions and particles are
At the same time as Svitzer was ordering its eco-
and under water, and it operates on batteries
a concern, Svitzer expects terminal towage
tugs, one of the pioneers of the hybrid tug was
that can be recharged using shore power. The
tenders to become increasingly insistent on
receiving an Environmental Excellence Award
same hybrid technology used to develop the
environmentally friendly solutions and that this
from the Association of Washington Business.
Carolyn Dorothy can also be used to convert
it is a worthwhile investment.
will also be demanded from port authorities, Svitzer chief executive Jesper Lok says.
Seattle-based Foss won the award for the Carolyn Dorothy, a vessel built in cooperation
Svitzer says the new design differs in two
existing harbour tugs and other vessels into hybrid vessels.
with the ports of Long Beach and Los Angeles.
significant ways from conventional models; namely that it is diesel electric and it incorporates selective catalyst reaction (SCR) and a particulate filter. The new ECO-tugs have an engine setup with three individual diesel-electric engines. When the new vessels are cruising or when they are idle in port, they will only use a single engine. But when they need to tow a vessel they can add power by using two or all three engines. The Danish group expects a 10% reduction in fuel and emissions and a NOx reduction of 70-80% per vessel as a result. In addition, the new vessels, which will be built in the Baltija Shipbuilding Yard in Lithuania, have improved insulation and electric winches. “The
technological
solution
is
now
acceptable but we intend to keep developing the technology and we will hopefully also
Future tug design will be eco-efficient – but costly
theBaltic September 2010 www.thebaltic.com
39
Towage & salvage Green Tug project shows potential
vessel could deliver a 65 tonne bollard pull with
and maintain in shipyards around the world. The
the handling characteristics of a conventional
uncluttered decks, twin forward and aft winches
Meanwhile, in the Netherlands, the well-known
ASD tug, but it would have zero emissions for
and good visibility ensure ease of handling for
Green Tug project has clearly shown the
most of the time and emissions would be very
the three-man crew.
potential of these new tugs. The aim of the
much reduced overall.
In addition to the main engines, which will
Green Tug project was to produce a robust and
However, OSD warn that the costs of
give a maximum transit speed of 13 knots
workable harbour tug suitable for service in busy
developing the prototype will mean a premium
and BP up to 70 tonnes ahead and 65 astern,
ports but with a 90% reduction in NOx, SOx and
over conventional designs. Discussions are
the Azistern has a 300 kW bow thruster. The
particle emissions and a 50% reduction in CO2
currently going on with port authorities to
compact hull has 423 gt and a design operating
emissions.
investigate if they are willing to pay this premium.
draught of 4.25 metres.
hydrogen fuel cells and clean diesel gensets
From principle to practice
Propulsion trials
driving a retractable bow-mounted Voith thruster
In the meantime, OSD has built on the Green
Currently, in cooperation with tug operator
and twin electric main drive stern azimuthing
Tug project to launch a new standard design
Iskes, OSD is assessing and comparing
thrusters. Essentially, a Green Tug should have
for a fuel saving and low wake harbour tug.
three different propulsion systems to develop
the ability to manoeuvre while deploying only
The Azistern 3065 tug will deliver 65–70 tonnes
an environmentally friendly (Tier III) and cost-
battery and fuel cell power.
bollard pull from a 31 metre loa hull. The new
effective hybrid harbour tug of 65 tonnes BP
This project brought together many leading
vessel would be powered by two 1,950 kW
with a low emission range of 10 miles at 7 knots.
players in the Dutch maritime industry. Ijmuiden-
diesel engines driving twin azimuthing stern
The three different systems being considered
based companies Offshore Ship Designers (OSD)
thrusters. OSD’s design would lead to a vessel
are diesel electric propulsion, diesel electric
and Iskes Towage & Salvage worked very closely
that would be around 15% more fuel efficient
with batteries, and diesel gensets batteries
on the project, which was partially funded by
when compared to other modern tug designs,
with onshore power supply. The result of this
a government grant. Smit Engineering, Bakker
due to the optimised hull shape.
assessment is expected to be published in
The basic idea was to develop a harbour tug that is powered by a mixture of batteries, PEM
Sliedrecht Electro Industrie, MARIN, Bureau
The Azistern 3065 is the first in a family of
Veritas, Nedstack Fuel Cell Technology, TNO
designs that OSD will launch soon for different
Certainly, the industry is doing its best to
Science and Industry and LindeGas Benelux
fuel-efficient tug sizes. The hulls have a hard
push on with green technology and a number
also took part.
March next year.
chine form which has undergone extensive
of realistic options have emerged, but everyone
OSD, one of the project leaders, has now
tank testing to optimise energy savings during
recognises that the hybrid tug comes at a price.
delivered a full report on the Green Tug project
transit. It also results in a very low wash, which
It is just a question as to whether port authorities
to the Dutch government and its partners. OSD
is important in a crowded port.
value having a greener port enough to dig a little
concluded that it is certainly possible to design
A conventional machinery package has been
and build a low-emissions harbour tug. This
specified to ensure the vessel is simple to build
40
theBaltic September 2010 www.thebaltic.com
deeper into their pockets.
State of the market Dry bulk
The dry bulk guessing game Traditionally a quiet quarter, Q3 has seen dramatic changes in the dry bulk market this year
A
Kamsarmaxes gain in popularity
Return of the owned fleet?
much of July, the BDI is slowly beginning to pick up again. The capesize
Despite the high level of deliveries, ordering
there could be longer-term changes in store for
sector, which had seen a particularly
remained strong, with 45.3 million dwt ordered
the dry bulk charter markets than the issue of a
severe fall, losing more than half its value since
so far this year, of which almost a quarter was
seasonal slowdown, rapid fleet growth or even
late May, had a sharp uptick in mid August,
placed in July. Orders have been fairly evenly
a long term reduction in commodities demand
heading back over the 3,000 mark for the first
spaced across the sectors, with the exception of
from Asia. Several of the major commodities
time since June - contributing to the fastest rise
classic panamax vessels, which saw a relatively
players are now looking to own and operate their
in the BDI in more than a year. This was attrib-
low rate of orders, with owners preferring post-
own vessels, rather than take them on charter,
uted to Chinese steel mills initially running down
panamax vessels. According to reports in Lloyds
essentially removing a large part of the Brazil-
and then replenishing iron ore stocks. At the
List, many of these are kamsarmaxes, which are
China iron ore volume from the open market.
same time, the likelihood of a poor grain harvest
proving particularly popular with Greek owners
Vale, for example, has placed orders for some
boosted both prices and demand in the handy
as they are easily tradeable. “It is quite a flexible
33 VLOCs. Whether rates remain strong enough
and panamax sectors. With the prospect of a
ship; it has quite high capacity for the size. It is
to make the purchase worthwhile remains to
‘double dip’ in the economy becoming increas-
not like vessels that are built for purpose that you
be seen.
ingly likely, and uncertainty over the amount of
can’t trade easily; these are like currency,” said
tonnage due to enter the market, however, it
Det Norske Veritas, president Tor Svensen
fter a long slide through June and
Some market observers have been suggesting
is unclear whether this represents the start of a
Index Summary
long-term recovery or a brief pause in a gloomy
5,000
season.
Fleet growth
still seen considerable growth over the last year, with total capacity increasing by some 14.7%, to 499 million dwt. The strongest growth was seen in the post-panamax (80-100,000 dwt) sector, where the total amount of capacity has
3,000
2010 can be delivered in time.” The fleet has
2,000
50-60% of the bulker order book scheduled in
BDI, BCI & BPI
believes that: “It is expected that only around
4,000
A statement from STX says that the shipbuilder
02/08/2010
09/07/2010
16/06/2010
24/05/2010
29/04/2010
dwt sold for scrapping in the first seven months
06/04/2010
Demolition, meanwhile,
remains almost non-existent, with just 2.3 million
12/03/2010
increased by 24.4%.
19/02/2010
increased by 40%, while capesize capacity has
of 2010, of which just over half was vessels of 60,000 dwt or below.
BDI
BCI
theBaltic September 2010 www.thebaltic.com
BPI
41
Shipmanagement, crewing and education update
Can supply meet demand? Substantial numbers of newbuildings entering the market will generate demand – and challenges
A
ccording to recruitment specialists
NKr24 million, leaving it free to concentrate on
Spinnaker Consulting the recession
its ship supply business.
Some of the major issues that are up for discussion involve communications and lack
has “saved shipmanagement com-
According to Captain Szymanski, members
of shore facilities for waste disposal, Captain
panies’ bacon”. Spinnaker chairman,
of InterManager have indicated that the outlook
Szymanski says. Shortage of shoreside facilities
Phil Parry, says that this was firstly because two
is good, and there is no panic. “People are quite
for waste disposal is not a new issue but there
years ago the dollar went back to a stronger
happy with what we have got, we are not losing
are plenty of good ideas coming through as to
position, so shipmanagers’ earnings, which are
vessels. I believe the outcome is quite positive
how to deal with it, he says. “Watch this space
denominated in dollars, went up substantially.
for us.”
as we are now getting there.”
Also, he says, cash rich shipowners who
The key communication issue is broadband
called the market right have been buying up
on board vessels, he explains. “There are a lot
Intermanager looks to the future
of misunderstandings between parties involved.
management, and even if they are not making much money with them at present, they are
So what are the main challenges facing
providing it to the end users,” he explains. “We
“playing the shipowning equivalent of the
shipmanagement for the future? Capt Szymanski
need to grasp this whole issue and deal with
contango game”; buying the ships cheap and
says his personal first challenge is to continue the
it.” This is equally a crewing issue, because
as long as they can service them and not lose
work of Guy Morel, who had been instrumental,
expectations of the younger generation are very
too much money on them, waiting for the prices
he said, in propelling InterManager into “high
high where communications are concerned.
to go up and playing an asset game.
flying circles” including becoming one of the
cheap tonnage which they are putting into
That has also benefited shipmanagement companies in that they are being saved from
There are expense issues and difficulties in
non-governmental organisations represented at
Meeting the shortfall
the International Maritime Organization.
the cost base they have had to endure because
He has been travelling extensively to meet
While this is good news on the shipmanagement
their customer base is doing well. “Some of
the members of the trade association to “make
side, the sector still faces a number of challenges.
them have told us they have had their best year
sure we are all on the same wave length and
Not only is there a crewing shortfall, but demand
ever, which is quite a surprise,” Mr Parry told the
I understand their needs”. His first trip was
means crew may be promoted too quickly, and
Maritime HR Forum recently.
to the Far East, taking in Manila, Hong Kong
without having gained the necessary experience
According to InterManager secretary general
and Singapore to meet members and potential
or training.
Captain Kuba Szymanski, who took over the
members. “I will continue doing that,” he says.
Captain Szymanski is upbeat about the
role from Guy Morel in June, while the situation
Developing InterManager in the Far East is
number of cadets coming through the system,
is not necessarily as simple as that, “we are
a priority, as are developing regional meetings.
saying that all InterManager members take
very pleased that the shipmanagement market
Rather than getting members to come to
cadets on their vessels. “We are training new
is not suffering as much as was predicted,
London, “we are going to members”, he says.
blood,” he says. “We are actually full at the
now that people are buying and they have not
Meetings have already been held in Monaco,
moment and haven’t enough spaces for cadets.
the capacity to manage the ships themselves.
Hong Kong and Singapore. “We are listening
If we are talking about shortages, we should
However, we also see the reverse of that, where
to our members, they are telling us what they
take all the cadets that are available because
companies are closing down and third party
want to discuss and areas of particular interest
they are available.”
managers are losing business”.
to them.”
Pressure on margins and falling volumes were
In the UK, he says, there are about 1,500 in
cadets and “they are all screaming to go on
blamed for Eitzen Maritime Services’ decision
places in Poland and Scotland, as well as
board a vessel”. This will provide a pool of
to sell its shipmanagement arm to Sanary for
Cyprus and Dubai.
experienced crew within five to seven years,
42
More
meetings
are
planned
theBaltic September 2010 www.thebaltic.com
Do we know the ropes? Yes. From top to bottom. Years of experience. At your disposal. Of course, experience doesn’t count for much on its own, you need knowledge, understanding and flair to be successful. And we wouldn’t have been in business for 120 years without having plenty of all three. So if you’d like to talk to a ship management company that will exceed your expectations call: 0207 575 6000 or email: shipman@aws.co.uk
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Shipmanagement, crewing and education update but the groundwork must be done now, he
the market will be buoyant going forward, he
increasing at rates seen between 2003 and
says: “cadets, cadets, cadets, training, training,
said. With a recent plunge in the Baltic Dry index
2009 but at the same time they are not going
training.”
of nearly 50%, it is still questionable whether
down either, he says. This is a plus, in view of
Work permits, and visas for crew members
those who have bought newbuildings in the
the fact that in 2008 salary increases were of the
filling shoreside jobs, is also a problem as is
last three or four years have made a “smart
order of 25% per annum.
the thorny issue of allowing seafarers ashore in
acquisition”, Mr Giorgi says.
The officer shortage, he says, is still there as
ports. InterManager has been lobbying hard on
is the crew quality issue. Very rapid promotion
this issue as have other organisations like the
in the past five years has caused an experience
changes, and even in cases where they want
Risk management takes on a key role
training is needed, both ashore and on the
to go to church or make a telephone call. “They
In some markets, like containers, there has been
ships. Berths for cadets are also a problem, he
shouldn’t be treated as second-class citizens.”
a recovery but others, like chemical carriers,
says, with newbuildings not being designed with
InterManager has signed a memorandum of
have been suffering badly. There is still a lot
this in mind.
understanding with the International Transport
of tension in the marketplace, he says. While
Consideration is being given to a project by
Workers Federation to lobby on this issue.
shipmanagers have potentially more business
which a fleet of cadet ships would be introduced,
Nautical Institute. Problems occur during crew
deficit among senior crew members. More
Captain Szymanski says there are plenty of
available, there is equally more risk of defaults,
with onboard training facilities. Incentives should
good facilities worldwide for training seafarers,
and a very detailed risk assessment of the
be offered to owners to build vessels with more
“the problem is getting them enough training
business you are taking on is crucial.
accommodation space, in order to encourage
at sea”.
“There are more opportunities, but some
cadet training.
opportunities you don’t want to take, because
Mr Giorgi believes that there should be more
you don’t think the risk you are taking is worth
integration between ship and shore personnel.
‘Nervous’ market
the management fees the client is prepared to
A vessel should be considered like a company,
While the outlook for shipmanagers may have
pay. You need good quality business, not just
he says, with the master as managing director
improved, the market is still very nervous,
any business,” Mr Giorgi explains.
having a much more integrated relationship with
according to V.Ships president, Roberto Giorgi.
In 2009 V.Ships had to terminate contracts
“It is not a stable market,” he said, with market
for 30 ships as they were deemed to represent
worries on the economy both in Europe and
too high a risk in financial terms.
those ashore. V.Ships has 35 recruiting offices focusing on areas like Russia, India, Ukraine, the Philippines,
One positive outcome of the current market
Croatia, Italy, Bangladesh and Romania. “We
Everyone is looking towards the four main
is that there is less poaching of personnel, Mr
are making much more financial commitment in
economic powers of Australia, China, India and
Giorgi explains, and less movement from one
order to make sure we get the right guys.”
Brazil, and growth in Asia will determine whether
company to another. Salaries are no longer
the US.
Increasing fleet size presents crewing challenges
theBaltic September 2010 www.thebaltic.com
45
Shipmanagement, crewing and education update
News Update A round-up of the latest news from across the sector Nautical Institute opens up membership The Nautical Institute has announced a major revision of membership criteria, extending membership beyond seagoing officers to include all those in control of seagoing ships and those who support them. The initiative was unanimously approved by the Institute’s annual general
Does your international medical insurer go this far?
meeting in Cork. “This acknowledges that in the 21st century there are more than seafarers working to support those in control of seagoing ships,” said the Institute’s chief executive, Philip Wake. “It is necessary to recognise that the safe operation of shipping, whether commercial or naval, is now, or should be, an integration of the command team on board and the management ashore. “This will open up membership to those with operational level qualifications or those in sectors such as offshore, coast guard, port operations, and the management team ashore. We call on them to join and help make a difference to the way ships are operated.” He continued: “Membership of the Nautical Institute will help all qualified
Evacuation to the nearest centre of medical expertise.
seafarers keep up with new technology and regulations, and thanks to our new NGO status at IMO we can give members a direct line to that agency’s decision making.” There are other benefits, too. With membership of 6,500 in over
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.
110 countries and over 40 branches, there are many opportunities for networking and to improve job prospects. “There is also the question of professional recognition,” added Mr Wake. “Increasingly employers are demanding membership of a professional organisation and often cite the Institute as an example of this.”
Bupa International Healthcare. Everywhere. +44 (0) 1273 322 091 www.bupa-intl.com
Shore personnel are now eligible for Nautical Institute membership
46 Bup_OilRig_270x86_Col_The Baltic_Sept10.indd 1
theBaltic September 2010 www.thebaltic.com 23/7/10 11:29:27
Shipmanagement, crewing and education update The new criteria are designed to welcome all maritime professionals with qualifications directly into full Membership (MNI) and to recognise professional development beyond paper qualifications. As a result, all qualified seagoing officers will be eligible to join, as will pilots, harbourmasters, VTS personnel, Designated Persons and other shore-based managers, professional yachtmasters, marine surveyors, maritime lawyers, and maritime health and welfare professionals. A new grade of Associate Fellow (AFNI) has been introduced to
LEARN FROM THE EXPERTS
recognise professional development to command of seagoing ships; other senior positions at sea, such as chief officer and chief engineer; and those who have attained senior management positions ashore. Those undertaking initial education and training for a maritime career will be encouraged to join as Associate Members (AMNI), as will ratings, boatmasters and other non-management level personnel. Increasing and expanding the Institute’s membership will amplify the voice of the mariner at the highest decision making forums, said Captain James Robinson, newly elected president of the Nautical Institute. Speaking at his election to the presidency of the Institute, he also highlighted the need for the industry to counter ill-informed comment on shipping casualties by politicians, some media and general public, and indicated that the Institute will continue to work with other like-minded international bodies to ensure that abuses of the Fair Treatment Guidelines are highlighted at the IMO and in the media generally. “The response must highlight the importance of a full and speedy casualty investigation and the need to avoid prejudging the matter until after the investigation and legal process are complete,” he said. “Above all, lessons must be learned to improve safety.”
Norway is one of the leading shipping nations in the world and BI Norwegian School of Management (BI) has a long tradition of teaching and doing research in the Shipping area. Recently, BI added a Bachelor of Shipping and Finance to its portfolio. Bachelor of Shipping and Finance The Bachelor of Shipping and Finance at BI will give you a taste of an exciting and globalised industry: The Shipping Industry. Executive MBA Shipping, Offshore and Finance The Executive MBA in Shipping, Offshore and Finance is a unique programme combining the latest research and theory with a good practical exposure to cutting-edge real-life challenges. To find out more about our Shipping programmes, visit www.bi.edu
EU sets up maritime task force The EU has set up a task force to establish a comprehensive “social agenda” for employment and competitiveness in maritime transport, said Siim Kallas, Commission vice-president responsible for transport, speaking at the International Shipping Conference in Copenhagen in June. The task force is to present its results next year. “Quality and innovation is about people: we need now, and even more in the future, highly skilled and motivated staff to safely and efficiently operate our high-tech ships. And we need skilled engineers and workers to design and build these ships. Unfortunately, seafarers seem to be an endangered species in some parts of the world. We therefore want to get more young people interested in shipping and its exciting and various career opportunities. We also need to address better working conditions and develop more open and flexible career perspectives,” Kallas said.
EFMD
The industry needs more skilled workers
theBaltic September 2010 www.thebaltic.com
47
Shipmanagement, crewing and education update Lloyd’s Register introduces training ‘benchmark’
CMA CGM launches shore programme
and gives confidence to all stakeholders that students’ needs are being met.
Lloyd’s Register has launched a new scheme
On successful completion of Part 2, the
CMA CGM has launched a new training
aimed at helping training providers deliver
trainer will receive a Lloyd’s Register of Approved
programme with a special focus on seafarers
courses to recognised standards.
Training Course certificate and approval mark for
as part of its Specialised Masters in International
The new Lloyd’s Register’s Approved
Part 2. The provider’s course titles will also be
Maritime Management in partnership with
Training Provider Scheme is designed to approve
added to the Lloyd’s Register approved courses
Euromed.
both training management systems and specific
list on its website.
courses, whether these are provided by an
The programme, which will be opened first to
According to Lloyd’s Register, the benefits of
CMA CGM employees and later on to external
independent college or academy, or the training
certification under the scheme include:
candidates, is aimed at seafarers or former
department of a shipping company or manning
• The ability for the trainer to demonstrate to
seafarers who wish to improve their knowledge
agency. It will provide independent assessment
clients that it provides the required level of
in business management, management and
and certification of the provider’s ability and can
training.
international trade. It joins a series of several
act as a benchmark for the marine industry in
• The ability for the trainer to demonstrate to
existing programmes developed in partnership
its selection of courses for staff development
clients that the content and delivery of its
with France’s ‘Grandes Ecoles’ (HEC, ENSTA,
and training.
courses meet set standards verification of
Normandy Management School, Le Havre
the integrity of the trainer’s management
University, IGS…), especially those in the
The scheme has two parts:
system.
Part 1 assesses the training organisation to
Provence region and Marseilles, where the
• Confidence in the quality of the trainer’s
head office of the Group is located. These
establish its ability to provide the required level
course design and delivery.
of training to its customers. It gives assurance
David Taylor, Lloyd’s Register’s deputy
Maritime Management, Maritime MBA, and
that a training provider has established and
service delivery manager, marine training, says:
Master of Science Maritime Management.
implemented a management system for the
“This innovative service will benchmark training
These partnerships are aimed at both sharing
provision of training services, and that the
in the marine industry and will give confidence
theoretical and operational knowledge in order
system is regularly reviewed.
to the training providers, the learners, and their
to develop skills, as well as raising the profile
companies that the learners are getting the good
of the industry and the professions associated
quality knowledge and skills they expect.”
with it.
Part 2 assesses the trainer’s individual courses against their stated learning deliverables
include Specialised Masters in International
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48
theBaltic September 2010 www.thebaltic.com
Shipmanagement, crewing and education update “The Group’s objective is for the company to be a reference in the shipping industry and our partnerships with the ‘Grandes Ecoles’ help us to achieve this level of excellence,” said Thierry Billion, senior vice-president human resources, CMA CGM Group.
