the Baltic
the Baltex nears start line
S P R ING 2 0 1 1 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
SPRING 2011
the
BALTIC The Baltic is the official magazine of the Baltic Exchange Tel: +44 (0) 20 7623 5501 E-mail: enquiries@balticexchange.com Website: www.balticexchange.com The Baltic is published for the Baltic Exchange by Maritime Media Ltd The Diary House, Rickett Street London SW6 1RU Tel: +44 (0) 20 7386 6100 Fax: +44 (0) 20 7381 8890 E-mail: inbox@mar-media.com The Baltic annual subscription rates £110 for UK, Europe or the world, sent airmail including P&P
Publisher
W H Robinson editor
Sandra Speares Tel: +44 (0) 20 7386 6120 E-mail: sandra.speares@mar-media.com
SALES manager
David Scott E-mail: david.scott@mar-media.com
DESIGNER
Justin Ives
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 expressly stated to be such. The Baltic Exchange is the world’s premier and oldest international shipping market. Most of the world’s open market bulk cargo chartering is negotiated at some stage by Baltic members who represent leading international companies. Other activities include the world’s most important market for buying and selling ships, specialist freight by air and commodity dealing. The Baltic Exchange operates a strict code of business ethics encapsulated in its motto ‘Our Word Our Bond’. The Baltic Exchange disclaims any responsibility for the advertisements contained in this magazine and has no legal responsibility to deal with them. The responsibility rests solely with the publisher.
theBaltic Spring 2011 www.thebaltic.com
1
Contents Chairman’s message 7 Mark Jackson Baltic briefing 7
8
Baltex nears start line
10 Chinese shipping exchanges 13 Celebrating 100 years of success 14 View from above
8
15 Prestigious RNLI award for Baltic Exchange lifeboat volunteers 16 South African wine 18 Sadly departed 19 Contacts Logbook
14
20 Champion Tyne tanker builder
Industry News 22 People, places, plcs
15
Baltic Comment 25 Michael Grey
State of the market 27 Tanker 27
29 S&P 30 Charterparty 32 Dry Bulk 35 Heavy lift 47 Towage & salvage
35
51 Shipmanagement, crewing and employment theBaltic Spring 2011 www.thebaltic.com
3
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Contents Environment 52 Green shipping Oxford Analytica 52
60 Fraud raises the bar for business FFA 62 News round-up Surveyors and Consultants
  62
65 Fit for purpose Maritime Security 69 The economic cost of piracy Software
  69
76 Pilots, ports and pirates 77 Solutions for a challenging economy Shipbuilding/Repair 79 The past catches up? Geographical focus
76
81 Northern Europe Insurance 87 Insurance parlance 89 ITIC
87
Legal news 90 Legally speaking Geographical focus 91 Canada
90
104 Events theBaltic Spring 2011 www.thebaltic.com
5
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Chairman’s message Mark Jackson
Chairman’s message unless they are trading through
of discussion, research, develop-
an organised central market.
ment and compromises, the Baltic
Reporting these exposures
Exchange is set to launch Baltex,
requires a company to make
a centralised screen solution for the dry bulk
substantial
FFA market. This is an important step forward
tools and staff. For many, this
investments
in
for both the market and the Baltic Exchange
will simply not be viable and
itself, putting us firmly at the centre of the future
they would be required to
development of a vital market which I believe
reduce or stop their activities in
is here to stay. Many shipping companies view
the freight derivatives market.
the trading of freight derivative products as an
Against this backdrop, I
integral part of their daily business and see the
believe that the Baltex system
introduction of a Baltic Exchange-run trading
is probably the least bad option
system for the dry derivatives market place as
for the 21st century FFA broker.
positive development. If this market is going to
Baltex has been designed to
increase the numbers of new players trading
enable the broker to act on
freight derivatives, bring in more financial institu-
behalf of his or her client, input
tions, improve liquidity and transparency as well
their trades, use the screen to
as face up to the stringent legislation governing
help interpret the market and
the trading of derivatives coming down the line,
advise on the best approach
then it is going to need a central trading venue
to trading and to offer straight
which is accepted by all. The Baltic Exchange is
through processing to clearing.
the neutral heart of the shipping world and the
Principals can nominate their
natural home for the FFA screen.
broker to enlist their support in
Tradewinds
A
fter a long road involving many months
Mark Jackson
The development of the Baltex system has
getting the trade executed and for commission
FFAs. Keeping the Baltic indices at the heart of
not been without its critics. Some shipbroker
purposes. The role of the broker is to add value
both the physical and derivative markets ensures
members, especially those pioneers who have
and they will continue to do this by bringing
they work together properly. This is one good
worked hard to develop this market and helped
together buyers and sellers and making trades
reason for our investment in Baltex. If the FFA
make it what it is today, are worried about
happen. The FFA market is not just about
market migrated to other venues,the long-term
losing market share to a screen. We believe that
trading the panamax 4TC average, but creating
risk is that the indices become purely financial
change in the FFA market is coming and that the
innovative ideas and sophisticated trades. If the
in nature, no longer properly grounded in the
role of the freight derivatives broker is already
market evolves in the way in which we all hope,
real shipping business and therefore no longer
evolving with or without Baltex. If the Baltic
then there will be plenty of business for all.
serving the needs of our members in both the
Exchange doesn’t offer an electronic solution,
Of course not all of the Baltic’s 590 member
physical and derivatives markets. Owning and
then a third party with no direct interest in the
firms are currently directly involved with the dry
running a successful trading screen will be good
shipping market will simply step into this space.
FFA market and some have raised eyebrows
news overall for our members. We anticipate
Many principals are being pressed internally to
at the Baltic’s focus on what they see as a
rapid take-up of the screen and expect to
move trading to regulated venues. Principals
niche area of business, but I remind you that
see an appropriate financial return. Freight
need this system, not because they are driven
the Baltic indices are not only used by the FFA
derivatives play a role in an increasing number
by a desire to cut down brokers’ commissions,
market; they are widely used by the physical
of companies’ risk management strategies, and
but because in the not too distant future they
market as a pricing mechanism in contracts
it is important that the Baltic Exchange continues
will be required to report their exposures above
and period charters, a process which reduces
to innovate as we have done throughout our
a certain threshold to the financial authorities
credit risk and in turn facilitates hedging using
history.
theBaltic Spring 2011 www.thebaltic.com
7
Baltic Briefing
Baltex nears start line
“This is an exciting move for the Baltic Exchange and one which will both benefit our members and attract new entrants to the FFA market”
T
he Baltic Exchange’s centralised screen
Toepfer and Navios, the screen will provide
Jeremy Penn. “Discussions surrounding a
for the dry cargo freight derivative
what is currently a fragmented market with a
central Baltic Exchange screen concept have
industry is set to go live this Easter,
consolidated view of all public dry FFA trading
been going on since 2007 and I am pleased
following 12 months of development.
and increase confidence that trades are being
that we have devised a solution which not only
executed at the best possible price.
meets the needs of principals looking for a better
Baltex is an industry-endorsed screen trading system developed in conjunction with soft-
Monitored by a Baltex compliance team in
ware house Elysian Systems. It is designed to
London and regulated by the UK’s Financial
increase liquidity in easily traded standardised
Services Authority as a Multilateral Trading
dry Forward Freight Agreement (FFA) contracts
Facility, the Baltex screen will support straight
as well as meet the growing regulatory scrutiny
through processing to the international clearing
being placed on the freight derivatives market.
houses CME, LCH, NOS and SGX. The market
The screen will enable live FFA prices to be
will be open every working day between 07.30
seen, hit and lifted by Baltex members with the
and 18.00 (London).
traders’ identity kept anonymous to all except
“This is an exciting move for the Baltic
the nominated broker. Already endorsed by
Exchange and one which will both benefit our
over 20 of the market’s biggest traders of dry
members and attract new entrants to the FFA
Robin King (marketing manager) and Paul
freight derivatives, including Cargill, BHP Billiton,
market,” said Baltic Exchange chief executive
Stewart-Smith (chief operating officer)
8
theBaltic Spring 2011 www.thebaltic.com
Baltic Briefing and more transparent way of trading FFAs, but also recognises the crucial role of the broker in shaping this market.” He added: “A successful Baltic Exchangerun FFA trading venue is clearly in the interests of our members and is the best way of ensuring that the freight derivative market can continue to flourish and deal with greater regulatory attention. The planned revision of the European Union’s MiFID directive and the potential impact of the USA’s Dodd Frank Act will make it likely that major FFA traders will be required to make substantial investments to satisfy reporting requirements to the authorities or trade on an organised exchange such as Baltex. This is a solution to this very pressing problem.” The technology behind the Baltex system has already been used in the North American gas and power markets as well as for trading bonds and index options, and is based on a simple downloaded application which can be used to interface directly with in-house systems. Companies’ risk management departments are able to use a view only version of the screen and download trades to monitor trading activity. The connection is secured with an end to end connection over an IP network. The screen layout itself is versatile and designed to be set up by the users to best meet their own needs.
“A successful Baltic Exchange-run FFA trading venue is clearly in the interests of our members and is the best way of ensuring that the freight derivative market can continue to flourish and face greater regulatory overview”
A key feature of the Baltex system is its ability to offer full integration with every single clearing sophisticated trading strategies.
house which currently offers freight derivative
customer trades and input their orders. All
clearing services. Each clearing house has its
members of the FFA Brokers’ Association are
The cost of trading will initially be $10
own credit filter system based on margins or
eligible to join Baltex. Traders can nominate
per lot for executed trades with discounts for
lots, which enable trade limits to be easily set.
brokers on individual trades or can set up a
regular screen traders under the Volume Credit
Trades that immediately pass the credit filter
default broker. Traders are also able to allow
Scheme.
are assigned a pending status, whilst instant
a broker to input prices on their behalf or
The Baltex trading screen is owned by Baltic
contact is made by a Baltex team member with
work prices assigned to them. As well as
Exchange Derivatives Trading Ltd, which is
the clearing member for approval.
inputting orders on behalf of clients, brokers
itself wholly owned by the Baltic Exchange. The
The broker friendly system has also been
will also be able to monitor the screen and
company is chaired by Baltic Exchange vice-
designed to enable brokers to easily facilitate
use the information to advise clients on more
chairman Paul Over. To arrange a demonstration of the system, please contact Robin King. E-mail: rking@balticexchange.com
Executive Team:
Tel: +44 (0)20 7369 1637 Baltex Derivatives Trading Limited
Chairman:
Chief Operating Officer Paul Stewart-Smith
Paul Over
Executive Directors: Market Surveillance Team Manager Karina Albers
Monitoring & Compliance
Jeremy Penn (Baltic Exchange Chief Executive)
Market & Sales Marketing Manager Robin King
Monitoring & Compliance
Duncan Bain (Baltic Exchange Head of Finance ) Andrew Francis (Baltic Exchange Board Member)
Monitoring & Compliance
Independent Non-Executive Directors: John Foyle (ex LIFFE director and deputy CEO 1999-2009) Nigel Tipple
theBaltic Spring 2011 www.thebaltic.com
9
Baltic Briefing
Chinese shipping exchanges The Baltic looks at the rise of Chinese shipping exchanges and examines their growing role in the domestic Chinese S&P market
L
ast year saw the establishment of three
According to Xunny Huang, deputy general
new shipping exchanges in China, dou-
manager of Fujian Bafang Ship Exchange Centre,
Shipbrokers do not currently play a role in
bling the tally of Chinese exchanges cur-
China flag S&P activities used to happen directly
domestic Chinese S&P transactions, despite
commissions as well as service charges.”
rently serving the shipping industry. Almost
between shipowners, with no shipbroker or third
the fact that, according to Liu Xunliang,
every Chinese coastal province now plays host to
party involvement. However, “the unorganised
secretary-general of the Shanghai Shipbrokers’
a shipping exchange, with the cities of Qingdao,
nature of the market led to rampant frauds
Association: “Traditionally the supply of market
Fuzhon and Zhoushan housing exchanges which
and disputes which were hard to solve. The
information falls in the domain of shipbrokers’
specialise in China flag second-hand vessel sale
establishment of the ship exchange market is
services. Also shipbrokers usually carry out
and purchase activities. In addition Chongding,
a measure to develop a healthy domestic S&P
ship valuation. But under the regulation, ship
located further inland specialises in Yangtse
market”.
valuation needs to be undertaken by the exchange markets.”
River ships. Shanghai is home to the Shanghai Shipping Exchange which also provides container and coastal bulk indices. Whilst the Shanghai
Growing market share
Shipping Exchange, founded in 1996 and itself
The business transacted by these Chinese
Limited role for brokers
a member of the Baltic Exchange, is probably
exchanges has grown year on year. According
Whilst most international shipbrokers are not
best known to readers of The Baltic, it was the
to Gong Yinjiao, chairman and general manager
involved in broking services for China flag
Zhejiang Shipping Exchange which was first
of the Zhejiang Shipping Exchange Market,
transactions, Gong Yinjiao of Zhejiang Shipping
established in 1998 and is today the largest
the exchange is now transacting 40 times
Exchange argues that the domestic shipbrokers
second-hand exchange in China.
the levels it was handling in 1998 and five
only have themselves to blame for the rise of
According to the latest statistics released
times the volumes in 2003. He says that
the exchanges. “It is fair to say that currently
by the Zhejiang Shipping Exchange, it was
the exchange handles China flag second-
the domestic shipbroker profession is very
responsible for the transaction of 1,455 vessels
hand vessels between 1,000 and 30,000 dwt
underdeveloped and unprofessional. In a sense,
worth a total of circa $750 million in 2010.
including bulkers, container vessels, chemical
the ship exchange market is charged with the
Zhejiang Shipping Exchange joined the Baltic
tankers, passenger vessels and fishing boats.
responsibility to normalise the development of
Exchange in 2010.
Whilst Zhejiang is currently only involved with
domestic shipbrokers. We offer an information
Currently, the exchanges do not handle
the domestic second-hand market, Yinjiao says
platform for the brokers where they can post
international transactions, but were set up as a
he is “keeping a close eye on the newbuilding
their supply and demand information; we also
result of regulations implemented by the Chinese
market and is considering building a trading
evaluate these brokers to maintain an organised
Ministry of Transport to combat rampant fraud in
platform for small and middle sized shipyards
market. The brokers that are using our platform
the Chinese domestic S&P market. According
and shipowners.”
are domestically registered shipbroking firms or
to Fairplay IHS, there are currently 2858 Chinese
This sentiment is echoed by the Fujian
flagged vessels over 1K dwt. The exchange
Bafang Ship Exchange Centre, which also
market lends credibility to both sides of the
hopes to expand into the newbuilding market.
individual brokers.” Certainly the Chinese government seems firmly behind the role played by these exchanges
transaction by handling technical inspections,
However, observers fear that with every
and the benefits they bring to the market.
processing legal documents and invoicing on
coastal province establishing a ship exchange
Li Shenglin, the Chinese transport minister
behalf of the government. Under the model,
market, and some even looking at establishing
and other senior officials have inspected
the Chinese exchanges supply the buyer with
more, the market could become fragmented.
the Zhejiang Ship Exchange on numerous
a standard invoice with which the buyer can
They also note the tension between shipbrokers
occasions and praised its services. It will be
then register the change of ownership and other
and some of these exchanges. Speaking to The
interesting to see whether or not the remit of
changes with the relevant government agencies.
Baltic, one Chinese shipbroker noted: “I know
these exchanges expands.
0.3% of the transaction value is usually charged
of some exchange markets that have internal
as a service fee.
staff acting as shipbrokers, thus they profit from
10
theBaltic Spring 2011 www.thebaltic.com
Baltic Briefing Year
Name
Services
established
Zhejiang Shipping Exchange Market
1998
Shanghai Shipping Exchange
1996
Dalian Shipping Exchange
2011(E)
Tianjin International Shipping Services Center Qingdao Shipping Exchange Market
2005 2010
S&P service and registration Container and coastal bulk index, S&P service and registration etc
Note Baltic Exchange member Baltic Exchange member
S&P service and registration
To be established
Miscellaneous services; North China container
Will be restructured to be Tianjin
and bulk index
Shipping Exchange
S&P service and registration
Chongqing Shipping Exchange
2010
Planned: S&P service and registration
Inland shipping
Fujian Bafang Shipping Exchange Center
2010
S&P service and registration
Newly established
Young Baltic Shanghai event D of
ecember saw the
launch
an
inaugural
Shanghai event for the Chinese shipbroking community. Although still in its early days, it is hoped that this will be the first of many more Young Baltic Shanghai events.
theBaltic Spring 2011 www.thebaltic.com
11
Baltic Briefing
Freight Derivative Forum – London 9 June
Freight derivative training courses O
ver 150 people attended the Baltic Exchange’s various freight derivative train-
Dealing with disputes T
he Baltic Exchange’s dispute resolution service recovered over $600,000 on behalf of
members in 2010. Headed by Barrie Wooderson, a member of the Baltic’s freight market team, the service is designed to bring pressure to bear on non-members to pay monies owed to members. These might include unpaid commissions, unhonoured arbitration awards and a range of
ing courses in 2010. Held in London, Singapore
P
layers from across the dry FFA market will
other disputes. The ultimate sanction applied
once again have the opportunity to discuss
by the Baltic to non-members is ‘posting’ on
the issues of the day and network at the Baltic/
the Baltic website. Any company which, despite
Led by Prof Nikos Nomikos and Dr Amir
FFA Brokers’ Association Dry Freight Derivative
vigorous effort made by the Baltic to resolve the
Alizadeh of Cass Business School, the two-day
Forum on 9 June. This year the event takes
dispute and recover the monies, still has not
courses (Freight Derivatives & Shipping Risk
place at the Royal Garden Hotel, London. Details
paid the Baltic Exchange member, is listed in the
Management and Advanced Freight Modelling
are still to be finalised, but the forum will as usual
members’ password protected area of www.
& Trading) cover both the fundamentals as well
consist of a day of meetings and presentations
balticexchange.com. Members should check
as more advanced issues such as value at risk,
followed by dinner. A limited range of sponsor-
the companies listed in this section of the web-
options pricing and developing an integrated risk
ship opportunities are available.
site before fixing with an unfamiliar counterparty.
management strategy. The courses cover both
For further details contact Robin King.
For further details please contact Barrie
the dry and tanker markets and are delivered
Tel: +44 (0)20 7369 1637
Wooderson.
in a classroom style with a comprehensive set
E-mail: rking@balticexchange.com
E-mail: bwooderson@balticexchange.com
and New York, the courses are designed for both new entrants to the market and more experienced traders and brokers.
of notes provided. Attendees are issued with a certificate upon successful completion.
Meet at the Baltic
For 2011 dates and full course details see www.balticexchange.com/training
Chairman’s
Cocktail Party
R
eserve a table and enjoy lunch at the Baltic Exchange’s recently refurbished dining room. The Baltic Exchange’s dining room offers members and their guests a range of good quality dishes
and a fine selection of wines at reasonable prices. The dining room is run by catering and wine specialists Balls Brothers and is the perfect location for a business lunch in the heart of the City of London. Also available at the Baltic Exchange is a bar, open all day until 16.00, with extended evening openings on Thursdays. Members can also benefit from discounted rates on room hire at the Baltic
T
his year’s Baltic Exchange Chairman’s
Exchange. Facilities include a mahogany panelled boardroom, conference rooms which can seat up
Cocktail Party takes place on 18 May in
to 80, and smaller meeting rooms.
London. As in previous years, the event will be held at Christchurch, Spitalfields. The evening is
To book a table at the restaurant Tel: +44 (0)20 7369 1600
always popular with members and their guests,
To arrange a viewing of the meeting facilities Tel: +44 (0)20 7369 1654
so please reserve your place quickly to avoid disappointment. Tickets, priced at £35 are now available from Crispin Eccleston. E-mail: ceccleston@balticexchange.com
The Chairman’s Cocktail Party is always a big draw for Baltic members
12
Recently refurbished dining room
theBaltic Spring 2011 www.thebaltic.com
Baltic Briefing
Celebrating 100
years of success
ely things s of such unlik stowage factor er mb ther with me ge re to to s ld ate g ‘…we were to d Rock Phosph Rice an In the beginnin Fairplay, attracted support, not only from oon Stone,much M d, oo Bl ’s agon of as Blue Bill, Dr ce the Institute and agents,e but also from a number ars sin ’ red ye hers.shipbrokers owess, d in th hund pr ge many, many ot e an til ch an s rc ha in me ping world ve been shipowners philanthropists e haand in the How the ship of prominent hat shifts ther at was familiar kers began. W ipbroassociated design. All th ip sh d an g with the industry. Chartered Sh gineering and turin en fac of nu ts ma fea s of , seats d a – marvellou types of trade rdian erof shipowners an Edwa And so’s the Institute Shipbrokersl was trampformed itain stry in Br ly and resourcefu on e at tiv th va shipping indu s no em in se . It s of mberas large in nu 1911 a membership ies – has alteredopen to ofessionanorganisation shipbuilding, facturing comp still pr tion and manu in: but there is ucshipbrokers ma od re pr s l cle rfu cy we and ship agents. It was granted ic po om on ec of ity e inevitabil clined the sea and th a Royal Charter in 1920 and, as the uilders has de shipbInstitute ipowners and ofessh pr of e e alism. th nc of ue d strengthfull number and infl Shipbrokers achieved calibre an e (ICS), Although theof Chartered read its meslast century, th sp e d th an g d rin se du ea Britain y has incr responsible shipagents. dustrauthority status e in“the alarmingly in professional ritimas and ma e shipbrokers derpin the UK sionals arand es of sionals who un to the world pr e t it is their exes th for the character ability” ofyeits ong stry: du Am . in e be th glo de e tsi ou le op pe sage across th st e is hardly a d by mo the criteria for n by sea. Ther members. membership rtatio tle understooInitially, ent hasn’t Their role is lit ation of transpo ag er op an th at th oo ip sm sh , or aknowledge sures the forand experience nd a ship in fou pertise that en was a candidate’s ’t sn ha r at a shipbroke e commodity th of the industry, but by the mid 1920sof new ofessionals, th mmunity pr and create a co met. me ‘the authards co nd be sta uld ise wo ra it generations of members qualified through to r that Formed in 1911 in 1920 in orde ers. With its Royal Charter ty’ of its memb anted aexaminations. written acter and abili ar ch Institute was gr ard bearer e th nd r sta fo e ly become th le to the world ’, it has du ority responsib The story r Bo of rd ICS setndagainst the background ouis wo ur ‘O of motto all important be. the shipping industry where of nthe ss the gloof acrohistory of the professio
many radical changes have ory. place in its sttaken
This book is
the last 100 years in ship design and size,
Sohmen
by Dr Helmut ewordproliferation logistics, mechanisation and -02-2). t. Forthe N 978-0-901772 our throughou
ffer o n o i t a c i l b u p Pre-
full col softback (ISB , 100 pictures, 772-01-5) and 128 978-0-901and of ppregulations for security at sea. (ISBNsafety ition hardback ble in limited ed
Availa
Tally clerks and dockers have given wayt Jan touary 2011). Prices
er open until 31s £25 per copy (off trading floors container-pucounters blication priceand cranes; Softback: Pre per copy. £30 ce pri n ublicatio Post-p and the BOE codeperhave copy. been replaced by al edition £40 Hardback: Speci . computers and mobile telephones. The ICS ase apply ies: ple 20 or more cop bulk orders of Prices forto . £50 ce has adapted all this accordingly, altering its Retail pri or to packing costs eas postage an syllabus as necessary and itsd reach overswidening for e, fre is ng cki d pa um@ics.org.uk eg a.b t: UK postage an tac con asetime ers ple globally: through this it has continued to place ordall
educate new generations to a high standard. In celebrating its centenary with a Gala Dinner on As Helmut Sohmen remarks in his foreword to this book, broking
26 May and the publication of its history, ICS looks forward to the next hundred years.
is a very ancient activity. Brokers based in
Quality Ashore: A history of the Institute of
here are more pieces to the mari-
the City of London had to be licensed from
Chartered Shipbrokers, 128 pp, 100 pictures,
time jigsaw than have so far met the
the end of the thirteenth century, promising
full colour throughout. Foreword by Dr Helmut
layman`s eye. So says Stephanie
to abide by certain rules and behave in an
Sohmen.
Zarach in Quality Ashore: a history of
honourable fashion. This remained the case
Available in limited edition hardback ISBN
the Institute of Chartered Shipbrokers, pub-
until 1888, when the system was condemned
978-0-901772-01-5 £40) and softback (ISBN
lished to celebrate the institute’s centenary. She
for obstructing business, but after a couple of
978-0-901772-02-2). Orders and information
remarks upon the fact that most people outside
decades without any licence, there was some
from a.begum@ics.org.uk.
the maritime industry (and even some within it)
unease among shipbrokers about the growth of
T
know little about the support system on which
‘dubious practices’. David G Pinkney, shipbroker
For information on the Centenary Gala
the maritime industry relies. Shipbrokers and
and long time member of the Baltic Exchange,
Dinner, contact Jonathan C. Williams FICS,
ship agents underpin the industry with their wide
conceived the idea of a professional institute to
London Branch chairman.
knowledge and expertise and this is the story of
regulate and improve standards of brokers and
Tel: + 44 (0)20 7623 3113
their professional body.
agents. His initiative, launched in the columns of
E-mail: generalmanager@fonasba.com
theBaltic Spring 2011 www.thebaltic.com
13
Baltic Briefing
View from above Baltic Air Charter Association chairman Dick Gilbert looks at air safety
2
010 was a very good year for air safety. The USA boasted its third year out of four without a single airline fatality. A regional airliner crash near Buffalo in
February 2009 which killed 50 people was the only event to break an otherwise perfect record dating back to August 2006. Meanwhile, researchers at the Massachusetts Institute of Technology compiled figures in which they divide us all into First World and, presumably, everyone else. On their criteria, the entire First World was, for the first time ever, completely free
There is an overall trend to safer skies
of airline fatalities in 2010, despite one or two
Just looking at the US environment (by
narrow escapes, such as the alarming failure of
far the busiest skies in the world) 700 million
accidents, whereas a staggering 44,000 people
the engine on the Qantas Airbus A380 flying out
passengers flew on 10 million flights last year,
died in road accidents in the same period.
of Singapore in November.
but only 14 people were seriously injured as
In a publication such as this, one has to ask
The loss of a Polish Air Force airliner in
a result; and, according to airline review body
about sea travel. This mode of transport throws
Smolensk in April 2010, killing all 96 government
Skytrax, the top six safest world airlines in
up its own unique issues, such as the risk of
officials on board, doesn’t feature in this statistic;
the 20-year period from 1981 to 2000 were
piracy, or the chances of picking up a nasty virus
perhaps that’s because MIT didn’t consider
all in the Middle East, Far East and India. For
on a cruise. Since one can’t really compare that
either Poland or Russia to be ‘developed
the record, those airlines were Asiana, Cathay
with the other options, I wouldn’t dare to guess
countries’, but more likely (to be generous to the
Pacific, Kingfisher Airlines, Malaysia Airlines,
the answer. But as ships can’t offer many of the
college) because it was operated by the military,
Qatar Airways and Singapore Airlines.
route options available to airline passengers, it’s
and therefore doesn’t technically count as a
It would be interesting to know how those
not really possible to compare the two.
nations fit into MIT’s assessment of First World
Overall it’s an incontrovertible fact that air
An MIT spokesman said that “in the entire
air safety. You may now be wondering which
travel is very safe, and getting ever better.
First World, fatal crashes are at the brink of
airlines were at the other end of the list, but it
Passengers can feel confident that, while plying
extinction”. It would be a delight to think so, but
would be inappropriate of me to mention them!
the world’s air routes, an army of earnest experts
civilian airline incident.
aviation is a high-tech business which cannot
So how safe is airline travel? That depends
afford to take its eye off the ball for a moment.
on so many factors (region, type of flight, period
The recent tragedy at Cork, Ireland brings this
of assessment, based on miles flown or flights
home to us with a sledgehammer blow.
operated, and so on) that there is no simple
Despite that, there is an overall trend towards
answer to the question. But in the USA it is
safer skies. US average annual airline fatalities
normally accepted that (for the same distance
have halved in the last decade. There is a
travelled), trains are safest, then airlines, and
constant and determined policy in the aviation
then road journeys a massive 15 times more
industry to learn from incidents, and eliminate
dangerous than that.
problems, whether technical or related to
Air travel is getting steadily safer worldwide,
human input. No accident has a single simple
and road transport is failing to do the same.
cause, and lessons are continuously learned to
The most common causes of road accidents
improve safety. All people involved with building,
are speed, mobile phones and alcohol, all of
maintaining and operating aircraft understand
which have been eliminated from airline practice.
this, probably better than any other industry.
Nobody died in the USA in 2007 in airline
14
theBaltic Spring 2011 www.thebaltic.com
are determined that you will land smoothly with a smile on your face. BACA represents the interests of commercial aviation companies particularly in the aircharter industries and markets. Membership is around 150 companies, including airbrokers, charter airlines, airports, business aircraft operators, freight forwarders, consultants and others. See www.baca.org.uk for further details.
Baltic Briefing
Prestigious RNLI award for Baltic Exchange lifeboat volunteers
T
wo RNLI crew members, aboard the
launched to the fishing vessel Sasha Emiel, 23
crew had to make some difficult decisions but
Baltic Exchange III, the Salcombe
nautical miles out to sea. A crewman on the boat
ultimately helped to save the casualty’s life.
based and Baltic Exchange funded
had suffered an injury to his leg, was bleeding
Tamar class all-weather lifeboat, have
badly and was in considerable pain.
“In ideal circumstances a venal bleed would normally be treated with direct pressure, and
been awarded special recognition for their life
Three RNLI volunteers, Iain Dundas, Adam
use of a tourniquet reserved for arterial bleeds.
saving actions during an incident last May. Crew
Lilley and Cameron Sims-Sterling, were put
However, the scene presented to the lifeboat
members Iain Dundas and Adam Lilley were
onboard the fishing boat, with a first aid kit,
crew was far from ideal. The casualty had lost
put aboard a fishing boat to provide vital casu-
oxygen and a pain relieving gas. The fishing
a lot of blood and a rope had been applied,
alty care to a badly wounded fisherman. They
boat crewman, who spoke very little English,
which may have been causing tissue damage.
have received the RNLI’s Framed Certificates
had lost a lot of blood and was drifting in and
Iain Dundas and Adam Lilley acted quickly and
of Appreciation for First Aid for their quick and
out of consciousness. The RNLI crew members’
decisively in difficult circumstances and their
decisive actions administered to the casualty in
quick actions saved the man’s life before he was
actions certainly prevented the situation from
difficult conditions.
airlifted to Plymouth.
deteriorating and may have saved the casualty’s
The incident happened on 16 May 2010 when the crew of the Baltic Exchange III were
Tom
Mansell,
RNLI
training
divisional
inspector for the south west, says the Salcombe
life. They justly deserve their Framed Certificates of First Aid.”
Left to right Cameron Sims-Sterling, Adam Lilley, Iain Dundas
theBaltic Spring 2011 www.thebaltic.com
15
Baltic Briefing
South African wine Despite histories of troubles, the Rainbow Nation’s wine-makers should look to the future with an optimistic smile. David Hughes reports
W
hen a ship of the Dutch East
And further problems were afoot. The
India Company dropped anchor
country’s system of apartheid brought world
in the harbour of what we now
boycott and the wine industry stagnated.
call Cape Town, stepping ashore
However, with the ending of apartheid, the early
to undertake his mission, little did Jan van
1990’s saw the world ready to embrace South
Riebeeck realise what he was setting in place.
