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
11
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
13
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
Continuity in an uncertain world™
Amlin Corporate Insurance
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Marine Rotterdam Tel: +31 10 799 58 00 marine.nl@aci.amlin.com Marine Antwerp Tel: +32 3 222 27 11 marine.be@aci.amlin.com
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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
Global leader in ocean towage
Hofpoort 16th Floor, 3032 AC Rotterdam Hofplein 20 The Netherlands
34
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. • Commercial Management Systems • Financial Management Systems • Technical Management Systems • Liner & Agency Management Systems • Disbursement Management Services
Contact information: email: sales@shipnet.no – ShipNet Norway Oslo Phone: +47 21 01 92 00 ShipNet UK Phone: +44 1375 484928 – ShipNet USA Norwalk Phone: +1 212 537 9298 ShipNet Singapore Singapore Phone: +65 6221 1877 – ShipNet Japan Tokyo Phone: +81 (0)3 5442 6121 ShipNet Hellas Piraeus Greece Phone: +30 210 4146 602 – ShipNet Brazil Phone: +55 21 2518 5756
www.shipnet.no Improving Business Processes
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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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
LEARN FROM THE EXPERTS Norway is one of the leading shipping nations in the world and BI Norwegian School of Management (BI) has a long tradition of teaching and doing research in the Shipping area. Recently, BI added a Bachelor of Shipping Management to its portfolio.
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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
WE UNDERSTAND BALLAST WATER TREATMENT
At Severn Trent De Nora we understand that it’s important to find a ballast water treatment system that’s best suited for your application. That’s why we’ve designed the BALPURE® system with easy-toseparate sub-assemblies, eliminating the requirement for design changes to your engine room. The patented BALPURE system is an effective and economical solution to meet the most stringent ballast water discharge requirements. Environmentally safe and easy to maintain, BALPURE offers an operating cost of less than EUR ¤0.016 per m3 of ballast water treated. Ideal for high ballast water flow rate applications, the BALPURE system can offer energy savings of more than 60% compared against competitive technologies.
To learn why BALPURE is the right ballast water treatment solution for you, contact sales@severntrentdenora.com or visit www.balpure.com
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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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.
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. Rotterdam
Tel +31 10 4104400 rotterdam@ameydemarine.nl
Amsterdam
Tel +31 20 6195068 amsterdam@ameydemarine.nl
Maasvlakte
Tel +31 181 362648 maasvlakte@ameydemarine.nl
Vlissingen
Tel + 31 118 411010 vlissingen@ameydemarine.nl
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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