Warning on MNOPF deficit Moore Stephens says employers need to act promptly to manage their exposure following notification of liabilities for deficits under the Merchant Navy Officers’ Pension Fund (MNOPF). Employers have recently received notification of their share of the liability arising from the
MNOPF shortfall would pose a threat
deficit under the scheme, which has been set by actuaries at £575m for the period
“Some employers with December 2009 year-
provides evidence of issues which existed at the
ended 31 March, 2009. In addition, there is an
ends, who have reported their results already,
end of the reporting period, for example at 31
outline recovery plan for an additional shortfall
have not been providing for their additional
December 2009.
of £402m. Moore Stephens Shipping Industry
obligation based on an estimate which the
“As a result, employers will be required to
Group partner, Michael Simms, says, “For
actuaries had prepared in November 2009,
provide for their share of the MNOPF deficit
shipowners and other employers, this could
maintaining that there were uncertainties in the
based on their proportion of the historic share
have serious implications for financial accounting
estimated obligation and that they therefore
indicated by the trustees in prior years or on
and reporting, working capital and funding
could not obtain a reasonable estimate of
more recently revised share information from the
issues, potential loan covenant breaches and
their obligation. But that argument can no
trustees. Employers participating in the MNOPF
discussions with existing lenders, as well as
longer be used following publication of the
need to act promptly to manage their exposure.”
potential going-concern issues.
most recent report from the actuaries, which
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theBaltic September 2010 www.thebaltic.com
49
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www.shipnet.no Improving Business Processes
Shipmanagement, crewing and education update China tightens oil response regs
entering into a Chinese port. A list of approved OSROs has yet to be published.
Damage (CLC), both of them ratified by China. The UK Club says the Regulation makes no
Shipowners and operators trading in Chinese
Oil tankers’ liability limitation is the same as
reference to direct action against insurers. As
waters face an extensive set of new legal and
the scheme provided in 1992 CLC. Other ships
per PRC Special Maritime Procedure Law, oil
regulatory requirements governing their roles
may limit liability in accordance with the Chinese
pollution damage claims may be brought directly
and responsibilities in oil pollution incidents,
Maritime Code. According to the Regulation,
against the insurers or other persons providing
according to the UK P&I Club’s July Legal
clean-up costs incurred by the Maritime Safety
financial security for owners’ liability. This means
Briefing.
Administration should be compensated in
compulsory liability insurers for oil pollution
China’s Prevention and Control of Marine
priority to other claimants. This may conflict
damage can be sued directly under Chinese law
Pollution from Ships Regulation came into force
with the CLC and the Bunkers Convention,
and the CLC and Bunkers Convention.
on 1 March and dovetails with the Marine
which lays down that all admissible claims are
The UK Club briefing warns that while the
Environment Protection Law of the People’s
to be treated equally and without priority for
Regulation sets up the general framework of
Republic of China, laying down the principles
government claims.
Chinese oil pollution law, “it cannot resolve
and outlining the country’s marine pollution legal
A compulsory insurance regime for all ships
all issues initially. There are difficult long-
system. However, UK Club notes, the detailed
(except those less than 1,000 gt and not
term questions, such as the title to sue, the
requirements under the Regulation have yet to
carrying oil cargoes) will cover claims arising
admissibility of compensation claims, methods
be revealed.
from oil pollution damage. This should provide
of investigation and burden of proof, which
Ships carrying polluting and hazardous
the implementing legislation, which will give
remain to be clarified, either by supplementary
cargoes in bulk and other ships above 10,000
effect to the insurance provisions of the 2001
regulations or rules of judicial practice”.
gt must pre-contract with an approved Chinese
Bunkers Convention and the 1992 International
oil spill response organisation (OSRO) before
Convention on Civil Liability for Oil Pollution
Ships containing hazerdous or polluting goods must pre-contract for clean-up services before entering Chinese waters
theBaltic September 2010 www.thebaltic.com
51
Corporate viewpoint Concateno
Exposed The dangers of benzene to seafarers
F
ollowing the Deepwater Horizon disaster, one of the largest operations in history is underway as attempts are made to clean up the tens of millions of gallons
of crude oil spilled in the Gulf of Mexico. With
such a large scale operation, which to date has involved some 5,400 response vessels and more than 25,000 people, the risk of exposure to the highly toxic and volatile chemical benzene is a significant threat. Benzene is a flammable liquid which occurs naturally in crude oil and natural gas. Crew on board vessels involved in the clean-up efforts
experience, accredited processes and rapid
of mind for the crew.
may be exposed to dangerous levels if their
BEB technology is being adopted in the Gulf
turnaround times mean that its customers are
working environment is not carefully monitored
of Mexico by Norwegian shipping company,
guaranteed unsurpassed accuracy and integrity.
and controlled.
Eidesvik, which is using Concateno’s sample
The large-scale nature of the Deepwater
Seafarers can ingest benzene by inhalation,
collection kits to ensure that its seafarers are
Horizon disaster means that long-term exposure
but also absorb it through the skin – even
continually monitored for the presence of
to highly toxic chemicals can be expected for
through indirect contact, given its volatile nature.
benzene.
many as a result. Concateno would urge any
In the short term, exposure to low levels can
As is always the case on board Concateno’s
shipping company working on the clean-up
cause numerous health problems, including
customers’ vessels, the health and welfare of all
operation to consider adopting an effective
tremors, headaches and unconsciousness.
crew members is paramount. During this clean-
benzene testing programme to ensure the safety
Benzene is a significant cause of leukaemia and
up operation, Eidesvik is particularly mindful of
of its crew.
other blood-related illnesses, and exposure to
the health risks of benzene exposure.
high concentrations can cause death.
Aside from an employer’s duty of care to
The Concateno benzene kits provide marine
assess, monitor and manage risks on board, the
Concateno, Europe’s most experienced
companies with a simple method of testing its
shipping industry has witnessed an increase in
chemical, drug and alcohol testing provider with
crew. Urine samples are taken using the vials
the adoption of chemical testing and monitoring
20 years’ experience in the maritime industry,
supplied and bio-packaged ready for dispatch
programmes due to the recent tightening of
has been providing its unique benzene urine test
to Concateno’s laboratories. Analysis takes a
international regulations relating to benzene
kits and exposure analysis for vessels involved in
few hours and customers can have the results
exposure and seafarer welfare.
oil spill clean-up operations.
faxed or e-mailed back to them within two days.
For further information on our benzene
Exposure
Since Concateno’s Maritime division added
exposure service, or to attend an upcoming
Biomonitoring (BEB) measures S-PMA (S-phenyl
a low-cost, sensitive benzene test to its range
seminar on benzene biomonitoring, please
mercapturic
metabolite
of drug and alcohol services, the kits have been
contact us.
produced when benzene is absorbed into the
quickly taken up by shipping companies across
body. The procedure allows rapid screening
the world, including the Norwegian shipping
of at-risk individuals as required, which helps
company, Seatrans. Many vessels keep a stock
to identify and minimise potential exposure to
of the test on board, ready for instances such
hazardous substances, therefore protecting the
as the current operation in the Gulf of Mexico.
health of the seafaring crew.
The test provides a simple, fast and cost-
Concateno
effective means of determining exposure to this
Harbour Quay
hazardous compound.
100 Preston’s Road
Concateno’s acid),
Benzene a
benzene
BEB uses state-of-the-art urine analysis to rapidly identify exposure and trends. The benefit of using a urine sample is that it is easy to collect
Concateno’s network of staff across all
on board, and can determine all possibilities of
the major shipping routes and international
exposure, either through inhalation or contact
petrochemical
with the skin. Such monitoring can help
organisations can benefit from the widest range
Tel: +44(0)20 7712 8000
determine the effectiveness of an organisation’s
of efficient, professional and responsive testing
E-mail: maritime@concateno.com
health and safety procedures and provide peace
programmes on the market. Concateno’s
Website: www.concateno.com
52
locations
ensures
London E14 9PH UK
maritime
theBaltic September 2010 www.thebaltic.com
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
•
International sample collection service: •
Professionally trained network of officers
•
On board testing
•
24/7 collections
•
Legally defensible chain of custody procedures
•
Self collection service for post incident testing
•
Programme management, support and advice
•
Benzene exposure biomonitoring
Gulf Oil Spill: benzene exposure risks monitored by Concateno Health fears addressed amid clean-up operations Concateno has collected the first samples of its benzene exposure kits from vessels involved in the Deepwater Horizon oil spill clean-up operation. This procedure provides rapid screening to identify and minimise potential risk of exposure for seafaring crew.
Tel: +44 (0)20 7712 8000 Email: maritime@concateno.com www.concateno.com
Concateno Harbour Quay, 100 Preston’s Road, London, E14 9PH, UK
CGP7433 Ed.002
To find out more about our benzene exposure biomonitoring service for your company please contact us.
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Environment
Green shipping ECA realities start to hit home
3.50%, from the current 4.50%, on 1 January
The company says reports that it plans to
The shipping and bunkering industries are now
2012 and then in phases to 0.5% from 1 January
“drop its Canada/New England itinerary after
coming to terms with the reality of a 1% sulphur
2020. The 0.5% limit is subject to a feasibility
August 2012” are premature and that nothing
limit in the North Sea and Baltic Emission Control
review to be completed no later than 2018.
definite has yet been decided about schedules
Areas (ECAs), and also with the inevitability of
Within the ECAs the cap will be reduced to
after April 2012. However, it reportedly estimates
a similar, strictly enforced regime around North
0.10% from 1 January 2015.
that using distillates to meet the 1.5% cap would
America in two years’ time. The latest reduction in the sulphur limits allowed by the revised Annex VI (Regulations
The 1% cap does not appear to have caused too many problems so far, and sufficient supplies appear to be available.
cost it an extra $16,340 a day. One major cruise operator has opted to test out a system that promises to both meet current
for the Prevention of Air Pollution from Ships) of
The scheduled 2012 introduction of the
sulphur oxides (SOx) and nitrogen oxides (NOx)
the International Convention for the Prevention
North American ECA has, however, prompted
limits and also dramatically cut emissions of the
of Pollution from Ships (MARPOL convention)
cruiseship company Fred. Olsen Cruise Lines
greenhouse gas carbon dioxide.
entered into force on 1 July 2010.
to look very carefully at whether to include calls
Royal Caribbean Cruises is to install a pilot
The 1% cap is part of a progressive reduction
in North America once the North American
test plant of Singapore-based Ecospec’s CSNOx
of SOx emissions which will also see the global
Emission Control Area (ECA) comes into force
system on Royal Caribbean International’s
sulphur cap outside the ECAs reduced initially to
in August 2012.
Independence of the Seas. “Every day, we
The proposed North American ECA
theBaltic September 2010 www.thebaltic.com
55
Environment are actively researching methodologies and
it is expected to shortly be type approved
ahead to the challenge of rigorously analysing
technologies that will reduce our emissions of
by ABS as a SO² and NOx scrubber. The
these classes of problems and finding solutions
not only SOx and NOx, but also CO² as part
US classification society has also verified tests
that are agreeable to the major stakeholders.”
environmental impact,” said Jamie Sweeting,
showing significant removal rates of CO². The willingness of two major North American
and chairman of Lloyd’s Register, said: “The
global chief environmental officer and vice
operators to test the system will be widely seen
LRET is extending its support throughout the
president of environmental stewardship for
as a vote of confidence for Ecospec.
world in a number of important areas. We want
of our comprehensive strategy to reduce our
David Moorhouse, LRET chair of trustees
Royal Caribbean Cruises. He added: “We are
to encourage the study and development of
optimistic that the CSNOx system will help us to
science, engineering and technology to help
meet our goal.”
LR to fund emissions research
solve the many challenges the world faces, such
Lloyd’s
charity
as climate change and the huge increase in
tested on the White Sea, a Tanker Pacific
foundation, The Lloyd’s Register Educational
energy demand. Our work in Greece is part of
panamax vessel, in 2009. The results of this
Trust (LRET), is to fund a research programme
this effort for the wider public benefit.”
test, published by Ecospec in February 2010,
into shipping emissions at the National Technical
revealed a 99% reduction in SOx emissions,
University of Athens (NTUA) over the next five
a 66% drop in NOx, and a 77% drop in
years. The commitment will be worth over $1.
CO². Additionally, Ecospec says, wash water
5 million.
The CSNOx technology was installed and
Register’s
independent
World Ocean Council looks beyond shipping
test results surpassed the IMO’s exhaust gas
The initiative is intended to look at the totality
Maintaining a clean ocean environment, or
cleaning discharge criteria. The Royal Caribbean
of emissions from shipping in a holistic manner,
failing to do so is often seen as exclusively
pilot test is expected to be complete by spring
to address design, construction and operational
the responsibility of the shipping and offshore
next year.
aspects to provide insight into potential solutions.
industries. Looking at the wider view, over 150
ship-
NTUA’s Professor Harilaos Psaraftis said:
attendees from a wide range of ocean industries
operator, Canada Steamship Lines (CSL), has
“I am really happy to be associated with the
– including shipping, oil and gas, fisheries,
signed a letter of intent with Ecospec for both
Centre of Excellence and look forward to the
aquaculture, mining and offshore renewable
parties to work together to develop and install
next five years. The issues we shall be looking at
energy – participated in the World Ocean
CSNOx technology within the CSL fleet.
are at the forefront of knowledge development
Council’s inaugural Sustainable Ocean Summit
While there has been a large degree of
for sustainability in maritime transport. Such
(SOS) in June. With the theme of “Reducing
industry scepticism about the CSNOx system,
knowledge is multi-disciplinary and I can only look
Risk, Increasing Sustainability: Solutions through
Another
North
American-based
Carbon emissions are of increasing concern
56
theBaltic September 2010 www.thebaltic.com
www.aalborg-industries.com Aalborg Industries A/S Gasvaerksvej 24 PO Box 844 9100 Aalborg Denmark E-mail: aal@aalborg-industries.com Tel.: +45 99 30 40 00 l
l
l
l
l
l
Environment Collaboration”, the SOS covered a range of
together to consider the ocean not just as an
rapidly growing organisation. Membership is
ocean stewardship issues, including marine
industrial platform but as an ecosystem that we
open to ocean industries who demonstrate a
spatial planning, the Arctic, biodiversity, marine
are all a part of”.
commitment to collaboration and leadership
In recognition of the International Year
in addressing ocean sustainability challenges.
Never has it been clearer that the single
of the Seafarer, a special session of the
The growing membership currently includes
most important factor determining the health
summit highlighted the need for the ocean
ExxonMobil, Rio Tinto, Transocean, Det Norske
of the ocean is the way business is done
industries to focus greater attention on safety
Veritas, Golder Associates, Torm A/S, ICS, Blank
in the marine environment, and that industry
and environmental education for maritime
Rome, and Columbia University’s Center for
leadership in ocean protection is critical, forum
professionals. Peter Hinchliffe, marine director
Energy, Marine Transportation and Public Policy.
organisers claimed. “Sustainable oceans are of
for the International Chamber of Shipping, and
“Given the importance of the world’s
crucial importance to the private sector and to
others emphasised the respect seafarers have for
oceans to the global environment and the
society as a whole,” said Richard Pruitt, director
the marine environment and the opportunities for
global economy, the World Ocean Council will
of environmental programs, Royal Caribbean
harnessing this to improve ocean stewardship.
serve a critical function in bringing together
Cruises Ltd. “The issues covered at the SOS
“The Sustainable Ocean Summit represents
industry leaders in ocean stewardship,” said
provided the foundation for global collaboration
an important catalyst for industry participation
Rodger Melton, Chief Environmental Scientist for
and the future work of the World Ocean Council.”
in the growing global commitment to ocean
ExxonMobil. “We look forward to being a part of
The SOS included the first international
sustainability,” said Karen Hansen, principal,
this collaborative alliance.”
debris, and sound in the marine environment.
industry seminar on marine spatial planning.
Beveridge & Diamond P.C.
“It is the responsibility of all the users of
Participants from around the world learned
“The businesses involved in the event had
the world’s oceans to ensure that we work
about the growing efforts to address multiple
an unprecedented opportunity to share ideas
towards leaving our seas pristine and flourishing
uses of the ocean through this approach, and
and aspirations on business involvement in the
for the many generations yet to come,” said
encouraged the World Ocean Council to work
processes and decisions on balancing society’s
Claus Jensen, executive vice president of Torm
with ocean industries to better understand and
interests and needs for use of ocean resources,
AS. “TORM AS’ decision to join and support
engage in marine spatial planning.
globally and locally.”
the creation of the World Ocean Council as a
Golder
Founding Members of the World Ocean
Associates, said that the conference “for the first
Council convened at the conclusion of the
time brought a wide variety of business interests
SOS to form a Steering Committee for the
Jim
Renner,
senior
geologist,
theBaltic September 2010 www.thebaltic.com
Founding Member is an important step towards uniting all industry leaders.”
57
Oxford Analytica
BP spill changes global offshore outlook Oxford Analytica looks at the broader consequences of BP’s Deepwater Horizon explosion and oil spill for the offshore industry
E
vents in the Gulf of Mexico and Washington are being closely watched around the world. The impact of the spill, and of the regulations that are
being introduced as a result, will be felt in a number of other countries.
Challenges for Brazil If there is one country set to test the technological frontier of deepwater drilling, it is Brazil. Pre-salt reserves are found at a water depth of 5-7,000 metres, under a 2,000-metre layer of salt, and 300 kilometres from the coastline. Although Brazil stands to benefit from the unexpected availability of deepwater rigs and related equipment following the Deepwater Horizon explosion, and an influx of companies with cash on hand looking for prospects, the disaster is likely to create more challenges than benefits. The disaster took place a few weeks before the Brazilian Senate approved legislation allowing the government to relinquish five billion Photo credit: NASA
barrels in exchange for stock in state-controlled oil company, Petrobras. In parallel, Petrobras planned to conduct a mega capitalisation to enable it to implement its 2010-14 business plan, demanding upwards of $200 billion. The capitalisation, planned for July, was recently postponed until September, because legislation required that the National Petroleum Agency
58
Deepwater Horizon will have far-reaching effects on the offshore industry
theBaltic September 2010 www.thebaltic.com
Oxford Analytica (ANP) conduct an independent evaluation of
Global effects
That means that for deep-water exploration
reserves’ value. The appraisal, by a recognised
The accident in the Gulf of Mexico will revitalise
a relief well needs to be drilled parallel to the
expert international consultancy contracted by
environmentalists’ resolve to fight projects
exploration well. A number of companies argued
the ANP, is expected by late August.
perceived to pose risk, and governments have
that this is an impossible proposition as deep-
taken note:
water exploration wells in the Beaufort Sea take
Although this makes Petrobras’s financial
Medvedev
two or three years to drill. Ironically, they also
increases transparency on the value of reserves
expressed concern about the financial health
claimed that new technology had made drilling
the government ceded, and allows time for
of BP, whose TNK-BP joint venture is the
“so safe” that relief wells were no longer needed.
Petrobras, the government and ANP to ease
third-largest oil company in Russia; Russia’s
The companies insisted that relief wells were
investor concerns.
legislators have begun debating updated
rarely the right tool in an emergency.
management
even
more
challenging,
it
Petrobras has a state-of-the-art safety,
• Russian
President
Dmitry
environmental laws to deal with oil spills.
Although drilling a relief well is acknowledged
environment and health programme that includes
• Bulgarian Prime Minister Boyko Borissov is
to increase blowout risks, this seems the only
ten 24-hour marine environment centres. It
considering pulling out of a regional pipeline
way to deal with a remote out-of-control well.
keeps three vessels on call permanently to deal
project over concerns that the route passes
Winter conditions – the norm for most of the
with possible emergencies, and has invested
through protected areas.
year – limit ability to move equipment, which might result in oil spewing from a well for months
heavily to train its workforce in safety and
• Residents of Fernie, in British Columbia,
environmental preservation. However, the spill
Canada are angry at BP’s start of a coal-bed
contention technologies it employs are the same
gas project the government approved over
Since the Deepwater Horizon explosions,
as counterparts in the Gulf of Mexico; like its
broad-based opposition. While the project
the NEB halted the review and is waiting for
peers, Petrobras will have to invest heavily in
would likely have encountered opposition
reports on the causes before ruling on the relief
development of new contention technologies
regardless, the fact that BP was awarded it
well requirement. However, exploration in the
and methods, in addition to development and
made the protest national news.
Canadian Arctic is planned for 2014.
testing of an improved blow out preventer (BOP).
Although the United Kingdom already has
Operating costs will escalate to unknown levels.
stringent offshore regulations, adopted after
reviewing offshore regulations:
the 1988 explosion of the Piper Alpha natural
• The Canada-Nova Scotia Offshore Petroleum
gas platform, the Deepwater Horizon accident
Board extended the moratorium on oil and
Market valuation to fall?
has led to increased vigilance. The Department
gas exploration on the Georges Bank to the
It is unclear whether companies with heavy
of Energy and Climate Change (DECC) will
concentration of deepwater assets – other than
recruit additional inspectors and double annual
in the Gulf of Mexico – will also see market
environmental inspections of drilling rigs, and is
Petroleum Board launched a review of
valuations adjusted downwards as a result
reviewing indemnity and insurance requirements
offshore safety practices, but did not halt
of an increase in risk and other premiums.
for operating in the UK Continental Shelf.
drilling.
Of particular concern is potential for a sharp
In addition, a new group of regulators and
Chevron is drilling a 2,600 metre deepwater
increase in insurance premiums. Early reports
oil companies – the Oil Spill Prevention and
well in the Orphan basin, off the coast of
indicate a 15-25% rise for rigs operating in
Response Advisory Group (OSPRAG) – has
Newfoundland. Although Chevron executives
shallow waters, and up to 50% for deepwater
been established to examine UK strengths and
sought to reassure a Senate committee that the
rigs. Significantly, India’s Oil and Natural Gas
weaknesses, responding to a Gulf-like incident.
project can be done safely without risking a major
Corporation reportedly paid 88% more than last
Robust regulation is also in place in Norway.
spill, worries about BOP shortcomings have led
Nonetheless, the government summoned a
the company to develop a new device named
The experience of Anadarko and Mitsui as
dozen companies to explain additional security
“Alternative Well Kill System”. Its objective is
BP’s minority partners in the Macondo may
measures – if any – taken following the Macondo
to cap the well in one operation instead of
also affect other companies’ appetite to hold
disaster. Until more information on causes
three steps the current BOP model uses. New
minority stakes in deepwater projects. A high
emerges, Norway has suspended awarding
technology is still being tested.
or undefined environmental liability cap in Brazil,
deepwater drilling licenses in new areas. The
The Deepwater Horizon accident is still
combined with partnership conditions imposed
accident bolstered arguments of those wanting
playing out and, two months later, the extent of
by new pre-salt legislation – where Petrobras is
to protect against oil and gas development in
damage is still uncertain. However, political and
the sole operator and controls project operations
the Lofoten Islands, where 1.3 billion barrels
financial fallout is widespread, and the disaster
together with the newly created Petrosal – would
are estimated to exist. Norway will also have to
will represent a watershed in the history of the
make it challenging to secure partners willing
decide on resource exploration in the Barents
offshore oil industry.
(and/or able) to invest in ultra deepwater.
Sea and Arctic Ocean.
year to insure onshore operations.
if not years.
Other
Canadian
jurisdictions
are
also
end of 2015. • The
Canada-Newfoundland
Offshore
A robust offshore sector requires responsible corporate behaviour combined with an equally responsible and firm regulator. Although the
Arctic concerns
fact that the Brazilian government is Petrobras’s
The National Energy Board (NEB) has regulatory
majority shareholder means stewardship of
oversight over drilling in the Canadian Arctic.
Brazil’s environment is in the company’s and
In April, when the Macondo well exploded, the
government’s interest, asymmetry between the
NEB was conducting hearings to review safety
Report by Oxford Analytica
ANP and Petrobras is a weakness that must be
requirements.
www.oxan.com
addressed.
