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TANKEROperator

AUGUST/SEPTEMBER 2015

www.tankeroperator.com

Innovative
engineering for
environmentally
friendly products.
Becker Marine Systems faces its
responsibility for sustainable and
environmentally friendly development
by continuously reducing the ecological
footprint of Becker products.

Nord Strength
Tanker built 2013
LOA 183.0 m 49,995 dwt
Its Becker Mewis Duct
reduces CO2 by 1,134 t per year

fuel saver

Furthermore we research and develop


energy-saving product innovations like
the Becker Mewis Duct. Combined
with a Becker Rudder, the Becker
Mewis Duct enables our customers
to save up to 8% of power and to
improve the EEDI of their vessels.
586 Becker Mewis Ducts have already
reduced CO2 by more than 1,500,000 t
until July 2015. 425 more Becker
Mewis Ducts have already
been ordered.

W W W. B E C K E R - M A R I N E - S Y S T E M S . C O M

Visit us at Kormarine, International Marine, Shipbuilding & Offshore Exhibition,


Busan, Korea, German Pavilion, hall 4, booth no. 4S23, 20th-23rd October 2015

     


  

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Contents
04

Markets
Geo-political challenges continue

26

29

08

Anti-Piracy
 A three-pronged attack
Technology
30 Classification Societies
 All change at IACS
 Asset performance optimisation
 RS rules in compliance
 Flag states take on class
 LR gains tanker success
 Vetting support offered

Singapore Report
 New SSA President
 Join the industry
 Shipmanagement centre
 Norstar set for growth
 FSL Trusts markets gains

18

Shipmanagement
 Wallem promotes new personnel
 V.Group continues momentum

23

Commercial Operations
 Boutique agency expands
 Mombasa agency faces the future

36 Efficiency - Fuels & Lubes


 Keeping vessels operational
 Advantages in planning change
40 Ship Design
 New ship design tools
42 Ballast Water
 Problem of regrowth
43 Profile - DSM Dyneema
 Synthetic fibres used in rope
44 Coatings
 New products and ideas
47 Tank Servicing
 Statutory requirement changes
 Calibrating portable gas detectors

As well as presenting the 1,000th Mewis Duct at Nor-Shipping, the company, through one of its subsidiaries, started to supply LNG as a fuel to
an AIDA cruise ship in Hamburg.
Innovative
engineering for
environmentally
friendly products.
Becker Marine Systems faces its
responsibility for sustainable and
environmentally friendly development
by continuously reducing the ecological
footprint of Becker products.

Nord Strength
Tanker built 2013
LOA 183.0 m 49,995 dwt
Its Becker Mewis Duct
reduces CO2 by 1,134 t per year

fuel saver

Furthermore we research and develop


energy-saving product innovations like
the Becker Mewis Duct. Combined
with a Becker Rudder, the Becker
Mewis Duct enables our customers
to save up to 8% of power and to
improve the EEDI of their vessels.

The fuel is transferred from a purpose deigned and built barge stationed in the port. Managing director Dirk Lehmann and his team are
endeavouring to market this concept worldwide and not only to cruise ships but also to other vessel types, including LNG-powered tankers.

586 Becker Mewis Ducts have already


reduced CO2 by more than 1,500,000 t
until July 2015. 425 more Becker
Mewis Ducts have already
been ordered.

W W W. B E C K E R - M A R I N E - S Y S T E M S . C O M

Visit us at Kormarine, International Marine, Shipbuilding & Offshore Exhibition,


Busan, Korea, German Pavilion, hall 4, booth no. 4S23, 20th-23rd October 2015

Despite the fall in bunker prices, Becker Marines novel design rudders and ducts will still save enough percentage of fuel for a timely return
on investment.

August/September 2015

TANKEROperator

01

COMMENT

Just what are the Nigerians up to?


Did the Nigerians really blackball
113 tankers? It would appear so
given all the fuss that has ensued.
Intertanko, P&I Clubs and the legal
fraternity, among others have all become
involved, since a letter purported to have come
from the Nigerian National Petroleum Corp
(NNPC) suddenly landed on desks, stating that
the organisation had banned the tankers from
calling in Nigerian waters.
The letter included phrases such as
..engaging in crude oil/gas ... activities in
any... terminals within...Nigerian territorial
waters.... The directive further provides that
...the affected vessels have also been barred
from movements within ... Nigerian territorial
waters.
Holes have immediately been identified in
the list of tankers allegedly banned, including
duplications, miss-spellings and the fact that
some of the named vessels had never been to
Nigeria, according to their owners and
operators.
I cannot comment too much as to the
content of the letter, as a copy did not arrive
on Tanker Operators desk, so presumably we
are not banned.
However, it has engendered a series of
warnings to owners and operators of named
culprits about ever considering calling at
Nigerian terminals. Some operators have even
gone so far as to suggest inserting special
clauses in charterparties, especially voyage
c/ps, to indemnify themselves against having a
vessel stopped when fixed to load crude oil at
a Nigerian terminal.
Are we overreacting? I guess we have to
take anything seriously, which could cause a
$90 mill plus vessel to be seized together with
her cargo and crew, as thus far, there have

been no reasons given for the blanket ban.


Until such times that we know the reasons and
how to circumvent those reasons, we had
better take it seriously.
Leading London-based law firm Holman
Fenwick & Willan (HFW) almost immediately
sent out a warning saying that the directive
was thought to emanate from the President of
Nigeria, Muhammadu Buhari.
HFW also explained that earlier this year,
the Nigerian authorities introduced a
requirement that all tankers loading crude
from Nigerian terminals complete an out-turn
verification exercise (OVE) at discharge ports.
It was thought that the recent letter could be
linked to this initiative. However, HFW
confirmed that the grounds for the ban had not
been explained thus far and it is quite unclear
what rules or regulations the owners affected
are meant to have breached.
Wide ranging implications
HFW warned owners and operators about the
potential implications for crude oil tankers
operating within Nigerian waters, which could
be wide-ranging. Whilst steps are being taken
to understand the ban, HFW recommended the
affected owners and charterers take action to
protect themselves against the consequences of
being included on the prohibited list.
Looking forward, owners and charterers
should also take action to ensure they reduce
the risk of being included in any
updated/amended prohibited lists, the law firm
said.
HFW also pointed out that there was a
question mark over what constitutes Nigerian
territorial waters.
For many years now, Nigeria has been a
particularly unstable country and recently

elected a new Government one of whose


election promises was to clean up corruption.
The NNPC has already stated it will look into
the bunkering/fuel oil situation in Nigeria and
within its territorial waters.
With smaller ship-to-ship transfers offshore
there is still a real threat of piracy by interests
allegedly based in Nigeria who want to steal
cargoes and resell them.
The larger crude oil loading terminals are
operated by the oil majors with the authorities
and are by and large well guarded. There are
various factions that occasionally cause
trouble around the Bonny River and Niger
Delta, but these are mainly aimed at the oil
majors operating in the area, rather than the
ships themselves.
At the time of writing (24th July), VLCC
trip rates ex West Africa were above WS80 - a
healthy return for owners but not necessarily
for operators. If we see an exodus of tonnage
from this loading area with its popular heavy
crude, it could spook the market and would
obviously impact on Nigerias foreign
earnings.
Is it just a case of a new Nigerian
Government trying to exert its power over the
oil majors, who are accused of milking the
assets or are there more deep political
undertones at work?
Hopefully, by the time you read this, the
situation will have become much clearer and
we can all breathe a huge sigh of relief. Until
then, there is nothing like uncertainty to send a
market sky high or into freefall.
One has only to remember the Middle East
wars and their affect on the tanker markets
with threats to close the Straits of Hormuz
seen almost daily.
TO

TANKEROperator
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TANKEROperator  August/September 2015

 

INDUSTRY - MARKETS

Challenging times
ahead?
Where do you begin to describe the events influencing the resurgent tanker market of
the past 12 months, a leading broking house asked?
n the crude sector, OPECs historic
decision against cutting crude production
to defend its market share reverberated
throughout the tanker markets. With the
oil price crashing, bunkers, which represent the
single biggest voyage expense, followed suit.
At the same time, higher global crude
production increased transportation
requirements, which supported freight rates,
said London broking house Gibson in its midyear review.
Towards the end of 2014, a widening
contango in crude oil futures increased
speculation of floating storage. Although the
contango was insufficient to make floating
storage profitable, earlier this year up to 30
VLCCs were chartered in anticipation of a
floating storage play later in 2015.

Increasing crude flows out of Iraq supported


Suezmax earnings, whilst exports from West
Africa to Europe remained robust, offsetting the
near disappearance of the traditional West
Africa/US crude trade.
With lower import demand from the US,
flows of West African and Latin America crude
to the East increased, boosting tonne/mile
demand. In addition, the continuing conflict in
Libya provided further support to the West
African Suezmax market, albeit at the expense
of the Mediterranean Aframax trades.
In the products sector, earnings remained
under pressure over the first half of 2014.
However, the addition of refining capacity in
the Middle East began to support the market in
the second half of last year.
This, coupled with stronger global refining

margins, particularly in Europe, boosted


product trades, and subsequent product tanker
earnings. With margins remaining strong thus
far in 2015, together with an additional 800,000
barrels per day refining capacity in the Middle
East coming on stream, product tanker rates
remained at their highest levels seen since
2008.
A comparison spot rates/TCE earnings on
several of the benchmark trades can be seen on
the table below. By the end of June, VLCC
earnings on TD3 (AG/Japan) had climbed to
$69,250 per day, compared with just $12,250
per day for the corresponding period last year.
Making the same comparison for TC2 (MR
37,000 tonne gasoline UK-Cont/USAC) rates
have moved from $5,500 per day last year to a
very healthy $26,500 per day.

June 2014

June 2013

June 2015

Spot rates/TCE (a)

WS

TCE/day

WS

TCE/day

WS

TCE/day

VLCC (MEG/Japan)
Suezmax (West Africa - UKC)
Aframax (Nsea/UK-Cont)
55k Naphtha (MEG/Japan)
37k Gasoline (UK/Cont-USAC)

41
49
83
95
118

$19,750
$9,500
$7,250
$10,000
$9,000

38
72
99
110
99

$12,250
$22,750
$13,500
$13,000
$5,500

64
93
150
141
171

$69,250
$50,000
$69,500
$32,250
$26,500

VLCC
Suezmax
Aframax/LR2
Panamax/LR1
MR (25-55k)

13
1
16
13
105

636
489
916
393
1,816

1
0
8
7
71

626
476
895
440
1,843

1
0
4
2
59

S/H
S/H
S/H
S/H
S/H

D/H
D/H
D/H
D/H
D/H

Total
Total
Total
Total
Total

623
488
900
380
1,756

625
476
887
433
1,772

637
483
927
416
1,821

638
483
931
418
1,880

Deliveries Jul to Jun (25,000 dwt+)


Orderbook (excl. options)
VLCCs on order

26.2 M dwt (197)


49.6 M dwt (455)
61

17.7 M dwt (162)


62.1 M dwt (590)
86

16.7 M dwt (180)


77.3 M dwt (599)
114

Demolition Jul to Jun (25,000 dwt+)


Ldt price China / Sub Continent

9.8 M dwt (96)


$315 / $430

12.3 M dwt (104)


$325 / $495

4.7 M dwt (70)


$220 / $390

VLCC NB / 10yr old


Suezmax / 10yr old
Aframax / 10yr old

$90M
$56M
$47M

$29M
$26M
$20M

$100.5M
$66M
$54.5M

$50M
$34M
$24M

(a) Assessed at market speeds of abt 13 kn laden, 11.5-12 kn ballast.


04

$95M
$64M
$53M

$52M
$40M
$31M
Source - EA Gibson.

TANKEROperator  August/September 2015

INDUSTRY - MARKETS
The continued recovery in earnings was both supply and demand
driven. With the exception of MRs, fleet supply growth in both the
crude and product sectors has slowed since 2014 with supply in some
size groups even contracting, Gibson said.
Limited fleet growth is also apparent this year, which has also
contributed to the markets strength. Inevitably, with the success of the
tanker sector, the temptation to take advantage of low newbuilding prices
has resulted in a sustained period of investment across the board with the
exception of MRs.
With shipyards reporting shrinking orderbooks beyond 2016, pressure
is mounting on yards to lower their prices still further particularly with
the dearth of orders from the other shipping sectors, which are currently
in the doldrums.
At the other end of the supply chain, not surprisingly, we have seen
very little recycling thus far in 2015 with just 17 tankers (25,000 dwt
plus) sold. The largest two units were both 1992 built Aframaxes.
Lightweight prices have softened considerably since last June and at
the beginning of July stood at around $390 per ldt (basis India) about
20% lower than at the same time last year. As a result of firm rates and
lower scrap prices, not many tanker owners are currently considering this
option.
Higher values
Secondhand values across all tanker sizes were higher than in June
2014, even for 15 year old vessels. And there have been several notable
secondhand deals, which have attracted the attention of the market.
Crude tanker values have risen faster than those seen in the products
sector, but nevertheless, there are plenty of buyers looking to invest in
both sectors. Probably the most talked about deal thus far this year was
Euronavs acquisition of four VLCCs for $96 mill apiece under
construction for Metrostar, which has given the buyer newbuilds without
adding to the orderbook.
Looking at events on the political scene, little has changed since last
years round up. A resolution to the Iranian crisis is underway. The
Libyan situation remains unstable and no immediate peace process
appears to be on the horizon. Sanctions against the Russian Federation in
respect to the situation in the Ukraine remain in place but have had little
impact, as crude and product exports continue to flow.
The US Government has thus far not made any decision on
overturning the ruling on the ban of crude exports, but we continue to see
even larger volumes of products from the country.
Certainly, the next few months will be interesting. For the tanker
market, we could be entering a period of ifs and buts, as well as
entering uncharted waters, which will be challenging, Gibson said.
Orderbook
Examining the orderbook in greater detail, Gibson said that tanker
contracting activity is a good first hand indicator of near term
developments in the global fleet.
Investment has increased notably over the past couple of years,
although its intensity has varied, depending on the size group and the
year.
The number of tanker orders in 2013 reached the highest level since
2008. Although ordering activity declined in 2014; nonetheless, tanker
investment thus far this year shows all the signs of beating the 2013
record.
Stronger appetite for new tonnage in recent years has been stimulated
by a number of factors. For example, in 2013-14, counter-cyclical
investment played a big role, driven to a degree by private equity/hedge
funds and relatively undervalued newbuilding prices, which were
August/September 2015

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INDUSTRY - MARKETS
particularly depressed in 2013, reaching their
lowest levels since 2004-05 in that year.
In addition, LR1 and LR2 orders were
supported by strong demand prospects, due to
expanding export orientated refining capacity in
the Middle East and India. Finally, this year the
spectacular rebound in crude and product tanker
earnings has translated into continued strong
investment in new tonnage, despite a rapidly
rising orderbook.
Looking at each tanker segment in greater
detail, 34 VLCCs were ordered during the first
half of this year - just marginally below the
2014 total and not far behind the number of
orders seen in 2013, when investment in new
VLCCs reached its highest level for several
years.
The picture is similar for Suezmaxes, with 30
orders thus far in 2015, already more than half
of all the orders for 2014 - the highest since
2010. Ordering activity for Aframaxes was
considerably more muted in 2013-14, yet an
impressive rebound has been seen this year, as
since January, 40 Aframaxes have been ordered,
the highest number since 2007.
Investment in new larger product carriers has
also accelerated thus far this year. In the LR2
segment, 37 vessels have been ordered, well
above the number seen last year and more than
half in 2013, when investment in new tonnage
surged to its highest level since 2007.
In the LR1 segment, 25 orders have been
placed since January, just marginally short of
the 2014 total, when investment in this vessel
type jumped to its highest level since 2009. In
contrast, ordering activity for new Panamaxes
has remained highly restricted, due to owners
preference for coated tankers.
Investment in new Handy/MRs has also been
very limited since 2014, albeit following an
impressive surge in orders during 2012-13.
Stronger investment in recent years has
naturally boosted the size of the tanker
orderbook, which by now has reached its
highest level since 2011-12 for most size
groups.
At present, VLCCs and Suezmaxes have the
largest orderbook, at 18% and 17%,
respectively, to their current size. The
orderbook for other tanker classes is also
substantial, with exception of Handies.
It will be interesting to see whether new
tanker ordering activity will remain at similar
robust levels during the second half of this year.
If the returns continue to beat expectations, this
will most likely be the case.
Taking into account limited prospects for
tanker demolition - another consequence of
high earnings - all of the above means that the
TO
growth in tanker supply is going to start
06

Source - EA Gibson.

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TANKEROperator  August/September 2015

 

   

           


 
 

   
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INDUSTRY - SINGAPORE REPORT

New SSA president


takes his seat
Esben Poulsson was appointed as the Singapore Shipping Association's (SSA) new
president after the newly elected Council for 2015-2017 was voted into place
at the Annual General Meeting on 30th June, 2015.
he new Council elected Poulsson
as successor to the outgoing SSA
president- Patrick Phoon.

