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Tanker shipping A Korean rebound The Scandinavian car carrier EUKOR has a unique relationship with South Korea’s Hyundai-Kia Motors Group, one of the world’s largest car manufacturers. PAGE 40
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The history of product tankers The first modern product carrier, dedicated to distribution of clean products, was delivered in 1965. PAGE 88
Front page picture is sponsored by the shipping companies on Donsö.
Focus on:
What is competency? Competency is not about what you know but what you do. What you know fades over time unless reinforced. PAGE 22
2011-05-18 12.50
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The island of Donsö in the southern part of the Göteborg archipelago is unique. Nowhere else in the world are so many shipping companies based on such a small island. The shipping companies on Donsö employ more than 800 persons onboard and ashore and a major part of the oil/chemical transports in the Northwestern part of Europe is made by vessels from Donsö.
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A Korean rebound The Scandinavian car carrier EUKOR has a unique
relationship with South Korea’s Hyundai-Kia Motors Group, one of the world’s largest car manufacturers. PAGE 40
The history of product tankers The first modern product
carrier, dedicated to distribution of clean products, was delivered in 1965. PAGE 88
the shipping companies on Donsö.
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What is competency? Competency is not about what you know but what you do. What you know fades over time unless reinforced. PAGE 22
CHRIS-MARINE ® GROUP: SWEDEN Chris-Marine AB• +46 - 40 671 2600•info@chris-marine.com DENMARK IOP Marine A/S •+45 - 4498 3833•contact@iopmarine.dk SINGAPORE Chris-Marine (S) Pte. Ltd.• +65 - 6268 8611•chrism@chris-marine.com.sg GREECE CM Hellas Ltd.• +30 - 210 482 6060•info.gr@chris-marine.com P.R.of CHINA Chris-Marine Trading (Shanghai) Co.,Ltd.• +86 - 21 6575 9331•info.cn@chris-marine.com RUSSIA Chris-Marine Rep Office St. Petersburg• +7 - 911 908 5482•info.ru@chris-marine.com INDIA Chris-Marine Rep Office India• +91 - 712 224 2719•info.in@chris-marine.com JAPAN IOP & Chris-Marine Japan Office• +81 - 78 570 5642•info.jp@chris-marine.com
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No 3 2011 Shipgaz 9
Intro feature
3/11 In this issue 11 15 17
A Korean rebound EUKOR, one of the largest vehicle shipping companies in the world, is 80 per cent Scandinavian owned and ships over 3 million cars annually. We visited its office and port facilities in Seoul, to see how the company is doing in the wake of the global depression. page 40
70 newcomer Finnbreeze is the first of six ro-ro vessels from China for Finnlines. The design is based upon the Finnmill-type with some new interesting features. page 70
Framvagn_MR.indd 9
28 report Tanker operators have surely seen better days. The downturn will claim its victims sooner or later, but Broström will not be one of them. page 76
Challenging year for owners European coasters singing the blues
18 22
A new way of thinking
24
Listen to your personnel
40
Preserve our old beauties
Competency is what you do
28 The tanker operator Broström stands firm in shaky market
32
Maersk Tankers applies slow steaming on the fleet
36
The Bergen tanker community – products and chemicals
40
A Korean rebound
56
Grandweld making its way offshore
66
Shipgaz Training certified by DNV
70
Finnbreeze – fast, efficient and large
76
Japanese-built deepsea ro-ro
88 The product carrier in retrospect
98
The Oluf Mærsk sold for recycling
In every issue 13 15 22 70 80 88
Editorial Market Column Spotlight Newcomer Fleet Review Retro
»A whole epoch in shipping was finally erased within a couple of years«
2011-05-24 10.49
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No 3 2011 Shipgaz 11
Editor-In-Chief Pär-Henrik Sjöström par-henrik@shipgaz.com
Editorial
Preserve our old beauties »A whole epoch in shipping was finally erased within a couple of years«
he waterfront of my hometown has recently been enriched with a unique sight, the passenger vessel Bore. This maritime landmark cannot be better suited for a city, which during its existence since the early 13th century has been an important centre for trade and shipping. A couple of weeks ago I attended a seminar, where one of the lecturers, an architect from Sweden, talked about aesthetic values in ship design. One of the vessels mentioned was the Bore. The seminar was rounded up with a dinner on board the ship.
T
During the lecture my thoughts wandered to a time when I was young and there were still some “real” vessels in service. As a child I experienced the last age of steam during walks with the family in the port of Turku. In the 1960s there were still some real old timers left in the Finnish merchant fleet. I also remember some old passenger steamers, such as the Regin, Wellamo and Ariadne. I have a vague memory about some ideas of preserving the 1927-built Wellamo for future generations when her time ran out due to new and more stringent regulations in the late 1960s. These efforts were in wain, as the time was not yet ready for a cultural historical deed of this magnitude. So the Wellamo and all her contemporary sisters were broken up. A whole epoch in shipping was finally erased within a couple of years.
Still in the 1980s there was an old cargo tramp moored in Helsinki as a grain storage. Again voices were raised about the necessity to preserve a ship of this age. Built in Helsingborg as the Johan Jeansson in 1930, she was perhaps the only one of its kind left in the world – a classic cargo steamer with a straight bow and a long smokestack aft of the bridge. However, this true gem shared the same fate as the Wellamo earlier. The list of missed opportunities to preserve remarkable merchant ships of yesterday has become too long. One of the last Swedish-built classic cargo liners, the Bahia Blanca, could perhaps have been saved before she was beached at Chittagong in 1985. The project for preserving the United States, an icon for early American post war ship design and shipbuilding, struggles with an acute shortage of money. The “Big U” is still moored in Philadelphia, but decades of idleness and decay has not been gentle with the old lady. All her interiors being torn out, she is still waiting for a refit, perhaps never to come. In 2008 it was regarded a great loss when the 1977-built Finnjet ended her days at the beach
Framvagn_MR.indd 11
of Alang. Serious efforts to preserve the vessel had failed. Still, from a pure aesthetic point of view, she represented shipbuilding at its worst, but she would no doubt have been a great monument of ship design in the 1970s. It was therefore splendid news that the passenger vessel Kristina Regina, built in 1960 in Oskarshamn, escaped the cutting torches. Built as the Bore, this former steamer had of course been modified several times – the most sad thing was that her steam engine had been removed during a large refit in the 1980s. Still the Bore was a classic passenger vessel, designed in an era when the car ferry still was taking its very first steps. Now it seemed like the time was finally ripe for saving an old, large passenger ship. Funding was raised, the vessel was bought. She was painted in her original colours and with kind permission by her original owners, she even got back her original name Bore. Do we already sense a happy ending?
Sometimes reality may be unbelievable. Turku, the former home town of Bore, was thrilled to get such an outstanding maritime attraction. The timing was perfect, as Turku in 2011 is the European capital of culture. The old lady was appointed a permanent mooring place in the River Aura. The project was almost too good to be true. The Bore would not be just a static museum. She would also serve as a floating hotel, with restaurants and conference facilities. As icing on the cake the owner had decided to preserve the vessel in sailing condition, despite the additional costs. They did not want to ruin the possibilities for this vessel to sail under her own power again, even if this was not a part of the actual plan. What happened then? First the inhabitants in the apartments by the river complained. The vessel was spoiling their view. Then some local enterprises did not want the vessel around. Thanks to Viking Line the ship finally found a permanent mooring in Turku close to their terminal and Forum Marinum. Usually preserving a ship includes a lot of will but no money. In this case the project was jeopardized by the lack of good will. What do we learn from this? Never let outsiders get too close to a port, ships are not welcome home after that.
Pär–Henrik Sjöström, Acting Editor-in-Chief
2011-05-24 10.49
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MARINE
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NO 3 2011 SHIPGAZ 15
Carl–Johan Leijonhielm info@stemshipping.se
Mikael Jarlhammer info@stemshipping.se
Market column
Small tanker market:
Challenging year for owners »Owners have made efforts to maintain rate levels due to the high bunker costs but have so far only succeeded in decreasing the pace«
he market for tankers up to 20,000 DWT trading in North West Europe has been characterized by an oversupply of vessels the last couple of years. In addition, the prevailing uncertain market conditions and the general financial status have caused a decline of trading based cargoes, which primarily play an important role for owners within the petroleum segments. The sharp increase in bunker prices over the last six months have also, for certain, contributed to further falling earnings for owners. The ongoing consolidation trend in the market is therefore not remarkable.
T
In order to grow and increase earnings or simply survive owners are looking at consolidation and other types of corporation. An example of this trend is Broström Tankers, with their strategic cooperation with Gotlandsbolaget, Wisby Tankers and Thunbolaget forming a tanker fleet controlling a total of 18 vessels between 6,000 and 9,000 DWT. Present time charter earnings for the various segments are well below breakeven costs for modern tonnage. Owners that have entered time charters the last year or are trading in the spot market are struggling. A 6,000-8,000 DWT modern tanker will today only have an income of some USD 8,000–8,500 per day, which is only covering operating expenditure. In the long run this is not sustainable.
Although the year started poorly with low activity, the cold weather and the tough ice situation in the Baltic Sea has made the market somewhat normal in terms of freight levels and supply of suitable ice tonnage. The dirty petroleum market performed even better than the clean market, and the demand for this tonnage seem still to be strong.
Despite the strong demand for dirty tonnage the trend towards the summer market is clear, with lower rates and more tonnage available for clean cargoes. Owners have made efforts to maintain rate levels due to the high bunker costs but have so far only succeeded in decreasing the pace, but it seems we are now once more heading towards the basic with an unbalance between cargoes and tonnage.
*
CARL-JOHAN LEIJONHIELM AND MIKAEL JARLHAMMER
Stem Shipping is an international shipbroking company focusing on liquid products.
PHOTO: FREDRIK DAVIDSSON
The Wisby Wave (owned by Gotlandsbolaget and Wisby Tankers) is commercially operated by Broström.
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2011-05-24 10.49
A helping hand in your success.
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www.certex.net 2011-05-24 10.49
d
s.
ON NE
es g& es ats ng cts est
No 3 2011 Shipgaz 17
Geir Jerstad, broker geir@norbroker.no
Market column
Shortsea dry bulk market:
European coasters singing the blues »Our expectations for 2011 have been downgraded as a result of a troubled EU economy that is coinciding with political turmoil in the MENA area«
on g& on r& ce ce
his year has so far been one of the most challenging years in modern history of European coasters. A wild newbuilding rollercoaster ride that started in 2004 has brought the industry into a state of deep crisis with owners seeing secondhand prices plunge while banks are holding their breath. After several difficult years the coaster markets finally saw arrows pointing upwards in 2004 driven by the deep sea markets and worldwide demand for steels especially. The China effect was clearly driving the commodity markets up, and investors finally regained confidence in the shipping industry. Most owners had been very cautious paying down mortgages, and as freight markets started to increase secondhand prices took off leaving owners with great assets on their hands and furthermore a willingness to invest. Low interest levels and banks throwing money at owners ignited a series of new building programs lead by German and Dutch investors especially.
T
From 2004 followed some unforgettable years in shipping history that lasted until November 2008. Demand for tonnage was insatiable and operators delivered huge profits to their investors. Newbuildings really started to enter the market from 2007–2008 with coaster-owners falling for the 3,500–4,000 DWT size especially. These ships were slightly larger than the 3,000 DWT ships built previously, and this soon became the new preferred size in the European short sea markets. By the end of 2008 owners were seeing net profits of EUR 1,000–2,000 per day per ship with owners believing that this train was unstoppable. Then suddenly in November 2008 the financial bubble broke with the shipping industry being thrown into a new reality of financial defaults and new building programs that was no longer backed up by the banks. Demand for tonnage dried out over night as the credit crunch strangled the markets. Rumours of bankruptcies were flying around the market, and fear and distrust was dominating the shipping industry.
By first half of 2009 earnings on 4,000 tonners had dropped to below EUR 2,000 per day on T/C basis with most operators seeing net losses of EUR 1,000–1,500 per day. Several operators decided to put vessels in lay-up in an attempt to reduce negative cash flow, and most investors were forced to ask their bank for postponement of mortgage installments.
As a result of a sharp fall in secondhand prices owners were now facing the problem of selling older tonnage that was being replaced by new buildings. Ships were being delivered from Dutch and Chinese yards every week only adding to the already so imbalanced tonnage supply. There are no exact figures on the growth in deadweight capacity in the European markets since 2004, but we estimate that owners have been taking delivery of some 200–300 units in the 3,000–4,000 DWT size with only few ships leaving the European markets.
There are ongoing newbuilding programs still seeing deliveries in 2012, but after that we believe that most ships have been delivered. There are rough estimates indicating that net growth in capacity in the European coaster markets alone could amount to about one million DWT. Even without the turn in world economy it seems clear that this tremendous increase in capacity would have been very difficult to absorb in the market. So far have banks and finance institutions kept very quiet with very few announced bankruptcies in the industry. Both owners and lenders have been clinging on to the hope that the markets would turn in 2011, but with 4,000 tonners still seeing T/C earnings around EUR 2,000 per day credit lines are being stretched to the limit. Few owners are repaying mortgages and some not even interests on their mortgages leaving banks in a deadlock where they must secure their assets while preventing owners from throwing in the towel. Our expectations for 2011 have been downgraded as a result of a troubled EU economy that is coinciding with political turmoil in the MENA area. There are without doubt dark clouds on the horizon not only in the shipping markets. Balance has to be re-gained, and it is going to be a painstaking process both for owners and banks that will take years to complete. Still we believe that the coaster industry will have to return to basics with focus on ship operation and ship broking instead of asset play. There is a lesson to be learned from this, and somehow we should not lose faith in this industry that for hundreds of years has been the nerve of European trade.
*
Geir Jerstad
Norbroker Shipping & Trading is specialized in coaster and project cargo movements.
t Framvagn_MR.indd 17
2011-05-24 10.49
18 Shipgaz No 3 2011
By Fredrik Davidsson fredrik@shipgaz.com
Report Oil recovery
Photo: Fredrik Davidsson
Fernando Guiles Santamaria and Gilles Longueve.
A new way of thinking There is no such thing as zero risk, accidents happen. Why not be prepared to take care of even the worst consequences, a sunken vessel full of oil. ”It is just like a safety belt in cars, you hope you never to use them but they are always installed. Thirty years ago safety belts were consid‑ ered unnecessary”, but not today, says Gilles Longueve, MD of French company JLMD Systems as well as the president of the organization Mari‑ time Passive Safety.
»In case of an accident the salvor can easily locate the connection points and salvage the oil«
Gilles Longueve would like the
The fast oil recov-
shipping industry not only to pro‑ tect the oil it carries, be it bunker or cargo, from spilling in case of an ac‑ cident but also to prepare to get the oil out of the vessel once the accident has happened.
Framvagn_MR.indd 18
ery system can also be used to discharge erroneous loads of cargo or bunker.