The NEB rule for the Arctic requires a mandatory same-season relief well capacity.
theBaltic September 2010 www.thebaltic.com
© 2010 Oxford Analytica E-mail: dgautrey@oxford-analytica.com
59
Corporate viewpoint LCH.Clearnet Ltd
Controlling Container Risk
O
n 28 June 2010, LCH.Clearnet
a significant milestone in the development
launched its clearing service for
of this market.
with the general public’s perception of shipping. CFSAs offer the same hedging principles
over-the-counter (OTC) container
Throughout the last decade, most of the
as those traded for the dry bulk and tanker
freight swap agreements (CFSAs).
discussions relating to container derivatives
markets. The CFSAs will be cash settled
As the first clearing house to enter this growing
concerned the creation of an index for
on a monthly basis against the Shanghai
and increasingly important market, its service
timecharter period rates, a sector that primarily
Containerised Freight Index (SCFI), which is
will increase liquidity, bringing new participants
interested brokers. Now, however, there is
an established industry index published by the
into the market, and manage risk against vola-
increasing client demand from end users, retail
Shanghai Shipping Exchange (SSE). The index
tile price movements. The leading provider of
customers, logistics providers, and freight
incorporates the input of ship-owners, carriers,
freight clearing services, LCH.Clearnet has over
forwarders, due to the increasing volatility in
and non-carriers. The SSE fulfils a similar role
five years of experience in successfully clear-
prices. Over a period of four months (Oct 2009-
to that of the Baltic Exchange for the FFAs,
ing forward freight agreement (FFA) deriva-
Feb 2010) the cost of shipping a container from
gathering and publishing route assessment
tives. This latest pioneering step to introduce
Shanghai to Europe rose over 179%, leaving
information using a panel of 15 carriers and 15
a container clearing service constitutes a sig-
end users and shippers unable to accurately
service providers. Initially, the contracts cleared
nificant development within the industry, and
plan for forward pricing. Hedging their physical
by LCH.Clearnet will be based on the most liquid
is likely to accelerate the trading of box freight
deals has become a necessity. In addition,
routes out of Shanghai; to the Mediterranean,
derivatives within the multibillion dollar container
volatile prices attract speculators to the market,
North West Europe, the US East Coast and
market. The first cleared trades were conclud-
further adding liquidity. Furthermore, for retail
the US West Coast. These contracts cover
ed by Clarkson Securities (CSL) and Freight
customers the concept of containers is easier to
around 25 million boxes per annum, with an
Investor Services (FIS) through LCH.Clearnet,
grasp than dry bulk markets, and is more in line
estimated value in 2010 of more than $40 billion, representing around 20% of the total global container market.
Contracts Cleared • LCH.Clearnet has initially launched clearing for the four most active routes: • Shanghai to North West Europe • Shanghai to Med • Shanghai to US East Coast • Shanghai to US West Coast • The European contracts are traded in multiples of TEU (twenty foot boxes) and the US contracts are traded as FEU (forty foot boxes) • Margins at launch have been set at approximately 10% to 15% of contract value • Clearing Fees are $3 per lot (one box) Since the range of counterparties within the container industry is so diverse, there is great potential for market growth and the product will be developed to cater for a variety of different client needs. It is predicted that this reduction of credit risk through clearing could result in 10% of the underlying physical market to be composed of container derivatives within the next five years. Clearing through LCH.Clearnet will enable market participants to benefit from the stability and implicit security of the LCH.Clearnet default fund and its highly regarded risk processes.
www.lchclearnet.com/freight
60
theBaltic September 2010 www.thebaltic.com
FFA
Building the Asian market Neville Smith looks at the development of the freight derivative market in Asia, ahead of the FFABA annual forum in Shanghai
T
he Freight Forward Agreement Brokers’ Association is no stranger to Asia, having held its annual forum in Hong Kong and Beijing in recent years. This year’s
event in Shanghai takes place against a different but equally challenging market backdrop. With the underlying bulk market under pressure from vessel oversupply on the one hand and falling commodity demand on the other, FFA traders and brokers are keen to understand how the local scene will develop in the short and long term. Up till now, the answer to both scenarios has been “slowly” for well-understood reasons. Trading of FFAs in Asia has grown in importance as the physical market has tilted eastwards. But trading volume has remained centred around London time.
What drives development? The location of the financial institutions which dominate trading has been a contributing factor, with the banks that are among the London’s most active members resolutely anchored in GMT. Chinese players meanwhile have had to work through Singapore and Hong Kong subsidiaries to meet mainland regulatory requirements. The growth of FFAs in Asia mirrors the development of the market itself. Derivatives spent years as a Cinderella until conditions made the need to hedge freight risk unavoidable. With the breaking of benchmark pricing for iron ore, conditions exist to drive a similar uptake to trading. Asia also has dedicated clearing, available from Asian open to New York close, with straight through processing. Traders clearing through
Shanghai – the next freight derivatives hotspot?
theBaltic September 2010 www.thebaltic.com
61
FFA spread with few people taking interest. It tends
SGX during Asian time can see the status of
to wait for 7:30 London time when the European
their trade immediately, helping to increase confidence in counterparty relationships. Despite the recent slowdown in demand
traders walk in through door.”
“You could have a
But he says the weighting to London is not
wide bid/offer
a distortion of the market. “Asia does not lack
for physical iron ore and an accompanying
a market-maker. There is no market-
price fall, the potential of the iron ore swaps market in tandem with paper
maker in Europe either. I think that
freight is huge and the need
more people in the market asking
pressing.
brokers for prices is what actually kicks it off.”
Mudit Paliwal, executive vice
Trading
president of Noble Chartering says
remains
centred
on
the end of the iron ore benchmark
a handful of large players and more
could be the game changer that will
are needed, but the increased number of
bring more Chinese companies into
brokers based locally is also seen as important in increasing the volume of
the picture.
trades in coming years.
“The way iron ore has progressed,
So
annual pricing broke down, now
perhaps
the
continued
reliance on London as the FFA
we have quarterly pricing and the feeling is that this might break down
market’s centre of gravity no longer
with sales going monthly and priced
matters. After all, splitting the trading
spot,” he suggests. Even with bilateral
between two timezones might result
physical agreements between the mills
in dilution of liquidity rather than a bigger pie – at least as long as earnings
and the miners, the iron ore swaps
remain fragile.
market will be the only means for price risk management and control of exposure.
Bringing the market to China Do time zones matter?
Xu Guibin, executive vice chairman of the China Shipowners’ Association, says
But he notes that despite the growth of Asian traders and locally-based players,
The market is still centered on European
that, while the future looks positive, there
trading still tends to wait for London.
Timezones – for now
are issues that need addressing before
but we can help you manage it
We cannot predict the future
22 FFA brokers on both wet and dry FFAs 3 dedicated options brokers Live screen trading platform with LCH, NOS and OTC prices Technical analysis bespoke support and regular reports London and Hong Kong desks SSY Futures Ltd Tel: +44 (0)20 7977 7500 Email: futures@ssy.co.uk To find out more about SSY contact Duncan Dunn
62
Iron ore swaps broking Daily Reports London and Hong Kong desks SGX cleared screen Authorised and regulated by The Financial Services Authority
SSY Futures London, Lloyds Chambers, 1 Portsoken Street, London E1 8PH. Dry: +44(0)20 7265 1871 Wet: +44 (0)20 7977 7501 SSY Futures Hong Kong: (+852) 2521 1641 ASSOCIATE OFFICES: • Beijing • Bermuda • Hamburg • Jakarta • Monaco • Mumbai • Naples • New York • Oslo • Shanghai • Sydney • Vancouver • Zug
Adding value to the freight futures market theBaltic September 2010 www.thebaltic.com
F U T U R E S
Corporate viewpoint AXS Marine SA
AXS Marine Work faster and more efficiently with information at your fingertips
T
ime is definitely money in today’s fast
AXSDry’s
Vessel
Manager
featuring
Alphaliner
moving shipping industry and being able
AXSTracker facilitates the updating of incoming
AXSMarine’s powerful data sorting, processing
to gather, assimilate and act on the right
tonnage e-mails without having to read them
and sharing technologies transform Alphaliner’s
information at the right time can be cru-
all. Also available in an MS Outlook plug-in is a
rich databases into true productivity tools.
cial to ensuring success over failure, as well as a
facility where the original e-mail can be saved and
Alphaliner provides its subscribers with a unique
healthy profit margin.
retrieved from the vessel database. In this way, a
picture of the liner industry, unparalleled in its
broker can transform thousands of positions into
accuracy.
That is where AXSMarine comes in. Its services are designed to take advantage of ‘Web
his own personal, searchable file.
AXSTanker
2.0’, the second generation of internet-based
AXSDry Club members can now view up-to-
communities which aim to facilitate collaboration
date chartering positions as part of their service
Users of the market leading AXSTanker suite can
and information sharing between users.
for a small additional monthly subscription,
now look forward to even further improvements
while brokers are able to benefit from additional
in the service offered only to competitive tanker
interactive, internet-based decision-making tools
marketing
their
brokers, following the launch of Version 3.0
and databases for shipping industry professionals.
chartering position information to the AXS
of the internet-based software. Not only will it
AXSMarine’s online tools are secure, fast and
database.
have an upgraded interface and include a more
AXSMarine produces a complete set of
advantages
by
uploading
easy to use, and the databases they source are
user-friendly look and feel, but improvements
always up-to-date. Because they are internet-
AXSAddressbook
to the functionality of the system will also serve
based, they are available from any computer,
Many shipping organisations have already
to enhance database interrogation and data
anywhere; there is nothing to download or install.
migrated to, an MS Outlook exchange messaging
retrieval.
All companies’ users’ privacy is guaranteed
platform. About 95% of required functionality,
Brokers looking to search the database can
at all times. Permanent availability is ensured
which has only been available in industry-specific
do so now based on vessel draft and beam
through rigorous redundancy and back-up
message system offerings, is configurable off-
restrictions as opposed to just using Panamax
routines. With one click to connect to AXSMarine,
the-shelf within MS Outlook. AXSMarine is now
or Suezmax vessel size search strings. There is a
users access a complete catalogue of online
providing the industry with a free distance table
new attach file capability on the system as well as
analytical programmes. These programmes can
from its public website.
AIS data sourced from Vesseltracker, map, and
be tailored to the individual user’s requirements.
history access capability. Equally as important,
AXSS&P
Q88 files can now be uploaded via the AXS
collecting raw data from reputable sources.
AXSS&P is the first AXSMarine product to
Support system (e-mail to support@axsmarine.
AXSMarine subscribers also add their own
maintain the common platform theme, but this
com) and can be exported in PDF, text or Word
information – always privately, and sometimes
time, without providing a sharing capability
formats. New filter tools have been installed at the
to share with other members. AXSMarine’s
between different clients. Encompassing all of
new log-in page (widgets) that will enable users
purpose-designed algorithms transform this raw
their standard search and database features and
to retrieve data in any pre-defined way, such as in
data into databases of searchable and sortable
many more, AXSS&P allows users to override
tabular, graph or trend format.
information.
technical specifications, add their own vessels,
AXSMarine has teams of product specialists
and incorporate their own proposal templates,
For more information, please contact:
AXSDry
with full integration to MS Outlook allowing
AXSMarine Headquarters
AXSDry is a complete set of online tools and
users to add e-mails and attachments directly to
80 rue Taitbout, 75009 Paris FRANCE
databases designed for the dry bulk shipping
vessels in the database. Conversely users may
Tel: +33 1 53 43 05 70
industry. It enables its users to have a complete
retrieve e-mails and attachments directly from the
AXSMarine Pte Ltd
view of the dry bulk shipping market without
AXSS&P database – ultimately reducing the need
10A Trengganu Street, Singapore 058464
having to sort through thousands of e-mails, or
to constantly search e-mail archives.
Tel: +65 6225 3115 AXSMarine Limited (London)
manage multiple programmes on their computer desktops. AXSDry offers subscribers a wide
AXSOffshore
60 Cannon Street, London EC4N 6NP
variety of features, including Vessel Manager,
Developed together with two high profile
Tel: +44 207 002 1089
Cargo Manager, Voyage Calculator, FFA Manager,
shipbrokers, AXSOffshore has taken AXSMarine
Fixtures, Distance Calculator, Freight Matrices,
further into the realms of a common platform
E-mail: commercial@axsmarine.com
Port Library, and MOPS (Marine Operations
which is database independent.
MSN Messenger: support@axsmarine.com
Performance System).
Yahoo! Messenger ID: axstanker
theBaltic September 2010 www.thebaltic.com
63
Keynote and Industry addresses
VIsIonarIes In shIppIng Forum
Niels-Henrik Lindegaard Group Vice President, A.P. Moller Maersk marIne Fuel BusIness heads
Carlos Barbosa General Manager, Petrobras Fuel standard and emIssIons polIcy experts
HIN LEONG
FFA China in particular can consider itself a major player in the paper market. “Although it has been 20 years since FFA products entered the market and having achieved a lot, it is still a new thing in general for the China market. Far from enough [has been done] for Chinese players to well understand it,” he told The Baltic. Nonetheless, Mr Xu says China takes “an open stance to financial derivatives’ and as such he expects FFAs to have good prospects with Chinese owners. Standing in the way of growth are two key issues, education and regulation. “It is fair to say that the front-line practitioners have a fair understanding of the products, but at the management level people are not well aware of the functions and potential risks of the products,” he adds. Mr Xu characterises the risk management of the derivatives market as “at the start-up stage”. Though not unique to the FFA market, the applicable regulatory system is immature.
Risk management in the derivatives market is still at the start-up stage
“FX and fuel derivatives have had similar problems. In the last couple of years, there have
same issues are at the heart of moves by the
substantially to trading volumes, so there is little
been cases of huge losses because of improper
US CFTC and European Union to regulate Over-
prospect of learning by doing.
use of financial derivatives. As a result, the
The-Counter derivatives in their jurisdictions. So
regulatory bodies have tightened the regulation
perhaps China is not so different after all. Mr Xu’s remedies are relatively simple and
and this has been a major restriction for
probably familiar to veterans too.
Chinese organisations, especially state-owned
Second, the FFA market should take more responsibility in terms of regulatory oversight. “By decreasing the default risk, increasing transparency, and avoiding possible market
Both Chinese companies and regulatory
manipulation, such a market will be more easily
bodies need a much better understanding of
accepted by the China market players,” he
Whether the trading is improper, unlucky or
freight derivative products. This education needs
suggests.
badly managed is open to question, but the
to happen before more companies will add
enterprises, in the trading of financial derivative products, including FFAs.”
Container swaps enter the stage
Building confidence
If Iron Ore Swaps are the FFA market’s little brother, then Container Freight Swap Agreements
But it is not all one-way traffic. Chinese
(CFSA) are the newborn of the family. Like any new mouth to feed, they come with their own challenges and potential. The container market, having long resisted attempts to commoditise box slots and dabbled in vessel charter contracts, seems to have accepted that CFSAs are here to stay. The question for their proud parents is when this new product will stand on its own two feet. Alex Gray of Clarkson Securities says CFSAs are “moving along nicely”, with interest from the retailer and freight forwarder community, as well as a couple of shipping lines. The first meeting of the CFSA Association takes place in Shanghai alongside the FFABA Forum and Mr Gray says a broad cross-section of Asian and European lines are keen to know more. “It’s slow and steady. We don’t delude ourselves that trading in multiples of 10 or 20 is a solution. But we are starting to get lot sizes in 50 and 100 boxes, which is a serious step up from where we have been.” Once bigger clips of a thousand or more boxes start going through, he says, the broker will feel it is “delivering something useful to people”. Key to that is clearing, and with LCH.Clearnet and SGX offering the service, there is room to take the next step, according to John Banaszkiewicz of FIS, the other major broker
organisations, he says, have a responsibility to improve their overall risk management systems. FFAs should be used to reduce risks rather than increase them by excessive speculation. So what of the short term? With freight and commodities tied ever more closely together, how does Mr Paliwal see the Asian market getting a kick-start that builds back volumes and confidence? His answer might put him at odds with the regulators but not with the seasoned hands who saw the market through its decade of development. While the challenges of default risk have driven FFAs to the ‘extreme’ of a 95% cleared market, he says a strategy that combines cleared and OTC business can make trading more cost effective. “I would say in every market OTC trading has its own place. My feeling is that traders
offering the swap. “Compared to the bulk markets, containers are easy to grasp and far more in line with the general public’s perceptions of shipping. With the launch of container swaps, my wife can finally understand what I’m on about when I bore her over dinner.”
theBaltic September 2010 www.thebaltic.com
might do more long-dated trades like Cal 13 or Cal 14 if they were allowed to do them OTC, so they wouldn’t have the same pressure of margin calls.”
65
Corporate viewpoint CME Group
CME expands freight offering G
lobal derivatives giant CME Group
that have in many ways
has fixed its sights firmly on clearing
built today’s futures indus-
the freight markets and has developed a strategy to build a significant
presence in the sector by offering a world-class alternative to LCH Clearnet, NOS and SGX. The Baltic meets CME Group’s director of energy, Justin Bozzino. Freight derivatives may be big news in the shipping markets, but in the wider derivatives market it has remained a niche business, inaccessible to many agricultural and energy market traders. However, the entry of CME Group on to the scene has the potential to
“We are here for the long term”
try. These include the standardisation of futures contracts, the formation of the clearing process, the creation of financial futures, cash-settlement and electronic trading. In addition, CME’s NYMEX division
pioneered
the
Justin Bozzino
clearing of OTC contracts in 2002 with the launch of ClearPort. Today there are over 900 contracts listed for clearing
shake-up the sector, bringing in new players and
via CME ClearPort, totalling over 39 million lots
reducing the cost of trading for all.
of Open Interest.
“For too long, seaborne freight has been a
Benefits of CME offering
With so much freight derivative trading
secondary thought for many traders outside
According to Justin Bozzino, one of CME
activity focused on London, it made sense for
the shipping sector,” says Justin Bozzino, the
Group’s biggest advantages is the ability for
the CME’s European office to head the drive
exchange’s director of energy, EMEA. “Through
companies to offset their margins by combining
into the shipping markets.
CME, FFAs are now available to a wider range of
dry or wet freight trades with other products on
people know that we are here, make them
companies than ever before.”
“We need to let
CME Clearport. Seaborne freight can be offset
feel comfortable with our clearing systems and
Spearheaded by its European team at its
with so many of CME’s existing products and
show that we can offer a cost effective solution
large London office in Cannon Street, CME
in so doing, reduces the amount of margin that
for freight clearing. This is not going to happen
Group announced in May that it would be
needs to be posted when a series of positions
overnight, but we are here for the long-term.
expanding its freight market presence, adding
are held. CME is able to offer 20 different offsets,
Our rates are significantly lower than any of our
to its tanker derivatives market clearing
including dry freight and bunker fuel, wet freight
competitors and we are here to add value to the
services, which it has offered since 2005, by
and refined products, and in the near future
post trade process,” says Justin Bozzino. He
providing clearing for the dry FFA market. With
hopes to also offer more offsets, dependent on
notes that as the FFA market has seen a drop
around $9bn in guaranteed funds, over 3,000
customer feedback. Offsetting trades means
in overall volumes in the past two years, many
companies and over 15,000 individual market
that more capital is freed up and reduces the
customers are now more focused on the cost of
participants currently using CME Group’s OTC
cost of trading.
trading in a way which did not happen during the bull market years.
clearing services, the announcement that it
“Not all clearing houses are equal,” says
would offer additional contracts for both the
Justin Bozzino. “We have been around for 130
He adds: “ClearPort gives us the ability
wet and dry FFA markets has the potential to
years, have never had a clearing member default
to grow markets and we have a proven track
greatly increase liquidity by bringing into play
and have a tried and tested model.” Formed
record of doing so across a range of sectors.” A
a whole new set of companies who were not
as a merger between the Chicago Mercantile
company the size of CME Group can clearly play
able to access the niche freight markets. CME
Exchange and Chicago Board of Trade (CBOT)
the long game and understands that markets
has a huge reach into a range of markets,
in 2007, the CME Group subsequently took over
evolve rather than grow overnight. “We are doing
especially companies trading energy, metals and
the New York Mercantile Exchange (NYMEX)
this as much as anything to provide a service to
agricultural products. The company has nine
in 2008, creating the world’s largest and most
our existing client base,” says Justin Bozzino.
offices in the USA, Brazil, Singapore, Japan and
diverse derivatives exchange. CME Group is
“It’s the right thing to do for our customers and
Europe as well as a tie-up with DME in Dubai.
responsible for many of the key developments
we are here for the long term.”
66
theBaltic September 2010 www.thebaltic.com
Corporate viewpoint CME Group Furthermore, CME Group’s dry market services are based on a flexible approach. “Flexibility is key to the dry freight market and we list contracts in both full and quarter-day size to allow for trade splitting and shaping across months. However, the market currently seems comfortable with full day clip sizes.” On the tanker side, CME lists both $ per ton and Worldscale based forwards for 10 clean and dirty routes. CME Group’s approach is to work with FFA brokers rather than try to cut them out. “We have a post-trade service that offers a transparent process,” says Justin Bozzino. “We work closely with brokers and have created a user friendly system which enables brokers to enter their clients’ trades and provides them with instantaneous confirmation. There are no delays whilst credit checks are carried out and we offer straight through processing directly into customer risk systems, 24-hours a day.” Trade submission usually takes place through the CME ClearPort website, although an API is
Companies do not need to be members of
For more information, please contact:
CME to trade through ClearPort, but there are cost advantages in doing so.
also available for connection by broker screens.
CME Group, Watling House
Submitted trades are checked automatically
Justin Bozzino
33 Cannon Street,
against risk limits and the trade is confirmed or
T: +44 (0)20 7796 7132
London EC4M 5SB
rejected immediately.
E: justin.bozzino@cmegroup.com
Website: www.cmegroup.com
theBaltic September 2010 www.thebaltic.com
67
Reaching new heights...
