The Baltic - Winter 2010

the Baltic

the China moves in on the ship finance market

WINTER 2010 T h e O f f i c i a l M a g a z ine o f t h e B a l ti c E x c h a n g e

WINTER 2010

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the

BALTIC The Baltic is the official magazine of the Baltic Exchange Tel: +44 (0) 20 7623 5501 E-mail: enquiries@balticexchange.com Website: www.balticexchange.com 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

Lucy Budd Tel: +44 (0) 20 7386 6120 E-mail: lucy.budd@mar-media.com

SALES manager

David Scott E-mail: david.scott@mar-media.com

DESIGNER

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 Winter 2010 www.thebaltic.com

1

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Contents Chairman’s message 7 Mark Jackson

Baltic briefing 7

8 Chinese relations 11 Singapore office 11 Training dates 12 Retired members lunch

8

13 Young Baltic 15 The view from above 17 Contacts

Logbook 14

18 Rig the jumbo

Industry News 20 People, places, plcs

18

Baltic Comment 23 Michael Grey

State of the market 25 Dry bulk 20

29 S&P 30 Tanker 33 Heavy lift 34 Towage & salvage

23

37 Shipmanagement, crewing and employment

theBaltic Winter 2010 www.thebaltic.com

3

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Contents Environment 49 Green shipping

Oxford Analytica 25

61 Oil outlook 2011

FFA 65 News round-up

49

Ship Finance 71 Is finance moving East?

72 Check your terms

Maritime Communication 73 Upping the bandwidth 61

Classification 76 Fuel for thought

Geographical focus 73

78 South America

Insurance 83 ITIC 84 Insurance parlance

76-

Maritime cluster 87 Finland

Legal news 88 Legally speaking 78

100 Events theBaltic Winter 2010 www.thebaltic.com

5

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Chairman’s message Mark Jackson

Chairman’s message I

t may only have been a large group of shipbrokers meeting at the Shanghai Marina Club for a drink, but the launch of the Young Baltic Association in Shanghai this December is

symbolic of how Shanghai has developed as an international shipping hub and the Baltic’s determination to be part of this growth story.

Helping support our members’ business in China; increasing Chinese representation at the Baltic Exchange whilst ensuring that new businesses commit to international business standards is very much a priority for us.

In this issue you will read how the Baltic has

worked with the Shanghai Municipal Transport and Port Authority (SMPTA) this year to help nine shipbroking companies be granted business licences.

The move came in the wake of

discussions between the Baltic Exchange and the Chinese authorities and is the first step in a process to develop and professionalise Tradewinds

mainland China’s shipbroking profession. Until this development, shipbroking was not deemed to be an officially recognised profession by the Chinese authorities.

The shifting of chartering and shipowning

Mark Jackson

activity eastwards over the past decade has international

All members subscribe to the Baltic Code when

these challenges is ensuring that the concept of

shipping markets can only work smoothly when

joining, which stipulates rules in chartering, sale

trust between owners, brokers and charterers

there is trust came early on in the history of the

& purchase and dispute resolution. All members

as enshrined in the Baltic motto “Our word our

Baltic Exchange and continues to be so. When

are required by the rules of the Baltic Exchange

bond” remains a cornerstone of the commercial

working with the Chinese authorities on the

to have a thorough knowledge of and to comply

shipping market. Integrity is the fundamental

implementation of their shipbroker registration

with the provisions of the Code. A breach of

fact for a healthy and sustainable shipbroking

process, we were at pains to ensure that

the Code by a member may be considered to

profession. After all, shipbrokers are expected

the principles enshrined in the Baltic Code

constitute a breach of the Baltic Exchange’s

to connect charterers and owners, buyers and

were understood and incorporated in the

Rules, resulting in suspension or expulsion from

sellers from different parts of the world for

SMPTA’s requirements for minimum professional

the Exchange.

sizable transaction values with highly volatile

standards for certified shipbrokers. We are

prices in a highly fragmented market. Unethical

delighted that this is the case.

thrown up numerous challenges. Not least of

The

recognition

that

the

We are pleased that so many of the new players in the shipping scene agree with us

conduct would cause deep harm to market

The Baltic Exchange itself maintains a

and, together with our members, are making

participants’ business interests and, more

process to ensure that broker members maintain

continuous efforts to maintain high ethical

importantly, confidence in the market itself. It

high ethical standards. We conduct a thorough

standards in business practice. After all, in

is absolutely vital that the new wave of brokers,

qualification review and reference check for

the long term good business demands good

owners and charterers understands this.

membership applicants before taking them in.

relationships.

theBaltic Winter 2010 www.thebaltic.com

7

Baltic briefing

Developing Baltic Exchange and Chinese relations

China is an important focus for the Baltic Exchange

T

he development of the Chinese econ-

He adds: “This type of trial project is a

material on best shipbroking practice, as well

omy, its shipping industry and more

commonly adopted methodology in reforms of

as the role of the Baltic Exchange, its indices,

recently

professional

regulatory and administrative systems in China

freight derivatives and other relevant material in

maritime services has seen the Baltic

and the selected companies in these kinds of

the universities’ curricula and developing new

trials are usually regarded as industry leaders.”

modules. Both universities provide maritime

its

ancillary

Exchange’s links with China increase dramatically in the past couple of years. From Shanghai

With backing from the Baltic Exchange,

business qualifications and are at the forefront of

to Dalian, Qingdao to Tianjin, maritime related

applications from Barry Rogliano Salles, Braemar

educating China’s future generations of maritime

businesses are springing up rapidly across

Seascope, Chinica Shipping, ICAP Shipping

professionals.

China, and the Baltic Exchange is at the forefront

and Seamaster were all successful. Clarksons

At the time of writing, the Baltic was

of developments to engage with these firms and

and SSY had already begun the process

preparing for another China visit, with Shanghai,

open up opportunities for Baltic members.

independently and were also granted licences.

Tianjin, Dalian, Qingdao, Zhoushan and Fuzhou

Up until recently, shipbroking activity had

Currently, a second batch of applications for

all on the itinerary. “This is a two-way process,”

been considered a grey area as far as the Chinese

this recognised status are being considered by

says Baltic Exchange chief executive Jeremy

authorities were concerned, but earlier this year,

the SMPTA.

Penn. “We will not only be making presentations

nine shipbroking companies incorporated in

With ethics and integrity the cornerstone

on the role of the Baltic Exchange and the

mainland China were granted business licences

of the Baltic Exchange and its members, the

benefits of membership, but also listening to the

by the Shanghai Municipal Transport and Port

organisation has always been first and foremost

needs of the Chinese shipping community and

Authority (SMPTA). The move came in the wake

concerned with ensuring that the ethos of “our

understanding how the Baltic Exchange can

of discussions between the Baltic Exchange and

word our bond” continues to be enshrined in

best work in China.”

the Chinese authorities and is the first step in a

modern shipbroking practice around the world,

process to develop and professionalise mainland

including China. The standards required by the

China’s shipbroking profession.

Baltic of its members have been incorporated into

London, Singapore and now Shanghai

Baltic Exchange business development

the SMPTA’s minimum professional standards

manager Sun Wei explains: “Given that there

for certified shipbrokers, together with advice on

Baltic Association has organised numerous

is not officially a profession designated as

the level of professional competence provided

social events for under 35s to network and

‘shipbroking’ in the Chinese company name

by the Institute of Chartered Shipbrokers.

make new contacts early in their careers. A

as

the

registration process, most shipbrokers with

However,

operations in China register themselves overseas

development

notes:

the past two years and this December saw

and maintain a representative office in China

“Standards and best practice need to be

the launch of an inaugural Shanghai event

with the business done under the name of the

learned at the beginning of one’s career.” To

for the Chinese shipbroking community.

overseas entity. Under the SMPTA trial scheme,

this end the Baltic is currently in discussions

Although still in its early days, it is hoped

the firms involved were given the chance to

with two of China’s leading universities, Dalian

that this will be the first of many more Young

transform their representative offices to carry out

Maritime University and Shanghai’s Jiao Tong

Baltic Shanghai events.

onshore shipbroking activities.”

University, about incorporating up to date

8

theBaltic Winter 2010 www.thebaltic.com

manager

Baltic’s Sun

business

Since its founding in the mid-90s, the Young

Wei

Singapore chapter has held several events in

Baltic briefing

This year’s Baltic Exchange & FFABA Freight Derivatives Forum took place in Shanghai

Transfer of industry experience is crucial if China is to grow its maritime expertise

September’s Freight Derivatives Forum was attended by over 200 people

theBaltic Winter 2010 www.thebaltic.com

9

Baltic briefing

Baltic Chairman’s Cocktail party

Christmas at the Baltic C

elebrate Christmas with the Baltic Exchange this December by attending the annual

Christmas Carol Service at St Katharine’s Cree,

T

he 2011 Baltic Chairman’s Cocktail party will once again take place at London’s Christ Church Spitalfields on 18 May. Further details regarding tickets will be released in the New Year.

Leadenhall Street. The service takes place at 12:00 on 13 December, followed by mince pies at the Baltic.

For those members working in London on Christmas Eve, why not come to the Baltic for a champagne breakfast? Please email events@ balticexchange.com to book your table.

Baltic index publication over Christmas and New Year T

The Chairman’s Cocktail Party is always a big draw for Baltic members

he last publishing day for all Baltic Exchange indices for 2010 will be Friday 24 December

2010 with the settlement data also generated on that day. Reporting and publishing of all the route assessments will recommence as normal for the New Year on Tuesday 4 January 2011.

Baltic Forward Assessments (BFAs) and Baltic Option Assessments (BOAs) will continue to be collected and published between Christmas and New Year on 29, 30 and 31 December (27 and 28 are Bank Holidays in the UK).

Dry FFA trades concluded between 20 December 2010 and 3 January 2011 will be added together to the Dry FFA Volume Estimates published together with the Tanker FFA monthly volumes on 4 January 2011.

10

theBaltic Winter 2010 www.thebaltic.com

Baltic briefing

New Baltic Exchange tenants T

he Baltic is delighted to announce that the

Training course dates 2011 T

he Baltic Exchange will be holding its popular Freight Derivatives & Shipping Risk Management and Advanced Freight Modelling & Trading courses in London, Singapore and New York during

2011. Run since 2005, the courses are led by Professor Nikos Nomikos and Dr Amir Alizadeh of Cass Business School. The courses are designed to give both a basic and more advanced overview of FFA trading techniques as well as the use of derivatives in other commercial areas of shipping. For full details see www.balticexchange.com/training

London Maritime Arbitrators Association’s

office has moved to the Baltic Exchange. The Baltic Exchange is home to a range of shipping related businesses and organisations,

Freight Derivatives & Shipping Risk Management

including the Greek Shipping Co-operation

Advanced Freight Modelling & Trading Spot freight rate dynamics - implied forward

Committee, Bibby Line, Bray Shipping, OP

Freight risk management - freight rate options -

rates - technical analysis of FFAs - constructing

Secretan, International Maritime Industries

bunker risk management - case studies - credit

forward curves - modelling freight rate volatility -

Forum, International Ship Suppliers Association,

risk - ship price risk management

VaR - pricing freight options - real options

London: 8-9 February

London: 10-11 February

Singapore: 17-18 January & 27-28 June

Singapore: 19-20 January & 29-30 June

New York: 4-5 April

New York: 6-7 April

Sanderson Maritime, Navigate PR, Triganol and the Fairdeal Group.

Space is currently available in the building for companies looking for a prestigious City of London base. For further details please contact: Duncan Bain Tel: +44 (0)20 7369 1627 Email: dbain@balticexchange.com

FFA open interest data available S

ubscribers to www.balticexchange.com can now view the levels of open interest for

dry FFAs. The information is published every Monday and is based on data supplied by the clearing houses LCH Clearnet, NOS, SGX and CME.

Baltic strengthens Singapore office T

he Baltic has appointed a new freight market reporter in its Singapore office. Marcus Lee, 25, joined the office in September and is involved with the reporting of route rates during the Asian

working day. The Baltic Exchange reports and publishes a selection of dry supramax routes known as Baltic Exchange Supramax - Asia (BESA) at 15:00, Singapore. These routes do not form part of the Baltic Exchange Supramax Index, which continues to be published at 13:00, London.

Marcus Lee

theBaltic Winter 2010 www.thebaltic.com

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Baltic briefing

Retired members lunch R

etired Baltic Exchange members enjoyed a fine lunch at Merchant Taylors Hall this

October. This special gathering takes place each year in London and helps renew old Baltic friendships.

12

theBaltic Winter 2010 www.thebaltic.com

Baltic briefing

Young Baltic Night Craig Pancoust & Nick O’Sullivan of GFI

Pooja Kumar

Alex Oikonomaki and Sarah Anthony

Knut Lyngaas of Gearbulk, James Cox of

Carolina Hassan, Eugenio Marsano, Lauren

Kenji Miyatake Ondozabal, Takasumi Teraki,

Clarksons, Michael Po

Moore and Sarah Lov

Mark El-Agraa

Party organisers Jo, Crispin & Sarah

Clarksons

Over 200 attended the YBA London Event

Crispin Eccleston, Alexios Scopelitis of

Mario Pavic of Alan Shipping and Gianni

Mike Potter, Jo Simmonds, Sarah Anthony

Southern Shipping Federation and friends

Saccomanic of EA Gibson

of Clarksons, Crispin Eccleston

theBaltic Winter 2010 www.thebaltic.com

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Baltic briefing

Lord Mayor supports

New anthem for seafarers

UK maritime services

Meeting Baltic Exchange members in London

N

ewly elected Lord Mayor of the City of London, Alderman Michael Bear, underlined the UK’s importance in the provision of international

maritime services at a lunch hosted by the Baltic Exchange. He said that as Lord Mayor he would be supporting the UK maritime services sector and that his theme for the year would be: “City of London: City of Choice.”

Michael Drayton and Malcolm Archer

T

he Baltic Exchange has commissioned a new “Anthem for Seafarers”, based on the hymn “Eternal Father, strong to save” as part of the

International Maritime Organization’s Year of the Seafarer. The piece was

Former trading floor bell

returned to Royal Navy

premiered at Vancouver’s Christ Church Cathedral on 17 November.

Former Baltic Exchange chairman Michael Drayton has been heavily involved in the project.

A

Royal Navy ship’s bell which was housed for many years on the former Baltic Exchange trading floor will return to active duty on the UK’s new-

“The combination of my regard for seafarers and my love of music

est aircraft carrier currently being built at Rosyth. The bell from the original

formed the basis for this project,” said Michael Drayton. “Malcolm Archer

Dreadnought battleship, HMS Queen Elizabeth was presented to the Royal

has taken this great seafaring hymn, its wording such a powerful reminder

Navy at a ceremony in November.

of the perils at sea, and given us an anthem that moves from the sombre

The bell was housed on the Baltic trading floor until its closure before

reflection of its opening key to a glorious centre section. Here we will all

being passed to the Chatham Dockyard Historical Society for safe keeping

recognise the famous hymn and its plea for the security and protection of

in 2002. The bell will be housed in the officers’ mess of the new HMS

our mariners. Malcolm is to be commended for this masterful work, which

Queen Elizabeth once completed.

I hope will be adopted throughout the seafaring world.”

Composer Malcolm Archer commented: “For many years I had wanted to compose an anthem version of the text “Eternal Father, strong to save”

The first warship to bear the name HMS Queen Elizabeth was launched in 1913, the lead ship of an important and innovative class of battleships which were powered entirely by oil.

when Michael Drayton, the chairman of the Baltic Exchange, approached

HMS Queen Elizabeth served with distinction in both World Wars,

me with just such a commission for dedication to the Exchange and to

receiving battle honours at Dardanelles in 1915, Crete in 1941, Burma in

mark his retirement as chairman. It also seemed appropriate that I should

1944-5, and Sabang and East Indies in 1945.

set these words to music since the author of them, William Whiting (1825-

Seriously damaged by an Italian underwater attack in 1941, her repairs

1878), was Master of the Quiristers at Winchester College, a position which

in the USA were funded by a donation by the Baltic Exchange, which was

I now hold as their Choirmaster. With that strong link, the anthem is assured

presented with the ship’s bell on her de-commissioning in 1948.

of performances within the College and it is my sincere hope that it will not

At 65,000 tons, the new HMS Queen Elizabeth will be the most

only be performed regularly for the Baltic Exchange, but become a popular

powerful surface warship ever constructed in the UK with an expected

choice amongst the many seafaring communities around the world.”

service life of up to 50 years.

14

theBaltic Winter 2010 www.thebaltic.com

Baltic briefing

The view from above Baltic Air Charter Association chairman Dick Gilbert looks at new aircraft programmes from Boeing and Airbus

D

espite the air of gloom, aircraft man-

to be avoided) there is also a freighter version

coming to a reasonably happy end, with the first

ufacturers continue to pursue new

which could theoretically carry 134 tons, and

flight finally occurring in December 2009. This

aircraft programmes. Boeing current-

which has actually generated more orders than

multinational European project was born nearly

ly has two main projects, the most

the passenger model.

20 years ago, and has come near to cancellation

charismatic being their 200-300 seater 787

Here in Europe, Airbus is flush with the

on several occasions. It finally appeared at the

Dreamliner. Choosing to forsake both speed and

success of its mighty Airbus A380 double-

Farnborough Air Show this year, although when

size in favour of economy – probably a canny

decker widebody liner. As the largest passenger

it will enter service with European air forces

decision – the aircraft is expected to consume

aircraft in the world, this astounding aircraft

remains uncertain.

20% less fuel than the comparably-sized (but

could be arranged into an all-economy layout

An intriguing development in the USA has

1980s technology) Boeing 767. It is also expect-

seating over 850 people, although it’s hard to

been recent discussions by the United States Air

ed to be 20% ‘greener’ than similar aircraft.

believe that any airline would actually choose

Force and manufacturer Lockheed Martin with

to do so.

various cargo airlines, concerning the possible

Although the Dreamliner was rolled out in

civilian use of some Lockheed C-5 Galaxy

2007 and flown in 2009, the first delivery has

With the first example entering service in

yet to take place. Blaming Alenia (who make the

2007, the aircraft has currently sold over 230

tail) and Rolls Royce (who make the engines),

(with about 40 already delivered) and Airbus

Although well-used, these military cargo

Boeing now suggest that it may enter service

hopes for a total in the region of 600. There

lifters have been the USAF’s equivalent of

in Japan early in 2011, three years later than

is evidence that this success has adversely

Russia’s massive Antonov freighters for over

originally planned. Nonetheless, well over 800

affected Boeing’s efforts to market the 747.

30 years, and may appeal to some specialised

have been ordered, which makes it the fastest-

The freighter version of the Airbus A380 has

operators if the price is right, and the conversion

selling widebody airliner in history.

been less attractive to the market, but on

from military to civilian operation is not too

reflection there cannot be many customers with

overwhelming.

Also heading for a 2011 delivery (after multiple delays) is the second major Boeing

a requirement for such a large transport.

project, the 747-8. As though the original 1960s

Airbus too has a second active programme,

Boeing 747 ‘Jumbo Jet’ wasn’t large enough, it

in the form of their A350 twin-engined 270-350

has been stretched and expanded several times,

seater. This will be the first Airbus machine

and this is the latest incarnation.

made largely out of composite materials (like

freighters about to be retired.

2011 should be an interesting year for several of these new projects, and we shall see if the customers have the money to pay for them.

new

the Dreamliner). Scheduled to fly in 2011 and

BACA represents

technologies and components is probably

enter service in 2013, the A350 will be available

the

partly responsible for the greater delays in the

in three versions, with the mid-range A350-900

of

aircraft’s development than would have been

being launched first.

aviation compa-

The

incorporation

of

a

raft

of

interests commercial

the case with a conventional airframe ‘stretch’.

Sales of the A350 have been buoyant, with

nies particularly

There are also suggestions that downsizing and

over 570 orders placed as of October 2010,

in the aircharter

redundancies at Boeing over the last decade

but so far this doesn’t match the success of the

have led to a loss of project management

Boeing Dreamliner.

expertise and an engineering talent shortage.

But the result should be improved efficiency and range, as well as capacity. While it is

industries

and

markets. Membership is around 135 com-

In the world of the purpose-built freighter (as

panies ,including airbrokers, charter airlines,

opposed to an adapted passenger aircraft) two

airports, business aircraft operators, freight

developments are currently in the spotlight.

forwarders, consultants and others.

capable of seating up to 580 passengers in a

The tortured history of the Airbus A400M

one-class configuration (surely an experience

military 37-ton cargo aircraft seems to be

theBaltic Winter 2010 www.thebaltic.com

See www.baca.org.uk for further details.

15

Baltic briefing

Sadly departed

New members

T

Edward Sydenham

he Baltic is delighted to welcome the following new companies into membership:

Mr Sydenham was first elected to the Baltic in 1964 representing P Wigham Richardson. He then

Argus Media

went on to represent Abetone Chartering between 1987-1999.

www.argusmedia.com

Bidsted & Co A/S Robin Angus Graham

www.bidsted.dk

Mr Graham was first elected to the Baltic in 1965 for Tatham Bromage & Co Ltd. Between 1972-1979

Charles Baker (sole trader)

he represented Sir William Reardon Smith & Sons Ltd and then in 1979 founded Angus Graham & Partners. Mr Graham was a Retired Member from 1998 to 2003.

Peter Champion Mr Champion was first elected to the Baltic in 1956 for A G Pappadakis & Co Ltd. Between 1958 and 1979 he represented Harry Hadjipateras Bros Ltd., N J Pateras & Sons Ltd, Bray Shipping Co Ltd, Colocotronis and Peregrine Shipping. He served as a floor director from 1974 to 1977. From 1979 he represented Champion and Durell (Shipbrokers) Ltd.

China Shipowners’ Association www.csoa.cn

Eagle Shipping International (USA) www.eagleships.com

Island View Shipping International Pte www.grindrod.co.za

Jangsoo Shipping Co Ltd

Reginald Murray Simon Mr Simon was born in 1920 and passed away aged 90. He became a member of the Exchange in

S Everton (sole trader)

1948 and worked for E Gray and Co (Overseas) Ltd from 1967 until 1990.

Saipem SPA www.saipem.it

Nigel Taylor

TGM Shipping

Mr Taylor was first elected to the Baltic in 1972. During his membership he represented Nielsen

www.tgm-shipping.de

Shipping, Davies & Newman, BMM & London Shipbrokers and Anderson Hughes.

True North Chartering www.truenorthchartering.com

Richard Geoffrey Pendered

X Jiang (social member)

Mr Pendered was first elected to the Baltic in 1953 and worked for Bunge & Co Ltd until his membership ceased in 1989. Mr Pendered was a retired member from 1991 until 1996.

Zhejiang Shipping Exchange Co Ltd

Join the Baltic Exchange and access: • Freight market information • Disputes resolution service • Shipping market contacts • London business venue & club Contact Robin King for further details.

Email: rking@balticexchange.com www.balticexchange.com

16

theBaltic Winter 2010 www.thebaltic.com

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 Winter 2010 www.thebaltic.com

17

Logbook

‘Rig the jumbo’ A selection of photographs from the collection of Ambrose Greenway look at some of the more unusual deck cargoes of old

I

Draco

n today’s shipping world we have got used to seeing sights that would have astonished seafarers of yesteryear, none more so than modern heavy lift ships with their cargoes of drilling

rigs, oil platform modules and gantry container cranes. Before their advent, outsize and unusual cargoes had to be carried on the decks of ordinary freighters.

Timber was a traditional deck cargo, both hardwoods such as teak and mahogany, which were shipped in log form, and softwoods, which were generally sawn before shipment. The latter tended to come from Scandinavia and Wilson Line’s Draco (1882), which later became the first ship in the Wallem fleet, is seen arriving in Hull with large pit props from Norway.

Smith

Deck cargo on tankers was unusual

pioneered the concept of the specialist heavy-

but during WW2 three Dale-class tankers,

lift vessel, initially to carry rolling stock from the

Derwentdale, Dewdale and Ennerdale, ordered

UK to Belgium. His first newbuilding Beldis,

by MOWT to a Shell design, were completed

completed on the Tyne in 1924, was followed

as Landing Ships Gantry for the Royal Fleet

by the improved and slightly larger (4,280 dwt)

Auxiliary. With a complement of 15 LCMs and

sisters Belnor and Belray in 1926. The latter is

around 215 troops, they took part in amphibious

depicted hoisting the second of two light floats

landings in the Mediterranean, Malaya and the

aboard in Liverpool using its 120-ton derrick.

Far East before reverting to tankers after the war.

Norwegian

naval

officer

Christen

Tanker with landing craft

Belnor

18

theBaltic WInter 2010 www.thebaltic.com

Logbook

Jalamayur

Two Liberty ships with differing deck cargoes: Scindia

Line’s

Jalamayur

passes

Kabrit

southbound in the Suez Canal carrying six steam engines for Indian railways on her foredeck and their tenders aft. Further to the East, the Greek Korais resembles a floating traffic jam as she fuels at Aden with part of a consignment of old London double-decker buses bound for Ceylon (Sri Lanka).

Korais

Both domestic and wild animals (for zoos) were often carried as deck cargo. Here a camel undergoes the indignity of being slung aboard to the seeming unconcern of those on deck.

Forcados

Elder Dempster’s Forcados (1963) pauses at Teneriffe en route for West Africa with a floating office building on her foredeck. Note the temporary bridge structure to allow extra visibility forward.

When NYK built the Wakagiku Maru in 1978, traditional heavy lift vessels had all but been eclipsed by new types of specialist ships, often semi-submersible and able to carry much larger loads such as oil rigs and container gantry cranes. She was fitted with a 500-ton Stülcken derrick and was designed to carry modular industrial plant.

Wakagiku Maru

theBaltic Winter 2010 www.thebaltic.com

19

People, places, plcs

Industry news members to participate actively in the struggle against piracy, particularly in the Gulf of Aden.

Swift commented later: “It is a great honour to receive this award after nearly 50 years in the shipping business, almost entirely built around oil, chemical and gas tankers. It is also pleasing to note that the tanker industry over the last decade has been able to restore its credibility and reputation that were seriously dented following the high profile Erika and Prestige incidents, and that this sector routinely champions best practice and respect for our seafarers.”

Joe Angelo, who takes over from Swift, has worked for Intertanko for six years, first as director of regulatory affairs and the Americas. Prior to joining Intertanko he held various senior roles in the United States Coast Guard, lastly as director of standards for marine safety, security and environmental protection, where he led US delegations at the International Maritime Organization. As the existing

Intertanko’s Peter Swift receives a lifetime award from Efthimios Mitropoulos

deputy MD, he ensures continuity

Intertanko

been a committed and passionate spokesman

and stability to Intertanko’s membership upon

Peter Swift is to retire as managing director

and a driving force for better standards in the

Peter’s departure.

of Intertanko at the end of this year. Deputy

tanker industry for many years. His energy and

“Joe is a well respected figure, not only

managing director Joe Angelo will take over as

inspiration will be sorely missed. Intertanko’s

within Intertanko but also in the corridors of the

managing director with effect from 1 January

membership is indebted to him.”

IMO and the international shipping community.

In November this year, Swift was presented

Having initially not been available for selection,

Appointed in February 2001, Swift has

with a Tanker Shipping & Trade Lifetime

we are delighted this subsequently changed

spent the last 10 years representing the

Achievement Award by the Secretary General

and are pleased that he agreed to take up the

interests of more than 250 oil/chemical tanker

of the IMO, Efthimios Mitropoulos. Mitropoulos

challenge,” says Westgarth.

owners with over 260 million dwt of tonnage

spoke of “the tremendous contribution

Kathi Stanzel has been appointed deputy

and a further 320 associate members from the

made to shipping by Peter throughout an

managing director. She joins Intertanko from

broader shipping industry.

2011

illustrious career in the service of shipping.”

the International Oil Pollution Compensation

“Peter is a hard act to follow,” said Graham

Mitropoulos particularly emphasised Peter’s

Funds (IOPC).

Westgarth, Intertanko’s chairman. “He has

role in encouraging Intertanko staff and

20

theBaltic WInter 2010 www.thebaltic.com

People, places, plcs Braemar

challenges of the next 10 years”.

Parry commented on the irony that it sometimes

Braemar Seascope is expanding its chartering

A statement says that a key feature of the

activities in Singapore by moving into the deep-

review has been the simplification of the work

sea clean and dirty products tanker trades. It

of the Chamber to focus on lobbying and other

The company says that since mid-August

also plans to establish a sale and purchase desk

supporting activities in five key areas: taxation

2009 it has seen demand in the shipping

in Singapore in due course.

and economics; safety and the environment;

recruitment market return to pre-crash levels.

employment; defence and security; and legal,

Turnover is back up to 2008 highs with a smaller

insurance and documentary.

headcount and lower costs.

Denis Petropoulos, joint managing director of Braemar Seascope, who is moving to

takes tough times “to remind us of some of the fundamental principles of business”.

