DNV Bulk Carrier Update

Information from DNV to the bulk carrier industry No. 2 September 2007

Cargo gear
Also inside:
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MacGREGOR
TTS
Cargo Safety
Oshima Shipyard
Tsuji Heavy Industries
Fednav
Gearbulk

Contents

Editorial

Cargo gear,
hatches and
cranes

page 4
MacGREGOR/Nordstrms
selfunloader from 1956

Editorial

MacGREGOR,
selfunloading

MacGREGOR,
hatch covers

12

TTS

16

Cargo Safety

22

Oshima Shipyard

28

Tsuji Heavy Industries

32

Fednav

36

Gearbulk

40

Bulk market

Dear Readers
The equipment suppliers
are extremely important to
the bulk carrier industry. In this issue of Bulk Carrier Update we have visited quite a few. We have
also included an article about the worlds most
efficient bulk carrier yard, as well as the strongest
bulk carrier for its size in a global context. Finally,

page 12
TTS hatch covers

page 36
Gearbulk
Front cover: Brand new Tsuji cranes at
the factory in Sasebo, Japan.

All text and photographs: Magne A. Re,

except where otherwise stated.

The Oshima Shipyard is one of the worlds

most productive yards.

BULK CARRIER UPDATE 2 2007

we have visited a shipowner that uses the

term geared bulk carriers in the company
name without having any vessels that can
be called bulk carriers in the traditional
definition of the term.
DNV has been in shipping for close to
150 years, and we have never before had
the chance of visiting so many highly specialised manufacturing environments at the
same time. Quite frankly, we are very
impressed. The cargo gear industry is, of
course, highly specialised, as specialised
cargo requires specialised solutions in close
co-operation between owner, yard, equipment manufacturers and class.

A hatch cover is just a hatch cover, many

may claim. Yes, the cover will have to be
strong and the tightness is imperative to
the seaworthiness of vessel. But that is not
the whole story. The design and technical
solutions will vary according to use and
trade. For the future, more environmentally friendly hatch covers are being introduced electrically operated with no need
for hydraulic piping and fluids that can be
spilled or even freeze up under extreme
conditions.
We hope you will enjoy the industry
overview you will get in this issue of Bulk
Carrier Update. It will take you from Fin-

land, Sweden and Canada to Japan. There

are considerable investments in yards and
manufacturing equipment, in addition to
highly competent and skilled people.
We would like to thank MacGREGOR,
TTS, Oshima, Tsuji, Fednav and Gearbulk
for the assistance in making this issue of
Bulk Carrier Update an interesting edition.

Ulf Freudendahl
DNV Business Director, Bulk Carriers

BULK CARRIER UPDATE 2 2007

MacGREGOR I

From cables to belts and cement

Jan Karlsson, Selfunloading Systems Director, MacGREGOR Bulk, with drawings of a cement carrier.

Cement carriers are very special ships

where we can offer a unique and very welldocumented competence base on what is
proven technology, but not a technology
which can be easily utilised unless you
have the competence and experience,
says Jan Karlsson, Selfunloading Systems
Director of MacGREGOR Bulk.
Cement, he continues, is often
loaded by blow pumps that actually blow
the cement into the cargo holds. There
are also fluidised tank bottoms to ensure
air flow for the process. Cement behaves
as a fluid when mixed with air. After loading a vessel the ship will have to wait for
the cement to settle before leaving port to
avoid stability problems.
The average age of a cement ship is
actually some 25 years and the total fleet

BULK CARRIER UPDATE 2 2007

consists of some 350 to 400 vessels, both

converted bulkers and newbuildings. With
global construction of newbuildings on
shore running high, the demand for
cement is consequently high. The global
construction boom is not going to slow
much over the next years, so we see the
demand for cement carriers to be rather
stable at a steady increase also in the
future, says Karlsson.
The fleet is rather old and we are
expecting that a replacement boom will
come soon. We deliver all the necessary
equipment from the fluidised bottoms
for reclaiming cement in holds, the vertical and horizontal screw conveyors for
distributing cement to and from the
holds, the blow pumps for pneumatic
conveying from ship to silo, the bulk dis-

Enkping is a small Swedish town 60 kilometres west of

Stockholm where a company called Nordstrms started
delivering elevated cable transport systems for industrial
purposes back in the 1880s. The systems were designed
for long distance operations. This materials-handling
background made the step into shipping and the handling
of bulk materials natural. Nordstrms is a well-known
name of MacGREGOR Bulk (formerly BMH Marine), a
division within the MacGREGOR Group, specialising in dry
bulk handling solutions. This is now MacGREGOR Bulk,
specialising in various types of selfunloaders. In 1947 they
delivered the first totally enclosed selfloading/unloading
cement carrier with highly automated cargo handling
gear. Over the past 60 years, Nordstrms systems have
been installed into more than 90 cement carriers sized
between 500 and 40,000 dwt. In addition, nine floating
cement terminals have a Nordstrms system installed.

Melvin H Baker, a 17,200 dwt selfunloader with Nordstrms gravity

system, at delivery in 1956.

charge boom for mechanical discharge

from ship to shore as well as the electrical control system for automatic control
of the process and systems, continues
Karlsson.
Another product from MacGREGOR
Bulk in Enkping is the gravity type selfunloading system. It works as follows: Discharge is done through hydraulically operated gates, either basket gates or Moving
Hole feeders, fitted to the outlet hoppers
in the bottom of the cargo hold, onto the
longitudinal hold conveyors located on
the tank top level.
The hold conveyors incline in aft part
of the cargo holds and discharge the
material onto the cross conveyors. From
the cross conveyors the material is transferred to the C-conveyor located on the

Melvin H Baker unloading in Philadelphia, US, in 1994.

ships centre line, just forward of the

engine room bulkhead or in front of the
forward hold at the bow of the vessel. The
C-conveyor elevates the material to main
deck and discharges onto a slewable and
hoistable boom conveyor.
The boom conveyor is equipped with
one continuous belt with a telescopic end
for easy positioning and transferring of
the material to the receiving arrangement
ashore. The discharge capacity can be up
to 6,000 metric tonnes per hour. The
boom conveyor has a maximum reach of
some 76 metres.
For safety of the vessels and crew, MacGREGOR has also developed the Watertight Bulkhead Door designed to minimise
water leakage though the conveyor tunnels between the cargo holds in case of

