Shipping

New Suez Canal digging to be completed in July

Head of the Suez Canal Authority Mohab Mamish said that the coming period of the New Suez Canal
will witness challenges more than the previous stage. He added that the coming days will prove that the
Suez Canal can cope up with such challenges and that Egyptians are able to make a new history. Mamish
noted that preparations are underway for the inauguration ceremony of the New Suez Canal.
The ceremony will be held in August, Mamish said, adding that the dredging works at the new waterway
project will be finalized before a deadline in July. Mamish explained that up to 131.104 million cubic
meters of water-saturated sand have been dredged so far as part of the Suez Canal Development project.
He noted that as many as 37 dredgers are working in the project. The daily dredging rate stands at about
1.5 million cubic meters of sand, he said.
Source: Egypt State Information Service

Yemen: No Port In a Decisive Storm

This morning it was widely reported that vessels were being turned away from Yemens Red Sea ports,
resulting in a number of P&I clubs, including North of England and Skuld, advising their members of the
situation. The news of these events didnt come as a surprise here in the Dryad operations room, as it was
something we had judged would occur since the outset of Op Decisive Storm and had highlighted the
situation in advisories to our clients in late March and, more recently, yesterday.
We have been looking in detail at the security risk in Yemen on behalf of our clients, taking the time and
effort to fuse information from a variety of sources; technological, seaborne and people on the ground,
and then analysing it through the filter of our collective maritime experience before delivering a valid and
actionable intelligence assessment of the situation and risk to CSOs, ships and crews. It became clear that,
whilst the media and industry focus was centred on Aden, including the Non-Combatant Evacuation
Operations (NEO) and the ongoing battle between Houthi and the forces loyal to Hadi in the area, the
wider coalition naval forces were positioning themselves to ramp up the embargo on the resupply of the
Houthi through the Red Sea ports.
In Aden, Dryads source reports and operational analysis indicated that vessels and the port itself were at
risk, with the refinery and port closed. Sources on the ground confirmed our assessment that no one
would be working at the port. Further evidence showed that fuel shortages existed throughout the city
whilst water and electricity supplies were intermittent. Public transport had come to a halt with the only
vehicle traffic within the city restricted to ambulances and vehicles transporting rival militias. As a result,
the local population is suffering food shortages and a major humanitarian crisis is developing. The
legality of this embargo is something for others more qualified to discuss, as are the commercial risks and
impact on charter-party agreements. Dryads primary focus, as always, is on the wellbeing and safety of
the crews and the ships whose risk we are charged with managing.
Our original advice, following the Saudi led coalition announcement of the blockade, was that all owners
and operators of vessels scheduled to arrive at ports in Yemen in the next seven days should look to
implement alternative arrangements. As of yesterday, and the assessment that a more aggressive naval
blockade is likely in the future, Dryad reiterated this advice, mindful of the knowledge of a developing
situation that will probably continue to worsen before it stabilises. Despite this, we continue to hear about
vessels with plans to head for Yemeni ports and private maritime security companies considering
supporting such forays.

Here in the Dryad Ops Room, we will continue to monitor developments around the clock, supporting our
clients with the latest analysis and advice on mitigating risk in what is an increasingly complex maritime
environment. With Decisive Storm naval forces mixing with an increasing number of other international
navies involved in combat and evacuation ops respectively, all vessels would be well advised to give
Yemen as wide a berth as possible. Not so easy in the Bab el Mandeb, but proper planning, good
situational awareness and a pragmatic and compliant approach to naval forces in the waters around
Yemen should mean that transits can continue unhindered. As for trading in Yemen, just remember the
phrase, No port in a decisive storm!
Source: Dryad Maritime