Singapore to head up the office, said: “We

The Chamber highlights its involvement in:

have already invested heavily in the region by

Maritime UK – the coalition and single voice

acquiring maritime businesses which have each

for shipping, ports and maritime business;

“We really do have an excellent group of

proved successful. The intention is to grow a

Merchant Navy Training Board – the central

people right now who stuck out the downturn

shipbroking team that can service the chartering

body for promoting and developing seafarer

and whose knowledge and experience in

demands in the deep-sea products trades, both

education, training and skills; and Sea Vision –

shipping has helped them achieve record

clean and dirty, as well as short-haul crude within

the national campaign to raise awareness and

personal earnings this year.”

the region. In addition we will be creating a sale

increase understanding of the sea and the value

and purchase section to enhance our efforts

of the wider maritime sector.

“The impact on the bottom line has been entirely positive therefore.” said Parry.

Dubai, Singapore

in the region in collaboration with our existing

The Chamber’s committee structure will be

London and Chinese sale and purchase desks.”

based around the five key lobbying areas,

Dubai

Chris Morrin, a director of Braemar’s tanker

with sector panels for passenger shipping,

Maritime and Ports Authority (the MPA) have

department who has previously worked in

offshore support and harbour towage to provide

signed an MoU to advance maritime relations.

Singapore, will be moving back to start up the

specific input from both a policy and a technical

Under the MoU, both MPA and the Dubai

deep-sea tanker chartering business which will

perspective.

Maritime Authority will explore opportunities for collaboration in the planning and regulation of marinas and waterways. Other possible areas

based shipbrokers in all disciplines as well as

committee structures. With the retirements of

of co-operation include promoting maritime

operations and support staff.

Edmund Brookes (deputy director-general) in

environment protection as well as conducting

December 2009 and David Asprey (director

maritime training, research, and events such as

Policy) in October 2010, the Chamber has seen

the maritime week.

Maersk

has

Singapore

reorganised to reflect the changes in the

London.

secretariat

and

Efforts are already underway to recruit locally-

VLCC chartering and broking will stay in

Chamber

Authority

been

become fully operational from January 2011.

The

Maritime

a small reduction in its senior secretariat team

The MPA said in a statement that Singapore

to meet the needs of the new focus in work

is keen to strengthen its ties with the Middle

streams.

East, a strategic region for Singapore.

Henrik Lund has joined the A.P. Moller – Maersk

Alongside the structural changes, the

Group as head of investor relations. Lund joins

restructuring of the Chamber has returned it to

from Carnegie Bank, where he has been head of

financial stability. The Chamber says that this

research since 2007. From 1999 to 2007 he was

has been achieved by a range of measures,

senior equity analyst at Danske Bank. According

including changes to the management of the

to Maersk, Lund covered A.P. Moller – Maersk

Chamber’s building and its conference services,

in both positions and has extensive knowledge

cost savings aligned to the tighter focus on

of the group.

core activities, and headcount reductions in the administration team.

McQuilling Carol Ann Malinowski has joined the McQuilling

Holman Fenwick Willan

Services ship finance advisory team. She has over

Holman Fenwick Willan has opened a Geneva

25 years of experience in financial management,

office, marking a significant extension of its

international business, and operations, and has

worldwide commodity practice, which has

been an investment manager with NFC Shipping

hitherto been based primarily in London, Paris,

Funds and vice president of finance for Northern

Singapore and Melbourne.

Navigation International Ltd.

The office will serve commodity, banking, shipping and insurance clients. Oil and gas will be a particular focus as will all soft commodities.

UK Chamber of Shipping The UK Chamber of Shipping has announced a range of structural and financial changes aimed

Spinnaker

to improve the effectiveness and efficiency of

Maritime

its work on behalf of its members. Led by chief

Consulting has posted the strongest set of

executive Angus Frew, the changes are aimed

results in the company’s 13 year history.

recruitment

specialist

Spinnaker

to equip the Chamber to “continue to deliver

Crediting the recession for having produced

valued services to its members and meet the

a leaner cost base, Spinnaker’s chairman Phil

theBaltic Winter 2010 www.thebaltic.com

21

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Comment – Michael Grey

A barrage of criticism L

et us, for the sake of argument, ask why

hardened turbine impeller. And let us not even

aren’t people nastier to civil engineers?

bother with the cost, which would equate to

The thought occurred to me as I listened

that of about three nuclear power stations. So

to the announcement on the radio which

there should be no regrets at the demise of this vast folly.

told me that the great barrage across the Bristol Channel would not now be constructed. The

Why is it that when more than about two civil

economic straitjacket being tightened on gov-

engineers are gathered together, they invariably

ernment spending was, apparently, the excuse

come up with schemes that will almost certainly

for this apparent surrender to the forces of

do serious damage to marine interests? Did

reason, and the shelving of a project that “could

they have nasty experiences on sea voyages

have supplied electricity for every house in

when they were young? But just consider all

Wales”. What about the houses in England,

the excellent ferry routes effectively scuppered

I thought – didn’t they deserve the odd tide-

by great bridges and tunnels, thrown over or

generated volt?

under straits all over the world at eye-watering expense, and chiefly for the benefit of their

But there would have been rejoicing, if they

constructors.

had only been listening to the broadcast, among the several million migrating wetland birds as

I once worked out the number of ferries that

they headed down from the steppes of Russia

could have been built for the cost of the Channel

and the Arctic tundra to pause awhile and

Tunnel, and it came to several hundred fine,

refresh themselves on the brown Severn silt. And

Michael Grey

flexible ships. And they are still at it, working on the final drawings of a gigantic structure

one would put money on the odd glass being raised in the Port of Bristol, which would have

completed, they would have been dependent on

to connect Denmark to Germany, not content

effectively been cut off from its sea access by

locks. And what if the locks, for some reason,

with the vast bridges they have built between

this huge erection between Portishead and the

were not part of the plan, and chopped off by

Sweden and Jutland. With the regularity of a

Welsh coast, if the civil engineers had their way.

some scheming accountant at the last minute?

summer story about why the Titanic sank, we

It was, of course, one of the barmiest

Why then, the Port of Bristol would be stuffed,

are treated to a seasonal artist’s impression

plans, that were it not for all the panic and

and as relevant to the economy of this kingdom

of a vast edifice that will span the Straits of

pandemonium about ‘climate change’, would

as the port of Sandwich, which silted up a

Gibraltar, or link Sicily to the toe of Italy. Given

never have made it out the ‘lunatic’s file’, where

thousand years ago.

half a chance they would join Sri Lanka to the

it has doubtless reposed for many years, along

And talking about silt, Bristol, which knows a

tip of India and neatly sever the Kra Peninsula,

with crazed proposals for tunnels under the Irish

thing or two about the hydrology of the estuary

causing consternation to people who work in

Sea and schemes for filling in the Wash. But like

outside its entrance, pointed out that to bung up

busy shipping offices between Mumbai and

all these grand constructional schemes, it would

the Bristol Channel with a barrage was to risk

Singapore.

have chiefly benefited civil engineers, who could

goodness knows what with the environment.

Cannot civil engineers just leave well alone,

have used all their stocks of cement and steel

The interplay of tides and currents, sands and

as they try and pretend there is an environmental

reinforcing bars while employing vast numbers

silt is a delicate one and there is really no

reason for their enormous projects? I have

of labourers.

knowing what would have happened. Upstream

before me a picture of a tidal turbine on test

Bristol is a large and successful port, which

of the barrage, the vast tonnage of silt which like

in the Humber, which sits politely on a steel

has already moved once in its life down to the

the Severn itself, looks like brown Windsor soup

catamaran, quietly generating electricity without

mouth of the Avon, but were this barrage to be

(with much the same consistency) would have

blocking up shipping channels or threatening

built, it would have become far less attractive

been denied its access to the sea, necessitating

the existence of the several ports which use this

to shipping. Sure, they might have benefited

the employment of fleets of dredgers, if the

vast waterway. It could, of course, be that this

from a reasonable tonnage of cement coming

estuary was not to dry up. And this is no ordinary

is designed by naval architects, rather than civil

over their quays for the revetments of this

silt, but is of remarkably abrasive quality, more

engineers.

mighty structure, but the instant the barrage was

than capable of wearing away even the most

theBaltic Winter 2010 www.thebaltic.com

23

Dry bulk

Dry market takes another dive?

Rates soften across the market

Demand for coal is up, but rates remain soft

W

hile the dry market has not suf-

Softer rates ahead

Coal demand on the rise

fered a downturn of anything like

Despite this fall in rates, the expected surge of

Other indications of demand growth come from

the dramatic proportions of this

deliveries does not yet seem to be having the

a report from M&C Energy Group, published at

time two years ago, the graphs

dramatic effect on the market that had been

the end of August, which predicted that coal

from the last couple of months make depress-

predicted. Has the increase in demand simply

demand – already at a record high – will continue

ing viewing. At the time of writing, the BDI just

absorbed the increase in tonnage? According

to rise in China and India for the foreseeable

started to turn up after falling for more than a

to figures from Platou, the dry bulk fleet has

future. Speaking at a results conference in mid-

fortnight, with panamaxes in particular suffering

increased by 15.4% over the first 10 months

November, Seaenergy’s ceo Dale Ploughman

from low rates. However, although the index has

of 2010, while tonnage demand increased by

was moderately optimistic about the prospects

suffered a 20% loss in value over the last three

16% over the same period, suggesting that

for the dry markets, saying that: “We believe

months, pessimism appears to be related to

the market has in fact absorbed all of the new

that dry bulk fundamentals remain stable as we

individual market sectors, rather than to the dry

deliveries. However, they suggest that the same

expect demand for core commodities, namely

market as a whole, with the capesize market

pattern is unlikely to be repeated next year,

iron ore and coal, to remain strong from China

displaying considerably more volatility.

leading to some softening of the market.

and India.

theBaltic Winter 2010 www.thebaltic.com

25

Dry bulk

Index summary BDI, BCI & BPI

10% of world GDP, and are growing fast. Then there are a whole range of other countries in the Middle East, Africa, Central Asia, Central America etc, which account for 11% of world

5,000

GDP.” However, in order to absorb all the new tonnage coming online, world seaborne trade

4,000

would have to grow at 7% per year until 2013, he said in a presentation at SMM. Even with

3,000

the prospect of these developing markets, that seems unlikely.

2,000

According to Alan Marsh at Braemar, while demand remains good, the prospect of excess

0 1/ 20 1 /1 01

0

0

0/ 20 1 /1 08

18

/0

20 18

/0

8/

7/ /0

9/ 20 1

10

10 20

10 26

/0

7/

20

10 02

20 6/ /0 09

18

/0

5/

20

10

tonnage continues to be a worry. “All the growth

After a summer recovery, dry markets have been steadily declining

demand projections for cargo are positive, but we are concerned about the amount of newbuildings coming out of China,” he said. “We have delivered a lot of our Korean ships now, but the Chinese ships are still to come.” China

“Industry sources project that over the next

carried by Chinese-built and operated ships

aims to have 50% of internal goods delivered in

10 years, China’s gross domestic product will

mean that this is unlikely to be a long-term

Chinese-built ships, which will mean a continued

continue growing at 7% per year on average,

solution for international owners looking for new

high delivery rate for several years. However,

while over the next two years India’s GDP is

markets for their tonnage.

while the dry market is likely to remain difficult

expected to grow at an annual rate of 9%,” he

for owners, there will be plenty of business for

said.

brokers, even if it is perhaps at lower rates than

Platou also highlighted the increasing

Looking beyond China

they would like, he said.

development of the Chinese coastal market,

Clarkson’s Martin Stopford reminds owners that

The industry consensus seems to be that the

which has risen by more than 20% so far this

China is not the only growth engine in the world.

dry bulk market has had a relatively easy time

year. However, the Chinese government’s policy

“The future is not just about Asia. The Baltic

of it in 2010. The real challenge is yet to come.

of ensuring that up to 50% of coastal trade is

States and South America together produce

26

theBaltic WInter 2010 www.thebaltic.com

Corporate viewpoint Canfornav

Canfornav F

lexibility is an important word for Montreal

American car industry, would probably continue

that there are still opportunities for handysize

based dry bulk shipowner Canfornav.

to decline and that the future of the company

operators and are currently looking at all sorts

The company has been in business for

lay in further developing its Atlantic trade. The

of opportunities. Whilst we don’t anticipate an

over 30 years and prides itself on its

company recently took delivery of 13 30Kdwt

increased volume in the Atlantic or Great Lake

open book policy and offering its chartering

China built handysize vessels. A further six 33k

trades in the near future, we believe that the

partners real flexibility. “We’re accessible and

dwt and two 57k dwt are on order with delivery

quality of our operation makes us an attractive

always know what’s going on,” says chartering

expected in Q3 2011.

choice for charterers.”

director Knud Jensen. “We keep in close touch

“These vessels were not ordered at the

Canfornav believes that the size of its

with our business partners and try to co-operate

peak of the market and we are here for the

operation is a key advantage. Some of its

with them as much as possible.”

long term,” says Canfornav chartering director

competitors are very large companies with big

Formed in 1976, Canfornav has built a

Knud Jensen. “Canfornav trades its vessels to

fleets and satellite offices dotted around the

solid, professional reputation in the international

make money and is not concerned with short

globe. As Knud Jensen notes, it can be difficult

shipping industry. A privately held company

term sale and purchase strategies. We are a

for the charterer to know who to speak to and

with 30 staff, Canfornav runs a fleet of about 35

conservative company which performed well

crucially to understand who has the authority

handysize vessels, 30 of which it owns, ranging

during the strong freight markets and set aside

to enter into charterparty agreements. “We

in size between 15 -40,0000 dwt moving around

profits for a rainy day.”

take good care of our charterers, are always accessible and always know what is going on.”

6 million tonnes of trade a year. The fleet is

The company believes in sticking with what

young, with an average age of 4-5 years. The

it knows best, which in Canfornav’s case is the

Canfornav

company has a strong Great Lakes focus, but

handysize market. As well as its own fleet, the

800 René-Lévesque Blvd. West, Suite 2300

is active in a variety of markets including South

company also owns a 12% stake in Pacific

Montreal, Québec

American mining sector. Around 20% of its trade

Basin, the Hong Kong based handysize owner.

H3B 1X9

is Great Lake trade related with the rest Atlantic

“We think the handysize sector is a good

Canada

place to be given that around half of the global

Tel: +1 514 284 9193

However, the company long ago recognised

fleet will be over 25 years old within the next

Fax: +1 514 499 1030

that the Lakes trade, so dependent on the

three years,” says Knud Jensen. “We think

www.canfornav.com

focused.

Saint Lawrence River, Montreal

theBaltic Winter 2010 www.thebaltic.com

27

S&P

Waiting for the

price to be right The market still has some way to go before buyers get interested

could be the start of a more substantial fall.

Ordering, too, has slowed down since its peak in June this year. With the total orderbook for the first 10 months of the year standing at 68.1 million dwt in the dry bulk sector and 32.3 million dwt in the tanker sector, however, it seems that the prospect of overcapacity is not as daunting a prospect as it was last year.

S&P demand slows On the S&P side, Marsh believes there is less optimism than there was six months ago. “There are very few real buyers out there, although the Chinese are buying. If people really want to sell their vessels, the price must adjust downwards.”

In the tanker market, VLCCs in particular have suffered, with prices for newbuilt 310,000 dwt vessels falling from $113 million in September to $109 million in October, according to Platou. The estimated value of a five-year-old 160,000 dwt tanker fell from $62 million to $58 million in the

Buyers are holding back on purchases

same period. Platou attributes the sharp fall in

W

value to the declining tanker markets, and says ith considerable uncertainty over

But we suspect over reporting – what were

that “Most buyers are now taking a wait and

the direction in which the mar-

reported as firm orders were not always orders.

see approach, awaiting the developments in the

ket is heading, and the amount

As far as Braemar is concerned, anything that

chartering markets”.

of newbuild tonnage coming

was reported as ‘cancelled’ is likely to have

The dry markets have, so far, fared better,

onstream, it is hardly surprising that orders have

been restructured,” he said. “Unless you have a

with values holding firm through September

slowed, and prices have been cooling for both

proper dialogue with the yard, your initial figures

and October. However, if market predictions of

second-hand and new vessels.

may be as much as 20 or 30% out, and will get

softening rates and increasing capacity in the

gradually readjusted to reflect reality.”

new year are correct, both demand and prices

On an ominous note for those looking to sell

look set to weaken.

Newbuild prices falter

vessels, he says that “Korean yards who know

Scrapping prices have held firm in the Far

For many potential buyers, the first question must

the direction of the market are pushing to sign

East, and there has been a considerable amount

be to look at the projected growth of tonnage in

up tonnage now”. Figures from Platou show that

of tonnage removed from both the tanker and

the next few years. However, Braemar’s Alan

after a sharp rise in the price of newbuild tankers

the dry markets over the course of the year to

Marsh warns that, for all the figures proposed

and a more gradual rise in prices for bulk carriers

date, with some 4.65 million removed from the

for ordering and cancellation, the only certainty

during the first half of the year, prices plateaued

dry bulk market, and 10.8 million dwt removed

is uncertainty: “Cancellation is nowhere near

in the summer, and are now starting to fall. If

from the tanker market.

the levels that the markets had been predicting.

Marsh and the Korean yards are correct, this

theBaltic Winter 2010 www.thebaltic.com

29

Tanker update

On the way down?

Some owners are struggling, but the softer market could offer opportunities for acquistion

2

010 has not been a good year for the tanker market, although both the BITR Dirty and the BITR Clean headed upwards in October, suggesting

the beginning of a seasonal demand increase.

Reports from Platou, however, show that rates for a 12-month time-charter for a VLCC fell from $38,500 to $30,000 during October, illustrating a lack of confidence in the market for the year ahead.

Small tankers suffer Odfjell’s

parcel

tanker

sector

reported

an operating loss of $47 million in the third quarter of 2010, which it attributed mainly to the ‘continuously weak’ market conditions.

“The time-charter result expressed in USD per day decreased by about 7% in the first nine months 2010 compared to the same period last year, and by 3% from second to third quarter this year,” the company said. While it believes fourth quarter results may show a slight improvement, the outlook for the near future is not good, it says: “The parcel tankers market is still challenging and the outlook for the rest of 2010 and into 2011 remains weak, although we are experiencing improved activity in certain areas. Deliveries of newbuildings continue, and the net supply will further increase in 2010. In the meantime most operators in the chemical tanker market continue to suffer losses and/or unsustainable returns. We expect a decrease in deliveries of newbuildings in 2011 as contracting has virtually ceased and many newbuildings are being delayed or cancelled.” On the brighter side, scrapping is at ‘healthy’ levels, it claims.

30

theBaltic WInter 2010 www.thebaltic.com

Tanker update

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W W W . G I B S O N . C O . U K Restructuring rules

However, it still has three sister vessels on order

Frontline announced in September that it has

Bearing out its downbeat view of future

at the yard, slated for delivery in the first quarter

restructured an order for VLCC newbuildings

prospects, Odfjell announced at the end of

of 2012.

at Jinhaiwan for the second time. In April and

September that it has cancelled orders for three

Other companies have taken advantage

May 2008, the company ordered six VLCC

9,000 dwt chemical tankers at a Chinese yard.

of falling prices to restructure existing orders.

newbuildings, and subsequently cancelled two.

It has now ordered another vessel, and deferred delivery dates for all the vessels by three months, with the first vessel to be delivered in January 2012 and the last in February 2013. “We are now committed to Zhoushan Jinhaiwan Shipyard Co., Ltd. to re-structure our VLCC newbuilding program at the yard. In addition, payment terms of the previously ordered vessels have been improved,” Frontline said.

Acquisition opportunities Nordic American Tankers said in a letter to shareholders that it expected to benefit from falling prices to acquire new tonnage: “If the present soft spot tanker market results in lower vessel prices in the second-hand markets, we shall be in a position to acquire further vessels inexpensively compared to historical levels,” said ceo Herbjorn Hansson. For Nordic American, the ability to buy vessels inexpensively and accretively was a plus that over time will outweigh the minus of a softer market, he said.

Small tankers are having a hard time of it

theBaltic Winter 2010 www.thebaltic.com

31

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Heavylift Update

Deep water demands new designs A new market is emerging for superheavyweight vessels

C

hanges in the nature of the offshore

fleet, which currently consists of 69 vessels, and

20 knots, the vessel was able to perform the

market are leading to an increasing

is set to increase to 75 by the end of 2012.

round trip between Germany and UK within 10 days, performing 11 consecutive voyages

need for heavylift vessels that can

“In Oaktree Capital Management we have

cope with larger and wider loads,

found a competent partner who understands

says Andre Goedee, ceo of Dockwise: “Current

our philosophy and business strategy and who

trends for upcoming projects in the oil and gas

will strongly support us in the further growth

industry indicate that there is a need for new,

of Beluga Shipping,” said Beluga ceo Niels

BBC enters US market

larger vessel that can handle deeper waters,

Stolberg.

BBC Chartering & Logistic has entered a joint

between March and June.

harsher environments, and heavier cargoes.”

venture with US logistics provider, Teras Cargo

Exploration and production is shifting from more

Transport. The new company, Teras BBC

shallow waters in traditional areas to extremely

New sectors

Chartering Houston LLC, based in Houston, has

deep water and more remote areas, and industry

The wind farm sector continues to provide

been formed for the joint ownership of 7,500

demand is for larger, heavier equipment, which

one of the fastest growing opportunities in the

dwt multipurpose heavy lifter BBC Houston. The

can be built as a completed integrated unit,

project cargo market for those with the vessels

vessel now flies the US flag, and can operate

Goedee continued. These structures are built

to exploit it. This September, Jumbo Offshore

with the US cabotage market.

mostly in the Far East, but are used in West

successfully completed a project installing some

According to Svend Andersen, president and

Africa, the Gulf of Mexico and Brazil – meaning

131 turbine posts for the Greater Gabbard

CEO of BBC Chartering, the US flagged vessel

there will be a real need for vessels to transport

Offshore Wind Farm (GGOWF), off the south-

is setting a milestone in the company’s history.

these structures.

east coast of the UK. According to Jumbo, this

“We are proud to be able to now offer a US flag

In response to what it sees as a growing

is the first time that turbine posts have been both

vessel to our global customers through our US

market need, Dockwise is looking to increase

transported and installed using a free-floating

company,” Andersen said.

its share capital by $75 million in order to

vessel with dynamic positioning.

finance the development of a ‘Type 0’ semi-

Joe Sanders, president and CEO of Teras

SAL has also benefited from UK offshore

Cargo Transport, said: “This latest edition to our

submersible vessel. The ‘Type 0’, which would

wind farm installation, with the MV Annette

fleet, BBC Houston, will increase our presence

be larger than Dockwise’ current 73,000 dwt

transporting 51 monopiles for the Walney

in the United States and worldwide, and it will

semi-submersible Blue Marlin, will be designed

Offshore Project Phase I. With a high speed of

improve our service on every continent”.

to meet the expected increasing demand for means of transportation for extremely large and heavy production platforms. The new vessel, which will be a “unique design concept”, would also allow the company to target the purposebuilt FPSO market, Goedee said.

More finance for Beluga Beluga Shipping has also been looking for funding for further expansion of its fleet. In July this year it secured an injection of more than E100 million funding from US-based investors Oaktree Capital. It is expected that the money will be used for the further expansion of Beluga’s

MV Beluga Stavanger at sea

theBaltic Winter 2010 www.thebaltic.com

33

Towage & salvage

Just reward?

The need to protect the environment is driving expansion in the salvage sector – but are salvors adequately rewarded?

T

he US Oil Pollution Act 1990 (OPA

preparing for the legislation for some time, but

Expansion

90) was introduced in the wake of the

international companies also see the OPA 90

In an indication of the strength of the salvage

Exxon Valdez oil spill, to ensure ships

legislation as an opportunity to increase their

market worldwide, several companies are

and ports had adequate anti-pollution

activities – and their profile – within the US mar-

looking at international expansion. Titan Salvage,

measures in place. Now, more than 21 years

ket. The Tsavliris Salvage Group, for example,

for example, recently opened a salvage base in

after the incident, that legislation is due to

has formed a strategic partnership with US firm

Australia. “We have recognised for years the

come into force in February 2011. Under the

T&T Bisso, which is aimed at improving both

limited response capability in the Australia/New

new regime, all tankers over 400 tonnes call-

the efficiency and effectiveness of response to

Zealand region,” says Titan managing director

ing at US ports must have Vessel Response

salvage requirements in the United States under

Dan Schwall. “We have been keeping track

Plans for dealing with oil spills. The plan must

OPA 90. According to a Tsavliris spokesman:

of the market, and recognised an opportunity

include a listing of salvage and oil spill response

“Tsavliris Salvage is using this as a platform to

to assist in the region.” The facility, based in

organisations (OSROs) with whom the owner

market both itself and its relationship with T&T

Cairns, Queensland is strategically located to

has a service agreement for handling a cleanup

Bisso to the shipping industry worldwide.”

respond to marine and environmental disasters

should a spill occur. US salvage firms have been

threatening the Great Barrier Reef and other

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phone + 31 10 240 25 00 fax + 31 10 240 25 99

email sales@fairmount.nl www.fairmount.nl

theBaltic Winter 2010 www.thebaltic.com

Towage & salvage marine casualties throughout the Australasia and South West Pacific regions.

Other companies are looking at the possibilities for expansion further East.

Resolve Marine says that it is looking to expand its operations in Singapore, and is also looking for further expansion worldwide.

Spread too thin?

The wealth of opportunities, however, is also cause for concern as it indicates a lack of suitable salvage cover and expertise, according to Tsavliris: “If demand is high one could argue that the salvage & towage industry is not well placed to face those demands. This is sadly due to the professional salvage industry slowly eroding, with only a few companies having salvage tugs on station worldwide.” In general terms the salvage and towage industry is not doing as well as it has in the past, the group warns, with both lumpsum and daily hire rates down, and the use of Lloyd’s Open Form contracts considerably reduced.

Ensuring that the work of the industry is properly rewarded continues to be a major concern for the International Salvage Union (ISU), which has renewed its call for changes to the regime governing marine salvage to enable payment of environmental awards which recognise the environmental benefit conferred by salvors.

The current system does not provide proper encouragement to salvors to assist vessels that threaten the environment but which do not represent a potentially valuable salvage service, said Todd Busch, president of the ISU. Environmental issues now dominate every salvage case and what may have been a satisfactory ‘encouragement’ then is no longer so today. Further, there is more risk to the salvor from tougher regimes that can criminalise the actions of well-meaning salvors. While salvors have an obligation to prevent or minimise environmental damage whilst carrying out salvage operations, they are not fully rewarded for the benefit they confer. In addition, salvors and marine property insurers believe it is not fair that the traditional salvage reward that currently takes into consideration the salvors’ efforts in protecting the environment is wholly paid by the ship and cargo owners and their insurers without any contribution from the liability insurers, who cover the shipowners’ exposure to claims for pollution and environmental damage. If the salvage industry is to continue to provide the level of service necessary in an increasingly environmentally aware world, these issues must be addressed.

theBaltic Winter 2010 www.thebaltic.com

35

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Shipmanagement, crewing and employment

Shipping job prospects Mark Charman of global recruitment firm Faststream looks at the global market for commercial shipping people and the increasing popularity of Singapore

M

any Baltic Exchange members

the interview process, all too often companies

and Geneva, but way ahead of its closest

working in the commercial shipping

are behaving as if the candidates should be

regional rival Hong Kong. The shipping markets

markets will probably have ended

grateful they are in with a chance of securing

continue to offer good opportunities for talented

the year with a sense of optimism.

employment with them.

individuals and we believe that, as long as there

We have seen this optimism reflected in the

In fact it is the talented individuals with strong

are no market shocks, the post Christmas

surge in job vacancies since September, and in

commercial shipping skills who are very much

and post bonus period should be a busy one

a renewed sense of confidence amongst many

in demand.

for freight traders, shipbrokers and chartering managers looking for fresh challenges.

of our candidates. Indeed, over half of shipbro-

The continuing growth of Singapore as a

kers and chartering managers responding to a Faststream survey this October reported that

Global round up

shipping centre is translating into more and more jobs. Our own offices in Singapore have

they had been approached about a new job

Singapore

increased in size with our team now 18 strong

However, some companies do not seem to

2010 has seen Singapore go from strength

to handle the ever increasing demand. Indeed,

have realised that the employment market is

to strength and consolidating its position as

we are finding more and more Europeans and

not as fragile as they may think and that people

a leading shipping centre. Singapore has fast

Americans presenting themselves to us as

are not always desperate for the job on offer.

become a work location of choice for Europeans,

Singaporeans and looking to stay in the region

This means that they are losing out on good

Americans and Asians, and not a posting to

for the long term.

candidates because they are failing to engage

be endured. This is reflected in a survey we

Salary levels for commercial roles in

with them. Whether it is the low ball initial salary

conducted amongst shipbroking and chartering

Singapore vary greatly and are in a state of

offer, the weeks of radio silence between an

manager contacts which found that Singapore

general flux. Some candidates are being offered

interview and a job offer or simply the way in

was the most favoured location in the world

very generous ex-pat packages, including

which the candidate is made to feel through

to which to move, slightly ahead of London

three or more times in the past year.

schooling, flights and housing. Others are being offered much less. Our data shows that a mid-level operations manager or assistant chartering manager can be placed quickly and for approximately ÂŁ59,900; however, these salaries vary greatly. In the commercial revenue generating sector, companies are competing internationally against London and New York for talent and will pay accordingly for the right candidates.