BULK CARRIER UPDATE 2 2007

MacGREGOR I

Stones, a 28,400 dwt bulk carrier with Nordstrms selfunloading gravity system.

emergency. All doors are to be closed and

secured when the ship is at sea.
Jan Karlsson has a great amount of
technology to describe, including new offshore barge based terminals for vessel discharge to Cape size vessels, to the bulk
handling system for cement consisting of
the cement tanks, compressors for transport air, control systems, valves and dust
handling systems.
The story of M/S Melvin H Baker is
unique: On 12 January 1997, the Melvin
H Baker completed her 1,797th voyage, a
remarkable achievement for a 17,939 dwt
bulk carrier in international blue water
trade. The Baker, now approaching 50
years of age, looks as good as new, especially her engine room and selfunloading
equipment, says Skaarup Shipping.
The Melvin H Baker was built by the
German yard AG Weser and delivered to
her owners in 1957. Named after the

BULK CARRIER UPDATE 2 2007

founder of the National Gypsum Company, she was designed by Ole Skaarup
whose company, Ocean Wave Shipping
Corporation, now owns her. Incorporated
within her hull is a Nordstrms selfunloading system which provides significant efficiencies and cost savings by rapidly
unloading her cargo through a stern discharge shuttle conveyor.
Through more than 40 years service
and 1,797 voyages, she has carried in
excess of 28,620,893 million tonnes of
cargo from Nova Scotia to various US East
Coast ports. She has travelled a total distance of 2,869,236 nautical miles. The figures are now ten years old and she is still
in the same trade.

C-conveyor elevating system for Stones.

Typical layout of Nordstrms cement handling system.

BULK CARRIER UPDATE 2 2007

MacGREGOR II

A long history of engineering

innovation
The cold winter winds sweep through the streets of
bo (Turku) in Finland, and it feels much colder than the
minus 12C that the thermometer reads. We take a taxi
out to a pine-covered area called Kaarina where
MacGREGOR is located. Bulk carrier specialist Torbjrn
Dahl, Senior Naval Architect, Bulk Ships, Dry Cargo
Division, has worked on the topic of hatch covers for the
past 15 years.
The story of MacGREGOR does not start
in bo, but in England. During the
1920s, concerned over unnecessary losses
of North Sea colliers, the engineer Robert
MacGregor developed the first steel hatch
cover. The simple design consisted of five
articulated covers that stowed neatly at the
end of each hatch. Patented in 1929, this
ground-breaking concept improved ship

and cargo safety and changed the face of

cargo care forever. In 1937, to promote
and sell his steel hatch covers, Robert
MacGregor and his brother Joseph
formed MacGREGOR & Company in
Whitley Bay on the north-east coast of
England. (www.macgregor-group.com)
MacGREGOR delivers standard folding
hatch covers for geared mini bulkers,

Typical chain driven side rolling hatch covers.

BULK CARRIER UPDATE 2 2007

whereas for the Handysize and Handymax

they normally specify folding hatch covers.
Very wide hatches are increasingly specified to allow for loading of non-bulk cargoes such as steel coils and forest products. For the Panamax and Capesize
MacGREGOR normally delivers side
rolling hatches. The company also works
closely with IACS and IMO to develop new

Torbjrn Dahl, Senior Naval Architect, Bulk Ships, Dry Cargo Division, MacGREGOR.

A rack and pinion drive for side rolling hatch covers.

A chain drive arrangement.

BULK CARRIER UPDATE 2 2007

MacGREGOR II

MacGREGOR side rolling hatch covers.

industry standards. For the VLOCs (very

large ore carriers) they provide side
rolling hatch covers with one or two panels.
What I would really like to see, says
Dahl when discussing IMO and IACS standards, is even more coordinated and
common rules for bulk carriers and hatch
cover solutions. We gave some 100 comments to the Common Structural Rules
proposals. As we all know, the IACS common structural rules for bulk carriers were
not approved but here I would urge the
class societies to try to make some
improvements when it comes to clarify
better the interpretation of the rules. Topics to be addressed can be the height of
hatch covers. The list of topics is long,
says Dahl who welcomed a good discussion
with DNVs Ulf Freudendahl, director of
Bulk Carriers.

10

BULK CARRIER UPDATE 2 2007

We have a very good competence centre here in bo, continues Dahl. We use
the DNV rules for bulk carriers actively in
calculating hull stress and loads when we
design our hatch covers. How the vessels
behave at sea, including any sloshing, are
very important factors for us. As we are
hatch cover specialists, we are very
dependent on correct calculations from
class, as well as class experience on
fatigue.
Today we produce most of our hatches
in China, just a little outside of Shanghai.
Currently we are engaged in some 150
bulk carrier projects, says Dahl.
Dahl is also featured in MacGREGORs
company magazine under the headline:
Innovating to protect the environment.
This clearly focuses on the advantages of
replacing hydraulics with environmentally
friendly electrical drives. MacGREGOR

GLB electro-hydraulic deck crane.

GLE electric cranes.

Left: Two-panel folding hatch cover. Right: The patented/innovative self-locking Roll-up-Roll lifting mechanism for Autocleating.

now introduces a range of cargo systems

based on electrical drives instead of
hydraulics.
Environmentally friendly solutions for
the shipping industry have become more
and more important, says Dahl. Electric
drivers offer many advantages to shipowners and shipbuilders compared with
hydraulic versions. The main advantages
are that hydraulic oil leakages are eliminated, there is no need to fit hydraulic
pipework on board, electric drives are easy

to monitor and maintain and they offer

energy savings. According to the MacGREGOR article, the advantages for owners are many, including: No pollution or
damage to goods by hydraulic oil, no
hydraulic oil required, maintenance
friendly, operation place is not limited,
energy saving as no continuous running,
all equipment can be operated easily, no
problems with cold weather and easy to
monitor. To the shipbuilder the advantages include: Cable wiring is easier than

piping, no flushing work required, no

control stand installation is required, flexible building schedule can be expected, no
need for high pressure hydraulics skills
and finally no pump unit needed.

BULK CARRIER UPDATE 2 2007

11

TTS

First and last call

Handling systems for the maritime industry constitute
the product and service lines from TTS, based in Bergen,
Norway. The company resources are focused on design
and engineering in addition to assembly and testing of
cargo handling systems and for the bulk carrier
industry this means mostly cranes and hatch covers.