Upgraded Enginei fuel management system from Royston

Diesel power engineering specialist Royston has introduced a next generation version of its successful
Enginei fuel management system. The new integrated system, with a range of enhanced fuel data analysis
and reporting options, has been developed in consultation with vessel operators and owners who are
putting greater importance on the availability of detailed engine and mission critical information. To meet
these demands the new Enginei system uses powerful data collection software to significantly expand the
range of fuel, engine performance and voyage data used for crucial fuel analysis and optimisation
decisions. Lawrence Brown, managing director of Royston Limited, explains: Access to reliable fuel
consumption data is taking on even greater importance for a wide range of fleet management issues, not
only for fuel efficiency but to assess emissions compliance, plan engine maintenance and assess vessel
suitability for different operations.
Our original Enginei fuel management system has been successfully used in a wide range of vessel types
around the world. We have now used this experience to develop an advanced and expanded system that
reflects the industrys increasing reliance on reliable fuel monitoring, reporting and verification systems.
At the heart of the modular Enginei system is an expanded on board flowmeter and sensor system. This
gives the upgraded system the ability to acquire comprehensive real time engine and vessel performance
measurements beyond the usual RPM, GPS and fuel inputs to take in a wide range of other engine control
unit outputs. This includes data from torque, weather and trim sensors and other vessel performance
criteria. This increased scope means the on-board monitoring system can be configured to meet precise
operator requirements to make accurate fuel analysis calculations and customised reporting formats. The
information captured on board is made available for remote interrogation by onshore management and
supervisory staff through a secure online portal and web dashboard, with enhanced data transmission
between ship and shore. Importantly, the new data options include the measurement of fuel consumption
by individual engines to enable operators to more accurately determine actual engine load for the
scheduling of service and overhaul requirements.
In addition, specific fuel burn data can be provided for different vessel operational modes, as well as
consumption measurements per passage and by different captains. All data collected by the Enginei
system can be automatically incorporated into daily reports and vessel energy efficiency plans in a range
of formats. The powerful data collection features and web platform are expandable, allowing additional
user requirements to be incorporated as needs change. On board the vessel, touchscreen monitors on the
bridge and in the engine control room show all aspects of key vessel performance criteria using simple
dial displays and gauges or more complex presentations of trending graphs against voyage data.
The new upgraded Enginei fuel management system is the result of a six-figure product development
programme by Royston that has drawn on the companys considerable experience in marine engineering.
Lawrence Brown said: We have used our specialist diesel engine technology experience to develop an
advanced fuel monitoring system that meets the needs of both on board engineers and the onshore
monitors responsible for much broader fleet management decisions. The flexible data collection and

analysis capabilities of the new system mean that the range of engine and fuel information provided can
be adapted to meet individual operator needs as their requirements change and develop.
New investment in the improved hardware and software associated with the new system has been
accompanied by an expanded Enginei team within Royston to provide the necessary installation, data
analysis and technical support required by an expanding customer base across all marine sectors. The
upgraded Enginei integrated fuel management system is compatible with all marine engine types and can
be interfaced with new-build engine installations or retrofitted to operating vessels. Royston is a dynamic
and expanding diesel engine supply, service and repair company that has operated successfully within the
global marine and offshore market for more than 30 years. With bases in the UK and Perth, Western
Australia, the company has gained an excellent reputation in the marine industry by offering customers
comprehensive drydock and onboard engine repair and maintenance services as an affordable alternative
to the OEMs.
Source: Royston