Europe Confidence about the future of the cluster is high amongst the London chartering community.

Whilst about half of all the respondents to a Faststream survey felt that London would Engaging with candidates is more important than ever

theBaltic Winter 2010 www.thebaltic.com

continue to be the leading chartering centre over

37

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Shipmanagement, crewing and employment the next decade, London-based respondents

transactional side of shipping. The outsourcing

directors and other board level appointments,

were even more positive about London’s future,

of simpler legal services to cheaper locations

over the last two quarters have represented

with 69% believing that it would continue to be

like India and Singapore, as is currently being

a slow but significant upward trend in activity.

the world’s leading chartering centre. Indeed,

done by many of the large corporate law

Allowing for extended hiring time frames, with

77% of Londoners considered the growth of

firms, is not being undertaken by the niche

some senior assignments taking between six

Asian shipbroking centres to be an opportunity

maritime law firms as their work today is so

and nine months to complete, we have seen

rather than a threat to their jobs.

specialist. Indeed, when it comes to large equity

positive growth in enquiries from organisations

An important driver of employment in the

buyouts of shipping companies, the corporate

wanting to plan strategically for the future and

European shipping markets in recent months has

law firms are turning to the maritime specialists

requiring senior talent to do so. Caution has

been the strong demand for shipoperators by

for assistance. Many maritime lawyers say that

been the watchword over the last two years for

the London and Geneva-based trading houses.

this recession feels different to the last shipping

shipping executives, but we are starting to see

A number have grown their freight operations

downturn. A number of lawyers are reporting

a clear change in attitude from individuals who

quite substantially in the past 24 months and

that their shipping clients, rather than cutting

are now looking to drive their career onwards

need experienced vessel operators. Geneva-

down on their use of external legal resources,

and upwards. Leadership candidates have been

based trading firms are paying particularly well

are actually making greater use of their services

increasingly making enquiries about competitive

for vessel operators, with £80,000 packages

than ever before to guide them through complex

market opportunities. As a region, Asia still sits in

available for the right people. Working as an

refinancing, corporate and tax issues.

top spot for executive placements, but the UAE

operator in a trading environment is often

The gradual movement of a number of

and its tax-free welcome is also reappearing as

more pressurised than working for a shipping

shipowning operations away from London does

a destination of choice, particularly for Europe-

company, with trading companies wanting

not seem to have affected the big maritime legal

based executives.

people who understand the interaction between

firms, with most taking their instructions from

the physical and derivatives markets as well as

people and companies outside the UK and often

movements in the industry generally, it is likely

the ability to interact with and, when necessary,

providing a real time service via their networks

that 2010 will close without a clear understanding

stand up to traders. In London by comparison,

of local offices around the world. However, the

of shipping’s immediate prospects. There are still

operators working with trading houses can

many niche law firms dotted in maritime centres

difficulties facing the world’s financial markets

expect to earn £60-70,000 whilst the range of

across the UK and Europe, do rely on the

and this will continue to have an effect on key

salaries offered by shipping companies varies

presence of local business, be it offshore, short

shipping hubs around the world. In the UK

greatly, from between £30-60,000. Most of the

sea or port related. From a recruitment point of

we are also yet to see the full impact of the

demand for chartering managers has been on

view, the maritime legal sector does not see the

government’s policy to cap working visas.

the tanker side of the business, with a number

same level of chopping and changing of lawyers

Although we face many unknowns as we

of London vacancies recently opening up due to

from one firm to another, as its counterparts

move into 2011, the one certainty is that good

relocation of individuals. Despite all the focus on

in the corporate sector do. However, there is

candidates are not walking the streets. The

and excitement about Asia, London still remains

strong demand for mid-level lawyers bringing a

demand for commercial shipping talent remains

the world’s leading chartering centre.

strong contact book. Our US office reports a fair

high and will continue to rise for the foreseeable

amount of movement across the in-house legal

future. Singapore, in particular, appears to be

sector with a relatively high number of admiralty

leading the revival, and companies are having

The legal sector

lawyers reaching retirement age and mid-level

to review their recruitment techniques and

London’s important maritime legal sector

lawyers stepping up to fill the roles. We see a

employment packages to secure the best talent.

continues to flourish, with city law firms

strong demand for young lawyers with three to

The movement of people between companies,

specialising in the shipping sector performing

five years of experience with salaries ranging

industries and global locations will continue to

well when compared to their peers in the

from $90-125,000.

have a significant impact on the success of

Although

we’re

seeing

many

positive

banking and other financial sectors. With much

the industry as we begin to emerge from these

of the less sophisticated wet work already

difficult times.

handled in local shipping centres such as

Senior management

Athens, or by in-house P&I lawyers, London’s

Executive

maritime lawyers are mainly focused on the

candidates, including chief executives, managing

and

senior

management

Baltic member Mark Charman is group level

managing director of shipping industry recruitment firm Faststream.

Average salaries – In-house roles Singapore Junior

Mid

Senior

Operator

S$ 84,500 (£41,050)

S$ 117,125 (£59,900)

S$ 156,250 (£75,900)

Charterer

S$104,000 (£50,540)

S$149,500 (£72,650)

S$234,560 (£113,980)

Europe Junior

Mid

Senior

Operator

£24,000 (S$ 49,400)

£49,500 (S$ 101,860)

£70,125 (S$ 144,280)

Charterer

£38,740 (S$ 79,700)

£ 59,120 (S$ 121,610)

£100,750 (S$ 207,245)

theBaltic Winter 2010 www.thebaltic.com

39

ShipNet has more than 20 years of experience in building and delivering software solutions for the global shipping industry.

ShipNet solutions currently enable more than 300 industrial shipping customers of all sizes and trades to effectively manage their business.

Our vision is to be the leading maritime enterprise resource planning (MERP) provider. Our solutions are designed to deliver control, automation and efficiencies across all areas of the enterprise through a single integrated platform. Utilising established and leading edge technology and marine industry expertise we will continually look to maximise the benefit received from ShipNet solutions by extending our solution to include new areas for business optimisation.

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Ship management, crewing and education

SRI takes up legal cudgel New organisation to fight for legal protection for seafarers

T

he legal position of seafarers has

seafarers and for all stakeholders with a genuine

could achieve: “The Hebei Spirit campaign was

become an increasingly vexed topic,

concern for the protection of seafarers.”

a success because all of the maritime industry

as cases such as the trial and impris-

The new centre will work in three main areas:

worked together – one voice, 100% aligned. A cohesive approach is the right attitude.”

onment of Captain Mangouras, or the

crew of the Hebei Spirit, have highlighted the

Research

lack of legal protection available to seafarers. It

It will conduct independent research on topics

has even been suggested that the risk of pros-

of strategic importance; monitor major legal

ecution associated with command of a vessel

developments

could be a factor contributing to young people’s

rights and remedies; and develop, coordinate

reluctance to choose a maritime career.

and participate in cross-border networks of

Against this background, a new organisation

that

affect

seafarers’

law,

researchers, research bodies and universities.

dedicating to tackling such abuses, and protecting the legal rights of seafarers worldwide

Education

was launched in September this year. Seafarers’

It will promote education activities, programmes

Rights International will use high level research

and exchanges so as to widen knowledge of

and analysis to raise awareness of the legal

seafarers’ laws, and disseminate the results

concerns of seafarers, and will work to improve

of research in order to stimulate debate and

the protection of seafarers in national and

promote changes in laws as appropriate.

international laws.

The new centre will be led by international

Training

lawyer Deirdre Fitzpatrick in the role of executive

The centre will develop and deliver legal training

director. She will be supported by an advisory

and consultancy programmes that reflect the

board comprising experts from the shipping

needs of stakeholders in the shipping industry

industry and the legal world.

working with seafarers and for the protection

Launching Seafarers’ Rights International,

and promotion of their rights.

Deirdre Fitzpatrick said: “Seafarers work in often

The centre has been funded by a start-up

hazardous conditions. As mobile workers they

grant from the ITF Seafarers’ Trust charity and

are highly vulnerable to ill treatment, exploitation,

is an independent organisation. According to

abuse and injustice. They operate within and

David Cockroft, general secretary of the ITF:

across different national jurisdictions and are

“The success of an independent body such

subject to different international and national

as Seafarers’ Rights International is crucial to

laws. In some cases, there may be doubt as to

identifying and tackling the rights of seafarers

what if any law is applicable or enforceable.

and that is of interest to all industry stakeholders,

“Seafarers’ Rights International will be

including the ITF”.

dedicated to advancing seafarers’ rights and

The centre has also won the support of

interests worldwide. Currently there is no

InterManager, the international trade association

established forum for research and dissemination

for in-house and third-party shipmanagers.

of ideas and information regarding employment

Speaking at the SRI launch, Intermanager

law in the area of international maritime transport.

president Roberto Giorgi pointed to the success

Seafarers’ Rights International will work to fill

of the campaign to release the crew of the Hebei

this gap. It will be an international resource for

Spirit as an example of what the maritime industry

theBaltic Winter 2010 www.thebaltic.com

Seafarers’ Rights International will: • promote research, education and training in the legal rights and remedies applicable to seafarers for the purpose of improving the effective protection of seafarers and the safeguarding of their interests • aim to be a centre of excellence and to increase interest among lawyers in seafarers’ rights and help them develop expertise across the range of maritime, labour and human rights laws • provide strategic legal support to contribute to political, industrial, campaigning and lobbying agendas towards the promotion, protection and enforcement of seafarers’ rights under a just system of laws • raise awareness on issues of seafarers’ laws, rights and remedies among policy makers, lobbyists, academics, legal practitioners and stakeholders generally in the maritime industry and beyond • aim to establish seafarers’ rights as a curriculum subject for students of law • identify current issues in the maritime industry concerning seafarers that can be developed further into research projects with practical outcomes for seafarers and others working to assist seafarers • produce publications such as online toolkits, guidelines for lawyers, checklists for seafarers and a dedicated website.

41

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www.thebaltic.com AMEYDE MARINE BV

ECKHARDT MARINE GMBH

PERCIVAL A COSTA SERVICOS

AMLIN CORPORATE INSURANCE

FAIRMOUNT MARINE

NAVIAS

BASS AS

GFI GROUP

PORT IT

BI NORWEIGAN SCHOOL OF MANAGEMENT

GLOBAL LEADERS INSTITUTE

REDFOUR SECURITY GROUP

GRINDROD LTD

BORENIUS & KEMPPINEN LTD

HARTMAN SHIPPING

RIGHTSHIP UK LTD

CANCHART FM&C PTE LTD

HYDE MARINE

CANFORNAV

ITERNATIONAL REGISTRIES INC

CLEAR TRADE EXHANGE

LCH CLEARNET

CLYDE & CO

MEDSCREEN

CURACAO TOWAGE COMPANY

NAVITA SYSTEMS AS

DORIS MARITIME SERVICES SA

NEI

SOUTH OF ENGLAND SERVICES

DREAMTECH

NITC

STUDIO NAVALE CANEPA SRL

E A GIBSON

NOS CLEARING ASA

TRAYPORT LTD

RWO GMBH SAL-SCHIFFAHRYTSKONTOR ALTES LAND GMBH & CO SEVERN TRENT SERVICES SHIPNET AS (NORWAY)

Corporate viewpoint Concateno

Benzene exposure biomonitoring

A

simple and effective method to moni-

metabolising other substances as well,

tor occupational exposure to help

including alcohol, so a positive result on a

Benefits of Concateno’s benzene exposure biomonitoring

protect against the long-term health

phenol test may not be specific to benzene.

The S-PMA test provides a low cost method of

effects from benzene exposure in the

• S-PMA tests: S-PMA is a metabolite which

risk assessment around benzene exposure. It

work place, a simple urine sample can be col-

is specific to benzene. If benzene is ingested

is also the most effective test because it more

lected and analysed to ensure the correct health

by the body, it will produce S-PMA. S-PMA is

specific and sensitive than other tests available.

and safety measures are in place. This is ben-

only produced from ingesting benzene.

When to use the S-PMA test

zene exposure biomonitoring.

Which test is best for exposure monitoring?

As a way of monitoring long-term exposure,

Each of the tests described above have their

on all employees who work with or around

Benzene exposure can be severely damaging

strengths and weaknesses. For monitoring long-

any substances containing benzene. A baseline

to health. It is a known carcinogen, it can

term, low level exposure to benzene, the S-PMA

urine sample should be taken when an employee

contribute to blood disorders like anaemia

test is superior for the following reasons:

starts work in order to interpret random or post

and leukaemia and it can cause bone marrow

• The limitations of airborne testing: airborne

incident samples.

damage. Benzene can enter the body by three

tests can only measure levels of benzene

types of exposure: inhalation, ingestion or

in the air. This is an indicator but it cannot

Sample collection for S-PMA testing

absorption through the skin.

measure

to

Any S-PMA produced is eliminated from the

benzene. Nor can it account for benzene

body within 24 hours. This is useful as positive

that has been absorbed by the skin.

results will indicate recent exposure to benzene

Effects and risks of benzene exposure

Types of risk

people’s

actual

the test should be deployed at regular intervals

exposure

Risks to employees working in environments

• The limitations of phenol testing: phenol

and help identify the source of exposure. The

where benzene is present are from long-term,

tests show levels of phenol in the body (as

recommendation is to collect urine samples after

low-level exposure (for example through constant

opposed to levels in the environment). But

the end of a work shift for regular monitoring.

exposure in an unmonitored area) and from

although phenol is a metabolite of benzene,

For testing following an incident it is

short-term high level exposure (for example,

it is produced by the body from ingesting

recommended to collect samples an hour after

from accidents or malfunctioning equipment).

many substances – not just benzene. A

any exposure and to follow this up with further

positive result for a phenol test can therefore

samples after 9-12 hours and 24 hours. This will

Tests for measuring benzene exposure

only indicate exposure to benzene; it does

enable S-PMA concentrations to be charted and

not conclusively show it. All it can show is

will assist in the interpretation of results.

There are two types of test available for testing

exposure to phenol.

Peak levels of urine S-PMA following an

• Phenol testing also has limited sensitivity and

acute benzene exposure are variable due to the

is not suitable as a biomarker for measuring

differences in the rate of benzene metabolism

benzene exposure at levels below around

between individuals and varying degrees and

Airborne monitoring tests: these detect

5 parts per million (ppm). The occupational

routes of exposure.

contamination in the air in the immediate

exposure limit of benzene is now set at levels

environment. They can come in two forms, either

of 1 ppm and lower in some countries, which

Concateno provides benzene exposure

as gas detectors or vapour monitoring badges

means that phenol testing can produce

biomonitoring to the maritime industry, including

(also known as charcoal badges). Charcoal

negative results for levels which represent

most recently for workers involved in the clean

badges absorb toxins in the air and are sent to

a risk.

up of the Gulf of Mexico oil spill.

Benzene – airborne tests and biomonitoring tests.

a laboratory for analysis of the toxins absorbed.

To find out more or to start using this service

Benefits of S-PMA tests

please contact us.

Biomonitoring tests: these identify toxins in

Concateno’s benzene exposure biomonitoring

living tissue using samples like blood or urine.

service uses S-PMA. The S-PMA test is both a

There are two biomonitoring tests available for

biomonitoring test so it shows the body’s actual

testing benzene. These are phenol tests and

exposure (as opposed to inferred exposure

Concateno

S-PMA tests. Both are laboratory tests using

from airborne contamination) and it is specific

92 Milton Park,

urine or blood samples:

to benzene. A positive result on an S-PMA test

Abingdon,

• Phenol: phenol is a metabolite (ie a substance

is a positive result for benzene exposure and

Oxfordshire,

nothing else.

OX14 4RY,

produced by metabolism) of benzene, so a positive result on a phenol test can indicate

Unlike phenol testing, the S-PMA test is

benzene exposure. Importantly, however,

sufficiently sensitive to meet the new occupational

Tel: +44 (0)1235 861 483

phenol is not only produced by the body

exposure limits of 1 ppm and lower.

Email: enquiries@concateno.com

from ingesting benzene. It is produced by

UK

www.concateno.com

theBaltic Winter 2010 www.thebaltic.com

43

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Ship management, crewing and education

Singapore commits to training Maritime Institute and enhanced cluster fund to promote research and manpower development

T

Enhancements to Maritime Cluster Fund

positions. The third scheme, InvestManpower@

some $200 million over the next 10 years to establish a Singapore Maritime

Singapore has also announced three new

and industry-wide training for maritime staff.

Institute in collaboration with the

schemes to further encourage the development

This scheme encourages maritime companies

Agency for Science, Technology and Research

of quality maritime manpower in Singapore. The

to invest in training infrastructure or adopt

(A*STAR), the Economic Development Board

schemes, Training@Maritime Singapore; Talent@

structured human resource tools and processes

(EDB) and local universities. The Institute is

Maritime Singapore; and InvestManpower@

in order to develop their talent pool. Accredited

part of ongoing efforts to support the growth of

Maritime Singapore, will provide expanded

maritime certification programmes and the

Singapore as an international maritime centre,

support for training and development activities.

establishment of training facilities are potential

he Sinagpore MPA has earmarked

Maritime Singapore, supports enterprise-specific

projects covered under this scheme.

and reflects Singapore’s continued commitment

The Training@Maritime Singapore scheme will

to the maritime industry, the MPA said. It aims

provide support for in-house training activities,

“The Singapore MI and the enhancements

to develop strategies and programmes related

in order to encourage maritime enterprises to

to the MCF are initiatives aimed at bringing

to the academic, policy and R&D aspects of the

provide customised training programmes for

maritime R&D and manpower capabilities in

maritime industry. Key focus areas will include

their employees in Singapore. Talent@Maritime

Singapore to the next level to meet the needs

shipping, port and maritime services, as well as

Singapore aims to support the development

of the growing number of maritime companies

offshore and marine engineering.

of local talent for management and leadership

here,” said MPA chief executive, Lam Yi Young.

The maritime institute will coordinate and align the strategic activities of the various maritime institutes to be established at Singapore’s institutes of higher education. The MPA hopes that it will attract existing academics and researchers in the maritime sector to Singapore and help to develop the next generation of talent. It also aims to increase the pool of maritime-trained students and professionals in Singapore, and encourage more industry R&D projects to be undertaken in Singapore.

“The Singapore MI will adopt a holistic approach

to

maritime

education,”

said

Singapore’s Deputy Prime Minister and Minister for Defence, Teo Chee Hean, speaking at the Singapore Shipping Association’s 25th Anniversary Gala Dinner. “It will drive research and development in key areas such as green shipping, maritime logistics and operations, as well as marine and offshore engineering.”

Singapore is investing in the academic, as well as the operational, side of shipping

theBaltic Winter 2010 www.thebaltic.com

45

Ship management, crewing and education

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Migration cap presents challenge for UK shipping companies

U

K Home secretary Theresa May has announced that the number of skilled workers allowed to enter the UK from outside the EU will be reduced from 28,000 a year down to 21,700. This will not only affect employees applying for new

jobs in the maritime sector, but those already in the country looking to change jobs or renew visas. In a revision of initial proposals, companies will be allowed to transfer existing employees from other locations into the UK, provided their salary is above £40,000 per annum. However, this change will not be enough to help the UK maritime sector, said recruitment agency Faststream ceo Mark Charman.

“The pool of European officers is diminishing, and the pool of Asian officers is increasing, so people who have to hire ex-seagoing officers for on-shore positions are really concerned. Take a company looking to hire a marine superintendent. These are generally ex-chief engineers or ex-masters. The new migration cap will make it ever harder to hire staff. For many companies this is another step towards moving shipmanagement and operations out of the country,” Charman said.

Spinnaker Recruitment’s Phil Parry was more sanguine, saying that regulations on getting permission for recruitment outside the EU were already so complex that relatively few UK-based companies looked to these areas for recruitment. “My overall view is that it will deter speculative incomers who come to the UK looking to get a job after they arrive. On balance, I don’t think too many shipping employers will

be too distraught over the changes,” he said.

EFMD

46

theBaltic WInter 2010 www.thebaltic.com

One of the leading global tanker owners comments on EU Insurance Sanction against Shipping NITC, which was privatized in 2000, is a global operator owning one of the largest fleets of crude oil tankers, and as such we do business with oil majors worldwide.

NITC's income has never been part of the State budget and nor has NITC received any payment from State treasury. The Sole beneficiaries of NITC income are its shareholders who are five million retired private Iranian senior citizens who own shares via pension funds.

NITC has carried 104,000,000 tones crude oil during 2009, out of which 80 percent had been lifted from non-Iranian- oil- loading terminals and 51 percent of the above tonnage had been discharged at European Oil Terminals.

Within the last nine months, NITC has won three international maritime awards from Lloyd's List and Seatrade. H.E. Mr. Efthimios Mitropoulos Secretary General of IMO, during the maritime event of Seatrade on May 24th, 2O1O in London, praised NITC as an example for complying international maritime law and seaborne trade.

The Managing Director and Commercial Director of NITC has long been the board member of Steamship Mutual and U.K. P&I Clubs respectively. This represents the level of trustfulness between NITC and European insurance organizations.

NITC is not involved in the import of petroleum products into lran.lt is not involved in the transfer of technology relating to oil exploration, refining or LNG. It does not carry any materials relating to nuclear proliferation. NITC is not on any list of prohibited companies. In fact, some of our supplier companies have received confirmation from their governments, including the U.K, that we remain a "legitimate business partner".

The reason for this announcement is to emphasize that NITC is a legitimate business partner towards oil majors and other clients.

Corporate viewpoint Hyde Marine

Hyde Marine

Ballast water treatment system retrofit: A fleet management challenge

A

challenges

the selected equipment provides best overall

imposed by the BWM Convention and

economy, compliance with BWM regulations,

the requirement to fit type approved

and reliable operation for the life of the vessel.

BWM systems are finding space and

Careful consideration must be given to the

power, and managing the installation onto exist-

initial costs, meeting the installation challenges

ing ships. A BWT system must be selected that

discussed above, and what are the total life

is well suited to the particular vessel, whether

cycle costs of the equipment.

mong

the

greatest

Among

it is a retrofit or a newbuilding. Because of the

the

operational

challenges

significant investment involved, an established

that should be considered in selecting BWM

technology supplier with proven operational

technology:

reliability, IMO type approval and possibly other

• What are the operating costs of the BWM system?

approvals from the flag state or port states

• Does the BWT affect the operation or turn

should be chosen.

around time of the ship?

The system must be compatible with the

• What are the maintenance requirements -

planned or existing ballast system and ballast pumps. Particularly in the case of retrofit, the

installed during normal operation of the vessel.

system should be designed for adaptability with

A truly modular configuration may also allow

modular components for installation flexibility

the components to be carried into the vessel

and preferably suitable for transport onto the

through existing access hatches and assembled

ship and to the installation space through

in place, minimising total installation cost.

intervals and downtime?

• Is their any specialised training for crew and officers and how will it be provided?

• Does the system operate in all water salinities or is it necessary to carry sea water or brine?

existing accesses. The owner/operator and

The retrofit process will normally require

• If the system uses chemicals for any

supplier need to work closely with the installers

a ship check to determine the most suitable

purpose, what are the safety and logistical

and class.

location for the system components and to

considerations

Many installation challenges must be met,

develop the necessary engineering information

handle and store the chemicals?

particularly on existing vessel retrofits, including:

and drawings to meet the owner and class

• What are the risks of environmental damage

• Capacity and discharge pressure of existing

requirements. An evaluation of the degree of

that could be associated with the operation

automation and the control system modifications

of the BWT system? How can the operator

• How does the vessel normally conduct

required to integrate the BWT system controls

be assured that any active substance is fully

ballasting operations (number and capacity

into the ship’s ballast control system should be

neutralised before overboard discharge?

of treatment systems needed)?

made, together with material estimates for pipe

The shipowner/operator should seek a

runs, foundations and cabling. An experienced

trusted technology partner with a proven record

pump

• Are there ballast stripping pumps or eductors

to

purchase,

transport,

supplier will be very helpful with the vessel

of successful installation and a suitable reference

• Available power for treatment system

inspection and data collection. Complex retrofit

list, who is able to provide technical support

• Available space for equipment

projects will benefit from detailed planning

before and during installation, commissioning,

• What will be the optimal BW piping

and engineering, in close cooperation with an

and after sale service. The technology should

experienced marine engineering firm.

be fully tested and have received IMO type

used?

arrangement

Lessons learned from previous installation

approval, meet Class requirements, and have

experiences can be particularly helpful. Hyde

the capability to meet more stringent regulations

• Is a dry-docking needed to install?

Marine had the advantage of five prototype

if needed.

• Integration of the BWMS into the ballast

systems installed in 2000 and 2001 on three

The Hyde GUARDIAN System is a fully

cruise ships, a containership with a slow speed

automatic and totally chemical-free ballast water

diesel, and a parcel tanker. The lessons learned

management solution. The system’s robust

from these experiences were not only excellent

design includes an efficient, auto-backflushing

background for future installations, but are

filter which efficiently removes sediment and

reflected in the design of the IMO Type Approved

larger plankton, and a powerful UV disinfection

Hyde GUARDIAN® system.

system which destroys or inactivates the smaller

• Access to get the BWMS into the machinery space

control system • If chemicals are required, consider tanks, neutralisation process and monitoring • Special considerations for installation in hazardous areas • Total purchase and installation cost of the

organisms and bacteria. The combination of

BWM solution

Selection of ballast water treatment solution

these technologies has proven to be a cost-

almost always extremely limited. Equipment that is modular in design allows greater flexibility to fit

The shipowner/operator will be presented with

ballast water management solution.

components into the existing machinery space

many different ballast treatment options. They

and creates an opportunity for the system to be

will need to choose carefully in order to ensure

48

theBaltic Winter 2010 www.thebaltic.com

The space available on an existing ship is

effective, safe, and environmentally friendly

Thomas P. Mackey, Hyde Marine Inc.

Green shipping

Green shipping In a round-up of news from the environmental sector, we look at three different approaches to the GHG debate

Greenhouse Gases – MEPC

was disagreement over whether these should

position to present market-based measures

IMO’s Marine Environment Protection Committee

become mandatory for new ships.

at Cancun could lead to a levy being imposed

(MEPC) met for its 61st session in London from

outside the auspices of IMO. Speaking at the

27 September to 1 October. The committee

Greek Shipping Summit in early October, ICS

Greenhouse Gases – Cancun

chairman Spyros Polemis said that ICS and the

measures (MBMs) for emissions reduction

Reuters reported that Norwegian Prime Minister

shipping industry fully support continuing work

without achieving any real progress. In contrast,

Jens Stoltenberg, who is co-chair of the panel

at IMO to address shipping’s CO2 emissions.

work on developing measures to improve the

advising on how to raise $100 billion a year for

“However,” he warned, “while we strongly

energy efficiency of ships did move this process

funding measures to counter climate change,

support a bankable deal being negotiated at

along.

spent much of its time debating market-based

confirmed that it would recommend a form of

IMO, we also have to be aware of the parallel

Continued opposition to market-based

carbon pricing. He told Reuters that it would be

discussions taking place within UNFCCC circles,

measures which do not follow the Kyoto concept

“challenging but feasible” to raise $100 billion

following the ‘Copenhagen Accord’ last year,

of common but differentiated responsibility to

a year from 2020 onwards to help developing

which will be much harder for us to influence.

reduce greenhouse gas emissions from several

countries tackle climate change.

Within UNFCCC circles, as opposed to IMO, we

major countries including Brazil, China and

This report increased concern within the

are greatly concerned that environment ministries

Saudi Arabia, ensured no proposals will be ready

shipping industry that IMO’s failure to be in a

may give much more attention to the money that

theBaltic Winter 2010 www.thebaltic.com

49

for the 2010 United Nations Climate Change Conference to be held in Cancún, Mexico, from 29 November to 10 December.

The MEPC agreed Terms of Reference for an intersessional meeting of the Working Group on GHG Emissions from Ships, to be held in March 2011, tasking the group with providing an opinion on the compelling need and purpose of MBMs as a possible mechanism to reduce GHG emissions from international shipping, and further evaluating the proposed MBMs considered by the Expert Group, including the impact of the proposed MBMs on, among others, international trade, the maritime sector of developing countries, LDCs and SIDS, as well as the corresponding environmental benefits.

A report from the intersessional group will be submitted to MEPC 62 in July 2011.