”An accident should be consid‑ ered as a part of any ships life span and the owners should be prepared for this already from the start. We want to make the ship the first source of solving the problem”, says Gilles Longueve. If, or when, a vessel is stricken or even sunken whatever oil not spilled must be salvaged. If the manifold or bunker station is not accessible the salvage company must make calcu‑
lations to find the ship’s tanks and then drill holes. ”In bad weather or under water this is not easy and with today’s double hulls it is not easy to locate the tanks. Sometimes they don’t know where they end up when they drill through the double hull and there is a risk of further spills. We think the ships should have a sys‑ tem onboard to quickly make it easy to salvage the oil.”
Not surprisingly Gilles Longueve and JLMD are selling their own system to make this possible but their princi‑ ple seem to be sound in any case.
2011-05-24 10.49
No 3 2011 Shipgaz 19
Oil recovery
Report Photo: jlmd
»Ten years ago the system was to complicated with plenty of pipes, it was too heavy and expensive« ”Our system has two connections, valves or just flanges, in every tank. In case of an accident the salvge company can easily locate the con nection points and salvage the oil, or for that matter any liquid. Seawa ter is injected into one of the valves and the oil is pushed out through the other connection. This will work irrespective if the ship is up side down, on its side or in any other po sition. Should there be a pocket of oil trapped above the highest outlet, air will be injected and push the oil down and out through the outlet.”
JLMD are engineers and designers and as such does not provide the pipes and valves themselves. This will be supplied through partners like ship yards or as the case in Sweden by the company Hårdsvetsteknik, but they have been developing their system for ten years. Even if it is only in the last couple of years they say they have a commercially viable product. ”Our system is installed in 36 ves sels, most of them in the last few years. Ten years ago the system was to complicated with plenty of pipes, it was too heavy and expensive. We reached technical maturity in 2008 and today it is much simpler and in some cases it is merged with the existing pipe system on the vessel”, says Fernando Guiles Santamaria, commercial manger at JLMD. ”The system looks simple but it is complicated to identify which pipes in the vessel’s system that may dis turb the discharge. The latest vessel we installed the system on was a ves sel from the French Navy, and CMA CGM has implemented the system in their latest series of container ships, says Gilles Longueve.” On the list of ships fitted with this fast oil recovery system we also find the familiar Bro Ellen. According to Gilles Longueve a fast oil recovery system can be installed both in a new building and retrofitted, at least to
Framvagn_MR.indd 19
Clearly marked connection points are a fundamental part of the fast oil recovery system. tank and bulk vessels, and it is rela tively cheap. ”Imagine the time and money a crisis will cost, and for this system we are talking about less than EUR 100,000”, says Fernando Guiles San tamaria. ”In the new CMA CGM very large container ships the bunker tanks are very well protected. They are located beneath the super structure and in side double hull, many meters from the hulls outside. If such a vessel would sink it would be impossible to recover the huge amounts of bunker in those tanks, if the vessel did not have the fast oil recovery system in stalled”, says Gilles Longueve.
Confident in their system both Fernando Guiles Santamaria and Gilles Longueve seem to believe ship ping might be moving towards not
Maritime Passive Safety Gathers permanently installed equipment that therby enables quick, effective response when accidents occur.
only protecting the oil inside vessels from spilling but also consider how that well protected oil is to be recove red from a stricken vessel. ”The classification societies BV, ABS and DNV have given us concept approval and BV has issued a special notation in their clean ship label, says Fernando Guiles Santamaria.” ”This spring we were contacted by the French government to take part in the Polar Condition Committee at the IMO and we have had a meeting with the Swedish Maritime Adminis tration, says Gilles Longueve.” ”So, it is not only a concept we are talking about but it is a proven and approved system. It is now in the hands of the ship owners and coun tries they cannot say that there is nothing they can do to improve the current situation”, says Fernando Guiles Santamaria.
*
2011-05-24 10.49
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2011-05-24 10.49
22 SHIPGAZ NO 3 2011
By Bob Couttie, bob@shipgaz.com
Spotlight Safety
Competency is what you do Safety: Bob Couttie Bob Couttie is the administrator of Maritime Accident Casebook. His background in radio, TV and film as well as reporting for several renowned maritime publications gives him a multidisciplinary approach to maritime safety issues. f you’re very old you might remember a book called “Men are from Mars, Women are from Venus” by John Gray. Co-incidentally I saw a copy in a secondhand book ship while on my way for a creative meeting with a client about competency assessment and by one of those quirks in which a thought jumps track and makes off into the wild I wondered what planet ship managers and ship owners come from. Not many come from Planet Competency. Here’s what Captain Robert Rayner, president and CEO of IDESS Interactive Technologies, wrote in one issue of the American P&I Club‘s publication Currents: “No one in their right mind would put a multi-million dollar asset – their ship and its ability to earn (and
I
lose) money – in the care of individuals who were anything other than competent. Yet that is exactly what is happening, and on an ever increasing scale in the shipping industry.”
»Competency, then, isn’t about what you know but what you do« Bob Couttie, administrator of Maritime Accident Casebook.
OK, what is competency? Or more precisely, when is a seafarer competent? When he or she holds a Certificate of Competency? Possibly, at the time the certificate was issued, they were, but how competent is that person now? The IMO definition in resolution A864(20), for example, does not help: “A Competent Person means a person with sufficient theoretical knowledge
and practical experience to make an informed assessment...” Enough seafarers with Certificates of Competency and “sufficient theoretical knowledge and practical experience to make an informed assessment” have been repatriated in what the mumbly, woolly language of the industry would probably called a condition not conducive to breathing to put the lie to both.
PHOTO: PIERRE ADOLFSSON
In fact, competency is the demonstrated ability to carry out a given task to a given standard, safely. Competency, then, isn’t about what you know but what you do. What you know fades over time unless reinforced. Training takes second place. It’s about whether the person performing the task meets set performance standards: what they do, not what they’ve been trained to do. More often than not the person being repatriated in a bodybag has been trained but has not applied that training to his or her work. It is about performance in the workplace. Demonstrated does not mean that the seafarer demonstrated competency 10 or 15 years ago. It means that it was demonstrated sufficiently recently to be current and appropriate. Currently, we do not distinguish between a second officer who has been serving for the last two years on a small product tanker that transits the Singapore Straits every three weeks, and a second officer serving on VLCC that is on a regular run between Ras al Ju’aymah and Europort for the same period. Lack of competency assessment
The cost of competency assessment per seafarer comes to less than a taxi ride.
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comes up repeatedly in maritime casualty reports. It’s a screamingly obvious solution to reducing maritime incidents, enhancing safety and increasing the efficiency and effectiveness of vessel operations. Currently a minority of ship owners and managers operate competency management systems and some of the reason are, shall we say, weasely, or, to be more precise, unethical. To paraphrase a conversation with a ship owner, and not a small one: “We
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Portrait
»We don’t want to know if our seafarers are competent or not. If we know a seafarer is not competent and he gets hurt then we can be held liable« don’t want to know if our seafarers are competent or not. If we know a seafarer is not competent and he gets hurt then we can be held liable.” Heavens knows what planet these folk inhabit. It certainly isn’t Earth. You occasionally fly on business, to conferences or on vacation. Imagine being told that the competency of the flight crew had not been verified for ten or 15 years, and then on a DC10, not the Boeing Dreamliner you’re currently riding in. When you demand to know why the airline had not checked the competency of its aircrew you’re told “If we crash, we might be held liable if we check the competency of our crews” I’m sure you’ll sleep soundly on that 15 hour flight. Not. The cost of competency assessment per seafarer comes to less than a taxi ride, certainly less than a beer at Posidonia. Shipping companies and ship managers already pay for a lack of competency assessment in a variety of ways, from higher than necessary insurance premiums to loss of corporate ‘name’ when bad things happen. And, of course, overlooking a significant reduction in training costs because training can be targeted to those who need it.
Competent seafarers are more efficient, too. In a business with such tight margins, any percentage point in increased efficiency helps the bottom line. Any shipowner or manager that does not have competency management system in place, and one that responds to the assessment to ensure that their seafarers is not acting responsibly. Given the temptation, and, indeed, the pressure, to lower standards to offset the shortage of officers, competency assurance is critical to ensuring that seafarers can do what their certificates say they can do: keep themselves alive and their ships safe.
Studies Lack of competency assessment comes up repeatedly in maritime casualty reports.
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2011-05-24 10.49
24 Shipgaz No 3 2011
By Eddie Janson, eddie@shipgaz.com
Spotlight Safety
Listen to your personnel Safety: Eddie Janson Captain Eddie Janson of MariTrain AB, instructor and consultant in maritime safety, points the Shipgaz spotlight at safety related matters.
here are both similarities and differences in investing in a ship and investing in personnel. Both vessels and personnel need continuous maintenance to deliver good performance. The big difference is that it is up to the shipowner if he wants to keep or sell his vessel, but for personnel it is up to the employee if he/she wants to stay with the company or leave it.
T
Keeping a high retention rate for officers and crew is a way of protecting the investment. For most companies, the retention rate has gone up during the last year. One important factor is the economic downturn, there have not been as many available jobs and there are fewer opportunities for the seafarer to shop around for the best benefits.
Now, when the market is beginning to improve, shipowners are facing a great challenge, “How do we keep our seafarers?” I agree with those who say that one of the biggest problems in shipping in the future will be how to recruit new seafarers, but what is even more important is to retain the seafarers already employed. A long-term investment in personnel will have a direct impact on the safety, maintenance standard and performance of the vessel.
»A company culture is formed by individuals’ values, attitudes, knowledge, skills and behaviour.« Eddie Janson, Instructor and consultant in maritime safety.
Whenever I get the opportunity, I ask seafarers who have been employed for a long time in the same
company why they are staying. Very often there are other values than the actual salary that are taken into account such as: “The company listens to my opinion”, “I am seen as a person, not just as a number”, “The company provides good training and a career plan”, “I get relieved when scheduled”, “The company keeps me informed about its future plans”, etc. Making the employee feel he or she is part of the company and its success, is often just as important as the salary, when it comes to the employees’ decision whether or not to stay with the company.
Photo: pierre adolfsson
So what can companies do to protect their investment? Involve the seafarers in the company’s operation and decision-making process by e.g. engaging them in the development of new procedures, investigating new technology, etc. Letting the seafarers play an active role in the development of new procedures will improve their sense of ownership and understanding and they will be more motivated to implement them. Hold company seminars in which the seafarers can exchange experiences and get to know more about the company and its future plans, the vessels in the fleet and other employees. Develop a career plan for all employees. Let the employee know what is needed to get promoted and supply the training needed for improvement. This can be achieved by means of TOTS or any other career development program. Listen to your seafarers! They are the ones who know best what is going on onboard the vessels. Provide support. Strive for a good safety culture. A
Involve the seafarers in the company’s operation and decision-making process.
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company culture is formed by individuals’ values, attitudes, knowledge, skills and behaviour. It has been said so many times before, but it requires visible commitment from the top in order to implement a sound safety culture. Actions speak much louder than words on a paper. Implement a no-blame culture. This is not an easy thing to do. People are by nature reluctant to admit their mistakes. It requires continuous engage-
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Beskrivning
»Let the employee know what is needed to get promoted and supply the training needed for improvement« ment on the part of management, which has to set a good example.
What will the benefits be for the company? • Low personnel turnover • Greater commitment • Competent and skilled personnel • Officers and crew who know the company’s procedures and can suggest changes and improvements • Safer and well-maintained ships • Return on the investment; the time and money spent on training will remain in the company • Satisfying the oil majors’ requirement of time in company. • Fulfilment of TMSA requirements.
tmsa The Tanker Management and Self Assessment (TMSA) programme provides ship operators with a means to improve and measure their own management systems.
Portrait
INTERIOR INSULATION VENTILATION PIPING ELECTRICAL
Source: OCIMF
The Tanker Management and Self Assessment (TMSA): TMSA 3A.2.3 The company has procedures for identifying additional training requirements. TMSA 3A.3.2 Company policy provides career development opportunities for junior officers and aims to promote senior officers from within the company, where possible. TMSA 3A.3.3 The company achieves an 80 per cent retention rate for seni or officers over a two-year period. TMSA 3A.3.3 The company organizes senior officer seminars to promote, emphasize and enhance the company’s safety management system. TMSA 3A.3.4 Training for seafarers exceeds the minimum requirements of the STCW code or of the relevant authority for vessel trade. TMSA 3A.4.1 Company policy provides career opportunities for officers by providing shore-based assignments. TMSA 9A.3.1 The vessel’s management team promotes a strong, proactive safety culture on board, and all crew members are encouraged to be involved in proactive safety campaigns and work methods. TMSA 9A.4.1 There is a system in place for vessel’s crew to communicate ideas for improving safety to shore management.
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28 SHIPGAZ NO 3 2011
Report The tanker operator Broström
By Pierre Adolfsson pierre@shipgaz.com
PHOTO: BROSTRÖM
The Bro Deliverer, 14,766 DWT, was built in 2006 at Jinling Shipyard, China.
Tanker operator Broström stands firm in shaky market With low rates and an oversupply of tonnage haunting the market, tanker operators have surely seen better days. ”While we have had a reasonable start of the year with a cold winter, which has had a positive impact on earnings, I hold a quite negative view for the remainder of 2011 for the industry as a whole. However, despite seeing plenty of tanker operators in shambles, coupled with macro economic uncertainties and political turmoil in parts of the world, I believe Broström will emerge from the downturn as a winner”, says Robert Uggla, CEO of Broström, and continues:
»In Gothenburg alone, we have reduced our administration costs by SEK 40 million on a yearly basis«
”We stand to benefit from being part of a financially strong group and, equally important, we have had the courage to take difficult but necessary decisions to establish a far more competitive business model.” ”Over the last 18 months, we have
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Robert Uggla CEO of Broström.
seen significant improvements in a number of areas. In Gothenburg alone, we have reduced our administration costs by SEK 40 million on a yearly basis.” Broström’s technical organisation has also managed to carry through significant savings through new procedures, reflagging and by tapping into Maersk’s procurement program, according to Robert Uggla. ”We have also increased the focus on safety: the safety statistics for crew onboard, measured as lost time injuries and total recordable cases, have improved significantly since the integration. Lastly, we have trimmed
our balance sheet by aggressively addressing outstanding capital and invoicing time.” Broström’s main markets are North West Europe and South East Asia. Especially the company’s activities in Asia are performing well at the moment and have done so throughout the downturn for the tanker industry.