Ebola virus: Update

Members will be aware of the significant outbreak of the Ebola virus, that affected West Africa last year.
While the outbreak has abated, it is not yet over and it is prudent to continue to focus on crew health and
safety. The Association has received the following overview update from its correspondents France P&I
of the outbreak status in the three core affected countries of Guinea, Liberia and Sierra Leone. It is
recommended that for members calling, or planning to call, at the ports of these countries to continue to
monitor the situation, as well as to continue to encourage vessels to take prudent and adequate measures
to ensure crew health and safety at all times.
1. Guinea
1.1 Status of the epidemic:
After one year, 3,400 cases, including 2,200 fatalities, as well as a declaration of a state of national
sanitary emergency last August, the situation in Guinea remains in development. While the measures
implemented seemed to have been successful enough to officially clear the southern regions of the virus,
the outspread has now moved to the coastal pefectures of the country. Furthermore, a certain number of
reported cases of denial amongst the population, including in Conakry, has led to a certain number of
inadvertent cases of infection.
As a result, as of Saturday, 28 March 2015, this state of emergency has been raised to reinforced
sanitary emergency by President Conde of Guinea for a duration of 45 days in five of those coastal
prefectures: Forcariah, Coyah, Dubrka, Boffa and Kindia (Conakry Prefecture). Those new measures
include various restrictions of movements to be applied in specific areas of western Guinea, specific
containment and quarantine for hospitals and clinics where Ebola cases will have been identified. Specific
restrictions have also been implemented for funerals of confirmed cases.
1.2 Situation in port and airport
So far, according to the latest updates obtained by our colleagues from Senegal P&I, none of the above
measures affect the port or the airport, where the safety measures applied until now (wearing of protective
masks and the use of sanitizer before boarding vessels, etc.) remain unchanged to date.
2. Sierra Leone
2.1 Status of the epidemic:
With more than 11,000 confirmed cases since the beginning of the epidemic, Sierra Leone was the
country which got hit the hardest. While the infection rate seems to have slowed down over the past three
months, a new rise in February led the government to order a second series of national lockdowns with
door-to-door medical checkups, which started last Friday and was due to last over the recent weekend
(lifted last Sunday night).
2.2 Situation in port and airport

Although it is not clear locally whether it is Ebola-related or just a problem of available water draft, we
have been advised that the night curfew in port has been reinstated, preventing any arrival or departure of
vessels between 18:00 and 05:00. Apart from that, the situation remains unchanged in terms of in-port
sanitary measures to be taken prior to boarding vessels. No change either in terms of international airline
service restrictions for the Freetown airport.
3. Liberia
3.1 Status of the epidemics:
Liberia had sought to be declared officially free from Ebola a month ago and on 22 February 2015 the
night curfew was lifted and the Government had ordered the reopening of the inland borders. However a
(so far hopefully) isolated case was diagnosed on 20 March 2015 and the patient passed away on 28
March 2015. Two more suspected cases are currently under quarantine, and 80 persons having been in the
proximity of the deceased will remain under close medical watch. It will take some more time before
Liberia can again seek to be declared officially free of the virus outbreak.
3.2 Situation in port and airport
The situation remains unchanged in terms of in-port sanitary measures to be taken prior to boarding
vessels. Monrovia airport: Air Cote DIvoire (to Ivory Coast) and Arik Air (to Ghana) are now back in
service at the Monrovia airport, along with Royal Air Maroc, Brussels Airlines and Kenyan Airways.
Crew health and safety The 2014 Ebola outbreak in West Africa was the first large scale virus epidemic
that shipping had to tackle this century and was a timely reminder that the risks of disease and the
impact on shipping are as serious and real in the 21st century as they have been in previous ages.
On the frontline are the crews of vessels that may call at ports of countries experiencing disease
outbreaks. With the proper training, provision of protective equipment / supplies, as well as diligent shore
side support vessels can keep themselves safe. To date there has been no confirmed case of any seafarer
contracting the virus as a consequence of sailing on a vessel calling at the ports of countries experiencing
outbreaks. There have, however, been a number of cases of Malaria that were misidentified as Ebola, and
which led to significant complications in ensuring that the correct treatment was applied quickly and that
ill crew were permitted to be disembarked at the ports of third countries for treatment.
While the present outbreak continues, overall, to abate it is too soon to declare the situation as presenting
no further risk. It would also be imprudent to stop prioritising crew health and safety, and some of the
most basic advice concerning personal hygiene and personal safety during port calls should continue to be
reinforced regularly both during training as well as on board the vessel. Further reading The Association
has advised in detail on many aspects and issues that arose from the Ebola outbreak in West Africa last
year. For more information on diseases, viruses and illness that may impact on crews, members are
referred to the Skuld resource about diseases. For vessel specific enquiries, members are asked to contact
their usual Skuld business unit.
Source: Skuld