While there was progress on development of the Energy Efficiency Design Index (EEDI) and the Ship Energy Efficiency Management Plan (SEEMP), both of which have been previously disseminated for voluntary use, there

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Green shipping could be raised from international shipping, as opposed to the emissions reductions that might be achieved.”

He continued: “It is most important that we resist any notion that shipping is some kind of ‘cash cow’ which might pay more than its fair share for the sake of political expediency in order to bring along the developing nations into a global agreement on climate change.”

Greenhouse Gases – Unilateral Action Following the lack of progress on market based measures to curb ship-sourced CO2 emissions, US-based non-profit environmental law firm Earthjustice called on the US government to unilaterally strengthen regulations governing

Shipping must not be left in the wake of other industries, warns Spyros Polermis

climate change pollution from ships.

Earthjustice attorney Sarah Burt said:

to the requirement for vessels with large ballast

and leadership of this kind is crucial to the future

“Global warming is a global problem, to which

capacities to comply with the convention by their

success of the whole industry.”

a global solution would be ideal. But the United

first intermediate or renewal survey from 2016.

Jacob Sterling, head of Climate and

States should not wait for strong mandatory

“A bottleneck such as this in the supply

Environment in Maersk Line, said: “Climate

requirements by the IMO when that body

of systems and the availability of shipyards

change is a huge challenge for all, and we

seems unable to act. Rather, we should push

could have disastrous effects for shipowners,

believe that shipping is not only part of the

forward with domestic regulations that address

and tankers and bulkers with ballast capacities

problem, we can also be part of the solution. We

a significant portion of the greenhouse gas

exceeding 5,000 cubic metres will be among

hope that the SSI will deliver an action plan that

emissions at issue. If the other nations object to

the hardest hit,” says Stein Foss, CEO of

can strengthen the role of the shipping industry

the United States’ domestic action, we should

OceanSaver.

in shaping a low-carbon future.”

challenge them to catch up to and surpass us

“The pressure for engineers and shipyards to

The founder members aim to bring other

in addressing this problem. Once they’ve done

design and install systems quickly raises obvious

leading organisations from across the industry

so, our regulations may no longer be necessary.

quality concerns but the issues go beyond

into the SSI, including global shipping firms,

But until then, domestic regulation is the best

that. Will the manufacturers themselves have

shippers and financiers. Members will identify

tool we’ve got.”

the experience required to adequately support

the key trends which will affect shipping, explore

this demand? Will the quality of their staff and

how best to react to them, and prepare a case

their control of their supply-chain suffer if their

for action as a resource for the entire industry.

Ballast water treatment bottleneck?

capacity is stretched?”

CEOs and board-level representatives will launch this case for action at a members’ summit in 2011, chaired by Jonathon Porritt.

The MEPC also heard a report from the review

Shaping the future of shipping?

This will set the agenda for creating a vision of

stating that there are now sufficient technologies available to meet the requirements of the

A number of major companies have come

create a step change in the social, environmental

Convention for ships with ballast water capacity

together in the Sustainable Shipping Initiative

and economic sustainability of the shipping

up to 5,000 cubic metres, including those

(SSI), what they describe as an ambitious project

industry.

constructed in 2011. In addition, the number of

designed to chart a course to a sustainable

“Our involvement in the SSI supports our

such available technologies is increasing. The

future. Maersk Line, Gearbulk, BP Shipping,

sustainability vision which is ‘To take responsibility

MEPC has now granted final approval to six

Lloyd’s Register and ABN Amro are working

for the future through the choices we make

ballast water management systems that make

with Forum for the Future and WWF to look at

today’,” said Kristian Jebsen, Chairman and

use of active substances, and basic approval to

shipping’s response to issues including climate

CEO of Gearbulk. “Our work with the Forum

three such systems.

change, rising fuel costs, new patterns of global

for the Future is a way of ensuring that shipping

However, according to Stein Foss, ceo of

trade and other challenges of the future. The

is able to operate in a manner which takes all

OceanSaver, which manufactures one such

ultimate aim is to ensure that, by 2040, the

stakeholders into consideration, as well as to

system, there could be problems with ensuring

industry is robust and profitable with a strong

evaluate and reduce the impact human activity

installation of suitable systems in a timely

record of social and environmental responsibility.

has on the planet.”

fashion. Speaking at SMM in Hamburg, he

“Shipping plays a vital role in global trade and

The ultimate goal is to mobilise support

said that if shipowners allow the compliance

affects the lives of billions of people around the

across the industry for this action plan, which

dates of the 2004 Ballast Water Convention

world,” said Jonathon Porritt, founder director

may include technical and engineering initiatives,

to dictate their adoption of onboard treatment

of Forum for the Future. “Smart shipping

policy proposals, development programmes

systems, an estimated 16,000 ships will need

companies can see the way the wind is blowing

for

outfitting in 2017. This is is largely attributable

in terms of today’s pressing sustainability issues,

communications plans.

group on ballast water treatment technologies,

theBaltic Winter 2010 www.thebaltic.com

a sustainable shipping industry and a plan to

industry

leaders

and

marketing

and

51

We are the experts: • • • •

Sale and Purchase Second Hand/Recycling Vessels Financing Surveying

• Green recycling - Surveying - Localisation/Analysis and inventory of hazardous material - Waste Management Scheme - Ship Recycling Plan - Selection of suitable and certified recycling yards - Supervision/Monitoring and Reporting of the ship recycling project More than 60 green recycling projects successfully completed

Pioneer of Green Recycling Projects Guarantee of Good Performance Worldwide Postal Address: Eckhardt Marine GMBH P.O. Box 101746 D-20012 Hamburg

Phone: +49 40 328 102-0 TELEFAX: +49 40 335 783 / +49 40 331 576 E-MAIL: sandp@eckhardt-marine.de

OFFICE: Eckhardt Marine GMBH 13 Ballindamm D-20095 Hamburg

Corporate viewpoint Eckhardt Marine GmbH

Responsible recycling N

o industry has been left untouched by

management

a growing pressure to demonstrate an

Eckhardt Marine’s commercial division enables

awareness and responsibility to the natu-

the company to hire and operate tugs if ships

ral environment. Many industrial sec-

have to be repositioned under tow or to

tors have been impacted deeply by “sustainable

commercially manage vessels for a period of

development” policies. The shipping industry is

time prior to demolition. This is usually achieved

no exception, where one of the main focuses has

through a sale and leaseback arrangement

been on ship recycling activities. These have suf-

with the previous owner or on Eckhardt’s own

fered from a considerable bad image and reputa-

account in the international freight market,

tion over the last decades, often being linked with

where the company has developed very close

low industrial standards, pollution and poor social

relationships with charterers that employ

safeguards for yard workers.

elderly ships.

NGOs,

state-bodies

and

international

and

crewing

requirements.

The core activities and services provided by

organisations are addressing this issue and are

Eckhardt include:

working on an international convention for ship

• Sourcing

recycling. But international law-making is a long-

“end-of-life”

vessels

through

owners, brokers and insurance companies.

term process and the sudden drop in freight

• Sale and purchase of “end-of-life” ships on

rates has made it very obvious that solutions are

a regular basis, and second-hand ships for

needed now.

further trading for selected clients.

Who better than a company that has more

• Managing the towage and last voyages of

than a century’s involvement in this activity to

vessels, with or without cargoes, to different

face up to the future of ship recycling by offering

recycling destinations.

its experience and knowledge to meet the

• Establishing ad-hoc or long-term joint

immediate demands of the shipping industry?

ventures in every country where ships can be broken up.

An industry pioneer

• Development and introduction of new

Eckhardt Marine enjoyed the professional

rigs) totalling 1,500 vessels for a light-weight

recycling standards to meet “green recycling

backing and dedication of the traditional German

displacement (actual steel weight) of more than

objectives”. This effort has already been

industry as a subsidiary of Klöckner, VIAG/

12.5 million metric tons during the last 15 years.

successfully implemented in China and for a number of shipbreaking yards in India.

Deutsche Bank and ThyssenKrupp before management buy-out initiated by Briac Beilvert

Global network for tailoredservices

and Guenther Werle.

being taken over by FIS Holding GmbH via a

• The sale and purchase of all types of European navy vessel which are destined

Head office operations in Hamburg include a

for recycling and which are handled under

Having its roots in 1901 – the date of

trading team to acquire and place ‘end-of-life’

a “special notification procedure”. Eckhardt

inception of its former parent company –

vessels, a post-fixture department to handle

also follows up and reports on the recycling

Eckhardt Marine GmbH has experienced all

the detailed transactions following the trade,

and decontamination process to the relevant

periods of the ship recycling industry and has

and an administration team. Vessels sales can

a presence in all ship recycling countries where

be concluded in as little as two hours, although

• Trading of scrap products (heavy melting

it has a current involvement in all aspects and

others might take up to three weeks. Once

scrap, shredded scrap, billets and such like)

functions of ship recycling projects. In the past,

the sale is completed, the selling owner will

the company operated ship recycling yards in

generally arrange for the vessel to be delivered

• Conducting a sourcing programme to

Germany, the USA and Spain before becoming

to the recycling yard although, if required,

secure additional tonnage by purchasing

the most successful and reliable trading house

Eckhardt will organise the repositioning voyage

older vessels and chartering them back, via

in demolition tonnage, handling all types and

through its shipmanagement division. This

bareboat charters, for periods of two or three

sizes of floating structures (merchant ships,

team has a deep knowledge of rapidly taking

years, whilst also securing the ultimate sale

navy ships, submarines, barges, pontoons, oil

over elderly ships, including their technical

to the recycling market.

theBaltic Winter 2010 www.thebaltic.com

authorities.

to recycling clients.

53

Corporate viewpoint Eckhardt Marine GmbH Track record and strong relationships

conditions and a rational organisation of the

and analysis of the hazardous materials during

work.

the first boarding through to the dismantling of

Due to its unique background, Eckhardt

• Monitoring and advice to recycling yards

the ship’s last plate. Documented with pictures,

Marine GmbH is privileged to enjoy a network

for being compliant with ISO 30 000:2009

drawings, protocols of the work progress and

of long-standing direct relationships with

(Ship Recycling Management System) which

statements of compliance, this report gives

shipowners, selected brokers and recycling

is the new ISO standard for ship recycling

full details of the depollution and dismantling

yards. Continued good service, reliability and

facilities. This demonstrates how Eckhardt

process, quantities of waste removed and where

commitment to quality have enabled Eckhardt

Marine GmbH is fully compliant with the

and how they were ultimately disposed of.

Marine GmbH to offer a complete range of

Basel Convention and all existing technical

ship recycling services, from the processing of

guidelines (IMO, ILO etc). Early in this decade,

clients which include:

trading transactions to delivering environmental

the company became registered as a waste

• A guarantee for the complete and efficient

and engineering recycling solutions, in often

broker under the European Union notification

management of commercial and technical

complex legal and economic circumstances.

procedures and legislation for the control

green recycling processes in China and

Eckhardt Marine’s professionalism and

of trans-boundary movement of hazardous

reliability has allowed the company to foster

waste, including their disposal from both the

close relationships with a number of financial

disposing and receiving countries.

partners, including some of the major German

As

a

long-term

partner

to

This brings a range of benefits to Eckhardt’s

India.

• Continuous monitoring of the dismantling and recycling processes as well as the

breaking

subsequent depollution and disposal work.

• Best-practice

green

recycling

services

commercial banks. This enables it to secure

yards, Eckhardt has been able to convince

sufficient debt financing to purchase “end-

several yards to enter exclusive cooperative

in accordance with the most modern

of-life” vessels from those environmentally

joint ventures in China and India, where

international and domestic standards at a

responsible

with

the company’s technical procedures can

maintaining and enhancing their public image.

be implemented under its own monitoring

• Reliable client orientated services which

These include most of the world’s oil majors

systems. All yards working with Eckhardt under

reduce the client’s exposure to liability and

and publicly traded shipowning companies,

the green recycling procedures are certified

damage to their reputation and company

and more generally all shipowning companies

under ISO14001 (Environmental Management

image.

acknowledging accountability in the way their

System), OHSAS18001 (Occupational Health

Safe and responsible ship recycling is fast

vessels will be disposed of.

and Safety Management System), and many

moving up the corporate agenda for all shipping

also hold the ISO9001 Quality Management

companies. Eckhardt Marine has abundant

Still one step ahead: green recycling

System certificate.

knowledge, experience and competence to

Eckhardt Marine is in the process of

ensure that vessels are dismantled without

Eckhardt Marine has established a set of technical

practicing and implementing the new ISO30

causing undue harm to the environment and

procedures for the ecological and sound recycling

000 certification in cooperation with yards’

without endangering life. That should be the aim

of ships for owners that have a particular concern

management. These yards, specially selected

of everyone involved in the international ship-

for the disposal of their elderly ships, in compliance

by Eckhardt, differ from others as they:

operating sector.

with the Hong Kong International Convention for

• Are of new construction and functionality,

the Safe and Environmentally Sound Recycling of

meeting the standards of the western world.

Ships, 2009. Although this legal framework has

• Have a lay-out and technical infrastructure

successfully. Eckhardt Marine GmbH has been

not entered into force since its adoption on 19th

for the segregation and optimum sequence

able to exploit its genuine knowledge and deep

May 2009, Eckhardt Marine GmbH has already

of green recycling procedural steps.

experience of the ship recycling industry and is

owners

concerned

adjusted the standard of its Green Recycling Scheme to comply with this convention.

The technical procedures cover the following issues:

on board.

• The analysis and examination of hazardous materials in accordance with MEPC (Maritime

green

recycling

a range of resources to meet social and quality standards to help preserve the environment.

That is what sustainable development is

management system.

all about.

of the workforce.

• Provide appropriate accommodation and healthcare facilities for personnel.

• Employ specially trained staff for safety procedures and accident avoidance.

• Maintain

an

excellent

reputation

for

dependability and efficiency.

Environmental Protection Committee of IMO)

Contact: Briac Beilvert / Guenther Werle

A recycling plan

Managing Directors

• An appropriate removal and collection of

Eckhardt Marine monitors ship recycling projects

Eckhardt Marine GmbH

each type of hazardous waste for proper

in a very similar way to the supervisory process

Ballindamm 13

disposal or neutralisation in dedicated

employed for the construction of new ships.

D-20095 Hamburg, Germany

landfills or facilities.

Regular reports are made by Eckhardt Marine

Tel: +49 403281020

• A dismantling plan of the ship structure,

to the vessel owner, detailing the steps involved

Fax: +49 40335783

ensuring the implementation of safe labour

in the dismantling process from the inventory

E-mail: sandp@eckhardt-marine.de

179 (59) adopted 17/07/2009.

54

projects

onward transportation in an advanced waste

code for the individual and collective safety

of the hazardous materials and substances

60

a prime example of a company bringing together

ships’ components made of hazardous

localisation, analysis and condition reporting

than

facilities for hazardous waste prior to

• Have strict adherence to a protective dress

these tasks encompasses identification,

Since 1999, Eckhardt Marine has handled more

• Have secure intermediate special storage

• A waste-management scheme for handling materials or substances. The scope of

competitive price.

theBaltic Winter 2010 www.thebaltic.com

Commercial profiles

CleanBallast system receives Type Approval Certificate

T

he only commercially available German

with a low salt content, is offered for various capacities

manufactured and type-certified ballast

and assignments and both for newbuilding and

water treatment system, from Bremen-

retrofitting.

Company Information RWO, Bremen, is a leading supplier of

‘Designed and made in Germany’ is still an

systems for water and wastewater treatment

internationally well-known and recognised mark of

aboard ships and offshore rigs. The product

The CleanBallast system, developed over many

quality of the RWO maritime water treatment experts,

programme encompasses the treatment of

years by RWO water treatment experts, has received

with the CleanBallast plants being manu-factured at

drinking and process water as well as bilge,

its Type Approval. The system, consisting of a

their main site in Bremen.

ballast and wastewater. RWO is already the

based RWO, successfully proven in opera-

tion

mechanical filter process and a special disinfection

“We are very satisfied with the performance of

worldwide market leader in the treatment of

unit, has so far been ordered for more than 40 plants.

the CleanBallast systems, which already enable us to

bilge water. The company is part of Veolia

A num-ber of these plants have been installed and

implement the loading and discharge of ballast water

Water Solutions & Technologies (VWS),

in successful commercial operation since the end of

in conformity with the D2 standard of the IMO,” says

subsidiary of Veolia Water, a leading design &

2009, making CleanBallast one of the few systems

Niels Stolberg, president and ceo of Beluga Shipping

build company and a specialised provider of

that can demonstrate a longer operational duration in

GmbH, about the RWO technology.

technological solutions in water treatment. With

Due to its leading edge technologies, plant

over 9,500 employees in 57 countries, Veolia

Because of the increasing negative impacts of

reliability and short delivery times, RWO has in the

Water Solutions & Technologies recorded

alien marine organisms transported in the ballast

course of recent years already established itself as the

revenue of €2.5 billion in 2009.

water of ocean-going ships, the International Maritime

international market leader in bilge wa-ter treatment.

Veolia Water, the water division of Veolia

Organization (IMO) spent many years working on a

The company is now also pursuing this goal with the

Environnement, is the world leader in water

ballast water convention. This convention, adopted

ballast water treatment sys-tem, CleanBallast.

and wastewater services. Specialised in

commercial application.

in 2004, is aimed at preventing the unintended

outsourcing services for municipal authorities,

transport of microorganisms in ballast water.

as well as industrial and service companies,

The CleanBallast technology was developed

Veolia Water provides water service to 95

by RWO from 2003, refined over the years and

million people and wastewater service to

extensively tested under real-life conditions. Even

66 million. With 95,789 employees in 66

under extreme conditions, such as high sediment

countries, its 2009 revenue amounted to

concentrations, CleanBallast exceeded the IMO test

€12.5 billion.

requirements. The design and testing of the plant under real environmental conditions is an essential

RWO GmbH – Marine Water Technology

prerequisite for guaran-teeing a fast and safe loading

Saskia Skovdal, Marketing & Communications

of ballast water and short times alongside in port.

Thalenhorststrasse 15A, 28307 Bremen,

In addition, the efficient removal of the sediment

Germany

considerably reduces tank cleaning costs and

Tel: +49(0)421 53705-214

prevents the loss of valuable loading capacities.

Fax: +49(0)421 53705-442

Many years’ experience in treating water and

E-mail: saskia.skovdal@veoliawater.com

wastewater aboard ships and offshore rigs helped

www.rwo.de

the Bremen-based company in developing the

www.veoliawaterst.com

modular system, which is notable for its techno-logical reliability, sustainability and economical operating and investment costs. The Clean Ballast system, which can operate not only in sea water but also in waters

56

theBaltic Winter 2010 www.thebaltic.com

Commercial profiles

CleanBallast 500m“/h system installed on MV “Beluga HOUSTON”

Uptake:

Discharge:

Particles, sediments and organisms that are larger than 55µ m are

Natural regrowth and reproduction of any remaining organisms in the

separated by means of mechanical filtration in the DiskFilter. This is

treated water in the ballast water tanks is possible during the voyage.

followed by the advanced Ecto-Sys® electrolysis cell, which further

Therefore, prior to discharge the ballast water is treated a second time by

reduces the number of living organisms and disinfects the water before it

the EctoSys® electrolysis, to ensure that the performance standard D-2 as

reaches the ballast water tanks

set by the IMO is met.

theBaltic Winter 2010 www.thebaltic.com

57

Corporate viewpoint Redfour security Group

Redfour Security Group W

e have provided security in such

often requires different forms of the services we

our contacts to discuss all your marine insurance

places as Iraq and Afghanistan,

provide.

and security requirements are as follows:

where we undertook PSD duties,

REDfour and Marsh’s ‘pick and mix’ kidnap

convoys for the US military and

and ransom (K&R) package is aimed at ships

static guarding of remote site locations.

transiting the Gulf of Aden and the Indian Ocean.

Will McManus, CEO REDfour Security Group plc wmcmanus@redfour-group.com

In Africa, we assisted in the early phases of

Piracy has increased substantially over the past

an oil exploration programme in the DRC, and

24 months, with specific regional pockets seeing

continue to this day with security assistance for

a quite sizable rise in attacks.

Hans Stoermann, Vice President Marsh Oslo

the ongoing development of this programme,

This has resulted in a double blow to shipping

which is expected to take REDfour back into

companies, with increased insurance premiums

the region, whereby we will provide a complete

and heightened concerns about security of

security service from static guarding of camps, to

their vessels. REDfour has secured weapons

journey management, close protection and risk

disembarkation at various points around the

Simon Bell, COO REDfour Security Group plc

assessments for the oil exploration companies

region and can hold these weapons in storage

sbell@redfour-group.com

in question.

on land until required.

Hans.stoermann@marsh.com

In other areas of Africa we have undertaken a

REDfour and Marsh’s introduction of their

series of risk assessments for mining companies,

‘pick and mix’ K&R package gives a two-fold

Lars Gustafson, Vice President Marsh USA

private individuals and governments involved in

reward: reduced insurance costs and greater

Lars.gustafson@marsh.com

investment, and fraud investigation, and have

security.

completed many due diligence investigations in

We have completed over 300 armed and

such countries as Sierra Leone, Mali, Nigeria,

The package

unarmed transits in the Gulf of Aden, Indian

Equatorial Guinea, Congo, Mauritania, and in

Marsh offers between 10 and 50% discounts for

Ocean and the east and west coasts of Africa.

Madagascar we undertook the security for a

ships carrying REDfour teams.

Our client base is expanding and we have

seismic survey in the remote north west of the Island.

REDfour provides the most offensive defence installations, custom-made for each vessel.

Installation of razor wire electric fencing is a

REDfour MSS (Maritime Security Solutions) Ltd

security team comprised of former UK military

We have established ourselves as a proven

coupled with single or multiple voyage basis.

Maritime security provider and it is this that we

The different levels of insurance are dependent

are endeavouring to develop further and create

upon:

a long-term business model.

• Freeboard

arrangements with the governments of Sri Lanka, Oman and Egypt, and it is hoped that we can further expand into the Maldives, Seychelles and Mauritius.

personnel. We provide client contract flexibility

Our unique ethos and our MO is to keep

• Cargo

things simple and uncomplicated for shipping

• Route

entities to understand. The way we achieve

• Size of vessel

this is to be transparent, open and honest in

• Whether armed or unarmed.

A full client list, with references, can be

our methods by remaining firm to our standard

Having armed teams on board your vessels is

operating procedures, and it is this that will

dependent upon your flag state; please consult

Tel: +442076921718

create long-term business relationships with

both with your PandI club and Flag state for

+441884242125

new and existing clients. It is this core element

approval prior to our teams boarding your ship.

+441884258377

that has enabled us to remain competitive,

REDfour and Marsh are pleased to be able

flexible and almost bespoke, as each client

to bring this service to the shipping industry, and

58

theBaltic Winter 2010 www.thebaltic.com

provided upon requested. Please contact:

9 Bentinck Street, London W1 United Kingdom operations@redfour-group.com

Corporate viewpoint Redfour security Group

theBaltic Winter 2010 www.thebaltic.com

59

REDfour Security Group

A global provider of cost effective security solutions.

REDfour was created in 2004 by former UK SF officers and NCO’s with the intention of providing a truly global security provision to companies involved in Oil & Gas exploration, remote site operations such as seismic surveys, TV & News companies, Construction and NGO’s. Since those early days in Baghdad, we have undertaken security in a wide range of environments and with a diverse and changing clientele.

9 Bentinck Street, London W1 United Kingdom

Tel: 0207 692 1718 and enquiries@redfour-group.com

Oxford Analytica

Stability – for now Oxford Analytica looks at the prospects for the oil market in 2011 and beyond

E

stimates for global oil demand growth

capacity is now estimated at 5.09 million b/d

technology development, despite widespread

in 2010 have risen over the course of

and is expected to rise to 5.19 million b/d in

international opposition. The risk of a pre-

the year, driven primarily by Chinese

2011.

emptive Israeli strike on Iran’s nuclear facilities,

demand. Forecasts from OPEC at 1.1

Estimates of the combined increase in OPEC

or internal instability in Tehran, mean that the

million barrels per day (b/d) and the International

Natural Gas Liquids and non-OPEC supply

country remains a major flashpoint for the oil

Energy Agency (IEA) at 2.1 million b/d in October

in 2011 vary, but are generally just below the

market. Its own level of production, but more

are, respectively, 200,000 b/d and 700,000 b/d

expected increase in global oil demand by about

so its ability to disrupt transit through the

higher than their January estimates. Almost all of

200,000-400,000 b/d. The choices for meeting

Straits of Hormuz, could affect almost 20% of

this demand growth comes from the non-OECD.

this shortfall are an increased call on OPEC

For 2011, OECD demand is expected to fall,

supply, which has plenty of spare capacity, or a

but this will be more than compensated for by

drawdown from inventories.

world oil supply.

• Iraq: A deterioration in Iraq’s security environment could impact current production,

the expansion in developing-world consumption.

or cause international oil companies to

Demand growth forecasts from the US Energy

withdraw, implying at the least a delay to

Inventories

the future expansion of Iraqi export volumes.

have remained largely static at around 1.0-1.4

According to the IEA, OECD industry stocks

The country faces a significant possibility of a

million b/d.

in August amounted to 2.79 billion barrels,

major environmental disaster due to the bad

Information Administration (EIA), IEA and OPEC

state of its oil infrastructure.

If economic recovery remains on track,

representing forward cover of 61.1 days, their

OPEC should have little difficulty maintaining a

highest level since August 1998. Reporting

• Nigeria and Sudan: Both Nigeria and

floor to oil prices, leaving the balance of price

bodies suggest a sharp stock draw in September

Sudan have simmering internal conflicts that

risk on the upside in 2011.

(contrary to the seasonal norm), reflecting the

might result in oil production deterioration.

strengthening of oil demand. However, many

In Nigeria, a presidential election in April

factors indicate that the market is well supplied:

could impact the security environment in

• The market structure has remained resolutely

the Niger Delta, its key oil producer region.

According to the EIA, global crude oil

in contango – prices for forward delivery

Sudan faces a referendum on secession in

consumption will hit a record 87.44 million b/d

dates are higher than for earlier delivery

2011, which could spark renewed violence

in 2011, some 1.14 million b/d higher than the

dates.

between north and south.

No 2011 price spike

previous record in 2007. This former peak was

• Stocks in developing countries, notably

followed in mid-2008 by record oil prices, which

China, have also been on a rising trend.

OPEC

reached an unprecedented $147 per barrel.

A second such spike is, however unlikely in

The cartel is currently producing much more

2011. While demand fell in 2008 and 2009, new

Potential shocks

than its stated targets, but these were set in

production capacity, prompted by the earlier

As a result, there will be adequate crude supply

January 2009 and have little current relevance.

rises in the oil prices, was coming on-stream.

in 2011, unless a major shock occurs. This could

Had oil demand continued in 2008-09 at the

come from a variety of sources:

– has stabilised over the course of 2010. The

average annual pace seen from 2001-07, spare

• Iran: Tensions persist over the country’s

price of front-month light sweet crude contract

capacity might have produced close to 1 million

nuclear programme. Tehran is proceeding

traded at the New York Mercantile Exchange

b/d, a thin margin. As it stands, global spare

with

missile

(NYMEX) is at roughly the same level as in the

theBaltic Winter 2010 www.thebaltic.com

61

uranium

enrichment

and

OPEC production – on a rising trend in 2009

Oxford Analytica start of the year. Nonetheless, the average price

Demand and supply

wide. None of these will materially affect the

for the first 10 months of 2010 was $78.09 per

Although global growth will provide upward

supply/demand balance of the oil market in

barrel, much higher than the $59.07 per barrel

impetus to oil prices in 2011, this will be largely

2011, but their progress, or lack thereof, may

recorded in the same period in 2009. This

offset by the strong supply-side surplus of

well start to change investor perceptions of

indicates that longer-term factors – concerns

excess capacity and Saudi Arabia’s current

future market direction.

over future supply shortages and trust in OPEC’s

commitment to a trading band for crude of

Although a number of factors suggest

willingness and ability to withdraw production

between $70-80 per barrel. Evidence of a

some weakness in oil markets, expectations

from the market, should it need to do so – have

sustained drawdown in stocks in the latter half

of a long-term increase in developing-country

outweighed shorter term factors, such as the

of the year would lend support to the idea that

consumption will continue to sustain prices in

relative abundance of available crude.

surplus capacity will start to erode.

2011. While OPEC will act to prevent prices

However, OPEC specifically, and the oil

The counterweight will be progress on the

market more broadly, has to contend with Iraq.

ground in Iraq towards increasing both crude

Baghdad has agreements with international

production and the capacity to export it. If rising

oil companies that in theory should see the

Iraqi output starts to look likely from 2012-14,

country’s oil output rise from about 2.3 million

sentiment regarding both a tightening market

b/d now to 12.5 million b/d within six to seven

and OPEC’s ability to act in concert would be

years. This is unlikely, due to the infrastructural

weakened.

falling below $60 a barrel, physical availability is likely to stop them spiking over $100.

challenges faced by the country’s oil industry.