Paying tribute to the work of the SSA and


the Council, Poulsson said:I am honoured
and humbled to be appointed president of this
active and vibrant organisation, consisting in
excess of 470 member companies.
And as the SSA turns 30 years old, I would
like to pay tribute to the work of the many
members who have served tirelessly on the
Council and standing committees over the
years, and, in particular, to my predecessor
Patrick Phoon, who has served on the Council
for no less than 24 years, the last four as
President.
I look forward to helping to represent our
members interests to the best of my ability,
and to continue our constructive relations with
government agencies and other industry
partners in Singapore and overseas in
promoting and maintaining Singapores
position as a leading international maritime
centre.
I feel our hard working secretariat, ably led
by executive director Michael Phoon, stands
ready to help drive current initiatives forward,

and to implement new initiatives introduced


by the Council,he said.
At the 19th SSA AGM, it was announced
that the seven ordinary members nominated
for the 2015/2017 Council, most of which
served on the previous Council, were returned
unopposed. The seven Members are:
 Rene Piil Pedersen, managing director, AP
Moller Singapore.
 Esben Poulsson, chairman, Enesel Pte.
 Caroline Yang, executive director, Hong
Lam Pte.
 Lim Sim Keat, managing director, dry
transport logistics, IMC Industrial Group.
 Katie Men, managing director, Isenco
Holdings Pte.
 Tan Chin Hee, executive director, Pacific
Carriers.
 Lisa Teo, executive director, Pacific
International Lines.
To mark the SSAs 30 years of service to the
maritime industry this year, as an active voice
representing 475 corporate members and
growing, it has rebranded itself with a new
logo and embraced the tagline Navigating the
Future.
Poulsson explained: The tagline
Navigating the Future, was chosen to show

the direction that the association will be


heading towards strengthening Singapores
status as a leading international maritime
centre, which will benefit all of us in the
maritime community. This brand
transformation represents where the
association is today and our vision for the
future.
The SSA also warned that it is important to
distinguish between armed robbery and piracy
when reporting incidents in Southeast Asia
waters.
A little while ago, the SSA commissioned a
study to determine the scale of threat posed to
seafarers in the area.
The findings revealed that in the first
quarter of this year the vast majority of
incidents in this region fell under the category
of armed robbery (which is within the
territorial waters and under the jurisdiction of
the sovereign state) not piracy (which is on the
high seas).
This distinction determines whether a
merchant vessel can seek protection from the
navy/coast guard of the littoral state or from
the navy/coastguard of the vessels flag of
registry, the SSA explained.
The association said that seafarers should be

U T S TM

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Ta n k
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7-10 Oct. 2014, Copenhagen


Stand No.B0-0 01

Fu l l r a n g e o f u n i q u e s e n s o r s
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Cargo control systems for tankers and gas carriers

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08

TANKEROperator  August/September 2015

INDUSTRY - SINGAPORE REPORT


aware that recent reports of pirate attacks are
in fact more likely to have been armed robbery
and targeted at specific vessel types,
particularly when in port or at anchor.
SSA calculated that, with an estimated
50,000 -90,000 vessels transiting the Straits of
Malacca and Singapore (SOMS)) each year
and further numbers sailing around the
Southeast Asia and South China seas, the
likelihood of a merchant vessel, which

exercises high vigilance and conducts antiboarding watch, being attacked is between
0.012 and 0.07%.
The situation in the South China Sea is
vastly different to the situation in the Gulf of
Aden where heavily armed pirates board
vessels in open seas with the intention of
taking the ship and its crew hostage for
ransom payments.
To fully understand the real scale of the

problem, the SSA commissioned the technical


report to examine incidents of armed robbery
and piracy in Southeast Asia waters and the
South China Sea.
The report undertook a detailed analysis of
the quarterly reports issued by the
International Maritime Bureau (IMB) and the
Regional Co-operation Agreement on
Combating Piracy and Armed Robbery against
Ships in Asia (ReCAAP) for the first quarter

Singaporeans urged to join the marine


industry by the MPA
The tripartite maritime task
forces for seafaring and shorebased sectors formed by the
Maritime and Port Authority of
Singapore (MPA) will be stepping
up efforts to encourage more
Singaporeans to join the maritime
industry.
These include increasing publicity and
outreach efforts to profile the diverse job
opportunities available, improving workplace
learning and training, and facilitating
upgrading opportunities.
This was revealed by Andrew Tan, MPA
CEO, in a speech at the 8th Maritime
Manpower Singapore (MMS) 2015
Conference organised by the Singapore
Maritime Officers' Union and Wavelink
Maritime Institute.
In his speech, Tan spoke on the growth of
Maritime Singapore and the diverse
opportunities for Singaporeans, as well as
how tripartite efforts are needed to develop a
quality maritime workforce to support the
industry's future growth.
He also outlined several challenges. These
include the perception of poor living

conditions and being 'disconnected' from the


world, as well as lack of awareness of
remuneration and progression opportunities.
In addition, rapid transformation in the
industry also poses new challenges.
To tackle some of these challenges and to
better support the growth of Maritime
Singapore, the two task forces will be
exploring more structured on-the-job training,
develop multiple progression pathways, as
well as facilitate transitioning of local
seafarers from sea-going to shore-based jobs.
These initiatives are in line with the
national-level SkillsFuture project aimed at
providing Singaporeans with the opportunities
to develop their fullest potential throughout
life, regardless of their starting point. MPA
said that it will be announcing more details on
these initiatives in the months ahead.
To begin with, the task force for seafaring
will be implementing cadet allowance
reimbursement in September to support the
training of about 180 Singaporeans to
graduate with the Certificate of Competencies
(CoCs) Class 3 or 5. To recognise the
perseverance of the students to reach their
first professional CoC certification,

ALWAYS TO BE TRUSTED

Singaporean cadets will also be eligible for


Achievement Awards once they completed the
rigorous training and gained practical
experience at sea.
Under the enhanced Tripartite Maritime
Scholarships (TMSS), 20 students will also be
receiving their scholarships in August, the
highest number of recipients since TMSS was
launched in 2002.
Two new sponsors - NYK
Shipmanagement and X-Press Feeders - have
joined the TMSS programme, bringing the
total number up to five. The other three
companies are APL, PIL and PACC Ship
Managers.
Besides the initiatives by the task forces,
MPA will continue to utilise the Maritime
Cluster Fund - Manpower Development
(MCF-MD) as a strategic tool to support
manpower development initiatives. Earlier
this year, MPA injected another S$65 mill to
the MCF-MD programme to attract and
groom local talent for the maritime sector
Today, Maritime Singapore comprises over
5,000 establishments employing more than
170,000 people, and contributing about 7% to
the Republic's GDP.


We take pride in the relations


we build with our customers,
and we take pride in the
products we deliver. This gives
us the condence to state that
we are always to be trusted.

www.jetsgroup.com

Jets Vacuum AS, Myravegen 1, N-6060 Hareid, Norway Tel.: +47 70 03 91 00 E-mail: post@jets.no

10

TANKEROperator  August/September 2015

SINGAPORE REPORT

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of 2015.
Petty theft
The findings revealed that only 14% of attacks on merchant vessels
were classified as piracy. Of the remaining incidents, 85% were cases
of armed robbery with almost half of these (46%) occurring while in
port or at anchorage. The vast majority of incidents (68%) involved
petty theft by unarmed perpetrators where crew members were
unharmed and economic loss was low.
SSA said it was encouraging Masters and seafarers to ensure that
they comply with recognised methods to counter possible boarding
when traversing Southeast Asian waters and advised that, if boarded,
Masters should put the well-being of their crew first while, at the same
time, fully complying with the standing instructions of their respective
companies.
The association also pointed out that the Best Management Practices
for Protection against Somalia Based Piracy (BMP4) can be
successfully adapted for use in Southeast Asia.
Case increases
In its half yearly report, ReCAAP said that the number of piracy and
armed robbery cases against ships in Asia increased 18% year on year
August/September 2015

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INDUSTRY - SINGAPORE REPORT

Singapore is home to many tanker owners or their subsidiaries.

to 106 during the six months ended June 2015.


This compares with 90 cases during the first
half of 2014.
"Already 106 incidents were reported at the
half-way mark of 2015. This signals the
urgency and importance of more [that needs]
to be done by [the] authorities, shipping
industry and the ReCAAP Information Sharing
Centre towards improvements in the coming
second half of 2015," it said in its report.
The bulk of these cases or 62 incidents were
of petty theft.
Last year, the number of piracy and armed
robbery cases against ships in Asia increased
22% year on year to hit a 10-year high of 183.
It was the highest number recorded by
ReCAAP since it was formed in 2006 and was
formally recognised as an international
organisation in January, 2007.
Of the total 106 incidents reported during
the first half of this year, 56% were in the
Straits of Malacca and Singapore, ReCAAP
said.
Ten of the incidents were described as very
severe involving ship fuel or oil siphoning and
hijacking.
At least one incident was reported each
month during the January-June period. A total
of 11 incidents involved siphoning and
hijacking.
These incidents involved seven product
tankers, two chemical tankers, one other
tanker and one supply vessel.
The key target for the perpetrators was the

12

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appointed president of this active and
vibrant organisation, consisting in excess
of 470 member companies.
Esben Poulssen, president, SSA

oil or fuel, which the ship was carrying and


they left the vessel once the siphoning
operation was complete.
In its six month report released last month,
the IMB also highlighted the continuing trend
in Southeast Asia in the hijacking of small
coastal tankers by maritime pirates, averaging
one attack every two weeks.
According to the report, five small tankers
were hijacked in Southeast Asian waters in the
second quarter of 2015 alone, bringing the
total number of vessels hijacked globally in
2015 to 13.
IMB stressed, however, that enhanced cooperation between regional authorities is
paying off and that early detection of
approaching skiffs has resulted in attacks

being aborted.
Also highlighted was the tracking and arrest
off Vietnam of an eight-man Indonesian gang
responsible for the hijacking of the Malaysian
tanker Orkim Harmony in June. IMB also
praised the Malaysian authorities for the
conviction of nine Indonesian pirates the same
month, apprehended after the January
hijacking of an anchored product tanker off
Johor.
Pottengal Mukundan, Director of IMB said:
Information sharing and co-ordinated action
between concerned coastal states is crucial in
responding to this threat. We commend the
effort that caught one gang and also the hefty
custodial sentences imposed on another which
will help deter further incidents.
TO

TANKEROperator  August/September 2015

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INDUSTRY - SINGAPORE REPORT

Shipmanagement is
thriving on the island
Singapore is a major centre for third party shipmanagement concerns, either
subsidiaries of major groups or standalone companies.
ithin this feature, we look at
two - one in each category Bernhard Schulte
Shipmanagement (BSM) and

Norstar.
BSMs office in Singapore was established
in 2000 and is one of nine Ship Management
Centres around the world.
The Singapore centre is ideally placed to
serve customers throughout Asia and the rest
of the world, with a stable location that is
strategically situated at the heart of the Asian
shipping industry and provides ready access to
the rest of the region.
In conversation with Tanker Operator, BSM
Singapore managing director, Bob Maxwell
said that the centre manages over 40 tankers,
from chemical tonnage, through product
tankers to crude carriers, the company also
manages a fleet of gas carriers.
In total, the nine centres manage over 150
vessels in the chemical, product and oil tanker
segments worldwide through highly
experienced superintendents, who are
extremely competent in tanker operations,
Maxwell said.
Chemical tankers and high value product
tankers have always been a core part of our
expertise going back 15 years to when the
office was established in Singapore. Their
specialist nature, and the in-depth experience
required to effectively manage these vessels, is
key to BSMs success within the market of
Singapore.
We are committed to ensuring that we
deliver the highest standard of crew and
technical management with an emphasis on
safety, environmental protection and smooth
vessel operations within this industry, he said.
He explained that in particular, the Asian
and Singaporean tanker market was moving in
a positive but cautious upward direction,
driven by changes in local demand and
refinery capacity.
New business comes from both established
players and start up ventures. Whilst BSM
14

sees established companies growing steadily,


there are also some new players in the market
and some local trading companies who now
want to branch out into the international
market.
BSM is particularly well placed to help all
of these companies using our long standing
experience and international reputation in the
tanker business, Maxwell said.
He explained that being focused on enabling
business partners to achieve their objectives
through the application of knowledge,
experience and innovation, the companys
commitment to every customer is:
 Maximum vessel availability, safety,
reliability and efficiency to achieve higher
income at the lowest possible operating
cost.
 Protection of customer reputation through
integrity, full compliance and a top quality
safety and performance record.
 Responsive global support provided
through an infrastructure of wholly owned
ship management, crew supply and
maritime training centres in over 30
locations worldwide.
He said that in line with the increasing tanker
interest in Singapore, BSM Singapore was
expanding and would continue to do so in a
controlled and co-ordinated manner.
We dont over promise or take on business
that we cant handle. All new business has to
be properly managed to the benefit and
requirement of our customers and for BSM to
maintain the long standing reputation that we
have established in the tanker industry with
vessel owners and charterers, he stressed.
Petrochemical fleet
Over half of the Singapore-managed fleet
comes from the petrochemical market and
BSMs policy is to recruit shore staff for these
vessels from the same sector to ensure that
they have an in-depth understanding of the
industry.
It is not an option for us to quickly swap

staff from dry ships to oil or vice versa. The


same goes for our crew, as senior officers in
particular have all been properly trained
through the petrochemical environment to
ensure that this type of operating style is
second nature to them.
Our specialised fleet teams of highly
trained on board and shore-based functional
specialists are in the best position to offer
responsive support, he explained.
As for training, Maxwell said that the
company concentrates on value added training
for the crews above and beyond STCW
requirements to ensure that they are properly
prepared for the high pressure working
environment on modern vessels.
Committed to recruiting, developing and
retaining exceptionally skilled personnel, BSM
operates five Maritime Training Centres
located in China, Cyprus, India, Poland and
the Philippines in addition to 23 Crew Service
Centres worldwide. Training scope includes a
mix of internal and external seminars,
workshops and on board training.
Land-based training replicates the on board
environment that seafarers will encounter in
their line of duty, including gas and safety
management courses and practical sessions on
advanced bridge, cargo handling and engine
simulators delivered at BSMs wholly- owned
facilities. BSM strongly believes that
continuous investment in training is vital to
developing capable and professional BSM
people, Maxwell explained.
As for the working conditions in Singapore,
Maxwell said that the island is probably the
most shipping friendly environment that the
company could work in. The Government
works closely with the Singapore Shipping
Association (SSA), of which BSM is a
member, with rules and bureaucracy kept to
the minimum. That is one of the reasons that
the industry continues to thrive in Singapore
and why BSM is committed to being part of
it, he concluded.

TANKEROperator  August/September 2015

INDUSTRY - SINGAPORE REPORT

Norstar set for growth


News that Norstar Ship Management (NSM) had officially opened a crewing office in
Yangon, Myanmar recently - Norstar Crew Management Co - prompted Tanker Operator
to talk with managing director Tom Bonehill.
t the opening of the new office,
Bonehill said: The opening of
our crewing office in Myanmar is
a very significant step for Norstar.
We have been using Myanmar seafarers on our
vessels for many years now and the move to
establish our own office where we can invest
further in training and welfare is consistent
with our long term commitment to our
seafarers and Myanmar as a whole.
The Yangon crewing office now undertakes
all crew manning and departure arrangements
on behalf of NSM in Singapore.
Norstar currently operates a fleet of 19
mainly oil product and chemical carriers. The
vessels are predominately manned by
Myanmar officers and crew.
Bonehill told Tanker Operator that the NSM
platform had been built up to manage tonnage
in all shipping sectors and the company has
the in-house expertise to undertake this. Our
focus over the last few years has been on
chemical and product tankers, however, we are
able to manage other types and have crew in
our pool with experience on drybulk, container
and other sectors.
The new office in Yangon commenced
operations in February 2015 and is an
extension of the Norstar Ship Management

office in Singapore. Norstar has a pool of


around 1,000 Myanmar seafarers, which
makes it one of the largest crewing companies
in Myanmar. The company claimed high
retention rates, which are expected to grow
with the increased training and benefits now
being offered to the seafarers and their
families.
Norstar Crew Management is also active
recruiting local cadets from the Myanmar
Maritime University and the Myanmar
Maritime Mercantile College.
Bonehill added: We are investing in
Myanmar for the long term and wish to play
an active role in the development of the
maritime sector in the country. We are keen to
explore the idea of setting up our own
dedicated training centre here one day and this
is something which is high on our agenda as
our fleet grows and our operations expand.
We intend to increase the recruitment of
Myanmar seafarers to become one of the
leading and preferred employers in Myanmar.
Our focus will be on training crew and officers
to the highest standards supplying seafarers to
all sectors in the maritime industry, he said.
To mark the official opening in June,
Norstar held a three day officers conference
in Yangon, which was attended by around 200

At present, Norstars fleet consists of primarily product and chemical tankers.