The majority of the company’s vessels operating in South East Asia enjoy volume contracts, so called contracts of affreightment, with many of the large refineries. The situation in the European markets is more challenging for Broström, especially for the intermediate segment, which to a great extent is exposed to the spot market. The smaller segment, consisting primarily of 8,000 DWTs, has a higher
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The tanker operator Broström
Report
”Overall, earnings for the first quarter of 2011 have been reasonable on a global basis. The utilization levels in Europe have been supported by the ice situation coupled with a prolonged winter season. At some point seasonality risks kicking in, but I remain confident that Broström will continue to run a cash positive business even if the market heads south during the summer.” Broström has been a strong brand and an important part of the Swedish maritime cluster for more than a century. In 1890, the shipowner Axel Broström established what later became
StenaWeco_ad_184x118mm_may.pdf
Photo: pierre adolfsson
degree of contract coverage. ”A high contract coverage is partly the reason for why our smaller segment operating in Europe has performed better than our intermediate segment. But one should bear in mind that there is less volatility in the smaller product tanker segment, which means we have a limited downside in a weak market, but also a limited upside in a strong market. Risk and return go hand in hand in this respect”, Robert Uggla says and continues:
Robert Uggla at Broström’s headquarters in Gothenburg. the parent company of the Broström Group, “Ångfartygs AB Tirfing”, located centrally in Gothenburg.
In 2009, the operator was acquired by Danish Maersk Tankers of the Maersk Group for SEK 3.6 billion. 1
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”Maersk entered the tanker market in the late 1920s just a few years before the industry experienced its worst crisis in modern shipping. While not all investments have been timed well, Maersk Tankers’ long term returns have still been competi-
STENA BULK GROWS BIGGER AND “GREENER” THROUGH MERGER WITH DANISH WECO
S T E N A B U L K I S B U L K I N G U P in the segment for Medium Range product tankers by acquiring 50 percent of the Danish shipping company Weco. This doubles our common MR-fleet to 40 ultra modern tankers under the new brand name Stena Weco.
C O P E N H A G E N
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H O U S T O N
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S I N G A P O R E
www.stenaweco.com
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30 Shipgaz No 3 2011
Report The tanker operator Broström Photo: Broström
The vessels that have been re-flagged to DIS are: Bro Anton, Bro Atland, Bro Deliverer, Bro Designer, Bro Developer, Bro Distributor, Bro Juno, Bro Premium, Bro Priority, Bro Promotion och Bro Provider. tive for its owners. There have been periods when Maersk Tankers have generated an excess return of 20 per cent on invested capital. The down turn has had a negative impact on our short term performance, but at the same time we have seized the op portunity to cut costs leaving no stone untouched, which has given us a stronger foundation.”
Robert Uggla firmly believes the tanker market needs to undergo some fundamental changes, or put it dif ferently, there are too many operators out there. ”Many banks have so far not made any significant impairments despite holding a troubling portfolio of ship ping related loans for quite some time, which is surprising and con cerning”, he says and continues: ”The small and intermediate pro duct tanker segments are quite frag mented. Hence, the entire industry, be it the banks, ship owners or cus tomers, would benefit from distressed assets being divested to financially re liable and quality oriented operators.” When Maersk acquired Broström,
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both parties talked about the need to improve the customer offering and service levels through consolidation. Over the last 18 months, Broström has successfully initiated four new commercial part nerships, and recently it launched a new tanker pool with the Swed ish owners Erik Thun AB, Rederi AB Gotland and Wisby Tankers AB, to strengthen its commercial manage ment portfolio further. ”Over the last ten years, Broström has had limited capital to expand its own fleet, so it grew partly through pools and commercial management of third party vessels. Maersk Tankers shared such philosophy but for an other reason.” ”Grewing the fleet is a not a quest for size, it is a quest for improved services and financial performance. We believe that a compatible pool of quality vessels increases the flexibility of the fleet, which ultimately means better services to our clients, less bal last time, reduced costs and a reduced
»There are no plans to close down shop in Gothenburg« Broström is no longer operating any Swedishflagged vessels and few of its customers are Swedish.
environmental foot print. In this re spect, I believe our pools’ track record speak for themselves.”
”However, it is important to point out that expanding the pools is not an end in itself. Our pool partner selec tion criteria boil down to enjoying a partnership based on compatible ton nage, a mutual set of values and en joying the support of long-term and quality oriented owners.” Last autumn, Broström decided to reflag its remaining eleven Swedishflagged vessels to the Danish Interna tional Registry, DIS. The company had been exploring the pros and cons of a major reflagging since spring 2010 and came to the conclusion that operating tanker vessels in the Swedish registry could no longer be justified. ”Frankly speaking, I am quite tired of debating the matter. Denmark im plemented an international registry already 1988 and the tonnage tax re gime in 2002. It goes without saying that ship owners competing in a global industry need a levelled playing field in order to be competitive. Over the last year the strengthening of the SEK
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The tanker operator Broström
Report Photo: Broström
»Frankly speaking, I am quite tired of debating the matter« has accentuated the problem further for owners still operating with Swe dish contracts”, says Robert Uggla.
As Broström no longer is operating
The Bro Anna, 16,979 DWT, is built in 2008. what we have achieved over the last two years. As a result, we benefit today from having a very competent and cost competitive commercial and technical organization in Sweden. So let’s rather leverage our local talent
when we increase vessels under Bro ström management in Gothenburg, while at the same time recognizing that we are part of a global organiza tion and industry working beyond borders.”
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any Swedish-flagged vessels and very few of its clients are based in Sweden, there seem to be little reason to keep its headquarters in Gothenburg. ”There has been speculation about Broström moving its offices from Gothenburg to Copenhagen for the last two years. We have already moved several functions to Denmark, but also to other locations such as In dia. And we have closed down several Broström offices abroad. We have also changed office address in Gothenburg to save rent almost to the tune of SEK 5 million per year.” ”However, there are no plans to close down shop in Gothenburg. On the contrary, we are very happy with
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2011-05-24 10.50
32 Shipgaz No 3 2011
By Bent Mikkelsen bent@shipgaz.com
Report Slow Steaming
Photo: maersk tankers
The VLCC Eli Maersk, 308,491 DWT.
Maersk Tankers applies slow steaming on the fleet Maersk Tankers has introduced slow steaming in the tanker segment to save fuel and reduce emissions. Maersk Tankers has introduced slow steaming in the tanker segment. Slow steaming is well known in the container business, but since the days of the extremely slow market in the beginning of the 1980’s, slow steaming has not been an issue in tanker trading.
“The world is more complicated nowadays and therefore we have to account for emissions and fuel burning on our ships. As we want to be an environmentally responsible partner to all our customers, we have put a large effort into a number of possible ways to save fuel and reduce emissions”, explains Tommy Thomassen,
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Senior Director at Maersk Tankers. To use slow steaming in the tanker segment is more complicated than in the container business, simply because container operators/owners are normally sailing on its “own” fuel. That means that the operator is paying for the fuel himself. In the tanker business it is often a mixture of time charters, trip charters from loading port to discharge port and ballast voyage on the owner’s account. A lot of factors dictate who is paying for
»There are lot of factors which have to be considered when talking about product carriers and slow steaming« Tommy Thomassen, Senior Director at Maersk Tankers.
the fuel and how fast a certain voyage has to be executed. “There are lot of factors which have to be considered when talking about product carriers and slow steaming”, says Tommy Thomassen.
“Often a cargo is being traded from where it has been loaded to where it’s going to be discharged. Let’s say a cargo of gasoline is going to be transported from Rotterdam to Boston in the US. In that rather normal kind of trade the cargo is often payable when the ship has safely arrived at Boston outer anchorage. And those kind of traders are not interested at all in slow steaming, they are more keen on a
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Slow Steaming
Report Photo: maersk tankers
quick a transfer across the Atlantic”, says Tommy Thomassen.
In the crude trade things are simpler. Tankers are either on time charter to a major oil supplier or operating on the spot market for the owner’s own account. When a ship is time chartered it’s the charterer who pays for the fuel on both legs of the voyage. “We have tried to introduce a slow steaming scheme for Total, which has one of our N-class tankers on time charter”, states Tommy Thomassen. “Total has shown a high degree of interest because of the possible fuel savings and emission reductions. We have done a very careful study in the technical aspects on the ships’ engines and documented a 50 per cent reduction of fuel consumption on the ballast voyage for a VLCC from Japan to the Arabian Gulf”, adds Thomassen.
On the spot market trade, the picture is much different. When shipping a cargo of crude oil from the Arabian Gulf to Japan, it is stipulated in the charter party which speed the tanker has to maintain on the voyage to the
Namnlöst-1 1
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The LPG tanker Maersk Virtue, 58,123 DWT, was built in 2007. discharge port in Japan. It is normal to maintain a high speed (around 15 knots) because the cargo is payable upon discharge in Japan, which means that the seller of the oil does not get any money until the oil is pumped ashore into a tank farm in Japan.
“It has been more complicated to arouse the interest for the shippers of crude oil under these terms because of the huge economical aspect”, emphasizes Tommy Thomassen. Slow steaming might be an option for ballast voyages from Japan to the
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34 Shipgaz No 3 2011
Report Slow Steaming Photo: maersk tankers
The Nordby Maersk, 16,511 DWT, was built in 2007 at Qiuxin Shipyard, Shanghai. Arabian Gulf. “We have introduced it on some of our VLCC’s”, says Tommy Thomassen and continues: “Actually we have been able to gain around a 50 per cent reduction of fuel consumption. If an N-class tanker reduces the speed from 15 knots to 10 knots (rather slow for a tanker) the fuel consumption will fall from 80 tons heavy fuel per day to less than 40 tons per day. And that is highly interesting with today’s fuel prices”, asserts Tommy Thomassen.
The Maersk Tankers slow steaming project was launched in November 2008. Thereafter the complicated part of the process started: to identify the possible obstacles for obtaining Letter of No Objections from the engine designers. “We also launched the project among our crew members on board the vessels involved, giving them the opportunity to come up with ideas and other arguments for or against the project”, says Thomassen and continues: “We received a lot of reactions, especially from our engine crews which have to deal with all the problems on
Framvagn_MR.indd 34
a daily basis. A lot of their input were the usual: ”It cannot be done, because … so and so. But the APMM Fleetgroup managers took every mail and its content seriously and dealt with problems mentioned by the crew”, declares Tommy Thomassen. ”It was a rather interesting dialogue between the ships, our technical department and the engine designers, which in the end led to a fruitful result which will make it possible to reduce speed dramatically.” Over a period of six to nine months, a lot of technical devices on board have been especially looked after and monitored in order to avoid any damage by slow steaming. They are, among other things: loss of turbocharger efficiency, fouling of hull and propellers, loss of lubrication in stern tube bearings, economiser fires due to soot build-up, exhaust receiver soot build-up, cold or warm corrosion of combustion parts, increased vibration levels, loss of fresh water
»Slow steaming might be an option for ballast voyages from Japan to the Arabian Gulf« slow steaming When reducing speed the shipping companies can save fuel (money) but also reduce emissions.
production and increased cylinder lube oil consumption. One of the measures, which has been taken into account at slow steaming, is more frequent inspection of vital parts on the engine. Instead of maybe a weekly inspection of a certain part of the engine, it might have to be inspected every second day in the new world of slow steaming or super slow steaming.
In the beginning of the 1980’s a lot of crude oil carriers performed a special kind of slow steaming in order to save money for the oil majors, which had problems selling the oil. Therefore the tankers with loads of around 200,000 barrels of crude oil were drifting in safe areas (often around the equator in the Atlantic basin). The tankers were used as floating storage tanks as they were on time charter to the oil majors (or owned by the oil majors), which were awaiting an actual sale of the crude oil on board. The system worked and there were no real technical problems with the steam turbine engines on board a VLCC. The boilers were normally closed
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Slow Steaming
Report Photo: Koos Goudriaan
»The tankers were used as floating storage tanks« down to an absolute minimum with only minimal consumption of fuel. The worst problems during those days were the crews on board, which developed a special ”tanker disease”, staying on board a tanker drifting in a remote area of the Atlantic Ocean for months after months. Some tankers were drifting for up to five to six months before heading for the US Gulf or Europe for discharge.
The Maersk Nautica, 307,284 DWT, was built in 2008. tankers sailing in the LR2-pool (with all told 30 vessels), which is also administrated by Maersk Tankers. In the Handytankers pool, Maersk Tankers administrates 89 tankers, includ-
ing a number of owned vessels. Finally, Broström administrates a fleet of 70 tankers, which means that Maersk Tankers all told has around 230 vessels including 29 gas carriers.
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Maersk Tankers fleet consists of eleven crude oil carriers, while another six are under construction in Japan and Korea. Furthermore, Maersk Tankers recently purchased another three new ships under construction at Hyundai in Korea, originally built for Great Eastern. Maersk Tankers will take delivery of the first new ship from STX Shipyard in Korea in the beginning of May 2011. Maersk Tankers has also eleven
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36 Shipgaz No 3 2011
Analysis The Bergen tanker community
By Dag Bakka jr, dag@shipgaz.com
Photo: dag bakka jr
The chemical and product tankers NCC Rabigh and Sequoia (ex Jo Sequoia).
The Bergen tanker community – products and chemicals With a fleet of more than 200 products and chemical tankers, much is going on within this sector of Bergen’s maritime community. The boom and ensuing recession have seen expansion as well as setback, but have also led to spin-offs and new initiative. In our time of consolidation it is interesting to see as many as 10-12 mostly medium-sized operations, each focusing on different core markets. Some are generated from traditional shipping companies like Odfjell, Jo Tankers, Utkilen and Westfal-Larsen, others from the brokerage side like Champion, Bryggen, Atlas and Sea Tank.
Some are integrated shipping operations involving technical and maritime management, while others – like Champion, Bryggen and Hansa
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– rely on external managers. Apart from Odfjell SE, which is a listed company, these operations are all privately owned and to a large extent family controlled. They are also quite different, in that Odfjell, Jo Tankers, Seatrans and Utkilen are generally operating within defined trading areas based on high contract coverage, while others are targeting specific cargoes like methanol, glycol and distillates. Others again are on timecharter to oil companies. Odfjell SE is generally considered to be the second-largest carrier of chemicals, after Stolt-Nielsen Tankers.
»Odfjell SE is generally considered to be the second-largest carrier of chemicals« Odfjell is a specialist in transportation of bulk liquid chemicals, acids, edible oils and other special products.
This is an integrated logistics system with a global presence of regional offices and terminals, still very much influenced by the Odfjell family despite a public listing.
Jo Tankers, which emerged from the same Odfjell stock in the late 1970s, is privately owned by the Abraham Odfjell family. The company has scaled down from a global to a strong regional focus on Europe, Africa and Transatlantic. Seatrans and Utkilen both have regional aspirations with stainless steel tankers, but aiming at different markets. All four of them have gone for stainless steel equipment with high degree of long-term customer relations.
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The Bergen tanker community
Analysis Photo: mats brevik
»All four of them have gone for stainless steel equipment with high degree of long-term customer relations« The last five years – from the peak of the boom through the ensuing financial turmoil – have seen diverse but by no means negative development with four new operations coming on. In 2006 the Utkilen small-tanker segment was de-merged and set up as Sea Tank Chartering, working a fleet of tankers up to 4,500 DWT owned by external owners. This is a youthful company with a North European focus.