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Ship agencies
Looking beyond the port Ship agencies expand services to provide end-to-end sectoral coverage
D
espite a year that was as difficult for ports as it was for shipowners, the largest ship agents have been taking the opportunity for expansion, both
geographically and in terms of the services that they offer. The sector is still largely fragmented, with 85% of the market held by local companies. Rather than seeking major consolidation, multinational players are now looking to provide services tailored closely to individual sectors. Inchcape Shipping Services (ISS) continued its course of impressive growth during 2009. It handled a total of 66,700 port calls in 2009, slightly up from the 2008 figure, and had a gross turnover of $2.5 billion. While this represented a fall from the $3 billion equivalent figure in 2008, it clearly shows that the company has retained a strong presence in a difficult market. One factor contributing to Inchcape’s
strong position is its decision two years ago to concentrate on what it calls the evolution from being a ‘partner of choice’ to ‘a strategic partner’, competing on adding value and the level of service offered, rather than just on price point. Like all ship agents, Inchcape has been “under huge pressure to cut prices”, says ceo Claus Hyldager, “but we are not going to be a low cost provider”. He is forthright about the reasons for this strategy: “Choice is increasingly about price. Strategic partnership is about strengthening the relationship between agent and principal or putting more ‘glue’ between us and our partners. Yes, this is about making it harder for them to leave, but it is also about changing what we have to offer. Rather than low cost, we are concentrating on offering ‘fair value’ and scalable outsourcing solutions.” South America is a key market for expansion
theBaltic September 2010 www.thebaltic.com
69
Ship agencies Growth
says Hyldager. ISS has made acquisitions in
Full service provider
Two years ago, Inchcape set out an ambitious
West Africa, and is now one of the only launch
Further expansion of its strategic role came with
expansion plan. This has continued, despite the
operators in Nigeria. The company has also
the acquisition of specialist crew travel provider,
well-publicised financial difficulties of the parent
re-established a fully-owned office in Cape Town,
Global Marine Travel, in May 2010. “We have
company, Dubai World. As one of Dubai World’s
and opened an office in Walvis Bay, Namibia, in
been looking to enter the marine travel business
most profitable subsidiaries, ISS is currently on
May this year. “The opening of the Namibia office
for some time, and see the acquisition of GMT
the market, although market reports suggest
gives ISS an important foothold in the south-
as an ideal way to move into the sector,” said
that one serious offer has been blocked by the
western seaboard of the continent,” said Allan
Jon Corner, executive vice president group
US due to concern about the company’s naval
Vermaark, senior vice president for Africa.
commercial for ISS. “The values and vision of
services sector. In order to boost ISS’ attraction
South America is another area targeted for
GMT fit in very closely with our own and we
to prospective purchasers, credit lines of up
expansion, with the company opening an office
see strong scope for using the ISS network to
to $350 million of staple financing have been
in Trinidad and Tobago in March this year.
build on GMT’s current office footprint. We share
secured with Bank of America Merrill Lynch and
In addition to the expansion of its global
many common customers with GMT and have
Royal Bank of Scotland, according to reports on
presence, ISS continues to expand the range
no doubt that bringing together the services
Bloomberg.
of services that it offers. The acquisition of Coal
of the travel provider and the agent providing
Export Services International in 2009 opened up
marine husbandry services will lead to a stronger
the opportunity to develop its commodities role.
value proposition and increase the strategic
Geographical expansion
In another move to expand this area, ISS has
partnership value to our customers.”
In line with the expansion plan, ISS is targeting
entered into a joint venture with a log handling
Terry Gidlow, executive vice president group
expansion in Africa, where a fast growing
company in New Zealand. Closer involvement
strategy, said the acquisition was the first of
shipping sector is served by what is still a
with commodities of this kind is part of the
several ISS is planning as part of its 2015
relatively under-developed infrastructure. “It’s
company’s growing value proposition, making
strategy plan.
difficult to make a difference in Antwerp or
it possible to provide an increasingly tailored
Rotterdam, but in Nigeria or Ghana, you can,”
service, the company says.
Agents are providing more specialised services
70
theBaltic September 2010 www.thebaltic.com
“We have the appetite and the capital for consolidation,” Hyldager says. “However,” he
Ship agencies
continues, “there is always a place for the small,
specialist arm, GAC Energy and Marine Services
For ISS, the scheme also feeds into the
local agents. ISS has no desire to push them
(GEMS) in Houston, the establishment of a $35
company’s proposed development into a
out, and in fact can offer them opportunities for
million loan facility to develop oil operations in
strategic partner, by creating a programme that
growth through education and partnerships.”
Kazakhstan, Africa and the Middle East, and
is aligned with principals’ strategies, producing
Nevertheless, he says, there may not be a place
the opening of ship agency operations in Rio
staff with the skills that they will need if work is
for mid-size regional agencies in the future.
de Janeiro. One of the main attractions of Brazil
to be successfully outsourced.
Like other agents, ISS says it has suffered
was its importance in both the shipping and oil
The first step in the process is to determine
from owners not always paying their bills, and
and gas markets, and GAC aims to create a
training needs in each region. Courses are being
has tightened up debt control as a result. Lay-up
network of offices from the Rio base across the
developed in association with established training
services have provided a considerable revenue
country as a whole. “Growth potential in Brazil
providers, including the Institute of Chartered
stream that has compensated for the drop in
is boundless,” said Robert Oisson, general
Shipbrokers, Lloyds Maritime Academy, BIMCO
cargo business. Furthermore, some principals
manager shipping services GAC Brazil. “In the
and others, and will include modules on a wide
are now more ready to save money through
long term, I expect GAC to become a strong
variety of areas, including finance training and
additional outsourcing services. There is also a
player in this market.” GAC Brazil’s managing
management training. The management training
rising number of ‘reluctant owners’, who have
director, Rodrigo de Marco, emphasised the
course, which is expected to start in 2010, will
come into ownership of assets as a result of
wide role that the agency is targeting: “We
provide formal training in the shipping industry
bankruptcy or loan default, but do not have the
operate in a world where clients want more
and the way it operates, as well as management
expertise to operate a ship. These include banks
integrated service packages and the savings
training.
and hedge funds.
that come from those.”
Courses will be delivered through: • E-learning
GAC aims for oil sector
Training
• Classroom
Like ISS, GAC is seeking to provide end-to-
Perhaps the major problem facing large ship
• Virtual classroom
end services which extend well beyond the
agents in the future is the same facing the
• Universities and business management
traditional role of a ship agency. In particular, it
maritime industry as a whole – the increasing
has made a number of moves in recent months
difficulty of finding skilled personnel. Both ISS
to strengthen its services across the energy
and GAC have chosen to tackle this by setting
sector. These include the opening of an energy
up their own training programmes.
theBaltic September 2010 www.thebaltic.com
schools
71
Maritime security
Theory into practice A guide to best practice offers clear and practical advice on avoiding, preventing and coping with pirate attack
A
s the risk of coming under pirate
a clear outline of major concerns and the most
release of a hijacked vessel and/or following a
attack remains a high profile concern
effective way of addressing them.
period of poor weather when pirates have been
of shipowners and seafarers alike,
The book begins with a broad discussion
unable to operate.” It follows with an outline of
the number of options to reduce that
of common types of pirate attack, including
some of the most useful and simple tactics.
risk is multiplying rapidly. In previous pages,
how, when and why they occur – though this is
Essentially, these are:
The Baltic has looked at some of the technical
constantly evolving – and times at which pirate
• Maintain full sea speed – at present, no
solutions that are available, and an increasing
attacks are most likely. For example, it suggests:
pirate has ever successfully attacked a vessel
number of companies offer training and advice,
“The risk of a piracy attack appears to increase
up to and including the provision of armed
immediately following the
travelling at 18 knots or over. • Take extra precautions where vessels have low freeboard. Ships with a minimum
guards and escort vessels. However, the breadth of choice can be
freeboard of 8 metres have a much
bewildering, particularly for vessels that do
greater chance of avoiding
not regularly transit high-risk waters. Witherby
boarding.
Seamanship’s Best Management Practices
•
to Deter Piracy off the Coast of Somalia and
not mean the crew are trapped
Ensure high security does
in the Arabian Sea (BMP) may not have
in the vessel in a different kind of
the most concise of titles, but provides a
emergency.
thorough rundown of basic advice for both
•
managers and seagoing staff that can be a
and drill.
Provide suitable crew briefing BMP offers advice on good
good starting point for decisions on further support. The booklet is backed by a wide
practice
variety of trade organisations, including
from initial planning through to
throughout
the
transit,
BIMCO, the ICS, IMB, Intercargo,
defensive measures, manoevres, the
Intertanko, and naval forces operating
employment of outside experts, and
in the Gulf of Aden area, including EU
thorough advice on what to do in the
NAVFOR.
event of boarding and capture – and recapture – of the ship by the military.
This is the third edition of the booklet within a year and a half,
The focus of the booklet is concise
and it strongly emphasises that that
and practical throughout. Appendices
piracy is an evolving threat. In order
include charts, contact details, legal
to successfully combat piracy, it
definitions and further advice for fishing
is vital to keep up to date with
vessels. In addition to helpful checklists,
changing information, and to
and planning sections for both company
share new information as far as
and master with timetables detailing actions
possible. While it does not aim
to be taken leading up to a transit of high risk
to offer comprehensive advice
areas, it includes a piracy reporting form – one
on a complex and constantly
thing the compilers of the manual hope will
changing situation, BMP gives
never be used.
72
theBaltic September 2010 www.thebaltic.com
Book early and save up to £300
marseq’s 5th Official Piracy Update
COMBATING “ PIRACY WEEK
An extremely valuable conference …information sharing and highlighting common problems with credible solutions David Fletcher, Quality, Safety and Security Manager, CMA Ships UK Ltd
“
Masterclasses: 11th October 2010 • Site Visit: 14th October 2010 Conference: 12th – 13th October 2010 • The Strand Palace Hotel, London
Featuring real life scenarios from 4 pirate attacks including: Taipan Attacked 5/4/10 & Pirates Arrested
✔ Revised Piracy Intelligence Based On Latest Activity
St James Park Attacked 28/12/09 Released 13/5/10
✔ Up-to-the-minute Hijack Management Strategies
Asian Glory Attacked 1/1/10 Released 11/6/10
✔ New Cost Effective Preventative Measures
Latest Advice From Industry Experts Including:
Chris Holtby, Chairman, Working Group 1, Contact Group on Piracy off the Coast of Somalia
Gavin Simmonds, Head of International Policy, The Chamber of Shipping
Nigel Carden, Deputy Chairman, Thomas Miller P&I Ltd, Chairman, IGP&I
Roland F Hoeger, Managing Director, Komrowski
Paul Shields, Operations Director, Zodiac Maritime
Chairman: David Cotterell, Director, OCIMF
In-Depth Industry Advice To Ensure Your Security Procedures Are Water Tight Including: ■ Transfer of the latest anti-piracy skills and lessons learnt from previous hijackings ■ Critical updates from Government and Military on the growth of the piracy threat and debate long term solutions to protect commercial shipping ■ The VERY latest Best Management Practise and other industry guidelines revealed ■ Essential procedures to ensure your hijack management strategies are updated
Interactive Masterclasses: 11th October 2010 A)
Addressing The Latest Principles Of Piracy Prevention and Crisis Management Facilitated by Toby Stephens, Partner, Holman Fenwick Willan
B)
A Practical Guide to Effective Anti-Piracy Drills and Training for Your Crew. Facilitated by Jonathan Davies, Instructor, Maersk Training Centre
Site Visit: 14th October 2010 Maritime Security Centre Horn of Africa, EUNAVFOR
For more info: www.marseq.com Email: info@marseq.com Tel: +44 (0)20 3141 8700 Please quote priority booking code: BAL1
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Combating Piracy conferences provide a genuine forum for serious deliberations….much more than just networking. Capt. AK Bahl, Vice President Shipping - Mumbai Branch, British Marine Plc, U.K.
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C)
Boularibank Attacked & Escaped 4/09
Hear From International Maritime Experts Including: • Kapila Malawwethanthri, Fleet Superintendant, LNG and DPA, K-Line • Stuart Walker, Operator Coordinator, Exxonmobil • Toby Stephens, Partner, Holman Fenwick Willan • Andrew Latter, CSO Andrew Weir Shipping • Simon Church, Industry Liaison Officer, EUNAVFOR • Chris Chambers, US Navy, Director, Combined Maritime Forces • Stig Jarle Hansen, Norwegian Institute for Urban and Regional Research • Walter P Verstrepen, Partner, Elegis • Jonathan Davies, Instructor, Maersk Training Centre • Steve Paget, Director Above Water Battlespace, Dept. of National Defence - Canada • Rob Andrew, Executive Director, Salama Fikira Group • Bernard Vanheule, Senior (Legal) Officer, Royal Belgian Shipowners’ Association • Doug Stevenson, Director of the Centre for Seafarer’s Rights, Seamen’s Church Institute • Giles Noakes, Chief Maritime Security Officer, BIMCO • Thomas Nintemann, Head of Legal & Insurance Department, Intersee Group • Philip Pascoe, General Counsel, OCIMF • Stephen Askins, Partner, Ince & Co Official Partner:
Maritime security
Ship detained? It’s still on hire The UK High Court rules on off-hire clauses in the event of pirate attack
T
he UK High Court has confirmed a rul-
that this related to the owner’s failure to supply
ing made by an arbitration panel that a
enough crew or a refusal by a crew to perform
vessel chartered on an NYPE standard
their duties – and not to the negligent act or
charterparty remains on hire throughout
inadvertent performance of their duties, as the charterer had argued.
the time it is captured and held. The Saldanha, a 38,000 dwt Panamax bulk carrier, captured by
Nor did seizure by pirates amount to
pirates in the Gulf of Aden, remained on-hire for
“detention by average accident”. This would
the subsequent period of detention, according
have required some damage to the ship and
to a ruling in the English High Court in June.
an element of fortuity, neither of which was
According to a commentary on the deicision
present. Further, the words “any other cause”
from the UK Defence Club, this was the first
in the NYPE off-hire clause could only refer to
English Court judgment which specifically
some sort of deficiency or detention of the vessel or crew and not to some completely external
addressed the charterparty implications of piracy
influence.
and provided guidance on an “issue of great
of officers and/or crew or deficiency of stores,
relevance to owners and charterers alike”.
fire, breakdown or damages to hull, machinery
The judge concluded that if parties wished to
On 22 February 2009, the Saldanha, on a
or equipment, grounding, detention by average
treat seizure by pirates as an off-hire event under
standard New York Produce Exchange charter,
accidents to ship or cargo, dry-docking for the
a time charterparty, there should be specific
was en route from Indonesia to Kope, Slovenia
purpose of examination or painting bottom, or
wording to that effect. He suggested that if the
with a cargo of coal when seized by pirates. She
by any other cause preventing the full working
off-hire clause had been amended to refer to
was taken to a location close to Eyl, Somalia and
of the vessel, the payment of hire shall cease for
“any other cause whatsoever” then this might
released on 25 April 2009. The charterer did not
the time thereby lost.”
have made a difference but this was not certain.
pay hire during the detention, claiming the ship was off-hire since its seizure. The UK Defence Club supported its owner member in his claim against the charterer. A London arbitration tribunal found the ship had remained on-hire throughout its detention.
The charterer argued that the seizure by pirates amounted to a “default and/ or deficiency
The charterer has since been refused leave to appeal to the Court of Appeal.
of men” or “detention by average accident”. He
UK Defence Club manager Daniel Evans
further claimed that the words “any other cause”
commented: “The judgment is a very important
as found in the clause could include an external
one with wide ranging implications for the
event such as the actions of pirates.
shipping industry, as pirate attacks remain
The charterer had argued that the ship was
The charterer appealed the tribunal’s decision
prevalent. Unless there is clear wording to the
off-hire by referring to clause 15 of the NYPE
in the English High Court where Mr Justice
contrary, this ruling means that a ship chartered
charter:
Gross found that the appeal failed on all counts.
on unamended NYPE terms will remain on-hire
“… in the event of the loss of time from
So far as default or deficiency of men was
if seized by pirates. It is very much a landmark
default and/or deficiency of men, including strike
concerned, the judge agreed with the tribunal
74
theBaltic September 2010 www.thebaltic.com
ruling.”
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Corporate viewpoint Securewest International
If the worst happens W
hile the taking of hostages in times past might have been regarded as a legitimate strategy of diplomacy, modern atti-
tudes are somewhat different. The widely used technique of the Roman Empire to ensure the loyalty of conquered peoples is today seen as a violation of human rights, a war crime under the 1949 Geneva Convention and condemned by a United Nations resolution. Words such as kidnap, abduction and hostage are often used interchangeably in the media but a trawl through the dictionary reveals that each has a distinct definition. Abduction is to ‘take someone away by force or deception’ and kidnapping involves ‘abducting and holding someone captive, typically to obtain a ransom’. A hostage is ‘a person seized or held in order to induce others to comply with a demand or condition’. However, even such precise definitions cannot fully encompass the context in which
the hostage’s treatment, including some cases
reach. Whether intentional or not, Somali pirates
the variety of kidnap and hostage situations
of murder publicly broadcast. This required a
have achieved the same levels of intense media
occurs and how the authorities respond to
response to meet the challenge of ruthless,
spotlight as far bloodier examples of hostage
them. For example, in some cases the location
politically motivated captors making demands for
taking events of recent years.
where the hostages are kept (stronghold) may
withdrawal of coalition forces and the release of
be known and surrounded by responders, whilst
prisoners – concessions unlikely to be granted.
Negotiation
in others the hostage takers may use a secret
At the current time, it appears that Somali pirates
In kidnap and ransom situations some will often
‘safe-house’. In the maritime context, where a
who seize ships are motivated more by financial
question why you should negotiate with pirates
ship is taken, the stronghold is the vessel and
gain than political ideology and, seemingly,
or hostage takers. However, there are good
the location is known. However, where crew
payment of ransoms have secured safe release
reasons to communicate with them:
members are taken ashore, their location may
of the hostages.
• It is important for information gathering
not then be known with any certainty. Both
Whatever the style, in these times of 24-hour
scenarios have been seen in piracy attacks
media coverage, publicity has ensured that
in the Gulf of Aden and in the context of
such crimes reach a far wider audience than
Somalia, and the opportunities for military or law
could normally be expected by poorly organised
enforcement agents to storm the stronghold are
groups of individuals with limited resources.
• To manage expectations
extremely limited in most cases.
• It can provide an opportunity to influence the captors • It can buy time and identify motivation and demands
The kidnap of civilian mariners and the impact
• To reduce tensions
The motive behind the kidnapping and the
of vessel hijackings on the maritime industry
• To increase rationality
style of it will also present varying challenges for
have almost guaranteed such events worldwide
• To secure the safe release of hostages and
responders. In Iraq, in late 2004, increasingly
media coverage. Such exposure serves to
kidnap involved foreign hostages paraded in
promote the events, the cause and the hostage
But in contemplating such communication,
front of cameras by radical militants, leading
takers status reaching international audiences
it is important to understand how it influences
to worldwide publicity with shocking scenes of
that they would otherwise have been unlikely to
hostage taker behaviour. Somalian pirates tend
76
theBaltic September 2010 www.thebaltic.com
the return of vessel and cargo
Corporate viewpoint Securewest International to be represented in the media as if they were
a skilled negotiator is needed to establish a
Crisis management is about managing
a single, homogenous entity, but in reality there
platform for negotiation and to pursue dialogue
everything at the same time and the demands
is diversity among groups and the individuals
in order to achieve agreement.
of a crisis can overwhelm the capacity of the management team unless a structured
within them. Using this diversity can change the way hostages are handled, managed and looked
Crisis management
approach is taken to ensure tasks are prioritised
after by a negotiator using skills to capitalise on
A call received at 6pm on a Sunday evening,
and organised.
the opportunities to influence moderates within
informing you that your vessel has been
The crisis management team must be
pirate groups.
hijacked, is not the time to think about how to
flexible so that roles and responsibilities are
handle the crisis.
identified, practiced, and that key positions can
It is also vital to recognise and understand the differences in hostage taker motivations and
A well planned and correctly implemented
be occupied by any suitable leader. In this way,
when these may overlap. Where hostage takers
response will create a sound foundation for
the crisis management team can expand or
are focused on their instrumental demands,
resolution by:
contract to the size of the business or the scale
such as ransoms, release of prisoners etc, then
• Acting quickly to improve your chances of
of the problem.
negotiation with a rational discourse, leading
success throughout the crisis response
Key roles might include, for example,
parties to make logical cost/benefit choices,
• Allowing for effective decision making
media, insurance/lawyer liaison, personnel
may be effective. However, in situations where
• Creating effective communication: explain –
management, government liaison and internal communication.
emotional and relationship issues (such as
inform – reassure – engage
power, trust and ‘face’) play a crucial role, such
Any management plan should first identify
A chair of the crisis management team should
bargaining may not be possible. In such cases,
its objectives. While preservation o f life and
be identified to provide direction, leadership and
the hostage may have no instrumental value
the safe return of the hostages ought to be
to task members to carry out actions and report
at all – instead they are an expressive act by
the first priority, other objectives may include
back at a frequency decided by the chair. Such
the hostage taker to demonstrate their ability
business interruption considerations, internal
a structure allows for decision by consensus
to control others. Here, expressive negotiation,
communication, liaising with crew families, P&I/
when appropriate, and autocratic leadership
which assumes that the nature and quality of
other insurers, official authorities, cargo owners
when required.
relationships play a large role in resolving conflict,
and, of course, negotiators.
Terms of release
will be important. Relationship development and
Then a clear escalation plan must be
building trust are thus viewed as critical to
developed which calls in the crisis management
Negotiation will be more than just about the
resolving such crisis incidents.
team. This team can then make effective
money, although this will probably be the primary
decisions and establish communication with key
focus of the pirates. How the release of the crew
stakeholders and develop a media strategy.
and vessel will be achieved should be agreed in
It reality, motivation usually has both an instrumental and expressive dimension, and
theBaltic September 2010 www.thebaltic.com
77
Corporate viewpoint Securewest International some detail. In the aftermath of a ransom drop
wrongful act by you, expect another until they
maritime security planning, it is equally vital that
there may be chaos onboard, with a heady mix
are satisfied. Nor should you show aggression
owners and operators of vessels that may be
of excitement, money and armed people.
in return. This is likely to escalate to further acts
vulnerable also plan for the worst and develop
of violence.
a multi-faceted strategy with effective crisis
In one incident, following a successful
management plans and thorough staff and crew
ransom drop, a pod containing millions of dollars was taken back on board the hijacked ship.
Don’t be uncooperative and hostile
Shopkeepers and traders from the shore boarded
This is likely to be counterproductive to rapport
to settle accounts; money had to be counted;
and confidence building with your captors. So
fights broke out; and it was 16 hours before the
long as they have the upper hand, it is better to
money was divided among the pirates. The lead
cooperate so that conditions for you and other
pirate and cohorts then demanded to be taken
hostages are calm and safer than if there is
further along the shoreline and the crew had to
obvious animosity.
face a further 24 hours under kidnap conditions.
training.
Securewest
International
has
been
specialising in maritime security for over 22 years, incorporating areas of expertise including
Do build rapport and personalise hostages
the provision of onboard or in-port security
pirate had arranged a ‘reception committee’ to relieve other gang members of their money and
By building rapport and ensuring the captors
vessel hardening consultancy and anti-piracy
a shootout ensued, during which he was killed
appreciate the hostages as fellow human beings,
training, crisis management training and K&R,
in the gunfight.
they are more likely to treat the crew well and
vessel tracking and SSAS monitoring through
When the final destination was reached, the lead
Terms and conditions, then, should form part
reduce the likelihood of ill treatment.
of the negotiation to ensure the vessel and crew
officers, escort vessels for high risk transits,
a 24/7/365 Maritime Assistance Centre, ISPS code related regulatory compliance programmes
Don’t drop your self-discipline
and audits, and DNV/MARAD/MCA/TRANSEC
It is also key that the crew understands
Remember your preparation and that people are
approved training.
the planned response, as the alternative might
working for your release. Keep up your morale
be that the crew could work against you and
and that of others by supporting each other
in, what they perceive to be, their own best
where possible.
are released and removed from further danger.
interests – for example, by resisting captors and members will need to know in advance the
Do expect feelings of frustration, anger, guilt etc afterwards
practical, positive steps they can take.