August/September 2015

TANKEROperator

Norstars Tom Bonehill.

clients, friends, staff and seafarers.


Bonehill explained the attraction of
Singapore by saying that it is a major shipping
hub, which caters to all of the shipping
sectors. We are seeing it grow from strength
to strength, he said.
Vetting teams
Many of the oil majors have vetting teams on
the island, which he claimed worked well
being in the same time zone, as well as the
same city. Commercially, many of the main
charterers, including the traders, oil majors
and operators also have offices in Singapore.
People are happy to live and work in
Singapore with its thriving shipping
community and high standard of living. Its is
a good place to manage tankers from and the
Singapore Government has been very
proactive in thinking of ways to attract
companies, so yes we see more owners and
operators managing their tonnage from
Singapore. We definitely plan to increase the
size of our fleet managed from Singapore.
Ultimately, Singapore does need to remain
cost competitive and the margins are tight in
honest management so the Government will
need to keep a close eye on this, as no doubt
they are. Ultimately the shipowners will look
at the bottom line and if the managers costs
are too high people will look to more
competitive solutions, he explained.
15

INDUSTRY - SINGAPORE REPORT


As for the potential new business, he said
that in tanker shipmanagement, its all about
performance to the highest standards and
having the oil major approvals. The fact is,
its expensive to switch managers when there
is a period of the vessel being unapproved,
which makes it very hard for an owner to trade
the ship commercially. Ships therefore usually
stay with one manager unless something goes
drastically wrong, and there is no cost control
or external forces insisting on the management
changing.
We have grown organically working with
trusted partners and by referrals. In such
turbulent markets as a manager its hugely
important to work with well-established and
financially secure clients. We are also
managing ships for a number of private equity
backed funds who look to outsource their
shipmanagement, and we have strategically
positioned ourselves for this market
development. Our systems have been set up to
be transparent and meet strict reporting

requirements, which is necessary when dealing


with private equity investors.
We expect to be managing up to 40 ships
within the next two to three years. This will be
a healthy mix of third party and tonnage in
which we have an ownership interest, he said.
He added that NSM believes that the
company is recognised as a cost-competitive,
high-quality shipmanagement company with
integrity. NSM offers both commercial and
technical management services and there are
clear advantages in carrying out both for our
clients. NSM also technically manages a
number of vessels where there is no
commercial management carried out by us,
he added.
Another advantage is that ship finance is
available in Singapore, as it is in other cities
around the world. Almost all the main
shipping banks have a presence in Singapore,
however, ship finance is cross-border and
NSM works with banks from all over the
world. Norstar has close relationships with

many shipping banks and they are


multinational relationships. Setting up a
shipowning business is not easy wherever you
are located in the world. Norstar arranges debt
with banks for the tonnage has invested in, he
said.
As mentioned, today NSM carries out
constant training from the new Yangon office
where the majority of the seafarers emanate
from. Forums are organised at least twice per
year in Yangon and officers and crew
frequently pass through the Singapore office
for training. In addition, a great deal of
training on board is carried out, which is often
the most effective place to conduct certain
types of practical training.
Echoing the view that Singapore is a good
place in which to conduct business, Bonehill
said that the Maritime & Port Authority
(MPA) and the Singapore Shipping
Association (SSA) are relentless in working
with the community to make Singapore an
efficient place from which to run a business.

TO

NSM - a potted history


Norstar was founded in 1998 in
London initially as a ship
brokerage firm. In 2001, the
company relocated to Monaco to
focus on shipowning, investment
and management.
Norstar Shipping (Asia) was formed in
Singapore in 2005, which is now the
company headquarters covering all areas of
commercial and technical management.
In 2009, technical shipmanagement was
brought in-house and in 2010, Norstar Ship
Management was formed by the merger of

Ship Management Associates and Luna,


Norstars in-house technical team. Norstar
Shipping USA was established in
Connecticut, US in 2012.
With over 40 years combined experience
Norstars principals, Chris and Tom Bonehill
have been actively involved in the shipping
industry since 1989. The Bonehill brothers
worked for major shipbroking companies
(Clarksons London/Hong Kong, Arrow
London, Island Shipbrokers Singapore) until
Norstar UK was established in 1998. Norstar
ceased competitive shipbroking in 2007 to

concentrate on its own shipowning and


shipmanagement activities.
Norstar Ship Managements team is
largely made up of the ex-in-house technical
department for a well-known US
product/chemical tanker owner. Many of the
present staff worked with this company for
17 years managing a fleet of about 20
vessels, most of which were built in
Japanese shipyards. In 2010, Norstars inhouse shipmanagement company integrated
the team into its existing technical platform
and NSM was formed.


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TANKEROperator  August/September 2015

INDUSTRY - SINGAPORE REPORT

FSL Trust reaps the


benefits of strong
market
In July, FSL Trust Management (FSLTM), as trustee-manager of First Ship Lease Trust
announced new period timecharter contracts for an Aframax and two MRs.
he 2007-built Aframax FSL
Shanghai and the 2005 and 2006built MRs FSL Hamburg and FSL
Singapore were fixed to a leading
global commodities trader, believed to be
Trafigura, for a fixed period of two years with
options to extend the agreements at a higher
rate for the MRs for a further six months and
the Aframax for a further 12 months.
The charters are due to commence during
the second half of this year and are anticipated
to generate up to $61 mill in revenue during
the next three years, the Trust said.
During the two-year base period under the
new employment, FSL Shanghais net daily
rate represents a 54% increase, while FSL
Hamburg and FSL Singapores net daily rate
represents a 31% increase for each vessel,
compared with the previous timecharter
agreements.
The Trust said that the increased rates
reflected the continued tanker market
improvement and demonstrate FSLTMs
ability to achieve strong charter rates with
good counterparties ensuring stable cash
flows.
FSL Trust CEO, Alan Hatton, commented at
the time: "The new rates are significantly
above the current employment rates for the
three vessels and the projected revenue will
generate significant cash flow for the Trust.
These new contract agreements are another
positive step forward for the business,
providing stable and improved cash flows for
the Trust.
Hatton told Tanker Operator that the Trust
has no immediate plans to expand the fleet.
We do want to grow the Trust and start
renewing the fleet in due course. We would
continue to be sector agnostic, driven by
originating and executing deals in markets
where we believe the fundamentals support
investment, focusing on working with first
class counterparties, minimising residual risk
and achieving strong returns on equity.
When asked if it is company policy to

August/September 2015

FSL Trust CEO Alan Hatton.

continue down the share route, or look at other


forms of financing, Hatton said; We continue
to keep our options open at this stage. We
have delivered an approximately 80% return
for our unit holders in the last 12 months and
the focus is on continuing to demonstrate
strong performance.
We continue to work on various initiatives
to improve our capital structure. This has been
helped by becoming compliant with our loan
terms at the start of the year and being listed
gives us a variety of sources of capital to
target. Getting the balance of sources of
capital right will be a significant determinant
in the success of the Trust, as it is for any
shipping business, he stressed.
Gearing reduced
He also said that the Trusts gearing ratio has
moved from 59% to 49% since the end of
2013, thus managing the relationship between
debt and equity in the business is an important
strategic driver.
The Trust has a variety of deals in place for
both technical and commercial management of
the fleet. Hatton explained that vessels that
remain leased out on long-term bareboat
charters are technically managed by the
respective lessees, except in the case of the
TORM bareboat charters, where a third party
manager was engaged by TORM.

TANKEROperator

For the vessels employed on timecharters or


in a pool and revenue-sharing arrangements,
the Trust works with best-in-class technical
and commercial managers. The technical
managers include Columbia Ship Management
(Singapore) and Thome Ship Management
both of whom had helped the Trust drive
operational efficiencies across the fleet
without compromising on quality and safety.
Commercial managers, Teekay, Nordic
Tankers and HANSE Bereederung have helped
ensure improved rates on the redelivered
vessels, he explained.
Since 2013, we have adopted a new
approach to managing the commercial and
technical requirements of our business, which
has meant having to more carefully weigh the
value of spending more on shipmanagement
costs against achieving improving operating
results.
Our goal is to bring shipowner efficiency
by introducing the right kind of best practices
and standards so that the commercial and
technical sides of our business work together.
In terms of managing our operating expenses,
weve found that paying more attention to how
managers are operating the vessels allows us
to contain the unbudgeted side of costs but we
are not merely saving, but saving wisely. In
some instances we might decide to spend a
little to save much more, Hatton said.
TO

17

INDUSTRY - SHIPMANAGEMENT

Wallem sets its


stool out
Since the end of last year, it has been the case of all change within the Wallem Group
with various senior appointments announced.
tarting at the top, last May, David
Price joined the Wallem Group as
managing director of Wallem Ship
Management.
Price has worked in all senior levels of
shipmanagement and has a high degree of
experience in technical management, manning,
procurement and quality and safety. He began
his career in shipping as a deck officer,
leaving as a Master.
Wallem Group CEO Simon Doughty said at
the time of the appointment; Shipping is a
constantly changing world, and a very
competitive one, so to continue to deliver what
our clients and stakeholders want today and
predict their future needs, we have combined
the right people and expertise.
Wallem Groups growth plans include
increasing the commercial, technical and crew
managed fleets, introducing progressive tools
and systems to both the Group and clients,
building a strong logistics network in Asia,
and escalating commercial focus and activity.
In Europe, late last year, Wiebke Schuett
was promoted to managing director, Wallem
Europe. She is well known with Wallems
clients in her previous role in leading the fleet
personnel team in Europe.
Capt Deepak Honawar, a veteran of Wallem
Ship Management and former Wallem
seafarer, is leading the Wallem Singapore hub,
while Mingfa Liu joined Wallem Ship
Management in January 2015 as managing
director, Wallem Ship Management China - a
newly established role within the Wallem
Group.
Based in Wallems Shanghai office, he is
concentrating on the Groups relationships
with shipyards and drydocks in China, and
represents Wallems shipmanagement services
in the region.
Vijay Soman, who started his career as a
Wallem cadet, now leads the safety, quality
and insurance teams. He is an example of how
a seafaring career can grow into so much more
within the same company, given the right
opportunities and development, Wallem said.
Capt Fared Khan is leading the fleet

18

personnel teams, which encompasses


recruitment, retention, crew welfare and
training, to deliver future-ready seafarers who
are professional, safety conscious and
dedicated to their jobs.
Ioannis Stefanou was appointed in 2014 to
lead the technical management business of
Wallem, delivering clients a reliable, quality
service from the shipmanagement service hubs
in Hong Kong, Singapore and Europe.
A long-term Wallem procurement expert,
Mark Haslett continues to deliver Wallem
clients a reliable and value for money service
with Marine Buying Services (MBS), which
he offers to non-Wallem clients seeking
similar cost savings and quality.
Three new positions in the technical
management team were also recently
established to capture the expertise of senior
staff and focus them on the needs of clients head of Dry Fleet Operations, head of Tanker
Fleet Operations and head of Car Carrier
Operations. The tanker head is Akhileshwar
Roy.
Wallem Ship Management now technically
manages around 122 tankers of which 18 are
VLCCs.
AMCL fleet
An example was the 10th and final VLCC,
which entered into the Groups management
from Associated Maritime Co (HK) (AMCL),
a member of the China Merchants Group, in
mid-February this year. The AMCL vessels
were taken under management under
BIMCOs Shipman contract commencing in
October, 2014.
Speaking at the time, Doughty said: We are
proud to be partnering with another strong
Hong Kong-based shipmanager. AMCL was
looking for a company which could offer a
good record in VLCC experience and had the
crewing pool to quickly take over the vessels.
In conversation with Price and director of
sales & marketing, Nigel Moore, Tanker
Operator was told that Wallem has
specifically developed the three
shipmanagement hubs - Hamburg, Singapore

Wallem Shipmanagements new MD David


Price.

and Hong Kong- and tankers can be managed


from any of these locations.
We aim to provide services either close to
the clients time zone or where the ships mostly
trade - it is our clients' choice, Moore said.
Price confirmed that there was a lot of
opportunity in Asia.
Price cited the case of Chinese owners
wishing to break into the tanker market where
Wallem could add value as a third party
manager by adding oil major approval to the
vessels.
It is not easy to set up a new venture, as oil
majors want a track record before giving the
vessels their approval, he said.
Another factor for oil majors is TMSA,
which once set up is a lot easier to
continuously improve. Price said he thought
there was a TMSA III in the offing next year.
The shipmanagement concern has created the
post of oil major relationship manager, who is
an ex BP employee.
Wallem has been managing tankers since
1971. The first third party management
contract was for a brand new fleet of 10
product tankers for Gotaas-Larsen. We have
since developed a specialist team that focuses

TANKEROperator  August/September 2015

INDUSTRY - SHIPMANAGEMENT
not only on our owner's requirements but the
needs and demands of their charterers whom
must also be kept happy, Moore said.
As for training, Wallem runs tanker specific
courses at the groups main training centres in
Mumbai, Manila and also Qingdao, at which
the next generation of Chinese tanker crews
are being prepared.
With finance appearing to be easy to come
by today, Wallem is marketing its services to
the financial sector. Moore explained that
Wallem was among the first to manage
distressed assets from the banks by which the
group took over both the technical and
commercial management until vessels could
be upgraded, traded and eventually sold. The
vessels included product and Aframax tankers.
We continue to do this business along with
managing vessels for many of the traditional
tanker owners. In more recent times, we have
seen the advent of huge private equity
investment in shipping, which has been the
bigger game changer. This new category of
owner will, we believe, gravitate more to
independent shipmanagers like Wallem in the

future and away from related-party


shipmanagement companies, Moore said.
Critical mass, ie vessel numbers, has
always been quoted down the years as an
essential element in third party
shipmanagement. Moore agreed saying;
Critical mass is essential, even more so today
than in the past. With the ever increasing
legislative and compliance requirements, a
shipmanager must develop and maintain a
wide range of highly skilled staff along with a
huge knowledge bank and the systems to run it
all.
With a sufficient fleet size, we can deliver
what is required and at a reasonable cost to
our clients. At the same time, whilst Wallem is
big enough to provide economies of scale we
are not too big that we cannot provide a
tailored service to our valued clients, Moore
stressed.
Price said that management fees had not
changed in 20 years and due to the raft of new
rules and regulations, shipmanagement
companies have had to bring in resources to
cope, leaving very little margin left.

He confirmed that he was looking to expand


Wallems shipmanagement sector organically,
but not at any cost. Only quality vessels and
managers would be considered.
Wallem also operates SeaSafe Marine, a life
boat maintenance service company, which
recently won its first fleet maintenance
contract to look after 20 drybulk carriers.
SeaSafe Marines current client list includes
companies from across the maritime sector,
including those operating tankers.
SeaSafe is described as an independent
lifeboat servicing and testing organisation
(ILSTO). It is an authorised representative of
major lifeboat and davit manufacturers, with
class and flag approvals.
Wallem Groups other third party services
includes marine buying services (MBS), which
delivers procurement services to third party
shipowners and other maritime businesses.
MBS lowers operational costs by using
economies of scale derived from planned
project purchasing while allowing shipowners
to remain in control of all decision making,
Wallem claimed.
TO

B ROW
ROW N , S
SON
O N & FERGU
F E R G U SON
S O N L t d.
d.
M A N UA L OF
OI L TA NK
K ER
OPER ATIO
ONS

DR. RAYMOND SOLLY


In co-operatioon wiitth

CAPTAIN QUENTIN COX


andd

JOHN ONSLOW

BROWNS NAUTICAL ALMANAC 2016 EDITION


PUBLICATIO
T ON DATE
T 1ST OCTOBER 2015
Browns Nautical Almanac is arrangeed in numbered parts for ready referenc
e e as follows:

I. Astronomical data in daily use by na


n vigators, with explanations of its use.
IIII. Nautical
N ti l Tables
abl and
d Methods
th d .
III. Tide Tables
a
for Home and Foreign Waters, predictions have been comp
piled by the mostt
reliable authorities as acknowledg
ged; The Tidal Constants for British Isles an
nd Foreign Ports.
IV
V. Coastal Courses and Distances arou
und the British Isles. Courses are given in Correct Magnetic
(2015) and in True (3-gure) notation,
t
distances are to the nearest mile; Table
a of Courses
and Distances around the British Issles, North Sea, English Channel and the Baltic Ports.
V. Distance Tables
a
giving a world-wid
de coverage of total distances from the principal ports of
Britain, U.S.A. and Canada, to all im
mportant ports of the world; Numerous other tables giving
inter-port distances in important aareas.
VI. Miscellaneous Inffoormation: Legal, Technical
e
and General.
VII. Lights, Beacons and Buoys of th
he British Isles, including ire and the Channel Islands;
Pilotage information.

2016

Distributors
i
in
n over 30
countriies worrldwide
l
.

webbsitte:
e www.skipper.co
. .uk
e
e-mail:
mail:
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info@skip
ippe
r
.co
.
co
uk
.uk
A mass of Valuab
aluablee information
infformation for the M
Merchant
erchant Navy,
Navy,
y, Yaach
achtsmen,
tsmen, Shippers
Shippers, Shipping Oces,
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etc.
c.
telephone:: 0141 883 0141
Used
U
sed rround
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world
orld ev
every
ery da
dayy thr
throughout
oughout the yyear.
earr.