The successful Bryggen Tankers, affiliated to Network Chartering, had built a fleet of 38-40 vessels by 2007, including a series of owned units. The crash of 2008/09 led to redelivery of the fleet and sale of assets. However, Bryggen Tankers International emerged from the reorganisation and has focused on the 20,000 DWT segment with tonnage from other owners. During the collapse of Bryggen, three 19,000 DWT newbuildings provided by compatriot Tailwind Shipping were withdrawn. Tailwind set up Hansa Tankers last year to manage these vessels, handled by some of the Bryggen key personnel. With robust financial backing Hansa has shown ambitions to grow and recently picked up the secondhand tanker Chemstar King. In 2009 Atlas Chemical Tankers got into business, being established by brokers who had left Bergen Tanker Brokers and started with new tankers contributed by Turkish owners. Since then, Atlas has expanded with a branch in Singapore and relies today mainly on 20,000 DWT stainless tankers provided by Knutsen OAS Shipping of Haugesund. The latest spin-off, formed a couple of months ago, was made by Rederiet Stenersen who has a fleet of 17 vessels of 16/18,000 DWT, all built over the last ten years. These had all been time-chartered to operators like Stat oil, Neste and Maersk, but as redeliv-
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The Liquid gold (ex Sten Embla), 13,754 DWT. ery loomed, the company made the decision to set up its own commercial branch, Stenersen Chartering. As two senior tanker brokers from Lorentzen-Stemoco were recruited, it was natural to locate the company in Oslo. This signals a bold move to take the company from being a tonnage provider to a commercial player - in a market dominated by Maersk’s Bro ström operation.
The reason why Bergen still has a substantial tanker community may be traced back to the 1960s. The tanker owners found themselves in a poor spot market by 1960/61, and had reluctantly to resort to cargoes of distillates, solvents etc. Odfjell was already running smaller tankers with vegoil, fats, fish-oil and oil products. By the mid-60s Odfjell’s early Transatlantic trading pattern was joined by Westfal-Larsen’s handysize tankers in Odfjell-WestfalLarsen Tankers (OWL). This became in time an industrial operation with
bergen Bergen is the second largest city in Norway with a population of 261,500. Many shipping companies are based in the city.
regular trading patterns, shore facilities and purpose-built vessels with stainless steel tanks and cargo linings. The products/chemical business fared better through the shipping crises of the 1970/80s than the crude carriers. A good number of OWL employees, supported by experienced tanker personnel, went on to other companies in the 1990s, both on the commercial and operational side. Today, former Odfjell employees are found with most of the tanker players in Bergen.
Obviously the access of experienced human resources, including seagoing personnel, has been an important reason for the vibrant Bergen tanker community. But as Bergen lies at a remote end of the world, it is always necessary to sharpen the wits and come well armed with equipment. For all its global nature, shipping is still largely conducted through personal networks.
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Full speed ahead With SKF knowledge on board Propulsion system reliability is vital for profitable and efficient ship operations. SKF has applied innovative thinking and expertise to rotating machinery onboard ships for many years, to help improve fleet availability and cut operating costs. The SKF range of integrated product and service solutions include complete propulsion system installations and alignment, shaft support and thrust bearings, hydraulic couplings and advanced lubrication systems. SKF also provides the technology and know-how to achieve condition-based maintenance best practices according
to class requirements to further maximize fleet availability and maintenance efficiency. Finally, the SKF global distribution network means you have access to critical components wherever and whenever you require them. Whether your business involves designing, building, operating or maintaining ships, you can achieve new levels of performance with SKF knowledge on board. For more information about SKF products and solutions for the marine industry, contact your local SKF representative, or visit www.skf.com/marine
The Power of Knowledge Engineering
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Being accessiBle is aBout location, attitudes and culture
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A Korean rebound EUKOR, one of the largest vehicle shipping companies in the world, is 80 per cent Scandinavian owned and ships over 3 million cars annually. We visited its office and port facilities in Seoul, to see how the company is doing in the wake of the global depression. Text & Photo: Jojje Olsson (except where noted)
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In the outskirts of Seoul, hundreds of Korean made Kia cars are being loaded onto an enormous ship with furious speed. They are only a fraction of the 950,000 Kia vehicles being shipped annually from this terminal at the port of Pyeongtaek. nd a bit further south, in the city of Ulsan, well over a million Hyundai cars are being shipped out every year to five continents. This is done almost exclusively by EUKOR Car Carriers Inc (EUKOR), a Scandinavian company with a unique relation to the Hyundai-Kia Motors Group, one of the world’s largest carmakers. Owned 40 per cent by Wallenius and Wilhelmsen respectively, and with a 20 per cent share still in Korea, EUKOR did well steering through the economic depression experienced by the shipping industry from 2008: “Even if we were clearly affected by the financial crisis, with a sudden drop in volumes, it didn’t hit us as hard as many other companies in the industry”, says Martin Malmfors, EUKOR’s Head of President’s Office, stationed in Seoul.
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According to him there are a number of reasons for this: EUKOR’s largest customer Hyundai-Kia did impressively well during the crisis, as it mainly produces cost efficient and cheap cars. It even surpassed Honda in 2008, and Ford 2009, to become the world’s fourth largest manufacturer of passenger cars. Also, the Korean currency took a nosedive during the depression, as the won declined by almost a third to the US dollar. The Japanese yen simultaneously hit the ceiling, which affected Korean car export in a positive way. At the same time, Martin Malmfors says, a number of charter contracts on ships operated by EUKOR ended just when the crisis became obvious. The company could simply choose not to renew those contracts once the export volumes started to drop: “If one is allowed to say so, the financial crisis appeared with good timing from EUKOR’s perspective.” He also says the effect of a global crisis is not instantly felt in the shipping industry, but sets in only after a while. Hence, 2008 actually came to be the year in EUKOR’s history when it shipped most cars, 3,2 million, measured in Car Equivalent Units, CEU, where 1 CEU equals 10 cubic metres. The next year, 2009, would however be worse for the industry. Korean newspaper Chosun Ilbo reported that the shipment of vehicles from Korea decreased with almost 30 per cent year-onyear from 2008, and the global overproduction of passenger cars reached 57 per cent.
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Entrance to the Pyeongtaek terminal from where Kia cars are being shipped by EUKOR.
South Korea is Asia’s fourth largest economy. In 2010 the country had a GDP per capita of USD 20,590. Photo: asirap/flickr.com
Photo: saebaryo/flickr.com
Kia Motors is South Korea’s second largest automobile manufacturer. The headquarters is located in Seoul.
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950,000 Kia vehicles are being shipped annually from the terminal at the port of Pyeongtaek.
Also, the global markets are changing, and in the past years Hyundai-Kia has established an increasing number of factories outside Korea, producing cars tailored for local markets in China, Europe, India and the US. But according to Martin Malmfors this will not significantly affect EUKOR’s business in the long run: “Production of cars is far more expensive than transportation. In China for instance, domestic regulations make it hard to set up a factory, and the investments needed won’t always cover the money potentially saved on lower wages and transportation.” He says producing cars is a relatively automated process, and the case would be different with a shipyard, which is a much more labour intensive industry. The cost for transporting a passenger car from Asia to Europe would be “about 500 US dollars”, says Martin Malmfors. It is often cheaper to re-export from overseas car plants than to produce close to the market. As an example, he points out that the
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»It is often cheaper to re-export from overseas car plants than to produce close to the market« largest car exporter from the US actually is German BMW. Also, the world’s largest car factory, Hyundai in Ulsan, is situated close to China, now the world’s largest car market, further slicing transportation costs. Even from India, where Hyundai produces small cars for the domestic market, EUKOR ships out some 350,000 vehicles annually. The way back from the volume drop in 2009 has been quick for EUKOR. Despite the financial crisis and the establishment of Hyundai-Kia car factories abroad for local markets, 2010 was the most financially successful year ever in the company’s history, according to Martin Malmfors.
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Kia cars waiting to be loaded onto EUKOR’s carriers at the Pyeongtaek terminal.
Just before the financial crisis, EUKOR placed several large ship orders. In 2007 it had about 30 ships still waiting to be deliv ered, according to Swedish publication Affärsvärlden, and in early 2008, Wallenius and Wilhelmsen placed orders for another eight new super car carriers, worth an estimated 100 million US dollars per ship. Ships were obviously being delivered to EUKOR also during the downturn, and a few of the orders made back in 2007–2008 are yet to be delivered. But contrary to what one might believe, even the orders placed back then came out as favourable for EUKOR: “The new ships are needed right away, and will be in full service from day one. At present we charter ships from about 20 different shipowners, and many of those ships are decades old. With the new ships every trip will be more efficient”, says Mar tin Malmfors. The new ships delivered in 2009 decreased the average age of the fleet to less than ten years per ship, and increased the aver
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age capacity to over 5,300 units. The new ships delivered last year further improved those digits, even if the new statistics are not available yet. Martin Malmfors says EUKOR has actually been experien cing a lack of space almost every year. Also, the ships must con stantly improve, as an increasing share of the cargo is made up of buses, excavators and even high-speed trains. EUKOR’s newest Pure Car and Truck Carriers (PCTCs) with a capacity of over 8,000 CEU are the largest ships for vehicle transportation in the world. They are equipped with 150-ton heavy-duty stern ramps, and a maximum of 6,70 meter deck clearance. A couple of those ships, ordered back in 2008, have just been delivered. Still another handful of ships are being built at a shipyard in Japan, of which two are to be delivered during 2011, and two the year after. For a company of EUKOR’s size, there
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Martin Malmfors, Head of President’s Office, at the terminal in Pyeongtaek just outside Seoul.
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Photo: saebaryo/flickr.com
EUKOR was founded in December 2002 after a somewhat unexpected outreach from the Korean Shipping company Hyundai Merchant Marine (HMM) to Wallenius and Wilhelmsen.
»What one may anticipate in terms of seeing the vehicle shipping market as a very stable business, all of a sudden might not be correct, as huge fluctuations can appear« will be a regular need to renew the fleet with some 4–5 ships every year, says Martin Malmfors: “It’s impossible to foresee highs and lows in this industry, so we rather order new ships every year to ensure a reliable and modern fleet. There is actually a problem to find enough berths in shipyards for the type of ships we want to order.” As of this year, EUKOR has around 90 ships in constant operation, of which around half are owned, and the rest chartered according to demand. Many of the chartered ships are also controlled by EUKOR through long-term charters, and several include buying options, says Martin Malmfors. The standard size for EUKOR’s ships is 6,000 CEU, and the fleet is now calling in 220 ports in 150 countries. EUKOR was founded in December 2002, after a somewhat unexpected outreach from Korean Shipping company Hyundai Merchant Marine (HMM) to Wallenius in Stockholm and Wilhelmsen in Oslo, to buy HMM’s car carrier division. Asia was just recovering from a regional financial crisis, and many companies and nations were in need of capital and investments from abroad. After a long process Wallenius and Wilhelmsen signed a contract with HMM worth 1.3 billion dollars for the exclusive right to ship Hyundai-Kia cars for an initial period of seven years. Of
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the newly founded EUKOR, 40 per cent each would belong to Wallenius and Wilhelmsen respectively, and Hyundai and Kia Motors each got a 10 per cent share. EUKOR also took over debts and obligations for about 2.5 billion US dollars. The deal was the largest acquisition in Asia 2002, and the largest foreign direct investment ever in Korea. “The deal was asset-light in nature from the beginning”, says Martin Malmfors, adding that EUKOR chartered more than 75 per cent of the ships needed at first. As cash flow started to increase, EUKOR could then start buying its own car carriers in order to maximise efficiency. Ever since the business was launched in late 2002, it has experienced a double-digit growth annually. Even during the temporary market slump in 2009, EUKOR was “luckily not even close to red numbers”, says Martin Malmfors. EUKOR’s engagements have become increasingly diversified with time. Today shipping of Hyundai-Kia cars stands for some 60–65 per cent of the total shipping volumes, compared with more than three quarters at the very beginning. Today EUKOR serves most global automotive manufacturers, like Volkswagen, Ford, BMW and Audi, to name a few. As the original ocean carrier contract expired in the end of 2009, Hyundai’s in-house logistic company Glovis was given a 25 per cent share of the Hyundai and Kia export shipments in a new contract, which stretches to 2016. This is a way for both EUKOR and the Korean carmaker not to “put all eggs in one basket”, as Martin Malmfors puts it. He also comments on how the financial crisis somewhat changed EUKOR’s strategy and way of thinking: What one may anticipate in terms of seeing the vehicle shipping market as a very stable business, all of a sudden might not be correct, as huge fluc-
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A stevedore in action, instructing how to drive. It’s not only cars that are being shipped by EUKOR’s car carriers.
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Photo: eukor
Kia cars are being handled inside one of EUKOR’s carriers. Photo: eukor
Photo: eukor
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Cars are being offloaded from one of Eukor’s car carriers. Photo: Eukor
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»Although being our customers – with an obvious wish to minimize their supply chain costs – as shareholders they also have a natural vested interest in the company’s financial success« tuations can appear. Analyses and ten-year plans are suddenly of little use, as one has no choice but to respect the market forces. Hence, EUKOR will in the future strive for a more diversified customer portfolio, as well as chartering a significant part of its fleet, in order to minimize potential damage if a new downturn should occur. There are currently six major vehicle shipping companies in the world, of which five have about 15–20 per cent each of the market. Martin Malmfors estimates that EUKOR is one of the two largest, and together with sister company Wallenius Wilhelmsen Logistics, they control about a third of all ocean transportation of vehicles on the planet. In 1999, the Swedish shipping company Wallenius Lines AB, cooperated with its competitor, Norwegian Wilh. Wilhelmsen ASA to establish the world’s largest vehicle shipping company; Wallenius Wilhelmsen Logistics. (WWL) After an unexpected reach out from Korea in 2002, the Scandinavians got an opportunity to include shipping of Korean cars in its cooperation. Together with Hyundai and Kia, the two Scandinavian companies through an acquisition acquired the car carrier division of Hyundai Merchant Marine Co Ltd. The newly founded EUKOR – a sister company to WWL - was to be owned 40 percent each by Swedish Wallenius and Norwegian Wilhelmsen, giving a 10 per cent share to Hyundai and Kia respectively. ”EUKOR founds its success on the close industrial partnership with the Korean carmakers both in their role as main customers and at the same time 20 percent shareholders. Although being our customers – with an obvious wish to minimize their supply chain costs – as shareholders they also have a natural vested interest in the company’s financial success”, Martin Malmfors explains. He adds that Hyundai and Kia are represented on the EUKOR Board of Directors and have full insight into its financials and both short and long term strategic objectives. ”Even though EUKOR is 80 percent Scandinavian owned, it’s not a subsidiary of Wallenius and Wilhelmsen, but rather organized as an entirely independent company with our own balance sheet to which we have the right to acquire vessels and other fixed assets”, says Martin Malmfors. The headquarters has been based in Seoul since the start 2002, and EUKOR has been run and governed very much like a Korean company, which Martin Malmfors believes have contributes strongly to its success. The original deal included a seven-year sole right clause for EUKOR to ship Hyundai and Kia cars. When a new deal was settled in 2009, Hyundai’s own logistic company Glovis was given a 25 percent share of the Hyundai-Kia shipping. At the same time, EUKOR is also expanding its portfolio with new customers to make it more diversified; a way for the company as well as for the Korean carmakers not to put all eggs in the same basket.