Disruptive technologies may also begin to

Yet an increase of half that amount may be

have a higher impact on sentiment in 2011.

achievable over the six to seven year timeframe.

Electric car models are expected to come to

This will cause tension within OPEC, evident

the market in increasing numbers. Progress

from the recent bout of reserve inflation, as it

may be seen on second-generation biofuels.

Report by Oxford Analytica

must somehow reintegrate a reluctant Iraq into

Natural Gas Vehicles may start to look like viable

www.oxan.com

its quota system.

alternatives to oil, particularly in the US market,

© 2010 Oxford Analytica

where the gas-to-oil spread is exceptionally

E-mail: dgautrey@oxford-analytica.com

Demand and supply are likely to be well balanced in 2010

62

theBaltic WInter 2010 www.thebaltic.com

16th INTERNATIONAL EXHIBITION & CONFERENCE FOR TRANSPORT AND LOGISTICS

www.transrussia.ru/eng

TRANSRUSSIA 26–29 APRIL 2011 EXPOCENTRE • MOSCOW • RUSSIA

Official Support •

Ministry of Transport of Russia (incl. railway, road, sea/river and air transport agencies)

•

Federal Customs Agency of Russia

•

JSC Russian Railways

•

Freight Forwarders' Association of Russia

•

EuroAsian Transport Union

•

The Guild of Freight Forwarders

Enquiries Julia Wocka-Gowda, Senior Event Manager T: +44 (0) 207 596 5188 E: julia.gowda@ite-exhibitions.com

TransRussia moves to

a larger pavilion in 2011

Corporate viewpoint LCH.Clearnet Ltd

LCH.Clearnet steels the market L CH.Clearnet, the leading clearing house

risk management for traders

in the dry bulk FFA market, recently

in this market. Taking the Dry

expanded its portfolio of freight relat-

FFA market as an example of

ed products to include the increasingly

the growth in clearing, when

important steel market. In conjunction with

LCH.Clearnet launched its

Freight Investor Services, LCH.Clearnet has

FFA clearing service in 2005,

launched a clearing service for five steel deriva-

around 5% of the market

tive swap contracts.

was cleared, rising to around

OTC v Cleared Dry FFA Market Share

100%

80%

60% OTC

40%

Cleared

Steel swaps are a vital instrument for traders

25% in 2007 and now, five

who are exposed to freight, iron and coal.

years on, over 95% of the

LCH.Clearnet offers OTC Clearing for all these

market is cleared. Clearing

markets, and has now added the missing

is now seen as an essential

component in the chain for creating a virtual

ingredient for the emergence

steel mill for traders.

and growth of any derivatives

contracts are settled against the Cleartrade China

market.

Steel Indices provided by Umetal.

counterparty risk and concerns over bilateral

The marketplace

widely accepted and recognised TSI Iron Ore

counterparty credit lines on everyone’s minds.

Steel plays a fundamental part in the industrial

index, against which LCH.Clearnet’s cleared Iron

Furthermore,

being

world, and is the world’s second largest

Ore swaps are settled.

discussed fervently by regulators on both sides

commodity market after oil. It is 15 times larger

The Cleartrade China Steel Index (CCSI)

of the Atlantic, the importance of clearing can

than all the other major metal markets in terms

uses data submitted to Umetal by steel industry

only continue to grow. There is now a strong

of production. Global steel production in 2000

participants in 25 of the largest Chinese

need for cleared market-specific steel swap

was 848 million tonnes and estimates for 2010

cities involved in steel products trading. The

China 15% Rest of World 85% products to enable more accurate hedging and

China 46% Rest of World 54% are 1.4 billion tonnes, with an estimated value of 46% 54%

participants span the entire Chinese domestic

Clearing has become an increasingly hot topic

15%

with

new

regulations

85%

Rest of World 85%

China 46% Rest of World 54% 46% 54%

Source: World Steel Association

Source: World Steel Associa<on

2010 Crude Steel Output 1,399 Million tonnes (annlsd)

Jul‐10

Sep‐10

May‐10

Jan‐10

Mar‐10

Nov‐09

Jul‐09

Sep‐09

May‐09

Jan‐09

Mar‐09

Nov‐08

Jul‐08

steel industry and include producers, traders,

end users and stockists.

Key to future growth 2010 Crude Steel Output is the continued The five contracts are cleared alongside industrialisation of China.1,399 Million tonnes (annlsd) While global crude steel production increased by 44% between

LCH.Clearnet’s FFA service, and are immediately

2000 and 2009, Chinese production grew by

available to all LCH.Clearnet freight clearing

342% in the same period.

China 15%

Sep‐08

TSI already provide LCH.Clearnet with its

over $900 billion.

2000 Crude Steel Output 828 Million tonnes

May‐08

Jan‐08

over the last few years, with the management of

Mar‐08

Nov‐07

Jul‐07

0%

Sep‐07

20%

The steel industry is highly segregated and

members. Steel swaps can be registered for China 46%

clearing into LCH.Clearnet by any OTC Brokers

Rest of World 54%

there are numerous steel products available.

who sign up to the service. The smallest contract

However, broadly speaking, steel products can

size, or lot size, that can be cleared is 20 metric

be either classified as flat products, which are

tonnes, and all contracts cover monthly swaps

used in the automobile, shipping and white

out to a time period of 35 months. Due to the

goods industries, and long products, which are

high correlation of steel prices with iron ore,

Source: World Steel Associa<on

used in the construction industry.

coal and freight, market participants clearing any combinations of the contracts in the steel

The service

mill complex will benefit from margin savings

LCH.Clearnet has launched five steel swaps

between the products.

contracts – three Hot Rolled Coil (HRC) contracts, China 46% Rest of World 54%

for Northern and Southern Europe and China, a

For further information please contact Isabella.

Chinese Rebar contract and a Scrap contract. All

Kurek-Smith@lchclearnet.com

five contracts are cash settled. The 2 European ones are settled against the TSI index, as is the Source: World Steel Association

scrap contract. The Chinese HRC and Rebar

Source: World Steel Associa<on

64

theBaltic Winter 2010 www.thebaltic.com

FFA

Clearing houses cut rates, expand cover A round-up of news from the derivative sector

C

ompetition between clearing houses

In its own statement a week later, NOS

looking to attract customers for their

claimed that its new fee schedule for dry bulk

freight clearing services appears to

freight derivatives was the most competitive on

be intensifying, as both NOS and

the market. They introduced a series of changes

LCH.Clearnet recently announced considerable

to fees including:

reductions in the amount charged to clear freight

• Clearing fee for Cape FFAs is reduced to

derivatives. LCH announced a restructure of its clearing fees, to include discounts of up to 40%, on 1 November; NOS announced cuts in its own charges just over a week later.

According to a statement from LCH,

$12 per lot; • Spreads and option strategies are discounted by 50%; • Full size FFA deals are discounted by 50%; • Monthly volume discount up to 40%.

the new fee structure is designed to reward

A 50% rebate on full size calendars, half

customer loyalty, recognises the economies of

years and quarter trades was introduced in order

scale available in clearing, and ensures that the

to encourage large FFA clips, NOS said. The

benefits of these economies are passed on to

spread rebate is changed to 50% and the option

clients.

strategy rebate of 50% is continued.

Strong volumes in the capesize timecharter

In addition, NOS introduced a monthly

contract enabled a fee cut of 20% for this

volume discount scheme where the discount

contract, LCH said. In addition, a tiered fee

increases up to 40% on volumes above a set

structure in which increased volumes result in

threshold. The scheme – which applies to

discounts of up to 40%, will also be introduced

all vessel sizes – offers significant discounts,

for all contracts.

allowing active traders to clear capesize FFAs

Isabella Kurek-Smith, Director, head of freight

for $3.60 per lot, for example. “This is by far

and energy markets at LCH.Clearnet said: “This

the lowest clearing fee in the dry market and a

move demonstrates our commitment to the

proof of our support to the liquidity providers,”

freight market. We recognise that our market

according to an NOS spokesman.

leading position is due to the loyalty of our clients and our new fee structure is designed to ensure we reward this. Our quasi utility model

Clearing houses have

enables us to deliver market leading services

slashed rates

with sustainable cost effective fees and to pass the benefits of market growth back to the users.“

theBaltic Winter 2010 www.thebaltic.com

65

Corporate viewpoint Trayport

Trayport links energy and freight markets Trayport and runs the company at arm’s length.

complexity of trading and increase liquidity.”

Around 40% of Trayport’s customers currently

Trayport already offers straight through

use the platform for freight derivative trading.

processing relationships to LCH Clearnet, NOS

Trayport’s Trading Gateway product offers its

and CME, the main clearing houses for freight

freight customers, including SSY, Imarex, GFI

derivatives.

and ICAP, integrated wet and dry bids and the

At a time of huge change for the freight

system is designed to sit at the centre of trading

derivatives markets and a range of screens and

operations of any energy or commodity trading

rival trading systems being developed, James

company.

Davies believes that many of these systems

Underpinning Trayport’s philosophy is an

are trying to run before they can walk. “The

understanding of the strength of a hybrid

market seems to want to go from A to D in

screen and voice broker business model. The

one step,” comments Davies. “We believe that

company’s software has helped brokerage

there needs to be much closer integration and

desks grow in all the markets it serves.

talks with FFA brokers for the market to reach

According to James Davies, Trayport’s Head

its potential. Our system allows brokers to put

of Sales & Client Services, the key benefit of the

in exclusive screens for their customers and to

Trayport system for the freight markets is the

offer them hybrid voice and electronic trading.

fact that its screens are already being widely

This market has the potential for huge growth,

used by energy traders and the emerging freight

but newcomers to the freight derivatives market

derivatives markets would therefore do well

are not going to screen trade immediately. They

to sit alongside them. Rather than the freight

need to get comfortable with FFAs first and will

market reinventing the wheel and picking up

initially undertake voice trading.”

the infrastructure development costs of brand

He adds that the continued development of

rayport is probably one of the big-

new software and trading systems, Trayport

the coal and iron ore market will make an impact

gest businesses in the freight market

believes that the freight market can benefit

on the growth of the electronic freight derivatives

which you have never heard of. For

greatly from riding on the back of the physical

market.

some Trayport is simply the logo at

commodity market’s use and development of

James Davies says that he can also see

the bottom of their screen, but the company’s

Trayport over the years. The company believes

electronic trading playing a big part in the future

technology underpins 13,000 trading screens

that there should be no additional or incremental

development of the physical market. “Brokers

around the world integrating energy trading with

cost for energy traders to add another market

handle lots of partial transactions at the same

freight derivative activity. Founded in 1993, the

to their trading portfolio, by accessing it directly

time, their workflow is often all over the place

company began by creating technology initially

or hooking it up to their back office over the

and there is little transparency in the way in

used by energy inter-dealer brokers as a price

Trayport network.

which desks make trades. Our technology has

T

the ability to harmonise work and bring these

dissemination platform. Today the the company

“Since our establishment 15 years ago,

is essentially a platform consolidator for cross

the European energy community has invested

asset trading covering commodity markets as

heavily in our platform enabling us to develop

With around 90% of Trayport’s customers

diverse as coal, freight, gas, power and carbon.

a scale of offering and support which no stand

active in seaborne transport in some shape or

It does not take a cut of the deals which flow

alone freight screen can ever hope to offer,” says

form, Trayport believes that it offers the key to

through its systems, but simply provides the

James Davies. “Our system supports straight-

unlocking the FFA market’s untapped potential.

stable technology which underpins these trades.

through-processing, implied price calculation,

functions together.”

Bought by global inter-dealer broker GFI

automated trading and allows integration with

For further details, please contact:

Group in 2008, Trayport’s services are used by a

third party analysis tools, internal platforms, web

James Davies

range of top-tier clients including Bunge, Cargill,

casting and so much more.We believe that the

Tel: +44 (0)20 7960 5500

Citibank,

Evolution

dry freight market can benefit from all of this

Email: james.davies@trayport.com

and many more. GFI itself is a customer of

added value. Quite simply we can reduce the

www.trayport.com

66

theBaltic Winter 2010 www.thebaltic.com

ManFinancial,

Prebon,

FFA contracts already cleared against its index. But

NOS’ new clearing fee schedule for dry FFAs is:

with around 1 billion tonnes of iron ore shipped Segment

Standard clearing

Spreads and full

fees

size

Volume discount:

Actual fees if

above 2,000 lots

qualified volume

per month

and full size

this year alone, the potential futures market is many multiples of this.”

Market participants also welcome the

Cape

$12.00

$6.00

$3.60

introduction of cleared iron ore options. John

Panamax

$8.00

$4.00

$2.40

said: “We expect a growing demand for risk

Supra

$8.00

$4.00

Handy

$5.50

$2.75

40%

$2.40 $1.65

Wright, head of GFI’s London iron ore desk, management hedging tools in the iron ore market in the near future. Introduction of cleared cash settled iron ore options will add value, and will complement and add liquidity to the existing

Justin Bozzino, CME Group’s director of energy, says that as the FFA market has seen a drop in

futures market. We support this development in

overall volumes in the past two years, customers are more focussed on the cost of trading. CME’s

the market.”

own rates are as follows:

Spectron launches fuel oil desk Commodities brokerage Spectron has extended its market coverage to include European fuel oil.

The company launched its activity in the market at the beginning of September with a ninestrong team of experienced brokers, previously employed by MF Global. The team is headed by Danny Fenn.

“This is a very exciting hire for us – it is a highcalibre team with a great name, market presence and years of experience, and so will be a perfect

LCH.Clearnet clears coal swaps

base its new swap contracts. Argus has over 40

fit for our existing European and US oil products

years’ experience of bringing transparency to the

desks,” said Simon Davidson, managing director

LCH.Clearnet also announced in September

energy markets so we are delighted that LCH.

of Spectron Group (Europe and Asia).

that it has launched the clearing of OTC coal

Clearnet is using our API 2 and API 4 indexes to

swap contracts, which it sees as a natural

help bring more competition to clearing”.

“We are delighted to be joining Spectron – and are now part of not only the most energyfocused of all the major global brokerages, but

complement to its dry freight clearing services.

one which also has a fantastic reputation for

The contracts are monthly cash settled swaps based on Rotterdam in the Netherlands

Iron ore clearing

customer service; it is great news for us and for

and Richards Bay in South Africa, traded in

In a move to expand its own clearing services,

our clients,” said Fenn.

multiples of 1,000 tonnes.

NOS launched clearing for iron ore futures and

The contracts are to be settled against the

option contracts at the beginning of December.

underlying API 2* and API 4* index prices as

It describes the service as a “natural extension”

published in the Argus/McCloskey’s Coal Price

to its clearing services for freight forwards

Index Report.

and options. While LCH.Clearnet already offers

Kurek-Smith:

“With

the

coal

market

clearing for iron ore swaps, NOS says this is the

continuing to grow rapidly, introducing coal

first time that a full suite of financial contracts has

swaps to our broad range of existing OTC

been available to the market.

commodities, which include emissions, freight

The contract offered is CFR China, 62% Fe

and iron ore swaps, is a valuable addition.

Fines, delivered Chinese Port. Contracts will be

Providing our specialist OTC clearing services

settled against The Steel Index (TSI). The future

will attract more players, which will in turn

contract will be monthly cash settled, while the

enhance liquidity and transparency and support

option contract will be a monthly cash settled

the ongoing development of the international

Asian style option.

coal derivatives market.”

“The international coal market depends on

Steven Randall, managing director of The Steel Index, commented: “We are delighted

the API 2 and API 4 coal indexes for spot, term

NOS has selected TSI’s iron ore index for

and derivative contracts” said Adrian Binks,

settlement of its contracts. OTC iron ore trading

chairman and chief executive of Argus Media.

is one of the fastest growing commodity

“The vast majority of the world’s traded coal

markets and NOS’s entrance helps to meet the

derivatives are settled against the API 2 and

growing customer demand. TSI’s iron ore prices

API 4 indexes so LCH.Clearnet has selected

have been adopted as the industry standard

the market’s leading benchmarks on which to

worldwide, with over US$3 billion of financial

LCH.Clearnet has launched OTC coal swaps

theBaltic Winter 2010 www.thebaltic.com

67

Corporate viewpoint Cleartrade

Cleartrade The electronic marketplace for OTC cleared commodity derivatives

C

Ltd

of the OTC derivatives market. They have

filter technology, risk management software and

(Cleartrade Exchange), headquar-

demanded change in the regulatory regime,

a market operations organisation available to

tered in Singapore, is to operate

which will require OTC clearing at clearing

trading and broking members of the Exchange.

as a Recognised Market Operator

houses, regulatory capital set aside for each

The increase in OTC clearing enables

(RMO) authorised by the Monetary Authority of

bilateral, and a requirement for markets to trade

brokers and traders to execute transactions

Singapore (MAS) for global participants in the

electronically to provide better transparency and

anonymously in a high-growth market where

OTC commodities markets, in response to the

discovery of market depth.

the sole use of telephone brokers is becoming

leartrade

Exchange

Pte

The initial portfolio from Cleartrade Exchange

increasingly inefficient. By capturing the core

will enable a revolutionary new way to trade

interests of both brokers and traders Cleartrade

dry bulk Forward Freight Agreements (FFAs),

is able to offer a best-of-both-worlds solution to

Changing regulation in the OTC derivatives marketsâ&#x20AC;?

Iron Ore Swaps, Steel Swaps and Fertilizer

existing participants and newcomers alike.

derivatives. Additionally, we will expand in

An increasing number of end-users are

Financial policymakers globally are now seeking

response to market demand with other OTC

entering the OTC cleared market and have for

to corral risks associated with over-the-counter

Cleared Derivatives. The venue will list a complete

some time asked for an effective electronic

(OTC) derivatives. It is anticipated that increased

suite of OTC cleared contracts for each of these

solution that combines the skill of their brokers

centralisation via clearing houses will generate

asset classes and are working closely with LCH.

with a level of price transparency that is simply

greater transparency and eliminate many risks

Clearnet in London, which provides clearing and

not possible in a telephone brokered market.

associated with financial systems. In particular,

settlements of those derivative contracts.

changing nature of the OTC market.

An existing dilemma for brokers, in these fast

since the credit crisis of 2008-2009, the US and

Cleartrade Exchange provides a sophisticated

changing markets, is how to strike a balance

European regulators have pushed for reform

end-to-end electronic trading platform, credit

between â&#x20AC;&#x2DC;owningâ&#x20AC;&#x2122; an order without having to

68

theBaltic WInter 2010 www.thebaltic.com

Corporate viewpoint Cleartrade

Cleartrade fully recognises the importance of the intermediary brokers and the role they play in facilitating and lubricating the markets and executing trades for banks, traders, shipping companies and end users. The design of the Cleartrade platform enables multiple brokers and principals to interact seamlessly, whilst providing a new level of market transparency to all participants.

co-broker with competitors and that of having

– can flow instantly through to participating

of liquidity is obtained from the start. We are

to use electronic platforms on which several

clearing houses.

poised to expand from this initial liquidity base

brokers are able to display their orders without cannibalising their own business.

Pre trade transparency is provided to traders via having multiple broker prices on the same

Cleartrade solves this dilemma by enabling

screen, whilst post trade transparency is provided

a combination of firm orders, Indicative order

to both brokers and traders alike through a

Interests (IoIs) and ‘block traded’ transactions

‘consolidated tape’ displaying all concluded

whilst fully segregating brokers. This means

transactions. This level of transparency does not

brokers can distribute firm and indicative prices

exist in the current state of the OTC commodity

on a single platform to multiple traders without

market and we believe it will be a significant

displaying those orders to other brokers using

attraction for market participants from the outset.

the same system. At the same time, brokers are

Cleartrade Exchange sought and secured

able to block trade pre-matched trades via the

support from the market in general, and Freight

trading system for the fastest execution.

Investor Services (FIS) – one of the largest FFA

and attract other brokers and traders as we develop markets.

Not just a central screen; a Global Execution Venue built by the market for the market.

With straight through processing of trades

and Iron Ore derivatives broker by volume – who

directly to the clearing house via a credit filter,

has given its full backing to the venue. Having

controlled by the trader’s General Clearing

secured the support of the FIS broking teams

Tel: + 65 (0) 6372 9566

Member, each trade – whether hit or lifted on

in using the Cleartrade platform for execution

Email: info@thecleartrade.com

screen or negotiated off-line and block traded

and block trading, we believe a healthy level

www.thecleartrade.com

theBaltic Winter 2010 www.thebaltic.com

69

Ship finance

Is finance moving East?

The credit crunch could herald a major shake-up in funding sources

T

wo years ago, speaking at the ITIC

currently good for those companies that have

Forum,

market

a good enough standing to take advantage of

crash was beginning to gather pace,

them. Maersk, for example, arranged a $6.75

Clarkson’s head of research Martin

billion syndicated revolving credit facility with a

Stopford quoted Zhou En-lai’s famous remark

selected group of 20 banks in September, taking

about the French Revolution – that it was too

advantage of favourable conditions in the global

early to tell what effect it would have. Two years

bank loan market to reduce its financial costs.

as

the

shipping

on, asked about the effect of the credit crunch

“We are very pleased with the terms and

that coincided with the shipping crash, banker

structure in our new facility and the process with

Paul Barnes of BNP Paribas Fortis, has much

the banks participating. Our banking group is

The next ship finance powerhouse?

consolidated, the maturity profile of our finance

the same reaction.

This is due to:

commitments extended and cost related to the

of the credit crunch will be, as we’ve seen

• The need to shrink balance sheets: this will

facility reduced. We received strong support

over the last few months, and indeed days,”

be an ongoing issue as Basel III regulations

from our global relationship banks that have all

he said. One thing is for sure; there will be a

make capital adequacy requirements more

supported the transaction,” says Jan Kjaervik,

lot of consequences to be faced as a result

stringent. Although Basel III does not come

head of group finance and risk management at

of changing regulation in the market and the

fully into force until 2019, banks will need

Maersk.

breakdown of many existing relationships.

to begin adjusting their lending portfolios. In

“It is still too early to tell what the effect

For shipping in particular, many of the existing

addition, EU requirements have already led

lenders are European banks. However, loans in

to some banks having to restructure their

Could China step in?

general are made in dollars, and over recent

lending; for example, RBS were required by

However, while funding from traditional sources

months, obtaining dollar funding has been a

the EU to cut their balance sheet in order to

may be harder to find, Barnes says that Asian

major problems for banks who do not have a

qualify for bail-out funding.

banks are increasingly taking up the slack.

large scale retail dollar deposit base – which is to

• Refocusing of banking business: several

The Chinese government is also beginning

firms are looking to reduce their shipping

to take a hand in shipping finance directly,

portfolios;

&

and could become an important player in the

Leicester and Lloyds, are looking to exit

finance market. This April, Chinese President

Traditional finance slows

shipping altogether.

Wen announced the establishment of a $5

While there has been a lot of talk about the

Another major change that will impact on

billion shipping fund to facilitate the construction

difficulty in getting hold of finance in the last

shipowners is that lenders are looking for much

of ships in China by Greek owners. In June this

couple of years, in shipping as a whole we

shorter maturity profiles on their loans – five or

year, the China Development Bank agreed to

are seeing lower levels of loan demand, he

seven years, rather than the 10 or 12 that was

provde $150 million of funding for two tankers

continues. The reduction of credit availability

usual before, Barnes says.

ordered from Chinese yards by Piraeus-based

say, most European banks – Barnes says.

some,

including

Alliance

coincided with the crash in rates, and increasing

XRTC. Both China’s need to support its own

awareness of the record size of the orderbook

shipbuilding industry and its aims to expand

has reduced the call for financing as shipbuilding

Credit for some

its role in the global shipping market suggest

contracts fell off. That said, there has been a

Despite a reluctance on the part of some

that these are just the first moves towards what

reduction in lending from traditional suppliers.

bankers to lend, however, credit terms are

could be a major shift of ship finance to the East.

theBaltic Winter 2010 www.thebaltic.com

71

Ship finance

Check your terms New lease accounting proposals could have serious repercussions for shipping

S

hipowners and charterers involved in

under the current model. The amount may not

there may also be a residual asset, reflecting

operating leases will need to look

be that large, but this will decrease profitability

the rights that will return to the owner at the end

closely at recently published propos-

in the early years of a charter and increase it in

of the charter. For the charter to be considered

als for a new accounting standard for

later years.

equivalent to a sale, this asset must by definition

leases, according to shipping accountancy firm

“Even companies with short-term charters,

Moore Stephens. The new regulations could

one year or less, will see some effect. The

“In other cases, a different approach is

have a major impact on the way that timechar-

same basic treatment will be required. The

needed. Where the charter is not equivalent to

ters are valued – and consequently, on the bot-

only real difference is that they will be able to

a sale, the owner will continue to record the

tom line of the company as a whole.

use the undiscounted values. This means the

vessel. In addition, the owner will record an asset

change will not affect profits, but will still change

for the present value of the amounts receivable

ratios and reported borrowings. This assumes

under the charter and a liability representing the

Changes for charterers

you know what the term of a charter is. The

obligation to provide the vessel for the charter

The proposals have been published by the

proposals also deal with extension options, and

term. Again, the impact on net assets will initially

International Accounting Standards

Board

stipulate that you have to determine the most

be small. But ratios change, liabilities increase,

(IASB), and have been approximately 15 years

likely total term. This could change, with all the

and, over time, profits will be allocated to

in the making. Moore Stephens partner David

attendant accounting consequences.

different periods. In terms of recording of profit,

have a relatively low value.

Chopping says: “The proposed changes will not

“Another problem is that a timecharter is

this will have the opposite effect to that for a

make that much difference to current finance

a contract for the use of a vessel, but also

charterer, as profits will be slightly higher in the

leases. It is those involved in operating leases

contains a service component. Every timecharter

earlier years and lower in the later ones. Owners,

who will really be affected. Take the position of

will need to be split between a notional bareboat

meanwhile, do have the option of ignoring short-

a company with a five-year time-charter. At the

charter, which will be recorded immediately,

term charters, and treating them on a near-cash

moment, this is almost certainly an operating

and the service element, which will continue

basis as under the current standards.

lease. The charterer does not record any assets

to be charged as incurred. Bareboat charters

or liabilities, and deals with charter payments

themselves will be much easier.

“Both owners and charterers have a lot of work to do to assess the impact that these

as they are incurred. Under the new proposals,

changes might have on their accounts. The

such a charter will give rise to both an asset and

proposals will probably not give rise to a

a liability. The asset is the right to use the vessel

Impact on owners

standard that comes into force before 2013. But

for five years. The liability is the present value of

“The owner is in a slightly different position.

as the changes would need to be reflected, with

the charter payments. While, initially, this makes

Whilst the operating and finance lease distinction

a few simplifications, in the opening balances of

little difference to net assets (as they are the

is being abolished, a similar distinction is being

the comparative period, that actually means the

same) it will increase the reported borrowings

retained for lessors only. Where a lease or

first relevant date is probably 1 January 2012 –

and change the ratios.

charter is akin to a sale – as with a current

not much more than a year away.”

“Over time, there will be changes in both

finance lease – the treatment does not change

profits and net assets from those currently

that much. In place of the vessel, the owner

reported. Depreciation and financing charges

records a debtor, being the present value of the

will follow a slightly different pattern to that

charter payments receivable. In some cases

72

theBaltic WInter 2010 www.thebaltic.com

Communications

Upping the bandwidth Data demand drives forward maritime communication

Even in the middle of the ocean broadband is a priority

The ‘always-on’ option

exploring the option of implementing more

One solution that is on offer

said Geraldine Pang, BW Maritime IT general

to vessels is the high end

manager. “The other motivation is our desire to

VSAT (Very Small Aperture

attract and retain seafarers by offering ‘home

Terminal) broadband, which

comforts’ such as Internet broadband services

offers always-on connectivity

for them to keep in touch with their friends and

comparable to land based

families on shore.”

corporate applications onboard our vessels,”

connectivity.