Post-traumatic stress is a normal response to an
increasing tension or initiating violence. Crew
It is important that the crew’s expectations are managed effectively and that they understand the situation. For instance, how long could the
abnormal situation.
For more information visit:
While the
www.securewest.com
belief that ‘prevention is better
than cure’ should still form the bedrock of any
situation take to resolve, how should the crew behave, and what will the company do for crew members’ families? Effective crew awareness briefings are thus essential and can be achieved in minimal time, with inputs expanding on a few key risk areas. The following seven points for crew and company could be used as a starting point to develop an understanding of how they can contribute to a successful, peaceful conclusion to a hostage event:
Do clearly communicate all intentions Sudden moves, gestures or actions can unnerve captors, who may be nervous and react badly. Ask their permission or make it clear what you’re about to do until tensions are reduced.
Don’t invite deadlines Why impose high noon on your already pressured situation. If a demand is made, you should not ask ‘by when?’
Do show pain if assaulted – don’t escalate If assaulted by your captor, make sure they believe it had the desired effect. If they think the first punch didn’t punish you for some perceived
78
theBaltic September 2010 www.thebaltic.com
@
For more information on these companies and to view this publication online using the latest Page-Turning technology, visit:
www.thebaltic.com AALBORG INDUSTRIES
J M BAXI
ANDREW WEIR SHIPPING
JEPPESEN
AXS MARINE SA
LCH CLEARNET
BERGEN RISK SOLUTIONS
LIBERTINE SECURITY SOLUTIONS
BI NORWEGIAN
NAVITA
BUPA INTERNATIONAL
NEVSKIY SHIPBUILDING & SHIPREPAIR PLANT
CHICAGO MERCANTILE EXCHANGE
NIS-NOR
CONCATENO
NOS CLEARING
COPENHAGEN BUSINESS SCHOOL
PAREKH MARINE AGENCY
CURACAO TOWAGE
PORT AUTHORITY ZEEBRUGGE
DP WORLD
RIGHTSHIP UK
DREAMTECH
SATAKUNTA UNIVERSITY OF APPLIED SCIENCES
FAIRMOUNT MARINE
SECUREWEST
GFI GROUP
SHIPNET AS
HYDE MARINE
SIMPSON SPENCE & YOUNG
INTELSAT
SOUTH OF ENGLAND P&I
INTERNATIONAL REGISTRIES INC
WILHELMSEN SHIP SERVICES
Corporate viewpoint Bergen Risk
Reducing risk Combating piracy
P
iracy has been top of many a ship-
with no need for a high speed internet link.
number of leading shipping companies, including
owners’ agenda in recent years and
This combination of data delivers a cutting-
Maersk and Heerema. Its contribution to safe
is even more pressing now that the
edge decision making tool, giving users the
and secure navigation was recognised in June
reach of the pirates’ activity is spread-
ability to identify, assess, display and minimise
when the system won the first ever Safety at Sea
ing deeper into the Indian Ocean. Perfecting the
the risk of piracy and other serious maritime
International Security Award. This award was
use of mother ships has allowed these maritime
crime. Analysing the pattern of recent attacks
created by Safety at Sea International magazine
criminals to operate much farther from the
alongside real-time weather information allows
to single out a product that demonstrates
coast than in recent years and is now causing
ships’ masters and shore-side operational teams
an innovative and original development with
greater concern for vessel owners and masters.
to assess the likelihood of an imminent attack.
potential to improve security on board and on
Recognising that pirates tend to operate from
It also gives them the opportunity to route their
shore. The application has also been shortlisted
relatively small skiffs that are limited by sea-state,
vessel through waters that are less hostile.
for the ONS 2010 innovation award.
Bergen Risk Solutions was quick to make the
The new system will show areas and corridors
link between weather forecasting and potential
where the current and forecasted weather
Understanding the threat
pirate activity. The company also understood the
conditions would prevent the use of the small
The unremitting globalisation of business brings
benefits of marrying this data with information on
skiffs favoured by pirates, and routing vessels
with it a range of new uncertainties and risks,
recent pirate attacks and up-to-date intelligence.
through these areas could significantly reduce
and understanding these factors is critical to
Working with world renowned partner, Jeppesen
the likelihood of an attack.
the success of any large commercial concern.
(a subsidiary of Boeing), Bergen Risk Solutions
The World Piracy Update is fed every two
A new operating environment demands clarity
launched their World Piracy Update system early
hours with data from a variety of recognised
and understanding so that risks to people,
this year – a comprehensive and unique piracy
sources, including the International Maritime
operations and financial performance can
intelligence platform.
Bureau, the US Office of Naval Intelligence,
be contained. Bergen Risk Solutions was
The World Piracy Update integrates with
EU NAVFOR Op Atalanta, UK Maritime Trade
established in 2007 and is an expert in assessing
Jeppesen’s digital sea chart platform (C-Map)
Operations (Dubai), plus 96,000 global media
risk, particularly in the maritime sector. Some
to overlay piracy information with detailed
sources that are scanned constantly. All data is
of the world’s leading oil and gas corporations
navigational and weather data. Attacks on
verified and cross-checked before it is uploaded
feature on its impressive client list, alongside
shipping are plotted on the C-Map platform
into the system. Since its launch, the World
major insurance companies, shipoperators and
and communicated to users ashore and afloat,
Piracy Update has been commissioned by a
construction firms. Its employees are all experts
Weather and piracy per 26 July 2010 and last four weeks. The marked area shows wave height of more than 1.5 meters in height. This is a typical example of where pirates attack and where they cannot. Pirates do not attack when wave height exceeds 1.5 meters. (Bergen Risk Solutions/Jeppesen)
80
theBaltic September 2010 www.thebaltic.com
Corporate viewpoint Bergen Risk incident is plotted, giving an indispensible visual overview of the security situation. Complementing this information is further intelligence on the likely threat facing operators of vessels and offshore installations along Nigeria’s coast. Ships and oil-rigs are particularly vulnerable to attack by pirates and politically motivated militants, and Bergen Risk Solution’s quarterly Maritime Security Review and Briefing details these risks to give a unique insight into the current situation. These tools are invaluable to any company that has a professional interest Piracy incidents past 28 days, as of 12 July 1200 UTC and Weather forecast for 13 July,
in Nigeria’s oil and are currently being used by
1200 UTC with wave alarm set at 1.5 meters (red area)
many companies operating in that area, including ExxonMobil,
the
Norwegian
Shipowners’
in intelligence and risk management, and have
A company must also be aware of the
extensive experience in country risk analysis and
likelihood that it might be exposed to deliberate
practical project implementation.
acts of harm that could result in damage to its
Obtaining high quality information and
Core to Bergen Risk Solutions is the delivery
property or people. These security risks can
analysis is often the first step to understanding
of its consultancy services that analyse country,
include riots, violent conflict, acts of terrorism,
and minimising the potential threat to a company
political and security risks to provide sound
kidnapping or crime and must all be thoroughly
operating or intending to operate in a country
advice on how to minimise potential threats
analysed.
or along a coastline where risks to people,
Association and Norwegian insurance company DNK that provides war risk cover.
to a business. With specific expertise in Africa
Understanding the exposure to risk is often
property and investments are high. Bergen Risk
and the Middle East, the company currently
the most important step to minimising its impact
Solutions is an expert in analysing these risks
provides comprehensive intelligence and advice
on a business. Bergen Risk Solutions can
– particularly in Africa, the Middle East and the
to a large number of blue-chip clients, including
provide that unique intelligence picture and
Indian Ocean – and advising and implementing
ExxonMobil, Petroleum Geo-Services, Solstad
advise a business on how best to reduce the
practical solutions. All commercial concerns
Offshore and Nigeria’s largest oil company,
potential threats with adequate prevention and
face risks, but those that succeed in business
Oando. Over the years, the company has
response strategies.
are often the ones that take steps to understand and minimise the risks that face their operations.
created an unrivalled intelligence network comprising its own people augmented with input
Nigeria – on land and offshore
from politicians, journalists, senior oil company
Another specific area of expertise offered by
representatives and even leaders of the local
Bergen Risk Solutions is intelligence gathering
guerrilla movement. Together, these sources
in the Niger Delta. This important region has
create an unrivalled picture of the local threat
attracted militant and criminal gangs that are
and risk situation.
Bergen Risk Solutions can help you do that.
challenging foreign oil companies over pollution,
For more information, please contact
When asked to assess a particular situation
use of resources, revenue distribution and
Arild Nodland
for a client, Bergen Risk Solutions will initially
jobs. Lawlessness and crime is threatening
Chief Executive Officer
undertake a comprehensive period of desk
corporate operations and Bergen Risk Solutions
Bergen Risk Solutions AS (Ltd)
research covering 32 key areas, ranging from
is able to provide up-to-date intelligence on the
PO Box 48
the local crime situation to the relevant logistics
current situation. They can forecast developing
Fantoft
and transport networks. They will evaluate the
trends and assist companies reduce their risk.
NO-5899 Bergen
historical and current situation and provide
Subscribing to the Niger Delta pack will help
Norway
valuable forecasts for the future. If required, more
companies understand and forecast security
Tel: +47 5557 4260 (office)
thorough research and analysis will be conducted
developments in that region. The reports are
Mobile: +47 4823 3022
in the region of interest, including interviewing
equipped with facts, analysis, charts and
E-mail: arildn@bergenrisksolutions.com
local sources and gathering up-to-the-minute
electronic briefing maps, and each serious
Website: www.bergenrisksolutions.com
intelligence. This period of intense work results in the production of a thorough report, detailing the threats to investments and operations specific to a particular region or country. It also analyses risks to business attributable to the political, social, religious and cultural environment. This type of political risk, often resulting from the action or inaction of government, can materially affect a company’s profitability and impact significantly on its business aspirations. National political, economic, religious or ethnic tensions must all be fully understood if a business is to succeed in a new region.
theBaltic September 2010 www.thebaltic.com
81
The Norwegian International Ship Register - NIS The Complete Maritime Administration www.nis-nor.no
SERVICE & QUALITY ARE WITHIN YOUR REACH
A significant and growing number of Marshall Islands companies are publicly traded on exchanges in London, New York and Singapore INTERNATIONAL REGISTRIES (U.K.) LIMITED The Marshall Islands Maritime and Corporate Administrators TEL: +44 20 7638 4748 | FAX: +44 20 7382 7820 LONDON@REGISTER-IRI.COM
For a complete list of offices please visit: WWW.REGISTER-IRI.COM
Registration
Inspection gets tougher What will the new Paris MoU Inspection scheme mean for owners?
I
nnovations in safety and security regimes and
departure, as it is based on a risk based
will be extended to all ship types and apply to
tightened inspection regimes have led to a con-
targeting mechanism, which will reward quality
flags on the ‘Black List’ and ‘Grey List’. This
siderable fall in the number of ships detained
shipping with a smaller inspection burden and
should have an effect on a large number of
under the Paris MoU, said Richard Schiferli,
concentrate on high-risk ships, which will be
general cargo ships that manage to continue
general secretary of the organisation, speaking
subject to more in-depth and more frequent
trading in the area after multiple detentions,
at the MoU’s commitee meeting in Dublin earlier
inspections.
particularly since detentions in up to the past
this year. “Since 2007 the detention percentage
The NIR makes use of company performance
36 months (from 17 June 2009) are counted.
has been decreasing gradually to an all-time low
and the Voluntary IMO Member State Audit
These ships will no longer be welcome in Paris
of 4.4%. The efforts of the Paris MoU are paying
Scheme to identify the risk profile of ships coming
MoU ports after 2011 and will be ‘banned’ for
off, although there is no room for complacency,”
in to port, together with the performance of the
a minimum period. While low-risk ships will be
he said.
flag state and the recognised organisation. Ships
rewarded with a 24 to 36 month inspection
At the same time, there is an urgent need to
will be divided into High, Standard and Low Risk.
interval, high-risk ships will be subject to a more
focus attention on those parties in the industry,
For the first time company performance will
rigorous inspection regime, with an expanded
which show little or no involvement to improve
contribute to the risk profile. Banning measures
inspection every six months.
standards. A handful of flags and recognised
The past inspection record of the ship as
organisations have scored low performance over
well as the ship’s age and ship type will influence
the past years and apparently make no efforts to
the targeting. Full implementation of the system will rely on collection of port call information.
improve. While the overall detention rate was just 4.4%, detention of ships registered
The NIR will be supported by a new
in black-listed countries was running
information system ‘THETIS’, which will
at 14.7%, while detention of ships
replace the current SIReNaC system
on the Grey List was 7.21%.
located in St. Malo, France.
However, the Paris MoU hopes
Mr Hogan, the Paris MoU
that the adoption of a new
chairman, said: “By adopting the
inspection regime will begin
New Inspection Regime we have
to tackle the problem of ships
taken a major step forward in
– and flag state regimes –
enhancing the safety of shipping
that regularly fail to pass
in our region and rewarding
inspection.
quality shipoperators and shipowners for their commitment to and investment in safety.”
New inspection regime The New Inspection Regime, which the Paris MoU is describing as a ‘ground-breaking development in port state control’, will enter into force from 1 January 2011, replacing the existing port state control system. The NIR is a significant
Inspection will get tougher
theBaltic September 2010 www.thebaltic.com
83
Registration
UK tonnage tax window closes Shipowners paying conventional corporation tax must move quickly to seize potential opportunity to elect into the tonnage tax
S
ue Bill, a tax partner with Moore
for expenditure incurred on or after 1 January
it should consider providing a new ‘window of
Stephens, says: “There are a number
2011. This means that writing-down allowances
opportunity’ in which to make a tonnage tax
of forthcoming changes to the capital
on most ships will be reduced from 20% to 8%.”
election. But the UK Treasury has made it clear
allowances regime which will particu-
Currently, a group (or a stand-alone company)
to the Chamber of Shipping that, under current
larly affect shipowning companies that are out-
which starts activities that qualify for UK tonnage
conditions, a cogent business case for such an
side tonnage tax. The rate of writing-down allow-
tax has a period of one year in which to elect into
arrangement would have to be made.
ances on plant and machinery will be reduced
tonnage tax. This is an irrevocable election that
Sue Bill concludes: “In deciding whether
from 20% to 18% from 1 April 2012. Writing-
applies for a 10-year period. After the one-year
or not to make an election, it is important to
down allowances on long-life assets will also be
period has expired, no election can be made.
remember that it is for a 10-year period, and that
reduced from 10% to 8%. More importantly, the
The UK government has in the past accepted the
new windows of opportunity in which to elect are
exemption whereby certain ships are excluded
principle that, where there are significant changes
given only rarely, and may not be given in future.”
from being long-life assets is to be withdrawn
to corporation tax or to the tonnage tax regime,
Marshall Islands sees newbuild boom
T
he boom in newbuild deliveries, particularly in the dry bulk sector,
70%. The average age of the Marshall Islands fleet is 10 years and with
is driving a change in the age profile in the Marshall Islands fleet.
respect to the Greek tonnage entering the Registry in 2010, 77% of this
“A recent trend in the Registry is the increase of newbuild ton-
tonnage represents newbuilds,” he continued.
nage,” said Theo Xenakoudis, managing director of IRI’s
Piraeus office. “In 2008, for example, 50% of the tonnage entering the
fleet was newbuild tonnage whereas in 2009 that figure had gone up to
For 2010, it is expected that the Marshall Islands Registry will surpass 60 million gross tons with an anticipated 5.5 million gross tons entering the Registry from Greece, Turkey, Cyprus, Italy and Monaco.
LISCR appoints new general manager for London
T
&
quality manager, based in Genoa, Italy. Prior to
Spremulli says: “I am delighted to be
the
that he was with Lloyd’s Register for 18 years as
joining the Liberian Registry, which continues
US-based manager of the Liberian
its marine training manager in London following
to enjoy remarkable growth while maintaining
Registry, has appointed Jonathan
a number of roles, including a significant period
its independently acknowledged reputation for
Spremulli as general manager of its dedicat-
in Asia surveying ships during construction. He
the highest standards of safety worldwide. It
ed office in London, in succession to Stuart
is a chartered engineer with extensive seagoing
is a quality organisation, which does things
Williams, with effect from 2 August 2010.
experience as an officer with, among others,
the right way.”
he
Liberian
Corporate
International Registry
Ship
(LISCR),
Jonathan Spremulli joins LISCR from leading
P&O Lines and Mobil Shipping.
classification society RINA, where he was group
84
theBaltic September 2010 www.thebaltic.com
Cargo focus Containers
Clear waters ahead? Has container shipping really turned the corner?
R
umes and equipment shortages may
Too soon for capacity expansion?
suggest a return to the good times for
Despite such positive sentiments, revenue
container shipping. However, some
generation remains a concern for container
experienced analysts are urging that the under-
shipping lines who are believed to have
standable optimism that now exists be tempered
collectively lost more than $15 billion in 2009.
by caution, given prevailing economic uncertain-
Maersk Line led the way with a $.8 billion loss,
ties.
while Cosco also went into the red to the tune
ising freight rates, surging trade vol-
For much of the past 18 months, container
of over US$1 billion in the year. “Lines found
shipping line executives have not had much to
themselves on the brink of failure last year, and
cheer about. The global economic downturn,
it was a sobering experience,” says Y.M. Kim,
coupled with a massive surge of new tonnage
president and chief executive officer of Hanjin
onto the market, pushed traffic levels, freight
Shipping. “All carriers have excess capacity and
rates and profitability down to the point where
new vessels on order, and that’s a net positive
survival was the only real objective.
as global trade improves, but after last year no
In recent months, though, there appears to have been a marked sea change in fortunes
carrier is going back to operating vessels underAsian exports are increasing
and the same executives have started smiling
utilised and at non-compensatory rates. Every sailing will have to be economically justifiable.”
again – well almost! The gloom and doom of
however, still well below comparable volumes for
2009 has been replaced by a plethora of general
the same period in 2008).
Many carriers have more recently responded to the upturn in volume on the transpacific
rate increases and peak season surcharges,
There is strong evidence that the increase
by reactivating service strings that had been
while serious container equipment shortages
has continued since. Internal reporting by TSA
suspended at the height of the recession. AXS
have become apparent in some trade lanes.
carriers shows a 24.1% year-on-year increase
Alphaliner has reported that additional vessel
Furthermore, container vessel charter rates have
in traffic during the month of May to the US
capacity of over 37,000 TEU returned to the
also been rallying strongly after a lengthy period
West Coast and a 30.8% increase in all-water
transpacific market in the months of April and
in the doldrums.
shipments to the East and Gulf Coasts via the
May and more service announcements have
Panama Canal. In June, figures from the AXS
been made since, suggesting further capacity
Alphaliner consultancy suggests volumes were
expansion through to the end of the third quarter
up even more, at 32% higher than in June 2009.
of this year.
Transpacific boosts volumes The main beacon of hope for the beleaguered
Economic recovery and greater consumer
In response to market demand, three of the
container lines is the transpacific trade,
confidence in the US seems to be behind the
world’s leading carriers, MSC, Maersk and CMA
where statistics so far this year have shown a
change. As Aik Meng, president of APL’s liner
CGM are joining forces to reintroduce a service
significant upturn in traffic that appears to have
division points out: “Now it appears that the
connecting five key ports in Asia – Kaohsiung,
caught many carriers off guard. The Transpacific
worst is behind us. The pipeline of Asian exports
Hong Kong, Xiamen, Shanghai, and Qingdao –
Stabilisation Agreement (TSA) – a consultative
to the US is filling rapidly and consumers are
directly with Long Beach. MSC Mediterranean
forum of leading carriers – reports that over
more optimistic over job security and household
Shipping Company will provide three vessels,
the first quarter of this year the total number of
incomes going forward.” Chinese exports to
Maersk two vessels and CMA CGM one vessel.
containers carried on Asia-US routes totalled
the US in particular have picked up strongly as
more than 2.5 million TEU, a 13% increase
a result.
This service made its first sailings in midJuly and Bill Woodhour, senior vice president, Maersk Line North America says: “This decision
compared with first quarter of 2009. (This is,
theBaltic September 2010 www.thebaltic.com
85
Cargo focus Containers was based on customer feedback surrounding
by eight vessels and will connect Asia and the
Americas to Asia. Even so, Maersk expects the
expected market demand with the approach of
Middle East with ports in Egypt, Turkey, and Italy
equipment shortage to last through the third
peak season.”
on a weekly basis.
quarter of this year and this could well cause
Evergreen Line and China Shipping have also
Overall, it is believed that six weekly loops
introduced new transpacific services linking Los
have been brought back into service on the
As well as renewed investment in equipment,
Angeles and Oakland with Qingdao, Shanghai
Europe-Asia trade since March. This is on top of
there are signs also that container lines are to
and Ningbo ports, in response to the booming
the 23 that were already in existence.
start ordering container vessels once again.
considerable disruption to supply chains.
Asia-US market. Furthermore, the New World
In July, for example, Evergreen announced
Alliance carriers, Hyundai, MOL and APL, have
that it has placed orders with Samsung Heavy
reinstated their weekly Pacific Southeast Service
Equipment availability tight
Industries for 10 8,000 TEU capacity container
that was dropped in late 2008. This connects
While more container shipping capacity is being
vessels. The first of these will enter service in
ports in Taiwan, China, Hong Kong and South
brought back into use, equipment availability
2012.
Korea with Long Beach and Oakland.
is a tough challenge for all carriers as box
Service changes are also starting to be made
manufacturing activity contracted sharply in
on the Asia-Europe trade, as volumes on this
2009. The result is that lines have been caught
A time for caution
sector start to pick up as well. According to the
short of equipment and it will take time to
In general though, carriers are still digesting the
European Liner Affairs Association, containerised
ramp production back up, as some factories
significant number of container vessels that are
exports from Europe to Asia were up by 23% in
have been mothballed due to low order rates.
on order, before returning to yards with fresh
the first quarter of 2010, while imports were
Worldwide container manufacturing averaged
contracts. Most will reactivate vessels in lay-up
up 21%. Although eastbound trade weakened
some three million TEU annually between 2004
before ordering again.
in the second quarter, westbound shipments
and 2008. However, in 2009 it is estimated that
have continued to surge ahead, rising by 27 and
only 350,000 units were delivered.
Indeed, figures from Lloyds MIU show that as of June this year there were still some 370
21% respectively in April and May. In response
“We already see a very tight equipment
container vessels laid up, representing over
to such positive trends CMA CGM and Maersk
situation and we expect an even more
5% of the world fleet. However, the number of
launched a new Asia-Europe service in June,
pronounced and serious shortage of containers
vessels in lay-up is falling fast, partly as carriers
deploying a total of 10 vessels, while Evergreen
in the coming months as we enter the peak
seek to use this idle capacity to move equipment
is joining forces with China Shipping and CMA
season,” says Lars Reno Jakobsen, Maersk Line
from areas of surplus to areas of demand, but
CGM to introduce a new Europe-Asia service
board member. In response to the equipment
also as the trend to slow-steaming effectively
that made its first sailings in June.
shortage, Maersk Line has ordered new
soaks up existing deployed capacity.