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MAKE WATER • From sea water to fresh water through reverse osmosis (RO) • Scandinavian quality • Standard models ranging from 1,5 m3/d to 200 m3/d
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2011-05-20 15.10
Grandweld making its way offshore
When discussing the United Arab Emirates shipbuilding industry, Drydocks World is rarely left out. But there other players worth mentioning. One of them is the offshore specialist Grandweld. Shipgaz paid them a visit. Text & Photo: pierre adolfsson (except where noted)
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The Dubai-based yard group Grandweld is building a wide range of offshore vessels. The company is now running two yards after an investment of USD 17 million. he company was established in 1984 and specializes in construction and repair of offshore vessels. Today Grandweld is running two facilities in Dubai – at Al Jadaf and Dubai Maritime City. “Yes, the yard is mostly engaged in offshore and we are fo cusing on midsize and small owners. In 2010, our newbuilding projects accounted for 70 per cent of our yard activities. This year the newbuilding activities will account for as much as 80 per cent”, says Jamal Abki, general manager at Grandweld.
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“Our main competition is not coming from other yards in the Middle East area, as one might think. Our main conten ders are based in China and they are cutting the prices. So there is a question of rethinking, how to attract new customers? We believe our 1,500-strong multinational, skilled workforce and specialized capabilities in custom-designed and custom-built ships puts Grandweld at an advantageous position where we can meet the region’s dramatic increase in demand for vessels with the latest technology standards.” The company’s portfolio ranges from anchor handling tug supply vessels, platform supply vessels, construction vessels to pilot boats. All in all, Grandweld is currently offering 15 differ ent vessel models made of steel and aluminum. A majority of the vessels are equipped with Caterpillar engines. “The shipbuilding is getting back on track, but we are not yet back at the 2007–2008 levels. At the same time we are very satis fied with our ship repair division, last year was a very busy year. Our record covers major conversions and modifications”, says Jamal Abki and reveals that owners operating in Europe are be coming interested in the yard. “We have received some inquiries from European deepsea off shore owners for anchor handlers and platform supply vessels.” Grandweld has invested some USD 17 million in the new facilities at Dubai Maritime City. But the original plan is some what changed. “The plan was to close down our facility at Al Jadaf and move the whole operation to Dubai Maritime City but we have decided to stay on with two locations. It is a very good yard facility after all, especially for the construction of aluminum vessels. The facility at Dubai Maritime City is more suited for larger vessels like anchor handlers et cetera.”
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Offshore vessels at the Grandweld production plant at Dubai Maritime City.
Grandweld, established in 1984, has a 1,500-strong workforce today. Grandweld is part of GMMOS (a portfolio company of Abraaj Capital and Waha Capital).
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This facility is located across the street of the company’s headquarters. The Grandweld facility at Al Jadaf.
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 A balancing act, a group of yard workers are repairing an old vessel. The company is accredited by various class societies.
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The offshore vessel Al Safa under construction at Al Jadaf. Photo: Grandweld
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Photo: grandweld
The utility vessel Al Rafa, flagged in Panama. The vessel is made in steel.
Photo: grandweld
The utility vessel Al Nibras, flagged in Kuwait. The vessel is made of steel.
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MaRIne and IndUStRIal
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POWER HOUSE PleASe viSit uS At Donsö tanker Meet 21-22 june, 2011
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Power House AB Klangfärgsgatan 4B, SE-426 52 Västra Frölunda, Sweden Phone +46 31 7625600 www.powerholding.se
2011-05-20 15.11
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2011-05-20 15.11
66 SHIPGAZ NO 3 2011
By Pierre Adolfsson pierre@shipgaz.com
Report Shipgaz Training
PHOTO: PIERRE ADOLFSSON
Shipgaz Training certified by DNV The maritime training provider Shipgaz Training AB has reached an important milestone – recently the company received a DNV SeaSkill management system approval for its online based training tool Shipgaz Training. The approval verifies that management system is in compliance with DNV standards for certification of maritime academies, maritime training centres and maritime simulator centres. DNV SeaSkill assists training providers and manufacturers in assuring that competence is properly addressed, built and retained.
”The management system of Shipgaz Training has taken shape over the last few months. Following the audit a number of issues were corrected. All required elements of a management system standard have now been addressed, which was the basis for the initial approval. Shipgaz Training is the first online training
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provider with an approved management system in accordance with the standard. There are more CBT’s (Computer Based Training) and online courses approved, but no management systems among those providers”, says Ruud de Bruin, Operations Coordinator at DNV. Shipgaz Training is a training tool for operative personnel, developed to meet the never increasing demand for skills-training and competence management among shipping companies worldwide. At the time of writing
»Instead of going away for a classroom course, the training can be done in the student’s home«
Captain Eddie Janson.
over 500 maritime professionals and 24 shipping companies are using the system, among them Finnlines Ship Management, Tärntank Ship Management, Siem Offshore Crewing, Wallenius Marine, DFDS Seaways and Wisby Ship Management.
Shipgaz Training offers a wide range of courses such as Ice Navigation, Personal Safety, Safety Officer, Security Awareness, Introduction to the ISM Code, Thermosetting Plastics and Transas ECDIS. ”Shipgaz Training is suitable for all kind of ship owners. It’s a flexible system, we are able to tailor-make a course quickly for those with special requirements”, says Captain Eddie
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No 3 2011 Shipgaz 67
Shipgaz Training
Report
The DNV approval does not cover any content provided by Shipgaz Training AB, but the company aims at applying for approval of some of its courses, shortly. ”Today the content of the ECDIS course is approved by Germanisher Lloyd. We are also planning to have the ECDIS course approved by DNV
Photo: Pär-Henrik Sjöström
Janson, CEO of the maritime training and consultancy firm MariTrain and co-owner of Shipgaz Training. MariTrain has an extensive experience within shipping and especially within the chemical/oil tanker industry with comprehensive knowledge of all international rules and regulations as well as industry requirements and guidelines surrounding this part of the shipping industry. ”The reason why we choose to develop an online based training platform is that it can provide training to students regardless of their location as long as they have an internet connection. Instead of going away for a classroom course, the training can be done in the student’s home”, says Eddie Janson.
Shipgaz Training is a training tool for operative personnel. At the time of writing 24 shipping companies are using the system. and we have a Ship Security Officer course in the pipeline that will be sent for approval. When this is achieved we will apply for flagstate approvals.” When completing a course the user receives a certificate proving the course is accomplished.
”The certificates will be shown to vetting, CDI and Port State Control inspectors. When Shipgaz Training receives flag state approvals the certificates can be used to receive endorsements as per relevant STCW paragraphs.”
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Rolls-Royce is widely recognised for its ship design and system solutions for a broad range of vessels. Systems comprising propellers and thrusters, engines, stabilisers, deck machinery, rudders, steering gear, automation and
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Specializing in secure communications
Diwiton offers a wide range of marine solutions! Our strength is our knowledge in secure communication onboard ships and our technical capabilities in extreme environment. Diwiton was established in 1967 and our primary line of business at that time was two-way radio transceivers. Since then, the technical revolution has transformed both society and Diwiton; The small one man company that used to sell walkie-talkies have grown to a modern, mid-sized business delivering a wide range of solutions for communication, IT and security as well as installation, configuration and service.
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OUR BUSINESS IDEA By staying one step ahead of our competitors, we strive to offer our customers complete solutions in the field of communications. We are constantly trying to find new solutions and ways of integrating and refining the work flow between user, software and hardware. Diwiton AB’s way of doing business is by valuing the personal relationship with the customer and by constantly improving our knowledge.
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YOUR MARITIME SOLUTION PARTNER
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70 Shipgaz No 3 2011
By Pär-Henrik Sjöström par-henrik@shipgaz.com
Newcomer Finnbreeze
Photo: Pär-Henrik Sjöström
Fast, efficient and large Finnbreeze is the first of six ro-ro vessels from China for Finnlines. The design is based upon the Finnmill-type with some new interesting features. First out of Finnlines’ latest series of ro-ro vessels designed for service in the Baltic Sea and the North Sea area, is the Finnbreeze. The vessel was handed over to the owner on March 10, 2011. The naming ceremony of the first two vessels in the series – the Finnbreeze and her younger sister Finnsea – was held the same day. Sponsor of the Finnbreeze is Mrs Kerstin Bakosch, the wife of Finnlines’ President and Chief Executive Officer Uwe Bakosch. The Finnsea was named by Finnlines’ Chief Financial Officer Seija Turunen.
The builder Jinling Shipyard, situated by the Yangtze River in Nanjing, China, is well known to the owner. The Finnpulp and Finnmill were de-
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livered by the same shipyard in 2002. They were originally built on the initiative of Nordic Forest Terminals and taken on a long term time charter by Finnlines. The charterer eventually decided to purchase the vessels in 2008. Even though the Finnbreeze-class is characterized as an upgraded design of the Finnmill and Finnpulp, there are a lot of new features on the new vessels. The technological update as a matter of fact makes the Finnbreeze-class a new generation of ro-ro vessels in the Finnlines fleet. They are up to date with the very latest market demands, such as cost efficiency, a large cargo intake in relation
»They highlight our commitment to environmental sustainability«
Uwe Bakosch, President and CEO of Finnlines Ltd, about the newbuildings.
to the fuel consumption and sufficient speed resources for flexible and economical operations on different routes with different speed profiles.
The contract for the six newbuildings from Jinling Shipyard was announced on August 24, 2007. It was also informed that the value of the contract was approximately EUR 240 million. The first two vessels were to be delivered during 2010 and the remaining four in 2011. In 2010 Finnlines scored a major coup with the renegotiation of the delivery dates on the newbuildings. The group informed that the move allowed a near perfect synchronization of the fleet reorganization plans, following in the wake of the global financial crisis. The strategy was that
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Finnbreeze
Newcomer Photo: Pär-Henrik Sjöström
»They will be an interesting challenge to operate« the new own ships should replace more expensive, chartered tonnage.
The revised delivery schedule ment that the first two vessels were delivered during spring 2011. The next two – to be named Finnsky and Finnsun – will be handed over during the fourth quarter of 2011. The final pair – the Finntide and Finnwave – will follow during the fourth quarter of 2012. According to President and CEO Uwe Bakosch the names highlight the company’s commitment to reduce the environmental impact of the fleet. The names have never been used in the Finnlines fleet before. It was decided to put Finnbreeze under Finnish flag. When the first voyage started from China towards Europe she therefore flied the Finnish flag with Helsinki as her home port. Also the sister vessel Finnsea, which was handed over on March 30, 2011, is registered in Finland.
Prior to her sea trials the Finnbreeze was moved from the shipyard to another facility down the Yangtze River to receive a final coat of paint. The vessel delivered the expected performance during the sea trials. “The machinery control systems and bridge systems are a significant upgrade on the older sister ships, and with all the technology built into these vessels they will be an interesting challenge to operate,”chief engineer Emanuel Sparring commented on the sea trials in Finnlines News. After the delivery from China to Finland the Finnbreeze made a couple of voyages before entering her permanent schedule. After a round voyage from Lübeck to St. Petersburg and back the vessel made two voyages between Lübeck and Turku. Her fist call in a Finnish port was thus in Turku on April 21, 2011. On April 27, 2011, the Finnbreeze entered the North Sea/Biscay–Finland/Russia ro-ro service by loading in Kotka. The service has a three week cycle, calling the ports of Kotka, Helsinki, Zeebrügge, Bilbao, Antwerp, Helsinki, St. Petersburg, Turku,
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The main console on the bridge as seen from the helmsman’s position. Travemünde and Kotka. On May 11, 2011 she will be joined by Finnsea on the same route. At time of writing the third vessel employed on this service is the Finnpulp.
The trend towards less environmental impact is clearly noticeable in cargo shipping and especially on the short sea trades. A ro-ro vessel of today includes advanced technology from many fields. Finnlines is focusing on reducing the carbon footprint of its ships during the whole life cycle. Time planning is an important tool in reducing the CO2 emissions, as well as the optimization of voyages and routes to achieve the highest possible utilization of capacity. A large and fuel efficient ship minimizes the environmental stress per transported cargo unit or ton. Initiatives such as hull- and propeller polishing, waste heat recovery, shaft generators and electronic engine controls are included in the com-
Half-sisters In addition to Finnlines’ vessels there are a further four vessels of the same type, ordered on the initiative of Nordic Forest Terminals in 2005. Delivered during 2008 to 2010, the Tor Corona, Tor Hafnia, Tor Fiona and Tor Jutlandia are managed by Ellingsen Ship Management and trading for DFDS on a 10-year time charter.
pany’s CO2 reduction programme. Much effort has been put on the hull design, improving the hydro dynamics, as well as utilising enhanced technology for engines and propellers. Economy of scale is crucial. The Finnbreeze has more than 3,000 lane metres for rolling cargo, thus capacitywise replacing two older ships.
The policy of Finnlines includes safety as another part of the environmental responsibility. Extensive training of new crew members is demanded before they take over. There is generally an overlap period in which crew members with experience of the ship introduce new arrivals to the vessel and its equipment. The crew of the Finnbreeze attended an extensive training programme provided by the shipyard. In-house training about the company’s safety, security and environmental procedures was also arranged to introduce those who had not sailed with Finnlines before. At the same time,
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72 SHIPGAZ NO 3 2011
Newcomer Finnbreeze
Cargo is carried on four decks. The layout is about the same as on the Finnmill and Finnpulp after a conversion in 2009, which included the installation of a hoistable car deck on main deck and a ramp between the upper hold and the weather deck. As built, the weather deck of the Finnpulp and Finnmill was intended for lo-lo handling only. The main cargo handling gear on the Finnbreeze is supplied by TTS Ships Equipment AB. The hoistable car decks were ordered from Cargotec’s MacGregor business area. The lay out of the hoistable car decks differs slightly from the retrofitted decks on the Finnmill and Finnpulp. On the Finnbreeze there are two levels of hoistable car decks, including two access ramps, one to each level. The electrically operated hoist-
PHOTO: PÄR-HENRIK SJÖSTRÖM
the Finnish flag state administration not only inspected the ship, but ensured that crew members knew and understood the shipboard emergency procedures, including handling of life-saving appliances and fire-fighting equipment.