G51 4DA

August/September 2015

P rooviding Nauttiiccal
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publiccat
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TANKEROperator

19

INDUSTRY - SHIPMANAGEMENT

V. Group to keep
momentum going
Today, the V Group claims to be the worlds leading provider of maritime services to the
commercial shipping industry and has become an increasingly important
player in the energy sector.
anker Operator spoke with Matt
Dunlop, Director Marine
Operations for the group about
managing a portfolio of vessels
and services in todays market.
V Group delivers a wide range of marine
services, including technical management,
seafarer management, technical support,
procurement and ship supply chain
management, including shipmanagement
specialists - V Ships.
It employs 2,500 people in 60 locations
worldwide and manages the recruitment of
around 38,000 seafarers. The group delivers
ship and crew management services to a
diverse fleet of about 1,100 vessels, including
crude, products, chemical and gas carriers,
plus many other types of vessels.

Specifically related to tankers, V Ships


manages 300 vessels (see table for tanker type
breakdown).
Dunlop explained that the group has a
global network of 18 shipmanagement offices,
located close to the clients and their clients, eg
charterers and oil majors. By setting up this
system, V Ships can offer a bespoke service in
dedicated fleet cells, supported by back office
operations.
Not all of the offices manage tankers, as this
requires a different type of capability and
experience, as well as a good relationship with
the oil majors. V Ships has thus far set up
tanker operating centres in Singapore,
Glasgow, Limassol, Dubai, Montreal, Chennai,
Fort Lauderdale, Hamburg, Oslo, Nantes and
Rio de Janeiro.

We have a superintendent near to our


vessels wherever they trade providing ongoing
support, he explained. V Groups integrated
software package links everyone ashore and
afloat in a transparent and real time manner,
including the owners of the ships, the offices
and vessels. It controls everything from the
vessel log and crew management to
provisioning, maintenance, cargo and financial
accounting.
Dunlop said that V Groups only assets are
its people. Our focus is to retain our
competent experienced shore and sea staff in
order to build a team, which delivers
performance assured. This reflects our
passion and commitment for delivering the
best possible service and generating the
highest possible return on assets 24 hours a

Source - V Ships.

20

TANKEROperator  August/September 2015

SHIPMANAGEMENT
day, 365 days per year.
Todays role requires absolute focus on safety and
compliance with the latest legislation and protection of the
environment. We must understand the owners needs and
priorities in a difficult trading environment. In todays world,
we see an increasing emphasis on transparency and the need
to operate under the highest ethical standards. This applies to
any vessel type.
One of the biggest challenges is the development of the
next generation seafarer and shipmanager, instilling traditional
standards in a modern electronic world. V Groups risk
management, regulatory compliance and IT capabilities are
key competitive differentiators in the industry supporting the
team ashore and afloat, he said.
Training centres
Training is undertaken through a variety of methods. Dunlop
explained that today, the safety culture of the ship and shore
operation drives safe tanker performance. With this in mind, V
Group has four training centres delivering Crew Resource
Management courses to the IMO Course Model 1.39 Leadership and Teamwork standards. This investment will
quadruple our throughput of CRM trained officers in 2015.
We have our knowledge-based training course matrices,
which support TMSA compliance to the highest levels of
industry best practice; and we are excited about our new
liquid cargo training simulator, which has opened in our startof-the-art training centre in Manila, he said.
Dunlop continued by saying that this was a considerable
investment in the staff but the group doesnt stop with training
ashore, as every tanker is attended annually for 10-14 days of
on board training and independent safety inspections are
carried out by Seatec Safety Services. We do this to ensure a
strong and healthy safety culture is embedded as part of our
performance assurance to our clients and their stakeholders,
he explained.
He also claimed that the groups high standards for safety
and corporate governance also makes it attractive to financial
institutions. We maintain a dialogue with all the major
players in the market, he explained. In recent years, the
group has worked directly with banks to manage and dispose
of distressed assets. The groups global reach was essential to
them in some cases in order to respond to fluid situations in
different parts of the world.
We were also a safe pair of hands to take oversight of what
were often challenging vessels.We maintain those
relationships now and work to be recommended as a preferred
manager for mortgagees, he said.
The more recent rise in private equity involvement in the
market is something that Dunlop has identified and actively
targeted as an area for growth. These concerns are looking to
grow and need a partner who can support those plans with
adequate capacity and reliable service delivery, he said.
Critical mass
Down the years,critical mass coupled with a large portfolio of
vessels was said to reap benefits when purchasing goods and
services. Dunlop thought that this was still very important in
bargaining power. However, it is not about volume but how
you use that volume, he said. Proper planning of procurement
August/September 2015

TANKEROperator

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INDUSTRY - SHIPMANAGEMENT
around key ports and ordering early where
feasible, are essential. He said that systems
and processes were also fundamental to
executing this strategy properly.
He explained that economies of scale can be
seen in warehousing, distribution, connectivity
with primary suppliers and quality of supplies
and services, including responsiveness to any
issues, which is of equal importance as cost.
With respect to crewing, the size of the
companys pool of over 26,000 positions on
board ship, allows it to absorb capacity
shocks, ie large numbers of vessels entering
management, which those having smaller
networks would be unable to manage.
He said that going forward, understanding
why shipowners and private investors
outsource is key to the future. These include  Increased access to global labour market,
especially technical specialists.
 Allows shipowners to concentrate on their
core business.
 Easier to benchmark operating costs.
 Increased purchasing power through
economies of scale.
 More flexible asset investment options easier to divest/invest.
 Easy access to specialty services, eg

22

maintenance and repair.


 Improved risk management.
A key characteristic of successful asset (ship)
management is consistently making sound
decisions and good compromises. It involves
carrying out appropriate tasks at the right time
and at the optimum level of expenditure.
Successful management requires the
commitment of top management and a
motivated workforce. Constant monitoring is
required with the recording of appropriate
asset information and management
measurement activity,Dunlop stressed. This
international standard relating to asset
management is the day job in V.Group!
If we can continue to focus and achieve the
above, third party shipmanagement does have
a future. Shipmanagement is a highly
competitive, tight margin business but it is
also a relationship business, built on trust and
transparency.
We will see greater consolidation amongst
marine service providers as the economics of
running a small to medium-sized operation
become less attractive and the bar to entry is
raised, he added.
The group offers a wide range of marine
services, which is another way to add value to

Matt Dunlop, V.Group, director marine


operations.

the groups clients when managing the vessel


running costs. They can also ensure that the
required quality standards are met. For
example, the group has a large and rapidly
growing crew victualing business - Oceanic
Catering - which not only ensures seafarers are
fed at very competitive rates per person per
day, but also the huge investment in training
and systems, such as the new culinary centre
in Manila, means that the standard of food on
board is improved and the crew are kept
TO
happy, as well as the owner.

TANKEROperator  August/September 2015

INDUSTRY - COMMERCIAL OPERATIONS

Boutique agency on
global expansion
programme
News that Monaco-based agency and logistics concern Cambiaso & Risso International
(CR) had opened new offices in Dubai on 1st July prompted Tanker Operator to look into
the agency with the help of president and CEO Giovanni Paolo Risso.
R Shipping & Logistics has also
opened an office in Fujairah in a
co-operative venture with an
Omani concern, which has a
license to undertake agency services in the
area.
Risso explained that this move was part of
the companys global expansion programme,
which recently saw offices opened in both
Singapore and Hong Kong.
He said that it was the companys policy to
expand into areas, rather than go down the
acquisition trail, although there were several
strategic joint venture agreements in place
worldwide. Further expansion plans are in the
pipeline.
Dubai joins Genoa, Singapore and Hong
Kong as a hub for their respective areas. For
example, the UAE office will market CRs
services to Qatar, Oman, Bahrain, Saudi
Arabia and Kuwait, plus India.
At present the Group operates in all
Mediterranean ports, Singapore, Hong Kong
and has further expansion plans in Asia,
Europe and the Americas.
CR was founded in 1946 in Genoa by the
current presidents father, but is now
headquartered in Monaco and has offices
throughout Italy, France, Spain, Slovenia,
Panama, Singapore and Hong Kong and now
Dubai. North Africa is also covered through
co-operative agreements.
The agency currently handles more than
4,000 ship calls worldwide. Almost any port in
the world can be served through the hubs or
by the joint ventures, as more and more
companies are demanding a worldwide agency
agreement with just one provider.
Risso described the company as a boutique
ships agency/port logistics concern rather
than a conglomerate similar to the larger

August/September 2015

service providers, thus providing


tailor-made services to its
clientele.
After the considerable growth
achieved over the last 20 years,
starting in November 2013, the
company doubled its presence in
the Far East by launching the
Hong Kong branch, following the
strengthening of its Singapore
office, which provides full port
logistic services to vessels,
including cruise ships. For
example, the Singapore branch
was started by just three people
but now boasts a staff of 15.
Tankers have formed a
significant part of the companys
service offering since the 1960s
and 1970s. The company started a
tanker broking arm in Genoa, but
has since decided to concentrate
on agency and port logistics.
Since the 1980s, CR has been
marketing its agency services to
traders, operators and charterers,
which have increasingly become
the tanker operator of today, rather
CRs president and CEO Giovanni Paolo Risso.
than the oil companies. Swissbased Vitol became one of CRs
company started with chemical tankers some
first clients and is now a major user of the
40 plus years ago as Italy was and to a certain
companys services worldwide, having
extent still is, a centre for chemical tanker
become one of the worlds largest trading
activity.
houses.
Full commercial management is offered,
Risso explained that many employees are
including the provision of vessel disbursement
trained at a school in Genoa before being sent
accounts, as CR operates an accounting
out to work in CRs various offices
department.
worldwide, including Singapore, Hong Kong
Next year, the family owned concern,
and now Dubai.
started by Giovannis father, will celebrate is
Today, CR handles all types of tankers from
70th anniversary.
gas, fuel oil, through to crude oil carriers. The
TO

TANKEROperator

23

INDUSTRY - COMMERCIAL OPERATIONS

New name for


established Kenyan
service
One of East Africas oldest ship supplier companies has changed its name to emphasise
its growing ability to supply anything that a ship may require.
We have added All Supply to our
original name Mombasa Ship
Chandlers Ltd because we always
manage to find exactly what is needed
whether it is pre-ordered or an emergency
supply, explained All Supply Mombasa Ship
Chandlers managing director, Mohammed
Muses.
The company is a second generation family
business headquartered in Mombasa, Kenya,
which has been a member of the International
Ship Suppliers and Services Association
(ISSA) for many years and is claimed to be
the only dedicated ship supplier in Kenya with
the ISSA quality mark.
The company sources foodstuffs both
locally and abroad to ensure quality and highly
competitive prices. It works closely with a
strategic partner in the Nairobi fruit and
vegetable market to be able to guarantee the
highest quality fresh produce, processed and
packed in strict hygiene conditions, and it
imports a wide range of internationallyrecognised dry goods brands.
This ensures we can cater for the food
requirements of everyone, including all the
ethnic groups, on board all of the international
ships calling in East African ports, said
Muses. Our range is the most extensive in the
region and our facilities include a storage area
for 300 tonnes of temperature controlled and
100 tonnes of ambient goods just a kilometre
away from the port of Mombasa.
All Supply Mombasa Shipchandlers can
also handle everything from chemicals, gases
and fire and other safety items to any spare or
replacement deck and engine parts, which a
ship may require.
It is a key contact for vessels and shipping
agents for the supply of navigational
requirements, especially from the British
Admiralty Catalogue.
Its team of 40 will also organise any other
service requested including pest control,

24

diving and cleaning,


forwarding and
customs clearance, and
any medical or
chauffeuring services
needed.
We are the local
agent for Merichem
Merigases and we are
able to offer refilling
services for all required
gases in under 24
hours. In addition, we
also have a stock of
exchangeable cylinders
which we can offer for
more urgent orders,
said Muses.
Some of the employees with Mohammed Muses on the far left.
The company has
also built a strong reputation in the petroleum
queuing up to berth at the two discharge
and lubricants sector enabling it to supply a
terminals.
wide variety of these products very quickly.
He said that he was optimistic that in the
future, Kenya will hopefully be exporting
more. Also Uganda is the biggest transit
Clearing & forwarding
market for Mombasa representing 77% of the
The company supplies all deck, engine,
transit market and with large oil reserves being
electrical and fire and safety items that are
exploited, the Ugandans will be relying on
required and has an international supplier base
Kenyan ports, as a transit point for either
for products that are not available locally. This
crude or refined petroleum product exports.
is backed up by an in-house clearing and
Unfortunately, despite the fact that
forwarding department, which ensures that all
Mombasa is improving and is today more
shipments, including urgent deliveries, arrive
efficient than neighbouring ports, the nature of
at the vessels in time.
operations will not allow vessels to call just
We have always had a reputation for
for stores, crew changes, etc.
quality service and highest business ethics,
As with all our segments we provide value
and now our name also reflects the extensive
for Money (vfm). However, particularly for
range of services and supplies we can offer,
the tanker segment, as there is a long wait
said Muses.
outside for a berth, we initiated outer port
He told Tanker Operator that Mombasa has
limits (opm) supply by boats. On several
two oil terminals serving about 200 tankers
occasions we have quickly been able to
annually, In 2014, the port handled 7,192,000
respond to urgent provisioning made possible
tonnes of bulk liquids representing 11% of the
by holding over 500 stock items in our
total vessels calling at Mombasa.
wharehouse specifically for this scenarios,
Muses said that the tanker market was not a
Muses explained.
a big one, but an important one. Tankers are
TO

TANKEROperator  August/September 2015

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INDUSTRY - ANTI-PIRACY

Tankers, terrorists
and the cyber lords
The shipping industry is facing attack from three fronts, according to
ESC Global Security.
he $8.4 bill expansion project to
double daily ship transit capacity is
an obvious commercial boon for
the tanker segment, but navigating
the new Suez Canal when it officially opens
this month, combined with the threat of
terrorism and the ongoing migrant crisis in the
Mediterranean, will result in the need to
increase maritime security.
ESC Global Security president Jaanus
Rahumgi, who is working with the Egyptian
authorities and the Challenge Consortium (the
party responsible for the New Suez Canal
dredging and construction works) to mitigate
security risks and secure the canal, said the
industry must be aware of and prepared for a
terrorist led incident - nothing is impossible.
Referring to the 2013 terror group RPG

attack on a ship transiting Suez and the


reported detention in June this year of 13
Muslim Brotherhood members suspected of
planting explosives near the canal, which
Rahumgi claimed was incorrect, Suez
remains an attraction to extremists bent on
disrupting western economies. Security of one
of the worlds most important oil trade routes
is imperative.
New threats in the Middle East and the
Mediterranean need new resources, new Best
Management Practices and more co-operation.
Nation states do not have the resources
available to deal with these new threats on
their own and relying purely on military
intervention is expensive. Government
agencies, the military and the private sector
must co-operate and work in concert to

mitigate these new threats, he warned.


Rahumgi is concerned that the reduced
threat of Somali piracy has resulted in the
perception that maritime security is no longer
a priority, but in reality nothing can be further
from the truth.
The migrant crisis in the Mediterranean is
a concern, as it is being used to smuggle
terrorists into Europe. With thousands crossing
the Mediterranean from Africa and the Middle
East each month, the abolition of Europes
internal frontiers will make it easier for
terrorists to move across Europe undetected,
he said.
According to newspaper reports, there are
thought to be about a million migrants looking
to enter Europe across the Mediterranean from
North Africa. International Chamber of

Facing attack on three fronts.

26

TANKEROperator  August/September 2015

INDUSTRY - ANTI-PIRACY
Shipping (ICS) secretary general Peter
Hinchliffe has already indicated that it is likely
that almost half a million displaced people will
need to be rescued at sea this year alone.
Yet whilst the merchant shipping industry
has managed to rescue about 10%, the
increasing number of migrants is expected to
see at least six merchant ships per day called
upon to rescue seaborne refugees, which will
certainly have a bearing on commercial
operations.
If we are to mitigate the security risks
associated with this humanitarian crisis and
deal with a potential increase in terrorist
activity in Europe, Brussels, maritime
administrations and the security services must
work in concert, Rahumgi said.
His comments coincided with a joint
statement issued by the IMO and the
International Organisation for Migration
(IOM). IMO secretary general Koji Sekimizu
and IOM director general William Swing
agreed to establish an inter-agency platform to
create an information sharing and
communication system for sea migration
incidents in the Mediterranean.