Caprock has also been particularly successful

Although this solution has

in the Greek market with its local partner Setel,

been commercially available

having secured contacts for its SeaAccess

for a number of years, it still

Communications service with a number of

only accounts for a small

owners in the first half of 2010 including Remi

share of the market – albeit

Maritime and Diamlemos Shipping. The latter

a lucrative one. However,

is a 60-month fleet contract that will see the

providers such as Caprock

C-band solution installed onboard nine vessels.

internet

are seeing a spike in interest fuelled by data intensive applications and the desire

Cruise demand increases

for fixed costs for accounting

Another company that is reaping the benefits

purposes.

from the increase in data transmission is MTN,

The

US-headquartered

which is extremely well known in the cruise

provider signed a contract

sector. The company currently offers its VSAT

in June with Norway-based

services to about 200 commercial ships and

BW Shipping to equip its

offshore platforms for customers such as Teekay

100-plus vessel fleet with

Shipping. “There is a definite growth for VSAT

SeaAccess’ always-on VSAT

services in the commercial market but we

services, following on from

have the advantage since MTN owns all its

he increasing use of data hungry appli-

a nine-month testing period where the product

infrastructure, unlike many of the new virtual

cations to improve efficiency through

was compared against the existing ‘pay-by-the-

network operators,” says Brent Horwitz, senior

near-constant communication between

data rate’ communication solution and emerged

vice president of sales at MTN, adding that the

vessels and onshore offices has meant

superior. Caprock will provide the operator’s fleet

company owns eight teleport facilities. “Even

that owners and managers are looking to satel-

with voice over IP (VoIP), access to the corporate

with the advances in compression technology,

lite telecommunication technology to provide a

network and real-time monitoring, reporting

some software applications will require high

cost effective solution to their needs. In addi-

capabilities and 24/7 helpdesk support. It will

bandwidth and we offer our clients dedicated

tion, as demand returns to the shipping world,

also handle network design and equipment

bandwidth rather than contended bandwidth like

bringing with it a need for skilled seafarers, crew

installation and commissioning, and issue

many of our competitors.”

comfort is once again a priority for shipmanag-

the crew with pre-paid calling cards offering

ers. Increasingly, they now need to balance low

competitive rates.

T

communication costs with staff use of e-mails and VoIP programmes such as Skype.

“We are always looking to improve our communications

Horwitz believes that the service will see escalating growth despite the high price tag.

technology

and

“We’re not that much more expensive than

we’re

traditional satellite services, but our quality is

theBaltic Winter 2010 www.thebaltic.com

73

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Communications much higher, so you get a lot more for the price.” He also feels that customers will appreciate the combination of transparent, fixed pricing and low maintenance – as vessels lease the equipment from MTN, which then handles all the repairs and servicing.

Terminals are expected to boast a lifetime of seven to ten years.

Cost implications However,

not

all

companies

are

convinced of the immediate appeal of VSAT technology. “There are serious money entering

restrictions the

VSAT

to

companies

market,”

says

James Collett, Inmarsat’s new director of maritime business. The company believes that it presents users with a viable alternative through its Fleet Broadband service, which is available in three tiers: FB500, FB250 and, most recently, FB150. “What we are doing with Fleet Broadband is allowing users to enter the broadband market with the same speed as before.”

Competition between satellite providers is increasing

That said, the firm is active in the VSAT market through Stratos Global Corporation,

five years as users are migrated over from the

bandwidth available to users up to 8mbps,”

which was acquired in April 2009. Although

Inmarsat Legacy services such as its Mini-M and

Dan Mercer, Iridium vp and gm for Europe,

Stratos is now a wholly-owned Inmarsat

Inmarsat-B services. “Many users are still using

Middle East, Africa and Russia. “This is a game

subsidiary, it continues to be an independent

our fleet service. That is still our biggest earner

changer and we will be launching new IP-based

distributor of its own products (such as three

and accounts for 20% of our revenue. This is

devices to access this higher bandwidth as

VSAT services: HughesNet, OceanVSAT and

still a growing service but it is slowing down

our existing terminals can only go up to 128

StratosITek) and those of competitors such as

compared to our Fleet Broadband service which

kbps. However, the new constellation will be

Iridium. Inmarsat, through distributors Stratos,

we see as being attractive to all our users in the

backward-compatible so that existing users

Singtel and Vizada, is also targeting other

long term,” Collett says. He adds that the market

can continue using their terminals – though

sectors such as oil and gas with the launch

tends to be slow adopting new technology, with

they will have to buy the new hardware to avail

of its new global handheld satellite phone, the

a few visionary shipping companies setting the

themselves of the higher speeds.”

IsatPhone Pro.

trends for other owners.

The diversification into the higher bandwidth

Although the phone is expected to see initial

sector could almost be termed as retaliation

demand from land-based users, Collett believes

for Inmarsat’s FB150 service, which was a

Iridium to update satellite coverage

downward

term. “This is also the first time we are controlling the distribution of one of our products as we

However, Inmarsat’s long term market share

turf. However, Mercer is quick to spotlight

will have only one handset branded Inmarsat,

will see a threat from Iridium, which will begin

Iridium’s biggest selling point: that the company’s

although it will be available from our 13 trusted

fully replacing its current satellite constellation

satellite constellation is the only one providing a

suppliers,” he adds.

in 2015 with its second-generation constellation

“truly global” service – as opposed to Inmarsat

In its core maritime business, Inmarsat will

Iridium NEXT. In June the company announced

that does not offer polar coverage.

continue its focus on lower end markets and

that it awarded the $1.8 billion contract to Thales

The move is also indicative of a trend towards

has seen strong demand for its basic Fleet

Alenia Space which will design and construct 81

higher bandwidth by the maritime sector as

Broadband service FB150, which saw activation

satellites including 66 operational LEO satellites

a whole, as companies implement the latest

of its 1,500 terminals in mid 2010. The product

to replace the current constellation, six in-orbit

asset management software, weather routing

has served as an entry point for users transiting

spare satellites, and nine ground spares. When

and ECDIS technologies. With the resurgence

over from ‘pay-as-you-go’ voice and data

operational in 2017, the network will be able to

in the shipping markets, the immediate need to

packages to relatively higher bandwidth and may

offer high bandwidth bringing it into the slightly

keep costs down will soon be overtaken with the

also lure users over to higher level packages in

higher-end market that has traditionally been

drive to retain skilled seafarers and streamline

the long term.

monopolised by Inmarsat.

onboard operations across entire fleets – and it

that the phone will see take-up at sea in the long

Fleet Broadband is also expected to see a boost to its customer base over the coming

“Iridium

OpenPort

currently

operates

at 128kbps but the new satellites will boost

theBaltic Winter 2010 www.thebaltic.com

diversification

of

their

Fleet

Broadband product into Iridium’s low bandwidth

is only a matter of time before broadband at sea is as common as broadband on shore.

75

Classification societies

Fuel for thought We look at how classification societies are investigating a future beyond oil

“E

very company that has an involve-

undergo sea trials in May 2011, following

converting cargo space next to the engine room

ment in shipping has a responsibil-

conversion to allow it to operate on LNG. Bit

into a gas technology room and using additional

ity for ensuring that the industry is

Viking will be the first ship with Germanischer

LNG containers on deck, LNG will be supplied

doing all within its power to reduce

Lloyd (GL) class using gas as fuel.

using only containers. The bunkering solution will be efficient and the loss of cargo space will

the impact its activities have on the natural

With two 500 m³ tanks the vessel will have a

environment. This includes those who design

range of 12 days. It is owned by Tarbit Shipping

and build ships, those who operate and manage

and operated by Statoil along the Norwegian

“As with all industrial improvements,” says

ships, and those who provide the range of serv-

coastline. The conversion will enable the vessel

DNV president Tor Svensen, “LNG will be

ices required to keep shipsoperating including,

to qualify for lower NOX emission taxes under

introduced as a shipping fuel step by step. Our

of course, class,” said Oh Kong-Gyun, chairman

the Norwegian government’s NOX fund scheme.

LNG rules were introduced in 2001, and the

and CEO of the Korean Register of Shipping

According to operator Tarbit Shipping the Bit

first LNG-fuelled coastal ferry started in ordinary

(KR), opening this year’s Seoul International

Viking will be one of the safest and most

service later that same year. We have learned

Maritime and Shipbuilding Conference. While

environmental friendly product tankers in the

from coastal shipping operations every year

this covers every aspect of ship operation, one

world.

since. With this containership project, we are

be minimal.

ready to use LNG for global trades too.”

of the first and most obvious ways of reducing

“The use of LNG could reduce carbon

the impact on the environment has been to look

emissions by 23%, with even bigger reductions

However, “if cost-benefit was the only driver,

at the way in which ships are powered. For many

of 80% in NOx and 92% in SOx emissions,” said

we would not have initiated this project,” says

classification societies, that has meant looking

Dr Pierre Sames, Senior Vice President Strategic

Stefan Patjens, the managing director and owner

beyond oil as a means for driving the fleet of

Research and Development at Germanischer

of Reederei Stefan Patjens. “But our drivers are

the future.

Lloyd. “Using gas as a fuel can be one of

wider. We want to contribute to environmental

the major contributors to meeting emissions

improvements – improvements that will benefit

targets.”

the whole of society.”

emissions in the future, a new fuel could make

And for longer distances

The nuclear option

a vast difference to the efficiency – and the cost

DNV, which already has 20 LNG powered

While LNG is gradually gaining acceptance as

efficiency – of the fleet.

vessels under class, is looking into the possibility

a fuel for the future, Lloyds Register is looking

LNG as a fuel for containerships. It announced in

at a more unusual option – and one which

September that DNV customer Reederei Stefan

could potentially face more resistance. The

LNG – for tankers

Patjens is ready to retrofit LNG on board a 5,000

of classification society has joined forces with

LNG is one of the fuels most frequently cited as

TEU container vessel. When completed, this will

a number of other companies to explore the

a possible successor to HFO, despite problems

be the very first use of LNG as fuel on board a

potential for nuclear power to propel future

with the amount of space needed for fuel tanks,

containership and of LNG as fuel in worldwide

generations of commercial tankers

which mean it is only likely to be feasible for

trading.

With restrictions on sulphur emissions becoming increasingly strict – at least in areas such as the EU and the US – and the prospect of a draconian crackdown on carbon

The research consortium, which includes

shorter voyages or liner routes where frequent

The vessel in mind is a four-year-old

Lloyd’s Register, Greek shipoperator Enterprises

refuelling is possible. The Scandinavian and

containership, owned by German shipping

Shipping

Baltic region is often seen as an ideal location

company Reederei Stefan Patjens. Two of its

Generation and BMT, aims to investigate the

for operations of this kind, and it is here that

auxiliary engines and its auxiliary boiler will be

practical maritime applications for small modular

the 25,000 dwt product tanker Bit Viking will

modified so they can be fuelled by LNG. By

reactors as a safer, cleaner and commercially

76

theBaltic WInter 2010 www.thebaltic.com

and

Trading,

Hyperion

Power

Classification societies

Could containers carry fuel as well as cargo?

viable form of propulsion for the global fleet. They

“Nuclear propulsion offers the opportunity

of approximately 160 GW worldwide. All of this

believe nuclear power is technically feasible, and

for an emissions-free alternative to fossil

could, in principle, be substituted by fuel cells in

has the potential to drastically reduce CO2

fuel, whist delivering ancillary benefits and

order to reduce emissions to air. Apart from the

emissions from the world commercial fleet,

security to the maritime industry,” said Dr Phil

high efficiency of the fuel cell system – typically

caused by commercial shipping.

Thompson, sector director – transport, for the

more than 50% – they produce very low or no

“This a very exciting project,” said Lloyd’s

BMT Group. “We look forward to using our

emissions, depending on the fuel used

Register CEO, Richard Sadler. “We believe

wide range of maritime skills and expertise to

The study claims that fuel cell systems could

that as society recognises the limited choices

identify the through-life implications, risks and

be economically competitive with traditional

available in the low-carbon, oil-scarce economy

potential for developing and using SMRs in the

diesel engines five years after the development

– and as land-based nuclear plants become

civilian maritime environment and to provide a

of the first systems for commercial shipping.

common place – we will see nuclear ships on

framework for its safe and reliable introduction

The initial markets are likely to be cruise vessels,

specific trade routes sooner than many people

and utilisation.”

RoPax vessels and mega yachts, but the market could expand to include cargo ships as well, GL

currently anticipate.”

believes.

The consortium believes that SMRs, with

An end to auxiliary emissions?

“The study concludes that fuel cell systems

megawatts, have the potential to be used as a

While cutting down on emissions from propulsion

have a high market potential in shipping in

plug-in nuclear ‘battery’.

a thermal power output of more than 68

is important, cleaning up emissions from

the future,” said Dr Gerd-Michael Würsig, GL’s

The research is intended to produce a

installed auxiliary power also has the potential

expert in fuel cell technology. “Today, still some

concept tanker design based on conventional

to considerably reduce the carbon impact of

technical challenges have to be overcome.

and ‘modular’ concepts. Special attention will

the shipping industry. According to a market

But current and ongoing projects already

be paid to analysis of a vessel’s lifecycle cost as

study carried out by GL and the Hamburg City

demonstrate the suitability of fuel cell systems

well as to hull-form designs and structural layout,

Administration, the installed auxiliary power on

for power generation on board ships.”

including grounding and collision protection.

board sea-going vessels has a market potential

theBaltic Winter 2010 www.thebaltic.com

77

Americas

Thinking big in Brazil Investment in oil, bulk shipping, ports and shipyards is on the up – but implementation may not be trouble-free

M

assive oil discoveries off the coast

coventional oil production over the next 25 years.

Machado, Transpetro has an orderbook of some

of Brazil are driving investments in

A further $30 billion will be invested in refining

49 vessels, at a cost of $4.7 billion. He estimates

offshore technology, shipping and

technology. In the shorter term, Petrobras plans

that the increase in the owned fleet will eventually

ports to deal with potential produc-

a $220 billion investment through 2014, in

cut transport costs by some $500 million a year.

tion. The country is investing heavily in develop-

what it claims is the world’s biggest oil-industry

However, the company is also making major

ing its oilfields, in particular those lying in the

investment program. As a first step towards this

investments in the biofuel sector, including the

pre-salt region; a geological formation some

massive investment, Petrobras made a public

transport of biofuels. In November, Petrobras

200km wide and more than 800km long off the

offering in late September, raising a record-

finalised the terms of a $239 million contract for

country’s southern coast. This area is projected

breaking $70 million on the first day of trading.

the construction of 20 tugboats and 80 barges

to have between 50 to 100 billion barrels of

Heavy investment in the offshore sector is a

at Brazil’s Estaleiro Rio Tiete. The vessels will

recoverable light crude below a salt layer on the

given, but ports and the shipping sector also

operate in convoy on the Parana-Tiete river

ocean floor.

stand to benefit from the boom, with Transpetro

system, with operations expected to begin in

According to projections by the IEA, Brazil

claiming to have the fourth largest orderbook

2013.

will pour some $984 billion into developing its

in the world. According to its president, Sergio

78

theBaltic WInter 2010 www.thebaltic.com

Americas Vale seeks economies of scale

estimated to be worth around $5.84 billion. In a

On the dry bulk side, Brazilian iron ore company

similar contract, announced in late November

Vale is making vast investments that stand to

2010, Vale agreed a 25-year contract with

create a major shake-up in the way the iron

MOL for two 300,000 dwt VLOC newbuildings,

ore route between Brazil and China operates.

to be constructed at Universal Shipbuilding

Vale is now the the largest iron ore producer in

Corporation in China. The vessels, slated for

the world, with an expected production of 311

completion in 2012 and 2013, will operate on

million tons in 2011. However, high freight costs

the Vale-China shuttle service, according to a

on the route between Brazil and China, its main

statement from MOL.

customer, put Vale at a disadvantage in price

Vale is also looking at major investment

negotiations against competitors in Australia,

in Brazil’s port infrastructure, with plans to

in particular. In a bid to reduce freight costs on

construct a fourth pier at the Ponta da Madeira

the route, the company has ordered some 33

Seaport terminal. Proposed investment in the

VLOCs of up to 400,000 dwt from Chinese and

port is estimated at around $2.6 billion, making

beginning to pay off, with Brazil launching its

Korean yards. From having just three capesize

this one of the biggest current port infrastructure

first internally-built tanker in 13 years, the Joao

bulkers in its fleet at the beginning of 2008, Vale

developments in South America.

Candido, in April this year. The tanker, built in

Offshore investment will drive growth

is predicted to control a fleet of some 50 bulk

partnership with Samsung Heavy Industries at

carriers of various sizes by the end of 2014.

the Atlantico Sul yard, is the first in a series of

However, with Goldman Sachs predicting that

Shipbuilding gears up

China’s influence in the global commodities

Revitalising Brazil’s shipbuilding industry has

“At its peak, in the 1970s, the Brazilian

market is likely to wane over the next year, and

been a major plank of government policy in

shipbuilding industry had the world’s second-

China itself looking to source more of its iron ore

recent years. There has been considerable

largest order book. Today, it is on the way back,”

from within the country, this investment may be

investment in developing shipyards, and in

said Brazilian president Luiz Inacio Lula da Silva,

a risky bet.

developing

speaking at the launch.

technology

partnerships

10 suezmaxes.

with

While Vale is looking at bringing much of its

established yards with sophisticated shipbuilding

According to reports from the Dow Jones

iron ore transport in-house, it is also establishing

expertise. OSX, for example, announced in April

agency, Brazil’s Merchant Marine Fund is set

a number of long-term charters with established

that it is planning to build a $1.7 billion shipyard

to approve up to $7.6 billion of financing for

shipping companies. In September 2009, for

in Sao Joao da Barra in partnership with South

new shipbuilding projects at its next meeting

example, it signed a 25-year consecutive voyage

Korea’s HHI, which has a 10% stake in OSX.

on December 17. Up to 165 new shipbuilding

contract with STX Pan Ocean from 2011 that is

Investment in shipbuilding infrastructure is

projects will be considered for funding, said Percival A Costa Serviços Navais (Marine Surveyors) Head Office, Santos: +55 13 3225.7181 Mobile: + 55 13 9755 0838 Nextel: +55 13 7850 5053 ID 44*428 skype: percival113 www.pcostamarinesurveyors.com

Percival A Costa Serviços Navais: Marine Surveyors The offices of Marine Surveyors, Percival A Costa, are located in Brazil, the largest port in Latin America, where they are legally authorised to carry out marine surveys and inspection activities in that country. Run by a Captain of the Brazilian Navy, with more than 38 years of active service and with over 20 years marine surveys and inspections activities, the office of Captain Percival A Costa has performed more than 5,000 marine surveys and inspections without a single complaint from its customers.

As a Ship Surveyor recognised by the Society of Consultants, Marine Engineers and Ship Surveyors (SCMS) from Great Britain, and the only Brazilian Ship Surveyor with accreditation to the Federation of European Marine Associations of Ship Surveyors and Consultants (FEMAS) for the entire European continent, the office is able to provide its customers with the following naval inspections and surveys: Surveys and inspections related to cargo and equipment:

Surveys and inspections related to vessels on behalf of classification societies:

Additionally, the office is able to perform the following procedures:

B: Breakbulk and bulk cargoes, loading & discharge

TB: Surveys on vessels transporting dry bulk cargo

E1: Draught surveys of dry and /or liquid bulk

TC: Surveys on chemical tankers;

Steel inspections: for exporters, shippers, Protection and Indemnity Associations (on behalf of shipowners)

D1: Commercial hulls, condition, damage and on/off hire surveys

TO: Surveys in oil tankers

CB: Bulk cargo loading and discharge draught surveys

Y: Certification in Yachts and pleasure craft

CG: General cargo loading and discharge surveys

M: Machinery

P: Port equipment and installations surveys and inspections

OV: Surveys in offshore vessels

L: Lashing and securing surveys

Audits in ISM and ISPS Codes

theBaltic Winter 2010 www.thebaltic.com

Grain and fertiliser inspections: sampling, supervision and warehouse analysis, including hold cleanliness inspections Ship inspections: On/off hire, condition and bunker surveys, cargo compartment salinity tests, damage investigation, sealing/unsealing of hatch covers and entries, and other inspections on behalf of Underwriting and P&I Associations.

79

Americas fund director, Amaury Ferreira Pires Neto. The fund has approved financing of BRL17.3 billion for 406 shipbuilding projects over the past eight years. “There’s been a fantastic leap in shipbuilding activity and this may intensify further in coming years,” Pires Neto said.

Port infrastructure Brazilian ports are also seing major investment.

The port of Pecem, for example, is to invest some $1.3 billion in infrastructure development over the next six years. The designed expansion is to cope with the expansion of the steel industry, increasing the docking area and shipyard, and installing a conveyor system to handle increased coal throughput. Container and other cargo handling systems will also be improved.

DP World is committed to a major investment in Embraport, Empresa Brasileira de Terminais Portuários, a terminal complex which is being developed near to Santos in Brazil, in partnership with a local company called Odebrecht.

The first phase of Embraport is scheduled to be completed in 2012, at which point the terminal will have a throughput capacity of around 1 million teu. When fully developed the new terminal will be able to handle 1.8 million teu annually, making it one of the biggest gateways for regional container traffic.

80

Major investment in port expansion is underway

theBaltic WInter 2010 www.thebaltic.com

Corporate viewpoint Clyde & Co

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Our international network enables us to act

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We are acknowledged leaders in the maritime industry and provide a full commercial

• Energy • Ports & terminals: multimodal/logistics

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M

att Hannaford works in the London office and specialises in commercial shipping

tanker owners, oil majors, energy companies,

Dispute resolution

governments, P&I clubs, hull and cargo

We adopt the most appropriate method (or

ship sale and purchase (including newbuilding

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theBaltic Winter 2010 www.thebaltic.com

81

STUDIO NAVALE CANEPA M A R I N E

C O N S U L T I N G

S U R V E Y O R S

–

S.R.L.

E N G I N E E R S

F O R E N S I C

E X P E R T S

Via D’Annunzio 2/88

Tel. +39 010 59 59 776

16121 Genoa, Italy

Fax +39 010 53 04 100 Mob. +39 335 39 85 75

e-mail: studio@canepa-marine.it

Contacts Naval Architect & M.E. Massimo Canepa – Ceng – FRINA – FIMarEST – SNAME – AIPAM Andrea Gennaro – AIPAM Mec hanical Engineer Giulio Gennaro – AIPAM Mec hanical Engineer Alessio Gnecco – FRINA - MIIMS – AIPAM Naval Architect & M.E. Francesco Annarummo Master Manner with a degree in Law Martin Castelino [US Gulf and the Caribbean] Studio Navale Canepa is a leading Italian marine surveying and technical consultancy firm with the base of operation in Genoa, the activity of which spans worldwide.

Since it was established in 1970 SNC provides totally independent top level expertise to the maritime industry and particularly to H&M Insurers, P&I Clubs and law firms for marine casualty investigations, damage surveys, loss prevention and forensic consultancy.

Specialised in major marine casualties, SNC covers a wide range of multi-disciplined engineering and marine knowledge with practical experience and expertise, including the latest azimuthal propulsion technology (POD) with over ten years’ involvement in this subject.

SNC has correspondents of proven expertise and experience in several countries, including United Kingdom, Greece, The Unites States, Hong Kong, Singapore, South Africa.

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The Art of Surveying we observe, we analyse, we report VAN AMEYDE MARINE is a 24-hours available independent maritime survey company in The Netherlands, operating local and international, for P&I Clubs and carriers, with a team of 15 experienced, well trained and educated surveyors having sea-going experience as a deck-officer and/or engineer.

We have specialists on different cargoes, such as fruit, chemicals etc. Apart from cargoes, our specialists also deal with oil spillages, bunker disputes, operational issues, condition surveys, lashing/securing of heavy cargoes, consultancy, mediation etc.

Our company has an approved ISO 9001:2008 quality system by Det Norske Veritas (DNV).

Nautical / technical surveys, loss prevention, risk analysis, liability (transport) claims.

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Tel +31 10 4104400 rotterdam@ameydemarine.nl

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Tel +31 20 6195068 amsterdam@ameydemarine.nl

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Insurance ITIC

Avoiding the bribery trap Andrew Jamieson of the International Transport Intermediaries Club (ITIC) explains what anti-corruption regulation means for brokers

T

he issue of what constitutes a bribe

happy to confirm that they had not themselves

an excuse to insert other rights, obligations or

under the UK’s new Bribery Act, and

made any payment and that they were not

responsibilities.

what you should do to prevent one,

aware that anyone else had.

Brokers reviewing these agreements should

will attract a great deal of coverage in

They were concerned that anything they

ensure that the text does not make them

the coming months. But that Act, scheduled to

issued should not make them responsible in the

responsible for the acts of others in the chain.

come into force in April 2011, is only one part of

event that another party – such as the seller –

It is one thing to confirm you have not paid

a worldwide trend towards regulation.

had in fact done so. This is a common concern

or received a bribe, but it is quite another to

It has become increasingly common for

about the text of this type of undertaking.

undertake that no-one else has.

shipbrokers to be asked by their principals

ITIC assisted with the drafting of a form of

The next consideration is the scope of the

to sign formal documents aimed at achieving

wording which commenced: “We, brokers for

agreement. Anti-corruption measures should

compliance with worldwide anti-corruption

the bidders, hereby confirm and undertake that,

not cause any difficulty, but some agreements

legislation. The typical document presented to

to the best of our knowledge, information and

contain general unqualified statements that

brokers will set out the principal’s prohibition of

belief, no payment or illegal gratification to any

the broker shall comply with all laws, whether

the payment of bribes and/or the provision of

person/authority connected with the bid process

relevant or not. A recent example included

other inducements. Often there will be a general

was made …”

an undertaking that a broker would make all

ban on ‘inappropriate entertainment’ without defining exactly what that may be. Brokers will

This wording was accepted by the Indian corporation and the transaction proceeded.

appropriate declarations, filings and disclosures to the tax authorities and that these would be open to inspection by the principals. Most

be required to confirm their adherence to the

The US anti-corruption legislation (Foreign

principal’s policies. Additionally, brokers will often

Corrupt Practices Act 1977 as amended) has

be required to agree to allow their records to be

been around for a number of years. It has not

The inclusion of wide-reaching ‘audit clauses’

audited. It is some of the ‘additional’ provisions

been unusual for a provision to be inserted into

is often of concern to brokers. A recent example

that can cause the most difficulties.

brokers would regard that as overly intrusive.

contracts saying that the other (non-US) party

provided that the broker agreed that “its books

The documents issued by principals can

would not do anything in breach of the Act.

and records (and those of related parties) shall

relate to a specific transaction. In a recent case,

The legislation does not simply refer to corrupt

be subject to audit…” and that “The auditors

shipbrokers in London acted for the seller of a

payments by the US company, but by people

shall have full and unrestricted access”. If you

tanker. The buyer was an Indian corporation. The

acting for them.

objected, then presumably the principal would

sale was made pursuant to a written invitation for

By and large, these clauses in contracts

point out the next provision that the “broker

offers issued by the Indian corporation. It was a

have not given rise to problems. What has

forfeits, waives and agrees to forgo any rights to

term of the invitation document that the sellers

developed over more recent times is a tendency

compensation…”

would have to give an undertaking that they had

for companies to issue formal agreements

It is unlikely that brokers will be able to avoid

not made “any payment or illegal gratification

setting out their ‘ethical trade policies’. This is

signing these types of agreements, and the

to any person/authority connected with the bid

not simply a North American trend, as we have

greater emphasis on regulatory compliance will

process”.

seen agreements from principals based in many

make them more common. A practical approach

Although it was not a term of the original

different countries. These documents are often in

will be to make sure the provisions are limited

invitation for offers, the brokers were asked, as

the form of separate agreements sent to brokers

to the brokers’ own actions and that any rights

brokers for the sellers, to provide an undertaking

to sign, although sometimes the provisions are

granted to the principal are reasonable and

that no such payments had been made. The

included as part of commission agreements.

directly relevant to the transaction in question.

brokers asked for ITIC’s assistance in relation

Whatever the format, it is important to make

to the wording of the undertaking. They were

sure that these agreements are not used as

theBaltic Winter 2010 www.thebaltic.com

83

Insurance Parlance

Insurance Parlance North of England speaks out against EU investigation

T

has

provided by the clubs. In my view we must do

announced that it is opening formal

everything we can to ensure that this wonderfully

The claimant, Islamic Republic of Iran

preliminary proceedings to investigate

unique system continues to serve the best

Shipping Lines (IRISL), was a member of

whether the claim-sharing and joint-

interests of the shipping industry and society,”

the defendant P&I Club, Steamship Mutual

he said.

Underwriting Association. The judge held that

he

European

Commission

reinsurance agreements of the P&I Clubs infringe

Underwriting Association.

European Union antitrust rules. According to

the Club was permitted to provide insurance

P&I commentator Sam Ignarski, this is the third

cover in respect of those risks requiring cover

Court rules on extent of sanctions

by virtue of the International Convention on Civil

anti-competition scrutiny from the EC. Albert Engelsman, managing director of Wagenborg

The Commercial Court in England recently had

In addition, the Club was allowed to meet all

Shipping and chairman of the North of England

to assess the impact of the sanctions placed on

claims in respect of those risks.

P&I Club, has denounced the investigation as

Iran on the provision of P&I insurance, and the

Beatson J held that whilst the scope of

potentially “irresponsible”.

extent to which a P&I Club is permitted to provide

cover permitted was significantly narrower than

time in 30 years that P&I clubs have come under

Liability for Bunker Oil Pollution Damages 2001.