Early results of Manpower surveys: most seafarers content with life at sea
BIMCO / ICS Manpower Report 2015: preliminary results of new seafarer survey shows majority are
content with life at sea A new survey being carried out as part of the BIMCO/ICS Manpower Report 2015
is directly engaging seafarers in order to understand their views on life at sea and outlook for the
industrys manpower in the years ahead. Preliminary results of the new survey indicate that the majority
of respondents are content with life at sea. The BIMCO/ICS Manpower Report, which has been published
every five years since 1990, has traditionally been based on two main quantitative data sources from
which the current seafarer supply and demand situation is estimated: a questionnaire completed by
shipping companies and a questionnaire completed by national maritime administrations. In addition to
those sources, the new Manpower Report will also solicit the opinions from a wider number of maritime
professionals with knowledge of the sharp end of the manpower supply situation, including seafarers,

lecturers at maritime education and training (MET) institutions, manning agents, maritime unions, and
port welfare workers. The survey of seafarers is the first of the targeted surveys for this years report.
More than 500 seafarers have already responded to the survey, representing over 40 nationalities. Some of
the other preliminary findings include:
Happy ships, timely wage payments and career promotion opportunities were the most popular
responses indicated when seafarers were asked about the important factors that influenced their decisions
to stay with their current employers; 66% of the seafarers that responded estimated that it would take
them less than three months to secure another job in the industry if they chose to leave their current
company; and basic pay and internet access were the most popular responses provided as improvements
in conditions at sea when asked about changes within the last two years.
Having provided seafarers with an opportunity to provide insight on the seafaring career, one of the trends
that resonated in the responses was the importance and value of the training and skills that come with
being a maritime professional: Life at sea is exciting, challenging and very educational. The skills that
anyone can receive from this job cannot be compared to anything else ashore. The survey also points
towards the impact that increased regulation of the industry has had on the seafaring profession. One
seafarer responded: This is a great career, but an increasingly technical and administrative one so it is no
longer as much an adventure as simply a job, albeit one with the possibility of adventure! The rich
qualitative opinions that accompany the responses will supplement and augment the analysis in the final
Manpower Report.
In reviewing some of the preliminary results, Mr Aron Srensen, Chief Marine Technical Officer at
BIMCO, said: This survey has provided us with insight into the views of seafarers today. Understanding
the key issues for seafarers is especially valuable when attracting and recruiting talented young people to
the shipping industry. With preparations of the Manpower Report 2015 continuing apace, Natalie Shaw,
Director of Employment Affairs at ICS, said: We have just launched a second of the new series of
surveys, targeting lecturers at maritime education and training institutions. We look forward to gathering
information and views from those at the forefront of maritime training which will be used to enrich the
2015 Manpower Report. The survey for lecturers at maritime education and training (MET) institutions
can be found online at: http://www.maritimemanpower.com/questionnaire-overview/met-questionnaire-2/.
The survey explores the status of the current recruitment and training intake, training standards, training
techniques, and implementation of the latest amendments to the STCW Convention.
Source: BIMCO

Wet

Oil above $58 on U.S. shale output report, Mideast

Crude oil rose on Tuesday after a forecast that U.S. shale oil output would record its first monthly decline
in more than four years and on tension in Yemen, where top oil exporter Saudi Arabia is embroiled in a
civil war. Brent crude for May (LCOc1) was up 50 cents at $58.43 a barrel by 0815 GMT, while U.S.
crude (CLc1) was up 60 cents at $52.51. The U.S. Energy Information Administration (EIA) said on
Monday it expected U.S. shale production to fall by 45,000 barrels per day (bpd) to 4.98 million bpd in
May. Shale production has helped boost U.S. oil output by more than 4 million bpd since 2010 and has
been a key factor behind the collapse in world oil prices over the last year.
But much lower oil prices, down from above $115 a barrel last June, have now begun to hit exploration.
Its a small change, just a drop in the ocean, but an excuse to buy, said Carsten Fritsch, analyst at
Commerzbank. A lot of speculative financial investors think oil is cheap and are looking for a reason to