The IMO is also developing ICT system


optimisation guidelines to address the
burgeoning cyber security issue the shipping
industry faces.
At the IMO Maritime Safety Committees
94th session, held in November, proposals to
develop voluntary guidelines on cyber security
practices were under consideration but
shipping associations BIMCO, ICS, Intercargo
and Intertanko have since called for more
urgent action.
In joint release issued in April, the
associations stated: Protection against
malicious attacks on computer based systems
on board ships is now hitting the top of the
agenda for shipping organisations in all
corners of the world.
ESCs Rahumgi concurred. In the modern
world, most systems and data operate digitally,
in the cloud. So hacking into a vessel or
shipping companys communications systems
could, in a worst case scenario, result in ships
losing their ability to navigate. Critical
systems could be prevented from functioning,
resulting in collision, pollution and
environmental damage, and possibly the ship

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At the very least cyber-crime can result in
ship delays, changes to manifests and data
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27

INDUSTRY - ANTI-PIRACY
not be able to connect to shore-based offices
and vice versa, halting a companys entire ship
operations. Cyber defence is the most
important aspect of maritime security today,
he said.
In its ISTR 20 Internet Security Threat
Report, published in April 2015, anti-virus
specialist Symantec said that the techniques
hackers are now using are so advanced that
companies are struggling to keep up.
Symantec reported that targeted spearphishing attacks increased in 2014 as attackers
perfected techniques to make these more
selective by infecting legitimate websites,
monitoring site visitors and targeting only
those companies they wanted to attack.
The anti-virus software provider said that
companies were finding it inordinately
difficult to defend themselves against
Trojanised software updates, which hides
malware inside software updates waiting for
unsuspecting operators to download and install
them, ostensibly infecting themselves.
Most susceptible are those small- and
medium-sized organisations that have fewer
resources to invest in security, and many are

still not adopting basic best practices like


blocking executable files and screensaver
email attachments. This puts not only the
company, but also their business partners, at
higher risk, stated Symantec in the report.
Cyber-attackers are leapfrogging defences in
ways companies lack insight to anticipate.
Symantec said that no company is immune,
citing a 40% increase in spear-phishing attacks
in 2014 compared to the previous year, while
non-targeted attacks, which continue to make
up the majority of malware, increased by 26%.
As Joseph Carson, ESC Global Securitys
head of cyber security, said at the QuBit 2015
conference on cyber security: Cybercrime is
no longer a hobby, it is one of the biggest
businesses in the world. But the biggest risk is
from human operators not understanding how
to deal with or identify a possible security
breach.
According to Carson, 70% of all cyber
attacks result from the manual sharing of
social media scams or staff opening phishing
emails and attachments; yet 90% of all these
threats could have been prevented with
software patches and fixes.

Rahumgi said that the conservative nature


of the maritime industry is placing it at
significant risk. He urged shipping companies
to embark on cultural change in order to make
shore-based staff and ships crew more aware
of ICT security so they can adopt security best
practice.
Shipping is a very conservative and doesnt
think too much about cyber-security but we
need to address this culture and all
departments must co-operate and communicate
more effectively with one another, especially
the IT and operations departments.
The cyber-criminal is invisible, the virus
microscopic. But there is not enough cooperation between the different departments to
provide even the most basic protection.
Internal internet procedures and protocols lag
far behind the pace of malware and botnet
development. But a lot of issues can be
averted be securing networks with frequent
password changes and patches. These are
simple solutions. It is possible to build up
more advanced system protection but the first
step really is to establish a company-wide
cyber security culture, he stressed.
TO

Delivering success, together


Success is infectious. In the three years since its launch, NAVTO
ORs ENC service has become a t rue
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28

TANKEROperator  August/September 2015

TECHNOLOGY - CLASSIFICATION SOCIETIES

IACS - Changes at
the helm
Christopher Wiernicki, ABS chairman, president and CEO, assumed the role of IACS
Chairman at the end of the 71st session of the IACS Council in Paris on 2nd July, 2015,
replacing BVs Philippe Donche-Gay who had served his 12 month term in the chair.
ommenting on his predecessor's
contribution, Wiernicki said:
"IACS, and the industry at large,
will continue to reap the rewards
of Philippe's leadership."
In response, Donche-Gay thanked fellow
members for their support during his time in
office. "Over the past year the support of my
peers has allowed IACS to deliver, on time, a
number of challenging and far-reaching
commitments including the final
implementation of revised Common Structural
Rules, important new Unified Requirements
pertaining to Container Ship safety, the
revision of the existing Unified Requirement
on Complex On Board Systems and progress
with the development of LNG Bunkering
Guidelines," he said.
The Council meeting also marked the
retirement of Derek Hodgson as IACS
permanent secretary. Donche-Gay praised

IACS new secretary general - Robert


Ashdown.

Hodgson's long-standing commitment to the


organisation. "Derek's professionalism over the
past six years has been fundamental in

Christopher Wiernicki is the new IACS


chairman.

ensuring the secretariat has evolved to meet the


ongoing needs of its members during a
formative period in IACS history," he said.
New position
Replacing Hodgson, Robert
Ashdown was appointed to the
newly created position of
secretary general. Looking
forward, Ashdown said: "IACS
has a formidable reputation as an
expert technical advisory body to
the maritime industry and its
regulators and plays an integral
role in maintaining and
advancing the safety and
environmental performance of
international shipping. I look
forward to working with all
stakeholders so that IACS
continues to deliver its objectives
in a positive and collaborative
manner."
IACS was to release a
document outlining its updated
strategic focus just after Tanker
Operator went to press.
TO

August/September 2015

TANKEROperator

29

TECHNOLOGY - CLASSIFICATION SOCIETIES

Optimising asset
performance
Cost reduction and control, optimising efficiency, improving environmental performance,
safety and operational reliability of hull and machinery, asset decommissioning - these
are among the most pressing concerns for owners and operators
of ships and offshore units today.*
ome but not all of these issues are
also subject to regulation, which is
having a profound effect on the
industry. The regulatory landscape
is complex in view of the number of
increasingly demanding regulations,
compounded by the introduction of regional
requirements, for example monitoring,
reporting and verification (MRV) in the EU
and ballast water management in the US.
Some rules have uncertainty around entry
into force and compliance dates; most notably
the global sulphur cap that will follow the
review of fuel availability in 2018, either in
2020 or 2025; the EU has decided to make a
global cap mandatory in its waters as of 2020.
Further down the pipeline are likely to be
new rules addressing underwater noise,
biofouling, CO2 and black carbon emissions.
They require significant investments to
comply, hampered in certain cases by
immature technology solutions. In the case of
the Ballast Water Management Convention the
delay in ratification has not stopped some
owners from proceeding with installations but
many others have not, meaning they have not
yet begun to address the costs of compliance.
One thing that can be predicted with some
certainty is that both existing and future
regulations call for more complex technologies
to achieve compliance and hence the need
for more and better data and a further increase
of the demands to be made on crew and
shipmanagers.
Addressing these challenges will inevitably
require new approaches. Typically, we tend to
consider the elements of efficiency,
performance, safety, compliance and
maintenance in isolation, but ABS believes the
industry has entered an era where theory,
practical experience and technology allow us
to take a more holistic approach to best
manage the performance of ships and offshore
unit assets.
Granted, moving beyond the typically
fragmented marine industry is a challenge to
ways of working that have been in place for

30

decades. It will be necessary to address the


traditional silos of information not to
mention a culture of commercial
confidentiality that discourages transparency.
The challenges extend from owners to their
crews, their suppliers and customers,
charterers and financiers. In terms of
newbuilding strategies, it can mean working
more closely with shipyards to increase the
focus on overall efficiency and performance
rather than simply price or schedule.
Integrating equipment and software systems
would be part of this process.
The enablers of the holistic approach
comprise data collection and analysis
techniques, IT systems, sensor technologies,
simulation methods and system diagnostics
that address factors, such as fuel efficiency,
emissions control, hull performance and
machinery condition.
Big Data
While some of these are new, others have been
available in one form or another for some
years. The difference now is that they can be
brought together by better connectivity. With
the advent of Big Data there is a clear need
for the ability to compress the results into
actionable information for decision support
purposes.
In addition to a new approach to technology,
equally important is a shift away from the
mindset that views this process as primarily
about driving down operating costs to the
lowest possible level.
Instead, owners might take a broader view
and consider how with the application of these
technologies, their assets and fleet operations
could be configured to generate the highest
potential earnings over a lifecycle and best
retain their value, while at the same time
promoting safety and preservation of the
environment.
ABS believes that addressing operational
performance holistically in terms of efficiency,
safety, hull and machinery condition and
environmental requirements, will award

ABS Jan de Kat.

owners with a competitive advantage from a


compliance perspective and will support
operational and long term business planning
strategies.
ABS provides integrated tools and services
to shipowners and operators through its
dedicated Asset Performance Management
Group. This specialist resource includes three
teams: Operational and Environmental
Performance, Asset Integrity Management and
Nautical Systems fleet management solutions.
The group enables the key elements of
regulatory compliance and asset optimisation
to be tied closely together, from daily
operational considerations to lifecycle
decisions and software capable of generating
data that feed back into vessel design and on
board operations.
From the perspective of the asset owner,
compliance is a fact of life, but it is one that
should be seen in a broader perspective. The
challenge of optimising asset performance is a
choice between seeking simple, short-term
cost savings or taking a lifecycle approach that
maximises operating potential, reduces
maintenance costs and may have a positive
bearing on asset value.
TO
*This article was written by Jan de Kat, ABS
Director of Energy Efficiency and Vessel
Performance, Operational and Environmental
Performance.

TANKEROperator August/September 2015

TECHNOLOGY - CLASSIFICATION SOCIETIES

RS rules
recommended as
compliant with IMO
In July 2015, Russian Maritime Register of Shipping (RS) received the final report of
Goal-Based Standards (GBS) verification audit, which contained the recommendation to
IMO to confirm the compliance of its rules with IMOs GBS.
ccording to the SOLAS Chapter
II-1 Regulation 3-10, oil tankers
and bulk carriers above 150 m in
length and contracted for
construction on or after 1st July, 2016 are to
be designed and constructed in accordance
with the so-called IMO GBS so that they are
safe and environmentally friendly during their

service life subject to proper operation and


maintenance.
GBS are a set of functional requirements for
each stage of the ships life cycle starting from
its design through to safe recycling.
The national requirements of IMO member
states for the design and construction of these
ship types, as well as the requirements of

recognised organisations (ROs) by those states


are subject to audit by IMO for compliance
with the functional requirements of GBS.
To verify compliance with the requirements,
IMO established international audit teams and
the interested parties were asked to submit sets
of required documents to the IMO secretariat
for audit. This work had to be completed in

RS has classed a number of Ice Class tankers for Arctic operations.

August/September 2015

TANKEROperator

31

TECHNOLOGY - CLASSIFICATION SOCIETIES


advance so that IMO could confirm
compliance of national requirements and
classification societies rules in May 2016,
during the regular session of the IMO
Maritime Safety Committee (MSC).
In 2012-2013,RS continuously updated and
improved its documents to bring them in line
with the functional requirements of the GBS in
order to subsequently submit them to IMO for
audit before the end of 2013.
As a result, the RS application for GBS
verification audit was sent to the IMO
secretariat on 18th December, 2013 together
with required supporting letter from the
Ministry of Transport of the Russian
Federation.
The satisfactory outcome of the GBS
verification audit carried out in AprilDecember, 2014 was as a result of major
efforts by RS experts aiming at bringing its
rules in compliance with GBS and its
submission to IMO and also a result of
efficient rules development procedures within
RS, which allowed it to maintain the quality of
rules up-to-date, the class society claimed.
Ice class expertise
RS has classed a number of vessels intended
to operate in the high north environment.

There have been hundreds of ice class vessels


and designated icebreakers designed according
to the RS rules, with hull structure adequately
strengthened and propulsion power increased.
A classification system of specific ice
grades was set up to reflect/distinguish the ice
conditions to be encountered in various
operational areas, based on regular R&D
taking into account practical experience gained
through several decades.
Nowadays, as long as some new oil and gas
fields and terminals are under development in
the ice-infested areas, the customers will
obviously demand ice class for a variety of
vessels, from OSVs to large oil and gas
tankers.
However, since 1960s most of the vessels
operating in heavy ice have been of medium
size. The construction of larger commercial
vessels for Arctic operations commenced some
10 years ago with a series of 70,000 dwt Arc6
shuttle tankers, which resulted in the need for
updating the ice class requirements in order to
cope with new design challenges surfacing.
Six new 42,000 dwt Arctic shuttle tankers
are currently under construction at Samsung
for a Russian client. The vessels will be built
to comply with both IACS CSR and ice class
Arc7 structural requirements, so their design

should be reasonably balanced in many key


aspects, RS said.
A series of Arc7 LNGCs to be delivered by
Daewoo under Yamal LNG project will soon
be the largest vessels in the Russian Arctic
service. Through joint Daewoo/RS
engineering efforts, a number of unique design
solutions were customised for the giant vessels
to safely operate in ice up to 2 m thick.
Another remarkable project is about to go
ahead, an ice class Arc4 FSRU ordered from
Hyundai. This unit is intended to operate
primarily in the Kaliningrad region in the
eastern Baltic Sea.
We are delighted to be involved in such
ambitious projects and look forward to cooperating with all the parties concerned by
effectively contributing the ice-tech expert
knowledge to development of the new
innovative designs, said Sergey Kaganov, RS
project support and marketing. Growing
demand for large ice class vessels is now a
fact, and considering Arctic shipping is of
great potential, we have to thoroughly learn
from the current projects in order to get the
sound regulatory framework and practice
ready for new endeavours in the future icegoing tankers.
TO

C%#"#
### #
# # # # %# # # # # !#

%####$### #"##

 #  #### 

8, Dvortsovaya Naberezhnaya,
St. Petersburg, Russian Federatioon,
191186
tel: +7 812 380 2072
fax: +7 812 314 1087
pobox@rs-class.org
www.rs-class.org

$##"#%

32

TANKEROperator  August/September 2015

TECHNOLOGY - CLASSIFICATION SOCIETIES

A major flag states


take on class
The degree and frequency of ship inspections has never been more onerous
in the industry than it is today.*
his helps to keep the shipping
industry safe, and it is the job of
good ship registries to help ensure
that ships are not detained for
reasons, which are not beyond their control.
Shipping relies heavily on the technical
competence and experience of the
classification societies, and on the strength and
global outreach of IACS. But todays shipping
industry, with its exhaustive regulatory
requirements, requires more than class alone
can provide.
Modern ship safety and efficiency should be
a joint effort between class and other quality
marine service providers, including ship
registries.
Class has proven itself essential to efficient
regulatory supervision in the shipping
industry. It has helped improve construction
standards and to introduce a degree of
standardisation into regulatory enforcement.
But class cannot do it all. Moreover, class
should be more discriminating when it comes
to accepting delegations of authority, just as
those conferring delegation should look first to
their own resources or those of other proven
service providers.
There are other reasons why shipping
cannot live by class alone, not least the shift in
regulatory development towards areas
involving the human element. Examples
include the ISM code, ISPS and, most
recently, MLC. For all its strengths and
qualities, class is not always best equipped to
focus on what might be termed the soft
elements of the industry. Look at oily water
separator violations, for example. And it is a
fact that many class societies refuse to work
with crew complaint and crew welfare matters.
Flag states, for their part, have to improve
their technical competence and accept their
responsibilities rather than simply authorise
complete delegation of authority. The worst
cases of abdication of authority in recent years
include some large flags whose
administrations have effectively relinquished
responsibility for regulatory implementation,

August/September 2015

oversight and enforcement.


Recognised
organisations
It is also pertinent to ask how
many commercially focused island
and micro-state flags would still
be in operation today if they could
no longer appoint class as
Recognised Organisations (ROs).
Equally, it is fair to ask why so
many ROs accept appointments
from unqualified states.
Liberia recognises the
fundamental importance of class
to a safe and efficient shipping
industry. As such, it supports all
measures to ensure that class itself
is operating at the highest levels
possible. Indeed, part of Liberias
mandatory criteria for
authorisation of a classification
society is full membership of
IACS. But Liberia is not content
to leave the entire job of
regulatory oversight to the
LISCRs Scott Bergeron.
classification societies.
The most recent mandatory MLC
Annual Report issued by the
Liberian Registry confirms that, for the
But Liberia is also committed to working
reporting period of 20th August, 2013 to 31st
with others who display a like-minded
December, 2013, Liberias own inspectors
approach and philosophy towards the safety of
carried out 54% of all MLC inspections on
life and property at sea. Where appropriate, it
board Liberian-flag ships. Moreover, a total of
will delegate authority to ROs it knows and
85% of these inspections resulted in no
trusts.
deficiencies being found.
Liberia sees itself as a link in a chain of
regulatory oversight designed to keep shipping
safe. The other important link in that chain is
Proactive approach
class, and it is important that neither snaps,
The Liberian Registry adopts a proactive
whether through neglect, inefficiency,
approach to the service which it provides to
indifference or mere failure to spread the TO
the record numbers of ships which fly the
load evenly.
Liberian flag. This involves using its own
highly trained staff to carry out audits,
inspections and certification wherever
*This article was based on comments by Scott
possible. Additionally, it has pioneered the use
Bergeron, CEO, Liberian International Ship &
of harmonised audits to make the process less
Corporate Registry (LISCR), the US-based
disruptive for owners and managers.
manager of the Liberian Registry.