First and last call is a quote from the

company 2006 annual report:
Another way of expressing our vision
is that TTS wants to be the supplier which
receives The first and last call: This
means that TTS Marine aims to be the
company that the customers call first
when they are considering new solutions
and new projects. TTS shall possess the
expertise and capacity to advise customers
during this phase. The last call we want
from the shipyards at the end of their
decision process, to get the chance to
meet the lowest price. This means that
TTS must have a globally competitive cost
structure in order to compete with the
lowest bidder.
This is a bold statement from the 1.6
billion NOK turnover company, boasting
earnings just short of 100 million NOK for
2006.
The TTS operations are divided into
the divisions Marine Cranes, Dry Cargo
Handling, Port and Material Handling,
Deck Machinery and Drilling Equipment.
TTS has 1,100 employees and the headquarters are in Bergen, Norway. We, however, visited TTS in Gothenburg, Sweden,
talking to Gran Johansson, Head of Port
and Material Handling division and Sales
Director Nils O. Ericsson of TTS Ships
Equipment AB.
We are also very pleased with the
developments of our company as a consequence of the high activity level in general
terms for the maritime industry, but also
from the efforts of the TTS team. Our
order volume right now includes a total of

12

BULK CARRIER UPDATE 2 2007

TTS is a global provider of hatch covers.

Nils O Ericsson (left), Sales Director, and Gran K Johansson, Head of Port and Materials Division, TTS in Gothenburg.

TTS side rolling hatch covers for OBO vessels.

BULK CARRIER UPDATE 2 2007

13

TTS

equipment for about 600 vessels and of

those 250 are bulk carriers. 150 are
Handy, 50 are Cape and 75 Panmax. For
the bulk carriers our deliveries comprise
side rolling hatch covers for the Cape and
Panamax vessels, folding for the Handy
size vessels, says Johansson.
The bulk market has surpassed our
expectations and we now manufacture the
hatch covers mostly in China, where we
have more than 50 employees. The
hydraulics and electrical equipments are
manufactured in Germany. We have a
market share of some 65 per cent in
China which we are very proud of,
through our partnership with CSCC, says
Johansson.
The product portfolio for bulk carriers
includes weatherdeck hatch covers, tweendeck hatch covers, side loading systems,
external doors, cargo cranes, gantry
cranes, service and provision cranes, rescue boat davits and winches. For the complete range of TTS services, please visit
www.tts-marine.com.

TTS equipment meets the needs for heavy

duty performance.

TTS has solutions for most ship types, including folding hatch covers.

14

BULK CARRIER UPDATE 2 2007

TTS has solutions for shipowners handling requirements in the diverse dry cargo ship sector.

BULK CARRIER UPDATE 2 2007

15

Fitness for Cargo Programme

Cargo Safety
The overall objective of the Classification Societies is to
ensure the safe operation of the ship in all sea and
weather conditions. As long as the seaworthiness of the
ship is ensured, limited attention has been given to the
cargo by class. However, DNV has introduced an
additional service, the Fitness for Cargo Programme,
an inspection and follow-up programme focusing on
cargo safety.

Typical cargoes sensitive to water; steel coils and paper.

Hatch covers on bulk carriers have two

basic functions: In open position hatch
covers provide access to the holds for
loading and discharge of cargo. In closed
position hatch covers seal the hatchway in
a weather-tight condition when at sea,
meaning that in any condition, there
should be no leakage into the cargo hold.
This is in compliance with the Load Line
Convention.
Approximately a third of all P&I claims
are cargo-related. Numerous of these
cases are related to ingress of seawater via
the hatch covers of dry cargo vessels.
Ingress of a small amount of seawater into
the cargo hold does not usually represent
any risk to the safety of the ship, but even
small amounts of water may do extensive
damage to cargoes sensitive to seawater,
e.g. steel and paper cargoes. According to
P&I clubs, reports of leaking hatch covers
are the most frequent cause for selecting a
vessel for an unscheduled condition survey.
For endorsement of Load Line Certificate and Classification Certificate covering

16

BULK CARRIER UPDATE 2 2007

vessels hull, hatch covers on bulk carriers

are subject to annual inspection by the
Classification Societies surveyors. The
scope of the annual inspection is covering
the structural parts of the coamings and
the hatch covers, in addition to examination of closing, sealing and securing
devices.
Extended requirements for examination of hatch covers, including coamings,
are given in the Guidelines on the
Enhanced Programme of Inspection during Surveys (ref. IMO Res. A744(18) as
amended, applicable from 1 January
2007). The Resolution states that at least
the hatch cover sets wholly or partly within the forward 25 per cent of the ships
length, and at least one additional set,
such that all sets on the ship are assessed
at least once in every five-year period,
shall be surveyed open, closed, and in
operation to the full extent in each direction at each annual survey, including:
n stowage and securing in open position;
n proper fit and efficiency of sealing in
closed condition, and;

A DNV surveyor performing ultrasonic testing.

operational testing of hydraulic and

power components, wires, chains and
link drives.

In addition to surveys performed by the

Classification Societies surveyors, SOLAS
Ch. XII states that all bulk carriers shall
comply with the maintenance requirements provided in the Standards for
owner inspection and maintenance of
bulk carrier hatch covers (ref SOLAS XII,
Regulation 7 amended by MSC Res.
170(79) on December 2004, replacing the
1997 version, entering into force on 1 July
2006). The hatch cover maintenance plan
shall also form a part of the ships safety
management system as referred to in the
ISM Code.
In order to ensure that the cargo carried is safe from the ingress of water
through the hatch covers, tightness testing
has to be performed. Tightness testing is
performed by class at renewal surveys, and
the three most common tightness tests are
water hose testing, ultrasonic testing and
chalk testing. However, chalk testing is not

considered to be a leak detection test, as it

will only give an indication of poor compression and potential leaks. If hatches
are found to be leaking during the test,
necessary repairs shall be made, and the
hatches shall be tested again.
The latest and most accurate way of
testing hatch covers is by ultrasonic testing. Ultrasonic testing is also an easy test
to perform, using a transmitter box and a
detector. The transmitter box, emitting
ultrasound, is placed inside the cargo
hold and the inspector can register leakages of ultrasound by leading a portable
detector alongside the hatch cover edges
and in way of the connection of the panels. Another advantage of the ultrasonic
method is that the tightness testing can
also be performed when the ship is
loaded, as long as it is possible to get into
the cargo hold placing the transmitter
box.
The Fitness for Cargo Programme is
designed for Bulk Carriers and General
Cargo Carriers. In the programme, the
ship is assessed relative to a set of mini-