A service is also to be launched by a new
containers, as have other lines, and entered into
While there is no doubt that a recovery is
alliance, comprising Yang Ming, Hanjin, Hyundai
lease deals. Furthermore, the carrier says it has
underway in the container shipping market,
Merchant Marine and UASC, between Asia and
also reactivated laid-up container ships to assist
there are those who are wisely cautioning lines
the eastern Mediterranean. This will be operated
in repositioning containers, in particular from the
against getting too carried away. Economic problems still have to be solved in a number of countries, and the possibility of a further recessionary dip as public sector spending cuts take hold cannot be ruled out. According to John Fossey, editor of the much respected journal Containerisation International: “Whatever measure is used, the omens for longterm and sustainable growth in the container shipping sector do not look good.” He believes that there is a real chance of a strong dip taking place in trade volumes later this year. “The industry is far from safe,” he warns, and suggests that carriers “should make hay while the sun shines” as it may not last for long. As well as containership operators, owners are also benefitting from the upturn, with the Braemar Seascope Box index, which tracks charter rates, reaching a high of 57.28 in June, after almost six months of steady gains. The figure is the highest since December 2008, but a long way short of the peak of over 160 seen in March 2008. Charter rates also remain vulnerable to possible economic downturn, and it cannot be taken for granted that rates will continue to rise through the rest of the year and into 2011.
The number of vessels in lay-up is falling
86
theBaltic September 2010 www.thebaltic.com
Geographical focus Upper Gulf
New horizons Upper Gulf ports keep adding to capacity, and new routes and new operators are boosting growth
W
hile container traffic moving into
services. However, to accommodate the further
contracts relates to Berth 8 in the South Port
the UAE may have been hit
increase in traffic that is anticipated over the
area of Umm Qasr, where the company expects
hard by Dubai’s well-publicised
next few years, significant investment in port
to start operations towards the end of July. Two
financial problems, shipments to
facilities will have to take place within the Upper
container handling mobile harbour cranes are
countries in the Upper Gulf, including Kuwait,
Gulf region itself, and much of this will be geared
being shipped to Berth 8 and these should arrive
Bahrain, Iraq, Qatar and Saudi Arabia, are hold-
towards the needs of direct, and larger, mother
by the end of August.
ing up relatively well. These economies have
ship calls.
Berth 8 will mainly be used for handling
been generally less affected by the global eco-
container traffic. However, other general cargo
nomic downturn than the UAE, with the result
types will also be loaded and unloaded here,
that import levels have remained relatively high.
Throughput booms in Iraq
Gulftainer expects.
As an illustration of the trend, Sharjah’s
Iraq is one of the fastest growing economies
Keith Nuttall, Gulftainer commercial manager,
two container terminals recorded an increase
in this part of the Middle East, and one of the
says: “The arrival of the new cranes will be a
of almost 24% in the first five months of this
ports in most urgent need of an upgrade is the
major boost for Umm Qasr port, which is the
year compared with January-May 2009. With
country’s main shipping gateway, Umm Qasr.
main port for Iraqi cargoes. There is a shortage
local import and export traffic still suffering,
The port has experienced a difficult period after
of reliable cranes in the port to handle feeder
much of this increase was due to strong feeder
the ending of the war, but now stands on the
services moving to and from the UAE and this
movements to and from the Upper Gulf, which
brink of a new era.
investment will help shippers supply the Iraqi
are being transhipped in Sharjah.
Earlier this year the Iraq Ports Authority
market in a more timely manner.”
A significant amount of the Upper Gulf’s
awarded two key contracts to Sharjah-based
Gulftainer also has a concession to operate
container traffic is handled via the key UAE hubs
Gulftainer, to manage and operate container and
two berths, 10 and 11, which are located
of Dubai and Khorfakkan, rather than on direct
general cargo facilities in the port. One of these
between the South and North Port, and which
Capacity and thoroughput are picking up fast in the Upper Gulf region
theBaltic September 2010 www.thebaltic.com
87
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Geographical focus Upper Gulf are currently about 80% finished. Gulftainer will
Port shift in Bahrain
Bandar Abbas is in need of expansion and
complete the construction of this dedicated
One of the biggest container terminal investments
upgrading to cope with forecast traffic and
container facility, which will be called the Iraq
in the region was completed last year, with the
plans to achieve this were dealt a blow earlier
Container Terminal, and which is expected to be
opening of the new Khalifa Bin Salman port in
this year when Hamburg Port Consulting (HPC)
operational around mid-2011. The terminal will
Bahrain. As well as meeting the needs of the
pulled out of a contract to help renovate the
be equipped with four ship-to-shore container
local market, the new deep-water port has been
port, seemingly as a result of Israeli government
gantry cranes which Gulftainer has ordered, as
designed to operate as a regional transhipment
pressure. The first phase of a second container
well as landside support equipment.
and transit centre, serving countries in the
terminal at the Shahid Rajaee port complex in
Upper Gulf.
Bandar Abbas is due to be operational later
Gulftainer rates prospects in Iraq highly, as the economy is now developing fast and the
Khalifa Bin Salman, which is also known
in 2010, boosting the port’s capacity to 3.5
oil majors in particular are looking to position
as Bahrain Gateway, comprises 1,200 metres
million TEU. However, HPC’s withdrawl means
equipment into the country to help meet their
of container berth, equipped with four post
a planned second phase could be delayed
oil production targets. Keith Nuttall says: “We
panamax gantry cranes, and 600 metres of
while the terminal operator, Tidewater, finds
see a lot of demand from the oil companies for
conventional and ro-ro berths, all with a 15
a new partner.
containerised cargo shipments to Iraq and much
metre draft alongside. As a result, the terminal
of this will be routed via Umm Qasr. It is very
can handle container vessels up to 8,000
important for Iraq generally and the oil industry
TEU capacity, compared with the 3000 TEU
in particular that Umm Qasr starts moving ahead
limit at Mina Salman, Bahrain’s former port,
Qatar Navigation to enter new markets
and we are pleased that we can play a part in
which is now being closed for commercial
The continued dynamism of the Upper Gulf
that process.”
cargo business.
markets is creating opportunities for companies
Currently, Bahrain Gateway can handle
moving containers and other cargoes to and
around 1 million TEU a year. Throughput in 2009
from the UAE hubs. One of the companies that
Work starts at Doha
was around 250,000 TEU, so there is plenty of
is gearing up to take advantage of increased
Qatar is another still-booming economy, which
spare capacity available. Future investments will
movements on intra-gulf routes is Qatar
is currently served through relatively small scale
be made only in line with projected volumes, and
Navigation. Last year the company doubled
container facilities in Doha and Mesaieed. Work
so further development of the port is considered
the capacity of its container feeder services,
on Qatar’s New Doha Port is expected to start
unlikely for the next few years at least.
by taking delivery of three new 1,015 TEU
this August, however, and should be completed
APM Terminals’ aim is to attract main
capacity container vessels, with a fourth ship
by 2015. The first phase will include new deep-
line vessel calls to Bahrain, and then feed
entering service in mid-2010. As a result,
water container handling facilities designed to
neighbouring markets. There has been some
Qatar Navigation is now able to offer daily calls
handle up to 2 million TEU a year. In the
sign that it is starting to achieve its goal, as APL
between Qatar’s Doha and Mesaieed port and
meantime, Mesaieed port is being upgraded and
has begun calling Bahrain directly with its West
the regional transhipment hubs of Jebel Ali
its new CT7 container and breakbulk terminal is
Asia Express (WAX) service, which provides a
and Khorfakkan.
due to start operations later this year.
direct connection between Bahrain and Asia.
This significant build-up of capacity has
Substantial investment is also being made
Following this boost, full container volumes
been made by Qatar Navigation to meet an
to expand Qatar’s Ras Laffan port, which mainly
are reported to be up 13% compared with 2009,
anticipated growth in demand for containerised
handles LNG and liquid bulk cargoes. A sixth
and the forecast container throughput for 2010
petrochemical and aluminium exports from
LNG berth was recently commissioned and a
is around 380,000 TEU.
Qatar, as well as continuing strong demand
second phase of the port expansion, involving
By contrast, the port’s general cargo volumes
for imports. The company has recently signed
further investment of over US$220 million, is
have dropped substantially since 2009. This
a contract with Qatalum, one of the biggest
currently in progress with the construction of
is a result of the fact that building materials,
producers of aluminium in the world, to carry
various berths for liquid products, container
predominantly cement and clinker, which were
exports in containers from Mesaieed to the UAE
vessels and harbour tugs. Work is also well
being imported in large volumes through to the
for transhipment, and this will provide a key base
underway on a new ship repair and drydocking
first quarter of 2009, have dropped back to
cargo for its expanded feeder network.
facility on a 43 hectare site at Ras Laffan that
more sustainable volumes. Imports of cars have,
Qatar Navigation is in the process of merging
will be partly operational later this year, as a joint
however, recovered since last year, and APM
with Qatar Shipping, which owns and operates
venture between Keppel Offshore & Marine and
Terminals is projecting a full year throughput
a fleet of five crude and chemical/product
Qatar Gas Transport (Nakilat).
of some 36,000 units for 2010, which is
tankers, of between 37,000 and 106,000 dwt,
approximately 20% more than 2009 levels.
and has a 50% stake in four 82,000 cu m
Container traffic moving through Saudi Arabia’s Gulf Coast port is clearly on the rise
LPG carriers delivered in 2008-9. The Qatar
this year, with Dammam handling 418,000 TEU
Shipping brand will soon return to the bulk
in the first four months of 2010, compared to
Expansion needed in Iran
shipping market, after a gap of several years,
382,000 TEU in the same months of 2009. The
The Iranian port of Bandar Abbas is another
transporting rock aggregate from Fujairah
president of the Saudi Ports Authority, Khaled
that has performed well in terms of its container
to Qatar. The COA signed by the company
Bubshait, has recently confirmed that a second
traffic in recent times. Last year the port handled
envisages shipping up to 35 million tonnes over
container terminal is to be built in Dammam, with
around 2.2 million TEU, up 11% compared
a five-year period, and will probably be fulfilled by
an annual capacity of 2 million TEU. This will be
to 2008. Moreover, in the first half of this
chartered-in bulk carriers.
constructed in stages, with the first comprising
year volumes amounted to 1.3 million TEU,
800 metres of quay and six ship-to-shore gantry
suggesting a further double digit rate of increase
cranes.
is on the cards.
theBaltic September 2010 www.thebaltic.com
89
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45 million tonnes of cargo throughput growing containerhub : 2,5 million TEU 1,6 million new cars 20 daily shortsea links : 12 million tons of roro excellent distribution opportunities
Port Authority Zeebrugge / MBZ nv, Isabellalaan 1, 8380 Zeebrugge, Belgium Tel. +/32/50/54 32 11 - Fax +/32/50/54 32 24 - www.portofzeebrugge.be mbz@zeebruggeport.be
Port focus Germany
Ports face difficult future Throughput is gradually recovering, but the slowdown could still have long-term effects
A
fter a difficult 2009, volumes in
Results for the first half of 2010 show an
the first half, an increase of 4.3% over the
Hamburg are showing signs of a
8% increase in total throughput over the same
same period in 2009. Total throughput for
strong recovery in 2010. Claudia
period in 2009, to a total of 58.6 million tonnes.
the year is expected to be 7.7 million TEU,
Roller, head of the port marketing
Imports showed particularly strong growth,
an increase of 9%.
agency, said that total throughput for the year is
up by 12.3%, while export was up by just
expected to be 119 million tonnes, an increase
2.9% over the previous year. Bulk throughput
important
of 8% over last year, provided that the world
was up by 14.8% to 19.7 million tonnes. The
throughput from the region at 4.2 million TEU in
economy continues its current positive develop-
increase in iron ore throughput was particularly
2009, of which 2.3 million TEU came from China.
ment. Results for the first half of the year have
striking, with a 243% increase over last year; 4.7
Throughput from the region for the first half of
shown an unexpectedly rapid recovery from
million tonnes against 1.4 million tonnes in the
the year showed 6.9% growth over the same
2009, she said. As a result, the port will be in a
first half of 2009.
period in 2009. Hamburg retains its position
Asia remains one of Hamburg’s most trade
partners,
with
container
position to continue investment in modernising
Container traffic, which was also hard hit
as a major transhipment port for Asian goods
and expanding the terminals, which had begun
during the 2009 crisis, is gradually recovering,
heading for the Baltic region, particularly for the
before the crisis stuck.
with a total throughput of 3.7 million TEU in
Russian market.
The Maersk Edinburgh, one of the largest ships to call at Hamburg
theBaltic September 2010 www.thebaltic.com
91
Port focus Germany Draft difficulties restrict calls
the Elbe a matter of priority. Cosco is switching
the terminal would have sufficient throughput to
Despite the positive figures, though, Hamburg
many of its container operations to Rotterdam as
make operations worthwhile.
still has long-standing problems with access and
a result, he said, and is now sending 80% of its
“Technnically, we are right on track, but we
depth. Dredging of the port entry channel has
cargo for the region through Rotterdam, rather
have agreed with the operator on a launch in
once again been delayed due to environmental
than Hamburg. In 2009, 60% of Cosco’s cargo
mid-2012, as we cannot ignore the current
concerns. This is particularly significant as many
went through Hamburg and only 40% through
economic situation, and want to be sure that
of the container lines use their largest vessels on
Rotterdam.
the necessary container throughput will be there
the Asia-Europe routes, and draft restrictions are
right from the start of operations. As a result,
causing access problems, with vessels unable to
our partners have confirmed that the guaranteed
Container slowdown delays JadeWeser
throughput figures for the first seven years
At the moment, shipowners – and the port –
One possible solution for shipowners finding
ceo of the JadeWeserPort Realisierungs GmbH
appear to be coping with the situation. According
port restrictions in Hamburg too tight would
& Co. KG, responsible for constructing and
to statistics from the port of Hamburg, more than
be a move to another of Germany’s ports.
managing the port. “This solution has given
100 containerships of more than 10,000 teu
Wilhelmshaven’s new box terminal, JadeWeser
all participants in the project the necessary
capacity will call at Hamburg during 2010. In
Port, is scheduled to begin operations in August
security,” he continued.
recent weeks, CGA CGM and Maersk launched
2012. The port will accommodate vessels with a
a joint Hamburg-Far-East Europe line with a call
draft of up to 16.5 metres.
navigate the Elbe fully laden or at certain states of the tide.
of operation will be made,” said Axel Kluth,
2012 will see the opening of the first 1,000 metres of quay. The remaining 1,735 metres
from the 11,356 teu Callisto, which has a fully
The 2012 launch was announced at the
will be opened a year later, on 5 August
laden draft of 15.5 metres – maximum draft in
end of May this year, and was a matter of
2013. “We would like to thank the regional
the Elbe is 12.5 metres. In August, the 13,100
considerable negotiation between the port
government of Niedersachsen and Bremen and
teu Maersk Edinburgh made its maiden call at
owner and its operators, the Eurogate group and
the construction company for their readiness to
the port, with a similar draft.
APM Terminals International. It has in fact been
negotiate,” said Emanuel Schiffer, head of the
However, according to reports in Die Welt in
pushed back from the original planned date in
board at Eurogate. “The agreed schedule will
July, Wei Jiafu, president of Cosco Lines, called
order to give the container market time to fully
give us much better conditions for a successful
on the German government to make dredging
recover from the 2008/9 slump and ensure that
launch at Wilhelmshaven.”
Restricted draft in the Elbe could cause problems for some vessels
92
theBaltic September 2010 www.thebaltic.com
Insurance parlance
Insurance Parlance Brokers must tighten up client money procedures Leading
insurance
industry
accountant
and consultant, Moore Stephens, says that UK insurance brokers will have to be able to demonstrate that they have put in place properly embedded procedures to deal with handling client money, or else risk losing their regulated status. Moore
Stephens
Insurance
Industry
Group partner, Stuart Markley, says: “Senior management must be aware of the control
Chauncy Maples, which is being rebuilt as a floating clinic
procedures for client money which are in place in their firms, and they must be able to
a London-based specialist insurance company,
the lakeside for assembly. Since then, Chauncy
demonstrate such awareness, and the efficiency
which has chosen to make the renovation of
Maples has served as a gunboat, a trawler and
of controls and procedures, to the satisfaction
Chauncy Maples the focal point of its 125th
even a refuge from Arab slave traders. Until
of the regulator. Embedding proper client
anniversary celebrations.
recently, she has been administering to the needs of the local population as a bar, a far cry
money handling procedures into the day-to-
The Trust needs to raise up to £2 million
day operations of your company is a priority for
in order for the planned refit to be completed
achieving regulatory compliance.”
within a 12-month time frame. Thomas Miller is
According to Thomas Miller director, Mark
Writing in the latest issue of the Moore
contributing £250,000 from its own resources
Holford, the trust is not only seeking financial
Stephens Insurance Industry Group newsletter,
and had already raised a similar amount from
contributions: “Several potential donors have
Insured Interest, Markley says: “The FSA has
its friends, employees and business associates
already come forward to ask whether they
re-emphasised its continuing concern over the
even before the official launch of its appeal on
can offer more practical support by way of
handling of client money and assets in the
17 June. The government of Malawi is also
equipment or services. We are already in detailed
insurance industry. It has accorded a higher
expected to make a substantial contribution
discussions with a major manufacturer of diesel
priority to achieving compliance with client asset
towards the local labour costs.
engines who we hope will offer us a new main
from what is now envisaged for her future.
engine on favourable terms.
requirements because it is concerned that firms
Half a million people living along the coastline
are not always achieving an adequate level of
of Lake Malawi, which is 560km long and 75km
protection.”
at its widest point, have neither access to
celebrate major anniversaries with lavish parties
healthcare nor medical protection from malaria,
and dinners but even before we all felt the full
tuberculosis, dysentery and HIV-Aids. Malawians
impact of the current global recession, there was
Thomas Miller backs Malawi project
seeking medical attention currently paddle
a growing feeling amongst the more forward-
dugout canoes up to 80km to reach medical aid,
thinking companies that it would be more
Thomas Miller is celebrating its 125th anniversary
risking fatal attacks by hippos and crocodiles.
appropriate to devote time and resources to
“In
former
days,
organisations
would
by supporting the renovation of Africa’s oldest
Chauncy Maples was built in Glasgow in 1898
projects that benefit the community. In Thomas
ship, fitting it out as a floating clinic to serve an
for British missionaries working in Central Africa
Miller’s case, we were looking for a project that
estimated half a million people living around the
and was named after the Bishop of Nyasaland
reflected not only our global reach and our
shores of Lake Malawi.
who drowned in a storm on Lake Malawi.
maritime heritage but one that would also appeal
Built in Glasgow in 1898, Chauncy Maples
Shipped to Mozambique in 3,481 small parts
to our UK clients such as members of the legal
is believed to be the oldest ship still afloat in
plus an 11 ton boiler mounted on wheels, the
profession, patent agents, housing associations
Africa. Funds for the restoration and refit are
vessel components were subsequently moved
and pension fund trustees. The Chauncy Maples
being raised by Chauncy Maples Malawi Trust
by river and then overland, local tribesmen
project ticked both boxes – and a host more.”
with considerable support from Thomas Miller,
carrying and dragging them the final 100 miles to
theBaltic September 2010 www.thebaltic.com
93
Insurance ITIC
Expert witness? The indemnity currently given to expert witnesses may soon be significantly limited, if not abolished, by the courts. Andrew Jamieson of the International Transport Intermediaries Club looks at the implications
A
number of Baltic Exchange mem-
Immunity under threat
in these circumstances the duty to the court
bers offer their services as expert wit-
The issue of the expert’s liability is topical
must override the expert’s fear of being sued for
nesses. Indeed, there is a database of
because the Supreme Court, now the final court
departing from a previously held position. Each
potential experts freely available on the
of appeal in the UK for civil cases, is due to
case has to be considered on its own facts
Exchange’s website. The evidence required by
rule upon the issue of whether or not an expert
and there will be grey areas where it is unclear
litigants will be varied. Shipbrokers, for example,
witness should have any immunity from liability
whether or not the expert will be immune from
may give evidence before a court or tribunal on
in relation to evidence given in civil proceedings.
liability.
the state of the spot charter market. And that
The current legal position is that expert
evidence, drawn from their professional knowl-
witnesses who give evidence at trial are immune
Accountability and insurance
edge, may be vital in establishing the level of
from being sued in respect of anything they
The majority of legal commentators predict that
damages payable.
say in court. This immunity also extends to the
the Supreme Court will seek to greatly limit, if not
But what happens if a litigant employs an
content of a report which the expert produces
abolish, the indemnity currently given to experts.
expert to help bring or defend a claim, and that
for the purpose of giving evidence. The claimant
The rule that barristers could not be sued for
expert ‘gets it wrong’? A client could incur a
cannot get round the immunity by suing on the
court work has been abolished. Experts are
substantial liability in legal costs (both in terms
report rather than on the evidence itself. The
generally professionals and the court will feel
of its own costs and an obligation to pay the
immunity does not, however, protect an expert
that they should be accountable and are likely to
opponent’s costs) as a result of relying on that
who has also been retained to advise on the
have insurance. Remember, too, that the victim
expert. Can the client then sue an expert who
merits of a party’s claim in litigation, even if it was
of their negligence will normally be the ‘lay client’
has been negligent?
intended that the expert would be a witness at
who has done nothing more than rely on the
the trial if the litigation was to proceed.
professional’s advice.
The position of an expert witness is different from that of other professionals employed by
A broker will usually have a dual role both as
The potential liability for experts means that
a litigant. In the UK, the Civil Procedure Rules
an adviser and as an independent expert. The
the duty should not be undertaken lightly. In any
make it clear that the expert has an overriding
work done in the former capacity will not be
event, it is recommended that, before agreeing
duty to the court to give impartial evidence.
immune from liability. It is quite possible that if,
to act, experts check their professional indemnity
Experts are frequently criticised for failing to
on the basis of the broker’s advice, litigation is
insurance to make certain that they would be
stick to this duty. In the Ikarian Reefer case,
started, the broker could be sued if that advice
covered should a claim be forthcoming.
for example, the Court of Appeal pointed out
was negligent. The legal costs incurred as a
In addition to the potential liabilities if the
that the expert evidence given on behalf of a
result of the broker’s advice could be extensive
expert has been negligent, even an ‘innocent’
shipowner was clearly not independent. It is
and a substantial liability for wasted costs could
expert can face substantial legal costs in dealing
too easy for experts to allow a desire to help
be incurred.
with a claim. At best, only a proportion of these
the client to blind them to the evidence. If they
In practice there is an obvious difficulty in
costs will ever be recovered. One additional
allow themselves to over-zealously ‘support the
separating the work undertaken into the two
point to bear in mind is that appointment as
cause’, experts will find that the client will blame
categories of adviser and expert. One of the
an expert is a personal appointment, not a
them if they lose.
issues that can arise involves one of the experts
company one. So make sure your company’s
changing his or her mind as a result of a meeting
policy covers you, the individual, when acting
of experts. The courts have considered that
as an expert.