TANKEROperator

33

TECHNOLOGY - CLASSIFICATION SOCIETIES

LRs tanker success


Lloyds Register (LR) has been awarded class of several tankers recently.
he three Arc7 shuttle tankers being
built at Samsung for Sovcomflot
(see page 32) will be the first
newbuilds to comply with LRs
provisional rules for the classification of sternfirst ice class ships.
The 42,000 dwt tankers, which are dual
classed to LR and the Russian Register, will
be purpose-built for year-round shuttle
operations exporting oil from the
Novoportovskoye oilfield in northern Russia
via Ob Bay in Russias Polar area.
Their design is notable for having a wide
beam, shallow draught configuration with
twin-podded propulsion units and a bowloading system for offshore loading in Ob
Bays shallow waters.
Compliance with the requirements of the
Russian Northern Sea Route Administration
(NSRA) will specify that the vessels will have
sufficient ice strength for the likely
environmental conditions the ships will
encounter in year-round operations in Ob Bay
and the Kara and Barents seas.
Compliance with LRs provisional rules
requirements will ensure the ships reflect best
practice for stern-first operation in ice

including, for example,


appropriate extents of stern
shoulder ice strengthening, best
practices for navigation bridge
watch layout and visibility and
consistent interpretations of
international regulations when
operating stern-first in ice.
Delivery of the first shuttle
tanker is due in the third
quarter of 2016.

The LR/RS classed 42,000 dwt DAT shuttle tanker.

NORDEN fleet
In addition, LR recently announced that it had
won the contract to class NORDENs entire
fleet of drybulk carrier and tankers.
Thirty-two ships will be transferred to LR
Class, as part of the agreement that covers 57
ships.
The 32 ships covered by the agreement will
be transfer of class (ToC) vessels and will
include nine new ships, which will transfer to
LR upon their delivery. Four ships are
currently classed by LR and 16 externally
managed ships will also be transferred to LR
as part of this agreement.
The ToC of NORDENs fleet started with

the entry of Handysize product tanker Nord


Mermaid.
LRs Copenhagen based marine client
manager, Flemming Kjeldsen, commented:
Our good working relationship with the client
and the in-house capabilities we have here in
Copenhagen to consistently support them was
essential in securing the contract. Classing
ships like bulkers and tankers and providing
day-in, day-out service delivery is our key
activity. We are here to help make sure
NORDEN ships can trade as safely and
efficiently as possible, taking every care to
support them in their business goals.
TO

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Domain knowledge and persistence has been the main ingredient of
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34

TANKEROperator  August/September 2015

TECHNOLOGY - CLASSIFICATION SOCIETIES

Vetting compliance
support offered
Successful SIRE vetting performance is seen as a ticket to trade for tanker operators.*
ogether with a few owner clients,
DNV GL has developed vetting
compliance services for both
newbuilds and ships in operation.
The objective of this initiative is to use
DNV GLs extensive experience of verification
services and compliance support for class and
statutory matters, including PSC compliance,
and to offer the same support to ensure
compliance with charterers requirements.
The tanker industry has seen a significant
improvement in compliance performance over
the past few decades and the introduction of
the charterers vetting schemes has been an
important contributing factor.
But there are also concerns that severe
accidents, such as explosions, groundings and
collisions, still happen despite positive
developments in the industry with a decreasing
trend in vetting observations. Hence, a clean
vetting inspection report is not always enough
to be accepted by the charterer if the
companys general performance is not
satisfactory.
Other concerns have been raised related to
the increased inspection burden on the crew,
due to the numerous inspections that a tanker
is subject to such as port state, terminal,
vetting and class inspections, and that more
inspections will not improve quality or safety.
The development of our vetting compliance
services is an initiative intended not only to
help our customers stay out of trouble but also
to support continuous improvements so as to
ensure compliant day-to-day operations.

Newbuilding support service


The OCIMFs SIRE VIQ contains defined,
specific, prescriptive requirements for
equipment and arrangements, such as the
cargo manifold layout and arrangements,
towing and mooring arrangements, etc, going
beyond the technical requirements in class
rules and regulatory requirements. In addition,
other charterers also have their specialties.
ExxonMobils MESQAC is the other main
standard for tankers.
Vetting inspections have revealed that a
number of ships delivered from yards have
August/September 2015

inconsistencies compared with these


requirements, which may result in
observations, technical hold and costly
modifications a nightmare scenario for most
tanker operators.
Providing a third-party verification service
to ensure compliance is one of DNV GLs
main activities and therefore, the class society
has launched a service addressing compliance
with the SIRE VIQ and ExxonMobils
MESQAC standards.
The service includes drawing examination
where experienced approval engineers check
the drawings for compliance. The next step is
verification at the shipyard by DNV GLs
project manager to ensure that the ship is built
according to the specific requirements in these
standards. Upon completion, a statement of
compliance is issued defining the scope of the
verification and enclosing a checklist
specifying.
This will reduce the risk of observations,
due to non-compliance with regard to the
equipment and arrangement, relieve an
owners newbuilding team of a significant job
and give credible documentation of
compliance when securing the first cargo. This
service is being offered to ships built to
DNV GL class.
Ships in operation
A vetting compliance project will normally
start with high-level discussions with top
management to identify key focus areas where
an improved compliance level is being sought.
DNV GL will bring into the discussion an
analysis of the fleets class and statutory
performance based on its surveyors and
auditors findings, together with the fleets
PSC performance during the past few years.
Through dialogue, DNV GL and its
customers will compare notes and agree on
where the challenges are in the customers
shipboard operations (technical equipment
failure, operational issues, record keeping,
etc). It will be agreed which ships need
focusing upon and a dialogue with the
nominated surveyor/auditor will be
established.

TANKEROperator

DNV GL will deliver this service from


Shanghai, Singapore, Fujairah, Rotterdam and
Houston in the early phase of implementation.
Further stations may be included later.
The duration of the visit will be agreednormally one day- and the specially trained
DNV GL surveyor will perform an
audit/inspection where the scope of work is
the SIRE VIQ 6, but with a focus on the areas
of this extensive checklist already agreed.
On board session will normally be a
combination of inspection, training and
coaching in how to ensure compliance in dayto-day operations and how to demonstrate
competent handling of shipboard equipment
and focus on continuous improvements rather
than a pre-vetting clean-up exercise.
Key to its success is to not only identify
observations but also explore what needs to be
done to prevent these from happening again.
In this, the surveyors/auditors broad
experience from different ships can come in
useful for providing input regarding best
practice.
This can be done together with the
companys own shipboard audit or in addition
to the audit. DNV GL recommended that this
is undertaken well in advance of a planned
vetting inspection so as to enable the
implementation of corrective and preventive
measures.
After the visit on board, the surveyor will
prepare an extensive report on the
observations with reference to relevant SIRE
VIQ codes, but equally important there will be
a de-briefing telephone conference where the
on board observations will be shared with the
company.
The findings gathered in the service will be
entered into a centralised database. The plan is
to provide benchmarking and performance
analysis for vetting-related findings.
TO
*This article was taken from DNV GLs
magazine Tanker Update published earlier
this year. It was written by Hkon Skaret,
Senior Principal Engineer; Erik Istad,
Engineer and Richard Tao, Discipline Leader
Technical Operation.
35

TECHNOLOGY - EFFICIENCY - FUELS & LUBES

Keeping the ships


operational
ExxonMobil has expanded its range of specialist fuels for use within ECAs with the
introduction of Premium Advanced Fuel Marine ECA 200 (AFME 200).
remium AFME 200 has joined
ExxonMobil Premium HDME 50
as part of a new category of marine
fuel that has emerged as a result of
the 2015 ECA sulphur limit of 0.1%. These
low sulphur fuels help engineers safely and
efficiently operate their main and auxiliary
engines and boilers, the company claimed.
ExxonMobils Premium AFME 200 is an
advanced fuel oil formulated using a
proprietary refining process that removes
sulphur, metals and other contaminants. Its
viscosity is comparable to heavy fuel oils
(HFO) enabling similar storage and handling
practices for both fuels on board vessels.
Both fuels require preheating, therefore
reducing the risk of thermal shock to engine
components during switch overs to comply
with the ECA sulphur cap. Thermal shock may
result in fuel pump seizures and engine shut
downs and has the potential to occur when
switching from heated HFO to marine gas oil
(MGO) at ambient temperatures.
Although MGO was readily available for
operators to comply with the 2015 sulphur cap,
new fuels made available in the market by
leading oil and gas companies have raised the
bar in terms of both safety and performance
benefits, said Rob Drysdale, global field
engineering and logistics manager,
ExxonMobil Marine Fuels and Lubricants.
ExxonMobil Premium AFME 200 and other
new ECA fuels have a higher viscosity and
flashpoint than MGO, helping shipping
companies to undertake their day-to-day
operations in a safe and efficient way.
Extensive fuel compatibility and stability
tests were undertaken during the development
of Premium AFME 200, including the ISO
10307-2 sediment test. The results indicated
that the new fuel oil is fully compatible with
Premium HDME 50 and MGO.
Premium AFME 200 is available from the
UK port of Southampton via barge delivery as
it is produced from Exxons refinery at
Fawley. ExxonMobil now supplies ECA
compliant fuel at more than 40 ports
worldwide.

36

Throughout 2015, ExxonMobil will continue


to expand its ECA compliant fuels offer, the
company said.
Launched before Premium AFME 200,
ExxonMobils Premium Heavy Distillate
Marine ECA 50 (HDME 50) offers
performance benefits associated with both
marine gas oil (MGO) and heavy fuel oil
(HFO).
The fuel contains a low sulphur content
associated with MGO, and has the higher
flashpoint and lower volatility properties
typically found in HFO.
The higher viscosity of Premium HDME 50
makes storage and handling the fuel on board
similar to HFO.
Prior to its introduction, the new fuel was
tested with a leading vessel operator and was
proved to be suitable for use in main and
auxiliary engines and marine boilers.
Following the successful field trials, the new
fuel received No Objection Letters from
MAN Diesel & Turbo (MDT) for use in MAN
B&W 2-stroke and MAN B&W Holeby
gensets, provided MDTs specific engine type
guidelines are followed.
Premium HDME 50 is already used by a
range of vessel operators. It is available from
Antwerp via barge delivery for vessels
operating in the Amsterdam, Rotterdam and
Antwerp (ARA) range.
Guidelines
ExxonMobil claimed to be the first fuel
provider to market specialist ECA compliant
fuels and has issued guidelines to owners and
operators on fuel stability and compatibility.
Fuel Stability - Bulk fuel stored for long
periods can become unstable, causing the
formation of sludge that can block filters and
pipes and leave tanks with a residue, which
cannot be pumped out.
Fuel Compatibility - Industry best practice
is to avoid mixing fuels from different sources,
as arbitrary comingling can lead to a loss of
stability in the resultant blend, triggering
sludge formation.
There is a range of hot filtration tests for

stability to check if a fuel will deposit sludge.


These sediment evaluations are available from
reputable fuel testing laboratories.
For compatibility, a good on board method
to measure marine fuels, including residual
and distillate fuels, is the ASTM D4740 spot
test. A drop of the sample blend is put on a test
paper and heated to 100 deg C. After one hour
the paper is checked and the resultant spot
rated against a compatibility chart, which
provides a visual reference of the likelihood of
sludge format.
One of the test fuels must be a residual fuel
otherwise there will be negligible asphaltenes
to precipitate. Spot tests do not work for
comingled distillates due to their low
asphaltene content. In addition, compatibility
tests can produce false positives for distillate
blends, due to pigment separation. For the
same reason, spot tests are not applicable for
distillate tests with Premium HDME 50.
There are a number of precautionary
measures that can be taken to guard against
fuel compatibility issues. These include:
- Avoid mixing bunker fuels from different
sources wherever possible.
- Store fuels separately until compatibility
testing has been carried out.
- Do not mix straight-run fuel oil [the
product of atmospheric or vacuum distillation]
with a cracked [additionally processed] one
if not possible keep the ratio to a minimum.
- Steer clear of mixing fuels with greatly
dissimilar densities.
- Where possible choose fuels with similar
viscosities and densities.
- Do not mix a fuel oil with a marine diesel
oil or marine gas oil.
However, the only way to fully ensure
against fuel compatibility issues is to carry out
a compatibility test either on board during
bunkering or via an independent laboratory,
ExxonMobil warned.
At a presentation at Nor-Shipping,
ExxonMobils Iain White said that MGO was
the the choice for owners and operators by
default. Gasoil systems were already in use,
but this type of fuel can only be pumped from

TANKEROperator  August/September 2015

TECHNOLOGY - EFFICIENCY - FUELS & LUBES

Thordon Bearings director Craig Carter.

a barge at up to 150 tonnes per hour.


He reiterated that there were challenges
when switching fuels as this is a new task for
marine engineers. Viscosity and volatility are
areas of safety to be considered when using
ECA fuels.
Large steam powered boilers on tankers
have different pumping systems, but with the
new category of ECA fuels available, they can
be operated more safely.
He also warned that fuel stored for any
length of time can become unstable leading to
an asphaltene build up, blocking filters and
pumps.
White explained that newer refineries have a
much better conversion (cracking) range than
their older counterparts. He warned that
refinery coking and cracking upgrades should
start now, as they could take five years to
come on stream.
There are several questions still to be
answered including refinery supply chain
problems, market reaction, the uptake of
abatement technology and alternative fuels,
plus the threat of increased CO2 emissions
from refineries, he concluded.
Luboil changes
Late last year, Shell introduced a new lubeoil Alexia S3 - for use when switching fuel to
enter an ECA.
Shell Alexia S3 is a BN 25, SAE 50
viscosity grade oil specifically tailored for
low-speed, 2-stroke diesel engines entering
ECAs. It is formulated for use in engines
burning low sulphur fuels, including  Marine gas oil and distillate fuels.
 Fuel oil with up to 0.5% sulphur.
It has been validated for use by major engine
manufacturers, including MAN Diesel &
August/September 2015

Turbo and Wrtsil.


In December, the new lubeoil was made
available in more than 300 ports spanning 22
countries.
If an engineer does not switch the lubeoil in
line with the fuel when entering an ECA,
cylinder deposits can accumulate in a few
days, the company explained. Prior to entering
an ECA, an engineer on board needs to decide
which cylinder oil to use, when to change the
oil and what feed rate to use.
Shell recommends that an owner/operator
makes an analysis after sampling the oil as
there could be a huge amount of data available
to generate much needed feedback.
The company has also developed a special
grade for use in the US, due to the
Environmental Protection Agencys rule on
environmentally acceptable lubricants (EAL)the General Vessel Permit (VGP).
Shell warned that any vessel changing over
to an EAL to get a VGP will have to be
drydocked to change the sealing system.
Seawater lubrication
One company offering a part solution to the
VGP problem by way of seawater lubricated
propeller shaft bearing
systems is Thordon
Bearings.
In June, the company
announced that it had
received an order for 20
seawater-lubricated
COMPAC propeller
shaft bearing systems
from Chinese
shipyards, marking the
Canadian companys
most significant order
for commercial vessels,
thus far.
Craig Carter, director
of marketing &
customer service,
Thordon Bearings, said:
The magnitude of this
order is indicative of a
changing market.
Traditionally,
COMPACs core
market has been cruise
and naval ships, with
over 2,000 references
across these sectors.
But whether its a
consequence of more
stringent environment
legislation, the higher
cost of new EALs or

TANKEROperator

increasing corporate social responsibility, we


are seeing a marked increase in the number of
quotes for seawater lubricated systems from
owners of merchant and offshore tonnage.
The orders are for a variety of vessel types
and include a 12,800 dwt bitumen tanker
contracted at Qingshan.
We are seeing more and more Chinese
shipyards specifying the COMAPAC system in
their standard designs now. Unlike the oillubricated variety, a seawater-lubricated
propeller shaft does not require an aft seal
making it quicker and less complicated to
install, said Carter.
On 19th December, 2018, the VGP is to be
reviewed and Thordon Bearings is
recommending seawater lubricated systems,
which are also ideal for vessels operating in
Polar waters, due to impending legislation.
Between 2009 and 2011, all five of
ConocoPhillips 141,000 dwt Polar class
tankers were retrofitted with Thordons
seawater lubricated systems during their
respective drydockings.
At present, some 96% of the worlds fleet
use oil lubricated seals, resulting in accidental
oil leakages, the company pointed out.
TO

37

TECHNOLOGY - EFFICIENCY - FUELS & LUBES

Planning change - the


advantages
Jan Christensen, Bomin Group regional manager, Northwest Europe, argues why it is
vital that owners do not get lulled into a false sense of security, and should start planning
for the global 0.5% ECA to seize a competitive advantage.
ith the news that the IMO has
brought forward its review of
fuel availability to meet the
0.5% global sulphur cap, it is
hoped that by the autumn 2016 or spring 2017
shipping will have the clarity it needs in
determining the make up of the marine fuel
supply chain beyond 2020.
Despite this, whether the cap arrives in five
or 10 years, change is inevitable. Those that
embrace change as an opportunity to seize a
competitive edge will be best positioned for
the coming decades. This is not just applicable
to shipowners and operators, but also to
bunkering companies, who face a potentially
defining moment in the industrys evolution.
Like every other market connected with
shipping, the last few years have been difficult.