get into the market. Oil also found support from tension in the Middle East, where fighting is continuing
in Syria, Iraq and Yemen.
Yemens liquefied natural gas (LNG) plant said on Tuesday it declared force majeure due to deteriorating
security and halted all production. Yemen is a small oil producer, pumping only around 130,000 bpd of
crude in recent months, but analysts fear its civil war could destabilise its northern neighbour, Saudi
Arabia. Geopolitical risk in oil markets remains elevated, JP Morgan analysts said in a note. From a
fundamental perspective however, supply from the Middle East is expected to remain high, with Saudi
Arabia and Iraqi production on the rise.
In Asia, China exported 750,000 tonnes of crude oil in March, its largest volume since 2006, in a possible
sign the worlds second largest crude importer is running out of storage capacity. Analysts also said that
Chinas demand growth would likely slow further. With Chinas Q1 GDP figures about to be released
tomorrow, we see very little upside even if prices move up today, Singapore-based brokerage Phillip
Futures said. Chinas economy is growing at its slowest pace in 25 years and its export sales contracted 15
percent in March, deepening concern over Chinese economic growth.
Source: Reuters (Additional reporting by Henning Gloystein in Singapore; Editing by Crispian Balmer)

Saudi repeats would need cooperation to improve oil prices

The cabinet of top oil exporter Saudi Arabia reiterated that the kingdom would not act alone in restoring
the stability of the oil market and improving prices, state news agency SPA said after a weekly cabinet
meeting. The cabinet renews in this context the kingdoms affirmations that it remains willing to
participate in restoring market stability and improving prices in a reasonable and acceptable manner, the
cabinet said in a statement. But this can only be with participation from major oil producing and
exporting countries and it must be transparent, the statement added.
The cabinet praised a conference in Riyadh last week at which Saudi Oil Minister Ali al-Naimi delivered
the same message. Its statement also repeated that Saudi Arabia does not use oil for political purposes
against any country, and that it is not in competition with shale or other high-cost oil supplies. On the
contrary, it welcomes all new energy sources which add depth and stability to the market, the cabinet
said.
Source: Reuters (Reporting by Reem Shamseddine; Editing by Andrew Torchia)

OPEC publication urges non-members to help stabilize oil market

OPEC has criticized unidentified non-member countries for their refusal to cooperate with the oil exporter
group in propping up prices and repeated its call for them to do so. There is a stubborn willingness of
some non-OPEC producers to adopt a go-it-alone attitude, with scant regard for the consequences, said
the commentary in the latest edition of the monthly OPEC Bulletin. In the past, OPEC has often
shouldered the burden of ensuring oil market stability alone. In the current situation, which should be of
great concern to ALL, is it not time for this burden to be shared? The Organization of the Petroleum
Exporting Countries last year refused to cut its oil output after non-member countries including Russia
declined to offer output curbs, deepening a slide in oil prices.
Source: Reuters (Reporting by Alex Lawler; Editing by David Goodman)

Big Oil in a Low Price World

Despite major cost reduction measures, Q1 2015 earnings for supermajors are expected to be the weakest
in recent memory. Operational and financial indicators for FY 2014, however, reveal that recent
performance amongst the big 5 has been far from homogeneous. In short, the Americans outperformed the
Europeans. Exxon and Chevron posted high net margins of 8.3% and 9.1%, respectively. Shells was a
more modest 3.5%, whilst BP (1.1%) and Total (2.0%) struggled badly. Chevron and Total were the most
aggressive risk takers, as their CAPEX-to-Sales ratios for the year stood at 19% and 14%, respectively,
while the other majors conservatively avoided spending more than 10% of sales. Among other factors,
refining interests are a key driver of this disparate performance. While Exxon, Chevron and Shell refined
broadly as many barrels as they extracted in 2014 (113%, 105% and 94%, respectively), BP and Total
were much more exposed to upstream (55%, 83%) and have not benefitted from the traditional buffer
effect of downstream activities in a low price environment.
Looking at the long-term indicators, not much change can be seen in the 2014 Proved Reserves-toProduction ratio XOM 17.4, CVX 11.8, RDS 11.6, BP 15.2, TTA 14.7 (expressed in years). In an
oversupplied market, the challenge is not to bring volumes, but value. In this respect, the Europeans
looked to offset poor performance by building strong net cash positions between $20-30 billion at yearend 2014 to maintain dividends and shareholder confidence. However, while Exxon, Chevron and Shell
managed to keep their Gross Debt-to-Equity ratio at around 20%, BP and Total ended the year with a
degraded financial structure, at 47% and 62%, respectively.
Considering the above, Shell seems to be the healthiest among the European majors, but crucially lacking
in long-term organic growth opportunities. In this light, the 47bn takeover of BG Group makes sense: it
will boost Shells production by 20% and reserves by 25%, and also provides exposure to high-potential
Brazilian assets. With similarly modest leverage and potential for quick cash generation, Exxon and
Chevron are well positioned for their own M&A moves now the starting gun has sounded.
Source: Douglas-Westwood