He said: “It is unclear to the shipowner

insurance under the sanctions. Edwards Angell

it was prior to 30 October “its nature is not

members of P&I clubs, who are also the

Palmer & Dodge have provided a commentary

different”. The judge held that the contract

consumers, why an investigation is being

on the significance of the case, Islamic Republic

between the Club and IRISL was to provide

carried out into a tried-and-tested system that

of Iran Shipping Lines v Steamship Mutual

indemnity insurance and that “[p]art of that

delivers cost benefits to consumers and also to third parties. The pooling agreement between the 13 members of the International Group enables shipowners to trade and comply with the increasingly complex and regulated world of international maritime conventions – it would therefore be irresponsible for the European Commission to jeopardise what is an invaluable global system.”

Engelsman said it was all too easy for regulators and industry commentators to focus on the light competitive restraint of the International Group agreement and to ignore the fact that most maritime liability conventions are underpinned by the insurance provided by International Group clubs.

“Too often the clubs are given insufficient credit for the invaluable role they play enabling global trade – quite simply, the majority of the world’s shipowners and operators depend and rely upon the unparalleled liability insurance

84

The EC is set to investigate P&I Clubs for the third time in 30 years

theBaltic WInter 2010 www.thebaltic.com

Insurance Parlance

purpose remained lawful”. The imposition of

3% increase for North

2% for American

sanctions notwithstanding, IRISL was entitled

North P&I Club have decided on a 3% general

The American P&I Club has announced a 2%

to be indemnified in respect of its costs and

premium increase for 2011/12, a decision

general increase in advance call premium on

liabilities arising out of the casualty.

which it says reflects the Club’s commitment to

mutual entries at next February’s renewal, plus

maintaining its financial strength in an uncertain

additional reinsurance costs, subject to a 25%

market.

deferred call in due course.

London sets rate at 5%

According to chairman Albert Engelsman,

Discussing premium requirements for 2011,

The London P&I Club has set a general increase

“North’s finances are in a strong position;

the directors have concluded that, while current

of 5% in annual P&I call rates for the 2011/2012

however, the board recognises the club is

year results point in a positive direction, longer-

policy year.

not immune to the ongoing period of financial

term trends suggest that some allowance should

uncertainty that is forecast and consequently we

be made for rising costs over the coming year.

The Club’s financial position had strengthened substantially by the beginning of the current

must remain vigilant”.

Claims inflation over the years ahead is

year, the Club said in a statement. Since then,

Joint managing director Paul Jennings said

likely to be driven by several factors. One of the

the number of claims has been lower than

that: “Although claims experience for the current

most important is the continuing devaluation

expected, but several members suffered large

year compares favourably with previous years,

of the US dollar and a concomitant rise in

casualties in the first few months of the year,

the board recognises the inherently volatile

commodity prices. Another is the persistent

serving to demonstrate that overall claims costs

nature of P&I claims, the impact of claims

hostility of the political, regulatory and judicial

can remain high, even when the claim numbers

inflation and the operational challenges faced

environment. “This, combined with the creeping

are moderate. The subsequent period has been

by shipowners. These factors have been taken

expansion of levels of shipowner liability under

more benign, particularly at the attritional level.

into consideration when assessing the general

existing conventions, to say nothing of the

The Club’s owned mutual tonnage has

increase and we have assumed that claims will

thinly-disguised extortion that passes for due

increased by more than 2 million gt during the

follow the same trend experienced over the past

process in some jurisdictions, will further serve

year so far. The charterers’ portfolio has also

five years. However, the relatively modest nature

to aggravate P&I exposures over the years

increased, so that the Club’s total entry stands

of the increase recognises the particularly strong

ahead.”

at nearly 42 million gt.

financial performance of the Club.”

The Club emphasised that investment

Joint managing director Alan Wilson said

conditions remain uncertain and a cautious

that the Club continued to adopt a defensive

approach in this area continues to be an

approach to investment strategy to match its

important part of the committee’s forward

objective of capital preservation.

planning.

theBaltic Winter 2010 www.thebaltic.com

85

Corporate viewpoints Attorneys at Law Borenius & Kemppinen Ltd Helsinki

The State’s liability for pilotage under revision Present situation

T

he lawyers of the shipping department

to a separate limited liability company would

of Borenius & Kemppinen have been

expose that company to unlimited liabilities. The

involved in disputes concerning the

Finnish State has now taken steps to limit the

liability of an owner to the Finnish State

liability of this new company.

for damage to state owned navigational aids

The legislative work is presently in progress

caused by a pilot on board. Another aspect of

and no final proposal is yet available. The

this question is what liability the State may have

legislator does not, however, consider it justified

for damage to a vessel caused by pilotage.

to expose the new company to unlimited liability, considering the assisting nature of the pilot

Currently, the State has a monopoly on providing pilotage services. Since vessels are usually

of his duties, and the Tort Act which excludes

services and the risks involved compared to

obliged to use pilots when proceeding in the

the state from liability for damage caused by

the fees collected for pilotage. According to

Finnish archipelago, these questions should be

pilotage. When a pilot on board has caused

preliminary information, the draft Government

of particular interest to all shipowners calling at

damage to state owned navigational aids the

Bill contains a proposal that the new pilotage

Finnish ports.

Finnish Courts have, with reference to generally

company should be liable for damage caused by

The Finnish Tort Act (Section 7, Chapter 3)

applicable principles of tort law, concluded that

pilotage only if the damage is caused intentionally

contains a provision which excludes the State

the State is not entitled to damages to the extent

or by gross negligence with knowledge that

from liability for damage caused by pilotage.

that such damage has been caused by a pilot

such damage will probably result. It is further

This raises the question of what pilotage is. This

employed by the State. These principles are not

proposed that the liability should be limited to

issue was tested in the Finnish Supreme Court in

set aside by the referred provisions of the FMC

€100,000 for each incident and that the pilotage

1995. The judgement rendered by the Supreme

and the Tort Act. Identification is made between

company should be liable to third parties only

Court (KKO 1995:61) can be considered as a

the pilot and his employer which prevents the

to the extent that damage cannot be collected

landmark. The pilot on board was under the

State from recovering damages from an owner

from the owner. If these proposals are accepted,

influence of alcohol, which caused the grounding

in so far as damage has been caused by a

it seems that the situation will in practice not

of the vessel. The owners claimed damages

pilot. The leading judgement is from 1996 (KKO

change and that the proposed amendments

from the State.

The question at stake was

1996:20). It should be pointed out that very

would merely be of a cosmetic nature.

whether or not the provision by the State of a

seldom have the Courts concluded that damage

The draft proposal has already earned

pilot in an intoxicated state was pilotage in the

to a navigational aid has been caused by the

criticism, in particular with regard to the

sense prescribed in the Tort Act, or a malfunction

pilot alone, and the owner has often had to take

proposed limitation of liability. The final word

of the system for providing pilotage services. The

a share of the liability.

has not yet been said, and it remains to be seen whether or not the legislator is prepared to

Court ruled that the pilot had performed pilotage when the vessel ran aground but also stated

Pending revision

that the liability for negligence and mistakes

Traditionally, the Finnish Maritime Administration,

made in providing a functioning pilot service is

a body of the Finnish State, has provided

not covered by the Tort Act. In this particular

pilotage services. In 2004 all pilotage services

case the pilotage service had not failed. The

were transferred to a separate public service

judgement leaves room for interpretation in each

body, Finnpilot, subordinated to the Ministry of

For further information please contact:

individual case. However, usually the State has

Traffic and Communications. Due to a decision

Jan Aminoff

no liability for damage caused to a vessel by

of the Commission of the European Union in

Tel. Direct: +358 9 6153 3529

a pilot.

2007, based on competition considerations, the

E-mail: jan.aminoff@borenius.com

The principles governing the liability of an

business activities of the State should no longer

Ulla von Weissenberg

owner to the State for damage caused to state

be conducted through public service bodies

Tel. Direct: +358 9 6153 3460

owned navigational aids by a pilot on board

subordinated to a ministry, but by separate legal

E-mail: ulla.weissenberg@borenius.com

the owners’ vessel are today well established.

entities. The intention is, therefore, to transfer all

Attorneys at Law Borenius & Kemppinen Ltd

A disagreement originally existed caused by

pilotage services to a limited liability company

Yrjönkatu 13 A

the clash between Section 1, Chapter 7 of the

owned by the State. Since the exemption

FIN-00120 Helsinki, Finland

Finnish Maritime Code, which states that the

from liabilities for damage caused by pilotage

Tel: +358 9 615 333

owner is liable for loss or damage which, inter

contained in the Tort Act only operates in favour

Fax: +358 9 6153 3499

alia, the pilot has caused in the performance

of the State, a transfer of the pilotage services

Website: www.borenius.com

86

theBaltic Winter 2010 www.thebaltic.com

modify the present approach.

Maritime cluster – Finland

Punching above its weight Maritime design and innovation from Finland is making its mark around the world

F

inland has an active and innovative mari-

competitive partner than an empty one when

Growth

time cluster, including shipowners in all

we are competing on new cruise ship projects,”

Eniram, another member of the Finnish

sectors, ship designers and builders and

said Juha Heikinheimo, president of STX Finland.

maritime cluster that specialises in reducing the

equipment manufacturers and builders.

environmental impact of shipping, was listed

While all of these play a vital role in Finland’s

among the top 25 fastest growing European

maritime sector, it is the emphasis on developing

Synergy

clean tech companies at the end of November.

environmentally friendly technology and design,

While ferry and passenger shipping plays a major

Eniram

that will serve the cluster best in the current dif-

role in the Finnish maritime cluster, ferries are a

decision support systems for vessel operation,

ficult market situation.

niche market and represent less than 1% of the

with its flagship Dynamic Trimming Assistant

world’s shipping fleet. A new project from Finnish

(DTA) allowing users to achieve fuel savings of

companies Wärtsilä and Deltamarin, aims to cut

over 1,000 tonnes per year, the company claims.

Thinking green

the cost of ferry design and production by up to

“The growth shows that there is a genuine need

Perhaps one of the most high profile companies

15% by making a clear distinction between the

for our products and solutions in the shipping

in the maritime sector is STX’s Turku yard, which

marketable and non-marketable features of a

industry and that we can contribute to a cleaner

recently delivered the Allure of the Seas, the

vessel. For example, the size and architecture of

environment by helping our customers to reduce

largest cruise vessel in the world. The yard’s

the passenger accommodation and recreation

emissions,” said ceo Philip Padfield, Eniram

future had been in some doubt, as there had

areas are marketable features of a ship, and can

Group.

been no new projects lined up after the delivery

be tailored to each customer’s particular needs.

of the Celebrity cruise ship, but recent orders for

On the other hand, the construction of the ship,

a new cruise ferry from Finnish company Viking

including the engine room layout, piping and

International involvement

Line, with the option for a second vessel, have

ventilation, power, navigation and automation

Companies in the Finnish maritime cluster

secured the yard’s future. The order is surprising,

systems can all be designed using a more

excel not only at designing and building

as Viking Line had previously said that it would

industrial method. As a result, the same benefits

environmentally friendly technology, but also at

not be looking in Finland for its new vessels, as

can be utilized in subsequent ships without them

operating it. Finland-based Lamor Corporation,

the country could not compete on price with

becoming duplicates.

which develops, manufactures, and supplies

“The

dynamic

oil spill recovery equipment and services, was

technical solutions can only come about

heavily involved in the Global Horzion spill

beginning of 2013, is “the most environmentally

through an integrated approach. By combining

clean-up, providing both equipment and expert

friendly big passenger vessel to date”, Viking

our

expertise

advice to the containment and clean-up efforts.

Line has claimed, with no marine emissions and

in ship design and integrated technologies,

During the Gulf incident, Lamor also responded

extremely low aerial emissions.

we believe that such viable solutions can be

simultaneously to three other oil-spills in China,

represents

attained,” said Wilco van der Linden, director

Singapore and in Michigan (US). According to

approximately 2,600 man-years’ employment,

business development for Wärtsilä Ship Power.

CEO Fred Larsen: “We worked at full capacity

is highly important both to the Turku shipyard

The synergy generated between design and

in all of our facilities worldwide during the Gulf

of STX Finland and to the entire Finnish

engineering development in this way is one of

of Mexico incident, and continue to do so still.”

shipbuilding cluster, STX said. In addition: “An

the greatest strengths of the Finnish maritime

actively operating shipyard is also a much more

cluster.

The

new

order,

which

of

produces

The new cruise ferry, to be delivered at the

companies’

viability

and

advanced

yards located outside Europe.

economic

develops

complementary

theBaltic Winter 2010 www.thebaltic.com

87

Legally speaking

Enforcement in China Leading maritime law firm Holman Fenwick Willan looks at the enforcement of court judgments and arbitration awards in China

T

Enforcement of English Arbitration Awards

• The award has not become binding or has

ing into any contract. If a counterparty

In 1987, the PRC ratified the Convention on the

• The matter is not capable of settlement by

defaults, the affected party needs to be

Recognition and Enforcement of Foreign Arbitral

confident that it will not only be able to pursue a

Awards (the “New York Convention”) subject to

claim under the contract, but also to enforce any

two reservations:

judgment or award where the defaulting party

1. Recognition and enforcement of foreign

Social, economic and political pressures

has its assets. The People’s Republic of China

awards are made on the basis of reciprocity.

that may influence local judges when deciding

(PRC) presents its own challenges regarding

2. The PRC courts will only enforce disputes that

whether or not to enforce an English arbitral

arise out of “commercial legal relations of a

award can also be a factor. Practice and

contractual or non-contractual nature”.

attitudes of PRC courts vary depending on

The PRC Supreme Court has stated that

location – in larger cities, judges are more likely

Enforcement of English Court Judgments

“commercial legal relations of a contractual

to look favourably on enforcement whereas in

or non-contractual nature” refers to economic

small towns, enforcement may be hindered by

In the PRC, it is only possible to enforce a foreign

rights and obligations arising out of contracts,

local protectionism. However, any PRC court

court judgment where there is a concluded

such as the purchase and sale of goods,

which denies a party the right to enforce in China

treaty, or a principle of reciprocity. Currently,

processing, technology transfer, joint venture,

must first obtain permission from the Supreme

there is no bi-lateral convention or principle of

cooperative business, agency, transportation by

Court.

reciprocity between the PRC and the UK. It is

sea, air, rail or road and product liability.

he ability to enforce claims is usually an important consideration when enter-

enforcement.

therefore highly unlikely that an English court judgment would be enforced in the PRC. An alternative is for the parties to elect to

been set aside. arbitration under Chinese law.

• Enforcement would be contrary to the social and public interest of the PRC.

Subject to the above two reservations, English arbitral awards are theoretically enforceable in the PRC by virtue of the New York Convention.

Maximising chances of enforcement

litigate in Hong Kong in their contract. Under

Some practical suggestions for anyone planning

the Arrangement on Reciprocal Recognition

to contract with a Chinese counterparty are set

and Enforcement of Judgments in Civil and

Inability to enforce

out below. When negotiating a contract:

Commercial Matters, the PRC has agreed to

The PRC courts may refuse to enforce an

• Ensure that the correct names and addresses

enforce certain Hong Kong judgments and

English arbitral award if:

of the parties are included in the contract in

awards. There are conditions attached, including

• There is no arbitration agreement or the

both Chinese and English – do not use

that (i) the contract must have a “choice of

agreement was invalid.

court” clause; (ii) the judgment must be from the

• The party against whom the award was

District Court of Hong Kong or higher; and (iii)

made had insufficient chance to defend

the judgment must be a final judgment requiring

themselves in arbitral proceedings.

payment of money (not an injunction or interim order).

• The matters decided upon fall outside the scope of the arbitration agreement/ arbitration commission.

88

theBaltic WInter 2010 www.thebaltic.com

abbreviations – and check that the company is properly registered at the relevant local company registry.

• If possible, ask the Chinese company to affix its company chop.

• Ask for evidence that the person negotiating on behalf of the Chinese company has

Legally speaking authority to bind the company.

enforcement proceedings are commenced,

process by both fax and courier.

subject to countersecurity being provided.

â&#x20AC;˘ Seek written agreement that should a dispute

For service of notices in relation to arbitration,

arise, payment into an escrow account

obtain a translation from English to Chinese and

Enforcement proceedings in the PRC must

outside of China will be made.

use a courier to serve notices in both English

be commenced within two years from the date

and Chinese, even if the agreement provides for

of award.

service by fax.

Arbitration and Enforcement

Ensure

you

obtain

notarisation

and

For more information, please contact Brian

When a dispute arises, engage local lawyers

legalisation of important documents (ie award,

Perrott, Partner at Holman Fenwick Willan LLP,

to advise on local issues which may affect

contract) in time, together with translations â&#x20AC;&#x201C; it

on +44 (0)20 7264 8184 or brian.perrott@hfw.

enforcement.

is essential to provide originals wherever these

com or Alice Paterson, Associate, on +44 (0)20

are available.

7264 8471 or alice.paterson@hfw.com.

Mr Song, Partner at Commerce and Finance Law Offices in Beijing, explains that it is important for parties to maintain evidence of service of

A claimant may apply for a property preservation

order

in

the

PRC

before

theBaltic Winter 2010 www.thebaltic.com

89

Commercial profiles

Dawn of a new era in heavylift H

artman Shipping is the proud owners of a new mini heavy lifter delivered in October

2010. The m.v. Pacific Dawn is built with speed in mind. It is designed for the transportation of small heavylift cargos below 3000 GT. The ship has been outfitted with two heavylift cranes of 120mt WLL which can lift in combined mode a weight of 240mt. Pacific Dawn has an enviable speed of up to 19.0 knots and a fuel consumption of only 15mt/day(HFO 380) .The cargo hold has 10 pontoon hatches, six removable pontoon tween decks and two removable bulkheads.

Hold/Hatches sizes

Bunker/ballast capacity

Number of holds: 1; Hold capacity: 4,396 cu m /

Heavy fuel oil: 400m3; Marine gas oil: 84m3;

155,243 cu ft, Upper hold length: 63.6mt

lubricating oil: 15m3, Fresh water: 49m3; Ballast

Lower hold length: 31.5 mt; Upper hold

water: 2.560m3

breadth: 11.5 mt; Lower hold breadth: 11.0 mt Hold height: 8.15 mt (cargo hold prepared

Cranes: 2 x 120mt WLL; Type: Liebherr CBB

explosives excluded)

120 (81) - 16 (24); Outreach/loads: 120mt/ 3.5 -

Upper hold height: 4.63mt; Lower hold

m.v. Pacific Dawn

Cargo gear

for cable reels up to 8.6 mt; IMO cargo fitted,

height: 3.50mt; Hold floor surface: 1,039 mt2;

16mt, 100 mt/20-24 mt Tandem load: 240mt, swl

Deck length: 72mt; Deck breadth: 15.4mt;

Mini heavy lifter

Deck floor surface: 950mt2

Registration Ships name: Pacific Dawn; Call sign: P.B.T.M.;

Load distribution

IMO

Tank top upper hold: 12mt2; Tank top lower

number:

9558464,

MMSI

number:

245118000 Owners: Hartman Shipping 1 BV; Port of registry: Urk; Flag state: the Netherlands;

hold: 15mt2; Tween decks: 2.5mt2 Tween decks each: 154mt2; Hatch covers: 3.4mt2, Hatch covers each: 249mt / cover

Shipyard: Hartman Marine Shipbuilding Date of Delivery: October 2010; Class

Container Capacity

notation: Bureau Veritas I 3/3 E* Deep-sea*

Hold capacity: 73 TEU; Deck capacity: 133 TEU;

Mach* AUT- MS General cargo/containership,

Total: 206 TEU

heavy cargo (15 mt2) unrestricted seagoing service

Hatch covers/tween decks Type of hatch covers: 10 pontoon hatches;

Tonnage

Tween deck covers: six removable pontoons;

Displacement: 5,486 tonnes; Deadweight: 3,500

Bulkheads: two removable bulkheads

dwt; Gross tonnage: 2,981

Propulsion/Manoeuvring

For more information, please contact:

Ships dimensions

Main engine: Wartsila 8L32 3680 KW; Bow

Hartman Shipping

Length over all: 104.8mt; Length between p.p.:-

thrusters: 300 KW; Stern thrusters: 250 KW;

Rijswerker 1 - 8322 BN Urk

98.2mt; breadth moulded: 15.6mt;

Rudder: Balance rudder; Service speed at 5m

the Netherlands

draught: 18 Knots; Service speed ballast: 18.0

Tel: + 31 527 690171

Knots; Fuel consumption: 15mt/day (HFO 380)

E-mail: info@hartmanshipping.com

Summer draught: 5.81mt; Depth moulded: 7.40 mt; Keel to top mast: 26.5mt

90

theBaltic Winter 2010 www.thebaltic.com

Commercial profiles

Studio Navale Canepa S

tudio Navale Canepa S.r.l., established in

• Risk assessment of ships (JH2006/010)

Genoa, Italy in 1970, has provided expertise

• Office

for over 40 years in the maritime fields of naval

management

assessment

(JH2006/10C)

architecture, marine engineering, ship surveys,

• Yacht and small craft damage surveys

yachts and pleasure boats surveys, risk assess-

• Technical arbitrations

ment and loss prevention, particularly to the

• Preparation of technical specifications

Marine Insurance and P&I industry.

• Cost evaluations

From the head office in Genoa, surveying activities are carried out worldwide either through direct involvement of the in-house surveyors or through a well established and reliable network of local correspondents created through years of

NAVAL ARCHITECTS – MARINE CONSULTING ENGINEERS

• On-site

supervision

of

new

HULL & MACHINERY SURVEYORS – FORENSIC EXPERTS

buildings,

conversions and repair works • Expert witness to the Legal and Insurance sectors • Specialised design and calculations

personal relationships.

Studio Navale Canepa has built up a multidiscipline technical structure, providing the Maritime Community with highly specialised

Efficient and effective teamwork has been established with:

technical expertise and experience gained

CSL Global – www.cslglobal.com

through the involvement in hundreds of major

SINM – www.sinm.it

For more details, contact us at

cases.

CGM – www.cgmarine.it

studio@canepa-marine.it

Stige Surveys – www.stige.co.uk

or

The core business of the firm includes: • Ship’s hull and machinery damage surveys • Ship and machinery condition surveys

Tel: +39 010 5959776 Each partner is accustomed to efficiently

Via G. D’Annunzio 2/88 – 22nd fl.

• Marine casualty investigations

share knowledge and experience, to provide a

16121 Genova, Italy

• Risk assessment of shipyards (JH143)

complete service to the Maritime industry.

www.canepa-marine.it

Port-IT promoting standards with its new CIOS standard ship server B

ased in Rhoon, close to Rotterdam, Port-IT

ship standard server solution, CIOS. Many

standard, rough fitted server packaging that

serves the maritime industry. It has grown

clients combine the use of the value added

involves no moving parts or active cooling,

steadily since 2007 and has maintained its qual-

services as these vessels profit from a 20%

and on request can also be supplied in a type-

ity profile all the way though the economic crisis

discount on all onsite service visits.

approved marine package.

that has been felt in the Dutch shipping industry

As many shipping companies have come to

Port-IT wants to supply the best solutions

up to this year. Using the extended service area

realise, central e-mail and data storage solutions

at the best prices available, but also the best

of roughly 250km from Rotterdam, Port-IT has

onsite are too important to leave to chance;

technology. CIOS can now be used with FBB,

been able to provide onsite service work and

Port-IT engineers have devised a standard ship

VSAT or F77 but the system can also easily

maritime software services to a wide array of

server that can be customised to the needs of

be used with new upcoming services such as

clients, including Ocean Shipmanagement, MOL

the client, using various block modules. CIOS,

Global Xpress.

Shipping, Stratos Global, Clipper Group and

which stands for ‘Communications Interactive

FML. Its current onsite services primarily focus

Operations System’ provides ICT assuredness

on the activation and installation of hardware,

to vessels’ communications, critical documents

such as the full range of FBB communications

storage, remote administrative interfacing and

solutions, on occasion complemented with the

direct fleet broadband operations, combined

Blue Ocean Wireless GSM solutions. These

with a bi-directional firewall controlling both

activities often evolve via various interventions

incoming and outgoing network traffic to

into full service contracts or supported replace-

the communications subsystem. CIOS can

ment of the vessel’s IT infrastructure.

optionally be fitted with virtualisation to supply

Tel: +31 (0)6 51 068981

Port-IT combines the onsite service portfolio

an Amosconnect-8 and Skyfile compatible

Fax: +31 (0)10 892 07 57

with the value added services of Maritime

server environment for mail exchange. The

E-mail: service@port-it.nl

Antivirus, Maritime AntiMalware and the new

CIOS standard ship server is offered in industry

Website: www.port-it.nl

theBaltic Winter 2010 www.thebaltic.com

91

Commercial profiles

BASS AS E

most prestigious class societies.

stablished in 1997, BASS is a key market

built on Microsoft.NET platform provides your

player in the global maritime software indus-

organization with one integrated solution. It

try, specializing in solutions and services tailored

is a modular application and therefore allows

Regular improvements

to ship owners and managers, rig operators,

your business to build its own configuration by

The scope of solutions offered by BASS is

FPSOs and offshore units worldwide. More

selecting the modules that best fit the needs of

continuously being widened. The Vetting module

than 100 customers and over 1,000 vessels are

the operation. BASSnet allows your organization

is the latest release that highlights BASS’s

utilizing BASSnet™ Fleet Management Systems

to ‘build as you go’, adding modules when

innovative approach. This is a powerful software

to ensure regulatory compliance, improve asset

needed. The BASSnet suite covers all of the

module that helps organizations to manage their

management and enhance document control.

main areas of maritime operations through

vetting inspections. It provides transparency of

its wide range of applicationmodules – from

vetting across an organization’s fleet as it allows

Linking strategy and operations

Maintenance,

Docking

for planning, preparation and maintenance of

Unless companies continuously improve their

Projects, Operations, Document Management,

approvals from all charter’s and oil majors.

processes, operating costs will threaten margins

Reviews

Safety

This is a fundamental module for tanker and

and the ability to sustain profitable growth.

Management to Risk Management, Financials,

gas carriers as the commercial implications of

BASSnet provides the tools required to make

HR Management and Payroll.

not complying with these requirements can be

&

Procurement, Improvements

Dry and

severe. Consequently, the new module can save

informed decisions based on integration and sharing of data. Intelligent alerts and a clear

Innovative approach

your organization both time and money, and

overview provide full control over operations

BASS allocates 25 per cent of its annual costs to

also help it to stay on top of the ever changing

ashore and on board. To avoid reliance on

product innovation; ensuring their the software

regulations.

technologies that may become obsolete, BASS

solutions are not only effective, future proof

uses a mainstream development platform,

and easy to use but also meet the demands

Europe/Americas: BASS AS

Microsoft .NET.

of shipping companies today and tomorrow.

Tel: +47 6710 5520

This dedication to innovation has distinguished

Asia Pacfic: BASS Sdn Bhd

Modular advantage

BASS as one of a select few maritime software

Tel: +603 2173 6488

The BASSnet Fleet Management Systems

companies with class approvals from five of the

Contact@BASSnet.no

GIBSON SHIPBROKERS Ltd SHIPPING ENERGY Recognised as one of the world’s leading

enviable and substantial in-house consultancy

requirements. There is concern about the high

shipbrokers, Gibson is proud of its 117-

team, which also undertakes specific project

number of new product tankers to be delivered,

year heritage. We provide our clients with a

work to a wide variety of clients engaged in the

but this will come to an end over the next 12-18

professional platform of global shipping expertise

maritime industries.

months. All things being equal, patience will

and activity, which has been further enhanced by

The clean product section has been at

need to remain the order of the day, but as they

recent expansion. Gibson currently operates

the forefront of Gibsons for the past 28 years.

say in the marketing adverts ‘The future’s bright’,

from Hong Kong, Shanghai, Singapore, and

Danny Proudfoot has been a leading broker in

but not just yet!

Oslo, and is headquartered in London.

this section and he continues to mentor new

A core strength of Gibson is its diversity of

members of the team and guide the successful

market coverage. This includes crude, fuel oil

global desk from London. The Gibson clean

and clean product tankers in the spot and period

team was one of the first to recognise the need

markets. Our specialised section operates in

to retain a constant focus on specific markets

the chemicals, biofuels and veg oil markets,

and to this end we have a strong presence in

whilst LPG and LNG broking also includes

both the Eastern and Western markets. Our

an active gas product broking desk. The dry

expertise, experience and worldwide coverage

bulk team focuses on the cape and panamax

can play a vital role, especially in today’s market.

markets and the offshore department also

So, what of the future? Looking at the

includes substantial coverage of the subsea

IEA and other respected commentators, oil

16-20 Ely Place

and renewable sectors. In sale & purchase, the

consumption and production will increase year

London EC1P 1HP

newbuild, resale and demolition sectors are all

on year. In addition, established trade routes are

Tel: +44 (0) 20 7667 1000

actively worked. All of this is supported by an

being challenged by new players with long haul

www.gibson.co.uk

92

theBaltic Winter 2010 www.thebaltic.com

Gibson Shipbrokers Ltd

Commercial profiles

We understand water & wastewater treatment A

s the market leader in the design and

water discharge requirements. Environmentally

the only marine sewage treatment devices

manufacture of electrochlorination seawa-

safe and easy to maintain, BALPURE offers

that oxidize sewage in an electrochemical cell

ter disinfection systems, Severn Trent De Nora

an operating cost of less than E0.016 per m3

as well as generate sodium hypochlorite from

brings more than 30 years of marine equipment

of ballast water treated. Ideal for high ballast

natural seawater for the disinfection of sewage

experience to the treatment of ballast water and

water flow rate applications, the BALPURE

streams. Electrolytic treatment of marine sewage

marine sewage.

system can offer energy savings of more than

eliminates chemical storage issues, dosing

At Severn Trent De Nora we understand that

60% compared to competitive technologies.

equipment and costs associated with the use

it’s important to find a ballast water treatment

BALPURE has received final approval from the

of hazardous chemicals, since the disinfection

system that’s best suited for your application.