mum requirements for cargo fitness and

safety by review of documents, visual
inspection, function testing, and tightness
testing. The tightness testing performed
in the Fitness for Cargo Programme is
done by the ultrasonic method, and if the
vessel is free of non-compliances, a Fitness for Cargo Statement will be issued.
The Condition Assessment & Emergency
Response department is responsible for
the Fitness for Cargo Programme. For
more information, MTPNO868 may be
contacted directly.
In order to maintain weather tightness
of hatch covers over the life of the ship,
regular maintenance and repair of gaskets, seals, retaining channels, resting
pads, etc. should be expected due to wear
and tear.
When leakages occur, the rubber gaskets of the hatch covers are usually hardened, compressed, chafed, or loose. The
gasket manufacturers rule of thumb is to
replace the packing when a permanent
impression reaches half the design value.
The design value is usually in the range of

BULK CARRIER UPDATE 2 2007

17

Fitness for Cargo Programme

Folding hatch covers.

Side rolling hatch covers.

Bulk carrier in heavy weather.

1015 mm. When replacing rubber gaskets it is highly recommended to use original gaskets and to seek the hatch cover
manufacturers advice. Cheap rubber gaskets will rapidly become permanently compressed, and the loss of resilience may
cause lack of tightness after a few months
of service. To ensure a well functioning
and effective rubber gasket, the maintenance of the retaining channel and the
compression bar is of importance. The
gasket retaining channels are among the
weakest parts of the hatch cover structure,
and maintenance may be cumbersome
and often neglected. If highly corroded,
the retaining channels are often not able
to provide sufficient support of the gaskets.
Insufficient maintenance of the steel-tosteel contact between cover and coaming
may result in over-compression of rubber

18

BULK CARRIER UPDATE 2 2007

gaskets impairing the weather tightness of

the hatch cover. If this steel-to-steel contact is not achieved, good and original gaskets may be rapidly damaged by over-compression. To achieve a correct design
pressure of the gaskets, renewal of pads
may be required. In addition, wear and
tear of resting pads may restrict the free
sliding of the hatch cover related to the
ship. Subsequently the imposed stresses
may result in hatch cover cracking as
shown on the picture.
Securing devices, e.g. quick-acting
cleats, heavy duty automatic hook cleats,
auto cleats etc., are often damaged and not
functional, or simply not engaged by the
crew. The most common problems are seriously weakening of the cleat by corrosion,
or hardened and loss of elasticity of the
rubber disc. All securing devices should
always be well maintained and engaged.

Broken rubber gasket/rubber seal.

Damaged resting pad, resulting in cracking

of hatch cover.

Typical quick-acting cleat.

A DNV surveyor performing ultrasonic testing.

The responsibility for maintaining the

ships hatch covers and locking devices
lies with the owners and operators, not
with the Classification Societies. Increased
investment and attention to hatch cover
maintenance and repairs may save the
shipowners money from cargo claims.
As an easy guide to inspection and maintenance of hatch covers the following can
be considered best practice:

Keep hatch coaming tops clean, and the

drainage channels free for any obstructions

Ensure the oil tank of the hydraulic system is kept filled to the operating level
and with the correct oil

Keep cleats and wedges in serviceable

conditions and correctly adjusted

Clean up oil spills

n
n

Keep hauling wires and chains adjusted

correctly

Engage tween deck hatch cover cleats

when the panels are closed

n
n

Attach locking pins and chains to open

doors and hatches

Give notice that maintenance is being

performed so that no one tries to operate the hatch

Remember that continuing and regular

maintenance of hatches is more effective and less expensive than sporadic
inspection and major repair.

Rectify any steel-to-steel contact before

renewal of rubber gaskets
n

Replace missing or damaged rubber

gaskets immediately (minimum
length of replaced gasket should be
one metre)

Keep wheels, cleats, hinge pins, haul

wires and chain tension equipment well
greased

Test hydraulic oil regularly for contamination and deterioration

Keep retaining channels and compression bars in good condition

Keep hydraulic systems oil-tight

For more information contact

Harald.Olav.Bjordalsbakke@dnv.com

BULK CARRIER UPDATE 2 2007

19

Shipbuilding in China

The skill of shipyard workers must never be underestimated. The sparks are flying in a Chinese shipyard.

20

BULK CARRIER UPDATE 2 2007

BULK CARRIER UPDATE 2 2007

21

Oshima

Innovation in bulk
carrier design and
production
Since the beginning in 1973, Oshima Shipyard, located in
the very southwest corner of Japan, has produced close
to 500 bulk carriers. In 1989 the yard decided to
concentrate on bulk carriers only. This has paid off in
terms of efficient production and innovation.

Four superstructures lined up for assembly.

22

BULK CARRIER UPDATE 2 2007

BULK CARRIER UPDATE 2 2007

23

Oshima

Tatsuaki Hori, Senior Executive Managing Director.

The yard produces some 30 vessels per

year with a total workforce of only 1,000
permanent employees and some 700 subcontractors making Oshima the most
efficient yard in Japan in terms of tonnage
produced annually per employee. The
order book is comprised of 150 vessels,
and contracts are now negotiated for 2012
and beyond. DNV has a long-standing
excellent relation to Oshima, and 77 of
the delivered vessels are to DNV class with
21 on order by the end of September
2007. We are very well received and taken
care of by Mr Tatsuaki Hori, Senior Executive Managing Director, Dr Shinji Nonaka,
Director, Vice Yard General Manager,
General Manager of Design Department,
as well as Mr Shigehiro Mori, Acting General Manager of Design Department.
Innovation in bulk carrier design is a
key element to Oshima operations. The
number of repeat customers among international shipowners and operators is
proof that the specialisation of the yard
on bulk is most successful. As we arrived
by passenger high-speed ferry to the yard
from the nearby town of Sasebo in pour-

24

BULK CARRIER UPDATE 2 2007

ing rain, we could see the close-to-delivery

bulk carriers with an innovative bow
design. Oshima has no less than three
major bulk carrier design elements that
were described to improve performance,
reduce fuel consumption and consequently have an overall positive environmental
impact. The three design elements Seaworthy Bow, High-Lift Rudder, and Flipper Fins are described in the following.