Africa again. The world’s markets opened up
That mission was to plant vines to produce
and South Africa’s wine producers seized the
grapes and wine to counter scurvy amongst
moment, adopting new technology in both the
the Company’s seamen who plied the spice
vineyard and the winery; also the introduction of
routes. Those plantings were in Constantia, the
the classical European varieties. KWV converted
first grapes being crushed in the April of 1652
to a private business, allowing other wineries
and it didn’t take long for Constantia to earn
freedom to experiment and improve production
a high reputation throughout Europe, particu-
in the face of neighbourly competition.
larly for its dessert wines where even today Klein Constantia’s Vin de Constance (£22 for a 50cl bottle) has the wine buffs drooling.
The Main Regions Geographically, the wine-lands spread from South Africa’s coastal centre at False Bay
Problems, problems
west and east, and upwards to the Langeberg
British rule of the wine-lands saw massive export
mountains. They include historic and beautiful
of wine to Britain; 1859 saw more than a million
Constantia, Stellenbosch (where the wine
and in truth, much of the production was rather
gallons shipped. This prosperity lasted until
university is based), Paarl (home of KWV),
‘flabby’, lacking in acidity. Today, Chenin is
the early 1860’s. However, the wine industry
Franschhoek Valley (‘French Corner’) founded
mostly a good, reliable easy-drinking offering,
was then beset by a series of major problems.
by Huguenot settlers who brought the traditions
however the desire for Chardonnay and more
Negative treaty changes were followed by the
and winemaking skills from their native France.
recently Sauvignon Blanc has seen its decline
phylloxera epidemic. The infested vines had to
Other notable regions are Swartland, Worcester,
in vine share to these ‘noble’ varieties. There’s
be ripped up. Many were replanted with fruit
Robertson and the rising star: Walker Bay
also some excellent Semillon to be found eg:
orchards rather than the vine and it took more
(notable Pinot Noir and Chardonnay).
Franschhoek’s
Boekenhoutskloof’s
offering
(£18.25).
than 20 years to see some recovery. Most of
Pinotage is the true red native. In 1925 Prof.
those who did replant overplanted with vines of high-yielding varieties which brought a wine
Grape Varieties
Abraham Perold crossed two varieties: Pinot
glut, causing a slump in prices. Control was
The first white variety to speak of must be
Noir and Hermitage (now called Cinsault) – thus
needed and in 1918 the government of the day
Chenin Blanc (locally named Steen), brought
Pinotage. 1961 saw its first sales and established
formed a co-operative named KWV which grew
from France to The Cape in van Riebeeck’s
its place in the world of wine. However, it’s not
in power, controlling yields and prices for the
days. In the 1980’s Chenin (Steen) accounted
everyone’s ‘cup of tea’ for, depending how
whole industry.
for around one third of all the country’s plantings
it is made, it can have strong nuances of tar
16
theBaltic Spring 2011 www.thebaltic.com
Baltic Briefing and rubber, whilst good, careful producers will
September sees the Nederburg Auction.
the French Revolution. It seems South Africa has
produce violets and ripe black berry fruits (I am
First conceived in 1957 with just five producers
had to endure much, much more. However the
currently enjoying an offering from Cloof £9.80).
showing 15 wines, now the world flocks to Paarl
wine-world now respects and recognises that its
Pinotage’s plantings are down to about 6% and,
to attend the tasting and auction of more than
wines match the best.
like Chenin Blanc, it must look over its shoulder
180 wines from over 80 producers.
as first Cabernet-Sauvignon and now Pinot Noir and Shiraz become the desired plantings. Other classic red varieties have also been planted, many for (successful) blending. There are lots of good rosé offerings ranging from light to deeper styles. On the sparkling side, South Africa generally
Thus, the wine-makers of the Rainbow Nation have every reason to look to the future
Just some of the stars: • Constantia: Klein Constantia’s Sauvignon Blanc
(£9.85)
and
the
range
Buitenverwachting; • Stellenbosch: Thelema (Sauvignon), Raats, Meerlust, Rustenberg and the fabulous Vergelegen range;
follows the traditional (Champagne) method.
• Franschhoek: Chamonix;
Chenin with Sauvignon Blanc had been the
• Walker Bay: Hamilton-Russell (Pinot Noir
mainstay, however with more plantings of Pinot
& Chardonnay), Hermanuspietersfontein -
Noir and Chardonnay (as used in Champagne)
their Sauvignon blanc (£11.80) and Kleinbot
these varieties are increasingly producing the
(Bordeaux blend 12.50),
bubbles. Quality sparkling wine in South Africa
• Paarl: Fairview and
is named “Cap Classique” and this terminology
• Robertson: Danie De Wet
should be sought when buying their fizz.
with an optimistic smile.
from
The great chateaux of Bordeaux weathered
David Hughes was a shipbroker from 1961-1983 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. www.thewine-enthusiast.co.uk david@thewine-enthusiast.co.uk
St Andrew’s Day
Anyone for football? A
ny Baltic Exchange member interested in taking part in a Baltic Exchange five-a-side
football tournament later this year should register their interest with Cris Eccleston. Email: ceccleston@balticexchange.com Tel:+44 (0)20 7369 1654
Members of the Baltic Exchange celebrated St Andrew’s Day aboard HMS President. Retired member Peter Watson was guest of honour, having recently celebrated his 90th birthday.
Receive Baltic market information by SMS M
embers subscribing to the Baltic’s freight market information services can elect to
receive the information by text to their mobile phone. To do so, simply log into www.balticexchange.com and update your profile details.
theBaltic Spring 2011 www.thebaltic.com
17
Baltic Briefing
Sadly departed Raymond Everest
tricky business of demutalisation, which was
promote the activities of the port, still the second
Raymond Everest was first elected to the Baltic
opposed by many on the board, but supported
largest in tonnage in the UK behind Grimsby and
in 1949 and worked for Ross T Smyth & Co Ltd.
by members. The AA was bought by Centrica for
Immingham.
From 1953 he worked for Tradax England Ltd
£1.1 billion ensuring a windfall for its members.
He was elected as Elder Brother of Trinity
Born in 1933 in Liverpool, Sir Brian studied
House in 1989, Prime Warden of the Shipwrights
law at Cambridge University. However, he
Livery Company in 1993. He was a director at
sought out a career in industry rather than
various times of Enterprise Oil, Andrew Weir and
the law. His first job was with Pacific Steam
AWSR Shipping and AMP Asset Management.
John Lewis
Navigation Company in the ports of Panama,
His charitable activities included the vice-
John Lewis was first elected to the Baltic on
Peru and Chile and he was elected a member of
presidency of King George’s Fund for Sailor and
20 July 1976 and worked for Renwick, Everest
the Baltic Exchange. Having started with Pacific
four other seafarer charities.
& Clarke Ltd. Between 1992 and 1998 he
Steam Navigation Co in 1957, he went on to
represented Simpson Spence & Young Ltd, and
work for various companies within the Furness
from 1999 to 2006, Galbraith’s Ltd. He was a
Withy Group for much of his career.
which became Cargill and worked for Cargill until he retired in1985.
Principal at GFI Brokers Ltd until his passing.
will be held at 1100 on Monday 4 April 2011
in 1960, he transferred to Royal Mail Lines as
at St Lawrence Jewry, Guildhall Yard, London
secretary from 1960 until 1965. Royal Mail
EC2V 5AA.
Richard Geoffrey Pendered Richard Pendered was first elected to the Baltic
but the late 1960s were difficult times for the
on 10 August 1953 and worked for Bunge &
group which had to sell 23 ships. However
Co Ltd until his membership ceased in 1989.
the company was one of the first consortia to
He was a retired member from 1991 until 1996.
go into the container trade, forming Overseas Containers (OCL). He became chairman of the group’s subsidiary Shaw Savill and Albion Co.
Sir Brian Shaw
The company created the New Zealand Line,
Sir Brian Shaw, shipowner, banker and Port of
but was the subject of various takeover threats.
London Authority (PLA) chairman passed away
The company finally succumbed to a bid from
in February. As chairman of the PLA he steered
the CY Tung Group of Hong for its 40 ships, oil
the organisation through a period of turbulence
rigs and hotels.
after it lost its government funding in 1994.
Sir Brian became the chairman of the Council
He was also the chairman of the Automobile
of European and Japanese National Shipowner
Association (AA) as it forged ahead with its
Associations (CENSA) between 1984 and
demutalisation in 1999.
1986 and was selected vice-president and
In its heyday in the 1960s, the PLA ran all
then president of the Genral Council of British
of London’s enclosed docks and employed
Shipping. Knighted in 1986 for these services,
tens of thousands of workers. Following the
he joined the board of the National Bank of
privatisation of Tilbury Docks in 1992 and the
New Zealand, leading to a directorship in 1977
industrial strife which followed, the PLA was
of Grindlays Bank with its worldwide interests.
turned into a smaller organisation whose main
Following a takeover by the Australian ANZ
remit was to handle the safety of navigation on
banking group, Sir Brian was made chairman of
the tidal Thames. Sir Brian was charged with
ANZ Grindlays. Quitting shipowning in 1991, he became
Later, as
more deeply involved with the PLA. By 1993
chairman of the AA, he steered it through the
he became chairman and made it his role to
18
theBaltic Spring 2011 www.thebaltic.com
port on a sound financial footing.
A remembrance and thanksgiving service
Returning to the UK from South America
Lines was eventually acquired by Furness Withy,
putting this change into effect and putting the
He is survived by his wife Pennie, whom he married in 1962 and by three sons.
This article is based on an obituary which appeared in the Times on 23 February 2011.
New corporate members The Baltic is delighted to welcome the following companies into Baltic Exchange membership:
Blue Fleet Management (Greece)
Quadra Commodities (Switzerland)
Henley Chartering International (UK)
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 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: jharrison@balticexchange.com
Jackie Harrison
Baltic website: www.balticexchange.com
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
theBaltic Spring 2011 www.thebaltic.com
19
Logbook
Champion Tyne tanker builder Ambrose Greenway looks at the unmatched output of early tankers by the Low Walker yard of Armstrong, Mitchell & Co, which became Armstrong, Whitworth & Co in 1897 following the death of Charles Mitchell
T
he first oil cargo to cross the Atlantic
total of such ships in service to around a dozen.
being fitted to burn oil fuel, an arrangement
was carried in barrels from Philadelphia
Another early client was the London broker Lane
used by Armstrongs in the 1893-built Suart
to London in the small wooden brig
& MacAndrew, which received sisters Kasbek
tanker Baku Standard. Samuel’s newly formed
Elizabeth Watts in 1861. Over the next
and Daryal in 1888/1889. Among that firm’s
Shell Transport & Trading Co took delivery of
quarter of a century, carriage of oil in ‘cases’ and
later orders were the engines-amidships sisters
sisters Strombus, Cardium and Bulysses in
drums became commonplace but an increasing
Carpathian and Roumanian of 1908, which were
1900, which together with the slightly larger
number of experiments were made to carry oil
sold with the rest of the fleet to Anglo Persian
Pinna of 1901 were amongst the largest tankers
in bulk, usually by fitting large tanks to existing
Oil Co’s new British Tanker Co during the latter
of their day.
vessels.
stages of WW1. The yard also built tankers for
Buyo Maru, delivered to Toyo Kisen by
The best ideas were combined in the
UK companies not previously associated with
Armstrongs in 1908, was unusual in having
Glückauf, ordered by Riedemann & Schütte
the oil business, such as C T Bowring, H E Moss
two closely spaced funnels, a feature used only
of Geestemunde from Armstrong Mitchell and
and Prince Line, as well as a number of foreign
once before in the Rotterdam completed for the
launched in July 1885, just one day before the
owners from Belgium, France and Russia.
American Petroleum Co by Palmers in 1895.
first UK-built and owned tanker, J Suart’s iron
By 1891 around 80-90 tankers were
One of a trio ordered by H E Moss, she had been
Bakuin, took to the water at Wm Gray’s, West
operating on the Atlantic alone, some belonging
sold on the stocks along with sister Cheyenne,
Hartlepool. Widely regarded as the prototype of
to the UK’s first major oil company Anglo-
which was delivered to Anglo-American by Swan
the modern oil tanker, Glückauf carried oil next
American, established three years earlier by
Hunter in the same year. Moss received only the
to her outer skin and in addition to a fore and
America’s Standard Oil Co. Although it quickly
third ship Lucigen, delivered early in 1909, and
aft centreline bulkhead her cargo spaces were
became pre-eminent in the trade, it only built two
Buyo Maru was bought by the Admiralty in 1917
sub-divided transversely into eight sets of tanks,
tankers at Low Walker; Weehawken in 1891 and
and managed by Anglo-Saxon as Delphinula.
which were separated from the coal bunkers by
Comanchee in 1912. In 1892 however a new
Amongst Armstrong’s other oil company
a pump-room. Above these, a continuous fore
entrant to the oil business – Marcus Samuel,
clients were Burmah Oil, for which they built five
and aft trunkway allowed for expansion as well
second son of a London dealer in oriental curios
smaller tankers between 1900 and 1909, and
as the carriage of lighter oils on either side. Its
and shell-covered boxes – took delivery of his
the new Eagle Oil Transport Co, formed in 1912
part steel, part iron hull was boiler riveted for
first tanker Murex to carry Caspian oil to the
to carry oil from the developing Mexican fields.
strength and to prevent leakage and she was
Far East. One of five ships – three of 3,050dwt
The latter ordered no less than 19 tankers from
equipped with powerful pumps and electric
and two of 5,500 dwt, – from Wm Gray, West
several yards, 10 of around 16,000 dwt – the
lighting. In 1890 she was transferred to a newly
Hartlepool, Murex was the first loaded tanker
world’s largest, made possible by adoption of
formed subsidiary of Standard Oil, the German-
permitted to transit the Suez Canal.
Isherwood’s longitudinal method of transverse
Samuel began a successful association with
framing – and nine of 9,000 dwt. Armstrongs
The successful operation of these two
Armstrongs with the 3,918 gt Euplectela in 1894
were responsible for three of each, bringing its
pioneer tankers led to a rush for orders, and
and over the following two years received the
impressive pre-war tanker output to around
Armstrongs delivered three more tankers to
4,893 gt sisters Nerite and Cowrie. The smaller
100 units.
German owners in 1886, bringing the overall
Trigonia and Haliotis of 1898 were unusual in
20
theBaltic Spring 2011 www.thebaltic.com
American Petroleum Co.
Logbook
Daryal Gluckauf
Lane & Macandrew’s Daryal (1889) and sister Kasbek were bought by
Prototype of the modern oil tanker, the 3,000 dwt German-flagged
Anglo-American Oil Co (later Esso) in 1889. Renamed Genesee and
Glückauf was designed by Mitchell’s brother-in-law Henry Swan. Her well
Suwanee, they lasted until the mid 1920s.
deck was later filled in and she was wrecked off Long Island in 1893.
Strombus
Shell’s Strombus was one of three sisters completed in 1900. Converted to a whale factory for Peruvian owners in 1925, she was mined in the Bristol Channel in November 1940. Most early Shell tankers were fitted with derricks to load general cargo on ballast legs.
Saxoleine
The elegant 5,700 dwt Saxoleine, delivered to the Hunting Group’s French associate Fenaille & Despeaux in 1898, was a sister of Lane & Macandrew’s Luciline and Oriflamme. Sold in 1928, she fell into Soviet hands in 1945 and traded as Grozny for a further 20 years. Lucigen
Armstrongs built three tankers named Lucigen for Liverpool owner H E Moss & Co. The third, completed in 1909, was unusual in having two funnels, a feature shared by only three other early tankers. She survived both World Wars and was scuttled off Lagos in 1946.
Hermione
San Isidoro
The 4,519 gt Hermione was completed for C T Bowring in 1906 but
(1914) and her nine sisters were the first ‘supertankers’. Quickly sold to the
was sold to Japan as Soyo Maru only two years later. She became the
French navy as Dordogne, she reverted to UK management as Silverlip
Admiralty oiler Nucula in 1917, was transferred to the New Zealand
during WW1 and was eventually scuttled in Brest Roads in June 1940.
Govt in 1924 and eventually scuttled as a hulk in 1947.
Five of her sisters were converted into whale-factories in the late 1920s.
theBaltic Spring 2011 www.thebaltic.com
21
People, places, plcs
Industry news T
he escalating problem of piracy off the
off the coast of Somalia. They have resulted
to deter, interdict and bring to justice those
coast of Somalia is “completely unac-
in 67 hijacked ships, with 1,130 seafarers on
who commit acts of piracy and armed
ceptable” and requires an urgent and
board – whilst, at February 2011, 714 seafarers
coordinated response, according to
are being held for ransom on board 30 ships
United Nations secretary general Ban Ki-moon.
scattered at various points of the country’s
Speaking at IMO’s London headquarters, at the launch of the IMO’s action plan “Piracy:
robbery against ships. • Provide care for those attacked or hijacked by pirates and for their families. Among other things, during 2011, IMO
extensive coastline.” IMO’s action plan for 2011 has six prime
will focus on promoting further cooperation
orchestrating the response”, Ban welcomed
objectives:
between and among States, regions and
the IMO’s decision to pay special attention to
• Increase pressure at the political level to
organisations in reducing the risk of attacks
piracy during the year ahead. “This is a timely
secure the release of all hostages being
on ships through a variety of mechanisms,
and important initiative,” he said.
held by pirates.
including information-sharing; coordination of
IMO secretary general Efthimios Mitropoulos
• Review and improve the IMO guidelines to
military and civil efforts; and development and
said: “Piracy and kidnapping have blighted the
administrations and seafarers and promote
implementation of regional initiatives, such as
maritime community for too long and it is
compliance with industry best management
the IMO-led Djibouti Code of Conduct.
seafarers who bear the brunt.” He added: “We
practice and the recommended preventive,
In conclusion, Mr Mitropoulos said: “This
believe that we can use the experience gained
evasive and defensive measures ships
year, we are resolved to redouble our efforts
should follow.
and, in so doing, generate a broader, global
and the successes achieved in reducing piracy elsewhere to good effect in the current arena as well, but to do so requires a well orchestrated
• Promote greater levels of support from, and
response to modern-day piracy. More needs to be done if the ultimate goal of consigning
coordination with, navies. and
piracy to the realms of history is to be achieved.
Mitropoulos said IMO’s action plan aimed to
cooperation procedures between and
We hope that our choice of theme for 2011 will
make some genuine inroads into what, to date,
among States, regions, organisations and
provide an appropriate rallying point around
has been an escalating problem.
industry.
which all those who can make a difference can
response.”
• Promote
anti-piracy
coordination
“In the past 12 months alone”, he said,
• Assist states to build capacity in piracy-
“there have been 286 piracy-related incidents
infested regions of the world, and elsewhere,
focus their efforts.”
Stena Bulk
Star Bulk Carriers
According to the company, there will be no
Stena Bulk has acquired 50% of Danish shipping
Star Bulk Carriers has appointed Spyros
material impact on the results of the Group.
company Weco, doubling its MR tanker fleet
Caparalos as its new president and ceo, taking
from 15 to 30 tankers. The company says it
over from Akis Tsirigakis. Although Tsirigakis will
aims to build up an operation with upwards of
continue to serve on the company’s board of
Maritime London
50 vessels under the new brand name of Stena
directors, the company said in a statement that
David Moorhouse, formerly Lloyd’s Register
Weco over the next few years.
“Mr Tsirigakis’ parting was mutually agreed, so
chairman, has been appointed chairman of
he may pursue other interests”.
Maritime London. He replaces Robert Woods
Weco, which is part of the privately owned shipping group Dannebrog, specialises in the
Capralos was formerly chairman of the
product tankers. It currently operates some 15
Athens Exchange and ceo of the Hellenic
David Moorhouse said: “At a time when
vessels with peaks of 30-35 vessels, including
Exchanges Group and was the president of the
the UK’s maritime cluster is facing a significant
short-term charters.
Federation of European Securities Exchanges.
challenge internationally, Maritime London is
He also served as secretary general of the
performing an essential function of reinforcing
Athens 2004 Olympic Games.
the commitment and strength of the UK’s
“This is in line with our new investment in worldwide MR operation with a greater focus
who has served a three-year term of office.
on cargoes of edible oils. With Weco’s world-
diverse and experienced maritime services to
leading position in this segment and our strength
the wider world. The breadth and depth of
in petroleum products, we will achieve major
Clarksons
our £1 billion professional services sector are
synergies in the long term. The p-max tankers
Clarksons announced at the beginning of
second to none and I look forward to helping
(65,000 dwt) with their shallow draft are highly
February that it has taken the decision to close
ensure that this message is heard loud and clear
suitable for this transport pattern”, said Ulf
the Clarkson Freight Fund and the Clarkson
across both industry and government. Despite
Ryder, president and ceo of Stena Bulk.
Shipping Hedge Fund with immediate effect.
strong international pressure, London and the
22
theBaltic Spring 2011 www.thebaltic.com
People, places, plcs meanwhile, are 10% and 8% per annum. An asset may be regarded as long-life if it is reasonable to expect that it will have a useful economic life of at least 25 years when it is new. Sue Bill, a tax partner with Moore Stephens, says; “Some ships may reasonably be expected to have a useful life of at least 25 years when they are new, and may therefore be regarded as long-life assets. But this will depend on the type of vessel involved. “Broadly
speaking,
the
date
when
expenditure is regarded as having been incurred for capital allowance purposes is the date when there is an unconditional obligation to pay. In the case of a shipbuilding contract, although the obligation to pay for that part of the asset that has been completed becomes unconditional when the work is certified, there are exceptions to the general rules. “The date when expenditure is regarded as having been incurred will also depend on whether or not the company incurring the expenditure is already carrying on an existing trade as a shipowner or operator. Where a
David Moorhouse
company is not yet trading, expenditure is UK remain the global shipping industry’s top
rules, expenditure on ships incurred on or
regarded as having been incurred for capital
provider of expertise for shipbroking, insurance,
after 1 January 2011 is no longer excluded
allowance purposes on the date the company
finance, legal and classification services, as well
from the regime, under which the writing-down
starts to trade. This will usually be the date when
as a whole host of other niche professions and
allowances are considerably lower than those for
the ship is delivered. Where the exact date is
Maritime London is here to help support this.”
other assets. Ships acquired prior to 1 January
important, specific advice should be obtained.
Welcoming David Moorhouse’s appointment, Maritime London chief executive Doug Barrow
2011 will continue to be excluded from the longlife asset rules.
“Companies which incur expenditure on ships after 1 January 2011 will now have to
said: “I am delighted that David Moorhouse
The writing-down allowance available on
consider whether the ships may reasonably
will be serving as our chairman and bringing
ships outside the long-life asset regime is 20%
be expected to have a useful life of at least
his energy and expertise to Maritime London.
per annum up to 1 April 2012, and 18%
25 years when new when claiming capital
Robert Woods has been a very strong and
thereafter, on a reducing balance basis. The
allowances. It is likely to be beneficial if this is
enthusiastic chairman and I thank him for
comparable allowances for long-life assets,
not the case.”
helping grow Maritime London’s profile over the past three years.” He added: “Maritime London has a busy 2011 ahead with promotional trips to Turkey, Greece, India and China planned, as well as numerous presentations and meetings with a variety of end-users of maritime services.”
Capital allowance changes Moore Stephens has warned that the tax advantages available in respect of capital expenditure on ships may be greatly reduced following changes to the UK capital allowance regime which came into effect on 1 January 2011. Ships have traditionally enjoyed significant tax advantages over other types of assets. Prior to 1 January 2011, ships outside tonnage tax were specifically excluded from the long-life asset regime, and the normal rate of writingdown
allowances
therefore
applied.
But,
following changes to the capital allowance
UK Capital regime changes
theBaltic Spring 2011 www.thebaltic.com
23
opportunities and future prospects AGENDA AT A GLANCE
Hear from
DAY ONE: THURSDAY 31 MARCH 2011 OPENING KEYNOTE SESSION: TIGHTENING EUROPEAN REGULATION
•Heinrich Hick Member of Cabinet, Cabinet Oettinger – Energy, European Commission
SESSION 2: EVOLVING SUPPLY AND DEMAND PATTERNS SESSION 3: TRADING AND RISK MANAGEMENT
•Henry Derwent
DAY TWO: FRIDAY 1 APRIL 2011
President & CEO, International Emissions Trading Association
SESSION 4: NEW DEVELOPMENTS IN DERIVATIVES TRADING SESSION 5: FREIGHT DYNAMICS, TRADING AND RISK MANAGEMENT
PostConference Business Networking
•Emmanuel Fages
SESSION 6: COKING COAL MARKET DEVELOPMENTS
Head of Coal, Carbon, Gas and European Power Research, Société Générale Corporate and Investment Banking – Commodities
Venue: InterContinental Genève Ski Trip
The InterContinental 1st-3rd Genève enjoys a prestigious address in the centre of the city’s exclusive April diplomatic district. The stream-lined 18-storey building is surrounded by lush parkland and boasts panoramic views of Lake Geneva and the Alps beyond. The hotel is a mere 10-minute drive from the majestic Jet d’eau, the city’s emblem and the famous Rue du Rhone, its upscale shopping street. The lively Old Town, Ariana Museum and Botanical gardens are all close by, as are the International Red Cross and Red Crescent Museum and the United Nations’ palace. Equally only 10 minutes from Cointrin International Airport, PALEXPO exhibition centre and the International Centre for Conferences (ICCG)
•Jeremy Penn Chief Executive Officer, The Baltic Exchange
•Dave Docker Head of Fuel Procurement, Trading, Drax Power Limited
CONFERENCE HIGHLIGHTS INCLUDE: "It’s a good opportunity to Hear from the European Commission on the very latest plans on refresh your market overview energy market regulation. A comprehensive session will examine the Coaltrans Conferences organises large-scale international coal conferences, which and review price trends." impact of tightened energy trading regulation in Europe attract delegates from all over the world. It also runs focused regional events, An opportunity for coal producers and coal buyers alike to Felipe Macedo, VALE S.A exhibitions, field trips and training courses. It has a reputation for employing the review the most effective risk management strategies and highest organisational standards. In 2011, Coaltrans is running events in Australia, pricing trends "TheSingapore, various perspectives Brazil, China, India, Indonesia, Mongolia, Mozambique, Russia, South Join the debate on the introduction of screen trading and Africa, Spain, UK and USA. from a wide variety of understand the latest drivers affecting the world dry bulk shipping market stakeholders in the Hear from high profile industry players on the most current global coal market trends in the derivatives trading market Forge invaluable new business contacts via an array of networking were invaluable." opportunities including an optional post-conference ski trip Gregory George,
About the Organisers
BNP Paribas
Gold Sponsor
Supporters
Bronze Sponsors
For more information contact Romain Ollichon: Tel: +44 (0)20 7779 8731 Fax: +44 (0)20 7779 8946 Official Publication Email: rollichon@euromoneyplc.com www.coaltrans.com/switzerland 3
Comment – Michael Grey
Advancing with caution H
ave you noticed that nobody talks
However, our future is perhaps as uncertain
about “the future” any more, prefer-
as it has been for many a long year. Will the Euro,
ring the curious term “going forward”.
and indeed Europe, hold together, and even
It could be that whoever utters this
more importantly, will the curse of protectionism
believes that it confers a certain cutting edge
arise to see the deeply indebted US defending
certitude upon the speaker – after all, nobody
itself against Chinese imports? That
ever would admit that they were “going back-
would
surely
push
militant
wards”. On the other hand it could be that the
environmentalism and the current terror of
future is now so worryingly problematical, that to
‘carbon’ off the front pages and force us to
even mention the noun itself is to risk the wrath
consider what really matters. In both China and
of the gods in a risk-averse society, as we, er, go
India we have two new players of enormous
forward, with fingers crossed.
global significance for shipping, but who has yet
And you have to admit that the future is
got the measure of either? China has cornered
so full of known and unknown unknowns, that
all the world’s money and the pair of them
were Donald Rumsfeld himself to be engaged
have much of the world’s serious enterprise
in maritime endeavours, even he would be
and ambition. What might this mean for sea Michael Grey
transport and its ... er … future?
is afflicted with a colossal tonnage ‘overhang’
such as those involving atmospheric emissions,
no alternative for ships as the facilitators of world
of ships, which were contracted before the
or ballast handling, which could potentially see
trade, so shipowners at least have the knowledge
crash, possibly postponed as a result of some
perfectly good ships made redundant years
that they are really doing something useful. But
imaginative grovelling before the shipbuilders,
before their time.
we had the best part of the last quarter of the
struggling to convey the full measure of our
Perhaps the sole comfort is that there is yet
uncertainty. Virtually every shipping sector now
and now dependent on the goodness of the
Fifty years ago, before the advent of these
20th century with shipping in a self-contained
banks, which seem happily reluctant to become
‘specialists’, an owner would see peaks and
slump, affording the cheapest and most efficient
major shipowners.
troughs during the life of a ship, but that unit
sea transport to its delighted users, but with scant
Ah, you might say – the recovery may be
was rather more flexible and he was better able
reward for much of this grim period.
slow but it will eventually be with us, and all those
to ‘shop around’ for business. If you own some
There are those ‘glass half-full’ types who
tankers, bulkers and containerships scraping
gigantic vessel that can only trade into about four
are putting it about that while this year and
along the bottom today will find their values
ports on the planet, your choices are limited in a
next might see lean pickings, the recovery of
revised and their owners’ patience rewarded.
downturn. Alternative uses for super-specialised
world trade will happily soak up all those ships
You may well, as evidence for this optimism
ships tend to involve extensive layups, or perhaps
being delivered. But they have pretty well got
“going forward”, point to recoveries in history
conversion into reinforcing rods.
to say that, hopefully transferring a little of their
and the way that equilibrium in the supply and
Or perhaps even worse in the future
confident external appearance to their terrified
demand for ships has eventually been reached.
uncertainty stakes, what about ships which have
financiers, who listen to others declaring that
“All good things come to those who wait,” you
a sort of “curse” put upon them by an external
ship-shaped is really pear-shaped in the medium
will be nervously repeating to your bankers.
pressure group like the ridiculous Carbon War
term.
But while the freight cycles do come around,
Room, which seems to have taken upon itself
What do I know? But it is worth sometimes
there is no denying that the world of tomorrow
the responsibility for hounding the owners of
repeating this truism, which I attribute to my hero
is probably going to be very different to that
ships which they judge to be emitting too
Sir YK Pao. Way back in the 1970s, he noted
of the past. Take as an example the growing
much of the wrong gases from their funnels?
sagely that shipping is dependent on trade, and
inflexibility of ships, which have become so very
Pressure from self-serving know-all activists
that trade relies on political decision making. He
specialised, and also subject to far greater levels
seems certain to grow. Now we have ‘stars’ like
also believed in the maritime consequences of
of technical redundancy than hitherto. We have
Branson getting in on the act and blackguarding
‘events’, and that being well-prepared for the
barely become attuned to the possible effects of
the maritime mode, there may be some traction
completely unexpected was the very best you
some of the more dramatic regulatory changes,
in this growing interference.
could do.
theBaltic Spring 2011 www.thebaltic.com
25
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Tankers
Hard times Tankers continue to suffer from low rates
A
5% increase in the tanker fleet over 2010 took its toll on rates in the final quarter, and extended into the beginning of the new year. January was a
month of almost unremitting gloom, with the BITR Dirty falling to below 700 before beginning to recover. According to figures from Platou, rates for a modern VLCC in January were half the average rate paid in 2010 at $15,200 per day, compared with an annual average of $34,500 over last year. Suezmaxes fared even worse, with rates at only just over a third of last year’s average, at $10,800 per day. Perhaps surprisingly, the fall in rates has as yet had relatively little effect on vessel prices, with BPA assessments for five year old vessels remaining stable throughout January, although prices quoted for modern vessels fell slightly in value. However, Platou was downbeat about prospects for the market in the next few months, observing that while owners were still getting ‘good prices’ in some cases – notably Frontline’s sale of the
market could see a return to the situation of last
the demand fundamentals within the product
Front Shanghai for $91.25 million: “We do not
year when many tankers were removed from
tanker segment are improving. For example,
expect to see these prices repeated any time
the market to act as floating storage units for
in 2010, ton-mile demand increased by about
soon.”
investors exploiting the contango trade. Soaking
5.4% while the net growth of the fleet was only
up excess capacity on the market in this way
1.2%.” Navios has a number of product tankers
would be a welcome move for tanker owners.
on order; Frangou said she was confident that
Oil demand to increase
market fundamentals should improve further
Despite the gloomy beginning to 2011, predictions
by the time the company takes delivery of the
Product tankers set for recovery?
vessels.