38

Economic instability, and a lack of liquidity


proved to be a catalyst for consolidation for
small regional and mid-market players, and the
implosion of OW Bunker in 2014 served only
to highlight the ethical concerns that have
hamstrung the industry for many years.
The additional scrutiny that this brought
upon the industry has been compounded by the
demands of key shipping stakeholders - from
owners and operators, to charterers - for
improvements in operational and
environmental efficiencies and sustainability.
Almost inevitably, this pressure has filtered
through to a forensic attention on fuel, those
that supply it, and the way that we conduct
business in general. The introduction of
stringent ECA regulations is one of many
areas, where the role of the fuel supplier has

Bomins Jan Christensen.

TANKEROperator  August/September 2015

TECHNOLOGY - EFFICIENCY - FUELS & LUBES


been brought sharply into focus.
In terms of ECA compliance, as the
intermediary between shipowners and refiners,
fuel suppliers have the ability to provide their
clients with the information and services
needed via their in depth understanding of the
fuel supply chain to find an appropriate
compliance solution.
With concerns over whether there will be
enough distillates to meet the 0.5% global
limit in 2020 or 2025, it is the bunker suppliers
who should be engaging with their customers
to help anticipate customer demand. Until this
is known, the refiners will not provide the
significant investment required to develop their
facilities to create more products.
At Bomin Group, we are seeing a
real spectrum of demand. Due to the
continued low fuel prices, many of our
customers are happy to use distillates,
and a smaller number have invested in
scrubbers. There are also those that are
looking at clean fuels, such as LNG,
and we believe that it is realistic to
assume that 10% of owners of the
whole Baltic Sea fleet will probably
decide to shift to the use of LNG
within the next five to seven years.
With the current distillate prices the
same, or lower than heavy fuel oil,
many owners and operators are yet to
feel the pressure from the 0.1% ECAs,
and there is a danger that this is
leading to a lack of medium-to-long
term thinking. The reality is that many
are understandably enjoying the
temporary increase in profitability;
however, it is a focus that could leave
them vulnerable in years to come.
Despite the favourable prices, it is
vital that shipowners and operators are
not lulled into a false sense of security.
This is a critical message that must be
delivered by fuel suppliers. It will
require shipowners and operators to
work closely with their fuel suppliers
to truly understand demand and to
develop specific procurement strategies
that are right for the businesses and
trading routes, as well as ensuring
optimum operational efficiencies
throughout the bunkering process to
ensure quality and quantity.
We believe that there is a real
opportunity for fuel suppliers to prove
their value and their worth by building
better relationships with customers,
understanding their businesses and
tending to their fuel supply challenges
with bespoke solutions. For Bomin this
August/September 2015

means proactively investing in and growing


our physical operations, which was
demonstrated most recently with our expansion
in Copenhagen.
Enhancing our physical network, and
managing the end-to-end bunker supply
process from order through to final delivery,
brings us closer to our customers, and gives us
superior scope to provide them with greater
efficiencies, and ensure the quality and
quantity of products. This investment in our
our offering enables us to drive as much value
as possible into our customers businesses, and
show that the competitive advantage we offer
them goes beyond just the price of our
product.

While much of the industry is taking respite


in the current low fuel prices after a number of
challenging years, we know that whether its
2020 or 2025 were approaching a major
industry milestone and it will be prudent to
learn from the recent past. There will be a
range of compliance solutions available and
suppliers should assume their share of
responsibility for driving positive change.
Whether its ensuring that customers have
the highest quality distillates, or HFO for
scrubber use, or developing a safe, efficient
and robust LNG supply infrastructure,
suppliers have a real opportunity to
demonstrate their value and ensure that their
TO
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39

TECHNOLOGY - SHIP DESIGN

AVEVA introduces
new design tools
Vessel hull designers can now save time and money in the early design phase by
transferring 3D models from AVEVA Marine to DNV GLs Sesam GeniE.
his new functionality, initiated by
AVEVA in response to market
demand, allows users to transfer
AVEVA hull models into Sesam
GeniE for strength assessment and code check,
according to DNV GL rules.
With the new harmonised Common
Structural Rules (CSR-H) for tankers and bulk
carriers entering into force, significantly more
finite element analysis is required for hull
approval by classification societies, said Are
Fllesdal Tjnn, DNV GL - Software
managing director. In todays market, with
extra focus on efficiency improvement and cost
reduction, the collaboration between DNV GL
and AVEVA enables designers and yards
around the world to meet this criteria.
This breakthrough is based on the
development of AVEVA Marines capabilities,
where a highly detailed 3D design model can
be transferred into a finite element method
(FEM) 3D model, including the connectivity of
structural components and the finite element
mesh needed to calculate structural behaviour.
With the new and powerful advanced mesh
editing features in Sesam GeniE, it is then
possible to quickly add loads and to refine the
mesh, enabling accurate and effective structural
analysis.

For ship structures, all loads and boundary


conditions according to DNV GL rules and
IACS CSR can be applied to the GeniE model.
This makes it possible to easily document code
compliance, including yield screening,
buckling check and reporting, the companies
said.
The integration of the two software systems
is part of an ongoing collaboration between
AVEVA and DNV GL, which will include
future integration for prescriptive rules
between AVEVA Marine and DNV GLs
Nauticus Hull software. This will significantly
increase efficiency and productivity for the
approval of ship hulls according to the new
DNV GL rules, the class society claimed.

Design content app


In addition, AVEVA is soon to introduce E3D
Insight, which is a Windows 8.1 app that
streamlines the reviewing and approval of
vessels design content.
Senior decision makers will be able to check
and approve designs outside of the office, via a
tablet, or even on a large touch screen or
desktop computer.It can be controlled from a
central server.
AVEVA E3D Insight will enable users to
visualise, inspect, comment upon and approve
designs wherever
they are in the world
in a seamless and
timely manner, the
company said.
Live connection to
the design database
will result in
decisions being made
against the most
updated information.
The ability to collate
and keep track of
design decisions and
the final outcome
supports compliance,
in ensuring the
transparency and
AVEVA 3D Insight will enable other interested parties to access 3D
traceability of the

designs.

40

decision process, AVEVA claimed.


For example, in a shipyard, design teams and
owners representatives will be to take a tablet
type device with them to any department in the
yard to check the content against the original
design concept. This streamlines the
production activity, Gauthier Stonestreet,
AVEVAs marine product strategy manager told
Tanker Operator.
Basically the app will offer four main
features Visualise
 Access designs from anywhere, at any
time.
 Access many projects.
 Search across any designs.
 Visualise in clear 3D format.
Inspect
 Use gestures to navigate the model.
 Call up attributes for objects in the design.
 Measure distances within the model.
Comment
 Collaborate with colleagues.
 Comment on the design in threaded
discussions.
Enter comments on the design model.
Approve
 Review the teams design.
 Approve the design from anywhere, at any
time.
Another use envisaged is to aid a class
surveyor who will be able to examine a design
on site or elsewhere, including while at his or
her home or while travelling.
A feedback workshop in a 3D field can be
organised by those involved in the design, at
the design concept through to the appraisal
stage. Sister vessels design compartments can
also be held on the app for discussion, thus
given the stakeholders a continuous knowledge
feed when needed if dealing with a vessel
series.
Not only shipyard design teams and owners
reps and their teams will benefit from the app
but also independent design companies who
will also be able to link up to their clients.
Stonestreet said that the app was due to go
live around October this year.
TO

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TECHNOLOGY - BALLAST WATER

Regrowth what,
why and is it a
problem?
If we assume that a commercial vessel carries 60,000 tonnes of ballast water, there could
be in excess of 7 bill tonnes of ballast water being shipped around
the world at any one time.
ecognition of ballast water as the
carrier of potential invasive
organisms is the basis of the
IMOs Ballast Water Treatment
convention, in development since 2004. The
convention is to be imminently ratified and
more than 50 suppliers are accredited, willing
and able to supply the necessary equipment.
The standards against which ballast water
quality is to be measured have been
established, endorsed and adopted by various
national and regional authorities. For example,
the US Coast Guard will require ships to:
 Clean ballast tanks to remove sediments
which must be disposed of in accordance
with local, state, and federal regulations.
 Discharge only the minimal amount of
ballast water essential for vessel operations
while in United States waters.
 Rinse anchors and chains when an anchor
is retrieved.
 Remove fouling from the hull, piping and
tanks on a regular basis.
 Maintain a Ballast Water Management Plan
that includes procedures for fouling and
sediment removal as well as ballast water
management there is no requirement for
the plan to be approved.
 Submit a report form 24 hours before
arrival by email to BIC@BallastReport.org
The warm, dark, enclosed environment inside a
ballast tank is an ideal bacterial/algal incubator.
Because even newly manufactured ballast
tanks are far from sterile, the standard also
limits the discharge of three, indicator microbe
species: i) Toxigenic Vibrio cholera (producing fewer
than 1 cfu (colony forming unit) per 100
millilitre),
ii) Escherichia coli (producing fewer than 250
cfu per 100 millilitre)
iii) intestinal nterococci, producing fewer than
100 cfu per 100 millilitre.

42

Most commercial BWM treatments start by


physically removing, usually by filtration, solid
particles larger than 50 m followed by either
a physical or a chemical treatment. These are
summarised by Lloyds Register at
(www.lr.org/bwm).
In a research project, Peter Stehouwer of the
Royal Netherlands Institute for the Sea,
compared six different BWMS and
demonstrated that although micro-organism
populations are heavily depleted by BWMS, no
system discharges sterile water. Since BWMS
removes the organisms that prey on and control
algae and bacteria, copepods and
phytoplankton for example, once these are
removed any small but living residual microbes
can regrow unhindered, feeding on the organic
remains of dead predators.
Furthermore, it was shown that regrowth
usually results in far larger microbe
populations in discharged ballast water than
originally existed. These high concentrations
permit the emergence of totally new strains of
organism as they exploit the same genetic
exchange mechanisms that result in antibiotic
resistance. The research also indicated that
different BWMS have different impacts on
different microbes.
UV treatment reduces microbial populations
over time with the minimum population being
reached after five to eight days then regrowth
starts reaching a higher steady state
concentration after 12 to 15 days in the tank.
This implies that, particularly over long
voyages, ballast water should be UV treated at
the beginning and on discharge if shipowners
are to be sure the discharge has minimal
bacterial concentrations.
Stehouwer showed that chemical treatments
kill microbes effectively but have the serious
drawback of using active chemicals, which
then need neutralisation before discharge.
Treatments can be difficult unless ships carry

technicians capable of the calculations required


to accurately compute the quantity of
neutralising chemical required.
Alternatively, owners may select a
continuous in-tank, in-voyage BWMS option
taking advantage of three different treatment
strategies, which start once the vessel has
completed loading and ballasting and left the
terminal. These systems reduce the bacterial
load over time delivering clean ballast water at
voyage end with minimal levels of active
micro-organisms. With no active ingredients
and able to operate in any type of water, these
combined physical systems offer significant
benefits to those facing long voyages.
Should we worry about these remaining
viable organisms? As early as the 19th Century,
Charles Darwin realised that for an invasive
organism to successfully establish itself, there
needed to be 1) a sufficiently large number of
organisms introduced - propagule size - and 2)
a number of discrete introductions propagule
number. The resulting combination the
propagule pressure explains why some
introduced species persist while others do not.
The IMO standard accepts that there will be
some live organisms left after treatment and
the standard has been set at a level designed to
minimise any resultant propagule pressure. If
the IMOs ambition of preventing the
successful introduction of new species is to be
achieved in practice, small propagules
(minimal numbers of live organisms) should be
discharged.
Operators of large tankers, carrying many
thousands of tonnes of ballast water over
extended periods are discovering that invoyage, in-tank systems like that offered by
Coldharbour Marine, prove best value both for
the company and for the environment.
TO
*This article was written by Andrew Marshall,
Coldharbour Marine CEO.

TANKEROperator  August/September 2015

TECHNOLOGY - PROFILE - DSM DYNEEMA

Synthetic fibre makes


rope more durable
There are several tanker fleets using mooring ropes made with our product, said
Edwin Grootendorst, Global Business Director at DSM Dyneema.
e was talking of what the
company claims is the worlds
strongest fibre - the patented
Dyneema SK78 fibre - which is
used in mooring and towing ropes.
This fibre has been developed down the
years to offer the same size and strength as 40
mm steel wire. However, the difference comes
with the weight, which is claimed to be just
1/7th of wire rope and that it is more durable
in the most extreme conditions.
Today, ropes need more than strength to
withstand extreme and regular abrasion
through fairleads, winches, capstans or H-bits.
Ropes made with Dyneema SK78 last longer
than other synthetic ropes in demanding
environments. Durability delivers value, the
company claimed.
By using rope made with the fibre, mooring
operations can be completed much faster, as
just one crew member can handle the rope.
The fibre has low elongation at break, which
means that the rope stores less energy before
breaking.This reduces the risk of backlash
compared to conventional fibre ropes, which
have a higher stretch, Grootendorst explained.
Grootendorst said that the market for large
vessels, such as crude carriers, LNGCs and
shuttle tanker was quite strong. The market
was very strong a couple of years ago but
there are still newbuildings for 2016-2017
deliveries onward, he explained.
The large ship towage companies are also
using rope containing SK78 fibre, he said, as
the fibre has greater safety benefits with a tug
having a large bollard pull.
He explained that DSM Dyneema sells the
fibre to the rope manufacturers who then sell
ropes made of the fibre to the shipyards and
owners. As well as newbuildings, there is also
a market for spare ropes kept on board and for
replacement rope in case of breakage. The
company maintains close co-operation with all
the rope suppliers that use its fibre.
The fibre is manufactured at plants in the
Netherlands and the US. However, the marine
market is primarily handled from Holland.

August/September 2015

R&D makes up a very large percentage of


the companys activities. A large development
laboratory is on site, which can test the fibres
and ropes in simulated conditions in order to
help understand the challenges of rope
applications, including abrasion, fatigue, etc.
Research programme
One research programme involves a multi-year
project to determine the exact behaviour of
ropes made with Dyneema fibres under long
term static loads. This has enabled the
company to develop a creep design tool by
which the company and its customers can
predict creep rate and elongations, and
estimate creep lifetime. Ropes made with
SK78 offer one of the highest creep lifetimes
seen in commercial marine high modulus
polyethylene fibres (HMPE) ropes, the
company said.
All synthetic fibres are sensitive to longterm static loads and will elongate with time to
a varying degree. This phenomenon is known
as creep, and is a process in which the long
molecular chains slide along each other, the
company explained.
Ever since the commercialisation of DSM
Dyneemas HMPE fibre in the 1990s, the
company said that it had recognised the
importance of creep in customer applications.
For applications that are subject to high
loads for a long term, for instance permanent
mooring of deepsea oil production platforms,
the company has developed an HMPE fibre
called DM20 that has a much higher creep
resistance compared to SK78.
However, most applications involving ropes
made with HMPE are not subject to constant
loads, nor are they used at high temperatures.
It is rare for both temperature and load to be
factors at the same time.
Vessel mooring ropes are subjected to cyclic
loading due to the wave motions. SK78 has
higher resistance to cyclic loading fatigue
compared to other high performance fibres.
This resilience combined with higher creep
lifetime, makes ropes with SK78 the ideal

TANKEROperator

DSM Dyneemas Edwin Grootendorst.

solution for vessel mooring application,


Grootendorst claimed.
The high strength, low density, and good
mechanical and chemical properties mean
HMPE is used in a wide variety of
applications. Ropes made with HMPE offer a
number of advantages that make it a superior
alternative for steel wire rope and ropes made
from other synthetic materials for a wide range
of applications.
HMPEs advantages include:
 Lower weight (ease of handling).
 Smaller diameter (easier storage and
transportation).
 Higher stiffness.
 Excellent long-term properties (tension and
bending fatigue, UV and chemical
resistance).
Quality certificates are issued and discussions
are regularly held with the relevant bodies,
working groups and others, while the company
works under the watchful eye of DNV GL.
TO

43

TECHNOLOGY - COATINGS

Manufacturers
realign with new
products and ideas
While most coatings manufacturers are claiming a reduction in fuel consumption/
emissions, some have introduced new products while others have come up
with novel marketing ideas.
n this article, Tanker Operator takes a
look at four companys innovations in
strict alphabetical order. AkzoNobels
carbon credits methodology for the
shipping industry has won the Best Offsetting
Project award in the 2015 Voluntary Carbon
Market Rankings.
Based on nominations from leading
stakeholders within the voluntary carbon
markets, this award recognises the efforts of

44

AkzoNobel and development partners The


FReMCo Group and The Gold Standard
Foundation.
Claimed to be the first of its kind within the
shipping industry, the carbon credits
methodology is based on shipowners
converting existing vessels from a biocidal
antifouling system to a premium, biocide-free
advanced hull coating such as AkzoNobels
patented Intersleek, part of the companys

International range of marine coatings.