Seaworthy Bow (Saga Adventure) and Conventional Bow (Dubai Crown).

Yo Hirokawa, Principal Surveyor and DNV District Manager,

West Japan.

Seaworthy Bow
The new bow design gives the vessel on
the average five per cent less fuel consumption in North Atlantic trade. The
speed loss when heading into the waves is
reduced. I believe this bow will soon be
the standard on all Oshima built vessels,
says Hori.

BULK CARRIER UPDATE 2 2007

25

Oshima

High-Lift Rudder
The new rudder design (see illustration
below) improves bulk carrier manoeuvrability compared to a conventional rudder.
There is higher lift coefficient and higher
drag coefficient when steering. The maximum helm angle can be taken up to 45
degrees.

Oshima High-Lift Rudder.

Flipper Fins
The bilge fin (see illustrations below)
deflects bilge vortex to get wake gain and
accelerate the flow near the top of propeller to reduce propeller-hull interaction.

Aft end fin.

Bilge fin.

26

BULK CARRIER UPDATE 2 2007

The aft-end fin is added for rectifying the

flow around the centre of propeller to
reduce resistance. The effect of the flipper
fins is some four per cent less fuel consumed.

At the DNV Oshima site office: Katsunori Takahashi (left), Senior Surveyor,
and Toru Nakashima, Surveyor.

When discussing the overall future trends

in bulk carrier demand, Hori says, I think
handymaxes will split into the segments
between length overall less than 190
metres and those between 190 and 200
metres. The overall ship economy and lifecycle-costs together with the upsizing of
ships would be key factors of optimum
choice to maintain a competitive edge.
One of our best solutions for that trend is
OS Max 60 with 200m L over all. Its dwt
exceeds 60,000 mt at shallow draft of
12.8m complying with Common Structural
Rule. Its fuel oil consumption is lower
than that of current 55,000 dwt type
design.
Currently new building business are
talked for delivery four or five years ahead
and shipowners are beginning to show an
interest in new ship designs with the completion of the new Panama Canal some
eight years from now. In addition, when it
comes to coal carriers, I am confident that
Oshima is the most experienced shipyard
in this field through the construction of
many carriers ranging from 80,000 dwt to
105,000 dwt with shallow draft. In the case
of bulk carriers, because of a gap between
the dwt with maximum canal dimensions
and the freight lots to pass the Panama
Canal, the ship type is not likely to be integrated into one type just like the current
Panamax bulk carrier. I think we will be
able to come up with solutions considering all factors, including port constraints
such as ship length, width, draft, cargo
handling shore equipment and operation
for non-Panama Canal routes, says Hori.

Oshima Shipyard Layout.

We have prepared the line-up not only

for coal carriers but also Post Panamax
standard bulk carriers (so called Baby
Cape BC) designed with Ore Alternate
hold Loading modified from above mentioned coal carriers and a new design of
120,000 dwt type OS Max-120. We will
make flexible response considering market needs.
Increasing demand for half products
trade such as the forest products besides
bulk cargoes is our primary concern. This
will lead to increased demand for box
type hold bulk carriers with widened
hatches and gantry or jib cranes as well as
bulk carriers with TST and Hoppers. Oshima has come out ahead in the world in
this field in terms of performance, experience and technology, and we have developed the design for the worlds largest
71k-dwt open-hatch bulk carrier, says
Hori.
We ask him about challenges and
trends in cargo handling gear and equipment. Our most concern is paid to manufacturers to keep stable and sufficient supply to meet with recent rapidly increased
demand of bulk carriers. From this standpoint, I think we need to strengthen our
ties with manufacturers, he says.
Oshima is now enhancing to operate
factories at higher speed than ever, says
Hori, noting that Oshima is making a
49,000 square metres landfill at the centre
of the shipyard using soil from an adjacent mountain. The landfill will become a
new site for block storage and a new
grand assembly and the third mooring

berth will be constructed here. A 1200t

Goliath crane will be installed by next
June, in addition to the existing two sets
of 300t cranes, to enlarge the extent of
grand assemble blocks and to improve
dock performance. We will strive to focus
on our challenges, to prepare for shipbuilding demand increase and attain the
ultimate possibility of shipbuilding capacity in Oshima, says Hori.

BULK CARRIER UPDATE 2 2007

27

Tsuji

The Road is Infinite

Tsuji Heavy Industries has become the worlds largest
manufacturer of hatch covers and has an impressive list
of products for the maritime industry. The company also
specialises in design and manufacture of marine cargo
handling equipment. Tsuji manufactures its own designs,
putting 50 years of experience in all products.

Welding at Tsuji.

Gantry crane manufacturing.

The company is owned and operated by

the Tsuji family now second and third
generation. Masahiro Tsuji, Chairman of
the Group, writes in a foreword: A while
ago I came across an old calligraphy, written by my father in his typical powerful
style. It read in Chinese characters: The
Road is Infinite. I often wonder what my
father was thinking when he jotted down
those words, which has become our credo
since. Today Tsuji has 800 employees
located mostly in Sasebo, Japan, and
another 2,000 in Shanghai, where complete bulk carriers are being built.
We have three news items at Tsuji,
says Fulco Vrooland, Vice President and
member of the executive board. That is
about electric driven hatch covers, electric
driven deck crane and shipbuilding in
Zhangjiagang City some 150 kilometres up
the Yangtze River from Shanghai.
Vrooland, a Dutch national, is joined
by Izumi Ohsugi, managing director,

28

BULK CARRIER UPDATE 2 2007

hatch cover/ro-ro division, and Kosaku

Kawasaki, manager business department.
The market is for the time being very
good and we have full order books, says
Vrooland. We have concentrated on bulk
carriers as well as cranes and hatch covers
for this segment. We are number one
globally in terms of market share on deck
cranes, number two on hatch covers. I am
quite proud to say that whatever we put
on paper we build here, and the comments from our customers are very positive about this. We provide simple and
easy-to-use equipment and have already
introduced products to the market that
others may still be working on, says
Vrooland.
Electric driven hatch covers
Tsuji has developed a fully electric-driven
side-rolling type hatch cover with a patent
pending. A full-scale model has been built
and was extensively tested at Sasebo dur-