Authority (IEA) recently revised predicted oil
Product tankers have suffered badly over
in the forecast attached to its own annual report
demand for the year upwards to 88.8 million
recent months. However, at least two major
that: “In the medium to long term, significant
bpd – up from 87.4 million bpd in 2011. This
players within the market are predicting the
refinery expansions in Middle East and Asia will
announcement coincided with concerns about
beginnings of a recovery in the sector, based
provide a substantial trigger for product tanker
the levels of Saudi Arabian oil reserves, political
on the emergence of new refineries and a
demand due to increase in the ton-mile situation.”
unrest in the Middle East and concerns about
changing pattern of products transfer. Angeliki
However, the company warned that this was
the effect of piracy on tanker lanes in the Strait
Frangou, ceo of Navios Maritime Holdings,
unlikely to lead to an improvement in rates. On
of Hormuz – particularly following the capture
said in the company’s annual report, published
the contrary, it said, “strong fleet expansion will
of a VLCC in February – to drive oil prices to a
in mid-February, that: “As economic activity
keep fleet utilisation under pressure resulting in
2 ½ year high, at times over $100 per barrel.
picks up globally and refineries are moved from
lowering of tanker earnings”.
If the increase continues, it is possible the
developed countries to emerging countries,
for the year ahead may give tanker owners some cause for optimism. The International Energy
theBaltic Spring 2011 www.thebaltic.com
Likewise, Great Eastern Shipping predicted
27
S&P
Going down Low freight rates contribute to a depressing start to the year
A
lthough the S&P market has, as usual
... or is it?
on rumours in early January that Bangladeshi
lagged the fall in both the dry and
Clarksons’ Martin Stopford, by contrast, says
yards were to open for business again after a
tanker markets over the last couple of
that while slippage stood at 25% across the
months, the drop in rates is beginning
whole fleet in 2009, in 2010 a surplus
to make itself felt in second-hand prices. The
of 13% was delivered at 147 million
BSPA continued a steady decline in all sectors,
dwt total instead of the predicted
with the prospect of further falls to come as ton-
130 million dwt. He believes
nage continues to flood the market.
that a difficult 2011 could again lead to slippages.
pause of more than nine months. However, a fatal explosion in one of the few yards still operational led to the suspension of all moves to allow scrapping to recommence. With no prospect of immediate competition for tonnage from Bangladesh, Indian yards subsequently
Slippage on the rise reckons that deliveries in 2010 were well below
Ordering drops off
predicted levels, and that 2011 will show a
While Braemar has looked at
similar trend, meaning that over-supply of
the number of deliveries over
tonnage will not be as bad as expected, and
the last year, a recent report
that ship value may therefore hold up better.
from Clarksons concentrates on
“The difference between the orderbook schedule
the effect the rate slowdown has
and actuality in 2010 was a function of technical
had on ordering. Overall ordering in
underperformance at certain shipyards and the
January 2010 was down by 60% against
fall-out of the credit crunch,” Braemar said.
the same figure in 2009, the shipbroker
In concrete terms, it believes that there was a
claimed. According to Clarkson’s own
shortfall of 31% between the number of bulkers
figures, it had fallen to a level last seen in
scheduled to deliver in 2011 and those delivered
September 2009, indicating a severe lack of
across all sectors. In the capesize market,
confidence in all sectors of the market.
However, a report from Braemar Seascope
dropped
their
prices.
they had anticipated the delivery of some 270
Figures from Platou show that tanker ordering
vessels, but only 195 delivered – a shortfall of
has been hardest hit by the crisis of confidence,
27%. “It will not surprise us if as many as a
with just two VLCCs and one small tanker
quarter of anticipated deliveries don’t turn up by
ordered in January – a total of 700,000 dwt.
December this year. The delays may prolong the
The dry bulk sector fared better, with 7.6 million
downturn but equally they could allow demand
dwt ordered, including 13 capesizes and 53
to catch up with supply during the recovery from
handymax/supramaxes. Overall, though, owners
the 2009 recession,” said Braemar’s research
seem cautious about committing to new orders
manager Mark Williams. On the tanker side, the
– hardly surprising under the circumstances.
situation is similar, with 37 million dwt delivered in 2010, against a predicted 51 million dwt, a shortfall of 27%. The biggest shortfall among
Removals
crude tankers was in the suezmax segment,
There was considerable activity in the scrap
where 36 out of an expected 57 ships delivered,
market at the beginning of the year, with prices in
a shortfall of 37%.
the Indian subcontinent rising to more than $520 per tonne for tankers. High prices were based
theBaltic Spring 2011 www.thebaltic.com
29
BIMCO Update
From wrecks to recycling Pernille Kaervad Jacobsen reports on a packed programme of developments and updates at BIMCO
B
Committee
after which the daily rate of hire will be reduced.
have decided to undertake a modest revision of
met in November 2010 in London,
Finally, an expert evaluation process has been
the industry standard international contract for
where it approved the revision of the
introduced to expedite disputes over the
the sale and purchase of second-hand vessels,
ISU/BIMCO wreck removal agree-
application of standby rates or other rates of hire.
SALEFORM 1993. While the general view of
ments, WRECKHIRE 99, WRECKFIXED 99
Revision work on all three agreements has been
the industry is that the contract has served the
and WRECKSTAGE 99. In addition, two stand-
done in close consultation with the industry and
industry well over the years, it is acknowledged
ard clauses for voyage and time charterpar-
the amendments are considered to represent a
that 17 years without a revision is a long time by
ties addressing issues of the new EU legisla-
significant improvement over the current editions
any standard and that the time has now come to
tion regarding advanced cargo declarations were
of the agreements.
undertake a revision of the form. The objective
IMCO’s
Documentary
adopted. The documentary work programme
WRECKHIRE 2011, WRECKFIXED 2011
of the revision will be to bring SALEFORM in line
remains substantial, including a number of large
and WRECKSTAGE 2011 accompanied by
with present commercial and legal requirements in
projects such as development of a standard
explanatory notes will soon be published on the
the sale and purchase of second-hand tonnage,
contract for the laying up of vessels, a standard
BIMCO website at www.bimco.org.
while maintaining the fundamental principles of the contract.
pooling agreement for the tramp trade, a green nomical steaming clauses. Finally, the Norwegian
EU Advance Cargo Declaration Clauses
international experts with commercial and legal
recycling contract and development of slow/eco-
BIMCO has formed a subcommittee of
Shipbrokers Association and BIMCO have agreed
In November 2010 BIMCO published two clauses,
expertise in ship sale and purchase. The aim is
to undertake a joint revision of the Norwegian Sale
the EU Advance Cargo Declaration Clause for
to complete the revision of SALEFORM 1993 by
Form, SALEFORM 1993.
Time Charterparties and the EU Advance Cargo
autumn 2011.
Declaration Clauses for Voyage Charterparties.
Wreck Removal Agreements
These clauses address the new EU legislation
The revision of WRECKHIRE 99, WRECKFIXED
regarding
99 and WRECKSTAGE 99 has been ongoing for
declarations when importing goods from outside
The object of this highly topical project is to
two years. The project commenced when the
the EU into EU ports, or exporting goods from EU
develop two suitable charterparty provisions for
International Group of P&I Clubs approached
ports to outside of the EU. The legislation came
general industry use, one for time charterparties
BIMCO in 2009 with a request to help initiate a
into force on 1 January 2011 and applies to liner
and one for voyage charterparties. BIMCO intends
revision. The primary focus of the revision has
and bulk trades.
to address both slow steaming for economic
submission
of
advance
cargo
Slow/Economical Steaming Clauses
been to update the most commonly used of the
The clauses are modelled on the previously
purposes (fuel saving) and for environmental
three wreck removal agreements, WRECKHIRE
published North American Advance Cargo
purposes (emission control). Furthermore, the
99. However, to ensure consistency across
Notification Clauses but have been modified to
slow steaming clause for voyage charterparties
the suite of wreck removal agreements parallel
suit the EU system. However, with the exception
will embrace other slow steaming initiatives such
amendments have been made, where appropriate,
of the naming of the relevant regulations and the
as virtual arrival. To ensure that every aspect of
to WRECKFIXED 99 and WRECKSTAGE 99.
notices to be submitted (and in the case of the US,
this challenging task is properly considered, the
One of the main reasons for undertaking this
the bond requirement,) the EU clauses are largely
Working Group consists of industry experts with
revision was that the nature of wreck removal in
the same as the North American clauses in terms
technical, commercial and legal backgrounds.
respect of legislative and technical requirements
of liabilities, responsibilities and indemnities.
The clauses will be designed to reflect the
has changed significantly in the 10 years since
Since the publication of the clauses, it has
fact that there may well be sound commercial
the form was last revised. In particular, new
been noted that the EU Rules also apply to
reasons to reduce speed, such as reducing
requirements due to enhanced environmental
cargoes entering the EU but destined for ports
bunker consumption/fuel costs and, possibly, to
concerns, as well as technical difficulties
outside the EU, including cargo kept on board
increase demand for tonnage. It will also consider
associated with bunker removal, have made it
and transhipments. To take account of cargoes
issues such as due dispatch, deviation and vessel
increasingly difficult for insurers to place a cap on
not ultimately destined for EU ports, BIMCO has
performance warranties. Not least, consideration
costs when faced with an indeterminate period of
developed recommended additional wording to
will be given to the use of slow steaming as part
hire for marine services.
the clauses which takes this issue into account.
of company environmental policies to help reduce
With the revised WRECKHIRE form, some
The clauses, including the recommended
entirely new provisions have been introduced.
additional wording, can be downloaded free of
A bonus incentive scheme has been developed
charge from BIMCO’s website.
whereby the contractors will be paid an agreed
CO2 emissions. The Working Group has recently finalised work on the Slow/Economical Steaming Clause for Time Charterparties, which will be put up
bonus if the task is completed within the specified
SALEFORM 1993
for adoption when the Documentary Committee
period and, furthermore, a time cap has been
Following industry consultation, BIMCO and
meets next time in June 2011. At this meeting,
placed on completion of the salvage operation
the Norwegian Shipbrokers’ Association (NSA)
it is also expected that a first draft of the clause
30
theBaltic Spring 2011 www.thebaltic.com
BIMCO Update for voyage charterparties will be presented for
compliance with the Guidelines on pooling can be
redelivery of bunkers, bunkering operations,
comments.
openly discussed at this meeting.
sampling and fuel testing programmes, all of
It is expected that this project will be finalised
LAYUPMAN – Lay-up Contract
which are commonly absent from or insufficient in
by June 2011.
many standard forms of time charterparties.
was initiated by the Documentary Committee in
RECYCLECON – Green Recycling Contract
update and consolidate existing timecharter
view of the increasing number of vessel lay-ups
The initiative to develop a green recycling contract
from which users can select provisions to match
and in the absence of any existing standard
stems from the anticipated coming into force of
their contractual needs. It is neither intended,
agreement. The contract is designed to be used
the IMO Hong Kong (Ship Recycling) Convention.
nor recommended, to use the suite of clauses
between shipowners and third party service
Although the market for the green recycling of
as an all-inclusive clause because of the risk of
providers and it will be incorporating the structure
vessels is currently very small, it is set to grow in
conflicts of provisions in the charterparty. The
of SHIPMAN 2009, where possible.
the next few years during the interim period leading
suite of clauses will be put up for adoption at the
up to the coming into force of the Convention.
Documentary Committee meeting in June 2011.
The suite of bunker clauses is intended to
Work has begun on developing a standard contract for the laying up of vessels. This project
The
subcommittee,
which
includes
bunker provisions into a ‘pick-list’ of clauses
representatives from International Shipcare,
The recycling contract project began life as
Wilhelmsen Ship Management and Maersk Vessel
a revision of BIMCO’s DEMOLISHCON contract,
New clauses underway
Management, recognises that there are a great
but at an early stage of the process it was
Further to the above projects, the BIMCO
variety of methods and degrees of lay-up applied
recognised that a revision of DEMOLISHCON
Secretariat has three new clauses under
in the industry and that a standard form of
should be abandoned in favour of developing a
development: a Bottom Fouling Clause, a
contract needs to be able to adapt to suit the
new contract specifically designed for the green
NAABSA (Not Always Afloat but Safely Aground)
needs of users without the need for too much
recycling of ships. The project aims at providing
Clause and, finally, an OFAC SDN (US Office of
amendment. To achieve this goal, the first step
the industry with a niche contract designed for
Foreign Assets Control List of Specially Designated
the subcommittee has taken is to divide the
those shipowners who wish to ‘green’ recycle
Nationals) Clause.
contract into two distinctive parts: (i) the legal part
their vessels in advance of the coming into force
dealing with basic legal obligations, liabilities and
of the Convention.
Development of a bottom fouling clause has been initiated because the secretariat has
responsibilities, and (ii) the technical part (scope
A full review of the main contract terms has
been approached with a request to produce a
of work) dealing with the actual layup tasks.
been completed and work has now begun on
standard clause to help in the apportionment of
Furthermore, the subcommittee have agreed that
examining which elements of the Hong Kong
costs and responsibilities in the event a vessel
the contract should be an evergreen agreement
Convention should be reflected in the green
spends a disproportionate time idle in tropical
which, combined with a minimum period, was felt
recycling contract. It is expected that work on the
waters or operates at speeds, at the charterers’
to be the solution that better reflects the needs
contract will be completed in summer 2011.
request, where self-polishing paint is ineffective.
of the industry. Next on the agenda are issues of
The Working Group expects to be able to present
Standard Timecharter Guarantee
a clause ready for adoption in June 2011.
act as an agent or a principal for the purpose of
This project of developing a standard guarantee
develop a standard wording, which takes into
the layup contract.
co-assurance under the owner’s P&I policy and the issue of whether the lay-up manager should
The objective of the NAABSA Clause is to
for timecharterers’ performance has been initiated
consideration issues of indemnity for loss or
The Documentary Committee were shown a
due to it becoming increasingly common for
damage arising out of lying aground. A first
first draft in November 2010, and it is expected
owners to require charterers to provide some
draft of this wording was supported by the
that the subcommittee will be able to complete
form of written guarantee of performance. Such
Documentary Committee in November 2010 and
their task by June 2011, so that the contract will
guarantees have to be carefully worded to ensure
the Working Group expects to finalise work on
be available for use by early summer this year.
that they can be called on by owners in the
this wording very soon. It is expected that the text
event the charterers fail to meet their contractual
will be published during the summer in the form of
Pooling Agreement
obligations. There have been a number of cases
recommended additional wording to be added to
A BIMCO Standard Pooling Agreement Working
where poorly worded guarantees have not
the berthing clauses of charterparties.
Group has been established with the purpose of
provided owners with the security they believed
Use of so-called OFAC Clauses in maritime
developing a voluntary and negotiable standard
they had. For this reason BIMCO has decided
contracts, particularly those involving a US entity,
agreement for tramp shipping pools. The
to draft a standard wording that can be used by
is increasing. As such clauses often place a
Working Group has completed a full review of
owners in negotiations with charterers. A specialist
considerable burden of compliance on non-US
the agreement, which was well received by the
working group has been put together to solve
owners, the intention is to draft a standard wording
Documentary Committee in November 2010.
this task.
that appropriately addresses the application of
Part of the development process will include
The guarantee will cover charterers’ payment
OFAC to non-US shipowners. Drafting work on
a meeting with the European Commission’s
obligations under a time charterparty and is
this clause is due to begin shortly and it is
competition authority, DGCOMP. The pooling
designed to cover all types of payments, eg hire,
expected that this clause, too, will be ready for
agreement is being drafted as a standard form
unpaid bunkers, and port disbursements, as well
adoption in June 2011.
that can be used in most jurisdictions that have
as any associated legal costs or other expenses.
competition laws, as many have used European
Pernille Kaervad
Suite of Bunker Clauses for Time Charterparties
Jacobsen
It is hoped that the cooperation with DGCOMP will help in ensuring transparency for the project, and
The purpose of this project is to provide a ‘suite’
Officer
that any issues the drafters may have in respect of
of clauses covering matters relating to delivery/
BIMCO
competition laws as a model for their own system.
theBaltic Spring 2011 www.thebaltic.com
Documentary Affairs
31
Dry bulk
Cape crash Floods in Australia cause market woes
T
o judge by some of the economic data
charter when rates were more favourable and
manager Mark Williams, however: “It’s quite likely
available, 2011 looks like it should be
are now finding it impossible to cover costs.
that the freight market outlook will encourage
a reasonably successful year for ship-
Korea Line, which is said to have taken most
further delays in deliveries. It will not surprise us
owners.
of its chartered vessels in 2008 and 2009, in
if as many as a quarter of this year’s anticipated
According to figures from Platou, tonnage
addition to a 16 vessel newbuilding programme,
deliveries don’t turn up by December this year.
demand in 2010 was up by 12% across the
was looking to renegotiate charters with owners.
The delays may prolong the downturn but
merchant fleet as a whole, compared with just
After several weeks of rumours, the line filed
equally they could allow demand to catch up
7% increase in fleet growth. In 2011, the situation
for court protection from bankruptcy in late
with supply during the recovery from the 2009
is expected to be much more closely balanced,
January; renegotiating charters was a vital part
recession.”
with the fleet growing by 7%, slightly more than
of this process. It told Lloyds List that while
Many shipowners will be hoping that he is
the 6% predicted increase in demand. Utilisation
it had been striving to fulfill its obligations to
right. The alternative, in the long term, may well
rates are expected to be 84%, just slightly down
its chartered fleet by raising liquidity through
be putting vessels into lay-up.
from the 85% of last year, and still well up on the
such measures as sale and lease back, bond
81.1% usage rate of 2009.
issuance, asset backed lending, asset backed securities, disposal of assets and capital increases, these had proved insufficient, and it
Capesizes struggle
was now seeking alternative sources of funding,
However, these figures contrast sharply with
including renegotiating charters. Some owners,
the reality of the dry bulk markets in the first
including Paragon Shipping, have expressed
weeks of the year. Capesizes in particular saw
concern that Korea Line will no longer be in a
rates crash to levels that were barely sustainable
position to make its charter payments.
after floods in Queensland shut down coal mines, ports and transport links. According t.o estimates from Deloitte, it may take up to two
Delivery levels
years to resume full production, although others
While deliveries are expected to continue at a
are more optimistic, pointing out that it took just
high level throughout 2011, London shipbroker
two to three months to resume coal production
Braemar Seascope has cast doubt on the
levels after floods in 2008.
accuracy of many of the reported figures. “Dry
Figures from Platou estimate that average
bulk deliveries were scheduled to total 1,400
voyage charter rates for capesizes in January
ships of 113 million dwt last year. In the event,
were $10,000 per day – compared to $14,500
950 ships of 78 million dwt were delivered:
for panamaxes and $11,200 for handysizes. The
a shortfall of 31%,” the shipbroker said in a
BCI fell to 1,300 by the end of January, though
statement. “Braemar Seascope had anticipated
some owners were hoping that the break for the
the delivery of some 270 capesize bulkers
Chinese New Year would mark an end to rate
(over 120,000 dwt) in 2010. In the event, 195
stagnation when activity returned to the market.
delivered – still one nearly every working day of the year but 27% less than the schedule at the start of 2010.
Korea Line shakes owners
The orderbook at start of 2011 suggests
Low freight rates are causing particular problems
that 262 capesize ships could deliver this year.
for charterers who took vessels on long-term
According to Braemar Seascope’s research
32
theBaltic Spring 2011 www.thebaltic.com
35285 BalticSpring_PAT.fh11 1/21/11 1:26 PM Page 1 C
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Heavylift, project cargo and offshore
Building the fleet Clive Woodbridge takes a look at the new vessels designed to meet the increasing challenges of the expanding heavy lift sector
Dockwise orders ‘exceptional’ heavy lift vessel
H
eavy lift specialist Dockwise has ordered a new design of vessel to service the emerging market for ultralarge transport activities in the offshore
industry especially. Hyundai Heavy Industries (HHI) of South Korea is to build the new ‘Type 0’ vessel with delivery scheduled to take place in the last quarter of 2012. Dockwise highlights what it describes as the
A computer generated image of the new Type O heavy lift vessel ordered by Dockwise
new ship’s ‘exceptional’ size. Up to now the largest class of vessel on the market has been
in traditional areas to deep water and remote
Chipolbrok charts new Galaxy
the Type 1, which has cargo carrying capabilities
areas. Industry demand is moving towards
The Polish-Chinese joint venture Chipolbrok
between 41,000 and 73,000 tonnes. Dockwise
larger, heavier equipment, in single transportable
has recently taken delivery of the 30,332 dwt
currently has two vessels of this type in service,
modules, with plant and equipment increasingly
Chipolbrok Galaxy, further strengthening the
Blue Marlin and Mighty Servant I.
constructed in dedicated, low cost environments
company’s heavy lift capability. The newbuilding,
ahead of transportation.
the fourth in a series of six ordered from the
With an overall deck size of 275m x 70m, and a revolutionary new ‘bow-less’ arrangement, the
Close liaison with customers commissioning
Cosco Dalian and Shanghai yards, is 199.8
new vessel type will have a carrying capacity of
production platforms, sparbuoys and FPSOs, to
metres long, 27.8 metres wide and is equipped
more than 110,000 tonnes. As such it will be first
be deployed in offshore projects in the coming
with heavy lift cranes with a combined lift
of its kind in the heavy lift transportation sector
decade, has given Dockwise an insight into
capacity of 640 tonnes.
and will enhance the capability of the Dockwise
the scale and complexity of the transportation
Capable of operating at a service speed of
fleet, strengthening the company’s position at
demands it will be required to meet over the
19.2 knots, the Galaxy is to be deployed within
the top end of the market.
coming years as one of the industry leaders. The
Chipolbrok’s round-the-world service, linking
The precise specification of the Type 0 class
new vessel, which has already passed its tank
Hamburg, Antwerp, Bilbao and Venice, and the
vessel is subject to further detailed design work,
tests, is expected to be fully occupied when it
Chinese ports of Shanghai, Xingang and Dalian.
with Dockwise consulting with key clients as
enters service, given Dockwise’s existing order
The vessel will also call at Far East ports and the
well as with HHI. Andre Goedee, chief executive,
backlog in combination with projects that are on
USA before returning to Europe.
says: “We have been particularly encouraged
the horizon.
On its maiden voyage, Galaxy called at
by clients’ reactions since we announced this
The total cost of the vessel is expected to be
investment decision. It is our expectation, based
around $240 million, which Dockwise will pay in
on the latest discussions with customers, that
instalments in 2011 and 2012. The investment
we will surpass our initial revenue assumptions
has been fully financed by a successful rights
during the first year of operations. Clients have
issue and revolving debt facility that Dockwise
grasped the game-changing potential of the
completed towards the end of last year.
vessel and have made a valuable contribution to our thinking around the detailed design.”
several Chinese and South Korean ports picking
Dockwise owns a fleet of 19 purpose-built semi-submersible
vessels,
with
capacities
Dockwise believes there is a growing need
ranging from 4,000 to 73,000 tonnes. The
for vessels of this capacity, given market trends
group also has three additional engineering
in the oil and gas industries, where the company
centres in Houston, Breda and Shanghai,
derives most of its business. In particular, projects
which manufacture specific motion reduction
are getting ever bigger in scale as exploration
equipment, such as Leg Mating Units (LMU) and
The first in the latest Chipolbrok series,
and production is shifting from shallow water
Deck Mating Units (DMU).
Adam Asnyk
theBaltic Spring 2011 www.thebaltic.com
35
Heavylift, project cargo and offshore up heavy units and industrial project cargoes
are getting bigger and these new ships will have
in Korea or another site designated by the
destined for receivers in the US Gulf and
a greater cargo intake while retaining the shallow
Kellogg Joint Venture, Gorgon, to pick up the
Northern Europe.
draft capability that allows us to service smaller
first of its multiple voyage modules for transport
ports and undeveloped areas.”
to the Gorgon LNG facility on Barrow Island,
Adam Asnyk was the first in the series of six new ships, and was delivered towards the end of
Founded in New Orleans in 1990, Intermarine
Australia. As a result, Fairstar says that Fjord is
2009. She was followed last year by Chipolbrok
is the managing agent of the vessel operating
now scheduled to be fully utilised for a period of
Star and Parandowski, with the remaining two
companies Industrial Maritime Carriers, US
approximately two years from July 2011 at day
vessels, Kraszewski and Chipolbrok Cosmos
Ocean, Linea Naviera Paramaconi, and West
rates averaging over $80,000.
due to enter service by 2012.
Coast Industrial Express. These carriers have
The Fjell is also scheduled to arrive in Kenai,
a core fleet of about 30 vessels that focus on
Alaska in early July and will sail to Nigeria shortly
servicing heavy industry construction projects,
after the Fjord has departed. This vessel is due
Intermarine boosts capacity
power generation plants, oil field and mining
to discharge its cargo in Nigeria sometime in
US-based Intermarine is upgrading its fleet
developments. Collectively one of the largest
December 2011.
with the delivery of a series of multipurpose
project cargo carriers in the world, Intermarine
According to Fairstar, the total transportation
heavy lift carriers. The first two ships of the
offers an array of regular services between
solution provided by the company from Alaska
class, Industrial Freedom and Industrial Fighter,
North America, South America, and Asia, with its
to Nigeria is the first of its kind in the marine
entered service in the second half of last year,
primary US load centre being Industrial Terminals
heavy transport industry. A statement says: “The
and will be followed by two more sister ships,
in Houston, Texas, the largest project cargo port
complexity of combining the land transportation
Industrial Force and Industrial Faith in the first
in the United States.
provided by Mammoet and Premier Logistics with marine transportation interfaces is a
half 2011.
reflection of Fairstar’s growing reputation as a
Built in China, these so-called F-Series,
Alaska project gives Fairstar a lift
skilled project manager able to combine the
two 400 tonne cranes, capable of 800 tonne lifts in tandem, as well as one 80 tonne standard
Fairstar Heavy Transport has signed a letter
required to successfully execute a ‘door to door’
crane. With accommodation forward, the ships
of intent to provide a comprehensive land
logistics solution.”
are designed to provide greater flexibility in
and marine logistics solution to transport 115
Fairstar has two new 50,000 dwt heavy
handling large modules as well as when stacking
modules as well as related equipment for Agrium
lift ships on order in China at the Guangzhou
several tiers of lightweight cargo. Capable of a
Kenai Nitrogen Operations, from Kenai, Alaska,
Shipyards International facility. The Forte and
service speed of 17.5 knots, the 153.8 metre
to Ossiomo, Nigeria. The marine part of the
Finesse, both open stern, semi-submersible
long vessels are 23.2 metres in beam and have
transportation contract has an approximate value
vessels, will join Fjord and Fjell in the Fairstar
a draught of 8.5 metres.
of $25 million and will require both the company’s
fleet in 2012.The Forte will partner the Fjord in
Commenting on the expansion program,
heavy lift ships, Fjord and Fjell to mobilise to
service on the Gorgon project immediately upon
Intermarine president Andre Grikitis says:
Alaska in early July. Once Fjord has discharged
delivery by GSI in April 2012 and is expected to
”Although the shipping industry worldwide is in
its modules in Nigeria, it will immediately proceed
be under contract for at least 18 months from
a bit of a recession, we see continued growth in
to Angola where it is contracted to load FPSO
the delivery date.
the project sector, which will demand modern
components for the DSME CLOV FPSO project
Fairstar says it is highly optimistic about the
tonnage to meet transport requirements and
and sail with this cargo to the DSME Yard in
future of marine heavy transport services for
schedules. The size of reactors, fractioners and
Okpo, Korea. Subsequent to the DSME contract,
major energy and construction infrastructure
cracking towers at refineries and chemical plants
the vessel will sail to either the Hyundai Yard
projects. “We anticipate a future shortage
14,100 dwt heavy lift ships are equipped with
proper ships with the necessary imagination
of modern, open stern, semi-submersible, asbestos free vessels”, comments Phil Adkins, chief executive. “A year from now, Fairstar will be on the cusp of owning and operating a fleet of the newest, open stern, semi-submersible ships available. These ships will moreover be manned by some of the most experienced crews in the industry.”
Coscol steps up its presence Chinese shipping company Coscol is poised to step up its participation in the heavy lift market, following the delivery of the 50,000 dwt semisubmersible Xiang Yun Kou at the Longxue shipyard in Guangzhou, China, in January. It is the first of two sisterships ordered by Coscol, with the second vessel, Xiang An Kou, due to be handed over in June this year. Xiang Yun Kou is 216m long, 43m in breadth Fairstar’s Fjord is set for a period of intense utilisation
36
theBaltic Spring 2011 www.thebaltic.com
and has a submerged draft of 26m. The cargo
Heavylift, project cargo and offshore
Coscol’s latest heavy lift vessel, Xiang Yung Kou on delivery in Guangzhou
deck area is 178 x 43m and the vessel can take
simultaneous multiple wind turbine maintenance.
cargo units weighing up to 48,000 tonnes. As
The Sea-Wind WMV design is a submersible
a result the newbuilding can carry around 90%
dock ship with a large floodable dock accessible
of cargoes in the oil and gas industries, Coscol
from the stern. It will provide accommodation for
estimates.
wind turbine engineers, service personnel, ships
Coscol’s two new semi-submersible ships to
and support crew and can support.
join two existing vessels of this type, the 20,000
Discussions are said to be at an advanced
dwt Tai an Kou and Kang Sheng Kou, as well as
stage with a European shipping company and
its multi-purpose general cargo, ro-ro and pure
UK ship management company to deliver the
car carrier fleets, in offering a service to project
concept to wind farm operators who will be
cargo sector.
constructing Round 3 wind farms around the UK and European coast. Talks are also being held with interested ship yards.
Wind farm projects spark investment
around 187m overall length and will be fitted
The growing popularity of wind-based energy
with a DP2 dynamic positioning capability, a dry/
projects is triggering an upsurge of investment
wet dock, helicopter support facilities, cranes
in specialised craft designed to carry out such
for loading stores from support vessels, and
projects. The latest development is the signing
will have accommodation to cater for up to 200
of a letter of intent by Goah Offshore with
engineers.
The largest version of the design will be
STX Offshore & Shipbuilding, covering the design, development and construction of a multi-purpose wind farm development vessel, the Deepwater Installer. It is expected that the vessel will be built at the STX Dalian yard and will be designed to meet the needs of operators offshore UK. The 140m long vessel will be capable of transporting up to 16 wind turbines and will be fitted with a 1,600 tonnes capacity heavy lift crane. Meanwhile,
the
Anglo-Dutch
company
Offshore Ship Designers has launched a new offshore wind farm maintenance vessel concept intended to reduce the downtime of deepwater wind turbines and reduce maintenance costs and carbon emissions whilst offering a solution to the logistics problem of carrying out
The new Sea-Wind WMV design
theBaltic Spring 2011 www.thebaltic.com
39
• SA L | FULL-SERVICE HEAVY L I F T S H I P P I N G • INNOVATIVE T R A N S P O RTAT I O N A N D O F F S H O R E S O L U T I O N S
A joint venture with
MV “REGINE” LOADING 11 CAISSONS, 450 MTONS EACH, IN FREMANTLE / WESTERN AUSTRALIA • VESSELS ISM CERTIFIED • ISO 9001 CERTIFIED • ISO 14001 CERTIFIED
ENVIRONMENTAL
• OHSAS 18001 CERTIFIED
PASSPORT
SAL Schiffahrtskontor Altes Land GmbH & Co. KG 21720 Steinkirchen / Germany +49 4142 81810 • www.sal-heavylift.com
specializing in oversized, break-bulk and heavy lift cargo!