BETTER FUEL ECONOMY The Finnbreeze comes with rudder/propeller combination technology, designed to achieve significant improvements in fuel effectiveness, while the bulbous bow has been modified for better fuel economy.
The stern ramps leading to the upper decks (left) and to main deck and lower hold. able car decks are all of a lightweight construction, including a plywood top plate. An electric jigger winch is installed in the lower deck panels and in the access ramps. According to the manufacturer MacGregor there are several operational advantages of electric drives compared to hydraulic ones. There is no risk of pollution or damage to goods by hydraulic oil. Fur-
ther they are maintenance friendly, energy saving due to the lack of continuous running and easy to monitor. The operating time is the same also in cold conditions.
When both of the hoistable car decks are in stowed position the clearance on main deck is 6.3 metres. The Finnbreeze has two separate
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Fure
No 3 2011 Shipgaz 73
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74 Shipgaz No 3 2011
Newcomer Finnbreeze Photo: Pär-Henrik Sjöström
The Finnbreeze slots perfectly into the Finnlines’ environmental programme. Flexible cargo handling arrangements make her efficient in port.
stern doors. On starboard side there is a stern ramp with a free width of 13.2 metres. Including flaps, the ramp is 19 metres long, providing direct access to main deck and to the lower hold via a fixed ramp with a water tight ramp cover. The port side stern ramp is likewise 19 metres long and has a free width of 6.3 metres. A fixed ramp leads up to the upper hold and further on to the weather deck. In the upper hold there is a door closing the ramp to weather deck.
The total capacity for ro-ro cargo on all four decks is 3,326 lane metres. The hoistable car decks have a total area of 5,571 square metres, corresponding to some 600 cars. On weather deck there are fittings for lolo handling of different sizes of standard containers as well, providing capacity for a total of 398 TEUs. For reefer containers there are 75 plugs. The main engines are manufactured by Wärtsilä. The installation comprises two 8L46F medium speed engines with an output of 10,000 kW
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each at 600 rpm. According to Wärtsilä the 46F engine can be run on either heavy fuel oil, marine diesel oil, or on light diesel when being operated within strict coastal or port emissions areas.
»Safety is another part of the environ mental respons ibility« The Wärtsilä 46F engine is fully compliant with the IMO Tier II exhaust emissions regulations set out in Annex VI of the MARPOL 73/78 convention.
The twin screw vessel has controllable pitch propellers from Wärtsilä. The machinery provides a service speed of 21 knots. Two Becker rudders and two 1,100 kW Rolls Royce bow thrusters are installed for obtaining good manoeuvring characteristics. Further the vessel has fin stabilizers. She is built to Finnish/Swedish ice class IA. After delivery the classi fication society was changed from Lloyd’s Register to RINA. At sea electrical power is supplied by two shaft generators of 1,500 kVA each. There are also two Mitsubishi generating sets of 1,100 kW each. The layout of the bridge is similar
to that of the Finnpulp and Finnmill, but the ergonomy has been further improved. There is for example more space at the navigators’ seats due to narrower consoles for the equipment. The integrated navigation system is built around components from Furuno and Sperry. The delivery from Furuno includes three radar sets, two GPS, two ECDIS and one of the autopilots. The other autopilot is among the equipment supplied by Sperry.
In the aft part of the bridge is a space reserved for safety operations, where the bridge team is gathered during drills or a real situation. The most important plans are stored as roll-up curtains in the ceiling and are pulled down when needed, where all members of the team are able to see them. In the vessel there is accommodation for 20 officers and crew. In addition to that there is one pilot cabin and passenger cabins for 12 drivers. The Finnbreeze is manned by a crew of 16. She is the first newbuilding under Finnish flag to utilize the new possibility to employ a mixed crew.
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No 3 2011 Shipgaz 75
Finnbreeze
Newcomer Photo: Pär-Henrik Sjöström
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Photo: Pär-Henrik Sjöström
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Photo: Pär-Henrik Sjöström
Photo: Pär-Henrik Sjöström
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1. Two sets of hoistable car decks increase the flexibility of the vessel, providing many different cargo options. 2. The Wärtsilä 46F main engines. 3. The messroom is divided into two different sections by a desk. 4. The navigation equipment includes two independent ECDIS-stations.
Finnbreeze Type .................................................... Ro-ro vessel Owner ......... Finnlines Group, Helsinki, Finland Flag/Home port . .....................Finnish/Helsinki Builder ........... Jinling Shipyard, Nanjing, China Newbuilding No ......................................070438 Delivered ..................................... March 10, 2011 IMO No ................................................... 9468889
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Class ................................................................ RINA Finnish/Swedish Ice Class ............................. IA Length o a ................................................. 188.4 m Beam, mld . ................................................. 26.5 m Draft ................................................................6.9 m DWT ..............................................................10,372 GT . ................................................................28,002
NT ...................................................................8,400 Cargo capacity, lane m . .............................3,326 Cargo capacity, TEU ......................................470 Cars ................................................................... 600 Main engines ......................... 2 Wärtsilä 8L46F kW/rpm .............................................10,000/600 Speed, knots ....................................................... 21
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76 Shipgaz No 3 2011
By Pär-Henrik Sjöström par-henrik@shipgaz.com
Newcomer Tønsberg
Photo: Wilh. Wilhelmsen and Wallenius Lines
Japanese-built deepsea ro-ro The Wilh. Wilhelmsen group celebrates its 150th anniversary by introducing a giant ro-ro vessel on Wallenius Wilhelmsen Logistics’ round-the-world trade. Designated Mark V, this new generation of Panamax deep sea ro-ro vessels are, according to the owner, the largest in the industry. The Mark V is designed to carry larger and heavier cargo than the company’s previous vessels, still with less impact on the environment due to lower fuel consumption.
In 2007 Wilh. Wilhelmsen and Wal- The Tønsberg is lenius Lines ordered four ro-ro vessels from Mitsubishi Heavy Industries. Wilh. Wilhelmsen’s technical department developed the design in close cooperation with the shipyard. The lead vessel, named Tønsberg, entered service on March 23, 2011. The next vessel in the series will be delivered in August 2011 and the two remaining ones during 2012. The Tønsberg entered service with Wilh. Wilhelmsen’s and Wallenius Lines’ joint venture Wallenius Wilhelmsen Logistics. During the 110 to 120 days round the world trip the
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vessel sails from Europe to US East Coast, Oceania, South East Asia and the Far East, returning to US West Coast, US East Coast and back to Europe. The Tønsberg has six fixed cargo decks and in addition to these three hoistable cargo decks, offering several combinations for flexible cargo handling.
»There are six fixed cargo decks and in addition to these three hoistable cargo decks« the fourth vessel with this name in the Wilh. Wilhelmsen fleet. It is named after the coastal town in Norway where Wilh. Wilhelmsen was founded in 1861.
The decks are connected by 8 metres wide internal ramps. Free height on main deck is 6.4 to 7.1 metres, and on the other fixed decks 3.2 to 4.2 metres. The 12 metres wide stern quarter ramp has a safe working load of 505 tons. Cargo may also be carried on weather deck, which has access via a 4 metres wide ramp from the deck below. A key feature in the design of the
Mark V series is the streamlined hull and an advanced turbo generator, which produces electricity from exhaust heat. The turbo generator also reduces emissions of sulphur dioxides and carbon dioxides by five to six percent. The Tønsberg will therefore use 15 to 20 per cent less fuel per transported unit than its predecessors.
A Unitor ballast water treatment system avoids harmful transfer of microorganisms to the sea. Further, all fuel oil tanks are protected to minimize the risk of leakage in case of grounding or collision. The main engine is an electronically controlled, slow speed, two stroke B&W 7L70ME-C8, with an output of 22,890 kW at 108 rpm. Coupled to a fixed pitch propeller the main engine provides a service speed of 20 knots. An efficient low resistance rudder and bow thrusters are fitted to enhance manoeuvrability.
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No 3 2011 Shipgaz 77
Tønsberg
Newcomer Photo: Wilh. Wilhelmsen and Wallenius Lines
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Photo: Wilh. Wilhelmsen and Wallenius Lines
Photo: Wilh. Wilhelmsen and Wallenius Lines
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1. The Tønsberg has six fixed heavy decks and three hoistable decks. 2. The wheelhouse and living quarters in the fore part of the vessel provide more space for weather deck cargo. 3. The quarter ramp is 12 metres wide and has a 500 ton capacity.
TØNSBERG Type .................................................... Ro-ro vessel Owner ...Wilhelmsen Lines Shipowning Malta Flag/Home port . ........................................ Malta Builder .................Mitsubishi Heavy Industries, Nagasaki, Japan Call Sign: ............................................... 9HA2066
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Newbuilding No ....................................No: 2262 Delivered ............................................March 2011 IMO No ..................................................... 9515383 Class .......................................Det Norske Veritas Length o a ..............................................265.00 m DWT ............................................................. 41,820
GT . ................................................................ 74,622 Main engines .Kawasaki MAN B&W 7L70ME-C8 kW/rpm ............................................. 22,890/108 Breadth, mld ............................................32.26 m Depth, main deck ................................... 15.20 m Draught, scantling ................................. 12.30 m
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80 Shipgaz No 3 2011
Fleet Review 2
Photo: Royal Caribbean International
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Photo: Bent Mikkelsen
Photo: Georg Jensen
The Hiiumaa delivered Newbuilding On April 28, 2011 the Estonian ferry operator Saaremaa Shipping Company took delivery of the Hiiumaa, the last ferry in a series of three from the Norwegian shipyard Fiskerstrand Verft. The Hiiumaa flies the Estonian flag and is employed on the domestic route between the Estonian mainland and the Hiiumaa island. The first port of call in Estonia was Rohuküla on the Estonian mainland.
The previous ferries in the series, the Muhumaa and Saaremaa, were delivered in 2010. For the newbuilding project the BLRT Grupp and Fiskerstrand Verft established the joint venture Fiskerstrand BLRT. The steel hulls and the superstructures of aluminum were built in Klaipeda and the vessels were fitted out in Norway. The third ferry completes an EUR 90 million investment programme of Saaremaa Shipping Company. Including modifications and expansions of the ferry ports by the state owned company Saarte Liinid, the over all cost of the renovation project is close to EUR 128 million.
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Sale of surplus ro-ro Newbuilding Odense Steel Shipyard has finally managed to sell its newbuilding 222, which has been laid up since September 2010. The buyer is the Maersk Co. Ltd in London – an affiliate of A. P. Møller-Mærsk.
No. 222 was renamed Cragside and left Korsør for Marseilles in France. The vessel is now trading from Marseilles to Rades and La Goulette in Tunisia on timecharter. The solution is an indicator of the present market for ro-ro vessels, which is more than bad. The timecharter will probably gene rate loss to the Maersk Co., even though the original owner already has paid more than half of the vessel. Originally ordered by the investment company Prospect Number 61 with an address in Hong Kong, the inten-
tion was to sell the vessel to external investors. However, this failed due to the financial crisis and the owner had to give up. The vessel remained at the shipyard. Cragside is one of eight ships ordered in 2007, when it became clear that the Odense Steel Shipyard needed to divert from building large container carriers for the A. P. Møller-Mærsk Group. The design was purchased from Flensburger Schiffsbau Ges, which gets a license fee for each ship built. The standard ship type has capacity for 3,300 lanemetres of cargo and a deadweight of 11,600 tons. Powered by two Caterpillar (MaK) engines, developing 18,000 kW, the vessel has a service speed of 21.5 knots.
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No 3 2011 Shipgaz 81
Fleet Review Photo: Pär-Henrik Sjöström
Photo: Pär-Henrik Sjöström
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Photo fleet review
1. Oasis-Class. This rare view is not “photoshopped”. Both of the Oasis-class vessels posed before the camera off Ft Lauderdale in late 2010, before the brand new Allure of the Seas entered her normal schedule. 2. Mons. The former Swedish tug Mons, built in Norway in 1963, has been sold to Rauma Chartering and Towage Agency. 3. Princess Anastasia. St. Peter Line’s service between St. Petersburg and Stockholm, with a weekly call at Tallinn, was inaugurated in the end of March 2011. The ferry Princess Anastasia is employed on the route. She was built in Turku as the Olympia for Viking Line’s traffic in 1986.
Photo: STX Finland/Jouni Saaristo
Photo: Pär-Henrik Sjöström
Refit in 4 weeks for Castoro Sei
New service for Baltica Charter The Finnish liner operator Power Line, maintaining ro-ro services from Helsinki and Turku to Travemünde, takes the Malta-flagged ro-ro vessel Baltica on long term charter. The Baltica entered service on April 30, 2011 on the route Helsinki–Travemünde. Power Line also operates the 1,450 lane metre sister vessels Global Freighter and Global Carrier, built in 1977 and 1978 respectively. The Baltica has capacity for 2,170 lane metres of ro-ro cargo and brings a remarkable addition of capacity to the service.
According to the ship register of Germanischer Lloyd, the Malta based company Powerco Shipping Malta Ltd is registered as the new owner of the vessel. Management
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for the Baltica and the other vessels operated by Power Line is handled by ASP Ship Management Scandinavia in Mariehamn. “The Power Line traffic is successful and more lane metres were needed”, managing director Mikael Holm of ASP Ship Management Scandinavia told Shipgaz. The Baltica was built in South Korea in 1990 and delivered as the Ahlers Baltic to the Belgian shipping company Ahlers for Finncarriers’ liner service between Finland and the Continent/UK. In 1995 she was renamed Transbaltica and in 2003 Baltica. She has been on time charter to Finnlines but has now been replaced by new tonnage. The vessel continues sailing under her present name in Power Line’s service.
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Refit The pipelayer Castoro Sei arrived to STX Finland Oy, Turku shipyard for a major overhaul on the morning of May 9, 2011. Towed by the offshore tug/supply ship Maersk Tackler, the last leg through the archipelago took the whole day and night. The strange looking equipage certainly got the attention of boaters, enjoying the exceptionally beautiful spring weather this Sunday.
The Castoro Sei is a 152 metres long and 70.5 metres wide semisubmersible pipelaying vessel, owned by the Italian offshore company Saipem S.p.A. The contract bet ween STX Finland Oy and Saipem S.p.A provides employment for about 1,000 persons during four weeks at the shipyard. The pipelayer has been deployed in laying the pipeline for the Nord Stream project. STX’s Turku shipyard will carry out an extensive and demanding overhaul of Castoro Sei’s mooring- and pipelaying systems. Some other maintenance activities and repairs will also be done during the stay at the shipyard.
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82 Shipgaz No 3 2011
Fleet Review Photo: Bent Mikkelsen
Photo: Wallenius Lines
The greenest of them all Newbuilding On April 15, 2011 Wallenius Lines took delivery of the LCTC (Large Car and Truck Carrier) Carmen from Daewoo Shipbuilding & Marine Engineering in Korea. The vessel is built to the highest class of Lloyd’s Register of Shipping and flies the Swedish flag. The Carmen has 13 decks, including five movable, with a total capacity of 7,879 cars or a combination of 3,508 cars and 432 buses.