94
theBaltic September 2010 www.thebaltic.com
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Legal news
Legally speaking Pollution advice
A master might take a longer route to a
others. However, claimants should consider the
The Deepwater Horizon oil spill in the Gulf of
port to avoid an oil slick. Moreover, a port might
likelihood of any recovery given limitations of
Mexico prompted a flurry of queries concerning
be temporarily closed as the slick develops. In
liability currently in place in the US.
safe ports, time and voyage charterparties and
these situations, a ship is likely to remain on-hire
hull fouling, according to the UK Defence Club.
unless there are specific clauses to the contrary
While the spill is now largely under control, the
in a time charterparty.
issues raised will be relevant to similar cases in
Restrictions imposed on shipping might
US liability limits retained – for now
cause delays in entering and departing from
The US has passed an updated version of
Although there are no court decisions on the
ports in the area. Much will depend on the
the Oil Spill Accountability and Environmental
point, a port could be considered as unsafe if
wording of each charter. Unless demurrage is
Protection Act, put together in the wake of the
its approaches are covered with oil which could
already running, the risk of delay will fall initially
Deepwater Horizon oil spill. The Bill eliminates
damage a ship or cause it to incur penalties,
on the owner. However, if a nominated port
liability limits for offshore drilling facilities, but
delays or fines. Assessing whether a port is
becomes closed prior to its arrival, the ship may
leaves the vessel liability limits under OPA 90
unsafe is a question of fact but if the danger
earn demurrage once she proceeds “so near as
unchanged. However, a proposed amendment
can be avoided by an alternative safe route or
she may safely get”.
to the Bill would allow the President to review
the future.
good seamanship, it is unlikely the port will be
The Club warns that ships trading recently
these limits every three years.
in affected areas in the Gulf of Mexico should
considered unsafe. Ports close to the oil spill may not be
ensure there is no hull fouling before entering
considered as sufficiently unsafe to allow an
ports outside the area, thereby complying
owner to refuse an order to go to such a port
with oil pollution regulations. In terms of
Single Act for Port Arrivals in the EU?
under a timecharter or refuse such a nomination
compensation for cleaning costs or lost time, an
The Maritime Advocate reports that the EU
under
Nevertheless,
owner may have a claim against a timecharterer
is getting ready to simplify rules on ships’
acceptance of such an order should not normally
under an implied indemnity for following the
reporting. On 6 July 2010, the European
preclude an owner from claiming damages later
charterer’s orders, or perhaps under a safe port
Parliament approved a proposal made by
for losses resulting from the oil.
warranty. Claims might be submitted to BP and
the European Commission for a directive on
a
voyage
charter.
reporting formalities for ships arriving in and/ or departing from ports of the EU Member States. The Parliament approved the proposal at first reading, which in practice means that the proposal can be adopted by the Council of the EU without debate and then become law. The draft directive is intended to simplify and facilitate the administrative procedures for ships entering and leaving EU ports, inter alia by setting up a one-stop administrative shop in every port within five years. From 2013, the directive will also simplify and harmonise a certain number of procedures, notably by reducing the repeated transmission of data to the different administrative authorities in the ports. The provisions of the directive will be Procedures for entering EU ports have been simplified
96
theBaltic September 2010 www.thebaltic.com
phased in between 2012 and 2015.
Commercial profiles
GFI Freight The secret to being a leading freight broker: be a whole lot more
D
orian Benson, head of GFI’s Dry FFA desk
Brokers now face more pressure than ever to
and Andrew Jamieson from ACM-GFI,
improve services and technology for market
chairmen of the dry and wet sections of the FFA
participants. What is GFI doing to increase
Brokers’ Association (FFABA), talk about issues
technology adoption? DB: We are actively promoting electronic trading
such as liquidity, technology, clearing and counterparty exposure
the Dry and Wet FFABA we are heavily involved
amongst our customers. The efficiency gains are
in market discussions and are at the forefront
too big to ignore. EnergyMatch Europe, GFI’s
GFI has played an integral role in the
of working towards the greater benefit of the
multi-commodity, multi-clearing, multi-exchange
commodity part of the financial sector. Can
markets as a whole.
platform allows participants to execute both wet and dry FFA transactions together on one venue,
you highlight key benefits freight brokers add to the industry?
Have there been any changes to the wet FFA
thereby decreasing trading costs. EnergyMatch
DB: The benefits that we offer for wet and
products since the beginning of this year?
Europe can also be tailored to suit a customer’s
dry FFAs are our combined knowledge and
AJ: The emergence of $/mt contracts this year
unique trading needs. If you are a hedge fund,
expertise. The freight market is highly interlinked
has been the main change to take place. This
you can customise the platform to look at total
with other physical commodities, such as coal,
new contract allows users to trade in periods out
risk across a range of markets, not just freight. In
oil and iron ore, and brokers need to be very
with the current pricing year without having to
addition, freight customers can access FENICS
informed with what is happening or due to
take on ‘flat rate risk’. This contract will hopefully
Freight, which offers analytical, chartering and
happen so that any movement and changes
boost the counterparties that want to trade
price discovery tools, for both the wet and dry
can be factored in. Every client, be it a steel
FFAs on a ship/cargo specific basis as part of a
freight markets. It has in-depth data of intra and
merchant, mining co, bank or a hedge fund, has
hedge, as well as offering a more commoditised
cross-route analysis, highlighting opportunities
different needs, yet they are all interlinked with
and easily understood contract to the wider
within FFA pricing.
each other.
speculative users who we see trading in the dry market on a daily basis. $/mt also enables us to
Your commitment to the freight industry has
Iron ore continues to be the main driver for
trade $/day, as bunker swaps are now readily
been marked by the rapid growth of your
the dry bulk sector, having shown consistent
available to market participants.
business globally. Can you back this up with any figures?
growth over the last quarter. How do you see this complementing your current business?
How do you see the freight market evolving?
DB: Terry Parmenter, head of the dry physical
DB: There are synergies between markets. The
DB: FFAs are a relatively new player in the field
team, says that his head count has grown by
recent emergence of an iron ore derivatives
of commodity derivatives. It started life as a
over a 1,000% over a four-year period. There is
market, based around CIF pricing into Tianjin,
simple tool for hedging and has evolved into an
no greater indicator of industry commitment than
has freight as a natural and integral part of the
integral part of the global derivative landscape.
a company growing its staff in order to serve
costing. Similarly, there are synergies between
Similarly, the risk management side of the
more customers.
dry FFAs and the coal market with a natural
product has grown in importance and has been
correlation established between implied freight
widely accepted as a fundamental requirement
For more information, please contact us:
generated by API2 and API4 against the C4
for those involved in moving commodities by
Dry Freight (FFA)
market. We follow and analyse these markets,
sea. While screens are a constant source of
London: +44 20 7877 8090
which allow us to offer greater ‘colour’ to our
discussion and debate, GFI have shown their
Singapore: +65 6435 0469
customers.
commitment to this tool and remain a market
Cape Town: +27 21 410 8876
leader in this field for both wet and dry. Wet Freight (FFA)
The London Metal Exchange is looking to play a larger role in the freight sector. How
Are you seeing changes in the approach of
New York: +1 212 968 2050
do GFI and its broking partners deal with
some your customers?
London: +44 20 7422 1180
changes this might bring?
DB: Counterparty exposure is at the forefront
Singapore: +65 6820 2980
DB: The derivative markets are in a constant
of customers’ concerns and this has led to an
state of evolution and freight is no different.
almost total reliance on clearing. There has also
Dry Freight
GFI, with its expertise across many sectors,
been an expansion in the small clip market as the
New York: + 1 212 968 2211
can react and adapt to any changes that
wish to hold large exposure on the speculative
London: +44 20 7877 8151
may occur, whether this is the emergence of
trading books has reduced somewhat. The
Singapore: +65 6435 0471
new clearing mechanisms, screens, exchanges
lower rates and inevitable reduction in ‘price’
Shanghai: + 86 216 859 6721
or amendments to the regulatory landscape.
volatility has led to a greater level of spread
Naturally, in our unique position of chairing both
trading activity occurring.
theBaltic September 2010 www.thebaltic.com
Website: www.GFIgroup.com/freight
97
Commercial profiles
The Aalborg Industries Group A
Waste heat recovery
alborg Industries is the leading supplier of
of three technologies: filtration for pre-treatment,
steam boilers, thermal fluid heaters, heat
low pressure UV light for disinfection, and
Aalborg Industries’ MISSION™ XW-TG econo
exchangers and inert gas systems. We offer
ultrasound for cleaning. This combination
miser generates power using a steam turbine
reliable, innovative and environmentally friendly
ensures a reliable and highly efficient ballast water
driven generator (turbo generator). The heat
products with low life cycle costs. The Aalborg
treatment that will meet even the most stringent
recovery capacity of the economiser means that
Industries Group operates a global After Sales
standards in the industry. Thanks to the use of
the engines do not need to produce so much
service from its companies in 14 countries.
ultrasonic technology, the system is self-cleaning
power, which in turn saves fuel. Shipowners
latest
and thus almost entirely maintenance-free. No
using this technology have achieved significant
and
generation of chemical substances takes place
fuel savings and thereby reduced CO2 emissions
and energy requirements are relatively low.
in double digit percentages.
combination of UV light and ultrasound, a new
Exhaust gas cleaning
Aalborg Industries A/S
and cost-saving sulphur emission abatement
Using the exhaust gas cleaning system from
PO Box 844, Gasvaerksvej 24
technology to clean exhaust gas from ship
Aalborg Industries, shipowners are enabled to
9100 Aalborg
engines, and continued optimisation of large
continue operating on heavy fuel oil instead of
Denmark
waste heat recovery boilers.
more expensive marine diesel oil in order to meet
Tel: +45 99 304000
and
the new IMO regulation coming into force in
Fax: +45 98 102865
operational enhancements, Aalborg Industries
2015 (Emission Control Areas (ECA)) and 2020
E-mail: aal@aalborg-industries.com
offers product ranges for the retrofitting as
(worldwide).
Website: www.aalborg-industries.com
Among
Aalborg
environmentally
Industries’
friendly
produ cts
technologies are the AquaTriComb™ system for ballast water treatment based on a unique
With
respect
to
environmental
well as the newbuilding market, providing
Cleaning exhaust gases is a vital and cost-
operational savings while offering an enhanced
saving alternative to using low or no sulphur
environmental profile.
fuels. Apart from cleaning SOX emissions, the exhaust gas scrubbers have also proved
Water treatment systems
to be more effective in removing harmful
Our unique system for treatment of ballast water,
particles compared with switching solely to
the AquaTriComb™ system, uses a combination
low-sulphur fuels.
Carbon Positive G
reenhouse gas regulation is coming to
The company now brings this experience to
(c) reduce emissions less than required and
shipping. It’s not a case of ‘if’, but ‘when’.
shipping. Not just to help shipowners, managers
achieve compliance by buying emission offset credits elsewhere.
The history of emissions regulation in other
and others prepare for regulation but to help
industry sectors strongly suggests that sooner
the industry shape the best regulatory system
Carbon Positive will assist clients identify
or later market-based measures involving
it can, working with the regulators. We are on
the best strategies to meet environmental and
emissions trading in some form will be the end
that path now, developing a series of voluntary
commercial goals, select the preferred strategy,
result. Carbon Positive believes the long-term
emissions trading experiments to inform both
and implement projects and specific steps
interests of the maritime industry are best served
the development of regulation and the shipping
within those strategies. Our work thus involves
by such a market-based system, one that offers
industry’s response to it.
developing programs to manage emissions
flexibility to shipowners and operators in how
Once emission trading regulations are
control compliance, economic analysis of the
they go about reducing their emissions, and also
set, we’ll help shipping entities manage the
emission control options, technological solutions
a system into which the industry has had a say.
compliance risks and profit from the trading
to reduce emissions, and financing strategies
Emissions trading measures best deliver this
opportunities that will follow. Every business’s
to deliver on these tasks. Carbon Positive helps
flexibility, enabling shipowners to choose the
circumstances are different. A range of options
shipping learn, prepare and act.
most suitable, least-cost compliance solution to
for complying with mandated emissions targets
reduce emissions. We base this contention on
will give shipping companies opportunities to
experience - the Carbon Positive team has been
choose what suits them. For example, they
involved for 25 years in the development of, and
might:
For more information, please contact us:
compliance with, air emissions regulations; back
(a) control emissions exactly to regulation
to their very beginnings in ‘acid rain’ sulphur
through fuel-efficiency or direct emissions-
Athens 10674, Greece
emissions regulation in the United States in the
reduction technologies
Tel: +30 210 364 2304
5, Koumbari Street
early 1980s. We provide consulting and project
(b) reduce emissions more than required,
management services to emitters of greenhouse
going beyond the compliance obligation and
E-mail: info@carbonpositive.com
gases (GHGs) and other air-borne emissions.
generating tradable credits from the excess, or
Website: www.carbonpositive.com
98
theBaltic September 2010 www.thebaltic.com
Fax: +30 210364 0373
Commercial profiles
The Norwegian International Ship Register – NIS The complete maritime administration
W
ith both its traditional ship register – NOR,
development of equal conditions and uniform
Great emphasis is continuously placed on
and its second international ship register
rules.
keeping turnaround times to a bare minimum.
The Norwegian judicial system is highly
Due to time differences, registration is possible
respected in the maritime sector as sophisticated
from 7am until midnight every day except
There is one nationwide registration office,
and predictable. Accordingly, the register is
Sundays and international holidays.
the Ship Register (“Skipsregisteret”) located in
recognised by owners and financiers as a secure
Bergen which administers both registers. The
and professional option.
– NIS, Norway is ranked as one of the world’s major shipping nations.
Each registration will be assigned a case officer who will be in charge of that particular
Shipping taxation is also very favourable
registration process and follow it until completion.
in Norway. As a general rule, income from the
If necessary, other case officers will, however,
The NIS differs from the NOR in that it is
operation of ships registered in the NIS and
always be available to assist.
open to shipowners of all nationalities and
owned entirely by non-Norwegians will not be
allows employment of foreign seafarers on local/
taxed here.
Register comes under the governance of the Ministry of Trade and Industry.
national wages, established through collective
Supporting the UN Secretary Council’s
wage agreements between an employers’
efforts and being the first country outside Asia
federation and an independent union which
to become a member of ReCAAP, is all part
organises the seafarers.
of the Norwegian government’s strategy to
Ships registered in the NIS fly the Norwegian
take an offensive stand in the combat against
flag and are subject to Norwegian jurisdiction.
piracy. With approximately 500 consular stations
The NIS has a reputation for being a registry
worldwide, Norway is very well represented and
for quality tonnage, which avoids targeting
prepared to offer assistance to Norwegian ships
To learn more about the register, please contact
from port state control inspections in foreign
and their crew in needy situations.
us directly:
ports. Furthermore, participation in international
Efficiency, objectivity and high professional
maritime committees such as the IMO has
standards are distinctive marks for the Register,
Web: www.nis-nor.no
secured Norway significant influence in the
which is renowned for offering excellent services.
E-mail: post@nis-nor.no
DP World
Tel: 00 47 55 54 12 50
RECREATE LOGO AND PMS
DP World is one of the largest marine terminal
In taking this customer-centric approach, DP
operators in the world, with 50 terminals and
World is building on the established relationships
11 new developments across 31 countries¹. Its
and superior level of service demonstrated at
dedicated, experienced and professional team
its flagship Jebel Ali facility in Dubai, which has
of nearly 30,000 people serves customers in
been voted “Best Seaport in the Middle East” for
For more information, please visit
some of the most dynamic economies in the
16 consecutive years.
Website: www.dpworld.com
world.
In 2009, DP World handled more than 43.4
DP World aims to enhance customers’
million TEU (twenty-foot equivalent container
supply chain efficiency by effectively managing
units) across its portfolio from the Americas
container, bulk and other terminal cargo.
to Asia. With a pipeline of expansion and
The company constantly invests in terminal
development projects in key growth markets,
infrastructure, facilities and people, working
including India, China and the Middle East,
closely with customers and business partners
capacity is expected to rise to around 95 million
to provide quality services today and tomorrow,
TEU over the next 10 years, in line with market
when and where customers need them.
demand. ¹ As of July 2010
theBaltic September 2010 www.thebaltic.com
99
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
Wilhelmsen Ships Service W
ilhelmsen Ships Service is part of
and coordinate their global business. This
Maritime logistics
Wilhelmsen Maritime Services, a Wilh.
global coordination enables the streamlining of
Wilhelmsen Ships Service also handles maritime
Wilhelmsen Group Company. It has the world’s
operations, cash transactions, documentation
logistics, providing commercial and operational
largest maritime services network, with the abil-
and communication flows, resulting in improved
services in the local market on behalf of our
ity to service 2,178 ports in 125 countries. The
efficiency
liner principals. The focus is on optimising the
company’s focus is to ensure that vessels oper-
administrative costs.
and
reduced
operational
and
ate smoothly at sea and cut down turnaround time in port. Their customer services provide
cargo and equipment mix, thereby increasing the principals’ profit.
Unitor products
The Ships Spares Logistics – First Mile
peace of mind through 24/7 accessibility, per-
The company supplies a broad range of Unitor-
to Last Mile offer is a brand-new concept
sonal service and local knowledge.
branded safety equipment, welding equipment
that Wilhelmsen Ships Service is bringing to
Wilhelmsen Ships Service supplies maritime
and consumables, refrigeration equipment
the market. Using our extensive geographical
products and services, specialising in safety and
and spares, refrigerants, gases, water and
presence and dedicated freight forwarders,
environmental services, Unitor marine products,
fuel oil testing equipment, and cleaning and
customers’ spare parts are moved from
maritime logistics and ships agency.
maintenance chemicals. All products are tested
their manufacturer or supplier to their vessel,
for reliability in the tough marine environment.
anywhere in the world, without costly delays
Ships Agency
along the way. A key element of the offer is a
Safety and environmental services
single point of contact, with total visibility of data
ships agents handle port calls. The company has standardised procedures to ensure that
In addition, the company provides fire, rescue
reporting features.
customers receive consistent service in all 2,200
and safety service, refrigeration service, welding
ports where they operate around the world.
training, chemical services, refrigeration training,
For more information, please visit:
Every customer who enters into a multiple
and EPA training, with the objective of enhancing
Website: www.wilhelmsen.com/shipsservice
port service agreement is allocated a single
safe vessel operations.
Wilhelmsen Ships Service has redefined the way
point-of-contact, a Global Agent, to oversee
100
theBaltic September 2010 www.thebaltic.com
such as prices, order status and a full range of
Commercial profiles
International Registries, Inc I
nternational Registries, Inc. (IRI) and its group
issue seafarer documentation and service
of both the Paris and Tokyo MoUs and to hold
of affiliated companies are the Maritime and
clientele. The continued decentralisation of
Qualship 21 status with the United States Coast
Corporate Administrators of the Republic of the
operations to the 20 worldwide offices, where
Guard for five consecutive years.
Marshall Islands.
the Registry’s maritime experts know owners
The main factor that differentiates the
and operators personally and work closely with
Marshall Islands Registry is its commitment to its
IRI has been administering
maritime and corporate registries since 1948. The Marshall Islands Registry moved into
them, continues the growing trend of a quality
customers and the services the Registry provides
position as the world’s third largest registry at
fleet. The most important asset to the Registry
around the world. Having properly trained staff
the end of 2009. By the end of the second
is its customers and IRI strives to provide them
available with the ability to interact with PSC
quarter of 2010, the Registry stood at 58.6
with full service from any office 24 hours a day.
authorities, class and owners/operators, enables
million gross tonnes and 2,215 vessels. Vessel
As an active member of the International
the Registry to provide around the clock service
types include oil tankers, LNG/gas carriers, bulk
Maritime Organization (IMO), the Marshall
carriers, container ships, mobile offshore drilling
Islands has ratified and implemented all key
units, and yachts, among others. The Registry
international conventions and instruments. It
has shown substantial growth year-after-year,
continually strives to promote the quality of
not only in terms of vessel registrations but also
vessels in its Registry, turning away on average
in terms of Marshall Islands registered shipping
one in three vessels seeking to enter the fleet.
companies going public on stock exchanges in
Those vessels operating under the Marshall
For more information, please contact:
London, New York and Singapore.
Islands flag achieve the highest ratings in the
International Registries (U.K.) Limited
IRI has a network of 20 worldwide offices
Port State Control (PSC) international rankings.
Tel: +44 20 7638 4748
that have the ability to register a vessel or yacht,
The Marshall Islands Registry is the only major
Fax: +44 20 7382 7820
record a mortgage, incorporate a company,
open registry to be included on the White Lists
E-mail: london@register-iri.com
to customers and keeps the ships moving.
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)
theBaltic September 2010 www.thebaltic.com
Bo Cerup-Simonsen, Vice-President; Maersk
101
Commercial profiles
Jeppesen Norway J
of
director, Maritime Industry Affairs and Services
light and commercial marine markets. Safety-
Hydrography and Navigation (DHN) have
for Jeppesen. “We look forward to a long and
conscious boaters and operators that range
reached an agreement giving Jeppesen access
mutually beneficial cooperation between our
from inland and coastal towboats to SOLAS
to all of the nautical charts and data published
organisations.”
class vessels rely on Jeppesen Marine, which
eppesen
and
Brazil’s
Directorate
“DHN is responsible for ensuring the safety
is chartered with the same underlying values
The agreement, signed through Empresa
of maritime navigation in Brazilian waters and
that launched Jeppesen in 1934 – improving
Gerencial de Projetos Navais (EMGEPRON),
NAVAREA-V,” says Admiral Luiz Fernando
safety
will allow Jeppesen to use DHN’s high quality
Palmer Fonseca, director of the Brazilian
navigation solutions.
nautical charts and data in its industry leading
Hydrographic Service.
“The agreement with
For more than 75 years Jeppesen has made
marine navigation products for both commercial
Jeppesen will allow for broadening the scope
it possible for pilots and their passengers to
and light marine users. With direct access to
of products for navigation and, doing so, will
safely and efficiently reach their destinations.
sovereign data, Jeppesen is able to ensure the
support our mission, and increase quality and
Today, this pioneering spirit continues as
highest levels of quality and integrity, thereby
integrity of nautical products. We understand
Jeppesen delivers essential information and
increasing the safety of maritime navigation. The
that the products to be supplied by Jeppesen
optimisation solutions to improve the efficiency
agreement also makes possible new chart and
will expand the offerings of new products for
of air, sea and rail operations around the globe.
data coverage areas for Brazilian waters.
specific customer usage, such as pilotage or
Jeppesen is a subsidiary of Boeing Commercial
sports and recreation , among others.”
Aviation Services, a unit of Boeing Commercial
by DHN for Brazil’s sovereign waters.
In addition, Jeppesen and DHN have a letter
and
efficiency
through
innovative
Airplanes. Jeppesen corporate information is
of intent, under which the two are discussing the use of Jeppesen dKart tools and software
About Jeppesen Marine
by DHN to digitise and automate the production
Jeppesen is a market-leading provider of vessel
of Notices to Mariners, List of Lights and other
operations services and digital navigation
aids to navigation.
available online at jeppesen.com.
solutions, based on worldwide vector chart data
Contact Jeppesen at:
“Jeppesen is committed to supporting
type approved to ISO19879, meteorological
Jeppesen Norway AS, P.O. Box 212, 4379
sovereign organisations, such as DHN, in their
information and transmission technologies.