THE PROFESSIONALS FOR YOUR PROJECTS
www.wwpc.eu.com
Worldwide Project Consortium Ltd. Headoffice/Europe Wolfgang Karau Director Operational
Worldwide Project Consortium Ltd. Regional Office/Hong Kong Stuart Murdoch Director Administration
Phone : +34 690 708964 Fax : +34 952 660921 Email : wolfgang.karau@wwpc.eu.com
Phone : +852 212 67138 Fax : +852 212 67134 Email : stuart.murdoch@wwpc.eu.com
Heavylift, project cargo and offshore lifting capacity of up 2,000 tonnes. The two newbuildings also have a relatively high service speed of 20 knots, and can operate with an open hatch to accommodate oversized cargoes. Furthermore, these vessels are equipped with a Kongsberg Dynamic positioning system, to enable better positioning in offshore projects including the wind farm sector. The combination of speed, crane capacity and offshore positioning tools makes these vessels unique in the heavy lift sector, SAL claims, and in particular well-suited to the needs of wind farm installation work.
Beluga Cape Town takes to the seas Cape Town is not only Africa’s southernmost metropolis but also the name of a brand new project cargo vessel. On 24 January Beluga Cape Town set sail on her maiden voyage to transport oil and gas equipment from Mokpo, Masan and Pyeong Taek (Korea) to Skikda in Algeria. The vessel is the latest in the series of P-class ships and was built in China with design
The Rickmers-owned Hyundai Masan loads in Shanghai for its maiden voyage.
work supplied by the Dutch Volharding Shipyard.
Rickmers adds tenth MPC
The onboard cranes provide combined lifting
The Rickmers Group has taken delivery of
SAL increases operational flexibility
Rickmers Masan, its tenth MPC (multi-purpose
In March this year the German heavy lift operator,
designers have created an especially efficient
carrier). Built at the Jingling yard in China, the
SAL, will put its second Type 183 vessel into
hull form which reduces the flow resistance to
new vessel – now renamed Hyundai Masan – is
service, following on from the delivery of the
the level of much smaller ships.
the first in a series of four superflex heavy MPC
first in the series, Svenja, towards the end of
vessels that are being long-term chartered to
last year.
capacities of up to 800 tons, while the ship
Beluga Cape Town’s loading capacity amounts to almost 20,000 tonnes deadweight
Hyundai Merchant Marine (HMM) for a period
Working in collaboration with the German JJ
and she has box-shaped holds opening up more
of eight years. They will operate a new HMM
Sietas shipyard, SAL has developed a 12,000
than 86 metres. The list of features also includes
service linking the Far East with the Middle East.
dwt vessel type that incorporates two 1,000
adjustable tweendecks and an ice-strengthened
At just over 190 metres in length and with a
metric tons portside cranes with a combined
hull to allow her to sail through polar regions.
deadweight capacity of 30,000 tonnes, Rickmers Masan is similar to the Rickmers fleet’s Hamburg class ships, a type of vessel that has been deployed with success in
Rickmers-Linie’s
Round-
The-World Pearl String Service since 2002. The latest MPC is equipped with two 320 tonne cranes capable of twinning for a maximum load of 640 tonnes. Rickmers (Japan) Inc, the office of Rickmers-Linie in Tokyo, has
been
appointed
general
agent for HMM in Japan. As a consequence, Rickmers is now able to offer Japanese shippers the HMM Services to the Middle East, complementing RickmersLinie’s services to North and Central America. Beluga Shanghai, another P-class vessel, in action
theBaltic Spring 2011 www.thebaltic.com
41
Corporate viewpoint ZAMIL
Zamil Offshore Services Z
amil Group founded Zamil Offshore
Sufyan Al-Zamil
Services Co. in 1977, as a Saudi private sector company working in diversified offshore and marine business fields.
Today, Zamil Offshore Services is the largest and most integrated offshore and marine services company in the Middle East. Currently, the company provides a wide range of comprehensive, state-of-the-art solutions to all offshore marine businesses, especially those related to oil and gas. Zamil’s activities cover four marine business areas: • Owners and operators of the largest offshore support fleet in the Middle East • Premier and only shipbuilder and rig repairer in Saudi Arabia • Saudi sea ports operators • Engineering
and
construction
Hassan Abouraya
services
contractors
Gearing up for growth Next March, Zamil Offshore Services will launch its MV Zamil-64, the second largest DP2
m2 from the Saudi sea ports and designed a
Zamil is preparing to expand its service
new shipyard, the construction of which will
provision to the offshore oil and gas industry
commence this year. The total budget allocated
by diversifying in drilling, oil spill control
for this expansion alone is almost $150 million.
and acquisition of lift barges for use in the maintenance of platforms and installation of
multi-purpose offshore support vessel, which
Zamil Offshore is a leading player in the
is currently under construction at its Dammam
region’s offshore industry, and currently operates
shipyard. On the same day it will deliver its sister
a fleet of 53 vessels, of which 46 are owned
While Zamil expands regionally and eventually
vessel, Zamil-63.
and seven chartered. Its planned expansion
to the South East Asian offshore sectors, Hassan
wind farms.
The new offshore multi-purpose vessel is
of its fleet is ongoing, through newbuildings,
Abouraya, Zamil’s strategy development and
designed to meet the highest international
partnership with other offshore vessels owners,
international marketing consultant, is confident
standards. It was built at Zamil Shipyard located
and acquisition of new vessels. It has also
that there will also be substantially more work
inside King Abdul Aziz Port in Dammam; Zamil
started an aggressive plan to expand into other
coming its way in the Middle East. He points
64 is the second largest offshore support vessel
regions, such as South East Asia and Latin
out that Saudi Aramco is growing its offshore
of its kind to be built in the region. Zamil’s
America.
activities to the tune of $200 billion in the Middle
shipyard building program includes nine more
In April, Zamil will activate its branch in
vessels under construction, in addition to three
Singapore to use as the spearhead to the
harbour tugs on its order book.
company’s global aspirations.
Major expansion
covers the specialised field of providing several
Zamil Al-Zamil, chairman and founder, along
offshore and onshore services for Saudi
with president, Sufyan Al-Zamil, feel the time is
Aramco. These comprise an offshore hook-
right for the company to look beyond the local
up project (maintenance, upgrade, modification
market.
East Gulf and the Red Sea, presenting plenty more opportunities.
As for its engineering services, it currently
and commissioning support for Aramco’s rigs
P. O. Box 1922, Khobar 31952, Kingdom of
Zamil’s success in establishing shipbuilding
and platforms in the Arabian Gulf), an Abu Ali
Saudi Arabia.
in Saudi Arabia has whetted its appetite for
onshore pilling project, a McDermott Manifa
Tel:+966 3 882 2494 Ext 213
expanding its shipbuilding and shiprepair
project, a project for MOPOS, and the H2S
Fax: +966 3 882 3235
facilities. Currently, Zamil has acquired 200,000
evacuation project.
Web: www.zamiloffshore.com
theBaltic Spring 2011 www.thebaltic.com
43
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Organisers
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PLAN NOW TO ATTEND The Global Perspective: Norwegian offshore has attracted its share of global investors for good reason as the nation’s players have risen from modest beginnings to become world leaders in the sector. Many Norwegians point to innovation as the key, while others say speculative ordering has been the largest factor behind Norway’s success. But what do the international players think? Is Norwegian know-how providing the gateway to deepwater riches? But is Norway exporting its offshore advantage to tomorrow’s sector leaders? While the flipside of innovation is huge prices on assets, the flipside of speculation is over-ordering – so do the benefits outweigh the damage? A high-level panel of well-known international business leaders, all with various ties to the Norwegian offshore arena, will bring their global perspectives to the sector. A series of short introductions will be followed by an open discussion. Offshore Marine Broker’s panel discussion Technology and Innovation • Design, building and operating the next generation of PSV’s, AHTS and Subsea. • What do charterers want? • How to meet charterers needs before they know. • Getting ideas from the deck to the boardroom and then into new designs. • Innovation and the technology drain • Operating in ice – could Deepwater Horizon play out in the Arctic? Offshore Marine as an Investment • Exploring the right business model for PSV operators • Achieving the right fleet and balance sheet • Shareholder shudders – coining capital for white elephants? • Post 2008 recalculation of risk, is there any financing for smaller, private investments? Organisers
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Global leader in ocean towage
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phone + 31 10 240 25 00 fax + 31 10 240 25 99
email sales@fairmount.nl www.fairmount.nl
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Towage and salvage
Offshore keeps towage sector busy A round-up of news from across the sector
UK to cut emergency tugs
approaches, English Channel and southern
the beginning of the year, when the 56,000
T
North Sea would probably be adequately served
dwt bulk carrier Moondance II ran aground
he UK’s Maritime and Costguard
by commercial salvage but that northern and
on the edge of a coral reef approximately 25
Agency has announced that it will
Scottish coasts would be exposed to marine
miles off Borneo. The vessel, laden with some
cease providing permanently stationed
casualties and pollution risks.
51,000 tonnes of coal, ran onto the reef on 4
salvage tugs from September 2011.
The decision to cut both coastguard services
January 2011. A salvage team, consisting of
The news comes as part of deep cuts in gov-
and the provision of permanently stationed
the salvage master, salvage officer, engineers,
ernment spending on the MCA, including the
salvage tugs has been widely criticised by
naval architects, divers and riggers was flown
closure of several coastguard stations around
seafarers’ unions, in particular by Nautilus and
out from the Netherlands and Greece, and a
the UK.
Prospect, which have made a joint submission
salvage plan was put together whilst waiting for
The UK provides four contracted emergency
to the UK government calling for a review
the tug to arrive on location on 13 January. In
towage vessels (ETVs) stationed at strategic
of the cuts. “We are particularly concerned
order to float the vessel off, it was first necessary
points around its coast, the Anglian Prince,
that the government spending cuts will have
to lighten the vessel, which meant discharging
Anglian Princess, Anglian Sovereign and Anglian
seriously detrimental effect on the MCA’s
some 18,000 tonnes dwt into three chartered
Monarch, operated by JP Knight on behalf of
ability to discharge vital safety duties and will
barges. The vessel was successfully refloated
the MCA. According to the International Salvage
exacerbate existing problems that have been
on 30 January, and the cargo reloaded by 1
Union (ISU), standing down the vessels will save
identified in previous investigations,” Nautilus
February. The vessel was returned to the owners
the UK some $50 million.
said in a statement. “The unions do not believe
on 2 February.
The government said that state provision
the MCA has been given the resources and
of ETVs does not “represent a correct use
staffing it needs to meet increasing national and
of taxpayers’ money” and that ship salvage
international regulatory responsibilities which
should be “a commercial matter between
could have serious consequences.”
Fairmount benefits from offshore boom
a ship’s operator and the salvor”. In short,
The submission from the unions warns of
Activity in the offshore sector has continued to
the government should not be the salvor of
severe consequences if the proposed cutbacks
provide employment for Fairmount Marine, on
last resort. Shipping Minister Mike Penning
go ahead. It calls on the government to reassess
both the towage and the search and rescue
said: “I understand the concern felt by some
the shipping policies laid out in the Charting a
side. The increasing size of oil installations
communities about our decision to withdraw
New Course programme and work with all sides
continues to provide a challenge, with Fairmount
these ETVs, but if we are to tackle the deficit
of the industry to set agreed strategic goals and
commencing the towage of the ultra large
then difficult decisions must be made. The reality
objectives for the UK maritime sector.
FPSO Pazflor from Daewoo Shipbuilding &
is that since their introduction in the 1990s,
Marine Engineering’s shipyard in Okpo, Korea to
these tugs have attended very few incidents.
Angola. The Pazflor is one of the largest FPSOs
Should a ship get into difficulty, we are confident
Tsavliris salvage Moondance
ever constructed, at 325 metres long, 61 metres
the commercial salvage sector is prepared to
Tsavliris Salvage International carried out what
wide and with a towing draught of about 8
offer sufficient assistance.”
it describes as a “major salvage operation” in
metres. Accordingly, it requires three tugs with
a particularly environmentally sensitive area at
a combined bollard pull of over 600 tonnes to
theBaltic Spring 2011 www.thebaltic.com
47
The ISU said in a comment that the western
Towage and salvage tow the Pazflor over 10,000 nautical miles to its final destination, 150 miles offshore the coast of Angola, where it will be positioned and moored by a specalist team from Fairmount Once in operation, the platform is expected to produce some 220,000 barrels of heavy oil per day. The Pazflor project is lead by Total as operator. The Pazflor oil field was uncovered in 2003 and covers an area of about 600 square kilometres at a water depth of 1,200 meters. This was one of a number of similar projects undertaken by Fairmount recently, including towing BP’s newbuilding FPSO Skarv Idun from Okpo to Norway, via Singapore and the Cape of Good Hope. The tow is some 15,000 nautical miles, and is expected to take around 100 days. Preparation for the tow, carried out by the Fairmount Sherpa and Fairmount Summit took almost two years. The importance of good preparations was highlighted earlier in October last year, when Fairmount tug Fairmount Fuji was contracted to assist in the search for the Attalya, a vessel which had been lost due to a broken towline in bad weather off the coast of South Africa. On arriving at the last reported location, there was no sign of the vessel. Fairmount reports that due to the combined efforts of the tug’s master, the Fairmount office team and a meteorological partner, the tug was able to follow the most likely drift pattern, and track down the vessel some 100 miles off the South African coast.
New tug for Multraship Dutch towage and salvage company Multraship has added two Azimuth stern-drive multipurpose tugs to its fleet. Both tugs are designed to operate in a range of environments, increasing the capacity and flexibility of Multraship’s fleet. Multratug 18 is 35.7 m loa, with a moulded beam of 1,150 metres, and is designed for a multi-role capability for harbour, escort and sea towage as well as fire-fighting and salvage roles. It is chiefly employed in a deep-sea role, but can be deployed as and when needed in the River Scheldt area. The vessel has FiFi 1 fire-fighting, salvage, escort towage and oil recovery notations, and is powered by two ABC diesel engines, which deliver 70 tonnes bollard pull. It has a double drum winch aft and a single drum winch forward and a free running speed of 13.5 knots. It is classed by Italian classification society RINA and is registered under the Dutch flag. Multratug 3 was built in Vietnam by Damen Shipyards and delivered to Terneuzen in late December 2010. Multratug 3 will mainly operate for Antwerp Towage NV, a 50/50 joint venture between Multraship and Fairplay Towage, but will also be available for emergency response work, including fire-fighting, in the River Scheldt area. With FiFi fire-fighting, a maximum bollard pull of 94.7 tonnes, an overall length of 32.14 metres, and a beam of 13.29 metres, the vessel is capable of a speed of 14.7 knots. It is classed by Lloyd’s Register and is registered under the Dutch flag. It is currently the
Multratug 18
48
theBaltic Spring 2011 www.thebaltic.com
Towage and salvage
Multratug 53
Saving the Fredryk Chopin
was dismasted in a force 9 gale in the Bay of
Multraship has also recently upgraded its
One of the highest profile towage operations
Biscay at the end of October with 47 people on
floating sheerlegs Cormorant to 600 tonnes
in the UK last year was initially carried out,
board, 36 of whom were teenage cadets. Three
lifting capacity.
not by a salvage tug, but by a fishing vessel.
vessels in the area, including the fishing vessel
The Polish sail training vessel Fryderyk Chopin
Nova Spiro were able to reach the vessel, and
strongest tug in the area.
the Nova Spiro managed to get a line on board and take the tallship in tow. According
to
Peter
Hicks,
coxswain of the St Mary’s lifeboat, who was directing the operation: “The ship was rolling heavily in a big swell with all the rigging hanging over the starboard side. If we were to take anyone off it would have had to have been on the port side in a rise and fall of over 10 feet. “It was a difficult decision not to take anyone off but, basically, the people were safer on the vessel even though it was in some sort of distress. We could have done it if we had to, but the master was happy to leave them aboard.” The lifeboat stood by the casualty through the night until a tug, Independence from Alderney, arrived on the scene at 7.30 in the morning to tow the tallship back to Falmouth.
theBaltic Spring 2011 www.thebaltic.com
49
Shipmanagement at its best Doris & Naess stands for Doris Maritime Services S.A. Naess Ship Management B.V. Pearl Grace Shipmanagement Inc.
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
You’re in good hands
Shipmanagement, crewing and education
Meeting new challenges News round-up
Identifying early warning signals
information reaches those in leadership roles,
the overall quality of shipping. We are therefore
how they understand that information and what
looking forward to wide application of the KPI
A
actions they then take. We see this report
methodology within the industry.”
new collaborative report released by
as providing the framework for how such
Pledging to take part in further stakeholder
the Energy Institute, Lloyds Register
information is gathered and used, particularly on
workshops, IFSMA declared it “is fully supportive
& the UK Health & Safety executive
the challenging human factors issues.”
of this project, which we believe is making a
aims to provide the shipping industry
Identifying leading performance indicators
with a way to measure the effectiveness of their
for the human element will help companies
safety regimes, particularly with regard to the
to identify the areas in which they need to
Looking forward to “wide application of
human factor.
proactively manage the factors that affect
the KPI methodology within the industry,” the
great contribution in establishing and raising the quality of shipping”.
The report is a collaborative effort between
workforce performance before it becomes a
Nautical Institute said: “The InterManager KPI
the Energy Institute, Lloyd’s Register, and the
problem, while demonstrating the appropriate
project is one of the shipping industry’s major
UK Health & Safety Executive. “This report is
levels of control to stakeholders such as
initiatives to globally raise the quality of shipping.
significant in that it proposes a set of metrics and
regulators and insurers.
[...] The active and constructive participation of
provides information that will allow the process
so many important players from various sectors
industry to accurately measure the human
of the industry has added value and authority
factors that affect the safety performance of
KPI project gains support
the organisation. It particularly focuses on how
InterManager’s Key Performance Indicator (KPI)
At the InterManager AGM in November last
the workforce interacts with high-risk assets,”
project, which is developing a pan-industry
year, the KPI project steering group announced
said Richard Sadler, chief executive, Lloyd’s
“standard measurement tool” to measure the
that it has now finalised 66 relevant performance
Register. “What recent investigations of industrial
performance of shipmanagers, has received
indicators.
incidents continue to show is that strategies
important endorsement from several leading
for asset safety are not enough. Effective risk
organisations,
management must include the human part of the
Commission, the International Federation of
interaction between people, plant and process,
Shipmasters’ Associations (IFSMA) and the
Warsash launches fatigue study
and that is why we continue to invest heavily in
Nautical Institute.
The UK’s Warsash Maritime Academy is to carry
this particular area.”
including
the
to the project, which bodes well for the future.”
European
“The first real life application results of the
out a detailed study into the effect of fatigue
Sadler says there have been big improvements
KPI methodology look very promising to us,”
on working practices. A week-long experiment
in asset quality and management systems over
said a letter from the European Commission.
at Warsash will examine the problems of sleep
the past decade, leaving human factors as
“As you know, the European Commission’s
deprivation over several ranks with a group of
the final frontier where significant advances in
aim in the regulatory area is to establish a
volunteers.
workplace safety still can be achieved.
comprehensive set of European rules (while
The experiment will be set up to mimic as
Rob Miles, head of human and organisational
also aiming for global harmonisation of rules),
far as possible the interruptions to rest faced by
factors, Offshore Division at HSE, said: “During
defining necessary minimum standards. We
crews, and particularly watchkeeping officers.
our inspections and investigations, we are
welcome very much industry’s effort such as
The experiment will concentrate on watches with
placing increasing emphasis on the role of
the KPI project to voluntarily go beyond these
differing working hours, including four on six off
safety-leaders. A key element of this is what
minimum standards and help to further raise
and six on six off.
theBaltic Spring 2011 www.thebaltic.com
51
Green shipping
Cleaning up Can modern ship design help the environment and the bottom line at once?
L
Looking beyond bunkers
loyd’s Register and Shanghai-based
In addition, both companies have committed
Bestway Marine Engineering Design have
to return to the drawing board to see what
While the Emerald class project relies on
completed a joint project to develop a
further practical gains can be made with 35,000-
tweaks in the design of the vessel to make
more environmentally-friendly and effi-
dwt and other ship designs to answer calls from
existing propulsion systems more efficient, other
the market for more efficient ships.
research has been looking at moving away from
cient bulk carrier. The classification society said that initial test results on the ‘Emerald’ design
It is not just in terms of bulker design that
bunker fuel altogether. This option is becoming
bulker far exceed the fuel-saving targets set for
changes are being made; Germanischer Lloyd
increasingly attractive as MARPOL regulations
the project.
(GL) subsidiary FutureShip says that it has
on sulphur emissions continue to tighten, forcing
According to provisional data from the
significantly improved the lines of a design to be
bunker prices upward. DNV, for example, has
project, the new design for a 35,000 dwt
used for a series of 9,000 TEU containerships
unveiled a new LNG-fuelled crude oil tanker
bulk carrier will achieve an 18% improvement
in a joint venture with the Chinese design office,
concept that it claims has a hull shape that
in environmental efficiency over comparable
Maric. As a result of the optimisation, a smaller
removes the need for ballast water and will
previous versions when measured against the
main engine can be installed than originally
almost eliminate local air pollution. DNV says
IMO’s Energy Efficiency Design Index, a method
anticipated. The fuel consumption is reduced by
that its concept vessel Triality also recovers
by which a ship’s CO2 efficiency is measured.
more than 10% and CO2 emissions are cut by
hundreds of tonnes of cargo vapours on each
more than 90 tonnes per day.
voyage and represents a major step towards the
“This project clearly demonstrates what can be achieved through the power of technical co-operation,”
said
Nick
Brown,
Lloyd’s
Register’s country and marine manager, China. “It showcases our technical expertise and ability to provide timely insights and support to innovative designers such as Bestway right from the initial design stage. This project also highlight the leadership Bestway is taking in the area of ship design. We are confident about working together again with Bestway on safe and efficient designs in the future.” The new ‘Emerald’ design exceeded targets in a number of key areas: it reduced the handysize model’s steel weight by 12%, making room for more revenue-generating cargo without increasing fuel consumption (the target was a 10% reduction); it also reduced fuel consumption by 19.5% (the target was 15%). The project was started in 2009 to research the commercial, functional and design feasibility of developing environment-friendly, low-carbon, economical bulk carriers. Lloyd’s Register reports that owners in Asia and in Europe are showing interest in the innovative vessel designs and Bestway is now applying the design criteria
© DNV/Making Waves
to a number of different sized bulk carriers.
52
theBaltic Spring 2011 www.thebaltic.com
Ship recycling When quali does matter Maersk Ship Recycling yes
no
Safe: Environmentally Sound: Responsible and Sustainable: Transparent: According to IMO convention:
yes
Approved by EPA: Lauded by NGOs: In dialogue with ILOs: Certified by Classification Societies: Beaching:
Our services include:
Inventory of Hazardous Materials (IHM) ‘Green Passport’
Ship Recycling Plan Waste Management
Control & Supervision of Ship Recycling Process
Yard Assessment Health & Safe Training
Delivering our promises Find out why other ship owners have chosen us: T: +31 (0)10 712 7959 • E: shiprecycling@maersk.com www.maerskshiprecycling.com
no
Exhaust Gas Cleaning Aalborg Industries’ combined exhaust gas cleaning system offers maximum flexibility and the operational costs are kept to a minimum. n The largest exhaust gas scrubber (21 MW) installed n SOX removal rate equivalent to 0.1% sulphur in fuel n In compliance with MARPOL Annex VI – MEPC 59 n Particulate matter (PM) trapping up to 80% n Short payback time (1 to 2 years) n Well-proven technology n Flexible hybrid solution n Cost-saving solution
exhaust-gas-cleaning@aalborg-industries.com exhaust-gas-cleaning@aalborg-industries.com
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Waste Heat Recovery For fuel efficiency improvement, the waste heat from the exhaust gas represents the greatest potential savings for the benefit of shipowners and charters. n Fully integrated and automatic operation n Up to 12% immediate fuel savings n Environmentally friendly solution n Improved operational costs n Optimised system design n Reduced CO2 emission n Well-proven concept n Short payback time n EEDI improvement
marine-boilers@aalborg-industries.com marine-boilers@aalborg-industries.com
www.aalborg-industries.com
Green shipping
© DNV/Making Waves
new environmental era for the tanker shipping industry.
commercial shipping.
According to the JRC, technical solutions
“This a very exciting project,” said Lloyd’s
to reduce fuel consumption, air pollutants and
While many in the bunkering and shipping
Register ceo Richard Sadler. “We believe that
greenhouse gases are readily available and
industries remain sceptical that there will be a
as society recognises the limited choices
range from better ship design, propulsion and
mass switch to LNG in the short or medium
available in the low-carbon, oil-scarce economy
machinery, to optimised operation.
terms, this option has been receiving a lot of
– and as land-based nuclear plants become
publicity in recent months.
commonplace – we will see nuclear ships on
DNV CEO Henrik Madsen, says: “I am convinced that gas will become the dominant
specific trade routes sooner than many people
ISRA moves on recycling
currently anticipate.”
While most moves towards improving shipping’s
fuel for merchant ships. By 2020, the majority
While the introduction of nuclear, and
environmental footprint are aimed at improving
of owners will order ships that can operate on
even LNG, powered ships is likely to remain
the performance of new and existing ships,
liquefied natural gas (LNG).”
controversial for some time to come, a new
the issue of recycling and disposal is also a
Switching the commercial fleet to LNG fuel is
report from a European Commission Joint
key question. At the recent International Ship
certainly a bold proposal but is outdone in that
Research Centre (JRC) recent study by the EU
Recycling Association (ISRA) meeting in Hong
regard by the increasingly serious suggestions
has highlighted both the need and the demand
Kong, members called for a fast ratification of
that nuclear power should have a role in powering
for reducing carbon emissions and air pollution
the IMO Hong Kong Ship Recycling Conference
part of the world’s merchant fleet. News came in
in the shipping sector.
as a minimum standard to go forward in ship
November that members of a new research
‘Regulating air emissions from ships: the
consortium, which includes Lloyd’s Register,
state of the art on methodologies, technologies
Newly elected chairman Adem Simsek,
Enterprises Shipping and Trading, Hyperion
and policy options’ highlights the uncertainties
managing director of Simsekler Ship Recycling
Power Generation and BMT Nigel Gee, are
due to lack of data regarding ships’ emissions.
Ltd. Co., Turkey, said as new chairman of
to examine the marine applications for small
It details the legal and economic/commercial
ISRA he is delighted to continue leading the
modular reactors (SMRs).
problems associated with any attempt to bring
environmentally sound and safe ship recycling
shipping within the EU Emissions Trading
yards towards a greener world. “I would like
System.
to stress the importance of a continuously
The consortium plans to investigate the practical maritime applications for small modular
recycling.
reactors as commercial tanker owners search
The JRC says: “Although maritime transport
improving process of ship demolition and waste
for new designs that could deliver safer, cleaner
has the lowest ratio of CO2 emissions per tonne,
management for all of us.” ISRA members have
and commercially viable forms of propulsion
its GHG emissions are expected to significantly
more than sufficient capacity to handle all green
for the global fleet. It believes nuclear power
increase from currently around 1 giga-tonne per
ship breaking requirements, with green recycling
is technically feasible and has the potential to
year, by an estimated 150-200% over the next
capacity rapidly to be increased following a
drastically reduce the CO2 emissions caused by
four decades.”
growing demand, Simsek said.
theBaltic Spring 2011 www.thebaltic.com
55
Corporate viewpoint Hempel A.S.
Save now. Save later
Complete fouling release concept from marine coating technology leader, Hempel order to reduce their CO2 emissions, but finding
Peter Thorlaksen was part of the R&D team
effective ways to meet these targets can be a
at Hempel that developed Hempasil X3. “There
challenge. And that’s where Hempel’s fouling
are already self-cleaning antifouling products
release concept can help.
that work at speeds above 15 knots. But when a ship moves slower, there’s not enough friction
Invisible hull coating guarantees fuel savings
to clean off the organisms. We deliberately
A leading supplier of marine and industrial
ability at low speeds and to ensure that fewer
paints, Denmark-based Hempel has developed
organisms settle on the hull in idle periods,”
the most effective antifouling coating system
explains Peter.
created Hempasil X3 to maintain its self-cleaning
hydrogel
The longer the vessel is slime-free, the better
technology, Hempasil X3 fools fouling organisms
its performance and operating budget. Now
(from biological slime and seaweed to barnacles)
in its third generation, the proven Hempasil X3
into thinking a ship’s hull is liquid, essentially
formula provides a good return on investment
rendering the hull invisible so the organisms
and typically saves vessel operators between
don’t attach. The result – a smooth hull that sails
4-8% in fuel costs within the first year of
smoothly through the water – means less fuel
application.
available.
Based
on
pioneering
is needed to propel the vessel because there is
T
less friction.
Potential for massive CO2 reduction
he shipping industry can now save time
In fact, Hempel is so confident in Hempasil
and money in the drydock, as well as at
X3’s antifouling performance that it guarantees
To back up Hempel’s fuel savings guarantee, the
sea, with the Hempasil X3 package, the
fuel consumption will decrease. And reduced
Hempasil X3 package also includes SeaTrend®
third generation of Hempel’s pioneering
fuel consumption means less CO2 is emitted,
software. An onboard reporting tool, SeaTrend®
fouling release coating technology. With fuel sav-
which of course results in a smaller carbon
helps shipowners monitor Hempasil X3’s fuel
ings guaranteed and therefore lower CO2 emis-
footprint. Furthermore, Hempasil X3’s biocide-
saving effects for themselves.
sions, Hempel’s latest fouling release concept is
free composition and minimal VOC level
Torben Rasmussen, Group Product Manager
already creating waves in the shipping industry.
strengthen its environmental credentials and
at Hempel, believes that this complete package
also ensure that solvent emissions are kept to
has been key to gaining market recognition.
an absolute minimum.
“Hempasil X3 has already been applied to
For many shipowners, fossil fuel costs not only place a huge strain on operating budgets,
several container vessels, bulk carriers, tankers,
they also make up a substantial part of their
Documented results – long term savings
very large crude carriers, navy vessels, fast
a viable solution for some vessels and help operators reduce costs and CO2 emissions.
Although fouling release coatings have been
SeaTrend® to track their results – and so far
However, despite slow steaming, container
around for years, the hydrogel in Hempasil
the feedback has been extremely positive. To
operators, for example, still spend up to 80% of
X3 makes it unique. Containing non-reactive
date, Hempasil X3 has saved our customers
their total operating costs on fuel.
polymers, Hempasil X3 can do something that
probably more than USD 30 million in fuel bills –
ecological footprint. Slow steaming may be
ferries and cruise ships. Shipowners are using
facing
other fouling release coatings can’t: it offers
and reduced global CO2 emissions by 200,000
increasing pressure from governments and
active protection from fouling organisms for up
tonnes. But potentially, it could do a lot more.
legislative authorities to reduce its greenhouse
to seven-and-a-half-years – and is still effective
If applied to the entire world fleet, it could save
gas emissions. In response, many shipowners
if the vessel operates at low speeds or activity
the world from 90 million tonnes of CO2 a year,
have set their own environmental targets in
levels.
the same amount of CO2 emitted from Greece.”
56
theBaltic Spring 2011 www.thebaltic.com
The
shipping
industry
is
also
Corporate viewpoint Hempel A.S. as poor adhesion between coats. But Nexus X-Tend reduces the number of steps in the repair and touch-up process of damaged areas, making it easier to paint over an old fouling release coating and thereby speed up the drydock process.” Hempel estimates that Hempasil Nexus X-Tend could save customers up to USD 100,000 on dock rent, surface preparation time and vessel inactivity when a vessel is undergoing drydock maintenance.