The company said that Intersleek coatings
have been proved to increase a vessels
operating efficiency and reduce CO2 and
associated emissions by an average of 9%.
Carbon credits are awarded based on the
reduction in emissions, which can then be sold
on the carbon markets.
This award is recognition of the hard work
and commitment from everyone involved in

TANKEROperator  August/September 2015

TECHNOLOGY - COATINGS
developing the carbon credits methodology,
said Trevor Solomon, Intersleek business
manager for AkzoNobels Marine Coatings
business. We see this as adding further
credibility to the initiative, which has seen a
significant uptake in shipowners enrolling in
the last year.
Oscar Wezenbeek, Managing Director of
AkzoNobels Marine Coatings business, added:
We are delighted that our efforts to develop
the industrys first carbon credits methodology
have been recognised. This is another
significant step in helping and incentivising
shipowners to invest in clean technology and
working towards reducing emissions and
improving the sustainability of the shipping
industry.
Available funds
In the first round of claims, two shipowners
are due to be awarded a combined total of
nearly $500,000 for 17 vessels this year. And
based on the 100 eligible vessels already
converted from a biocidal coating to the
Intersleek range, there is a further estimated
$2.8 mill available for shipowners and
operators, the coatings concern said.

August/September 2015

After delivering record sales and net profit in


2014, Hempel has launched a new brand
identity to mark its drive to offer complete
coating solutions for customers.
Hempels new logo, known as the Helix,
symbolises the dynamic layers and motion of
mixing coatings, while also being indicative of
the global, connected company Hempel has
become.
As the business expands and absorbs new
acquisitions and extends into new markets, the
importance of one brand around the world
becomes even more significant, the company
said.
Today, Hempel is present in over 80
countries and delivers solutions across many
industries, including marine.
Hempel Group President & CEO Pierre-Yves
Jullien cites growing demand from customers
for more integrated coating solutions as a major
trigger behind the work. "The last 10 years
have represented a transformation period and
the nature of our business has changed
dramatically.
The world in which we work has become
more connected, and so we have pushed to
consistently create value for customers by

TANKEROperator

Intersleeks business manager Trevor


Solomon.

aligning our solutions and expertise across


industries and regions. This is crucial if we are
to continue to secure trust and loyalty, and
drive greater efficiencies in the way we work.
Malte Eggers, Hempels head of
communications, said:Our new brand reflects
the confident, contemporary and diverse nature
of our business, which is no longer defined
solely by our marine heritage. Marine, yacht
and container coatings continue to be core
areas of our business. But we have grown

45

TECHNOLOGY - COATINGS
dramatically within the protective industries
while also building an impressive profile and
presence in decorative coatings. Today, Hempel
offers the world a comprehensive portfolio of
trusted coating solutions."
The Hempel Foundation, the companys
owner, will also adopt the new brand identity.
This alignment will ensure absolute consistency
across all of Hempels commercial, social and
charitable initiatives, the company said.
The new identity was launched as part of
Hempels 100-year anniversary celebrations
held at the Copenhagen Opera House on 4th
July.
Norwegian coatings concern Jotun has
welcomed the ISOs decision to circulate ISO
19030.
The 17 country standardisation bodies
represented on ISOs Marine Environment
Protection Sub-committee (ISO-TC8-SC2)
recently voted in favour of circulating ISO
19030 parts 1 and 2 as draft international
standards.
Performance guarantee update
In anticipation of final approval of the
standard expected next year, Jotun will update
its performance guarantees offered as a part of
its hull performance solutions (HPS) so that
they are fully compliant with the standard.
According to Geir Axel Oftedahl, Jotuns
business development director, hull
performance solutions, the purpose of
establishing these standards is to prescribe
practical methods for measuring changes in
ship-specific hull and propeller performance
and to define performance indicators for hull
and propeller maintenance, repair and retrofit
activities.
Poor hull and propeller performance is
currently estimated to account for around 10%
of world fleets energy costs and corresponding
greenhouse gas emissions, he explained. By
creating a standard, the industry will have
access to proven ways to measure speed loss,
leading to better decisions about hull coatings
and propellers. We believe improving hull and
propeller performance can reduce the world
fleets fuel cost by as much as $30 bill per year
and achieve an estimated 0.3% reduction in
man-made greenhouse gas emissions.
The vote represents a milestone for the
MEPC Sub-Committee. Oftedahl, who
managed the project on behalf of ISO, and
Svend Syland (senior advisor, Nordic Energy
Research), who has served as the convener of
the ISO working group, expressed their
gratitude to the other members of the subcommittee.
The 53 experts representing shipowners,
46

shipbuilders, class societies, paint


manufacturers, performance monitoring
companies and various research institutions
worked for more than two years to reach a
consensus on the drafts.
Oftedahl expected the standard will
accelerate industry-wide best practices and will
offer much needed transparency for buyers and
sellers of a wide range of fuel saving
technologies and services. The standard will
benefit responsible suppliers, owners and the
environment, he said.
Jotuns HPS concept combines premium
marine coatings (SeaQuantum X200), priority
technical service and on board monitoring tools
to measure hull performance over time,
providing an analytical basis for the companys
money-back guarantee that covers the entire
period between drydockings.
HPS was developed partly to provide the
industry with real time data on long-term hull
performance, which allows owners to make
more informed decisions about marine coatings
and ship operations, and helps them distinguish
between competing coating suppliers and
quantify the impact of antifouling on fuel
usage.
New range introduced
PPG Protective and Marine Coatings has
introduced SIGMA Sailadvance, a new range
of antifoulings suitable for a variety of
operating conditions.
The range currently comprises four coatings,
including Sailadvance RX and GX, two
completely new formulations based on PPGs
patented technologies. These antifoulings are
based on self-release binder technology using
controlled surface active polymers (CSPs),
which provide a self-lubrication and selfrelease mechanism to the coating.
CSP acts on the coating/water interface as a
lubricant, which supports laminar flow, thereby
lowering the hull friction when the ship is
sailing and delivering fuel savings averaging
5%. In addition, CSPs create a slippery
surface that increases the resistance to fouling
when the ship is not sailing and, thus extending
potential idle days.
Tom Molenda, PPGs global marine director,
said:The Sailadvance range has been
developed in the knowledge that to meet
todays market needs, a coating must cover a
wide range of vessel types and operational
conditions.
Owners want to reduce energy consumption
and lower their total costs regardless of how
their ships are operating. The RX and GX
range meet this need whether the ship is
sailing, idle or slow steaming, regardless of

Jotuns Geir Axel Oftedahl.

being applied during new construction or


during drydocking,he said.
The range has been designed for all vessel
types and operating speeds and is particularly
effective for slow-steaming, due to the
engineered CSP composition. The antifoulings
also benefit from high-volume solids (up to
59%) for efficient application and evolve in a
pattern of linear polishing, with consistent
biocide release for predictable performance for
up to 90 months.
Also joining the range are PPGs patented
Syladvance 700 and 800 products, which have
been rebranded Sailadvance MX and DX.
These coatings provide the same high
performance and fuel saving potential on
vessels under the widest operating profiles.
SIGMA SAILADVANCE RX

Low friction, self-lubricating, linear


self-polishing antifouling based on
hydrolysable polymer binder composition.

Technology based on CSPs.

Idle time tolerance - average 25 days.

Vessel operating rate - 50-90%.


SIGMA SAILADVANCE GX

Low friction, self-lubricating, linear


self-polishing high performance antifouling
based on hydrolysable binder composition.

Technology based on CSPs.

Idle time tolerance - average 30 days.

Vessel operating rate - 40-80%.


SIGMA SAILADVANCE MX

Low friction, linear self-polishing


antifouling based on organic hydrolysable
polymer binder.

Idle time tolerance - average 25 days.

Vessel operating rate - 50-70%.


SIGMA SAILADVANCE DX

Ultra low friction, linear selfpolishing antifouling based on organic


hydrolysable polymer binder, designed for
broad operational ranges.

Idle time tolerance - average 30 days.

Vessel operating rate - 40-90%.


TO

TANKEROperator  August/September 2015

TECHNOLOGY - TANK SERVICING

Update on new statutory requirements


On 1st January, 2016, new
requirements for inert gas,
stability instruments and
overboard discharge monitoring
equipment (ODME) will enter into
force.
DNV GL has published an article, which is
a recap of the new requirements and the
implications that they may have.
In recent years, there have been several
incidents involving internal tank explosions on
small oil and chemical tankers, many of which
occurred in connection with gas-freeing and
tank cleaning operations.
DNV GL said that the main reason for these
incidents was believed to be the lack of an
inert atmosphere in the cargo tank, as these
tankers are currently exempt from using inert
gas.
As a consequence, it was decided to lower
the SOLAS inert gas limit from 20,000 dwt to
8,000 dwt. In addition, chemical tankers
current exemption from inerting tanks of less
than 3,000 cu m capacity will be scrapped for
new ships. This will only apply to new tankers
constructed on or after 1st January, 2016.
In tank inspections, a practice quite
common prior to loading many chemicals,
logistical challenges and port congestion might
result, as new chemical tankers above 8,000
dwt irrespective of their tank size will now
have to purge their tanks alongside after the
tank inspection when taking on low flash
products.
To avoid this, the revised SOLAS rules
allows the application of inert gas to be

postponed until after loading but before the


commencement of unloading. However,
because of the risk of generating static
electricity by using exhaust gas, only nitrogen
is acceptable for this purpose, DNV GL
warned.
This further implies that a nitrogen inert gas
plant should be installed on board, which
should be born in mind in newbuilding
specifications.
As a consequence, amendments have been
made to the FSS and IBC Codes. In the FSS
Code, basically the oxygen limit for inert gas
supplied to the tanks has been reduced from
8% to 5%. The amendments made to the IBC
Code include operational changes in the gas
freeing and handling of inhibited products
where the inhibitor is oxygen dependent and
the products must at the same time be carried
in an inert atmosphere.
The revised gas freeing requirements are
now more in line with those required for oil
tankers under SOLAS, ie, that the tanks
requiring inert gas should, after tank cleaning,
be purged down to a certain limit of
flammable vapours before gas freeing with
fresh air may take place.
Products protected by an oxygen-dependent
inhibitor are currently not to be carried in an
inert atmosphere, in other words such products
are today carried in tanks of less than 3,000 cu
m on ships above 20,000 dwt when the
flashpoint is less than 60 deg C, the only
exemption being for styrene monomer, which
may be carried under inert conditions, subject
to special provisions.

Tanker owners of operators of vessels of below 20,000 dwt will have new rules to deal
with next year.

August/September 2015

TANKEROperator

In order to be able to ship these products on


new ships above 8,000 dwt, the use of inert
gas has been allowed provided it is not applied
until discharging commences and the oxygen
level is kept above that stated to be the
minimum level on the inhibitor certificate.
Stability
In addition, new requirements for on board
stability instruments will be applicable to all
tankers effective from 1st January, 2016.
MARPOL Annex I, the IBC/BCH Code and
the IGC Code have all been amended,
requiring tankers to be fitted with a stability
instrument capable of handling both intact and
damage stability. The new requirement is
retroactive and applies to both new and
existing ships as follows:
Ships constructed on or after 1st January,
2016, at delivery.
Ships constructed before 1st January, 2016,
at the first renewal survey on or after 1st
January, 2016 but no later than 1st January,
2021.
An instrument already installed, capable of
verifying both intact and damage stability,
may be accepted by the flag administration.
There are some options for waiving the
requirement, for example for ships operating
only in a limited number of loading
conditions.
ODME
Biofuel blends consist of a biofuel part, which
is considered to be a chemical subject to
MARPOL Annex II and the IBC Code and a
petroleum part, which is subject to MARPOL
Annex I. An example is a mixture of ethanol
and gasoline.
For biofuel blends, a cut-off limit of 75%
has been agreed, determining the regime to
which the blend is subject MARPOL Annex
I or Annex II, ie, if the petroleum part is 75%
or more the blend is considered to be an oil
governed by MARPOL Annex I.
Up to now, biofuel blends have been
allowed to be shipped under MARPOL Annex
I without the ODME being type-approved for
the specific blend. This has been considered
okay as long as the resulting slop has been
delivered ashore to a reception facility.
However, as of 1st January, 2016, this will
no longer be an option, as from this date, in
order to continue to ship a biofuel blend under
Annex I, a non-compliant ODME has to be
upgraded or replaced and the blend in question
should be included in the new type approval
certificate, DNV GL concluded.
TO
47

TECHNOLOGY - TANK SERVICING

Portable gas detectors calibrated on board


The risk of asphyxiation and death
is still a major cause for concern
for ship crew members working in
confined and enclosed spaces on
board vessels, due to the build-up
of hazardous and toxic gases.
Shipping companies have a duty of care to
their employees to provide a safe work
environment and an obligation to ensure that
crew are safe and can carry out their tasks
safely.
This was reflected in IMO circular
MSC.1/Circ.1485 released in January, 2015,
concerning the carriage and use of portable gas
detectors.
MSC.1/Circ.1485 calls for voluntary early
implementation by member states of SOLAS
regulation XI-1/7 ahead of the mandate of 1st
July, 2016 after resolution MSC.380(94) was
adopted at MSC 94.
The new regulation states that every ship to
which Chapter I applies shall carry an
appropriate portable atmosphere testing
instrument or instruments. As a minimum,
these shall be capable of measuring
concentrations of oxygen, flammable gases or
vapours, hydrogen sulphide and carbon
monoxide prior to entry into enclosed spaces.
Instruments carried under other requirements
may satisfy this regulation. Suitable means
shall be provided for the calibration of all such
instruments.
MSC 93 recalled that MSC 92 had adopted,
by resolutionMSC.350(92), SOLAS regulation

48

III/19 Emergency Training and drills


requiring that each enclosed space entry and
rescue drill shall include checking and use of
instruments for measuring the atmosphere in
enclosed spaces.
At this session, the committee agreed that
paragraph 3.6.2.3 of SOLAS regulation III/19
does not introduce carriage requirements for
atmosphere testing instruments for enclosed
spaces and recognised the need to implement
the draft new SOLAS regulation XI-1/7 early,
in order to expedite the carriage of portable
atmosphere testing instruments for enclosed
spaces.
In response to the IMOs guidance regarding
early implementation of SOLAS regulation XI1/7 on atmosphere testing instrument for
enclosed spaces, UK-based marine equipment
supplier Martek Marine has developed a
compliant solution for shipping companies with
the patented A-B-C (Always be Calibrating)
self-certification calibration station.
Full requirements
The A-B-C system has been specifically
developed to meet the full requirements of all
current legislation for portable gas detectors
and meets all IMO and oil major requirements,
the company claimed.
It enables the crew to calibrate their own
portable gas detectors on board rather than
having to continually send the equipment
ashore for calibrating or getting contractors on
board to do the work.

This means a huge saving for shipping


companies and no down time. It also removes
the need to arrange calibration gases to be sent
to ships every three to six months, as two years
supply of gas is included at the time with the
appropriate shelf life.
Martek said that this system enables failsafe, accurate and repeatable certified
calibration on board, automatically generating
tamper-proof serial number specific calibration
certificates. Marteks A-B-C system consists of
the patented Marine 4 - a specialist marine
quad gas detector, an A-B-C self-certification
calibration station and calibration gas with a
unique two-year shelf life.
The Marine 4 has an integral sampling pump
for flexibility for pre-entry into deep tanks or
holds and immediate compliance with the new
regulations.
Steve Coulson, Martek Marine director,
commented, The prevalence of seafarer deaths
entering enclosed spaces is still a major cause
for concern. With the ABC solution, ships
crew can eliminate the risk before entering
confined spaces.
The IMO has led the way here and set a
good example for member states to adopt.
Safety of seafarers should be of paramount
importance especially when these needless loss
of lives could be easily avoided simply by
having portable gas detectors on board and a
means to calibrate them quickly, effectively and
with full approval of all vested parties, he
stressed.
TO

TANKEROperator  August/September 2015

TANKEROperator
KEY PLAYERS IN THE
TANKER INDUSTRY
will be profiled giving their
views on current legislation,
recommendations and trends.
These will include chief
executives from all sectors of
the industry from equipment
manufacturers to the top
shipowners

COMMERCIAL TANKER
OPERATIONS
including shipbroking, legal matters
and financing

INFORMATION
about meeting oil major
requirements
(TMSA / vetting)

A STRONG FOCUS
on shipbuilding and repair

IN DEPTH INFORMATION
on the latest newbuilds, sale and
purchase, freight rates and
derivatives markets, using industry
known commentators

DEVELOPMENTS in management/
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Photo credit Hempel

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