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Bulk Carrier Leaders25 June 2020 • 17:00-17:45 BST
Part ofMaritime Leaders Webinar Week22-26 June 2020
Webinar Q&A summary:WT | Will Tooth, MSISB | Scott Bergeron,
Oldendorff CarriersPN | Capt Panagiotis Nikiteas, Maran Dry
Management IncJP | Jay K Pillai, Pacific Basin Shipping /
INTERCARGO
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Based on Jay's comments: do we need an NGO "RightPort"?
SB | In any analysis, shipowners ultimately comply with new
requirements, but coastal states and shore facilities do not. Look
at the lack of oil waste
reception facilities or the need for 60,000 ships to treat
ballast water, which could be more easily and better treated by
4000 ports. Intertanko and
Intercargo have had limited success vetting port facilities.
More work needs to be done and "RightPort" is an interesting
idea.
PN | Indeed ports need to be vetted and more stringent
procedures to apply. However it will take very long time.
JP | Very much. However, Who will bell the cat (guard the
guardians)? Rightship has been formed by BIG Charterers.
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Crew Changes:- Good to see that a number of ports are now
allowing crew changes, however still a number of hard restriction
in place which are hard to
work around with vessels on spot charters. More assistance from
Flag and National authorties is needed.
SB | The IMO is too weak within the UN system to influence
change; likewise most countries' maritime administrations are
similarly too weak to influence
this issue within their governments. This is the unfortunate
reality of shipping. It is a tragedy that can only be solved by
political will. Economic
consequences are probably the only way to generate the necessary
poltical will.
PN | Only States can actually force changes. Petitions will
remain petitions. Only when there will be financial impact on trade
things will change.
JP | National authorities and IATA/ICAO. Flag States are silent
spectators, unfortunately.
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A dry version of TMSA is what is required.
SB | That is essentially what is intended by Intercargo and
RightShip's efforts. But two different standards will not be
helpful and greater stakeholder
involvement is necessary to oversee a unified standard.
PN | A Self Assessment duly implemented and not on paper is
required. Format and contents will need to address the known
risks.
JP | Do we really?
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How do you see the ways the services providers at the ports may
be in the same level, in line with owners expectations or
needs?
SB | Accountability at all levels is necessary.
PN | Vessel is always the convenient target. Deviations from
pilots, tugs, linesmen, foremen, dock workers, service men go often
unoticed.
JP | Fragmented and there are no international standards for
them to comply. Even ISPS Code - onus is on ships to comply and
ships get detained if
Stowaways board. Ship Owners and crew are always on the
receiving end.
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It would be interesteting to hear about their expectations and
perceptions about Brazil today and for the near future?
SB | Brazil continues to face a variety of significant
challenges, but their leading place in dry bulk will remain and in
the longer-view these challenges will be
overcome.
JP | They are resilient people. They will tide over the
crisis.
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Are the Bulk Carriers owners and operators looking to IT vendors
to develop operations and cost optimising solutions or relying on
in-house IT to look
after their needs? Are costs the main concern?
SB | IT solutions are necessary, but never as easy as envisioned
by the programers nor the users. There are more IT facilitated
solutions under development
than ever before and the larger companies typically are the
early movers. Ideally, once technology is proven, its cost comes
down and it becomes available
to smaller companies as well.
PN | Depends on the size o fthe company and its needs. Generic
off the shelve solutions are often not suitable.
JP | Effective IT solutions are severely lacking. A lot of
piecemeal solutions are offered which doesn't handshake
(communicate) with each other.
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In ECSA for grains specially have been seeing higher freights as
from July 2020. Any comments on your visions?
SB | We remain optimistic for 2H 2020, but Covid-19 remains as a
wildcard.
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Totally different topic, but maybe interesting, visiting the
vessel, join forces with a couple of Managers and use their
networks to visit and inspect
vessels?
PN | Do not see this happening.
JP | Remote inspections with crew are being done. Crew are on
the forefront and create a culture within the company and empower
them as owners. In
Pacific Basin Shipping, crew are empowered as owners "22 Crew,
22 Owners".
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The bulk industry now has two benchmarks ..one from Intercargo
and the other from Rightship. Is this going to create a level
playing field or just more
confusion?
SB | Two benchmarks will cause confusion. There is a general
willingness to develop a single solution, but this is easier said
than done.