Awards acknowledge Hempel as technology leader To date, Hempasil X3 has picked up five product awards, including the internationally recognised Seatrade Award for the Protection of the Marine and Atmospheric Environment, the Ingeniørens Product Award, given by the Danish Society of Engineers’ magazine, the Frost & Sullivan Award for Product Differentiation Innovation of the Year and the Eurocoat Golden Coat Award for the best technical communication of a product. And
Latest developments ensure extended dry docking
Streamlined drydock process
in late 2010, Hempasil X3 won Lloyd’s List DCN
A tiecoat created specifically for repair and
Environmental Transport award.
With Hempasil X3, it’s now possible for owners of
touch-up procedures, Hempasil Nexus X-Tend is
With fuel savings guaranteed both in the
container vessels, dry cargo vessels and MPVs
used when applying a new coat of Hempasil X3
short and long term, the Hempasil X3 package
to keep their vessels out of dock for seven-and-
to an existing fouling release coating. Hempasil
not only keeps vessels at sea for longer and out
a-half-years. All major classification societies
Nexus X-Tend increases drydock efficiency by
of drydock, it is also an effective way of meeting
now have survey schemes for extended dry
reducing the number of steps a vessel goes
increasingly stringent environmental regulations
docking (EDD), which gives shipowners the
through in the dock.
and reducing a vessel’s environmental footprint.
opportunity to save money now by reducing
“Nexus X-Tend makes using Hempasil X3
And with worldwide recognition for innovation
their drydocking costs and keeping their vessels
as simple as using a conventional antifouling
from a number of high profile organisations, the
in operation for longer periods of time.
coating,” says Torben Rasmussen. “In the past,
future is looking brighter for shipowners and
When it first came to market, the Hempasil
spot repair was time consuming and complex
operators around the world.
X3 package included the Nexus tiecoat for fully
and often led to substandard results, such
blasted hulls. Hempel has since introduced two new tiecoats to the Nexus range.
One coat solution The patented Nexus X-Seal tiecoat eliminates the need for full-blasting and makes it possible to seal existing conventional antifoulings before applying Hempasil X3. Intended for situations where the anticorrosive system is still intact, such as relatively new ships docking for the first or second time after newbuilding, this solution can save shipowners between 40-45% compared to the cost of full-blasting and applying Hempasil X3 from scratch. Unlike other solutions on the market, Nexus X-Seal is a one coat solution. Not only does this significantly reduce the time and costs involved in drydocking, it also makes the conversion from a conventional antifouling system to a fouling release system very smooth. “You can say that our R&D team has succeeded in combining a linkcoat and a tiecoat into one single coat, which means big savings on application costs,” adds Torben Rasmussen.
theBaltic Spring 2011 www.thebaltic.com
57
Corporate viewpoint Advanced Polymer Coatings
APC continues tank coating success
MarineLine® 784 coating system used for chemical tankers now also specified for the growing product tanker market
A
dvanced Polymer Coatings (APC),
tect against a wide range of chemical cargoes,
formation of free fatty acids that can attack and
Avon, Ohio, USA, has developed a
including methanol, acetic acid, and caustics.
corrode exposed coating surfaces. Bioethanols, derived from the fermenting of
successful business by providing the
A growing business
sugar cane, sugar beet, sorghum, corn, wheat
coating system to line and protect the tanks of
The company is now realising further MarineLine®
and cassava, or starch crops, remain as a single
chemical carriers. Today, more than 350 mari-
growth by serving the product tanker market.
chemical compound. A problem occurs if small
time tankers are employing MarineLine® to pro-
Shipowners are now retrofitting and refurbishing
quantities of water are dissolved in gasoline/
older product tankers to carry a host
bioethanol blends, causing a highly corrosive
of newer cargoes such as biofuels,
situation within the tank.
high-performance MarineLine® 784
a particular sector growing at an estimated 15% annually. However,
for Chemical Tankers
due to the corrosive nature of the
THE tank coating system for handling aggressive chemical cargoes.
cargoes and their detrimental effect and breakdown of conventional tank
coatings,
shipowners
are
concerned about carrying biofuels.
Transport all IMO cargoes, especially aggressive acids, solvents and alkalis, with MarineLine® 784 tank coating system. The coating uses an impermeable polymer-based technology to ensure cargo product purity from port to port.
MarineLine®’s
unique
corrosion-
resistant coating is an ideal answer. Biofuels comprise two categories, Base Coat
Top Coat
each with separate corrosive issues: Biodiesels
or
FAMES
(fatty
acid methyl esters), derived from vegetable
oils
(palm,
coconut,
rapeseed, soyabean and tallow, and Advanced Polymer Coatings Avon, Ohio 44011 U.S.A.
animal
fats),
have
higher
viscosities and are more unstable than conventional diesel fuel. Water contamination is a key problem as FAMES absorb water through seawater ingress, tank washing residues, humidity in tanks, and
+01 440-937-6218 Phone +01 440-937-5046 Fax www.adv-polymer.com
58
other sources. Water can promote
The newly coated MarineLine® 784 cargo
hydrolytic reactions, leading to the
tank coating
theBaltic Spring 2011 www.thebaltic.com
Corporate viewpoint Advanced Polymer Coatings by structural issues, such as weld seams, edges, corners and others. That is why it is vital to ensure surface preparation is done in accordance with recommended specifications, and care is taken to avoid contamination during the coating application. Following
the
pre-work,
blasting
and
application phases, the cargo tanks are heat cured with forced hot air, to exacting specifications, to fully cross-link the coating to provide unmatched chemical resistance. Inspection of the coating process is performed during the entire process of the application by experienced, qualified personnel, to ensure the cargo tanks have been coated to high quality standards. After final inspection and A
MarineLine®
approval, the vessel is ready to carry cargoes
inspector spark testing the top coating application
recommended by the coating manufacturer after leaving the shipyard.
The most effective solution is to line the tanks
all excellent environmental advantages. Faster
of the product carriers with MarineLine® 784.
cleaning also leads to prompt turnaround, so
MarineLine® 784 is provided with a semi-
This coating uses a tightly knit, cross-linked
chemical carriers can go back into service
gloss finish, in either standard grey, or a new
organic-inorganic polymer structure to create a
quickly, maximising the usage of the vessels,
ivory colour. The coating is offered in 5 gallon
nearly impermeable barrier. The coating resists
another green benefit.
(19 litre) and 1 gallon (4 litre) kits with catalyst.
chemical and corrosive attack from a wide range
MarineLine® 784, which is sometimes
of aggressive cargoes and assures product
referred to as ‘liquid stainless steel’, is coated
purity from port to port, virtually eliminating
directly onto the carbon steel substrate of the
tainted cargoes from occurring, a real problem
ship’s tanks. This replaces the need to fabricate
for conventional coatings that are trying to
tanks made of stainless steel, which can be
For more information on the MarineLine®
carry biofuels and other cargoes such as CPPs,
very costly. It is estimated by APC that a carbon
784 tank coating systems, contact:
PFADs, and methanol.
steel tank coated with MarineLine® 784 costs
Advanced Polymer Coatings
less than one-sixth of the price for an equivalent
Avon, Ohio 44011, USA
A proven resource
tank fabricated in stainless steel, thus further
Tel: +01 440 937-6218
MarineLine® 784 is already the chosen coatings
preserving resources of the shipowner and
www.adv-polymer.com
solution in the chemical tanker industry, carrying
shipyard.
thousands of different types of aggressive chemicals, including the full range of IMO chemicals.
Proper application a key
Many benefits separate MarineLine® 784
One of the most important aspects
from other types of coatings, and also from
to the success of MarineLine®
stainless steel tanks. These include ease of
784 is proper preparation and
cleaning, assurance of high cargo purity, and the
application. APC has developed a
flexibility to carry and then switch many different
six-step application programme to
types of cargoes. The market for MarineLine®
ensure the tanker owner has many
784 continues to expand as more shipowners
years of profitable service with the
and chemical producers in the industry realise
vessel. These steps include:
the high performance and versatility of this
1.
Pre-blast preparation
protective coating for handling hazardous
2.
Blasting
cargoes.
3.
Spray application
for Chemical/Product Tankers THE tank coating system for carrying CPPs, PFADs, Methanol, and Bio-Fuels. Rely on MarineLine® 784 tank coating to handle a wide range of cargoes carried by chemical and product tankers. MarineLine® 784 offers enhanced corrosion resistance compared to phenolic epoxies or zinc silicates, at a similar cost. It is faster and easier to clean, with higher cargo purity.
4. Inspection
A ‘green’ coating The
MarineLine®
784 cargo tank lining system
5.
Heat cure, and
6.
Final inspection.
delivers on green principles that have become
Not all other tank coating
so necessary in today’s business environments.
manufacturers employ these steps;
The extremely smooth, hard, slick surface of
however, they have been proven
MarineLine® 784 makes tank cleaning an easy
very effective for MarineLine®.
process. During port changeover, no extensive
Every coating faces inherent
cleaning chemicals are needed to wash the tank
problem areas within a cargo tank.
walls, thus greatly reducing the use of cleaning
In certain locations, breakdowns
chemicals, requiring less fuel consumption for
may be more prevalent; areas
cleaning equipment, and lowering emissions,
where excessive stress is caused
Advanced Polymer Coatings Avon, Ohio 44011 U.S.A.
+01 440-937-6218 Phone +01 440-937-5046 Fax www.adv-polymer.com
theBaltic Spring 2011 www.thebaltic.com
59
Oxford Analytica
Fraud raises the bar for business Oxford Analytica looks at the recent worldwide increase in fraud and the corporate response
R
ecent research suggests that fraud has
reported by 27.3% of companies over the past
increased during the global crisis, per-
year, up from 18% in 2009 and making this
reported fraud in 2010, up from 27% in 2009.
haps reflecting the additional pressure
the most frequently reported fraud. Reported
• Among technology, media and telecoms
on executives to meet targets despite
instances of physical theft, by contrast, declined
companies, 37% reported experiencing fraud
slightly from 28% in 2009 to 27.2% this year.
in 2010, up from 29% in 2009.
tighter conditions. However, fraud is imposing an
• Among professional services firms, 40%
Fighting this kind of fraud is particularly
additional burden on businesses as they seek
difficult, as criminals are expert at adapting to
to recover.
Slipping standards?
overcome protection mechanisms.
In addition, reports from corporate accountancy
Extent of the problem
firms suggest that employee expenses fraud has
The results of two surveys of business executives
increased in the last two years, with individuals
Self-protection
worldwide have recently been released. In
exploiting technology to falsify receipts and
Companies can protect themselves against
August, Kroll commissioned a survey of more
invoices. The trends seem to suggest that
fraud by putting in place effective compliance
than 800 senior executives worldwide from a
some individuals who abide by the rules in
procedures. However, Ernst and Young found
broad range of industries. The survey sought
good times are ready to break the rules when
that, in many companies, such protection is also
to measure the prevalence of fraud and the
under increased financial pressure. Indeed, such
inadequate.
corporate response, and to quantify losses
sentiment was expressed by managers who
arising as a result of fraud. The results were
responded to the Ernst and Young European
the best prepared, but more than half of
published in October. Over 2009 and 2010,
Fraud survey in the previous year, 2009. When
respondents outside North America did not
Ernst and Young conducted 1,400 interviews
asked whether they thought various types of
have a documented plan for investigating fraud
with heads of compliance, legal services and
unethical behaviour were acceptable to help
in-house once suspicions were raised. One in
internal audit, in 36 countries. The findings from
a business get through the downturn, 47% of
seven of those interviewed had never conducted
both surveys suggest clear growth in fraud
respondents thought that one or more types
a formal fraud risk assessment (despite
during the global financial crisis, particularly
of unethical behaviour were acceptable. Some
respondents being from legal, compliance and
affecting companies in areas which previously
13% of senior managers thought that mis-
audit departments). Despite the rapid pace at
appeared less exposed to fraud.
stating financial performance was justifiable in
which fraud threats change as criminals adapt
the current financial climate.
to new technologies, more than one-quarter of
Kroll found that the amount lost by businesses
Respondents
in
North
America
are
to fraud rose to $1.7 million per billion dollars of
respondents admitted not having updated their
sales in the year to August 2010, from $1.4
risk assessments in the past year.
million the previous year. As many as 88% of
Information vulnerability
Since ‘compliance’ is a relatively new function
respondents to the Kroll survey reported that
With theft of information and electronic data on
in many companies, individuals recruited to
they had been hit by at least one type of fraud
the increase, information-based industries are at
the role often lack extensive experience. In its
in the past year, while Ernst and Young found
particular risk of fraud. This trend is reflected in
2010 survey, Ernst and Young found that 35%
that twice as many respondents from Western
the Kroll data:
of compliance professionals had been in a
Europe (21%) had suffered a ‘significant’ fraud
• In 2010, 42% of financial services companies
compliance role for three years or less. Internal
reported incidents of fraud, compared to
auditors are often seen as the first line of defence
24% in 2009.
against fraud, but this arguably breeds misplaced
than in the previous two-year period (10%). Theft of information and electronic data was
60
theBaltic Spring 2011 www.thebaltic.com
Oxford Analytica
confidence, since auditors are not always Failure
encouraged to adopt the investigative approach to
that would be necessary to uncover frauds.
due
The threat of fraud is leading to collective action among industry groups to develop
not
mechanisms for monitoring and reducing risk. The
companies
conduct diligence
only
exposes to
fraud
risk, but also means that
Institute for Security and Open Methodologies
companies may assume ‘legacy’
(ISECOM), a non-profit collaborative community,
corruption
has developed the Open Source Security
issues.
A
number
of
enforcement actions taken by the US
Testing Methodology Manual (OSSTMM), a peerreviewed methodology for performing security
Securities and Exchange Commission in
tests and metrics. The manual directs users to
relation to the Foreign Corrupt Practices Act
test various aspects of their information and
have concerned such legacy corruption cases,
telecommunications controls, personnel security
while the coming into force of the new UK
and physical locations. Similar initiatives are likely
Bribery Act in April 2011 will extend such risk to
to be developed in the coming years, as fraud
companies that carry on business in the United
protection becomes an increasingly lucrative
Kingdom. Companies often face acute dilemmas when
business in itself.
investing in emerging markets as they seek to balance the potential for high yields and
Future risks
rapid returns against the risks of becoming
Many companies are looking to emerging
embroiled in, or at least associated with, fraud
markets for the best growth opportunities as the
and corruption. Multinationals based in the
global economy recovers, particularly through
United States or EU also risk losing out to
acquisitions. However, such a strategy exposes
competitors based in China, Brazil or other
companies to fraud and corruption, as they take
major emerging markets, who typically face
on businesses that may have been operating
weaker legal pressures to avoid fraud and
according to different standards. To protect
eschew corruption.
themselves adequately against fraud, companies
Companies are tending to respond to fraud
need to conduct extensive due diligence on
and corruption risk by creating dedicated
potential acquisition targets and business
compliance functions, but are not always
partners both prior to and following deals.
equipping these individuals with the resources
However, Ernst and Young found that one in
Report by Oxford Analytica
to put in place effective protection mechanisms.
five companies that had completed acquisitions
www.oxan.com
Protection against fraud requires frequent risk
in the last two years had not conducted pre-
Š 2010 Oxford Analytica
assessments and effective internal mechanisms
acquisition due diligence, while two-fifths rarely or
E-mail: dgautrey@oxford-analytica.com
for collecting information and monitoring behaviour.
never undertook due diligence after acquisition.
theBaltic Spring 2011 www.thebaltic.com
61
FFA
Slow but steady? Neville Smith looks at the prospects for the container derivative market
C
ontainer freight derivatives have all the appearance of a premature newborn. But the proud parents already have big plans for the newest addi-
tion to the freight swap family. Indeed, this is a baby with a growing cluster of relatives and well-wishers, all keen to take a role in its development. First though, this nascent market must show growth, not just potential, and convince its elders that it too, can be a contender. Since The Baltic first examined container swaps there has been a significant shift in emphasis – away from a belief that the swaps market would quickly put on depth and liquidity – and towards an understanding that change in the physical market is a pre-requisite for take-up of swaps among shippers and carriers alike.
First steps Leading the charge is The Containership Company (TCC), which is close to concluding the first Index-Linked Container Contract (ILCC). But while TCC is positive on swaps and ILCCs, the majority of lines remain publicly sceptical. The carriers distrust the Shanghai Containerised Freight Index and claim that swaps will destabilise the freight market. TCC marketing director Lars Jensen told the recent Marine Money London conference that carriers had little to fear. “We are not afraid of these instruments but it is true some lines still are. They are traditionally price-setters and incorrectly, they fear losing control of that ability to set that price.”
62
theBaltic Spring 2011 www.thebaltic.com
FFA ILCCs were the necessary first step he said,
Lines might continue to insist that they
demonstrate risk management and even secure
because they would allow the industry to strip
can apply their own solutions to the market
better credit terms from lenders. In time, their
away the pretence that fixed price contracts
– cascading tonnage, slow steaming, laying
strategies might extend to underpinning ship
were fit for purpose. “Such a contract is not
up and offering additional services, but with a
finance deals with container swaps that would
a contract, it is a free option. With a contract
benchmark index gaining acceptance, such
guarantee a portion of freight income whatever
agreed at a floating rate that actually reflects the
actions are more transparent than ever.
the state of the market.
market, there would be fewer defaults as well
“One of the important things to say is that
as the opportunity to hedge your exposure and
nothing is set in stone. Essentially it is pretty easy
Growing the market
to add extra periods and routes,” he said. “The
On the sell side, banks and brokers are
So far, so confrontational. But the brokers know
market is still at a stage right now where it can
pushing the concept hard to their existing
that the success of container freight swaps
develop. At the moment the reasons people are
customers but are managing a chicken and egg
depends on convincing carriers rather than
looking to hedge wouldn’t require an eight to 10
situation. Interest is strong but liquidity remains
cajoling them. Perhaps the market should be
year forward curve but if that’s something there
limited.
purely over-the-counter to encourage early stage
is lots of interest in, it wouldn’t be difficult to get
growth – mimicking the early years of the FFA
that done.”
protect profitability,” he added.
Michael Rainsford of Morgan Stanley told the conference that container lines should be natural
market?
users of risk management – questions over the
Isabella Kurek-Smith, head of freight and
robustness of the SCFI and liquidity were a
commodities at LCH.Clearnet accepts that
distraction from bigger issues.
clearing costs more but says no derivatives market can these days trade without credit lines and counterparty risk. “We know there is
Transparency issues
regulation coming on clearing for derivatives
The SCFI has recently been audited by KPMG
and potentially towards exchange trading too.
but he said the carriers were more worried by
Clearing has become a pre-requisite now and
the transparency it promised than its accuracy.
one which the market accepts is good risk
“The question the lines should be asking is how
management.”
long they will be able to operate some routes if
Arthur Worsley, broker with Freight Investor
rates continue to fall through 2011 as they have
Services, is equally certain that lines will come
in the last six months,” he suggested.
to understand that swaps offer an opportunity to
Trade with confidence Optimise efficiencies Clear with LCH.Clearnet, the global leader in OTC clearing, and reduce your counterparty risk to the lowest possible levels, across key OTC markets. Freight | Containers | Iron Ore | Steel | Coal
Find out more at www.lchclearnet.com 6150 LCH01 Baltic Ad Half Page_FINAL.indd 1
2/2/11 16:47:30
theBaltic Spring 2011 www.thebaltic.com
63
Surveyors and Consultants
Fit for purpose Keeping surveying up to date with modern technology
W
hile the world of shipping is changing, the role of the surveyor remains essentially the same – and as vital as ever. While mak-
ing sure that the structure of a vessel retains its integrity still requires concentration, patience, and a good deal of clambering around, modern tools are becoming available to make the surveyor’s life slightly easier, and to keep a closer eye on the need for repairs and dry-docking before a survey even takes place.
The modern Flagship, a pan-European maritime transport project part funded by the EU, has developed software that it claims can forecast the condition of a ship’s hull over time to help improve the efficacy of surveys and reduce the amount of time a ship is out of service. The resulting programme, Flagship-HCA (Hull Condition Assessment) is designed to accurately predict the condition of a vessel’s structure, coating and components, enabling shipowners and operators to schedule maintenance in a more efficient manner and thereby reduce maintenance costs while improving safety at sea. The
principal
economic
objectives
of
Flagship-HCA are to extend the life of the existing fleet of tankers and bulk barriers by up to five years, with a 10% to 20% reduction in service repair costs for ships throughout their lifecycle. Corrosion of the ship’s structure is a primary concern for shipowners and Class Societies, and keeping track of the risk of corrosion is the primary focus of Flagship-HCA. Ben Hodgson, project manager at BMT Group, and Flagship-HCA subproject leader commented: “Management of corrosion is being addressed through separate tools that meet
Sometimes ship condition is easy to assess, but sometimes more sophisicated technology
the specific needs of the shipowner and the
is necessary
theBaltic Spring 2011 www.thebaltic.com
65
Surveyors and Consultants observed rules and results. Mr Herman de Meester, coordinator of Flagship, commented: “Flagship has pursued the twin objectives of reducing still further both risk and the environmental impact of the world’s commercial fleet whilst generating the opportunity for real commercial benefits. Flagship-HCA is a tangible example of the maritime industry collaborating to improve performance and efficiency in everyone’s best interest.
… and the traditional Despite the introduction of sophisticated condition monitoring software, though, the core of the marine safety system remains in the hands of the surveyors themselves. Carrying out a high quality, accurate and in depth survey, and ensuring that all the information from that survey is presented in a clear and accessible manner are very different things, however. A recent book from Mike Wall, an experienced marine surveyor and lecturer in maritime studies, aims to help fill what he believes is a big gap in the information needs of marine surveyors around the world, in particular those who are new to the profession. “While it is necessary for surveyors to possess sound technical knowledge it is certain that without an ability to adequately convey their findings in the reports, and sometimes also opinions, they will never become competent and respected surveyors,” the foreword emphasizes, and the book concentrates on helping surveyors identify and achieve these skills. Report Writing for Marine Surveyors contains a range of diagrams and charts which are designed to illustrate every aspect of the marine surveying process likely to be encountered. It includes a variety of different types of report format – covering many of the types of report which the surveyor may be requested to A torch is a basic tool of the surveyor’s profession - but so is the laptop
complete, from special survey to evaluation – in the appendices as templates, which may
class society. The enhanced data exchange
exchange hull data in real time, based on crew
be used by new surveyors. It includes specific
that these two tools will promote between class
inspections and maintenance work as well as
sections on discovery, evidence, protocols,
and shipowner will quite possibly lead to the
periodic measurement campaigns. Firstly, the
terms and conditions of service, insurance,
development of enhanced class rules, which
toolset includes the Survey Advisor Tool (SAT)
limiting liability and copyright issues. In preparing
will ultimately lead to better maintained, more
which advises surveyors where individual ships
for a report, the surveyor also learns about
available and safer ships.”
are most vulnerable and therefore where they
interviewing skills, together with when to report
should concentrate their investigations.
facts and when to offer opinions. According to
Designed as a tool for shipowners and surveyors, the software enables shipowners
Secondly, the Hull Health Programme Advisor
the author, the book should be of particular value
to schedule vessel maintenance and ship
(HHA) optimises the survey and maintenance
to new entrants to the industry for whom writing
replacement more accurately than has been
programme taking into consideration the vessel’s
detailed, accurate and concise survey reports is
possible to date. It not only optimises existing
work schedule and the predicted structural
an essential job requirement.
asset lifecycle and investment decisions but
integrity of the vessel. Finally, the Corrosion
can also provide the Class Societies with more
Parameter Prediction Tool, which takes the
Report Writing for MarineSurveyors
robust data upon which to base their rulings.
results of a survey or set of surveys and update,
Mike Wall
Flagship-HCA includes three primary tools
a database of corrosion parameters associated
Published by Petrospot Limited
which enable the shipowner and class to
with every aspect of a ship’s hull – based on
£75/€90/$125 +p&p
theBaltic Spring 2011 www.thebaltic.com
67
MAST is a leading maritime security company with a strong global presence and offices in the UK, Malta, Djibouti, Oman and South Africa. We can deliver a cost effective security service in the Gulf of Aden and Indian Ocean and provide onboard protection teams who will sail with your ship through the areas of concern. The company is also active in support of large maritime security projects including exploration, dredging and construction projects in difficult and dangerous environments.
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www.mast-commercial.com
Tel: +44 (1)279 669 480 admin@mast-online.co.uk
Maritime Security
The economic cost of piracy The human cost of piracy is all too familiar. But economic cost is having an impact too
A
t the beginning of 2011, around 700
Insurance premiums
Prosecuting piracy
seafarers from more than 18 countries
Shippers purchase four main types of insurance
Over 750 Somali piracy suspects have either
are being held hostage by pirates.
as indemnity against piracy: war risk, kidnap
been tried for piracy, or await trial in more than
Piracy clearly affects the world’s larg-
and ransom (K&R), cargo, and hull. The most
11 countries. To calculate the cost of piracy
est trade transport industry, but how much is it
significant increase in premiums has been in war
prosecutions, we worked out the number of
costing the world?
risk and K&R. The Gulf of Aden was classified
prosecutions held in three regions: Africa and
On Earth Future’s Oceans Beyond Piracy
as a war risk area by Lloyds Market Association
the Indian Ocean, Europe, and North America.
project has completed a study on the
(LMA) Joint War Committee in May 2008, and
We have then multiplied this number by an
economic cost of maritime piracy. The project
is therefore subject to these specific insurance
approximation of the average cost of prosecutions
set out to analyse the cost of piracy to three
premiums. The Cost of Piracy Model calculates
for piracy or similar crimes in each region. The
regions: (1) the Horn of Africa; (2) Nigeria and
the additional cost of insurance to the shipping
project estimates the cost of piracy trials and
the Gulf of Guinea; (3) the Malacca Straits.
industry by using a lower bound estimate (10%
imprisonment in 2010 to be around $31 million.
The focus has inevitably been on the costs
of ships purchasing these insurance premiums)
of Somali piracy because this is the region
and an upper bound estimate (70% of ships).
where contemporary piracy is most highly
From these calculations, we estimate that total
concentrated and is the greatest source of
excess costs of insurance due to Somali piracy
Organisations dedicated to reducing piracy
current data and information. The project
are between $460 million and $3.2 billion per
A number of intergovernmental organisations
primarily analyses direct costs, but also
year.
are dedicated to working towards a solution for
considers some secondary (indirect) costs. It is
maritime piracy. These funds represent operating
hoped that the model, report, and calculations
costs as well as established trust funds. The
produced by this study will be a useful tool for
Navy forces
total budget of these organisations is around
analysts and policy makers working towards
By our calculations, around $2 billion is spent
$24.5 million.
solutions to piracy.
each year on naval operations off the coast of Somalia. The cost of naval presence comes in two forms:
Ransoms
1. The cost of each contributing naval
Over the past five years, ransoms paid to
vessel. We calculate these costs by using
Somali pirates have increased from an average
approximations of the cost of deploying a ship
of $150,000 in 2005 to $5.4 million in 2010.
per steaming day, and multiply this number
The largest known ransom payment was for
by the number of vessels deployed each year
the South Korean oil tanker, the Samho Dream.
(currently around 43);
This vessel was ransomed for a record $9.5
2. The administrative and staffing budgets
million in November 2010. By the end of 2010,
of the ‘big three’ naval operations: Operation
approximately $238 million was paid in ransoms
Atalanta,
to Somali pirates in that year alone.
Combined Task Force 151.2
Operation
Ocean
Shield,
and
theBaltic Spring 2011 www.thebaltic.com
Organisation
Funds
Contact Group on Piracy off the Coast of Somalia
$3.7 million
IMO Djibouti Code
$13.8 million
Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP)
$2 million
UN Office of Drugs and Crime (UNODC)
$5 million
Total Cost of CounterPiracy Organisations
$24.5 million
69
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weather services & routing
Route your ship away from troubled waters As a subscriber to Jeppesen’s weather services, you have total oversight in a single glance: the latest charts and updates, accurate weather information and even piracy reports. With better decision-making tools, shipping companies can choose the optimal route, reducing cargo damage, transit times, stress and even the likelihood of encountering pirates. Combining updated charts, weather and piracy data gives officers and managers more peace of mind.
e-Navigation, so simple
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190X130_WBNB_FA.pdf
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Maritime Security
The cost of piracy is mounting
Secondary costs
from piracy, and which costs are associated with
Re-routing ships to avoid piracy
Secretary General of the United Nations, Ban
general political or financial instability.
For some vessels, especially ‘low and slow’
has had an immense impact on the economies
moving ships, which are at the greatest risk of
of East Africa and also the wider world…
piracy attack, avoiding risk zones altogether may
International trade routes are threatened and
be a safer or cheaper option. Total excess costs
goods in the region as well as Somalia are
of re-routing to those ships is estimated to be
becoming more expensive.” The table below
between $2.4 to $3 billion per year.
shows just some of the costs different countries
Ki Moon, stated in November 2010: “Piracy…
suffer, as a result of piracy. Note that determining the macroeconomic
Deterrent and security equipment
impact of piracy is especially challenging because it is difficult to assess which costs result directly
One Earth Future (OEF), a private foundation, is committed to seeking effective solutions to emerging governance challenges. OEF’s first project is a strategic commitment to the Oceans Beyond Piracy Project. Oceans Beyond Piracy seeks to engage and mobilise stakeholders to develop a global response that deals comprehensively with deterrence, suppression, and prosecution of piracy.
Shipowners may attempt to protect their property and crew from piracy attacks by preparing their ships with security equipment and/or guards prior to transiting a high-risk zone. The total cost of this equipment is between $363 million and $2.5 billion per year.
Cost Factor
Cost
Ransoms: (excess costs)
$148 million
Insurance Premiums
$460 million to $3.2 billion
Rerouting Ships
$2.4 to $3 billion
Security Equipment
Adding up the costs From the above calculations, the Cost of Piracy Project estimates the total cost of piracy in 2010 to be between $7 and $12 billion. This figure is not a definitive result, but an
$363 million to $2.5 billion
Naval Forces
$2 billion
Prosecutions
$31 million
Anit-Piracy Organizations
$19.5 million
Cost to Regional Economies
$1.25 billion
TOTAL ESTIMATED COST
$7 to $12 billion per year
approximation. We welcome collaboration from interested parties in continuing this study into future years, as well as further developing the project. We also note that, like all economic assessments, these estimates reflect the current economic environment. It is worth remembering that as the international economy rebounds from the present economic recession, these numbers could be expected to change substantially.
Country Egypt
Main Cost Factor Loss of revenue from Suez Canal fees (as ships reroute away from the Gulf of Aden)
Loss Per Year $642 million
Kenya
Trade impact
$414 million
Yemen
Trade impact
$150 million
Nigeria
Losses to oil and fishing industry
$42 million
Seychelles
Losses to fishing and tourism industries
Total Macroeconomic Costs
theBaltic Spring 2011 www.thebaltic.com
$6 million $1.25 billion
71
Corporate viewpoint MAST
MAST – the company M
AST is a leading maritime security
MAST provides onboard protection teams
company with a strong international
who embark ships or yachts in areas of high
presence and offices in Malta, UK,
risk. The teams’ men are all British ex-Royal
Djibouti, Oman and South Africa.