Egersund, Norway
mission of ensuring safe and efficient navigation
Jeppesen Marine offers a wide range of navigation
E-mail: info.marine@jeppesen.com
within their waters,” says Michael Bergmann,
and operations products and services to both
Website: www.jeppesen.com/marine
Andrew Weir Shipping A
ndrew Weir Shipping provides a complete
which we can offer our services worldwide.
with brokers and underwriters in the market and
shipmanagement service from repair and
Our relationships with key manufacturers and
can provide competitive quotations for all types
maintenance to purchasing and accounting. As
suppliers of marine equipment enable us to
of marine cover. We also provide a full claims
a long-standing member of the UK’s maritime
respond quickly to urgent requirements from
management service, from inception to final
industry, we have an enviable reputation, and
the vessel, and our integrated maintenance and
settlement.
as a result have excellent relationships with a
purchasing software ensures that day-to-day
broad range of companies in the world shipping
operations are carried out efficiently.
Andrew Weir Shipping is dedicated to providing a quality service which is large enough
Andrew Weir places great importance on
to offer economies of scale, yet small enough
We offer a full shipmanagement service,
the relationships it has with its clients. We
to make our clients feel more of a partner than
starting from newbuild and conversion project
pride ourselves on our ability to communicate
a customer.
management. We have established relationships
and report to owners in their preferred formats
with classification societies and flag state
as required for either the technical side of the
authorities and can advise on issues relating to
business, or the budgetary and accounting side.
market.
registration of vessels, and carry this out on an
Additional services provided include a
owner’s behalf. Once in service, the vessel can
full crew supply and management service.
benefit from Andrew Weir’s tried and tested ISM
We have the ability to source fully qualified
and ISPS systems. These are fully computerised
officers and crew from around the world to
for ease of use and have enabled us to be
meet the requirements of owners or national
For more information, please contact:
certified to ISO 9001 and ISO 14001 standards.
and international regulations where necessary.
Andrew Weir Shipping Ltd
We have the experience to supervise
Andrew Weir enjoys considerable loyalty from
Dexter House, 2 Royal Mint Court
and assist with any aspect of the ongoing
sea staff and as such many of the officers and
London, EC3N 4XX
and periodic maintenance of the vessel. Our
crew are known to the company.
United Kingdom
technical personnel have significant experience
We are also able to provide a full insurance
Tel: +44 (0) 207 575 6000
in the smooth planning, arrangement and
and claims service from our in-house insurance
Fax: +44 (0) 207 481 4874
execution of scheduled docking repairs, for
department. We have established relationships
E-mail: shipman@aws.co.uk
102
theBaltic September 2010 www.thebaltic.com
Commercial profiles
Parekh Marine Agencies Pvt. Ltd. P
arekh Group of Companies, wholly owned
and logistics industry. Today the Group is proud
This association with Multiport Network provides
by the Parekh Family, was founded in 1951
to be associated with some leading names in the
Parekh Group with an international outreach
international shipping and logistics field.
and an enhanced opportunity to serve a larger
to diversify the activities of the family from trad-
client base.
ing to shipping and related activities. Over the
With operations spread over 17 cities and
years, the Group has evolved into a multifaceted
all major and minor ports and ICDs of India,
In the current business scenario of rapidly
service provider actively involved in all aspects of
the Group has a truly national presence and
advancing India, the Parekh Group today is
shipping and logistics in India. With the changing
infrastructural set-up to effectively service any
well poised to take the tide at upswing, ready
face of the business environment in India since
client. Well-networked offices in all locations
to contribute to and participate in the progress.
1980, the Group has now emerged as an estab-
enable the Group to provide real-time information
lished integrated service provider to domestic
and value-added services to its customers.
as well as international shipping interests, with
Some of the services provided by Parekh Group
services ranging from handling a small LCL
are shipping agency, multimodal transportation,
parcel to a heavy over-dimensional single-piece
chartering & brokering, freight forwarding, off-
Parekh Marine Agencies Pvt. Ltd.
machinery or a full shipload of cargo.
shore services, CFS and warehousing, and
Wakefield House, 1st Floor
supply chain management.
Sprott Road, Ballard Estate
Over five decades of experience in the
Parekh Group
shipping field, gained through a mix of hands-
From 1 April 2008, the agency division of the
on approach combined with technological
Group, Parekh Marine Agencies Pvt. Ltd., has
Tel: +91 22 66344444
advances
from
had the distinction of representing India as the
Fax: +91 22 22652003
professionals, has today brought the Group to a
Indian representative member of the prestigious
E-mail: agency@pmapl.com
commendable stature within the Indian shipping
worldwide Multiport Ship Agencies Network.
Website: wwwparekhgroup.in
and
continuous
inputs
Mumbai – 400001, India
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
theBaltic September 2010 www.thebaltic.com
103
Commercial profiles
Innovation, commitment and performance O
ver the years, J. M. Baxi has developed a
Employees
interconnected offices in several ports in India
significant and diversified presence across
The complement of over 2,000 employees has
and in important commercial cities. These offices
the maritime logistics domains in India. With a
professionals drawn from various disciplines, with
provide an effective back-up system to principals
unique combination of expertise drawn from
experience in industry, shipping and commerce.
and clients in all spheres of activity. We have
a wealth of experience and a consistent track
These professionals include, among others,
offices in London, Dubai, Singapore and China.
record of performance, we have emerged to
master mariners, engineers and technocrats.
be India’s premier Agency in the business of
Cross-functional teams work on specialised
Quality
integrated logistics solutions and end-to-end
assignments
comprehensive
The company has been awarded the ISO 9001:
maritime support services.
solutions, pooling expertise and years of
2008 Certification by DNV (Det Norske Veritas)
experience on similar projects or by combining
for conforming to the Quality Management
resources to chart out new techniques.
System Standard for a range of shipping support
We are convinced that transformation through innovation, commitment and performance is the
to
provide
key to gaining the cutting edge of leadership in
services.
an increasingly complex logistics landscape. We
Infrastructure
believe that satisfied customers are our future.
Today’s business dynamics dictates the need
Performance
Our vision is geared by a strategy of growth
for a sound and functionally viable infrastructure
We continue to play a pivotal role in providing
through customer satisfaction.
necessary to support diverse activities. J. M. Baxi
support services to the industry and have, in
has ensured that an elaborate infrastructure is in
the recent past, experienced both steady and
Maritime Support Services
place: specialised equipment, communication
accelerated growth in several of our business
J. M. Baxi is India’s largest and most professional
facilities, a national network of offices and
operations.
shipping and integrated logistics Agency. We
installations.
offer an array of services that are incomparable
We own a range of specialised equipment for
and unique on several counts in terms of
performing a variety of operations. In addition, we
customer focus, quality, safety, technology,
also have priority access to other standard and
innovation, and professional competence. We
specialised equipment, as and when required.
have grown in stature to provide a diverse range
To provide a comprehensive service to our
of services to a host of importers, exporters,
customers at their locations, we have the unique
For more information, please contact:
ship-owners and principals.
distinction of having a national network of 55
www.jmbaxi.com
J.M BAXI & CO.
Port of Zeebrugge A
container
treated within the port area with all the necessary
sea coast, the port of Zeebrugge offers a
transhipment hub; in 2009 it handled 45 million
personalised value-added services. Moreover,
highly productive hub for a wide range of ship-
tonnes of cargo and 2.3 million TEU. The
frequent competitive and reliable logistics deliver
ping companies. Zeebrugge is one of the few
port serves many deep-sea destinations and is
and receive cargoes throughout Europe.
ports that can easily handle the larger container
connected to the Middle and Far East with 10
vessels due to substantial water depth and the
fixed weekly services.
s a major coastal port on the Belgian North
Zeebrugge
is
a
top-class
The port is always looking to provide its unique and specialised advantages and to offer
With these frequencies, the port is well
its export tools onto the European market.
With an array of both deep-sea and short-sea
geared to offer its customers daily shipment
International companies have chosen Zeebrugge
distribution capacities, a network of intermodal
possibilities. Zeebrugge is grateful to serve all
as their distribution hub and new agreements
services to reach the markets, and distribution
major shipping lines, and its trade has doubled
are constantly being realised. Furthermore, in
facilities within the port area, the site is a logistic
since 2003.
order to be able to faced the expected traffic
sophisticated terminal equipment.
turntable that meets the demands of a very diverse customer base.
It ranks No 1 on the world scale in car trade; in 2009, 1.3 million units were handled for the
In the short-sea trade, Zeebrugge is the
global automotive industry. Zeebrugge offers its
growth, new port areas are continuously being developed.
prime continental port serving the UK and Irish
network and expertise to the emerging markets
For more information, please visit:
markets in transhipment. Fourteen daily freight
and is also an important platform for receiving
www.portofzeebrugge.be
services cover all major destinations on the UK
liquefied gas from the Middle East. The port is
east coast, but Scandinavia and the Baltic in the
thus a major gateway into Europe.
north, and Spain and Portugal in the south are also served with frequency.
104
All types of goods, general cargo, reefer trade, project cargoes amongst others, can be
theBaltic September 2010 www.thebaltic.com
Commercial profiles
When it matters most D
rug and alcohol use can create tough challenges, impacting on communities, the
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. Concateno provides customers with clear,
Concateno in numbers:
Concateno has three UKAS accredited
• 10 million tests conducted each year
laboratories, each dedicated to the analysis of
• 8,500 customers from across all industries,
a specific sample type – oral fluid (Abingdon,
healthcare and government bodies • 600 sample collection officers – a global network, from Adelaide to Aberdeen • 130 countries in which we have customers
timely and accurate information that they need
• 75 police forces rely on our services
to make these important decisions.
• Three world-class accredited laboratories
Oxfordshire), urine (Canary Wharf, London), and hair (Cardiff, Wales). These laboratories can also handle other sample types, such as blood, if required. Concateno maintains the highest levels of internationally recognised accreditation and
We do this by getting closer to the people we
No other company can provide Concateno’s
quality standards in the industry. We have
support, understanding their work and shaping
combination of skills, services, testing products
quality accreditations for laboratory analysis,
our services around their requirements.
and international reach. We have dedicated
office management, customer service systems
divisions specialising in the following areas:
and laboratory products, which are audited and
and testing capabilities – spanning laboratory,
• Child Protection
monitored independently.
point of care tests and all sample types – means
• Clinical Diagnostics
that we have both the ability and the flexibility
• Employee Services
to create a solution that is right for each client.
• Criminal Justice
An unparalleled breadth of advisory services
Concateno strongest
and
brings
together
Europe’s
• Healthcare
most
experienced
testing
• 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
E-mail: maritime@concateno.com
needing drug and alcohol testing should be best
and alcohol testing. We are developing tests
Concateno
served; through unbiased, scientifically driven
to detect newly emerging drugs of abuse,
Harbour Quay
and informed drug testing, delivered to the
improving the performance of our laboratory
100 Preston’s Road
highest standards.
instruments, extending the capabilities of point
London E14 9PH
of care testing, and are always in pursuit of faster
UK
and more sensitive tests.
www.concateno.com
Tel: +44(0)20 7712 8000
Bupa International B
upa International has 39 years’ expertise
as well as a prompt turnaround of claims,
sports injuries. Bupa International also includes
in caring for the insurance needs of expats
with Bupa International processing over 15,000
cover for chronic diseases, such as diabetes and
claims a week.
asthma, beyond diagnosis to include treatment,
and their families around the globe. Covering over 800,000 people in 190 countries, Bupa
Bupa International offers tailored products
including drugs and consultations. As chronic
International is the largest international expatri-
for industry segments, for example, a maritime
conditions become more common across the
ate health insurer in the world, supplying quality
policy designed for crew employees who live
globe, the benefit of this is significant, from both
individual and group medical cover to people
and work aboard yachts, super yachts or ocean-
a financial perspective and the peace of mind
who are in their home country or living abroad
going vessels.
this extended cover provides to our customers.
part of the leading international health and care
Medical expertise
Industry Leader
group, Bupa.
You’ll find our Medical Centre an accessible,
In 2009, we were delighted to receive the
knowledgeable and comprehensive resource
Best International Private Medical Insurance
Expat understanding
for all health related questions and concerns.
Provider award at the UK’s Health Insurance
Bupa International understands that expats want
Our Medical Centre team will talk in your own
Awards, for the ninth time since 1999.
peace of mind about their health while abroad –
language and give you access to medical
and a health insurer they can rely on to provide
experts and local facilities around the globe.
who require international cover. The company is
a high quality service and comprehensive coverage. That is why it has developed a
Adding value
worldwide network of over 7,500 participating
Flexibility is also Bupa International’s hallmark,
hospitals and a 24-hour helpline, open 365
with customers enjoying benefits such as primary
days a year, which is manned by a team of
care cover, maternity cover, cover for home
For more information, please visit
experienced advisers who can communicate
nursing, routine and emergency dentistry, as
www.bupa-intl.com
to you in 34 languages. This is all backed up
well as hospital treatment and accommodation,
or if you’re interested in international health
by direct settlement of bills where possible,
health checks, emergency road ambulance and
cover, please call +44 (0) 1273 322 091
theBaltic September 2010 www.thebaltic.com
105
Commercial profiles
SAMK
130 years of maritime training
T
he Faculty of Technology and Maritime
students with the practical experience required
Management (Rauma, Finland) in Satakunta
for certificates at different levels of training.
University of Applied Sciences offers its students
The Faculty has great expectations for
both long traditions and modern education. This
the prospective postgraduate programmes.
year, the Faculty reaches its 130-year milestone;
Developing the quality of education based on the needs of the client has become standard
during this time, more than 4,000 students have completed their maritime training at the
repair; and marine radio communications.
practice. Research and knowledge transfer is
university. The celebrations take place on 22-24
Additionally, the following areas are covered:
carried out by the Faculty’s experts as active
September.
protection of marine environment; chartering
project work. Maritime projects such as
Training in bachelor´s degree programmes,
and insurance policy; as well as crucial personal
OSKAR (knowledge assessment) have led to
marine engineer and sea captaincy is based on
skills such as organisation, project management
several sub-projects from shipping companies,
the regulations set by the STCW. Both external
and decision making. The training programme
administrations and the EU.
auditing and accordance with the IMO rules
consists of various courses that provide the
In addition to the degree programmes we
guarantee the quality of training, continuous
students with the opportunity to develop their
also organise a raft of further education courses,
development and progress. Our faculty is a
skills and knowledge in these fields. We also run
such as dynamic positioning training audited
member of IAMU, IMCA, BIMCO and NTS
the Maritime Resource Management courses
by The Nautical Institute, Marine Transportation
organisations.
licensed by the Swedish Club.
(oil, chemical, gas), and ISPS (SSO, CSO and
Maritime training today is a hi-tech field
Rauma Maritime Management is well with
technical
appliances
PFSO), and ECDIS to name just a few.
and also requires good social skills. Thus,
equipped
and
great emphasis is placed on several special
computer software. In our modern simulator
subject matters covering the following fields
centre, students have an opportunity to practice
of knowledge and skills: navigation; cargo
their navigation or engineering skills. During
handling and stowage; controlling the operation
their practical training, students get hands-on
Welcome to study in Rauma, Finland!
of the ship and care for persons on board;
experience of working life and duties on board
For more details visit our home page:
marine engineering; ship’s maintenance and
ships. This onboard training also provides the
www.samk.fi/maritime
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
106
theBaltic September 2010 www.thebaltic.com
Commercial profiles
SSY Futures Ltd S
impson Spence and Young are founder
the Dry FFA market we now offer both cleared
FFA markets by educating new participants and
members of the FFA markets and the
and OTC screen dealing facilities for wet and
helping them to approach this fast moving and
Forward Freight Agreement Brokers Association
dry FFAs. Additionally our screen prices are
often daunting new trading environment. We are
(FFABA). We are represented on all the Baltic
available via Bloomberg on pages SSYF, SSYD
regular speakers at Baltic Exchange-run courses
panels. SSY Futures Ltd was established in
and SSYW as well as Reuters.
and other seminars, forums and conferences designed to educate new comers.
1997 to specialise in what is now a core area of
The FFA markets are cleared by LCH.
the companies operations. Since then we have
Clearnet, NOS CME and SGX. SSY are able to
We have recently added Iron Ore to our
consistently been at the cutting edge of this fast-
advise you on all aspects of clearing, including
broking services, with dedicated brokers in
developing market and our original client base
introducing you to the leading clearing brokers
London and Hong Kong, as well as SGX cleared
of freight market participants has expanded to
and assisting in the account opening process.
Iron Ore prices on our screen.
reflect the FFAs status as a complex derivative.
We
recognise
how
important
market
We provide expert advice for the full range
intelligence and research are to our clients and
Please feel free to contact us for more
of FFA market participants including; shipowner/
we provide this through our highly respected
information:
operators, charterers, finance houses, banks
research Department. This is responsible for
SSY Futures Ltd
and hedge funds; in short anyone with freight
producing the company’s Monthly Shipping
Lloyds Chambers
exposure or a view to manage. As well as our
Review and numerous other publications. As
1 Portsoken Street
London office we have FFA broking services
well as these regular in-house assignments, we
London E1 8PH
through our Hong Kong offices.
also undertake bespoke consultancy projects as
Tel:+44 (0) 20 7977 7597
commissioned by specific clients.
Fax: +44 (0) 207 7488 1925
Screen trading is an integral part of our strategy. Having pioneered the use of screens in
Finally, SSY are committed to enhancing the
E-mail: futures@ssy.co.uk
BI Norwegian School of Management 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)
level
gave its approval on the 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
Its professional strength and relevance makes
schools of a total of over 4,000 such colleges
students. Special MBA programme in China in
BI Norwegian School of Management a leading
in the world (one of 35 in Europe) in the “Top
collaboration with Fudan University School of
business college in Europe.
Business School Worldwide 2008” survey. We
Management. Chief owners of the ISM University
are amongst the 65 best suppliers of tailor-made
of Economics and Management in Lithuania
Values
in-house programmes in the world and provide
with 2,000 students. Strategic collaboration with
BI takes quality and independence as the
the 117th best MBA programme in the world
Nanyang University of Technology in Singapore,
basis for its optimum research, education
(2008) according to the Financial Times.
ESCP/EAP European School of Management
within
management,
administration,
economics and marketing.
entire
world,
and
many
exchange
in Paris, 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
For more information, please contact:
school, which is future orientated, research
environments within the core areas of financial
Nydalsveien 37, 0484 Oslo
based, business focused, and international.
economics, strategic management, marketing,
Tel: +47 81 00 05 00
We conduct our work with quality, integrity,
leadership and organisation, and innovation
E-mail: study@bi.no
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
aware of ethical dilemmas and challenges, and
and further education, Internet studies, tailor-
take personal responsibility for handling these.
made in-house programmes, and management
theBaltic September 2010 www.thebaltic.com
107
Commercial profiles
LCH.Clearnet Ltd The world’s leading independent clearing house
O
The benefits to trading parties are clear:
market, legal and liquidity risk, we ensure that
asset classes than anyone else globally, both
• Significantly reduced counterparty risk
margin cover is set at appropriate levels.
exchange traded and over the counter (OTC).
• Increased trading opportunities
• Uniquely, we have over 10 years’ experience
• Ability to net-off long and short positions,
ur experience as a clearing house goes back over a century, and today we clear more
of clearing OTC • We are the No. 1 clearing house for FFAs, with over 80% of the cleared dry market
leading to:
By
constantly
evaluating
counterparty,
Driving all our risk management activities is a dedicated team of over 50 risk managers, who share a wealth of experience and a convincing
• Reduced costs of trading
record of successfully managed defaults – both
• Enhanced liquidity
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 withinthe 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
108
theBaltic September 2010 www.thebaltic.com
Events
What’s on where A round-up of conferences, exhibitions and events in the shipping world
September 12-24
Cambridge
October 6-7
London
November 4
Anatomy of Shipping
Dry Bulk Shipping Conference 2010
Korea Ship Finance Forum
For those needing the big picture, whether
Brings together a distinguished panel of experts
www.marine-money.com
through changing roles, entering the industry for
to analyse market drivers and assess demand
the first time or as a refresher
and supply fundamentals in the dry bulk
November 9
www.seatrade-global.com
shipping sector
Marine Finance - Americas
www.informaglobalevents.com
www.marine-money.com
September 16
Shanghai
Busan
New York
maritimecustserv@informa.com November 16-17
Baltic Exchange/FFABA Global Freight October 11-12
The freight derivatives industry’s key gathering
Managing Carbon Emissions and GHGs
Investment
www.balticexchange.com/shanghai2010
in Shipping
With a spotlight on key bank ship finance issues
www.informaglobalevents.com
this programme examines the impact of new
maritimecustserv@informa.com
banking regulations on bank lending, whether
September 16
Rio de Janeiro
London
London
Derivatives Forum
International Ship Finance &
Asian finance is a good thing or a bad thing and
Latin America Ship & Offshore Finance Forum
October 17-19
Amsterdam
www.marinemoney.com
Coaltrans World Coal Conference
prospects for bank ship finance in 2011. www.lloydslistevents.com
Europe’s leading coal industry gathering September 20-24
November 23-24
Stamford October 26-28
www.ibia.net
Seatrade Middle East Maritime
This event is designed for senior supply chain
ibia@ibia.net
Including ‘Middle East Money & Ships’
managers and professionals. Delegates will
www.seatrade-middleeast.com
obtain practical information on markets,
September 24-25
Dubai
Antwerp
IBIA Convention
Chemical Supply Chain
operations and regulatory developments that
Mumbai
India Shipping Summit
October 27-29
A forum to address the most topical issues
SIBCON
affecting India’s shipping industry
www.sibconsingapore.com
www.indiashippingsummit.com
ruohyi.tham@ibcasia.com.sg
Singapore
affect the door to door chemical supply chain www.navigateevents.com November 22-25
London
Practical Dry Cargo Chartering September 28-29
Singapore
November 1-2
London
Four-day hands-on training course run by the
Marine Money Asia
Freight Derivatives and Shipping Risk
Baltic Exchange and Cambridge Academy
www.marinemoney.com
Management
www.balticexchange.com/training
Managing freight, bunker, interest and October 6 Greek Shipping Summit
Athens
counterparty risk www.balticexchange.com/training
www.greekshippingsummit.com November 3-4
London
Advanced Freight Modelling and Trading Trading strategies for FFA players www.balticexchange.com/training
theBaltic June 2010 www.thebaltic.com
www.imarex.com
Managing your counterparty risk NOS Clearing is the specialized clearing house for the freight industry. We are providing flexible solutions and products, first-class customer service and quick responses to customer and market needs. Clearing at NOS eliminates counterparty risk in derivatives trading and ensures you prompt and full payment of all amounts due under all contracts. NOS is established by the industry for the industry. Our innovative service, brought to you by our customer service teams and IT systems, will support, simplify and improve risk management functions, book keeping and back office activities. Offering a full range of derivatives contracts in all market segments, NOS offers both standardized and tailor-made futures and options for the dry and tanker market. These products create unique possibilities to effectively manage risk, through trading on exchanges as well as through OTC brokers. You may access our clearing services via a Direct Membership or via the global General Clearing Members.
Contact us today at: Tel: +47 23 25 93 01 Email: operations@nosclearing.com www.nosclearing.com