IMO.

solution is produced on site while the unit is in

That’s why we’ve designed the BALPURE®

At Severn Trent De Nora we also understand

system with easy-to-separate sub-assemblies,

that marine applications generate sewage

eliminating the requirement for design changes

that can contain contaminants which have a

to your engine room.

detrimental effect on water quality and the

Ballast water is the most frequently cited

overall marine environment. That’s why we’ve

cause of the introduction and transfer of non-

developed a lightweight system, designed with

indigenous species (NIS) into waterways. Ballast

a small footprint, to provide effective electrolytic

water treatment systems, especially those based

treatment of both black and grey water through

on electrochlorination disinfection, are a proven

a patented and certified treatment process.

approach to limiting the introduction and transfer of NIS.

Our OMNIPURE™ Series 55 and MARINER

operation.

1110 Industrial Blvd Sugar Land, TX 77478 USA

OMNIPURE® Series M55 marine sanitation

T: +1 281 240 6770

The patented BALPURE system is an

systems have received Type Certification

F: +1 281 240 6772

effective and economical electrochlorination

Approval from Bureau Veritas for IMO Resolution

E: sales@severntrentdenora.com

solution which meets the most stringent ballast

MEPC.159(55) regulation. These systems are

W: www.severntrentdenora.com

Doris Maritime Services S.A. D

• Managing COAs of commodities in bulk.

oris Maritime Services S.A. (Doris) is a Swiss

honours from the University of Wales in 1975

service company to the maritime industry,

with a BSc (Hons). In 1975 he joined Tradax/

Doris & Naess concentrates its activities

established in Geneva in 1983 by Mr Nicolas

Cargill, and from 1977 until today has managed

in the management of dry cargo bulk carriers,

Wirth. Naess Ship Management B.V. (Naess)

ships and has been in charge of a fleet of over

containerships and bulk cement equipment.

originated from Naess Holland (founded back

1 million dwt.

Ships range from 6,000 dwt container feeders

in the early 1960’s by Earling D. Naess). Naess

Doris & Naess provide excellent and

Ship Management B.V. was formed in 2003.

economical

Naess has a substantial holding in Pearl Grace

including:

Inc. of Manila.

ship

management

services,

and multi-purpose vessels, to 3,600 TEU container carriers and panamax bulk carriers.

With a broad experience in the field of

•

Crewing

shipmanagement and ship’s operations from

Both Doris and Naess belong to the same

•

Repairs and maintenance

1983 onwards, with an excellent staff, good

shareholder, working along with Pearl Grace.

•

Class and trading certificates

and faithful crews, Doris & Naess is well placed

Doris & Naess:

• Insurance covers

to market and operate in this segment, taking

• Has a strong entrepreneurial bias

•

Claims handling

advantage of its experience, and its close

• Is a hands-on company

•

Resolving problem projects for banks

contacts in the trade.

• Employs over 650 qualified employees at sea

•

Research and consultancy.

• Has offices in Geneva, Amsterdam, Malta

Doris & Naess currently successfully conduct

and Manila: close to the clients, close to the

the following activities:

staff’s home and close to the ships.

• Technical ship management as a base activity

Nicolas Wirth, the General Manager, has

• Commercial ship management

dual British and Swiss nationality. He spent 10

Doris & Naess operates an ISO 9001:2008 and ISM Code certified management system.

and ashore worldwide

• Consultancy work for banks and larger

Doris Maritime Services S.A.

years at sea in the merchant marine, acquiring

companies

Tel: +41 22 301 1112

considerable practical experience in all aspects

• Ship financing

Email: doris@doris.ch

of shipoperation; he later graduated with

• Ship chartering, and sale & purchase

Website: www.doris.ch

theBaltic Winter 2010 www.thebaltic.com

93

Commercial profiles

GFI Group – Dry Cargo desk G

FI Group through its varies subsidiaries

enabled the dry cargo desk to service long-

that is able to ensure a truly comprehensive and

has been building liquidity and expertise in

term contracts on each commodity as well as

professional service to all of its customers from

more than 160 markets and for over 20 years;

period charter cover, thereby assisting clients

pre loading to completion.

its network of offices has helped deliver global

in hedging their exposure.

coverage with full and comprehensive services

desk offers shipowners, charterers, energy

Team growth

to its clients.

companies, trading houses and financial

The dry cargo team has grown by approximately

Within GFI’s commodity division sits the freight

institutions the ability to hedge and manage

700% since its launch in 2005, both through

brokerage services. GFI understands the need

portfolio freight exposure more effectively whilst

organic growth and acquisitions, led by customer

for an efficient freight brokerage and as such it

at the same time developing alternative trading

needs and market changes. The team continues

brings together expertise from both physical dry

strategies to physical hedging, by offering clients

to grow its business in all aspects of the industry

freight (dry cargo) and freight derivatives desks,

invaluable insight into other interrelated markets

and locations due to its expertise being highly

with further expertise leveraged from across

and commodities.

sought, prized and recognised. GFI is a member

other GFI specialist commodity desks such as iron ore, coal etc.

GFI’s shipping

The dry cargo desk has daily contact with

and a panellist of the Baltic Exchange.

major shipowners and charterers across a variety

The dry cargo desk is able to offer its clients

of sizes in all global locations; it is because of the

tailored hedging strategies and a complete

strength and trust in these relationships that GFI

structured risk management solution in service

is able to offer a comprehensive understanding

shipping.

of market movements and trends.

GFI Dry Cargo London + 44 20 7877 8151

Hedging and portfolio management solutions

Dedicated customer service

New York + 1 212 968 2211

The dry cargo desk prides itself in also offering

Shanghai + 86 21685 96721

GFI’s strong presence across a variety of other

its customers extensive ‘Customer Service’,

Singapore + 65 6435 0471

commodities, ie grain, coal, bauxite, and iron

which consists of a dedicated operations team

E-mail: drycargo@gfigroup.co.uk

ore, as well as other bulk commodities, has

with over 100 years’ experience in the industry

Website: www.gfigroup.com/freight

ith a fleet of powerful tugs, the Curacao

that our clients receive the most effective and

with state-of-the art fire fighting, salvage, and

Towage Company provides superior tow-

professional service.

telecommunications equipment.

KTKTUGS W

age and salvage services in the Caribbean,

As experts in the towage and salvage field,

We pride ourselves on the proven strength

Central America and the northern coastal

our employees are involved in every stage of

and ability of our tugs, the engines and the

regions of South America.

client service, offering continual functional and

machinery, which we have used effectively since

technical support.

1985.

Our services include ocean towage, harbour and coastal services, barge and dredger

Our experienced employees have degrees

The Curacao Towage Company has the

transportation, fire fighting assistance, port

from Dutch nautical schools and constantly

expertise to turn strength into power; the power

and terminal towage, crew management and

keep up to date on the latest technological

to tow thousands of vessels a year. We have

training, and technical maintenance, all based on

developments. Our close relationship with the

the ability to provide a range of professional,

the Lloyd’s Register Quality Standards.

Dutch Marine Division makes its expertise,

reliable and efficient services, not only in the

support and guidance readily available.

bustling Curacao harbour, but also throughout

Our mission statement is: “Through expertise, strength becomes power” and our vision is

Our

extensive

skills

encompass

all

the Caribbean, Central America and the northern coastal regions of South America.

to position Curacao Towage as a strong and

aspects of implementation and operation,

reliable towage Company, serving both the

including business requirements definition and

Our exceptional team members, who all

domestic and international sectors.

development of functional specifications for

possess nautical, technical and management

client approval. Additionally, we offer continual

skills, as well as extensive maritime knowledge,

online client support and contact.

make the Curacao Towage a strong and reliable

We aim to exceed the expectations of every client by offering outstanding customer service, increased flexibility, and greater value, thus

Our powerful tugboats are available 24 hours

optimising system functionality and improving

a day, able to provide immediate assistance

operational efficiency.

company.

under any circumstances. Our ASD tugs can pull

For more information, please contact:

Our company is distinguished by its functional

at a 360º angle, making them exceptional guides

Tel: +599 9 461 1055

and technical expertise combined with hands-

for all kinds of ships manoeuvring in difficult

Fax: +599 9 461 2055

on, experienced employees, thereby ensuring

conditions. Our tugboats are all equipped

Website: www.ktktugs.com

94

theBaltic Winter 2010 www.thebaltic.com

Commercial profiles

BI Norwegian School of Management Self-owned foundation

aware of ethical dilemmas and challenges, and

programmes, a range of Master of Science

BI Norwegian School of Management is a self-

take personal responsibility for handling these.

programmes, Executive MBA programmes and five doctoral programmes, extensive continuing

owned foundation whose purpose is to conduct education and research at a high international

Accreditation and ranking

and further education, Internet studies, tailor-

level

BI obtained the status of ‘Specialised University

made in-house programmes and management

Institution’ in 2008, after NOKUT (the Norwegian

programmes. BI offers special study provision

Agency for Quality Assurance in Education)

within insurance, commodity trading, banking

Vision

gave its approval on 27 February 2009. BI has

and finance and shipping.

Its professional strength and relevance makes

been EQUIS accredited since 1999 as one of

BI Norwegian School of Management a leading

only 110 business schools in the world. We

International activities

business college in Europe.

are one of the 100 most recognised business

• Collaboration

within

management,

administration,

economics and marketing.

agreements

with

148

schools from a total of over 4,000 such colleges

universities and business schools in 40

Values

in the world (one of 35 in Europe) in the “Top

countries around the entire world, and many

BI takes quality and independence as the

Business School Worldwide 2008” survey. We

basis for its optimum research, education

are amongst the 65 best suppliers of tailor-made

• Special MBA programme in China in

and intermediation for students, the business

in-house programmes in the world and provide

collaboration with Fudan University School

community, the public sector and positive social

the 117th best MBA programme in the world

development. We are an independent business

(2008) according to the Financial Times.

of Management.

• Chief owners of the ISM University of Economics and Management in Lithuania

school, which is future orientated, research based, business focused, and international.

exchange students.

Education and research

with 2,000 students.

• Strategic

collaboration

with

Nanyang

We conduct our work with quality, integrity,

BI has one of Norway’s leading academic

relevance and the ability to adapt and change.

environments within the core areas of financial

University of Technology in Singapore, ESCP/

BI creates effective and highly professional

economics, strategic management, marketing,

EAP European School of Management in

training by coordinating its resources across the

leadership and organisation, and innovation

Paris, and University of California, Berkeley.

organisation. Our managers and employees are

and entrepreneurship. We offer two bachelor

Greenhouse gas (GHG) regulation is coming to shipping. It’s not a case of ‘if’, but ‘when’

T

and implement projects and specific steps

he history of emissions regulation in other

The company now brings this experience to

industry sectors suggests that sooner or

shipping. Not just to help ship-owners, managers

within those strategies. Our work thus involves

later market-based measures such as fuel levies

and others prepare for regulation but to help the

developing programs to manage emissions

and emissions trading are likely to emerge in

industry shape the best regulatory system it can,

compliance, conducting economic analysis of

some form in shipping. Carbon Positive believes

working with the regulators. We are on that path

the emission control options, identifying and

the long-term interests of the maritime industry

now, developing voluntary emissions trading

assessing technological solutions to reduce

are best served by such a market-based sys-

experiments to inform both the development of

emissions, as well as formulating financing and

tem; one that offers flexibility to ship-owners and

regulation and the shipping industry’s response

trading strategies to maximise cost effectiveness

operators in how they go about reducing their

to it. Where possible, we will seek credit for

and manage risk.

emissions, and also one in which the industry

early action by owners and operators to reduce

has had a say.

emissions ahead of mandatory requirements.

Carbon Positive helps shipping learn, prepare and act.

Market measures best deliver this flexibility,

Once regulatory programs are set, we’ll help

enabling ship-owners to choose the most

shipping entities manage the compliance risks

suitable, least-cost compliance solutions. We

and benefit from the trading opportunities that

base this contention on experience – the Carbon

will follow. Every business’s circumstances are

Positive team has been involved for 30 years in the

different. Firms must decide which strategy suits

Carbon Positive Services Ltd

development of, and compliance with, emissions

them and it can take years to analyse, identify,

5 Koumbari str.

regulations. Back to their very beginnings with

cultivate, finance and implement greenhouse-

Athens 106 74, Greece

the ‘Bubble Policy’ of the late 1970s in the United

gas emissions compliance strategies.

Tel: +30 210 364 2304

States, and then ‘acid rain’ sulphur regulation in

Carbon Positive will assist clients identify

the late 1980s. We provide consulting services to

the best strategies to meet environmental and

E-mail: info@carbonpositive.com

emitters of GHGs and other air-borne emissions.

commercial goals, select the preferred strategy,

www.carbonpositive.com

theBaltic Winter 2010 www.thebaltic.com

Fax: +30 210 362 3336

95

Commercial profiles

N.E.I. Company Profile N

.E.I. Treatment Systems is a pioneer and

• First with multiple orders for BWTS with flow

service in 20 countries through its exclusive

rates greater than 4,000 m3/hr.

network of licensees, sales representatives

cial ships with Ballast Water Treatment Systems

Venturi Oxygen Stripping™ (VOS) BWTS

and service providers. N.E.I.’s exclusive license

(BWTS) that protect the world’s oceans and

induces a low-oxygen environment within the

agreements with Mitsubishi Kakoki Kaisha in

waterways from invasive aquatic organisms.

ballast tanks that safely and cost-effectively treats

Japan and Samgong in Korea include the

N.E.I.’s patented Venturi Oxygen Stripping (VOS)

ballast water for invasive aquatic organisms. This

manufacturing and distribution of VOS Systems

BWTS used deoxygenation and cavitation to

low-oxygen, non-toxic environment also protects

to N.E.I. customers worldwide.

ensure 100% compliance with IMO’s Ballast

ships’ ballast tank coatings against deterioration

Tank Discharge Standards, without the use of

and steel surfaces against corrosion, thereby

active substances or filters.

extending the useful life of the ballast tanks –

market leader in provisioning large commer-

N.E.I. has been setting the pace for BWTS

and the vessel itself – to more than 35 years.

industry since 2002. Originally formed in 1997, consulting services to the utility and oil and

VOS™ BWTS delivers five core benefits:

gas industries prior to focusing exclusively on

• Complies 100% with IMO Ballast Tank

N.E.I. provided environmental engineering and

ballast water treatment solutions in 2002. Key milestones include: • First

to

complete

Discharge Standards • Lower corrosion extends ballast tank life to

shipboard

trials

of

deoxygenation BWT solution • First to receive a BWTS Type Approval Certificate in 2007 • First to receive multiple Type Approval Certificates • First to install BWTS on tankers, bulkers and container vessels

greater than 35 years

For more information, please contact:

• Delivers the industry’s lowest BWTS life-cycle cost

Address: 3530 Wilshire Boulevard, Suite 1130, Los Angeles,

• Explosion proof system design uses no active substances or filters

California, 90010, U.S.A. Tel: +1-213-383-5855

• Operates in all ports and all types of water –

Fax: +1-213-383-5755

does not limit ships’ trading range

E-mail: info@nei-marine.com

N.E.I. has a worldwide reach with sales and

Website: www.nei-marine.com

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

96

theBaltic Winter 2010 www.thebaltic.com

clients

risk-free,

It is our goal and our duty to surpass clients’ expectations, every day.

high-standard

Commercial profiles

SAL Company Profile F

ounded in 1980, SAL has emerged to

in innovative shipbuilding. Therefore, two more

Besides the technological hardware, SAL also

become one of the leading heavy lift carriers

newbuildings have been ordered with delivery

places a heavy emphasis on the development

in the world. In 2007, SAL entered a 50/50 joint

dates in 2010 and 2011. These vessels will

of its staff, both on shore and on board the

venture with the Japanese “K” Line group. The

maintain the unrivalled speed of 20 knots and

vessels. In the main office, SAL’s clients are

company’s main office is located in Steinkirchen

will be equipped with two cranes of 1,000 mt

served not only by commercial and operational

just outside of Hamburg, Germany. In addition,

SWL each. The unprecedented lifting capacity of

specialists but also by a professional engineering

SAL has developed an extensive international

2,000 mt SWL, their crane outreach of 38m, as

team in charge of developing innovative and

network of agencies and subsidiary offices in

well as their ability to trade with an open hatch,

custom-made transportation solutions. SAL’s

Japan, China, Great Britain, Italy, Australia,

make these vessels an important asset in the

own crewing agency in Manila is responsible for

Finland and Houston. Including onboard crew,

heavy lift market. The newbuildings will also be

careful recruitment and continuous training of

SAL today employs a team of more than 500.

equipped with a Kongsberg Dynamic Positioning

qualified crew.

The SAL fleet currently encompasses 14

system, which allows for better positioning in

modern heavy lift vessels with a high service

offshore projects, including the windmill sector.

speed of 20 knots, and each featuring its

The vessels will further pursue SAL’s dedication

own onboard cranes. The types of cargoes

to a safe and environmentally friendly setting on

transported range from heavy machinery,

board. All recent and upcoming newbuildings

floating cargo, windmills, power plant equipment

are equipped with an ‘environmental passport’

to cranes and offshore oil and gas equipment.

which certifies that they comply with the highest

SAL Schiffahrtskontor Altes Land GmbH & Co.

In 2008, a comprehensive newbuilding

environmental protection specifications. In

KG

program was launched, and by 2009, four

addition, the ships are certified in accordance

Bürgerei 29, 21720 Steinkirchen, Germany

vessels with a combined crane capacity of

with ISO 14001 and OHSAS 18001. These

Tel: +49 4142 81 81 0

1,400 mt SWL were delivered. Despite the

technical and ecological preconditions ensure

Fax: +49 4142 81 02 81

global financial crisis which has affected the

that the vessels are prepared for employment in

E-mail: sal@sal-heavylift.com

heavy lift sector, SAL decided to further invest

future markets.

Website: www.sal-heavylift.com

LCH.Clearnet Ltd

The world’s leading independent clearing house

O

The benefits to trading parties are clear:

market, legal and liquidity risk, we ensure that

asset classes than anyone else globally, both

• Significantly reduced counterparty risk

margin cover is set at appropriate levels.

exchange traded and over the counter (OTC).

• Increased trading opportunities

• Uniquely, we have over 10 years’ experience

• Ability to net-off long and short positions,

ur experience as a clearing house goes back over a century, and today we clear more

of clearing OTC • We are the No. 1 clearing house for FFAs, with over 80% of the cleared dry market

leading to:

Driving all our risk management activities is a dedicated team of over 50 risk managers, who share a wealth of experience and a convincing exchange-traded and OTC. Isabella Kurek-Smith

OTC default

We have an unequalled reputation for reducing risk across a wide span of markets globally.

We’re committed to setting and maintaining

• Our technologies are very, very intelligent

the very highest standards, across all our

• And we’re independent – so ‘conflict of

services and all the asset classes we clear.

interest’ issues don’t arise

counterparty,

record of successfully managed defaults – both

Risk management is at the heart of what we do

second to none

evaluating

• Enhanced liquidity

only clearing house to have managed an • Our standards of risk management are

constantly

• Reduced costs of trading

• We have a track-record of five defaults successfully managed, and in fact we’re the

By

Our robust risk management framework affords exceptional levels of protection to

Why use a clearing house?

clearing members, as demonstrated by our

Director, Head of Energy & Freight Markets

A clearing house acts as a go-between when

successful handling of the Lehman Brothers

LCH.Clearnet

two parties trade. As guarantor of the trade, the

default well withinthe margin held, and without

Tel: +44 20 7426 7460

clearing house bears any monetary risk involved.

loss to any other members.

E-mail: Isabella.kurek-smith@lchclearnet.com

theBaltic Winter 2010 www.thebaltic.com

97

Commercial profiles

When it matters most C

oncateno is the leading drug and alcohol

maritime guidelines (eg ISM and ISPS Codes)

simple test can help you manage your health

testing organisation; a service provider with

and Charterparty Clauses (eg ExxonMobil).

and safety procedures for staff that may be in

the facilities and expertise to genuinely deliver

The expectation is that shipping companies

contact with this highly toxic chemical.

test programmes to meet any requirement –

should have random and emergency ‘for cause’

from point-of-care instant tests, through to

drug and alcohol testing in place, as well as

state-of-the-art laboratory analysis for any bio-

testing during routine medicals. Concateno’s

logical specimen, including urine, oral fluids

programme management service mobilises an

and hair.

international network of collecting officers to

Concateno’s 300 staff support more than

keep your random alcohol and/or drug screening

8,000 customers globally, and the group

programmes on target, and our emergency test

performs approximately eight million tests

kits are designed for the occasions when our

annually. An integrated network of more than

on-call drug/alcohol testing service cannot be

400 sample collection officers, trained in-house

deployed.

in chain-of-custody procedures, supports clients around the world.

Committed accreditation

to and

the

highest

quality

levels

assurance

of and

The maritime industry uniquely has to provide

working actively within the industry to improve

its own emergency services whilst at sea – “all

existing best practice, Concateno maintains

Concateno

seafarers must be able to respond at any time

the international quality benchmark ISO 17025

92 Milton Park,

to an emergency situation” (Oil Companies

standards for drug testing (independently

Abingdon,

International Marine Forum Guidelines for the

audited by UKAS), ISO9001:2000, Link-Up, and

Oxfordshire,

control of drugs and alcohol onboard ship). The

ISO13485:2003. In addition, the company is

OX14 4RY,

industry also has a high awareness of the threat

subject to a range of external and internal quality

UK

of drug trafficking.

assurance programmes.

Tel: +44 (0)1235 861 483

There is local legislation on drugs and

We also provide chemical testing, with a

alcohol, international agreements (eg OPA 90),

benzene exposure biomonitoring test. This

Email: enquiries@concateno.com www.concateno.com

Borenius & Kemppinen B

orenius & Kemppinen is an international law

and purchase of vessels, pollution and ITF

(eg P&I), hull and machinery insurance and on all

firm offering a full range of services to both

matters.

other transport insurance matters.

domestic and international corporate clients.

Due to Finland’s geographical position

The firm has offices in Helsinki, Espoo and

multimodal transport by sea, road and rail plays

Tampere in Finland. The Borenius Group also

an important role for the flow of goods to and

comprises law firms in Tallinn, Riga and Vilnius.

from Finland. Our country’s position as next

Today Borenius & Kemppinen also offers

door neighbour to Russia also means that some

services in the field of maritime and transport

of our ports serve as important transit inlets for

law and marine insurance. On 1 January 2009

the flow of cargo bound for Russia. To serve

Aminoff & Weissenberg Attorneys Ltd, a niche

this trade freight forwarding, warehousing and

firm having specialised in maritime, transport

transshippment form an important part of the

For full information on shipping and transport

and insurance law and gained a reputation as

transport industry.

matters please contact:

one of the leading firms in this field in Finland,

Air carriage is an important means of

merged with Borenius & Kemppinen. As a result

transport especially for the manufacturing and

Tel: +358 9 6153 3529

of the merger Borenius & Kemppinen is now

development of high technology and other

E-mail: jan.mninoff@borenius.com

also offering pre-eminent services to maritime,

valuable products in Finland.

transport and insurance clients.

Borenius & Kemppinen provides services and

Jan Aminoff

Ulla von Weissenberg

Close to 80% of the total Finnish foreign

advice on all aspects of multimodal, road, rail and

Tel: +358 9 6153 3460

trade volume is transported by sea and the

air transport including but not limited to issues

E-mail: ulla.weissenberg@borenius.com

involvement of foreign shipowners is significant.

concerning freight forwarding, warehousing

Borenius & Kemppinen provides comprehensive

carrier’s liability and contract drafting.

Attorneys at law Borenius & Kemppinen Ltd

services and advice in all areas of shipping law

Borenius & Kemppinen also advises clients

such as charterparty disputes, cargo claims,

on questions concerning marine insurance, such

Tel: +358 9 615 333

collision matters, salvage, general average, sale

as cargo insurance, carrier’s liability insurance

Fax: +358 9 6153 3499

98

theBaltic Winter 2010 www.thebaltic.com

Yrjönkatu 13 A, 00120 Helsinki, Finland

Commercial profiles

Van Ameyde Marine I

n the aftermath of a collision, shipowners

used to find the best solutions to limit the losses,

and other parties face multiple types of dam-

whilst we also monitor our principal’s interest. A

age, such as damage to hull, machinery and

report of facts is issued, which contains both

cargo. Liability aspects include fixed and floating

the extent and the causal aspects, all on a basis

objects and environmental damage resulting

without prejudice.

from oil spills. Worst of all, lives may be lost.

As a shipping company, a P&I Club, an

Van Ameyde Marine is an independent maritime survey company in the Netherlands,

insurer or a broker, you will be confronted

operating

with such aspects and more. Damage can

internationally for P&I Clubs and carriers. We

24

hours

a

day,

locally

and

have many causes and forms. Machinery

have a team of 15 experienced, well trained

breakdown, for instance, may be the result of

and educated surveyors, all of whom followed

substandard maintenance, poor quality bunker

Higher Nautical Education and have seagoing

oil or operational errors. Faulty machinery or

experience.

inadequate navigation can lead to collisions,

We have specialists on different types of

(DNV). Moreover, our staff includes trained ISM

either with fixed objects or other ships. A ship

cargo, such as fruit, chemicals etc. Additionally,

(International Safety Management) auditors. The

taking on water – either through leaks in the

our specialists deal with oil spillages, bunker

ISM Code aims to ensure the safe operation of

hull or the hatch covers – may damage the

disputes, operational issues, condition surveys,

ships and the prevention of human injury, loss of

cargo and mistakes made during lashing and

lashing/securing of heavy cargoes, consultancy,

life and environmental pollution.

securing may prove to be disastrous. Similar

mediation etc. Furthermore, our surveyors are

To keep abreast of the latest technology

scenarios can, of course, also apply to road and

excellent contingency managers: we co-ordinate

and developments, we are members of various

rail transport.

salvage operations and wreck removals, and

professional forums and associations, including

conduct General Average surveys.

the International Cold Chain Technology (ICCT),

We can be of service when incidents occur by attending the scene and investigating the situation. Our experience and knowledge will be

Our

company

has

an

approved

ISO

9001:2008 quality system by Det Norske Veritas

theBaltic Winter 2010 www.thebaltic.com

‘Careful to Carry’ forums, and the national association ‘Nivre’.

99

Events

What’s on where A round-up of conferences, exhibitions and events in the shipping world

January 17-18 Singapore Freight Derivatives & Shipping Risk Management Managing freight, bunker, interest and counterparty risk www.balticexchange.com/training January 19-20 Singapore 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

March 1-2 Dubai Ship Recycling Forum When it comes to scrapping ships, business is far from ‘as usual’. The forum looks at the problems, and the solutions, from green issues to getting the best price www.nhstevents.com/events/article568949.ece March 8-9 London Chemical and Product Tankers Outlook for vegoil, biodiesel and chemical trades; imminent regulation, PMSA and vetting, security, shipbuilding and finance. www.navigateevents.com

January 20 London London Ship Finance Forum www.marinemoney.com/forums/index.htm

March 9 Dubai Gulf Ship Finance www.marinemoney.com/forums/index.htm

February 8-9 London Freight Derivatives & Shipping Risk Management Managing freight, bunker, interest and counterparty risk www.balticexchange.com/training

March 21-22 Oslo Green Shipping Technology www.informaglobalevents.com/event/greenshiptechnology

February 10-11 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 February 24 Hamburg German Ship Finance Forum www.marinemoney.com/forums/index.htm February 28 – March 4 London International Time and Voyage Charterparties Seminars This intensive course will provide a solid foundation in this key aspect of shipping trade and present an invaluable opportunity to develop and update existing knowledge. www.informaglobalevents.com/event/timeandvoyage

March 21-23 Stamford Shipping 2011 Large international conference and exhibition run by Connecticut Maritime Association www.shipping2011.com 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

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 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 Istanbul Istanbul Ship Finance Forum www.marinemoney.com/forums/index.htm May 4 Houston Houston Offshore Finance Forum www.marinemoney.com/forums/index.htm

theBaltic Winter 2010 www.thebaltic.com

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