PN | Only one tool will finally be in operation. Discussions and
evaluation of different proposals is beneficial.
JP | We don't have yet have two benchmarks, though this is being
reviewed. Indeed, we shouldn't have two benchmarks.
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In the present pandemic, instead of relying on the governments,
what are the ship managers / owners doing for their seafarers ?
SB | This is the number one challenge for shipowners and any and
every step is being taken. Much more work needs to be done and we
need to support of
principle government leaders and the airlines.
JP | Where crew change is permitted, crew are relieved even by
arranging charter flights to countries which permit them. Crew on
shore get an adavnce if
they are recruited direct by the company and their documents are
with the company.
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Does the panel honestly feel that these new standards would help
safety of the marine industry? Or is it another tool to just to
drive the commercial
aspects?
SB | I believe it is undeniable that vetting and a
self-assessment standard has improved many aspects of the tanker
industry. The risks have changed and
ship operations are never safe enough, but a similar approach
for dry bulk is likely to achieve desired improvements.
PN | TMSA has raised the bar. Although parts of it are
bureaucratic, the fact is the safety and environmental records have
improved. A tool for bulkers, truly
implemented, will assist. Commercial aspects are equally
important. Charterers need re-assurance.
JP | It is to generate revenue model for Rightship and to drive
the commercial aspects by some BIG charterers and trading houses.
Unless Rightship/IMO
target terminals and pilots, tugs, approach channels etc, it
will be a paper exercise and whip to beat the ow
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This is a market question for Will Tooth of MSI. I would like to
ask with regards to the iron ore market, why is it dependent on the
swing of Brazil when
the output capacity of Australia is near maximum? Would really
appreciate the clarification. Thanks!
WT | Since Australia is near capacity, Brazil was the main
possibility for growth in iron ore market in 2020. The disruptions
there have taken a toll on the
whole seaborne iron ore market.
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Unlike Liners, bulk carrier trade routes are not fixed and hence
pose a bigger challenge with respect to crew change planning. What
is the response
action plan from companies such as Oldendorff/Pacific Basin who
are primarily based on bulk carrier trade?
SB | We are organising crew changes whenever and wherever
possible, including significant voyage deviation as well as
whatever requirements (eg.
individual Covid-19 testing and monitoring and company paid for
quarantining periods required before joining and after offsigning.)
Despite this, flights are
being cancelled and country policies are being changed literally
while crew are already enroute. It is untenable.
JP | We change crew wherever we can at whatever cost and by
deviating 1-2 days from the normal route. Work with crew to keep
them calm. We need
Governments support..
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In the present volatile markets, are bulkl carrier
operators/owners sharing databases to facilitate freight sharing to
sustain the business? What is the
level at which bulk trade charterers and operators partnering on
cargoes for maintaining business?
SB | Not to our knowledge. Sounds like a conflict with
competition laws.
PN | That would be an oligopoly and cannot materialise.
JP | Never happened and I don't think this is likely.
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Why are the bulker market more volatile compared to tankers?
SB | Larger diversity of commodities, economic fundamentals are
much more broad, few large countries with significant demands can
quickly influence the
whole market with a sudden change.
PN | I believe it is equally volatile.
JP | Supply -demand imbalance. Owners have short memory and
order ships and drive the freight down.
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Some of the industry analysts were quite optimisitic when China
announced the easing of their lockdown restriction, is China alone
enough to get dry
bulk carrier at better levels with optimistic returns?
Considering China covers the lion share of the dry bulk
market...
SB | China significantly impacts the dry bulk industry.
JP | China could tip the scales in the dry bulk sector.
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Why is it that information sharing is restricted on a commercial
aspect but the industry is willing to share information when it
concerns the self
assessment initiatives? If data is the key, does any of the
panelist think information sharing could be a catalyst to improving
the dry bulk market?
SB | Commercial data sharing could result in illegal price
fixing. Safety, environmental protection and crew welfare process
and procedure sharing hopefully
results in highly desireable "fixing" of our challenges in these
areas.
PN | Like in any business sectors, commercial information is
sensitive and valuable.
JP | Self assessment is for safety and quality. Not for
commercial info annd revenue. However, public companies post their
results for anyone to see. Data
sharing of commercial information ? - I don't see it. How would
it improve dry bulk market? if scrapping.
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