Izumi Ohsugi, Managing Director, Hatch Cover/Ro-Ro Division and Fulco Vrooland, Vice President.

ing the spring of 2006. This new type of

hatch covers is to be used on Panamax
and Capesize bulk carriers, offering some
very distinct advantages to shipowners:
Less maintenance compared to hydraulicdriven hatch covers with less energy consumption and no risk of pollution due to
leakage from hydraulic systems, ensuring
that it is environmentally friendly. For the
yards the advantages can be summarised
as follows: No heavy and long piping and
flushing works for hydraulic systems and
less outfitting due to simple design without hydraulic jacks or cylinders.
The main features of the system
include jacking up/down and opening/
closing done by only one electric motor
per hold, running wheel is attached to a
turntable lever, hinged on the hatch cover
side. By pushing the hinged lever with a
cam fixed on the hatch cover side as well,
the hatch cover is lifted up. The cam is
operated by a pulling arm connected to

the towing chain of the hatch cover.

Selecting adequate arm length, a heavy
hatch cover can be lifted up by the relatively small driving winch. The locator,
which keeps the hatch cover in proper
position during the voyage, also prevents
the hatch cover from running before completion of jacking-up. Once jacking up is
completed, the hatch cover is operated
through the pulling force of the towing
chain.
Electric driven deck crane CRANE-e
Tsuji has introduced the electric driven
deck, CRANE-e. The company developed
the new inverter-controlled electric driven
standard 36-ton lifting capacity deck crane
based on long experience with electric
gantry cranes and four-rope heavy duty
cranes. The CRANE-e reduces energy consumption by about 40 per cent. Furthermore, by eliminating hydraulics, the system is simplified and the new crane is

BULK CARRIER UPDATE 2 2007

29

Tsuji

Ram press.

virtually maintenance-free, offering 98 per

cent less maintenance costs.
The need to address environmental
issues in the shipbuilding and shipping
industry has become obvious, and thus
lower emissions of harmful CO2, NOx and
SOx are welcome improvements to environmentally conscious shipowners and
charterers. Acceleration and deceleration
is very smooth and precise. Other advantages include less sound pollution and

vibration. The electric system is also

preferable when working in very cold or
very hot environments. Compared to traditional electro-hydraulic cranes, initial
purchasing costs are higher, but reduced
long-time running costs make this technically superior electric crane a good investment. Based on 1,500 running hours per
year, total running cost reduction of 20
per cent can be achieved over a ten-year
period.
Shipbuilding
In 2002 Tsuji opened a wholly-owned
large-scale facility in China, Tsuji Heavy
Industries (Jiangsu) Co. Ltd. The Zhangjiagang factory covers 330,000 square
metres of land located on the Yangtze
River close to Shanghai. The yard employs
2,000 Chinese workers with a Japanese
management team.
In addition to having the worlds
largest single-line hatch cover output, the
company started producing megablock
hull sections such as engine rooms, superstructures and funnel casing as a subcontractor for major Japanese shipbuilders.

30

BULK CARRIER UPDATE 2 2007

With the average capacity having reached

up to 8,000 tons of steel monthly, the
company was looking for further expansion opportunities. The chance came in
2006 when the Chinese government granted Tsuji the permission to build commercial vessels. There are currently 30 bulk
carriers of 30,000 dwt on order for delivery 20082010. The ships will be built on
land without a dry dock or slipway, using
the Air Pad System (APS) with skid rail,
now widely used in Korean and Chinese
shipyards. Tsuji will continue to expand
the yard to meet the increasing demand.
Tsuji chairman Masahiro Tsuji and the
company management have proven that
the road is indeed infinite.
We have worked hard and passionately
to achieve our goals, says Tsuji, and will
continue to do so. Our vision is to be an
ever-dynamic enterprise filled with bright
and creative minds, to meet the challenges and limitless possibilities of this
century. Over the years, being innovative
has become our tradition, and it is
through these roots that we stand strong
and ready for a bold future.

30 ton bulk carrier cranes after shoptest.

Electric driven hatch cover.

CRANE-e.

Lifting device for electric driven hatch cover.

Electro-hydraulic crane system.

New CRANE-e system.

BULK CARRIER UPDATE 2 2007

31

Fednav

The worlds strongest:

Umiak I
Umiak I is a 31,992 tonne icebreaking bulk carrier, the
most powerful ever of its kind. The vessel moves 360,000
tonnes of nickel concentrates a year in 12 voyages from
CVRD/Inco Ltd.s Voiseys Bay mine in the northern
Labrador to its smelters in Sudbury, Ontario and
Thompson, Manitoba, Canada.
The DNV-classed vessel has ICE-15 class
notation, one of the highest ICE notations
any vessel can have. Basically, this means
the hull is reinforced to navigate un-assisted through ice that is 1.5 metres thick.
This very powerful and unique bulk carrier only uses 35 per cent of the available
engine power on the open, ice-free sea.
Umiak I is a very specialised vessel carrying an expensive cargo. Just the four
cargoes we move during the winter season
have a value of more than one billion dollars just look at the London Exchange
for global nickel prices, says Thomas H.
Paterson, vice president of the owned fleet
and business development at Fednav. He
is joined by John Weale, vice president,
risk management and John T. Stubbs,
manager, technical services, projects and
business development.
Nickel carrier Umiak I beats the big
freeze is the headline in a Fednav press
release:
Built to serve a long-term contract covering the transportation of nickel concentrates from northern Labrador to St
Lawrence river, the vessel is testament to
Fednav groups long standing expertise on
providing solutions to challenging bulk
cargo logistics. The concentrates shipped
by Umiak I derive from CVRD/Incos new
Canadian $ 3 billion Voiseys Bay Nickel
Company mining, processing and production facilities. Cargoes are shipped out of
Edwards Cove for the 1,100 nautical mile
passage to Quebec City from where transshipment is made to rail for deliveries to
smelters in Ontario and Manitoba.
Managed and operated by Canship
Ugland of St Johns, the ship is designed
not only to carry bulk concentrates, but
also re-supply cargoes for the production
operations, including fuel oil. Although
Voiseys Bay is located just south of the
60th N parallel, outside the Arctic Circle,
winter ice conditions are more demanding than those in many high Arctic areas.