Marines or of equivalent experience, and once
The company is a global supplier of specialist
onboard will use their training and skills to train
maritime security services operating in difficult
the crew and increase the defences of the
and dangerous environments. The underlying
ship. Depending on the threat, insurer approval,
ethos of Mast is to deliver an exemplary security
peculiarities of jurisdiction and flag state armed
service to its clients whilst respecting the
protection is provided during a passage. The company has permission to operate
environment, local and international laws, and
from Djibouti and Salalah with firearms, as well
human rights. The Company aims to fulfil the needs of its key stakeholders: Customers: to deliver a consistently reliable, appropriate and effective security service
Piracy concerns and commercial maritime security capability “... Maritime piracy is costing the international economy from $7 to $12 billion per year.”1
Employees: to provide rewarding and
At the beginning of 2011, over 500 seafarers
challenging work, and development opportunities
are being held hostage by Somali pirates; the
Partners: to develop trustworthy and valuable relationships with key partners in support of MAST’s global services
Comprehensive security support MAST provides a comprehensive, integrated
trend looks set to continue.
as Sri Lanka, Mauritius, Kenya and South Africa, thus ensuring support throughout the region. MAST is also a security advisor to Watkins Lloyds of London Insurance Syndicate, which is part of Munich Re, the world’s largest insurer. The company has a track record of extricating ships and crews from arbitrary detentions and
It is also clear that the problem is not only
deadlocked situations in many of the most
spreading further across the Indian Ocean and
challenging places around the world. It also has
as far south as the Madagascar channel, but
a dedicated response capability, with on-scene
also that the tactics of the pirates is changing,
advice and negotiation, dealing with ransom
with pirated vessels now being used in an
delivery arrangements to assistance with the
attempt to capture more ships.
vessel’s recovery and crew repatriation.
security service for its clients within the maritime
The Lloyd’s of London Joint War Committee
Ship hijacks and arbitrary detentions present
community. The company’s key services areas
have also recently extended the excluded areas
a unique challenge to marine underwriters and
include:
to the Southern Areas of the Red Sea, as far
shipowners, as no two hijacks are quite the
• Commercial shipping security
East as Latitude 78° E and as far South as 12° S
same. There is always a complex web of
• Yacht security
All these facts provide a unique challenge
different local and commercial interests at play.
• Design and installation of security systems
for the shipping community. In response to
MAST’s negotiation department is led by a
• Explosives ordnance survey and disposal
the increasing threat to assets at sea and the
former P&I Club Director and a Somali specialist,
• Intelligence support
changing political environment, more shipowners
who have conducted 11 negotiations on behalf
• Training
and charterers are being directed to provide for
of shipowners.
• Hijack/kidnap and ransom (K&R) response
their own security.
service • Insurance/research and support
Private security companies provide part of the answer to the problem, when used in conjunction with the support offered by the international community and the various naval task forces operating in the region. For over five years, MAST has been delivering a responsive, cost effective security service, and is currently supporting in excess of 50 shipping clients ranging from specialist tug and tow, dredging and towed array operations, to tanker and bulk carrier operations.
72
theBaltic Spring 2011 www.thebaltic.com
Corporate viewpoint MAST scope of the operation will be conducted to acquire ordnance data on land or underwater. MAST EOD has the necessary combination of experience and expertise in the use of underwater survey equipment to ascertain, plan, recover and dispose of historic ordnance if revealed during the survey phase.
Consultancy and research Working in conjunction with our clients’ engineers and experts, MAST will ascertain
Explosives ordnance disposal (EOD) in the marine environment
the level of contamination and likelihood of
The signatory companies to this International
the presence of ordnance. MAST has clear
Code of Conduct for Private Security Service
expertise, understanding and awareness in the
Providers (the “Code”) endorse the principles of
MAST also provides a unique explosives
search and classification of land and underwater
the Montreux Document and the aforementioned
ordnance survey and disposal service in support
ordnance. After a comprehensive review of each
“Respect, Protect, Remedy” framework as they
of pipeline, dredging and port development
particular threat scenario, survey and clearance
apply to PSCs. In so doing, the signatory
work, and has specialist teams capable of
plans will be formulated.
companies commit to the responsible provision of security services so as to support the rule of
deploying around the world. mines and ordnance in numerous areas of the
Private security companies and the use of firearms
world’s coastal and deep-sea oceans. In certain
There are many valid arguments for and against
parts of the world, during any exploratory sea
the carriage of firearms on ships and a number
bed operation, pipeline construction or port
of key factors that must be addressed before
development, there is often a need to ensure
a decision is taken, including the legalities and
Private security: an effective partnership and appropriate response
that the area is free from explosives before
rules of engagement.
It is becoming increasingly clear that private
There remains a latent threat of unexploded
commencement of work.
law, respect the human rights of all persons, and protect the interests of their clients.
MAST provides armed security where the
security companies, in partnership with the
law permits, and if it is appropriate to the threat.
international coalition authorities and the
The inherent right of self defence exists as
shipping community, can ameliorate the effect
a principle in most jurisdictions and the use
of the current scourge of piracy. Solving the
of force in these unique circumstances is an
problem of piracy, however, remains a political
extension of that principle.
conundrum, for which there does not appear
With careful research and clear operating
to be any medium-term evidence of a solution.
procedures, including Rules of Engagement based on a proportionate and reasonable response to the threat; it is arguable that the carriage of firearms represents a pragmatic decision that can sometimes be justified. MAST is also a signatory to the International
The Solution
Code of Conduct for Private Security Service
A systematic survey and clearance operation
Providers signed on 9 November 2010 in
is essential prior to the commencement of full
Geneva. This vital step will give confidence to
operations in areas where contamination is likely.
the shipping community when deciding on the
Detailed feasibility studies outlining the size and
selection of a security partner.
www.mast-commercial.com
1 One Earth Future Foundation, Working Paper, December 2010
theBaltic Spring 2011 www.thebaltic.com
73
Software
Pilots, ports and pirates Sophisticated real-time solutions are a critical element in navigating today’s high-risk shipping business, says Michael Lolk Larsen
I
t is a well known fact, at least within the indus-
when calculating voyage distances, bunker fuel
as well as distance and routes to other ports.
try, that 90% of the world’s traded goods are
requirements, and the type of cargo to be
Even information about GMT offset and Daylight
transported by sea. However, the reality of
carried. A ship sitting idle while waiting for a
Savings Time is essential if journeys are to be
commercial shipping means that getting cargo
berth in one of the world’s shipping choke points
optimised and delays minimised.
from one point to another is far from straight-
will be missing its laycans, possibly destroying
forward, and there are plenty of constraints on
its cargo and definitely losing business. It is
where and how goods can be transported.
effectively throwing money overboard.
Dynamic information
Oil products and minerals are the most
All this, however, is static information. And
transported commodities, and the location
when it comes to shipping, static no longer
of these resources determines many of the
Problematic ports
cuts it. Certainly navigators need an up-to-
shipping lanes for bulks. The importance of
Port availability is also a critical factor in
date, real-time picture of a port, its facilities and
large manufacturing regions and consumption
determining the level of risk of any given voyage.
its availability – but they also need the ability
markets also give structure to the most common
This is not simply the financial exposure to freight
to respond to that information. They need to
maritime routes. Then there are the physical
rate volatility and counterparty credit risk –
be able to reroute their vessels mid-voyage.
constraints: coasts, winds, marine currents,
although again an idle ship will have deleterious
To do that they need accurate, detailed and
depth, reefs, and ice all play their part in
effects on both – but also the personal risk of
up-to-date information on all the factors that
determining where ships can and can’t be sent
piracy. Pirates off the Somali coast and in the
determine a vessel’s route and its margins –
– as of course do political boundaries.
Gulf of Aden have already caused shippers
and then integrate that information with cargo
either to pay exorbitant war risk insurance
commitments and port information to ensure
premiums, or to reroute and add delays and
voyages remain profitable. Today, advanced
Strategic routing priorities
extra fuel costs to the journey. UNCTAD’s 2009
software solutions interface with Google Maps®
However, many of the maritime routes that
Review of Maritime Transport found that, based
to provide shipping participants with the ability
traverse the rest of the globe are only a few
on 2007 data, rerouting 33% of cargo from the
to track vessels along a route and gain satellite
kilometers wide, and a limited number of
Suez Canal to the Cape of Good Hope because
views of ports and berths with zoom capability.
strategic ports serve these congested shipping
of piracy concerns would cost shipowners an
lanes. Even ships on the popular trans-Atlantic
additional $7.5 billion per annum.
The amount of information to take on board when planning a route is considerable. First there
and trans-Pacific routes, which have a far
So charterers, shipowners and operators
is distance between the 80 ocean zone exit and
greater choice of routes and ports, still tend
need accurate, up-to-date and comprehensive
entry points, or connectors, and the common
to congregate around tried and tested ‘Great
information on all the ports on their routes. And
shipping routes they provide access to. These
Circle’ paths and the ports that serve them.
not just whether there is room for them. Shipping
have traditionally been recorded in standard
So a ship cannot simply turn up in a strategic
firms need quick identification of port positions –
port, distance and route tables and form the
port and expect to discharge one cargo, pick
individually, by country and by zone. They need
basis for accurate analysis of cargoes, vessels,
up another and sail off into the sunset. One
pilot information and the restrictions on draft,
load, and discharge and thus for optimally
of the most critical elements in managing the
length overall (LOA) and beam to make sure the
planning routes. But they aren’t necessarily
profitability of any voyage, therefore, is assessing
port can take a given vessel. They need latitude
readily available for rapid decision-making.
port availability, and to include that information
and longitude values and the UNLOC code
74
theBaltic Spring 2011 www.thebaltic.com
Software Rerouting They are also only one aspect of the factors to be taken into account when planning new or alternative routes. Shippers need to determine intermediate waypoints so that the route skirts land, reefs, shallow water, and other obstacles that may adversely affect the vessel’s operation, and then they have to calculate the distance between them as Great Circle legs to ensure the shortest distance is plotted between individual points. Rerouting must also take into account the ship’s LOA and beam so that tankers larger than the prescribed suezmax dimensions are not routed through the Suez Canal, for example, and panamax ships are carefully timetabled to go through the Panama Canal’s Gaillard Cut during the day. When rerouting voyages, ship controllers obviously need to avoid known areas of inclement weather, for example, weather routes in the Southern Ocean, as well as shallow areas such as the Torres Strait, north of Australia. They must incorporate information on all recommended traffic separation routes, dangerous ground and adverse currents, and work out viable, alternative routing to avoid Piracy Zones set by the Joint War Committee. Sea captains also need tables that give distances from pilot-point to port and pilot-point to pilot-point, measured in both nautical miles and in voyage time. This is essential if a voyage
Sophisticated management systems are essential for efficiency and profitability
includes a river leg. A pilot-point could easily be 200 nautical miles up river from a port, which
in the case of transporting commodities, with
It needs to provide complete transparency and
is roughly four days of sailing time. Accurately
trading and risk management systems.
visibility over each aspect of vessel operations,
planning that time is critical to determine the
And that’s where the technological challenge
and draw out the relationships between diverse
vessel’s total hire cost and fuel consumption,
comes in. Although much of this information is
data elements and the activities they represent.
and it can represent a huge saving in bunker
available in port, distance and routes tables in a
Above all it needs to demonstrate where profits
fuel costs if the freight rate is high. So within
diverse range of databases and manuals, it isn’t
are made, where they are lost, and where they
their solution for ocean navigation, shippers,
necessarily interconnected, and it isn’t always
can be enhanced by improved decision-making.
operators and charterers need the functionality
available in real time. It is time-consuming to dig
Many of the traditional navigational tools of
to calculate the speed, consumption, and time
out, it doesn’t point out the interconnections and
the professional seafarer have been deployed
on the river if tight control over profit and loss is
knock-on effects of decisions made. It simply
for centuries. But the pace of business, the
to be maintained.
doesn’t function adequately in the incredibly
levels of risk, the cost of fuel and the tightening
dynamic shipping environment.
of margins across the board have placed an added pressure on shipowners, operators
Ensuring profitability
and charterers that these traditional tools are
That is the critical factor, after all. All of these
Beyond the spreadsheet
simply incapable of meeting. In today’s shipping
elements impact upon the profitability of the
The shipping business is a complex one: far
environment it is the ability to manage the
voyage if they are not managed. And so all this
too complicated to be run from spreadsheets
dynamic world of shipping and vessel operations
information needs to be readily accessible and
or paper logs. It needs a dedicated, specialist
in real time that is the real route to success.
easy to manipulate. It needs to be integrated
solution that can incorporate all this data and
with cargo commitments round the world and,
translate it into valuable, actionable information.
theBaltic Spring 2011 www.thebaltic.com
Michael Lolk Larsen is ceo of Triple Point Technologies.
75
Software
Solutions for a challenging economy Sophisticated technology is giving charterers new ways of managing information – and the challenges it creates, says Jamie Sheldon
T
he evolution of technology in the ship-
multiple sources. The quality of their decisions
This model allows structured information to
ping industry is presenting both new
directly relates to their ability to extract
be collected by a central location, the ‘hub’,
challenges and new solutions for char-
information from the vast amount of data
and routed to multiple parties, the ‘spokes’.
terers. Many companies are currently
available. And in operations, throughout the
By developing standard message formats,
reviewing existing mission-critical business
life of a typical voyage, the same information
publishing these formats, and building a
practices to identify opportunities to automate
is manually duplicated and distributed to
consortium of companies that adopt these
them, to make them more efficient. This is the
different parties many times over. Shipping
formats, a hosted exchange can become a
first step in intelligently applying technology to
organisations can no longer succeed using old
reality. In such a system, charterers, brokers,
the shipping industry. The next step is to man-
processes—spreadsheets—that were effective
owners, and crews enter information, and the
age data in ways that do the work for you.
in the past. New technology is needed to cope
software replicates the information, tailors it,
with information overload.
and transmits it to the appropriate recipients
A major challenge to charterers is the high volume of information they have to contend
Charterers need a structured system, with
automatically. This solution provides charterers
with every day and the lack of standards to
the right information at the right time, with
with full audit trail capabilities that enable them
help them manage it. The final step must be to
security and audit trails built in. Most of today’s
to understand what contributed to decisions,
link business partners — charterers, brokers,
current systems do not provide a solution that
from which source the information came, and
agents, owners, and so on — to allow them to
manages their businesses as effectively as they
what data they are sending to their partners.
organise, analyse, and share information easily
would like. So, what needs to change to enable
To move forward, shipping companies
and securely. Technology can be used to help
charterers to translate an abundance of data
must embrace integrated systems that feature
companies manage the vast amounts of data
into intelligent, profitable decisions?
open architecture. An Internet data exchange maximises the potential of these systems to
generated today.
improve decision making and organisational
… to data-driven decisions
efficiency. Charterers have an overwhelming
From information overload …
It will take a paradigm shift to overcome
amount of information to track and processes
Marine professionals face a daily barrage
information overload. That shift revolves around
to manage. Once they see that integrated
of critical information that must be factored
an open, Internet-based data exchange that
systems and a hosted exchange can deliver
into decisions, conveyed to counterparties,
allows all parties to share structured information
this flood of data in a form that lets them make
recorded in voyage logs, relayed to partners,
via the Web. In the shipping industry, where
the best possible decisions, the paradigm will
and dealt with promptly. The quantity and
integrity, trust, and personal relationships
shift.
speed of incoming data can result in mistakes
are critically important, the right balance of
and workflow inefficiencies. Charterers make
openness and security will be key.
decisions in a highly volatile business climate,
The solution is a ‘hub and spoke’ information
relying on many pieces of information from
exchange, hosted by a reliable third party.
theBaltic Spring 2011 www.thebaltic.com
Jamie Sheldon is product director at Veson Nautical.
77
Visit us at stand #H27 on 12-14 April 2011 at Sea Asia,Singapore and stand #D04-14 on 24-27 May 2011 at Nor Shipping, Oslo
Shipbuilding
The past catches up? Ordering downturn means a gloomy outlook for many yards
A
s the potential glut of newbuild ton-
“challenging”. The offshore sector in particular
before the agreement was struck, and the
nage continues to weigh heavy on the
performed strongly, the group said, and STX
yard says that it “anticipates the acceleration
shipping industry, ordering appears
France has experienced “significantly improved
of those activities in the coming weeks so long
to be going through something of a
order intake”.
as sufficient progress is made towards the
slowdown (see S&P report, page 29). However,
closing of the transactions contemplated by the
high levels of deliveries last year mean that, on
Agreement”. The tankers are part of a series
paper at least, yards are still performing relatively strongly.
US yards turn to state to fund newbuilds
being produced for American Shipping, and will be bareboat chartered to OSG.
While the cruise sector may not be as healthy as STX would like, it is still in a better position than
China dominates on dry bulk side
US-based Aker Philadelphia, which produces
Industrial woes for Hanjin
tankers for the Jones Act market, and has
Even established yards have been suffering from
Orders continue to move from yards in countries
been forced to sell some of its assets to the
the changed economic climate. Korea’s Hanjin
such as Korea and Japan to cheaper locations,
state of Pennsylvania in a deal to finance the
Heavy has apparently received no orders since
in particular to China, according to a report from
construction of two newbuild tankers. Under
mid 2009, and has been forced to shut down its
SSY. In 2010, Chinese yards built more than half
the agreement, the yard will use the $42 million
main shipyard in Busan as part of an ongoing
of the record 78.3 million dwt of bulk carriers
proceeds from the asset sale, together with a
labour dispute. It has a total of 21 vessels on
delivered, SSY said. Some 40.1 million dwt were
combination of financing from private lenders
order. By contrast, Hanjin’s Philippines yard
built in China; close to the entire total of bulk
and its own existing funds to pay for the
at Subic Bay yard has 47 ships on order;
carriers delivered worldwide in 200, at 43.5m
contruction of the tankers, which will be the 17th
further evidence that the centre of gravity
dwt. SSY estimates that in 2010, Chinese yards
and 18th constructed at the yard. Preliminary
for shipbuilding continues to shift away from
delivered almost twice the amount of dry bulk
work on one of the vessels had already begun
established yards in Korea and Japan.
tonnage delivered by Japanese yards over the same period. Korean yards delivered 14.6 million dwt of dry bulk tonnage over the same period.
STX reports strong Q4 STX Europe reported a stronger fourth quarter in 2010, much of which was due to improved performance in the offshore sector, and which meant that performance for the year as a whole was considerably more positive than in 2009. Pre-tax profit was at NOK 211 million for the year, up from a loss of 875 million in 2009. With 25 vessels delivered in 2010, and an order backlog of 59 vessels, the future of the group appears secure, despite a slowdown in the cruise and ferry sector that has led to more than 1,200 temporary layoffs at the group’s Turku shipyard, where the orderbook is described as
A yard at full capacity – a thing of the past?
theBaltic Spring 2011 www.thebaltic.com
79
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Northern Europe
Northern Europe looks to technical innovation to drive the shipping industry
O
ver the past year, there has been an increasing amount of discussion about the possibility of using LNG as a low-cost, low-emission alterna-
tive to residual fuel for powering ships. LNG is particularly well suited as fuel for use on regular liner services with short distances between calls, as the volume required for bunker space is much greater than that required for ships using fuel oil. For this reason, the Scandinavian region, particularly the Baltic sea, has been seen as an ideal location for establishing the infrastructure for LNG-fuelled operations, and both port operators and shipowners are looking to take advantage of what appears to be a cheaper, cleaner fuel. If this infrastructure eventually comes into place, it could change the face of shipping across the region.
Out to tender The
first
steps
towards
establishing
an
infrastructure of this kind are now being taken. The Danish Maritime Authority (DMA) has just put out a tender for a feasibility study establishing an LNG fuelling infrastructure across the region. In an accompanying statement, the DMA said that the analysis was part of a major project with participation from, among others, the Scandinavian countries and several large companies in the energy sector. The DMA is the coordinating partner of the project. It believes that the introduction of new sulphur limits in 2015 will make LNG an increasingly attractive option for vessels operating in the Baltic on a full-time basis. The study should have the aim of making LNG a competitive fuel for shipping in the sea areas covered by the project, the DMA said – that is, the Baltic Sea, the North Sea and the English Channel. It sets out a number of
theBaltic Spring 2011 www.thebaltic.com
81
The Norwegian International Ship Register - NIS • The safe and secure alternative • Competitive tax regime
www.nis-nor.no
Northern Europe conditions, including :
a physical infrastructure for LNG, bunkering
in the LNG field. The establishment of a useable
• The decision paper must be relevant for
stations as well as the supporting structure
infrastructure requires great investments if it is to
central stakeholders as shipowners, ports,
of public regulations, classification rules, and
cover a major geographical area,” the DMA says.
LNG providers, Member States and other
industry standards.
states and the EU etc.
“At the same time, it is a dilemma that
However, the authority does point out that
the shipping companies are only prepared to
recommendations
there are considerable problems associated with
invest in LNG operation if the necessary means
from the strategic decision paper must be
establishing an infrastructure of the type it lays
of acquiring fuel are available, while the LNG
validated through tests, including a port point
out, not least the problem that it will not evolve if
suppliers are prepared to invest only if the
of view.
there are no ships to use it, and owners will not
shipowners demand LNG.
The DMA states that the starting point for the
order LNG ships if there is nowhere to fuel them.
“The work on this dilemma is a key issue of the
project must be an LNG supply chain, covering
“The need for an infrastructure of LNG
project, which geographically covers the Baltic
the entire process from the reception of LNG
filling stations should be considered against
and/or liquefaction of natural gas from the gas
the background that there is a well-established,
grid to LNG, via storage and distribution of LNG
competitive system for traditional bunker oil
to the use of LNG in ships for propulsion.
without major investment needs. On the other
Swedish ports lead on LNG
hand, there is no infrastructure of any importance
Gothenburg is, if anything, rather ahead of
• Simultaneously,
the
Any recommendations must encompass
Sea, the North Sea and the English Channel.”
the action. In September 2010, it announced that it is to enter an agreement with LNG GOT, a collaboration between Swedish energy company Göteborg Energi and gas corporation Gasnor, to develop LNG infrastructure at the port. Port officials hope to begin delivering LNG as bunkers in 2013. “Changing the fuel in large ships require large investments. In addition to the fact that the vessels must be adapted to liquid natural gas, we will also need a new infrastructure on land so that the gas can be delivered to ships. Our business’ main objective is to construct a terminal which will be able to receive deliveries of liquefied natural gas for further delivery to the bunker boats that will supply the vessels,” LNG GOT said. “The vision is to be the natural choice of fuel supplier in Gothenburg. By choosing liquefied natural gas, we create a sustainable alternative fuel at sea.”
Ordering follows suit Although a comprehensive infrastructure for refuelling LNG powered ships has yet to be put in place, many owners are already ordering vessels adapted to burning gas, rather than bunkers. Norwegian-based Eidesvik Offshore recently ordered its fifth LNG fuelled supply vessel from Kleven Maritime. The company claims the move confirms its position as world leader in the operation of environmentally friendly gas powered supply vessels, having taken delivery of the world’s first gas-powered cargo ship, the Viking Energy, in 2003 and since then built the gas ships Viking Queen and Viking Lady. A statement says the contract value is about Nkr440 million ($73 million). Eidesvik had already ordered a similar vessel earlier in 2010. Eidesvik says the vessels will be specially equipped for operations in northern areas. In Finland, Viking Lines has ordered an LNGfuelled cruise from STX Finland to operate on the
theBaltic Spring 2011 www.thebaltic.com
83
welcome to BRIDGe 2011
LONG TRADITIONS AND MODERN EDUCATION >> BRIDGE 2011 -conference 9 - 10 June 2011 in Rauma, Finland Read more: www.samk.fi/bridge2011 >> Maritime training and education Read more: www.samk.fi/maritime Satakunta University of Applied Sciences, Faculty of Technology and Maritime Management offers long traditions and modern education.
Satakunta University of Applied Sciences | Faculty of Technology and Maritime Management Suojantie 2 | FIN-26100 Rauma, Finland | www.samk.fi/maritime Capt. Heikki Koivisto | Email: heikki.koivisto@samk.fi | Phone +358 2 620 3674
Northern Europe Turku-Stockholm route. According to reports in
It is also showing considerable confidence in
who depend on us in their supply chain, and
the local press, Finnish company Gasum plans
the future of the global economy, and in the
also for a growing number of consumers who
to build a distribution terminal for LNG in Naantali
future of the container shipping sector. Despite
base their purchasing decisions on this type of
(Nådendal), to serve the vessel and it is believed
having vessels come off the blocks and straight
information,” he continued.
that the parties are currently negotiating the
into mothballs during the container downturn
The
terms of delivery. The goal is to have the LNG
in 2009, the company has just signed what
AP-Moller
teminal completed by summer 2013, when
is potentially the biggest shipbuilding contract
rebound in its position last year, with final
Viking Line’s newbuilding will come into service.
ever, placing an order for 10 18,000 TEU vessels
accounts showing a record profit of $5 billion.
However, both Viking and Gasum are reported
from Korea’s DSMW shipyard, at a cost of $190
Maersk Line in particular showed considerably
as saying that the timetable is tight. The order
million per ship. Delivery is slated for 2013 to
improved results over 2009, with the freight rate
comes as something of a surprise, as Viking
2015. Financing is in place for all 10 vessels,
for the Group’s container activities increased by
Lines’ ceo announced a year ago that Finnish
Maersk said, and the company has paid a 10%
29% in 2010 after a decline of 28% in 2009.
yards had priced themselves out of the bidding
deposit. The contract includes an option for a
Volumes increased by 5% from 2009 – meaning
process.
further 20 vessels, bringing the potential total
both freight rates and volumes were close to
value of the contract to $5.7 billion. Maersk Line
the pre-crash levels seen in 2008. The group
says it is buying the ships to position itself to
reports that overall, generally positive market
Norway
profit from an expected 5-8% growth in trade
conditions and continued streaming and cost
In Norway, Sea-Cargo, a liner company sailing
from Asia to Europe that the company expects,
savings have considerably improved the cash
between Norway and the EU, have ordered two
and to maintain its industry leading market
flow from operating activities within the Group
ro-ro fuelled LNG ships for delivery in 2011. The
share in the trade. It has also been suggested
which was up by 117% against last year. Against
company has signed a contract with Nordic LNG
that because the ships will be much cheaper to
this background, it is perhaps unsurprising that
to provide fuel from the Skangass LNG facility
operate than a larger number of smaller vessels,
the company was able to secure credit for the
at Risavika.
in the event of a downturn, Maersk can lay up
first tranche of its giant containership order.
“Throughout the past few years, we, and our
some of its smaller vessels, and continue to
However, in an initial comment on the annual
owners Seatrans, have expended considerable
operate the more efficient giant ships. This may
results, Maersk warned that 2011 is unlikely
resources to realise the use of LNG as an energy
become necessary; while Maersk predicts that
to produce similar results. Due to a high level
source for our line vessels. LNG is clearly the
the global demand for seaborne containers will
of investment in the business, “cash flow
green alternative of the future for the marine
grow by 6-8% in 2011, it also notes that the
used for capital expenditure is expected to be
transport sector. It has been a challenging
global supply of new tonnage is expected to
significantly higher than in 2010”.
process, where it was important to get three
match or grow more than the freight volume,
issues in particular in place: class requirements
especially on the Asia to Europe trade.
Maersk
Line’s
Maersk,
saw
parent a
company,
considerable
Looking North
(for equipping the ships), infrastructure (gas
The vessels will be known as Triple-E class,
availability) and last but not least – a competitive
based on the three main purposes for their
The development of the North Sea route
price for gas compared with the current price
creation:
continues to be an interesting possibility for the
of oil. The agreement with Nordic LNG has
• Economy of scale
future. It is claimed that the route can cut 5,000
now put the last pieces in place: deliveries and
• Energy efficiency
miles and eight days from the Suez Canal route
competitive prices. Sea-Cargo is very proud of
• Environmentally improved
from North West Europe to Northern Asia. In
what has been achieved by this project – in 2011
At 400 metres long, 59 metres wide and 73
September 2010, Danish company Nordic Bulk
we will start the world’s first RORO/CONT-based
metres tall, the Triple-E will be the largest vessel
Carriers, which specialises in the handysize
line traffic concept with LNG as fuel,” said Ole
of any type known to be in operation. Its 18,000
and handymax sectors, was involved in one
Sævild, managing director of Sea-Cargo.
twenty-foot container capacity is 16% larger
of the first bulk carrier transits of the passage.
(2,500 TEU) than Emma Mærsk.
The Nordic Barents, chartered by Norweigan
“We are very happy to have been awarded this contract in stiff competition with other
Maersk claims that the new vessels will not
company Tschudi, transited from Norway to
suppliers. Sea-Cargo is one of the pioneers in
just set a new benchmark for size; in addition,
China with a cargo of iron ore. This was the first
the commercial use of LNG as fuel. In addition
it says, they will ensure Maersk Line reaches
time that the Russian Ministry of Transport had
to considerable environmental savings, LNG is
its goals at the lowest possible cost, while
given permission for a foreign-flagged vessel
also competitive in terms of price. This project
producing the lowest possible amount of CO2
to transit from one foreign port to another via
illustrates in practice that it is possible to comply
emissions — 50% less CO2 per container
the searoute. “The Arctic Route means – in
with the environmental requirements imposed
moved than the industry average on the Asia–
this instance – a reduction of sailed distance
on the shipping industry and also maintain
Europe trade.
by one third, which entails savings on time and
the competitive edge against established
“One of the biggest challenges we face in the
alternatives,” said Knut Arvid Fisketjøn of Nordic
world today is how to meet the growing needs
not least, a much reduced emission of CO2.
LNG.
of a growing population while minimising the
The latter is in perfect concordance with Danish
impact that is going to have on our planet,” says
owners’ current endeavours to be a leading
Maersk Line CEO Eivind Kolding. “International
contributor to tangible improvements of the
Maersk orders big
trade will continue to play a key role in the
global environment,” the company said. The
While some owners are looking to a more
development of the global economy; but, for
Northern Sea Route is seeing increased use,
environmentally friendly future by way of LNG
the health of the planet, we must continue
with Rosatomflot expecting to escort at least
powered ships, Denmark’s Maersk Line is
to reduce our CO2 emissions. It is not only a
six oil-tanker convoys through the route during
seeking efficiency through economies of scale.
top priority for us, but also for our customers,
2011.
theBaltic Spring 2011 www.thebaltic.com
bunkers (approximately USD 180,000), and,
85
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Insurance parlance
Insurance parlance Wind farms are creating electricity but they are also stirring up controversy. Denzil Stuart outlines the problems they are presenting to shipowners, mariners and insurers
T
he UK has targeted 15% of energy to
increasingly apprehensive about the potential
US response
come from renewable sources by 2020.
dangers to property and lives arising from the
It’s not just the UK government that is attracting
Estimates of how many wind farms will
growing proliferation of wind farm ‘parks’ in
opprobrium. In January, the World Shipping
be needed to meet this target have
coastal areas – and which could fan out into
Council delivered strong criticism of a US
deep water sites.
government plan that would see a series of large
ranged from 10,000 to 12,000. The costs will be colossal: £780 million for 100 offshore turbine
The whole scenario is going to throw up
wind farms built off the coastline of the state of
wind farms, and £75 billion for 6,400 offshore
many challenges. The Marine & Coastguard
Maryland. In its submission, the WSC said that
turbines by 2020.
Agency will have the task of sorting out traffic
the environmental costs and damage of a single
It costs nearly twice as much to generate
lanes around the sites already occupied or
collision between a ship and a wind turbine, as
electricity from an offshore farm as it does from
chosen. This comes at a time when the UK
well as the potential loss of life and property,
a conventional power station, a recent scientific
government has taken the axe to the MCA: it is
could easily exceed any benefits of siting such
report concluded. While a conventional power
proposed to close 10 coastguard stations and
turbines in the area.
station could be around for a long time, the
withdraw the emergency towing vessels (ETVs)
A different take on the situation has come,
lifespan of a wind turbine is said to be 25 years
to save money. Captain David Parsons, chief
perhaps understandably, from Nautilus, the
executive of the Merchant Navy Welfare Board,
mariners’ union, whose senior national secretary,
The UK’s first offshore wind farm was
has said the proposals suggest a worrying
Allan Graveson, has been reported as saying
commissioned in December 2000 off Blyth
lack of awareness as to the importance of
that the development of wind farms is providing
Harbour in Northumberland. Since 2004 the
maritime safety around the UK coastline, and a
significant employment for European seafarers
pace of expansion, both on land and offshore,
disturbing disregard for the safety of seafarers
and should be welcomed.
has quickened a great deal. The UK programme,
and shipping in the leisure boat industry.