Wallenius Lines is a forerunner regarding environmental performance, and the Carmen is no excpetion. Several improvements have been made compared to earlier ships. Fulfilling new IMO regulations, the Carmen is the first vessel in the Wallenius fleet with protected bunker tanks, located further inside the ship. The loss of loading capacity in the lower cargo holds has almost been compensated through a full length upper garage deck. Another new feature is the reduced wind profile, achieved by lowering the deck house by one tier and a mounted front wind screen. This has a direct positive effect on the fuel consumption. The internal ramp systems are simplified and clean bulkheads makes cargo handling faster and easier.
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New unit to CT Offshore Acquisition Last winter CT Offshore again added a second-hand vessel to its fleet of service vessels connected with cable laying. The latest addition is the former German customs patrol vessel Bremerhaven, which arrived at Svendborg for rebuilding and upgrading to Danish flag and service for the offshore sector. The vessel will be fitted for especially pre survey and after survey of for example cables between wind turbines in a wind farm using ROVs (Remote Operated Vehicles). “Throughout 2010 we have witnessed an increasing demand for 24 hours operation on the projects and we have purchased a bigger vessel with more accommodation capacity”, says Paw Cortes, CEO of CT Offshore.
The first three vessels in the CT Offshore fleet are smaller vessels capable of operation in shallow water but without any
accommodation, which means that crew and clients must be accommodated ashore. The customs patrol vessel Bremerhaven has been renamed Sander II and will offer accommodation for the crew and client re presentatives on board during operation. The Sander II was built in 1985 by Fr Schwees Schiffsbau und Bootwerft at the German town of Berne near Bremerhaven. The vessel is 38.4 metres in length and has a breadth of 7.8 metres. The tonnage is 258 gt. In its former role as customs patrol vessel it was capable of a speed of up to 28 knots from an engine plant consisting of three Deutz engine type TBD504V12 developing 3,000 kW all told. When the Sander II joins the fleet, CT Offshore operates five units. In addition to the Sander II the vessels are Sander (65 GT), Line (108 GT), Nico (457 GT) and Sia (1.781 GT).
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With Shipgaz Training we offer a time saving, cost efficient and easy-to-use service for your operative personnel. Try it and we are confident that you will agree that it is the most user friendly and pedagogic computer based training available for the marine industry. WWW.SHIPGAZ.COM/TRAINING
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No 3 2011 Shipgaz 85
Fleet Review Photo: Bent Mikkelsen
Photo: Pär-Henrik Sjöström
Coasters sold for recycling
Bore Sea in service Newbuilding The first of the two newbuildings for Bore Ltd of the Rettig Group was delivered on April 29, 2011 by Flensburger Schiffbau-Gesellschaft. One week later the newbuilding, the shipyard’s hull number 744, was officially named Bore Sea by Mrs Astrid Mitts, the wife of Bjarne Mitts who is the President and CEO of Rettig Group. The same day also the sister ship with shipyard number 745 was named Bore Song by Mrs Anne-Maj Grönroos-von Rettig. On the same day there was thus a naming and launching ceremony as well as a naming and sail-away ceremony at Flensburg.
The Bore Sea sailed for Holmsund, where she loaded for SCA and continued to Sundsvall. After discharging in Tilbury and Rotterdam she entered a time charter for Transfennica. The vessel is employed on the route Zeebrügge–Bilbao.
The vessel type is based upon a stan dard design of Flensburger, but includes a number of modifications on the initiative of Bore. Reduced bunker consumption is of utmost importance and a key factor for a charterer. As main engine Bore chose to install a Wärtsilä common rail engine of the type Wärtsilä 12V46F-CR, with an output of 12,000 kW at 600 rpm. The engine is designed for using HFO 380 cSt as well as MDO as fuel. The vessel is also prepared for a scrubber installation to reduce SOx. The cargo capacity is a total of 2,863 lane metres on three decks. In the fore part of main deck the vessel has hoistable car decks in two levels, providing additional car carrying capacity. The Bore Sea sails under Finnish flag with mixed crew. The sister ship Bore Song will be delivered in mid July 2010.
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Recycling The coaster Cormorant has been sold for recycling at the Fornæs’ plant in Grenå, Denmark. Prior to the sale the coaster had been lying idle at Frederiksværk, abandoned by her German captain owner. The captain left the ship at Christmas 2009 with three crew members on board. The Cormorant was sold on auction in April 2011 on behalf of ITF (International Transportworkers Federation) to claim the wages for the crew. The 1966-built coaster was hammered down by Fornæs and towed to Grenå, where it was lifted ashore a week later.
Another coaster sold for recycling is the Salona, which has been managed by RMS-Group at Lübeck on behalf of a Scandinavian part ownership. Sailing under the Honduras flag, the Salona has called numerous ports in Denmark, Sweden and Germany during the past 21 years, when the last change of name ocurred. The Salona was originally built at Hjørungavaag, Norway, for Irish account as the Arklow Dawn. She carried her last cargo to Randers and proceeded after that to Grenå after 38 years of trading in European waters.
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We provide STCW certified training We offer advanced training in maritime safety and are a resource for fishermen and sailors. We offer a wide range of courses, visit our website our contact us at: www.sjosakerhet.nu, info@sjosakerhet.nu, +46 (0)–31 97 65 90.
16.15
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2011-05-19 14.10
86 Shipgaz No 3 2011
Fleet Review Newbuilding contracts in the Nordic market Month
Owner
Nat
April 2011 Havsnurp
Dwt
No
62.6 m
Type
Shipyard
Delivery
Value
fishing
Karstensen
8.12
purse seiner
Remarks
Maersk Drilling
Den
jack-up
Keppel Fels
end 13
USD 550 m
Gusto
Maersk Drilling
Den
jack-up
Keppel Fels
beg 14
USD 550 m
Gusto
Finnferries
Fin
65 m
Knutsen OAS Shipping
No
160,000
Maersk Drilling
Den
ferry
STX Finland
12.12
250 pax
sh tank
Hyundai
12
USD 100 m
drillship
Samsung
3q13
USD 650 m
DP2 shuttle
Maersk Drilling
Den
drillship
Samsung
3q13
USD 650 m
Höegh LNG
No
170,000
LNG
Hyundai
13
USD 250 m
storage/regas
Höegh LNG
No
170,000
LNG
Hyundai
13
USD 250 m
storage/regas
DOF
No
5,000
mpsv
STX Aukra
2h12
MRV05
DOF
No
5,000
mpsv
STX Aukra
2h12
MRV05 ROV
5,000
MRV05 SP
DOF
No
Seadrill
No
mpsv
STX Aukra
2h12
drillship
Samsung
3q13
USD 600 m
Seadrill
No
dr barge
Cosco Nantong
1q13
USD 115 m
Fred Olsen Energy
No
drillship
Hyundai
3q13
USD 615 m
Østensjø Rederi
No
5,000
psv
Ast Gondan
9.13
Northern Supply
No
4,600
psv
Drydocks Batam
11.12
USD 42 m USD 42 m
Northern Supply
No
4,600
psv
Drydocks Batam
1.13
May
Rem Offshore
No
6,500
psv
Kleven
12.12
Olympic Shipping
No
4,800
psv
Kleven
11.12
NOK 380 m
Awilco LNG
No
160,000**
LNG
Daewoo
13
USD 195 m
Awilco LNG
No
160,000**
LNG
Daewoo
13
* = gross tons
** = capacity in cubic metres
ST920 PSV09CD PSV09CD VS499 LNG MT6015
USD 195 m All details believed to be correct but not guaranteed
Secondhand transactions in the Nordic market Month Name
Dwt
March1) Telnes
Built
10,110 1982
Type
From
unloader
Jebsen Beltships, Bergen
Price
Buyer
Tinnes
10,110 1983
unloader
Jebsen Beltships, Bergen
CSL, Canada
Trones
11,955 1986
unloader
Jebsen Beltships, Bergen
CSL, Canada
Trollnes
8,734 1985
unloader
Jebsen Beltships, Bergen
CSL, Canada
Tornes
8.709 1984
unloader
Jebsen Beltships, Bergen
CSL, Canada
Trimnes
17,309 1990
unloader
Jebsen Beltships, Bergen
CSL, Canada
Clydenes
7,182 1996
unloader
Jebsen Beltships, Bergen
CSL, Canada
Lilleborg
306,000 1993
Honest Rays
1)
Western Seqi = Not previously reported
tanker
12,000 2005 mpp 276** 2008 tug * = gross tons
Dannebrog, Copenhagen
USD 26 m
Palembros, Greece
CS & Partners, Cph
USD 13 m
Germany
Western Bulk, Oslo ** = capacity in cubic metres
Landskrona Stål AB
Remarks/New name
CSL, Canada
LKAB, Narvik All details believed to be correct but not guaranteed.
REPAIR SHIPYARD IN HELSINGBORG SWEDEN ”The shipyard in the heart of Oresund Strait”
~24 hrs service ~ Dry dock: Crane cap: Phone: Fax:
112 x 16 meters 40 and 5 tons +46 42 12 02 95 +46 42 18 09 16
E-Mail:
landskronastal@landskronastal.se
Bakvagn_07 MR(rättversion).indd 86
Helsingborgs Shipyard with a rich history in shipbuilding and repairs since 1876, is now run by Landskrona Stål AB. We can perform repairs both in our drydock, as well as on board ship.
www.landskronastal.se
2011-05-19 14.10
No 3 2011 Shipgaz 87
Fleet Review Month Name
Dwt
Cariad
45,000 1996
Built
Type
From
Price
Buyer
tanker
Admanthos, Greece
USD 11 m
Norwegian
Bulk Voyager
Bulk Navigator
53,000 2005 bulk
Interorient, Hong Kong
USD 47 m
Spar Sh, Bergen
53,000 2006
bulk
Interorient, Hong Kong
en bloc
Spar Sh, Bergen
Maersk Madrid
59,285 1989
container
A P Møller Maersk, Cph
USD 22.5 m
Diana Containerships, Greece
Maersk Malacca
56,049 1990
container
A P Møller Maersk, Cph
USD 24 m
Diana Containerships, Greece
Maersk Merlion
55,971 1990
container
A P Møller Maersk, Cph
USD 24 m
Diana Containerships, Greece
Baltica
13,700 1990
roro
Finland Roro, Oslo
EUR 6.5 m
Lillbacka, Mariehamn
Kevin S
2,275 1984
dry cargo
Kevin S GmbH, Hamburg
Spf Vermland, Faroes
April
Northern Mariner
1,965 1986
psv
Trico Marine, Haugesund
Seaport Dubai
Northern Queen
2,777 1982
psv
Trico Marine, Haugesund
Seaport Dubai
Northen Genesis
3,060 1983
psv
Trico Marine, Haugesund
Seaport Dubai
Hyundai resale
318,000 2012
tanker
Great Eastern, India
USD 105 m
A P Møller Maersk, Cph
Hyundai resale
318,000 2012
tanker
Great Eastern, India
USD 105 m
A P Møller Maersk, Cph
Hyundai resale
318,000 2012
tanker
Great Eastern, India
USD 105 m
A P Møller Maersk, Cph
Vestland
bulk
Vestbulk AS, Bergen
Hopen Frakt, Namsos
Clipper Trojan
tanker
Clipper, Copenhagen
USD 7.5 m
Far East
Hunter
22,700 1983
tanker
Salhus Sh, Haugesund
USD 9.85 m
Daewoo, Korea
Jorita
36,000 1985
bulk
J J Ugland, Grimstad
USD 6.75 m
Greeks
Ellen Kosan
3,200** 1996
LPG
Lauritzen Kosan, Cph
USD 6 m
Philippines
West Juno
jack-up
SeaDrill, Stavanger
USD 248.5 m
UK
Gan-Voyager
46,600 2007
tanker
Dunya, Turkey
A P Møller Maersk, Cph
Maple Leaf resale
32,500 2011
bulk
undisclosed
USD 24m
Ivesteringsgrp Danmark, Cph
Maple Leaf resale
32,500 2012
bulk
undisclosed
USD 24m
Ivesteringsgrp Danmark, Cph
May
Stabben Junior
dry cargo
Stabben Jr, Kristiansund
Molo Shipping, Ålesund
Spar Garnet
30,686 1985
bulk
Spar Shipping, Bergen
USD 5.9 m
Greeks
Redwood
14,931 1978
bulk
Lind Stoneship, Fredrikstad
breaking India
Weston
14,937 1979
bulk
Lind Stoneship, Fredrikstad
breaking India
Whitewood
14,931 1978
bulk
Lind Stoneship, Fredrikstad
breaking India
Front Breaker
169,000 1991
obo
Frontline, Oslo
USD 11.7 m
as is Singapore, breaking
Sarah
offshore
Marine Subea, Oslo
auction
Dofcon, Bergen
1,388 1984 15,300 1996
2010
2,888 1983
11,572* 2009
* = gross tons
** = capacity in cubic metres
Remarks/New name
All details believed to be correct but not guaranteed.
Combi Freighter 3850
Combi Freighter 8200
Combi Coaster 2500
Combi Freighter 3850
Combi Freighter 8200
Combi Coaster 2500
FROM STANDARD TO ART CUSTOM BUILT IN SERIES PRODUCTIONS
DAMEN DAMEN SHIPYARDS BERGUM Damsingel 4 (Industrieterrein Zuid) 9262 NC Suameer
Bakvagn_07 MR(rättversion).indd 87
Member of the DAMEN SHIPYARDS GROUP
P.O. Box 7 9250 AA Bergum
Tel. Fax
+31 511 46 72 22 +31 511 46 42 59
Q
info@damen-bergum.nl www.damen-bergum.nl
FROM STANDARD TO ART 2011-05-19
14.10
88 Shipgaz No 3 2011
Retro The history of product tankers
By Bent Mikkelsen bent@shipgaz.com
Photo: The municipality of Aarhus
The Christine at Aarhus on March 3, 1891.
Bild
The product carrier in retrospect The first modern product carrier, dedicated to distribution of clean pro ducts, was delivered from Odense Steel Shipyard in February 1965. The product carrier in the tanker trade has a status as a kind of high-class tanker, which was invented in the middle of the 1960s, when the first dedicated units were built for Danish tanker owner A. P. Møller. Since the middle of the 1960s, the product carriers have been developed and fine tuned to 2011 state-of-the-art ships, carrying a variety of clean products for the oil industry.