32

BULK CARRIER UPDATE 2 2007

On her regular run down the Labrador

coast, Umiak I contends with some of the
worlds most rugged ice conditions,
including icebergs, from November to July
each year.
The 90-kilometre channel to the
Edwards Cove loading terminal passes
through a maze of islands, and has a fivemonth open season. In addition to the
subsequent ice build-up seawards, ice originating further north is driven southward
by the Labrador current, creating particular challenges in navigating though hardpacked shear ice.

Built in accordance with Canadian Flag requirements, the Umiak I has completed her first winter of operation in ice successfully.

When the vessel encounters ice conditions and eventually stops in the thick ice,
says Paterson, it backs up before ramming the ice. The only way to get through
is by using brute force. In order to do this
the vessel has provided a milestone reference, an electronically controlled MAN
7S70ME-C engine producing 21,770 kW
on a driving controllable pitch propeller,
he says.
Fednav adopted the vessel to the
demanding and mixed operating profile.
This calls for a broad range of operating
modes, including ice ramming, slow

steaming and open-water service entailing

both high and low load scenarios. The
electronically controlled engine offers the
requisite degree of flexibility with good
operating economy, and reduced emissions in an ecologically sensitive area.
Capability for effective ice ramming
goes hand-in-hand with the ICE-15 classification. The ramming procedure entails
sailing at a specified speed through the ice
until the vessel is brought to a stop by the
resistance of the ice. The vessel is then put
astern so as to come free of the packed
ice, and is then sailed full ahead, to break

BULK CARRIER UPDATE 2 2007

33

Fednav

Thomas H. Paterson, Vice President of the Owned Fleet and Business Development, receives a drawing from the DNV Ships Calendar at Umiak I
from Martin Crawford-Brunt, DNV District Manager.

through the ice until brought up again by

the force of resistance. The procedure is
used for thick ice and ice ridges, and
imposes exceptional demands on the
main engine. In order to enable repeated
ahead and astern working within a short
time-cycle, Umiak I has been equipped
with a controllable pitch propeller, obviating the need for the time-consuming task
of reversing the engine. The screw is
enclosed in a nozzle to protect the propeller against blocks of ice and to confer
extra trust.

34

BULK CARRIER UPDATE 2 2007

While the open-water speed in a laden

condition is some 13.5 knots, the bulk carrier is said to be capable of making three
knots in level first-year ice of 1.5 metre
thickness, the company states in a press
release. The vessel has an ice breaking
bow, a wash system to help reduce friction
in ice, a V-shaped stern and an ice knife to
protect the rudder. The vessel was constructed at Universal Shipbuildings
Maizuru yard, Japan.
Enfotec IceNav
Navigation in the waters north of the
60th parallel is a challenge with everchanging ice conditions. Umiak I uses the
Enfotec IceNav system Fednav has provided the developmental platform. IceNav is a shipboard navigational software
package.

The main constituents of the system

as demonstrated to us by Robert Gorman,
Manager Environmental Services, Enfotec
are the IceNav Navigation Module and
the marine Radar Module, operating on a
single PC with displays on two screens.
The two modules are completely integrated with route plans created on one module and displayed on the other. In addition, the more recently developed
component of the Marine Radar Module
is the IceNav Hazard Detection Module,
designed for ships that routinely navigate
in high concentrations of first-year ice
where old ice and embedded icebergs and
bergy bits are a hazard. Fednavs new
addition has been designed with the flexibility to offer competitive use in general
international bulk trade, notwithstanding
special ice-going capabilities.

Robert Gorman, Manager Environmental Services, Enfotec.

BULK CARRIER UPDATE 2 2007

35

Gearbulk

Versatile vessels and travelling

gantry cranes
Gearbulk provides transportation and logistics services
for various industrial sectors and is a leading carrier of
unitised forest products and non-ferrous metals. It
operates the worlds largest fleet of open hatch gantry
craned (OHGC) vessels, controlling approximately 35 per
cent of the worlds OHGC vessel capacity. The fleet
consists of some 70 vessels with a number of
newbuildings on order.
With two travelling gantry cranes serving
perfectly box-shaped holds, these vessels
are specifically designed and equipped to
transport unitised cargoes. Gearbulk conducts operations worldwide through a network of offices in 16 countries. The fleet is
primarily operated under contracts of
affreightment covering periods of between
one and ten years. Gearbulk is also
involved in transportation of conventional
bulk cargoes, using both own and chartered handymax size vessels. In addition,
the company is operating a number of terminals worldwide.
We are at the top modern operations
headquarters of Gearbulk in Weybridge, a

Aluminium T bars.

36

BULK CARRIER UPDATE 2 2007

half hours drive from Heathrow airport.

Last year we did 18 million tons of
cargo, says Mats Folkesson, senior vice
president of operations. He has worked
for Gearbulk in Chile, China, South East
Asia and Vancouver, Canada before
recently moving to London to head up
operations.
The key feature of our fleet is that the
vessels have box-shaped holds, he says.
This allows full access to all parts of the
hold with no deck overhang. Smooth surfaces ensure that the risk of cargo damage
is reduced, and double hulls provide the
safest way of transportation in addition to
the minimised risk to the environment.

Weaver Arrow.

BULK CARRIER UPDATE 2 2007

37

Gearbulk

From left: Nicholas Kverndal, Vice President Operations, Mats Folkesson, Senior Vice President of Operations, and Nigel Bradshaw, Vice President
Operations.

The travelling gantry cranes, with the

crane driver located on top of the gantry
cranes, allow an unrestricted view of the
box-shaped hold below. This allows loading and unloading of the sensitive commodities in a safe and efficient manner.
Finally, the vessels are equipped with
dehumidification plants, allowing temperature control and humidity levels in the
cargo holds. This reduces the risk of cargo
damage, says Folkesson.
The main commodities for us are
forest products such as pulp, paper,
newsprint and paper products, continues Folkesson. But we are also big on
lumber, plywood and specialised wood
products, aluminium, steel cargoes, granite and traditional bulk cargoes. Our
name indicates that we are in the bulk
business, but most of our fleet are actual-

38

BULK CARRIER UPDATE 2 2007

ly not defined as bulk carriers, says

Folkesson who is joined by Nicholas
Kverndal, vice president operations,
Nigel Bradshaw, vice president operations, and captain Egil Oldeide, vice
president of projects & business development.
Gearbulk is owned 60 per cent by the
Norwegian Kristian Gerhard Jebsen family
and 40 per cent by Mitsui O.S.K. Lines.
The Kristian Gerhard Jebsen family has a
long history in shipowning and maritime
operations, both in the dry and liquid
shipping business. The family owns Kristian Gerhard Jebsen Skipsrederi A/S
(KGJS), the technical manager and crewing agent for Gearbulk vessels. Mitsui
O.S.K. Lines is one of the worlds largest
shipping groups with around 800 vessels
and 8,500 employees.