– the same as for a ship.
it is said, will create 50,000 to 70,000 jobs by
The Chamber of Shipping has weighed into the safety arguments by stating that shipping
The insurance issue
safety is being put at risk as a result of the
Last September in Zurich at the annual
“absurd process” for allocating wind farm sites
conference of the International Union of Marine
Extent of the problem
around the UK coast. The Chamber is urging
Insurance (IUMI), guest speaker Philip Wake,
When a new offshore site is identified and
the government to make radical changes in
chief executive of The Nautical Institute, startled
tenders invited, surveys are carried out to
the procedures used to determine the location
the 500 underwriters in the audience when he
examine the effects on bird and marine life.
of wind farms and to ensure that major routes
spelled out the projected number of windfarms
So far nothing seems to have been said
used by merchant ships and fishing vessels
around the UK coast, intended to make it the
about the risks and dangers to ships. Little
are protected. It notes that these offshore
biggest wind resource in Europe. Obviously, said
wonder that insurers of hulls and machinery,
developments are increasingly encroaching
Wake, “there will be less sea room for ships,
as well as protection and indemnity (P&I) clubs,
on well-established sealanes, strategic trade
while there is a need to educate mariners. And
which cover third party liabilities, are becoming
routes and approaches to ports.
yachts, of whatever size, will have to sail around
2020 and provide energy security.
theBaltic Spring 2011 www.thebaltic.com
87
Insurance parlance the parks and therefore into or across shipping lanes”. However, Wake offered one crumb of comfort to shipowners, shipmasters and insurers: wind farms exude very good radar signals. Summing up the challenges ahead, Wake referred to the restriction of shipping routes, construction phase risks, aids to navigation marking and maintenance, dissemination of navigational information, education of mariners on hazards, and decommissioning of sites – residual risks. A leading hull underwriter at commented developments
that
offshore
were
moving
Lloyd’s
wind
turbine
too
quickly
for insurers’ liking, and not nearly enough forethought had been given to the consequences of mishaps or collisions, or in educating bridge teams aboard ships and ‘tuning them in’ to the inherent navigational hazards. Meanwhile, of course, offshore wind farms are having a huge impact on engineering, construction and transportation, creating new opportunities for naval architects, engineers and shipbuilders who will have to supply the dedicated vessels to get these monster pieces of kit into position at sea – and the latest farms in the North Sea are planned for water depths of about 180ft.
88
theBaltic Spring 2011 www.thebaltic.com
Insurance – ITIC
Social Media –
potential pitfall Andrew Jamieson of the International Transport Intermediaries Club (ITIC) explains why shipbrokers must be aware that a comment posted on a social media site could lead to a defamation suit
E
arlier this year the Football Association
that can be damaged by a defamatory statement.
being in the public domain and all participants
fined the Liverpool striker Ryan Babel
Examples would be an allegation that party ‘X’
need to be aware, in the same way as if making
£10,000 for posting a mocked-up pic-
would issue backdated bills of lading “if the
a public statement in other forms of media, that
ture on Twitter. The picture was of a
price was right” or that party ‘Y’ was the author
any comments would be transmitted to a wider
well-known referee and showed him wearing
of an anonymous circular regarding price-fixing
audience. It is their responsibility to ensure that
a Manchester United shirt. The referee had
by competitors.
only appropriate comments are used.”
awarded a penalty to Manchester United which
The ease and apparent informality of posting
produced the winning goal in a game Liverpool
messages may give rise to a false sense that
Where to draw the line?
the message will be subject to less scrutiny
Although the relevance of this disciplinary
Companies have to recognise that employees
than if it was made via other media. Brokers
matter to shipbroking may not be immediately
use the internet both inside and outside work
must however, be aware that the possibility of a
apparent, it is one of a growing number of cases
and that many employees participate in social
lawsuit as a result of the use of a social media
in which the use, or perhaps misuse, of social
networking on websites. Leading law firms
website is a real one.
media websites has led to legal issues.
have been among the many organisations
The most obvious way of preventing a
embarrassed by their employees’ sense of
defamation suit is the application of common
humour or details of their love lives.
sense over the content of messages. There
lost 1 – 0*.
Last year a UK court awarded an individual £10,000 in damages as a result of a defamatory posting on Facebook. In an earlier case a
The issue for the company may not be
are two major identifiable types of complaint,
businessman received damages of £22,000
limited to embarrassment if an employee makes
whatever media is used to make the statement.
for comments posted on the same site which
a defamatory statement. The company will also
Firstly, there have been a number of claims
included allegations that he owed substantial
be vicariously liable for the acts of that employee
throughout industry based on comments about
sums of money which he had repeatedly avoided
carried out in the course of employment, even
a competitor’s market standing and integrity.
paying by lying, and that he and his company
if performed without the consent or approval of
Shipbrokers should take care that neither an
were not to be trusted.
the employer.
over-zealous desire to do a deal nor a sense of
The difficulty is that, especially in a business like shipbroking, it is not always possible to
frustration at not getting one leads to a damages claim.
When is a comment defamatory?
draw a clear distinction between personal and
Secondly, claims can arise from what
business use. Increasingly, companies are
the maker intends to be a humorous, albeit
Shipbrokers are often asked for, or simply
utilising this type of networking site for business
disparaging, remark or picture. While the
give, their opinion of people and companies
purposes. Some sites, like LinkedIn, are clearly
readership of the original posting may be
in the market. A large amount of information
aimed at professional networking. A simple ban
intended to be limited, it is impossible to prevent
is passed around the market and some of it,
on their use by employees for work-related
further circulation. Even if the original posting is
while nothing more than rumour, goes straight
matters is unlikely to be sustainable.
removed, screen grabs can still circulate. The
to the commercial credibility or even honesty of
intended audience may appreciate the joke, but
the subject. A posted comment could lead to a
the target may not do so.
defamation suit.
Public domain
A defamatory statement can be made about
One thing that is clear is that postings are not
The writer has no allegiance to either of the
either natural persons – individuals such as
private. In the Babel case the FA Regulatory
football clubs mentioned in the article and did
company directors – or legal persons such as
Commission Chairman commented: “Social
not see the challenge in question.
companies. A company has a trading reputation
network sites, like Twitter, must be regarded as
theBaltic Spring 2011 www.thebaltic.com
89
Legally speaking
Legal news A round-up of news provided by the Maritime Advocate
Failure to pay freight is a federal case
“character of the work performed under the contract is determinative whether the agreement
The local fishermen filed a series of class
A
was maritime”. The court found that the plaintiff
action suits against the owners and operators
re freight forwarders maritime func-
secured bill of ladings from carriers transporting
of the containership in both federal court in
tionaries or not? This is a question
the defendant’s goods, a task that is not
San Francisco and in San Francisco Superior
frequently asked in the field of carriage
preliminarily in nature, and “an integral part of
Court. Lawsuits were brought against both Fleet
of goods, and it arises again in a case
the shipping process”.
Management and the ship’s owner, Regal Stone
reported by Editor in Chief Michael Ryan in the
The Court found it had subject matter
Cargo Newsletter published by the Committee
jurisdiction over the breach of contract claim,
On Carriage Of Goods (COCOG), a Committee
and the matter could proceed to arbitration.
investigation.
Ltd. of Hong Kong. Both lawsuits claimed fishermen suffered “profound” economic damage from the oil
of the Maritime Law Association of the United
contamination and sought certification as class
States.
actions on behalf of all commercial operations
In OEC Freight (NY) Inc. v. Philip Whitney, Ltd.
Cosco Busan case settles
that catch fish in and near San Francisco Bay.
et al., U.S.D.C. (E.D.N.Y.) Docket No. 09-CV-
The 2007 Cosco Busan spill has resulted in
A settlement was recently reached to pay
2489 (FB); Decision of Sr. Judge Frederic Block,
a settlement with local fishermen around San
Bay Area commercial herring, halibut and
dated October 18, 2010, suit was brought
Francisco Bay of some of $6 million in damages.
other finfish fishermen $3.65 million for long-
by a freight forwarder against shippers for
The containership spilled roughly 53,000
term damages claims in addition to monies
failure to pay $39,929 for services rendered in
gallons of residual fuel oil into the bay on 7
previously recovered, according to an attorney
transporting defendants’ goods from various
Nov 2007, after it struck a fender around one
for the fishermen. About 120 commercial finfish
ports in or near China to New York.
of the Bay Bridge’s towers and cut a 212-foot
fishermen will split the $3.65 million settlement.
The plaintiff invoked the admiralty and
gash in the ship’s hull. About 120 fishermen
The fishermen’s lawyer, Stuart Gross, is
maritime jurisdiction of the Court pursuant to
launched a class action for losses suffered as
quoted as saying: “They fought us hard but
the Carriage of Goods by Sea Act. Defendants
a result of the spill, which affected some 26
ultimately came to the table and agreed to a very
moved to dismiss for lack of subject matter
miles of shoreline and killed over 2,000 birds.
fair and adequate settlement.”
jurisdiction, which would thereby abort arbitration
The ship hit the San Francisco-Oakland Bay
A National Transportation Safety Board report
of its claims. (The Local Civil Rules of the Eastern
Bridge and ruptured a bunker tank. The pilot was
concluded that the accident, which happened in
District of New York compelled arbitration of civil
jailed for 10 months for environmental offences
thick fog, was due to poor decisions by the pilot,
disputes involving claims of up to $150,000;
while Fleet Management was fined $10million for
who was found to have been medically unfit, and
however, the Court, as a condition precedent to
various offences relating to the navigation of the
the ship’s master and bridge team, and to poor
the arbitration, must address the threshold issue
vessels and of obstructing the US Coast Guard
communications on the bridge.
of whether it has jurisdiction.) Defendants argued that the Carriage of Goods by Sea Act (COGSA), was not applicable; however, the court stated this was irrelevant as the plaintiff’s claim was for breach of contract. Pursuant to the Court’s general admiralty or maritime jurisdiction, jurisdiction depended on the nature of the contract at issue. The court found the dispute involved centered around the defendants’ alleged failures to pay for the carriage of the goods, which was clearly at the core of “business of maritime commerce”. As to an argument that the plaintiff was a freight forwarder, ie an agent of the shipper that arranged for the transport of the goods rather than the actual carrier of the goods, when considering whether a freight-forwarding contract falls within admiralty jurisdiction, the
90
theBaltic Spring 2011 www.thebaltic.com
Canada
New ships for old? Fleet renewal is urgently needed – and might just be about to happen
C
anada’s fleet of 20 specialised self-
“The decision is a reflection of the confidence
has placed an order for four 30,000 dwt lakers,
unloading bulk carriers, operating
our customers continue to show us in international
including one gearless bulk freighter and three
on the St Lawrence Seaway, has
trades and on the Great Lakes Seaway,” said
self-unloading bulk freighters, with Nantong
so far been immune to the renewal
CSL’s president and ceo Rod Jones. “It also
Mingde Heavy Industries. The contract, worth
going on in the world bulk fleet, with an aver-
speaks to our corporate commitments of fleet
an estimated CAN$205, includes an option for a
age age of more than 30 years. In order to
modernisation and sustainability. These ships
further two vessels. The first ship is expected to
encourage investment in the fleet, the Canadian
will be the most advanced, and environmentally
enter service in 2013 with the remaining ships to
government proposed a tax relief scheme, at the
friendly, self-unloaders in the trade.”
follow through mid-2014. “These new vessels will in
replace existing ones that are approaching the
duty on imported vessels for ships active in both
partnership with Finland’s Deltamarin, which
end of their economic lives,” the company said.
domestic and international trade. “Historically,
has produced a number of environmentally-
Algoma clearly has a considerable investment
duty remission requests for imported vessels
friendly vessel designs in recent years, including
facility available, as it announced in February
were reviewed on a case-by-case basis. As
a project with Barry Salles Roglliano to optimise
2011 that it is to buy out Upper Lakes Group, its
Canadian shipowners embark on a major fleet
bulker design. The vessels will be built at
partner in the Seaway Maritime Transport pool,
renewal, there is a need for greater certainty and
Chengxi Shipyard in Jiangyin, China, with the
for some $85 million. The deal includes Upper
predictability for all stakeholders,” a government
first steel to be cut this spring. Delivery of all five
Lakes’ fleet of 11 lakers, as well as the remaining
statement said. According to the government,
vessels will take place in 2012.
share of two further vessels that are jointly
beginning of 2010, that would waive the 25%
The
vessels
have
been
designed
Canadian shipowners operating in coastal trade
“CSL has had a long-term relationship with
owned by the pool and another vessel currently
estimate they will import a minimum of C$1 bil-
Chengxi that dates to 2004 and includes the
under construction. “The acquisition of the ULG
lion of tonnage over the next 10 years. The tax
delivery of many of our international forebody
fleet and the remaining interest in SMT will allow
waiver will therefore result in the loss of some C$
vessels from the yard,” said Louis Martel,
Algoma to enhance its focus on its domestic
25 million per annum to the exchequer over the
vice-president, Technical Operations, CSL
dry-bulk marine transportation segment and the
next 10 years. However, the government says,
International. “We’re confident in the experience
very important task of fleet renewal,” said ceo
“The waiving of these customs duties will assist
they have to build quality self-unloaders. We also
Greg Wight.
Canadian shipowners to cost-effectively invest
wanted to make sure our return on investment
in, and renew, their fleet with more efficient,
in the areas of efficiency and environmental
technologically sophisticated and environmen-
performance is immediate.”
From farmers to shipowners
tally advanced vessels. [...] The duty remission
“There’s obviously a lot of work to be done
However, it is not just traditional shipowners
will assist Canadian shipowners by making
between now and the time we take possession
and operators who are looking to invest. The
replacement vessels more affordable and reli-
of the vessels, but we’re anticipating their
Canadian Wheat Board has purchased two
able, and lower shipping costs will enhance
addition to our fleets, especially here on the
30,000 dwt lakers identical to those ordered by
the competitiveness of those industries.” It also
Great Lakes where we need to look back to the
Algoma, and which will be operated by Algoma
points out that the waiver will have little practical
early 1980s to see the last full newbuild laker to
as part of the Seaway Maritime Transport pool.
effect on Canadian shipyards, as the vessels
have come online,” said Claude Dumais , CSL’s
According to the CWB, the investment in these
that would be imported cannot be produced in
vice-president, technical operations.
two vessels – which will be paid for upfront –
In line with the company’s aim of improving
will generate an estimated $10 million per year
the environmental performance of their vessel,
in revenue benefits to farmers once the ships
the newbuildings will include a number of fuel-
are operational in 2013. The CWB transports
CSL makes first move
saving and pollution-reducing technologies,
between 3 and 3.6 million tonnes on grain per
A large order from Canadian Steamship Lines
including optimised hull shapes to improve fuel
year on the St Lawrence Seaway, with a dollar
(CSL), announced in September last year, could
efficiency and maximise cargo lift.
value of between C$70 and C$75 million. It
Canada on a cost-competitive basis.
be the first sign of the predicted ordering boom.
expects volumes through east coast ports to
Initial reports said that the group had ordered
grow more than 20% by 2018 due to increased
10 new vessels. While the group ultimately
Consolidation on the cards?
confirmed only five, this is still a major investment
Algoma Central Corporation also took advantage
in the St Lawrence fleet.
of the tax waiver, announcing in December that it
theBaltic Spring 2011 www.thebaltic.com
demand from Europe, Africa and Latin America.
91
Commercial profiles
Lighthouse Shipping Limited L
ighthouse Shipping Limited is a Canadian-
shallow drafts in the ports, by utilising an
Ship Brokers and Agents (USA) Inc. (ASBA),
owned and operated brokerage firm, strategi-
extensive barging system for discharge of the
the Chamber of Marine Commerce, and WISTA
cally located in Oakville, Ontario near the shores
cargo alongside the vessel, benefiting both
Canada.
of Lake Ontario. Specialising primarily in the
the customer’s operation and bottom line. This
Lighthouse Shipping Limited can support
movement of dry bulk commodities worldwide
ability to adapt has given Lighthouse Shipping
your maritime needs and offers a level of service
and within the Great Lakes, the company has
a sound basis for continued development and
with knowledge, integrity and commitment.
expertise in arranging contracts of affreightment,
has allowed for steady fiscal revenue growth
timecharters and spot contracts for commodi-
year after year.
ties such as steel, iron ore, gypsum, aggregates,
Lighthouse Shipping advises clients within all
coal, pet coke, copper slag and cement, as well
the regular bulk segments from handy/handymax,
as a full range of other dry bulk commodities.
panamax and belt self-unloading vessels for bulk
Lighthouse Shipping also has experience in
flowable cargoes. The belt self-unloading vessel
the movement of liquid commodities, such as
provides a fast, efficient and environmentally
biodiesels and crude oils.
responsible method of discharging the cargo. One of Lighthouse Shipping’s primary goals
in the transportation industry, Head Broker &
is to keep the transportation costs low and
For more information please visit
President, Ross A. Cunningham, prides himself
to ensure that there are no delays that could
our website:
on maintaining long-term client relationships
lead to demurrage charges. The brokers and
www.lighthouseshipping.com
and providing honest, impartial advice long after
staff have longstanding relationships with large
or contact
the fixture has been concluded. Lighthouse
international traders, charterers and shipowners
Ross A. Cunningham
Shipping can assist clients with their changing
worldwide. Our administrative staff is committed
Tel: +1 905 844-2664
shipping needs; for example, the company
to excellence and efficiency when completing all
Fax: + 905 844-8227
recently helped solve a client’s transportation
post fixture documentation. Lighthouse Shipping
E-mail:
requirements in the Caribbean caused by
is proud to be a member of the Association of
ross@lighthouseshipping.com
LIGHTHOUSE
With over 40 years of professional experience
92
&
Dry Cargo Ship Brokers Tel: +1 905 844 2664 Fax: +1 905 844 8227 E-mail: ross@lighthouseshipping.com Website: www.lighthouseshipping.com
theBaltic Spring 2011 www.thebaltic.com
Lighthouse Shipping Limited 1147 Shaw Street, Oakville, Ontario L6L 2S1, Canada
Commercial profiles
Aker Arctic (AARC) A
ker Arctic (AARC) is a company established in 2005 to continue the successful R&D
work of the former Kvaerner Masa-Yards´ Arctic Technology Center MARC. With a brand-new ice model testing facility in Helsinki, the company, with some 40 employees, offers its clients research and development services on maritime transportation systems, ships, offshore structures and ports, and ship and propulsion system design, as well as ice navigation training on a worldwide basis. The company offers various designs for icebreaking vessels. Recent projects include two Arctic shuttle tankers for Barents Sea operation and three Caspian Sea shallow water ice breaking tugs. The company is also heavily involved in developing new logistic systems for Arctic areas, eg for liquified natural gas (LNG) and Arctic mining. A number of new, innovative ship concepts have also been developed and introduced to the market by AARC. Good examples of such work are the Aker Arctic DAS™ supply icebreakers Arcticaborg and Fesco Sakhalin, the Aframax tankers Tempera and Mastera and the Norilskiy Nickel, first in a new Arctic container vessel series, which were completed in 2008 at Wadan Yards, Germany. As a result of joint development work with Aker Solutions, through Aker Engineering and Technology AS, Aker Arctic now also has available a portfolio of ice-going ship design packages for shipowners and shipyards.
theBaltic Spring 2011 www.thebaltic.com
93
Commercial profiles
Green Technology Exhaust Gas Cleaning
The EGC system is a combined (hybrid) wet
customised to the individual ship’s energy
Installing the Aalborg Industries exhaust gas
scrubbing system able to operate in seawater
consumption and operational pattern to secure
cleaning (EGC) technology, vessels sailing in
mode (open loop) and freshwater mode (closed
optimum conditions.
emission control areas (ECAs) can continue
loop). At open sea, the system operates in
For fuel efficiency improvement, the waste
operation on heavy fuel oil (HFO) and at the
an open loop with seawater and saves the
heat from the exhaust gas represents the
same time be in full compliance with the sulphur
use of NaOH and freshwater. In harbours and
greatest potential savings for the benefit of
emission regulations. The EGC technology has a
estuaries, with strict discharge criteria, the
shipowners and charterers. With the installation
SOX removal rate equivalent to 0.1% sulphur in
system is able to operate on freshwater in a
of a WHR system, up to 12% immediate fuel
fuel. Operating with this technology, shipowners
closed loop system. The combined EGC system
savings can be obtained.
and charterers can obtain significant fuel savings
thus offers maximum flexibility and, moreover,
compared to using low-sulphur fuel oil (LSFO),
the operational costs are kept to a minimum.
With today’s fuel oil costs, a WHR installation is a very attractive investment, with payback
leading to a return on investment (ROI) as short
Aalborg Industries’ EGC system has been
times down to two to three years, depending
as one to three years, depending on the vessel
installed on board DFDS’s ro-ro vessel, Tor
on the complexity and operational pattern.
operating period in ECAs.
Ficaria, after a 21 MW MAN Diesel B&W engine
Return on investment (ROI) is made without
and is by far the world’s largest EGC system
any attention to the reduced CO2 emission,
installed on board a ship.
and consequently the ROI could be even more
Aalborg Industries has more than 30 years of experience of supplying scrubbers as an integrated part of inert gas systems (IGS)
attractive.
on board ships. Our experiences from these
Waste heat recovery
systems, in combination with our experience of
Aalborg Industries has led the way in the
supplying exhaust gas boilers after large marine
development and optimisation of waste heat
diesel engines, have been used to design a
recovery (WHR) systems in close cooperation
highly effective exhaust gas cleaning (EGC)
with engine suppliers, turbine suppliers and
For more information, please visit our website:
system.
shipowners, ensuring that each system is
www.aalborg-industries.com
SAL puts Svenja, the world’s largest heavy lift vessel, into service W
ith a lifting capacity of a total of 2,000
originate
high-
heavy lifter measures 160.5 metres in length
tonnes and speed of 20 knots, it’s the
performance cranes, for example, which boast a
and 27.5 metres in width, and has a loading
world’s largest heavy lift vessel to date: SAL
previously unheard-of lifting capacity for a heavy
capacity of 11,000 mt and a freight volume of
puts the first of two newbuildings of type 183
lift vessel of 2,000 tonnes, are sourced from
40,000 cu m.
into service. The company, which ranks among
Neuenfelder Maschinenfabrik (NMF) in Hamburg.
In March 2011, SAL will be putting a second
the leading international heavy lift shipping com-
Apart from their lifting capacity, the cranes are
type 183 into service. The vessel is already
panies and is based near Hamburg, commis-
notable because of their significant outreach
under construction at the Sietas shipyard in
sioned the Sietas shipyard in Hamburg with the
of up to 38m. The ship’s diesel engine, with its
Hamburg, Germany and will be equipped with
design and construction of this innovative vessel
12,600 kilowatts and its capability of generating
a DP 2 System. Thus, SAL will offer their clients
type, which was built in just six months. On
a speed of 20 knots, comes from the Augsburg-
even greater assistance in offshore subsea
December 9, the heavy lift vessel is christened
based MAN Group. This combination of speed
installations, offshore wind power plant erection,
at the Überseebrücke bridge in its home port of
and performance makes the ship unique in
and transportation of heavy and unconventional
Hamburg. On its maiden voyage, the vessel is
the project area. In addition, MV Svenja can
cargo.
heading towards the Far East. Upon its return
operate as an ‘open-top’ ship when transporting
to Europe it will transport complex ‘templates’
cargo of very large dimensions. Moreover, it is
for offshore oil exploration along the Norwegian
equipped with a dynamic positioning system – a
coast. The offshore energy sector will be one of
computer controlled system for positioning the
SAL Schiffahrtskontor Altes Land GmbH & Co. KG
the core segments of employment for this highly
vessel in offshore operations. In addition to its
Bürgerei 29, 21720 Steinkirchen, Germany
specialised vessel.
high performance, MV Svenja possesses an
Tel: +49 4142 81 81 0
The MV Svenja of type 183 represents the
Environmental Passport, meeting the highest
Fax: +49 4142 81 02 81
latest generation of heavy lift vessels. Seventy-
environmental standards. It also has ISO 14001
E-mail: sal@sal-heavylift.com
five per cent of the parts used in its construction
and OHSAS 18001 HSE certifications. The
Website: www.sal-heavylift.com
94
theBaltic Spring 2011 www.thebaltic.com
from
Germany.
The
two
Commercial profiles
Grieg Star Shipping AS (Star) G
rieg Star Shipping AS (Star) is in charge of
services from Chile to the Mediterranean and
offices. This allows for quick and accurate
the worldwide marketing and operation of
from Brazil to the Far East, with forest products
solutions to the often-complicated stowage.
and project cargoes.
They also frequently attend to the load and
the Grieg Group’s fleet of advanced open hatch vessels, as well as a fleet of conventional bulk
Star has designed and built cargo handling
discharge to ensure safe and efficient operations.
equipment ranging from pulp frames capable of
In addition to the advanced ships and cargo
Based in Bergen, Norway and with 16 offices
loading 56 tonnes in one lift, to vacuum clamps
handling equipment, Star provides IT solutions,
in strategic locations in Asia, Australia, USA,
for paper rolls with capacity up to 35 tonnes.
enabling shippers, forwarders and agents
Canada and Europe, Star’s open hatch division
These, as well as grabs and other special
to handle everything from documentation to
runs the specialised ships in regularly scheduled
cargo handling gear, are serviced in their own
customs papers.
break bulk parcel trades. Export trades based
workshops in Vancouver and Rotterdam.
carriers.
on North American forest products, aluminum
The Grieg Group has ordered 10 new open
and other break bulk cargoes to Asia, north
hatch conventional crane general cargo carriers,
and south Europe is a substantial part of their
which are due for delivery during 2012-2014. The Conventional Division of Star operates
business. The design features of the open hatch ships
a modern fleet of about 20 geared and grab-
(removable tween decks, gantry cranes upto
supplied conventional ships ranging from 25,000
68 mt, rain protection over unobstructed holds,
to 55,000 dwt trade worldwide, combining
cell guides) allow for fast and safe handling
contracts and tramping. The flexible ships carry
of project cargoes, pipes, windmills, metals,
a variety of cargoes such as coal, coke, alumina,
newsprint,
cargoes.
fertilizers, ores etc. In addition, the Grieg Group
Shippers welcomed these features when Star
has ordered two supramax dry bulk vessels to
built up their successful trades from Asia and
be delivered in the second half of 2012.
containers
and
bulk
Europe back to both coasts of North America.
Both divisions enjoy the support of skilled
New trades are evaluated and added as
operations managers and port captains located
All Star offices welcome your freight enquiries.
the fleet grows. The most recent additions are
both in the headquarters and in the branch
www.griegstar.com
West Atlantic Marine Surveyors & Consultants S
ince 1979, West Atlantic Marine Limited has
and expertise in excess of a combined 100
Please visit our website www.wamcoltd.net or
provided the Bahamas and International
years. We are also proud to have on our staff
www.westatlanticmarine.net. We look forward
Insurance and Marine Industry with quality
qualified surveyors recognised by the Society
to serving you and your clients.
marine surveying and consultancy services. We
of Accredited Marine Surveyors (SAMS), the
are a full-service marine survey company who
National Association of Marine Surveyors
provides a very ‘hands-on’ station that is some-
(NAMS), and the International Institute of Marine
what different from the norm.
Surveyors (IIMS). Our diverse marine services
For the past 22 years we have represented
includes, but is not limited to, marine surveying
the flag state requirements as inspectors
of a variety of marine craft ranging from small
and surveyors (non-exclusive agents) for ship
private pleasure vessels through to commercial
registry within the Bahamas (Bahamas Maritime
ships of all sizes and types, cargo damages and
Authority). West Atlantic Marine Limited (Lloyds
structural damages to marinas and harbours.
of London Agents in Freeport) would like to
Rescue, marine emergency, salvage & towage
assure you that we are poised and ready
services, and loss adjusting are also available
to provide all marine interests (underwriters
through our group of companies.
and owners) with efficient and quality services
Our aim is to provide our clients with
throughout the Bahamas, Turks and Caicos
fast, efficient and economical results whilst
Islands, and throughout the Caribbean.
maintaining a high quality product and service.
Our team comprises quality internationally recognised
general
marine
and
engineer
We are proud to be a part of our clients’ solutions.
surveyors who possess maritime experience
theBaltic Spring 2011 www.thebaltic.com
95
Commercial profiles
Jeppesen Norway AS E
GERSUND, Norway, 22 December, 2010
training requirements fast approaching, Greek
About Jeppesen
– Jeppesen has donated a classroom sup-
shipowners need to get more and more key
Jeppesen is a market-leading provider of vessel
ply of its C-MAP OceanView office chart and
staff trained in handling ECDIS and planning and
operations services and digital navigation
route planning systems to the Merchant Marine
navigating routes in an electronic context,” said
solutions, based on worldwide vector chart data
Academy of Makedonia (AEN Makedonias) in
Willy Zeiler, marketing manager, Commercial
type approved to ISO19879, meteorological
Greece. The academy is one of Greece’s leading
Marine at Jeppesen.
information and transmission technologies.
Today Jeppesen supplies electronic charts
Jeppesen offers a wide range of navigation
and route planning tools like C-MAP OceanView
and operations products and services to both
With Jeppesen’s C-MAP OceanView product,
to more than 150 merchant marine training
recreational and commercial marine markets.
students at AEN Makedonias will use C-MAP
institutions around the world. As a result,
Safety-conscious
Professional+ electronic charts in their PCs
thousands of seafarers learn annually how to
of vessels ranging from coastal to SOLAS
for familiarisation and route planning. Planning
plan a route on a PC, order the appropriate
class vessels rely on Jeppesen for innovative
routes using C-MAP Professional+ allows the
electronic charts and then export the route to
navigation solutions that improve safety and
students to determine optimal routings, taking
an ECDIS simulator, using technology from
efficiency.
into account depth, speed and navigational aids,
Jeppesen.
institutions for the training of deck officers, and trains more than 100 officers yearly.
Jeppesen
and even weather prognoses can be overlaid on the electronic charts. Such knowledge is an important part of the overall ECDIS training requirements stipulated by the IMO during 2010.
is
boaters
a
and
subsidiary
operators
of
Boeing
Commercial Aviation Services, a unit of Boeing
About the Merchant Marine Academy of Makedonia (AEN Makedonias)
Commercial Airplanes. Jeppesen corporate information is available online at jeppesen.com.
“We have close ties to the Greek shipping
AEN Makedonias was established in 1969 as a
community and this donation is further evidence
merchant marine academy for engineer officers.
Jeppesen Norway AS
of our commitment to the next generation
In 1975, the academy began training bridge
P.O. Box 212, 4379 Egersund, Norway
of high-quality Greek deck officers. With the
officers. Today, it is the second-largest academy
E-mail: info.marine@jeppesen.com
mandatory ECDIS deadline and associated
in Greece for merchant marine officers.
www.jeppesen.com/marine
Responsible ship recycling M
aersk Ship Recycling is a leading provider
financial incentive to break up vessels, as it
approaching within an estimated five years, and
offering a complete range of ship recycling
lends a potential for profit, whereas responsible
Maersk is making a business out of responsibility.
services from the last commercial port until
recycling most often comes with a price for the
Green organisations are lauding Maersk for
the ship is completely recycled. This includes
shipowner.
being ahead of the rest of the industry.
ment, control and supervision of the entire ship
Benefits – protecting the environment of our people
Future and further development
recycling process, yard assessment, and health
Maersk Ship Recycling works with an ISO14001
To date, we have successfully recycled ships in
and safety training. Our objective is to improve
and OHSMS 18001 certified yard in China
China without a single injury or spill. In 2009, with
the environmental legacy of the ship recycling
to recycle the vessels, which lives up to
increased interest from third parties, 20 ships
industry and act as a good corporate citizen.
stringent international standards for safety and
were recycled in a safe and environmentally
environment, preventing unnecessary loss of
sound manner. We remain involved in work
Background
life and damage to the environment, whilst
of the EC DG Environment, ILO, IMO, Basel
A large part of the world shipping industry
maintaining a profit for older ships.