The first ever dedicated tanker was the German Glückau, which was delivered in 1886, only 27 years after the first petroleum products were found by Colonel Drake in Titusville in the USA. During the 27 year span, the product called “white spirit” was particularly used as fuel for lamps in Europe. That led to a massive trans-
Bakvagn_07 MR(rättversion).indd 88
»The first ever dedicated tanker was delivered in 1886« The German Glückau was delivered only 27 years after the first petroleum products were found by Colonel Drake in Titusville in the USA.
port of white spirit across the Atlantic, with Glückau as the first. It lasted only a few years, as it was lost after grounding on March 25, 1893. The first Scandinavian tanker was the Danish built and Danish flagged tanker Christine, which was delive red by Burmeister & Wain of Copenhagen. The tanker was ordered by Det Danske Petroleums-Aktieselskab, which was founded by four merchants in April 1889 who “saw the light” using white spirit as a lamp fuel.
Christine started sailing between Marcus Hook (close to Philadelphia) and New York and Copenhagen. The
tanker took a full cargo of white spirit from the US port for discharge in Copenhagen. A crossing usually took 10 to 12 days in the summer time and a little longer in the winter season. The ship was powered by a steam engine, but was also fitted with sails on its three masts, in case the still young technology with steam engines should fail. Christine was sold off in 1901 in a shuffle with J. D. Rockefeller’s Standard Oil of New Jersey, which had taken over part of the Danish company from the aging founders. Standard Oil became a major player in the tanker business and invented the brand Esso in 1920, when a gasoline product was given the name Esso, which is actually the sound of SO for Standard Oil.
2011-05-19 14.10
No 3 2011 Shipgaz 89
The history of product tankers
Retro Photo: Esso archives
Esso København, the largest tanker under Danish flag in 1947, but later used as product carrier for local distribution in Scandinavia. Before the delivery of Glückau and Christine, petroleum products were carried across the Atlantic on sailing vessels, which carried the products in drums in the cargo holds. On the return voyage back to the US East Coast, the drums were carried on the same sailing vessel as deck cargo, with grain as the main cargo.
In the following years tankers became more all round tankers, in the sense that they were built for carrying liquid products in all aspects. From the mid 1920s the industrial tanker became part of the market. It was mainly the oil majors, which built their own tankers to carry their own products from US to Europe. Anglo-Saxon (Shell), Anglo-American (Standard Oil in the UK) and BaltischAmerikanische Petroleum Import (Standard Oil in Germany) were major players in the tanker business. Independent owners began to look at tankers around 1925-1930. Some owners, like Danish A. P. Møller,
Bakvagn_07 MR(rättversion).indd 89
built their first tanker in 1928 (Emma Mærsk, built at Burmeister & Wain, 13,580 DWT). In the beginning of the 1930s, some of the oil majors began to phase out their old steam tankers. Anglo-Saxon Petroleum sold their Melania, which was purchased by a new limited company in Grimstad, Norway, called Ugland Rederi A/S. The 8,300 DWT steam tanker had been in service since 1914 and was taken over at Singapore on July 20, 1930 and renamed Sarita for the Norwegian flag and was in the following years trading between Singapore and Australia.
In the next 35 years, the tankers built were all around tankers, which were used both to carry clean products and dirty products. As of the 1950s, tankers were often used as clean carriers, after a very thorough cleaning process. To clean up a tanker with dirty residues in the tanks was an almost impossible job by using the crew and their hands even though a tanker
crew on a 14,000 DWT ship in the 1950s often consisted of around 50 persons. Instead, it was done by switching to a clean product, voyage by voyage. If the last cargo was heavy fuel, tanks could be a little cleaner if the next cargo was gasoil and so on, until the tanks were so clean that a cargo inspector would accept them for carrying white spirit or gasoline. But, it was basically the same ships used for all kinds of pro ducts.
»From the mid 1920s the industrial tanker became part of the market« Product tanker There are two basic types of oil tankers: the crude tanker and the product tanker. Product tankers are generally much smaller and are designed to move petrochemicals from refineries to points near consuming markets.
A 1950 built tanker, 13,000 DWT, could, in the boom days before the closure of the Suez Canal in 1956, ea sily be trading as a crude oil carrier hauling crude oil from the Persian Gulf to a Swedish refinery. This type of tanker could also be employed as a tanker for distribution of clean products from European or Scandinavian refineries.
2011-05-19 14.10
90 Shipgaz No 3 2011
Retro The history of product tankers
An example was the Esso Køben havn, which entered the Danish register in 1947, becoming the largest tanker flying the Danish flag, 17,885 DWT. It was originally built in Eng land in 1930, for Standard Oil, sailing under the German flag with Danzig as port of registry under the name of Peter Hurll. In the mid 1950s, when Dansk Esso received a number of modern diesel tankers in their fleet, Esso Køben havn retired from the crude oil trade from South America to become a clean product carrier trading from the Esso refinery at Fawley in the Southern part of England to Danish and Swe dish depots carrying a number of products, from gasoline (also often mentioned as motorspirit) to gasoil, and white spirit.
During the 1950s, a race began, mainly between two tanker owners/ operators, over the size of tankers. It all started when the Greek tanker owner Aristotle Onassis ordered a 45,270 DWT tanker from Howaldts werke in Hamburg. This became the Tina Onassis, which was bigger than any other tanker in the world at the time. This became a challenge to the Greek colleague Stavros Niarchos, who ordered even bigger tankers in Japan. Their fight to have the larg est tankers also triggered the Texan
Photo: zee-photo
»There was no winner of the race as the title went from one to the other and back again«
The Maersk Promise.
The largest The world’s largest tanker ever was the Seawise Giant, which originally was built as a 418,610 DWT unit from Sumitomo in Yokosuka, but before delivery it was lenghtened to 564,700 DWT.
tanker owner Daniel K. Ludwig to take up the challenge to build even bigger tankers in Japan. There was no winner of the race as the title went from one to the other and back again during the years. In 1966 the first ever tanker above 200,000 DWT was delivered from a Japanese shipyard. It was the Ide mitsu Maru, a traditional 209,000 DWT tanker built for crude oil trading from the Persian Gulf to Japan. Like a number of other tankers from the period it sailed only a relatively short time and was sold for recycling in No vember 1980, only 14 years old. The tanker size race hit a peak in 1977, when oil major Shell’s French affiliate took delivery of the first of
four super giants 555,000 DWT crude oil tankers. The quartet (two owned by Shell France and two owned by leasing companies) sailed less than 10 years before being scrapped. They were named Battilus, Bellamya, Pierre Guillimat and Praial).
The world’s largest tanker ever was the Seawise Giant, which originally was built as a 418,610 DWT unit from Sumitomo in Yokosuka, but before delivery it was stretched to 564,700 DWT. Seawise Giant traded very little and spend a number of years as float ing storage. The tanker had a number of years flying the Norwegian flag as Happy Giant and Jahre Viking before being
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Bakvagn_07 MR(rättversion).indd 90
Stand No C03-23
+ 46 31 338 7530 sales@scanjet.se www.scanjet.se/mps
2011-05-19 14.10
Born to perform for efficiency and environment
TARNBRIS
11.288 tdw 12.215 cbm
byggd 2007 på Selah Shipyard Turkey
TÄRNTANK REDERI AB
Vestre Strandvej 10, 9990 Skagen, Denmark +45 98 40 70 60 www.tarntank.dk
Bakvagn_07 MR(rättversion).indd 91
2011-05-19 14.10
92 Shipgaz No 3 2011
Retro The history of product tankers Photo: Bent Mikkelsen
The Torm Gudrun, a 110,000 DWT product carrier in the LR2 segment. recycled at Alang, India, in 2009. The first modern product carriers, dedicated to distribution of clean products, were delivered in February 1965, when Odense Steel Shipyard delivered Dangulf Mærsk and later the sister vessel Svengulf Mærsk for a joint venture of A. P. Møller and oil major Gulf’s Danish affiliate and refinery at Gulfhavn.
The pair of 5,200 DWT tankers were the first tankers directly built for clean trading, not for the usual combination of dirty and clean trade. The two Mærsk tankers were followed by the 5,100 DWT Olau Høg built by Helsingborg Varv for the Danish Olau Line. Olau Høg went directly from the
Bakvagn_07 MR(rättversion).indd 92
builders at Helsingborg to a time charter for Dansk Esso for clean distribution in Denmark and Sweden. Olau Line had another two sister ships delivered in 1966, which also joined the clean trade in Europe. The smaller distribution vessel – tankers up to a size of 1,000 to 1,200 DWT were also renewed in 1960s, when a number of operators and tanker owners in Denmark and Sweden built new tankers to meet modern standards from the oil majors, which were the main customers for the trade. The shipping industry continued to build new tankers in the segment
»This pioneering in A. P. Møller led to a massive investment in product carriers« The A. P. Møller Mærsk Group operates in 130 countries. The group has some 108,000 employees.
between 1,000 DWT and 5,200 DWT throughout the 1960s and 1970s to serve local as well as overseas needs. Sometimes a small cargo could be sailed on a small tanker far from the usual trade patterns. During the 1960s, the Swedish owned tanker Stella Atlantic traded in the Caribbean area for several years. In 1970, the Danish tanker Lone Wonsild was fixed for a voyage from Fawley to New Orleans with 950 tons of lubrication oil at a fantastic rate.
The Danish giant A. P. Møller has been steadily engaged in the product tanker segment throughout all the years since its first tanker was delivered in 1927. 50 years later, in 1977, A. P. Møller
2011-05-19 14.11
No 3 2011 Shipgaz 93
The history of product tankers
Retro Photo: K. Kielsholm Madsen
The Charlotte Mærsk – an all round tanker operating as product carrier for Dansk Esso. Here pictured at Aarhus. Photo: Knud Fredfeldt
The Olau Høg, one in a series of product carriers from 1965–1966. took the lead in the business by taking delivery of the first in a series of giant product carriers of 69,000 DWT. At delivery, the tanker Nora Mærsk, was followed by five sister vessels, were the largest product carriers in the world.
In fact, these ships were one of the less glorious businesses in the A. P. Møller Group. The world was not prepared for such large product carriers (247 metres long and 32 meters on beam) for several reasons. There were only a few terminals in the Persian Gulf, Japan and in the Black Sea that could accommodate product carriers this size. So in the first years, the only employment was virtually trading
Bakvagn_07 MR(rättversion).indd 93
between the Persian Gulf and Japan with naphtha. The naphtha trade requires the cleanest of cleanness in the cargo tanks to the benefit of the N-class tankers with coated tanks. This pioneering in A. P. Møller led to a massive investment in product carriers. During the 1980s A. P. Møller had product carriers in all segments: Hclass of 13,850 DWT, R-class of 30,000 DWT, G-class of 32,000 DWT, P-class of 48,000 DWT, J-class of 55,000 DWT and N-class of 70,000 DWT.
From the end of the 1990s, A. P. Møller even took delivery of a series of 14 product carriers, 105,000 DWT each. During the years after 1977, product carriers in all sizes were
Donsö-size Product carriers up to 16,000 DWT is usually called Donsösize. Donsö is a small island off Göteborg harbouring several tanker owners.
launched in the market, which has developed into a number of segments, in addition to cargo traded between oil traders.
It usually is called the Donsösize, when a product carrier is up to 16,000 DWT. The next size is the MR-types, short for Medium Range, which are product carriers around 45,000 DWT. That is the size used for distribution of clean products all over the world. The same goes for the LR1-class, which is short for Long Range 1 units, which is the Panamax type tanker with a capacity of up to 500,000 barrels. The large product carriers are called LR2 – Long Range 2 – with a capacity of 122,000 cbm.
*
2011-05-19 14.11
In 1972 …
… Kockums Mekaniska Verkstads AB in Malmö delivered the 255,350 DWT turbine tanker Sea Soldier to the shipping company Saléns Rederi in Stockholm. The tanker had a length of 340.5 metres, breadth of 51.9 metres and a maximum draft of 20.1 metres. In 1979 the Sea Soldier was sold to Neste in Finland and renamed Jaarli. Neste sold the vessel in 1987 and she was broken up at Chittagong Roads in 1993.
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Dräger – shipping
Your
partner.
Safety is a key issue in the shipping industry worldwide. Dräger offices and agents are to be found in more than 100 countries around the world, and our DrägerService network is present at the local level to provide you with a wide range of products and services at any time.
2324-2008
For more information, visit www.draeger.com
Bakvagn_07 MR(rättversion).indd 97
2011-05-19 15.36
98 Shipgaz No 3 2011
By Bent Mikkelsen bent@shipgaz.com
Old ship Oluf Mærsk
Photo: håkan sjöström
The Oluf Mærsk sold for recycling The LPG carrier Oluf Mærsk was delivered in 1984, she was built to serve the gas industry as well as the chemical industry. On March 11, 2011, the LPG carrier Suffolk arrived at Alang, India, for recycling, after 27 years of sailing on all seas. Suffolk was a product from the Danish shipbuilder Odense Steel Shipyard at Odense, which itself is about to disappear from active shipbuilding. Suffolk was hull no. 104 and was delivered in August 1984, as the sixth in a series of LPG/chemical carriers for the shipyards owner, the A. P. MøllerMaersk Group. The ship was built to serve the gas industry, as well as the chemical industry, carrying petrochemical liquids across the ocean from the US Gulf to Europe and from Far Eastern refineries to US ports.
A few weeks before delivery, the ship was named at the shipyard in Odense, where yours truly participated and witnessed the chairman of the board of directors in the shipyard interrupting the CEO’s speech during the dinner following the naming ceremony.
Bakvagn_07 MR(rättversion).indd 98
The CEO, Troels Dilling, was addressing the guests from the platform, talking about the ship. He said: “This is the sixth ship in this series and during the series we have improved productivity. Since the first delivery in 1981, we have cut 120,000 man hours of production time.” When he ended the sentence and was taking his breath for the next sentence, the chairman, shipowner A. Mærsk Mc-Kinney Møller, shouted from his seat at the table: “But he still charged us the same price for the ship!”, making all the guests laugh for a while.
» Since the first delivery in 1981, we have cut 120,000 man hours of production time« Troels Drilling, CEO, commenting on the ship.
After the delivery, Oluf Mærsk sailed out in a slow market with overcapacity in the chemical industry. The 15,000-cbm gas carrier continued under its original name until Novem-
ber 1992, when it changed to Sofie Mærsk, leaving the name Oluf Mærsk to a new container carrier. The following year, in 1993, it was sold to A. P. Møller’s UK subsidiary the Maersk Co Limited in London and they changed its name to Maersk Suffolk. In May 2001, all six sister ships were sold to single ship companies in the Zodiac Group in London, owned by the Israeli Ofer Brothers. Maersk Suffolk was taken over at Geelong in Australia on July 2, 2001, and continued sailing under the name Suffolk.
After the sale to Zodiac, all LPGcarriers continued sailing in the Scandigas pool, where A. P. Møller was commercial manager and administrator. Suffolk’s last voyage with cargo was from Nemrut Bay in Turkey via Suez to Ulsan, Korea. One of the six sisters is still sailing. It is the Marimar Gas, built in 1981 as Svendborg Mærsk, which is trading locally in Egyptian waters.
*
2011-05-19 14.11
World wide classification and related services www.veristar.com
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