Vacuum lift.

Toucan Arrow.

BULK CARRIER UPDATE 2 2007

39

Hammer Maritime Strategies prepared for DNV

The sky is no longer the limit

We welcome your thoughts!

DNV Bulk Carrier Update
is a newsletter published by
Det Norske Veritas,
DNV Maritime.
It is distributed to DNV
customers and stations
worldwide.

www.dnv.com/maritime

Please direct any enquiries to

your nearest DNV station, or
Bulk Carrier Update e-mail:
bulkcarrier@dnv.com
Editorial committee:
Ulf Freudendahl
Magne A. Re
Lisbeth Aamodt

Det Norske Veritas

NO-1322 Hvik
Norway
Tel: +47 67 57 99 00
Fax: +47 67 57 99 11
Updated list of all regional
offices at DNVs web site:
www.dnv.com

up 6.4 per cent from 359.2 million dwt one

year before. At the same time, the bulk carrier order book increased about 91 per cent
from 74.4 million dwt to 141.9 million dwt.
This means that the order book share compared to the existing fleet rose from about
21 per cent to 37 per cent over the past twelve
months.
A closer look at size ranges shows very
large differences with regard to order book
shares.
Thus, the order book for 1050,000 dwt
corresponded to just about 10 per cent compared to the existing fleet (with three per
cent for 1025,000 dwt, 17 per cent for
2540,000 dwt, and four per cent for
4050,000 dwt).
Whereas very few orders are placed for the
smallest size range of bulk carriers, it is amazing to observe the revival of multi-purpose
vessels. At the beginning of this year, only two
per cent were below five years old. Now, the
order book stands at 24 per cent compared to
the existing fleet. This vessel type is very flexible in combining voyages with minor bulk
cargo lots with various types of project cargo
and top end containers in opposite directions.
Going up in sizes, it appears that the order
book for supramaxes of 5060,000 dwt was as
high as 82 per cent, whereas the share for
panamax/kamsarmax of 60100,000 dwt was
relatively modest at 26 per cent. Among larger vessels, small Capesize of 100150,000 dwt
had an order book share of 21 per cent,
whereas large Capesize of 150200,000 dwt
saw a strongly increased share of 59 per cent,
and for Very Large Bulk Carriers over 200,000
dwt, the order book had jumped to as much
as 109 per cent, primarily signalling a very
strong belief in the Chinese steel industrys
need for raw materials. In this context, it is of
significant importance that India will gradually need more of its iron ore for domestic steel
production.
Jarle Hammer
4 September 2007

Print: GAN Grafisk

as the rest of the world experienced a modest

increase of 1.9 per cent.
Looking at rate developments, it appears
that average Capesize spot rates dropped
strongly from a peak of almost USD 115,000
per day in mid-May to just USD 72,000 in
mid-June. At end-August, they had reached
USD 127,000, with Imarex forward quotations
as high as USD 103,300 for calendar 2008 and
USD 74,500 for calendar 2009. At the end of
August, average Panamax spot rates stood at
USD 61,500, with calendar 2008 at USD
54,400 and calendar 2009 at USD 39,200.
Supramax spot rates averaged USD 52,200,
with 2008 quotations at USD 45,000 and 2009
quotations at USD 32,500. Handymax spot
rates at end-August averaged USD 36,200,
with 2008 quotations at USD 29,800 and 2009
quotations at USD 21,700 per day.
With such high rates, often two to three
times higher than break-even rates for vessels
acquired in the present heated market, it
would not be surprising to see cargo owners
become shipowners to a larger extent, at least
temporarily.
Ordering of bulk carrier newbuildings
reached almost 74 million dwt over the first
eight months of this year, against less than 16
million dwt in the corresponding period last
year. For comparison, tanker newbuilding
orders dropped from about 48 million dwt to
about 20 million dwt. Bulk carrier newbuilding prices have increased much more than
tanker newbuilding prices. So far this year
bulk carrier demolition sales total less than
0.2 million dwt, with no sales reported over
the past four months.
The bulk carrier fleet at the beginning of
September 2007 stood at 382.3 million dwt,

Bulk carrier fleet and orders by size

September 2007

Design: Coor Graphic Communications 0708-043

At least, this was the heading of the dry bulk

market section in Fearnleys latest monthly
market report. In the short term, this seems
to be the case. We have now experienced continuous upward surprises in the dry bulk market, with extremely strong rate improvements
for quite some time and also solid forward
expectations, reflected in future quotations.
At the same time, however, we have also seen
a dramatic surge in new bulk carrier orders,
and almost 30 VLCCs will reportedly be converted to dry bulk carriers. Somewhere down
the road this will be felt in the marketplace
and it will definitely be hard to absorb all that
new tonnage in two to three years time.
The strong freight market is primarily supported by continued high activity in the Chinese steel industry, with record high steel
export volumes. In addition, several other
industries are doing well and congestion is
tying up substantial tonnage volumes, as ports
are often not able to develop their infrastructure in pace with the rising trade volumes.
China is now producing much more steel
than what is needed to cover its own demand.
Chinas steel exports almost doubled from
about 20 million tonnes in first half last year
to about 38 million tonnes in first half this
year. In July, world pig iron production,
requiring iron ore and coal, was 7.2 per cent
higher than in the same month last year. Over
the first seven months of 2007, world pig iron
production was 8.6 per cent higher than in
the corresponding period last year. Chinas
pig iron production was 13.5 per cent higher
in July than one year ago, whereas the rest of
the world saw an increase of 3.2 per cent. For
the first seven months of this year, Chinas pig
iron production was up 16.5 per cent, where-

Bulk carriers 10,000 dwt +

Existing and on order September 2007

6,000/ 10-2007

Dry bulk market, orders & demolition