North American Oil Federation Could De-Throne OPEC As Worlds Price Manipulator
Three North American oil producing nations should combine resources and form a coalition that could
rival OPEC as a dominant market force, says Chris Faulkner, Chairman and CEO of Breitling Energy
Corporation (OTCBB:BECC). Canada, Mexico and the United States currently produce approximately 15
million barrels of oil per day combined. Faulkner believes if the three countries created a united oil
federation, it could lead to North American energy independence and create a market stabilizing force that
might potentially dethrone OPEC as the worlds defacto price manipulator.
Canada has the third largest reserves in the world and Mexico fully realizes its potential, both on and
offshore. Combine that with the explosion of shale oil in the United States and we have a powerful force
that could stand up to OPEC and say, Youre not the bully on the corner any more, says Faulkner
Faulkner foresees such a coalition sharing technology, information, production and infrastructure,
including pipelines such as the stalled Keystone XL, which became a political and environmental football
with the current administration. We need true leadership in America to make this happen, and we have
already peaked some interest among wise leaders in Washington who understand what this could mean,
Faulkner says. It will take time and a change of administration, but this would be good for North
America and the rest of the world going forward. Its time to start talking about it, Faulkner added.
Global demand for OPEC oil is approximately 29 million barrels per day, yet the cartel still defiantly
produces just over 30 million barrels per day. In March, Saudi Arabia is believed to have further increased
its output to 10.3 million barrels per day, the highest in 12 years.
Canada has one of the worlds largest reserves and is our closest ally. President Pena Nieto is
strategically positioning Mexico to be a dominant producer of the next decade. With Americas know-how
and leadership, we could generate almost as much oil as OPEC and completely change the balance of

power, Faulkner observes. If you like paying less than $3.00 per gallon for gasoline, this is the best way
to insure were not subject to being whipsawed around because of OPECs distemper. Faulkner plans to
continue developing his plan with willing lawmakers, while educating the public through awareness
campaigns. Faulkners plan drew favorable attention from television and radio stations nationwide this
week as part of a satellite media tour he conducted from New York City.
Source: Breitling Energy Corporation

Market awaits assay on Iraqs Basrah Heavy crude despite publication of OSP
Traders are awaiting information about the quality of Iraqs new Basrah Heavy crude grade, despite the
release of a new official selling price for the grade for May. Iraqs crude oil marketing organization
SOMO issued fresh OSPs for its crude oil grades loading in May on Sunday, including the first-ever
official selling price for its Basrah Heavy crude grade, due to load from the countrys southern export
terminals in conjunction with the more traditional Basrah Light crude.
For cargoes destined for Europe, the price of the newer grade has been set at Dated Brent minus
$8.45/barrel, a $3.45/b discount to Basrah Light at $5/b. But market sources said the lack of information
about the quality of the grade its density, sulfur content and product yield has limited the interest
from European end-users for May cargoes.
[Refiners] have asked them to give an indication of the API to show an interest in buying it, but [SOMO]
hasnt given out that information, so [they havent] been all that inspired to buy it, a crude trader said.
It really depends on the API, another trader said. If the API is 22 degrees, than [the OSP] is not good.
If the API is closer to 24 or 25 degrees, it might be okay. Sixty cents does not cover the loss in quality of
one API degree. It is one thing to get an OSP, a crude trader said. It is another to know what youre
buying.
Source: Platts