Convention and local governments such as
inventory of hazardous materials (IHM), ‘Green Passport’, ship recycling plan, waste manage-
China, and will continue investing in green
still uses once-pristine tidal beaches in India, Bangladesh and Pakistan as a junk yard.
Results
ship recycling to stay true to our environmental
Between 60% and 80% of the world’s out-of-
Besides raising the bar on environmental and
policies – now and in the future.
service vessels are sailed on shore, where soft
human safety issues within the industry, Maersk
sands cannot support crucial safety measures,
Ship Recycling, a special unit for ship recycling,
and allow pollution to seep directly into the
actively participates in the legislation process
delicate coastal zone environment, ruining the
and promotes green ship recycling options
natural environment and causing harm to the
for the maritime industry, working towards a
Find out why other shipowners have chosen us:
people and animals living in it. Depending on
worldwide level playing field on green ship
E-mail: shiprecycling@mearsk.com
steel prices, ship scrapping offers a powerful
recycling.
www.maerskshiprecycling.com
96
theBaltic Spring 2011 www.thebaltic.com
International
requirements
are
Commercial profiles
BBC Chartering B
BC Chartering is one of the world´s lead-
and abilities, necessary to handle all types of
has been in this business since the start,
ing companies in transportation of Non-
complex transportation projects.
obtaining a tremendous amount of knowledge and expertise as a result.
Containerized Goods. With more than 120 ves-
The “new wave” of vessels, soon to be
sels, and 24 offices around the globe, BBC is
joining the BBC Chartering fleet, represents their
The strength of the fleet and the capabilities of
able to offer short reaction times and tailor-made
commitment to the future and to growth. This
their professionals crew are critical components
solutions.
series of new generation super heavy lift vessels,
in meeting the manufacturing and installation
some with a lifting capacity of up to 900 mts, will
deadlines that the customers and industry
be fully deployed by 2012.
demands.
With the global office Network, BBC offers local knowledge and understanding. Quality of service is their hallmark; dedicated shipping
BBC is also giving a strong commitment
Following the philosophy of Six-Sigma and
professionals are handling all kind of projects
to its Bulk Customers by providing new bulk
combining it with the framework of ISO 9001,
–large or small- with consistency and care
vessels of the BBC Neptune type, which can
BBC Chartering continuously balance all relevant
from the initial booking, to stowing and lashing
carry 37,300 dwat. Furthermore the BBC Bulk
key factors to realize maximum customer
analysis, preparation for loading, all the way to
Division – Headquartered in Leer, Germany-
satisfaction and efficiency.
the actual handling, stowing and securing.
coordinates and provides customised and highly
Operating a fleet, ranging from size 3,500 dwat to 37,300 dwat with lifting capacities up
efficient solutions by utilizing the global set-up
For further information visit www.bbc-
of 24 Offices.
chartering.com
to 700 mts and the shallow draft characteristics
BBC is also proud to play a leading role
allows us to serve almost any port and offshore
in the carriage and handling of wind turbine
operation. That is why the company is perfectly
power as it continues to grow in popularity
geared for every break bulk, heavy lift, project
and is embraced by governments and energy
and bulk cargo requirement. Specialised in
companies worldwide.
heavy lifts and project cargoes, BBC Chartering
As one of the Pioneers in transporting
has the commercial and technical resources
windmills, with the first shipment in 1998, BBC
KTK Tugs W
ith a fleet of powerful tugs, The Curacao
most effective and professional service.
kinds of ships manoeuvring in difficult conditions.
Towage Company provides superior tow-
As experts in the towage & salvage field,
They are all equipped with state-of-the art
age & salvage services not only in the bus-
our employees are involved in every stage
fire fighting, salvage and telecommunications
tling Curacao harbour, but also throughout the
of client service, from the towage & salvage
equipment. We pride ourselves on the proven
Caribbean, Central America and the northern
request implementation to completion, offering
raw, pure strength of our tugs, the engines and
coastal regions of South America.
continual functional and technical support.
the machinery we have used effectively since
Our services include: ocean towage, harbour
They have degrees from Dutch nautical schools
1985.
and coastal services, barge and dredger
and are constantly brought up-to-date on the
We have the expertise to turn strength into
transportation, fire fighting assistance, port
latest technological developments. Our close
the power to tow thousands of vessels a year
and terminal towage, crew management and
relationship with the Dutch Marine Division
and have the power to provide a range of
training, and technical maintenance, all based on
makes its expertise, support and guidance
professional, reliable and efficient services.
the Lloyd’s Register Quality Standards.
readily available.
Exceptional
functioning
and
effectively
Our mission statement is “Through expertise,
Our extensive skills encompass all aspects of
directing team members with Nautical, Technical
strength becomes power” and the our vision
implementation and operation, including business
and Management skills, coupled with extensive
is to position itself as a strong and reliable
requirements definition and development of
maritime knowledge make the Curacao Towage
towage company, serving both the domestic
functional specifications for client approval. The
Company strong and reliable.
and international sectors.
Curacao Towage Company is always available
Our mission is to exceed the expectations of every client by offering outstanding customer
online for handling client contact. We possess operational and technical
greater
experience that makes us strong and reliable.
Pletterijweg z/n, Willemstad, Curaçao,
value, thus optimising system functionality
Our powerful tugboats stand ready 24 hours a
Tel: (+599(9) 461-1055
and improving operational efficiency. This
Fax: (+599(9) 461-2055
expertise combined with hands-on experienced
day, able to rush out under any circumstances. The ASD tugs that we possess can pull at a 360o
employees, ensures that our clients receive the
angle, making them exceptional guides for all
Website: www.ktktugs.com
service,
increased
flexibility,
and
theBaltic Spring 2011 www.thebaltic.com
E-mail: s.reenis@ktktugs.com
97
Commercial profiles
Satakunta University of Applied Sciences T
he Faculty of Technology and Maritime
Additionally, the following areas are covered:
The Faculty has great expectations for
Management (Rauma, Finland) offers its stu-
protection of marine environment; chartering
the prospective postgraduate programmes.
dents both long traditions and modern educa-
and insurance policy; as well as crucial personal
Developing the quality of education based on
tion.
skills such as organisation, project management
the needs of the client has become standard
Training in bachelor´s degree programmes,
and decision making. The training programme
practice. Research and knowledge transfer is
marine engineer and sea captaincy is based on
consists of various courses that provide the
carried out by the Faculty’s experts as active
the regulations set by the STCW. Both external
students with the opportunity to develop their
project work. Maritime projects such as
auditing and accordance with the IMO rules
skills and knowledge in these fields. We also run
OSKAR (knowledge assessment) have led to
guarantee the quality of training, continuous
the Maritime Resource Management courses
several sub-projects from shipping companies,
development and progress. Our faculty is a
licensed by the Swedish Club.
administrations and the EU.
member of IAMU, IMCA, BIMCO and NTS organisations.
Rauma Maritime Management is well
In addition to the degree programmes we
equipped with technical appliances and
also organise a raft of further education courses, such as dynamic positioning training audited
Maritime training today is a hi-tech field
computer software. In our modern simulator
and also requires good social skills. Thus,
centre, students have an opportunity to
by The Nautical Institute, Marine Transportation
great emphasis is placed on several special
practice their navigation or engineering skills.
(oil, chemical, gas), and ISPS (SSO, CSO and
subject matters covering the following fields of
During their practical training, students get
PFSO), ECDIS and enclosed space entry training
knowledge and skills: navigation; cargo handling
hands-on experience of working life and
for offshore companies to name just a few.
and stowage; controlling the operation of the
duties on board ships. This onboard training
ship and care for persons on board; marine
also provides the students with the practical
engineering; ship’s maintenance and repair; and
experience required for certificates at different
marine radio communications.
levels of training.
www.samk.fi
Grindrod Limited World class shipping and freight logistics solutions
and Chemical tankers. The Shipping division
Safmarine, operates a feeder service around the
also charters in ships on long- and short-time
southern African coast.
The
Grindrod
Freight
Services
land-based
the
charters, carrying all types of cargo globally.
Johannesburg Stock Exchange and offers a
Offices in Cape Town, Durban, Richards Bay,
operations focus on terminals, intermodal
worldwide range of high-quality shipping and
Rotterdam, Vancouver, Singapore, Tokyo and
solutions, rail, port operations and all facets of
freight services by land, air, and sea.
London ensure the business runs smoothly.
traditional logistics, including international freight
Grindrod
Group
is
traded
on
forwarding, contract logistics and specialized
The business is all about moving cargo and
Grindrod’s sound shipping expertise, strong
providing customers with simple, convenient
customer base and firm partnerships are
solutions to complex operational exercises.
augmented by the service offerings of the Freight
Grindrod is headquartered office n South Africa
Services, Trading and Financial divisions who
Bulk trading solutions
and employs about 5,000 skilled and dedicated
integrate seamlessly to provide total logistics
Grindrod’s Trading division trades worldwide
people worldwide.
solutions across the globe.
in dry and liquid bulk commodities, including
industry solutions.
agricultural products, industrial raw materials,
An expanding fleet with global reach
Growing the future
Grindrod Shipping’s modern fleet trades globally
encompass a major share of the southern
Financial solutions
under the banners of Singapore-headquartered
African ships agency business, sea freight
Grindrod’s bank offers tailored financial solutions
Island View Shipping and
logistics and land freight logistics.
to corporate and private clients.
Unicorn Shipping.
marine fuels and lubricants.
Grindrod’s Freight Management operations
IVS is focused on moving dry bulk cargo such
Grindrod’s Ships Agency is a leading player in
as minerals, coal ores and agricultural products.
its field offering international shipping operators
In addition to financial sustainability, as a top
Unicorn Shipping focuses on moving liquid
a broad spectrum of services in South Africa,
ranked listed company Grindrod is committed
chemicals and petroleum products.
Namibia, Mozambique, Malawi, Zimbabwe,
to minimizing the impact of its operations on the
Botswana and Swaziland.
environment and is committed to community
Grindrod
operates a diversified fleet of modern ships including Capesize, Panamax, Handymax and
The Seafreight Logistics business, Ocean
Handysize bulk vessels as well as Product
Africa Container Lines, in partnership with
98
theBaltic Spring 2011 www.thebaltic.com
projects focused on education.
Commercial profiles
Taking a Holistic Approach to Navigate Cargo Risks “Touching the Adventures and Perils which we,
organisation’s assets, maintains strong customer
the said Underwriters, are contented to bear and
relationships and safeguards personnel, as well
take upon us, they are of the Seas ...”
as protects the image of the organisation.
and tailored to specific needs and; • Premium tax allocation to ensure compliance. Working
closely
with
their
brokers,
The perils clause of a standard Marine Cargo
Multi-national companies look to global insurers
multinational firms are seeking global solutions
policy is familiar to every transportation specialist,
for the right insurance solution, which most
that integrate corporate governance with local
marine underwriter, broker, or maritime lawyer.
commonly requires a balance between a master
compliance in a seamless product. Fortunately,
But is this old world language still relevant in
program and local policies.
global cargo insurers, like XL Insurance, are
Local policies are issued to a “good local
thinking along the same lines and are delivering
Today’s news headlines are surprisingly
standard” with limits to terms and conditions
insurance solutions that address cargo risks
similar to what businesses and their underwriters
adequate for the expected exposures in the local
worldwide.
have faced since the development of the modern
jurisdiction. A master program is issued to cover
insurance industry. The ‘adventures and perils’
global exposures, often with manuscript terms
to cargo are the same. It’s the enterprises – now
that take into account global risk appetite and
more global – that are different, and they have
the organisation’s experience, as well providing
discovered that their networks expose them to
DIC and DIL coverage for the local policies.
losses from multiple perils, simultaneously.
Special features in a master program may
today’s global marketplace? Yes, it is.
include:
William Rowland is XL Insurance’s Cargo
risk management strategy takes an holistic
• Risk engineering or loss prevention service
Product Line Manager in New York.
approach to manage the risks with a balance
to help identify/mitigate potential exposures;
For the multinational organisation, a robust
and
• Ongoing detailed risk management analysis
insurance, is compliant so that it protects the
across the program, by policy and region,
between
retention,
loss
prevention
“XL Insurance” is the global brand used by member insurers of XL Group plc (NYSE: XL). Visit: www.xlinsurance.com.
MarineSec M
company
against being boarded and can prove invaluable.
specialising in security solutions for the
Also available is advice on defensive measures
international shipping community. With the
currently on the market, not all of which are as
spread of international piracy and terrorism,
effective as manufacturers claim; some may
shipping companies have to look at how to
actually make your defensive position worse!
arineSec
is
a
UK-based
protect their valuable ships, cargoes and, of
If you want 100% guaranteed security then
course, crews. MarineSec provides a complete
there is currently only one solution: that is
Suite 5 Grosvenor Mansions
one-stop service for companies wishing to
to man your ships with security personnel.
Queen Street
improve their security profile and lessen the
MarineSec only employs former Royal Marines
Deal Kent
chances of losing a valuable asset.
and UK police officers in this role, so their
CT146ET
MarineSec’s expertise not only comes from
training and bearing are of the highest order.
UK
the defence and security sectors but also from
These high quality personnel will act on your
Website: www.marinesec.com
within the shipping industry itself. Being affiliated
behalf, protecting your assets and ensuring your
Email: security@marinesec.com
to leading maritime surveyors and shipping
ships and crew reach their ports safely.
Tel: +44 [0] 1304 371105
companies gives them a better understanding
MarineSec’s services pay for themselves
of a client’s needs and a wealth of operational
many times over in reduced insurance costs,
shipping experience to draw on.
direct routing between ports, and fuel savings
MarineSec strongly believes that security
when vessels can travel at their most economic
starts with senior management and offers
speed instead of high speed transits through high
training which prepares managers for dealing
risk areas. Whatever your security requirements,
with the current security threats. Officer and
MarineSec will have a solution for you.
MarineSec
Fax: +44 [0] 1304 371254
crew training is also offered, both ashore and at sea during a transit if required. Consultancy and security surveys of your ships can harden them
theBaltic Spring 2011 www.thebaltic.com
99
Commercial profiles
Combi Lift K/S C
ombi Lift’s main activities are worldwide ocean
Mission: Combi Lift’s mission is to put customers
transportation of heavylift and project cargoes,
and clients first, through meeting and exceeding
and today Combi Lift is one of the world leaders
their expectations. We do this by providing tailor-
within this segment. The current fleet consists of 14
made heavylift transportation solutions which are
heavylift carriers, including four semi-submersible
characterised by being safe, innovative and reliable.
dock vessels with the ability to load and discharge
Our mission also extends to our employees and
cargoes by means of lifting, rolling or floating the
our fleet, both aspects of our business in which we
same. In addition to the existing fleet, Combi Lift
will continue to invest substantially.
currently has a newbuilding programme for two
Vision: Our vision is to position Combi Lift as a
heavylift vessels which will be delivered during 2010. The main philosophy of Combi Lift is to com-
QHSEP Policy: On 5 September 2007 K/S
leading company in heavylift ocean transportation
bine the best expertise allowing us to lift the various
Combi Lift and Combi Lift (Germany) GmbH
and logistics, setting the highest standards through
projects with the highest standards and quality.
were the first companies worldwide, within
sound business ethics, inspirational leadership and
their segment, to obtain DNV certifications
integrated QHSEP best practices.
Chartering and operation: The chartering
for fully implementing all three Management
and operation departments are situated in Korsoer;
System Standards, both ashore and on board
the two departments comprise a team of skilled
their vessels. In addition to the certification,
personnel. Combi Lift is able to provide customers
Combi Lift updated the OHSAS 18001 standard
Contact details:
with a service that suits their requirements.
certification from the 1999 standard to the new
Anders Poulsen C.O.O.
2007 standard. Once again, Combi Lift is the first
Combi Lift K/S
Engineering: The engineering & technical
heavylift carrier in the world to obtain this updated
Batterivej 7-11
management is run by Combi Lift (Germany)
standard. Combi Lift views the ISO certifications
4220 Korsoer
GmbH in Bremen. Working with an experienced
as a key to upholding and maintaining good
Denmark
staff of master mariners, naval architects
business practices. The company’s QHSEP
Tel: +45 581 620 30
and welding experts, Combi Lift is able to
policy ensures continuous improvement in
Fax: +45 581 620 25
provide tailor-made solutions that suit individual
its Quality, Health, Safety, Environment and
E-mail: mail@combi-lift.eu
customers’ demands and expectations.
Pollution Prevention management activities.
Website: www.combi-lift.eu
ACM-Trading CM-Trading Ltd is a family-owned company
A
has been carried out using a series of model
The future
located in Naantali, south-west of Finland.
tests to establish optimal strengths and then
ACM-Trading’s vision is to continue developing
The company has been building its reputation
apply these to the final design of several ATB-
the Pushpin® couplers for tug and barge
within Maritime automation and engineering
coupler sizes. The model test series were made
operations as well as offshore applications, and
since 1969. Additionally, ALVARS Oy, (www.
by VTT Technical Research Centre in Finland
to become even more competitive, particularly in
alvars.fi) Naval Architect and Engineering corp.
during 2003. Their purpose was to find out
designing solutions for ice conditions.
is an associate partner of ACM-Trading.
what kind of forces the couplers would have to endure.
Current activities
The latest development is a coupler system
Today, the company concentrates on marketing
which allows a pusher tug and barge to be
and
Systems
engaged during the loading or discharging
and developing a wide range of new ATB
process; the system is called Pushpin®-
(Articulated Tug & Barge) coupling systems,
SliderRig Coupler System.
selling
Pushpin®
Coupler
covering the needs of the smallest tug and
The other important area of our activity, and
barge combinations right up to the very largest
one that we have continued to work on since
ACM-Trading Ltd
ones. The criteria for coupler design have been
1969, is the field of valve control systems for
Ketunleivankuja 4
to develop a light system that requires less
modern ships, such as ro-ro/ro-pax, cruise
FI-21110 Naantali
space and that is competitive in terms of cost
liners, ice-breakers etc. Our most recent solution
Finland
and delivery time. The selected materials are
is a Pleiger Electro-Hydraulic “EHS” Actuator,
most advanced, to meet the demands of the
which has been a pioneer in the market. The
Tel: +358-20-799 1400
severe environment, such as anti-corrosion, salt
actuators, with modern marine instrumentation,
Fax: +358-20-799 1409
containment, robustness, sealing against sea
such as tank content measuring equipment,
Cell: +358-40-900 4060
water and lubricant etc.
pumps and valves, make a viable package and
E-mail: kari.laiho@acm-trading.fi
provide added value for the shipyard and owner.
Internet: www.acm-trading.fi
A wide research and development project
100
theBaltic Spring 2011 www.thebaltic.com
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
PAFA Contributes to Ship Safety R&D P
It has developed software for code checks for
AFA Consulting Engineers provide expertise
PAFA participated in SafeFlow, a joint industry
in traditional and advanced structural and
project to clarify impact forces from greenwater
naval architecture technologies, as evidenced
on deck and wave-slam to bow and side-shell.
PAFA executes structural reliability analyses
by expert witness appearances and forensic
Funders included class societies, shipbuilders
as part of its everyday activities. This provides for
engineering undertakings. It is actively involved
and offshore operators. Building on their
design of structures from first principles plus the
in Rule and Standard development for ships and
experience PAFA undertook an investigation of
basis for probability of failure estimates to guide
all types of offshore structures.
hatch-cover loads on a vessel that sank in the
partial load and resistance factor derivations.
PAFA contributed to the Common Tanker
mid-Atlantic, establishing greenwater loading as
PAFA has assessed appropriate partial factors
Rules by developing techniques for assessing
the probable cause. The UK HSE asked PAFA
for ships, offshore structures, jack-up drilling
effects on ship fatigue of hydrostatics and
to ascertain whether current bow-slam design
units and onshore structures such as bridges
load distribution, wave loading, inertial loads,
requirements are still adequate given that a UK
and steel buildings.
and load correlation. It also assisted OCIMF to
FPSO has suffered a second slam incident.
prepare guidance on design of berthing and mooring equipment.
stiffened plates to BS and Eurocodes.
PAFA created software to determine a ship’s ultimate and post peak residual hull girder
Historical data on metocean conditions
strength following grounding or wave-induced
PAFA Consulting Engineers
have been sourced for design, development of
buckling. This allowed rational decisions on
Hofer House
operational limits (weather windows), accident
whether tow or salvage should be undertaken.
185 Uxbridge Road
investigation and preparation of adverse weather
PAFA specialises in stiffened plated structures
working guidance. In another study, extreme
subjected to in-plane and pressure loads, such
Tel: +44 (020) 8979 9544
ship motions were assessed as to the cause of
as floating dock gates, deeply-submerged buoys
Fax: +44 (020) 8979 4887
damage to fragile cargo.
and the Thames Barrier (extended use to 2100).
E-mail: pafrieze@pafa.co.uk
theBaltic Spring 2011 www.thebaltic.com
Hampton, Middx TW12 1BN
101
Commercial profiles
IMS Marine Surveyors & Analytical Laboratories Ltd. Vancouver, BC IMS was established in January 1992 and has
is a FOSFA Superintendent and CFIA certified
which facilitate International Trading according
grown to become one of Western Canada’s
sampler for Phytosanitary Certification, and is
to governing standards and legal requirements.
largest independent marine surveying and cargo
also the Flag State Ship Inspector representing
IMS Laboratory is a FOSFA Analyst L1 (the only
inspection organisations. IMS has earned a
Bahamas, Barbados, Cyprus and Panama, and
one in Canada) and a COPA referee Laboratory.
reputation as being unbiased, objective and
Class Surveyor for CR Taiwan, OMCS Panama
IMS’s achievements in research and method
professional. Based in Vancouver, Canada’s
& Qualitas Panama. IMS is an IICL Container
development have been recognised by USA
largest port, IMS offers a comprehensive range
Inspector and the only certified ultrasonic hatch
and Canadian authorities and producers in
of professional consulting, superintendence,
cover tightness testing firm on the West Coast.
chemistry and oil testing. The application for
inspection,
The company is widely used by most major P&I
direct testing for sulphur and phosphorus by
and H&M Clubs for their various surveys.
ICP-OES has quickly become one of the most
testing
and
marine
surveying
services across Canada, USA and worldwide for International Traders, Brokers, Producers,
In today’s highly competitive and challenging
widely-used method in North America for the
Buyers, Charterers, Owners, Insurances and
shipping industry, losses can materialise in many
quality of vegetable oil, beef tallow and biodiesel
Legal Entities.
ways. Lost time, damage, leaking hatch covers,
testing, and is available online at: http://las.
IMS offers a full-service surveying and
cargo contamination, unprofessionally performed
perkinelmer.ca/Content/applicationnotes/far_
analytical laboratory, providing professional
inspection/surveying work, unfamiliarity with local
sulphurandphosphorusbiodiesel.pdf
testing, certification and consultation in the
conditions etc can be major cost factors. IMS
grain, oilseed, meals, fats & oils, biodiesel,
could reduce your exposure to costs and claims
chemicals, marine, environmental and food-
by being your on-site representative, providing
related fields. The company has developed
experience, prompt, factual, and competitively-
For more info visit: www.ims-van.com
sophisticated computer software for different
priced marine surveys, cargo inspections and
Captain Jostein Hoddevik, President
kinds of surveys and is fully compliant with
testing.
Dr. Tatiana Hoddevik, Head of Laboratory
relevant international standards. IMS became
IMS
offers
a
first-class,
reliable
and
Tel: (1604)298-9968 (24 hrs.)
ISO certified in 2001 and is currently certified
rapid analytical service based on modern
Fax: (1604)298-4862
under the ISO 9001:2008 standards by BSI. IMS
instrumentation and cutting-edge techniques,
E-mail: admin@ims-van.com
International Registries, Inc. (IRI) I
nternational Registries, Inc. (IRI) and its group
and one on the Plus Markets Exchange.
flag achieve the highest ratings in the Port
of affiliated companies are the Maritime and
IRI has a network of offices around the
State Control (PSC) international rankings. The
Corporate Administrators of the Republic of the
globe that have the ability to register vessels
Marshall Islands is the only major open registry to
Marshall Islands.
and yachts, record mortgages, incorporate
be included on the White Lists of both the Paris
companies, issue seafarer documentation and
and Tokyo Memorandums of Understanding
The Marshall Islands Registry, the world’s
service clientele. Decentralisation of operations
(MoUs) and to hold Qualship 21 status with the
third largest registry, stood at 2,328 vessels,
to the 20 worldwide offices, where the Registry’s
United States Coast Guard for five consecutive
weighing in at 64.9 million gross tons at the
maritime experts know owners and operators
years. The Marshall Islands is also listed on the
end of 2010. Vessel types include oil tankers,
personally and work closely with them, continues
‘Low Risk Ships’ list within the Paris MoU’s New
LNG/gas carriers, bulk carriers, containerships,
the growing trend of a quality fleet. The most
Inspection Regime.
mobile offshore drilling units, cruise ships and
important asset to the Registry is its customers,
The main factor that differentiates the
yachts, among others. The Registry has shown
and IRI strives to provide them with a full service
Marshall Islands Registry is its commitment to
substantial growth year after year, not only in
from any office, 24 hours a day.
its customers and the services the Registry
IRI has been administering
maritime and corporate registries since 1948.
terms of vessel registrations but also in terms of
As an active member of the International
provides around the world. Having the properly
Marshall Islands’ registered shipping companies
Maritime Organization (IMO), the Marshall Islands
trained staff available, with the ability to interact
going public on stock exchanges in London, New
has ratified and implemented all key international
locally with PSC authorities, class and owners/
York and Singapore. Of the 36 publicly-traded
conventions and instruments. And as a member
operators, enables the Registry to provide
companies based in the RMI, (32 corporations
of the International Labour Organization (ILO),
round-the-clock services to customers and
and four limited partnerships), 21 are listed
the Marshall Islands has ratified the Maritime
keeps the ships moving.
on the New York Stock Exchange (NYSE),
Labour Convention, 2006 and is working closely
13 on the National Association of Securities
with vessel owners to implement its protocols.
Dealers Automated Quotations (NASDAQ), one
The Registry continually strives to promote
on the London Exchange, one on the Singapore
the quality of vessels in its Registry. Those
Exchange (which is dual-listed on the NASDAQ),
vessels operating under the Marshall Islands
102
theBaltic Spring 2011 www.thebaltic.com
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
Tel: 00 47 55 54 12 50
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
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
theBaltic Spring 2011 www.thebaltic.com
Tel: +44 (0) 207 575 6000
103
Events
What’s on where A round-up of conferences, exhibitions and events in the shipping world March 21-22 Oslo Green Shipping Technology www.informaglobalevents.com/event/greenshiptechnology March 28-30 Abu Dhabi World Ports and Trade Summit Internationally recognised economists, ports authorities, terminal operators, shipping companies, global cargo owners and investors come together to study the alternative futures facing the global ports and shipping industries www.worldportsandtrade.com March 18 Hong Kong Hong Kong Ship Finance & Investment Forum www.marinemoney.com/forums/index.htm April 3-15 Cambridge Anatomy of Shipping For those needing the big picture, whether through changing roles, entering the industry for the first time or as a refresher www.seatrade-global.com April 4-5 New York Freight Derivatives & Shipping Risk Management Managing freight, bunker, interest and counterparty risk www.balticexchange.com/training April 6-7 New York Advanced Freight Modelling & Trading Spot freight rate dynamics - implied forward rates - technical analysis of FFAs - constructing forward curves - modelling freight rate volatility VaR - pricing freight options - real options www.balticexchange.com/training
April 10-15 Singapore Singapore Maritime Week The leading maritime event in Singapore. Driven by the Singapore MPA, SMW gathers the international maritime community in Singapore for a week of conferences, dialogues, exhibitions and social events in celebration of all things maritime www.smw.sg April 12-14 Singapore Sea Asia Held in conjunction with Singapore Maritime Week 2011, the event will bring together CEOs, presidents, decision-makers and maritime professionals from diverse sectors of the global shipping industry www.sea-asia.com April 12-14 Helsinki Arctic Shipping Summit As activity increases in the Arctic, leading experts in Arctic Shipping from a diverse background assemble to discuss and analyse critical developments and practical challenges www.informaglobalevents.com/event/arcticshipping May 4 Houston Houston Offshore Finance Forum www.marinemoney.com/forums/index.htm May 11 Istanbul Istanbul Ship Finance Forum www.marinemoney.com/forums/index.htm
April 6-7 Copenhagen Scandinavian Shipping and Ship Finance Conference Financing shipping’s future – What are the alternatives? www.informaglobalevents.com/event/scandinavian-ship-finance
May 19-20 Athens Greek Shipping and Ship Finance Conference Greek shipping’s premier shipping and ship finance event brings together leading players from Greece as well as industry specialists from overseas. Includes dry bulk and tanker industry focuses, capital markets focus, trends and pressures in bank ship finance www.informaglobalevents.com/event/greekship-finance-conference
104
theBaltic Spring 2011 www.thebaltic.com
May 24-27 Oslo Norshipping Norshipping speaks for itself. One of the biggest events in shipping’s annual calendar, this is the place to see, be seen, meet, learn and make deals www.messe.no/en/ntf/Projects/Nor-Shipping/ May 26 Oslo Norway Ship & Offshore Finance Forum www.marinemoney.com/forums/index.htm June 7-8 London Dry Bulk Insight Top team of analysts look to the future. www.navigateevents.com June 9 London Baltic Exchange & FFABA Dry Forum Unique occasion for dry bulk FFA market to discuss and network. www.balticexchange.com June 14-15 Singapore Freight Derivatives & Shipping Risk Management Managing freight, bunker, interest and counterparty risk www.balticexchange.com/training June 16-17 London Advanced Freight Modelling & Trading Spot freight rate dynamics - implied forward rates - technical analysis of FFAs - constructing forward curves - modelling freight rate volatility VaR - pricing freight options - real options www.balticexchange.com/training June 21-23 New York Marine Money Week www.marinemoney.com/forums/index.htm June 29-30 Hamburg 4th European Shortsea Congress The only event of its kind where senior representatives from shortsea users, carriers, ports, logistics providers and the whole range of service providers meet to debate the topical issues of the day and also to network and further business opportunities www.navigateevents.com
WHAT’S NEXT?
NEXT? WHAT’S
Nor-ShippiNg 2011 aSkS the queStioNS. how will the iNterNatioNal maritime iNduStry aNSwer? Find out. Visit our exhibition. Attend one of our five conferences. It’s happening here and it’s all about Next Generation Shipping. The conversation has already started at www.nextgenerationshipping.com. Don’t miss the leading maritime event week. Register today at: www.nor-shipping.com Main sponsor:
MANAGING RISK
Leading sponsors:
A BOEING COMPANY
Trade with confidence Optimise efficiencies Clear with LCH.Clearnet, the global leader in OTC clearing, and reduce your counterparty risk to the lowest possible levels, across key OTC markets. Freight – Access the largest pool of liquidity on FFAs and benefit from our unrivalled experience and track record. Containers – Discover exceptional levels of protection against volatile container shipping rates through cleared trading opportunities. Iron Ore – Clear your iron ore derivative trades and access the premier resource for iron ore reference prices through the Steel Index. Steel – Benefit from this ground breaking service for steel swaps; from scrap to hot rolled coil. Coal – Realise the potential in the international coal derivatives market and benefit from margin efficiencies against other contracts. Find out more at www.lchclearnet.com
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