MAY 2012 www.tankeroperator.comTANKEROperatorYour next
generation Voyager has touched downThe new Voyager 4 on-board chart
management systemwith a host of additional new features: TGT E-Data
Digital loose leaf updates ENC display Seamanship library Shipping
Guides Weather routeing (SPOS) Touch screen technology Admiralty
information overlay Route planning Regs4ships AtoBviaC Piracy
dataAberdeen+44 1224 [email protected]+90 216 493
[email protected]+44 1268
[email protected]+30 210
[email protected]+65 6866
[email protected]+1 604 294
[email protected] Total Navigation SolutionsStand 4.205
Posidonia 2012www.thomasgunn.com | +44 (0)1224 595045 |
[email protected] w l ae ho r au s in ku O o t e l b a l i a vva
a s yys a wwap x eex l a c o l d n a p ld l r o wwo e h t d n u o3
n I . d e h c t a m n ue r d n a e g d e l w ov o r p o t y t i l i
b a r u . s rrs e b m e m os i e s i t rr e pt o p s - e h t - n os
tts r o p 0 5 3e s n o p s eel a c o l e d i v May 2012
TANKEROperator 01ContentsMarketsDownwardassetpricesNews
FocusEIIiciencyactionplanGreece Report Shippingtosurvivechaos
Posidonia-openIorbusinessDenmark Report Stablepolicycontinues
Poolingresources Maersktacklesmarket Nordicsnewstart
TORMhangsinthere HempelVLCCsuccess Shipsupplygoesglobal
APIsnewsensorPiracy IMOsignsIiveagreements Armedguardsontheagenda
ValueoIvetting58Front cover Thomas Gunn is to showcase its latest
upgrade to its Voyager offering - Voyager 4 - at this years
Posidonia. A host of newfeatures have been added to the on board
chart management system, which takes the form of a digital update
service. Voyagereven has its own website.Your next generation
Voyagerhas touched downThe new Voyager 4 on-board chart management
systemwith a host of additional new features: TGT E-Data Digital
loose leaf updates ENC display Seamanship library Shipping Guides
Weather routeing (SPOS) Touch screen technology Admiralty
information overlay Route planning Regs4ships AtoBviaC Piracy
dataAberdeen+44 1224 [email protected]+90 216 493
[email protected]+44 1268
[email protected]+30 210
[email protected]+65 6866
[email protected]+1 604 294
[email protected] Total NavigationSolutionsStand4.205
Posidonia 2012www.thomasgunn.com | +44 (0)1224 595045 |
[email protected] 4542195163Case Study
WisbyTankersandKVHTechnology45
ECDISSeachangeFurunosnewoIIeringTransasandAWTGuidelinespublishedOperating
EfficiencyMeasuringaVLCCstrimManouevring Systems MANVLCCsuccess
BeckerIitsVLCCHull ConditioningIceloadmonitoringTank
ServicesCargoandTankcareConference
DiscussingthehumanelementTANKEROperator
May 2012 2COMMENTGreece - a ticking time bomb, or damp
squib?TANKEROperatorVol 11 No
6TankerOperatorMagazineLtd2ndFloor,8BalticStreetEastLondonEC1Y0UP,UKwww.tankeroperator.comPUBLISHER/EVENTS/SUBSCRIPTIONSKarlJeIIeryTel:44(0)2081505292jeIIerythedigitalship.comEDITORIanCochranTel:44(0)2081505295cochrantankeroperator.comADVERTISING
SALESMelissaSkinnerOnlyMediaLtdTel:44(0)2089503323mskinnertankeroperator.comSUBSCRIPTION1year(8issues)195/US$320/2202years(16issues)300/US$493/336Subscriptionhotline:Tel:44(0)2070173405Fax:44(0)2072519179Email:jeIIerythedigitalship.comPRODUCTIONWaiCheungTel:44(0)2081505291waitankeroperator.comPrintedbyPRINTIMUSUl.Bernardynska141-902BytomPolandAlthough
this article was written before the resultsof the forthcoming Greek
election were known,already headlines in the European press
readsomething like Greece on the brink of
collapse.TheseheadlineswerewrittenduringthemiddleoIMayatatimewheneconomistshadvirtuallydecidedthatGreecewasgoingbacktothedrachma,soonerratherthanlater.AndwehavethelittlematteroIPosidonialooming.Theexhibitionorganisershavebeenputtingoutstatementssayingthatitisbusinessasusualandtheycouldwellberight.However,itmightbeprudentIorvisitorstotakewadsoIcash,asatthetimeoIwritingtherewasarunonthelocalbanks,asGreekstriedtomovetheirsavingsaheadoIaperceivedarmageddon.ThenextattempttoIormagovernmenttakesplaceon17thJuneandbeinginthecentreoIaGreekcityintherunuptoanelectionisneverpleasant,astheresidueoIteargashangsoverthecentralsquares,sotrytostayclearoItheseareas.WhatoItheGreekshippingcompaniesthemselves,thestrengthoIwhichtriggeredtheIirstPosidoniainthe1970s?InAprilsTankerOperatorAthensconIerence,MOAMSMartinShawusedthewordresilience.WeallliketothinkoIourselvesasresilientbywayoIbeingabletoIaceeverythingthatliIethrowsatus.ShawexplainedthatresiliencemeanthavingpeoplethatcanthinkandwhodonotjustIollowtherules.IsthiswhytheoldGreekshipownershadareputationoIstayingonejumpaheadoIthemarket?Theirmantrawassellhigh,buylowwhichseemedtowork.Atthemomentbuylowseemstobetheattractiveoption,asthosestillwithcashintheirpocketscantakeadvantageoImoderndistressedtonnageandtheshipbuildersdesiretoIilltheirslotsevenataloss.WhilechattingtooneoItheyoungerbreedoIentrepreneurialownersrecently,IaskedwhatwouldhappeniItheGreeksdecidedtogobacktothedrachma.Hisreplymighthavebeenabittongueincheek,buthesaid;WerealloutoIhere!Contingency
planMostshipownersintheworldhaveaPlanB,iIthingsgowrongintheircountriesoIdomicile,althoughIewwouldadmitit.Forexample,IvisitedSouthAIricaduringApartheidintheearly1980sandinterviewedtheheadoISaImarine,themajorSouthAIricancontaineranddrybulkcompany.IaskedhimoIItherecordwhatwouldhappeniIthecountrywentupinIlames.HerepliedthatSaImarinealreadyhadaSwisssubsidiaryandthiswouldbeusedtorunthecompany.Inotherwords,healreadyhadacontingencyplan.Muchlateron,theSouthAIrican-basedcompanybecameadivisionoIAntwerp-basedlinerandbulkoperatorCMB,whichwasthengobbledupbyMaersk.However,thiswasnothingtodowithApartheid,butjustshippingsritualroundoIrationalisation.MostEuropeanshippingcompaniesalreadyhavetocontendwiththeupsanddownsoItheeuroexchangerateagainsttheUSdollar,butthedrachma?Itdoesntbearthinkingabout.WheredoesthisleavetheCypriots?TheshippingpeoplewhowouldbebadlyhitiIthecountryreturnedtothedrachmaarethoseworkingoutoIowners,oroperators,oIIicesinGreece,whoearntheirsalariesandpaytheirbills,taxesetcinthelocalcurrencycurrentlyeuroswhiletheircompaniesearningsare,moreoItenthannot,inUSdollars.GreekseaIarersandtopcompanymanagementwouldbelargelyimmunetoanycurrencychange,astheyareusuallypaidoIIshoreandkeeptheirbankaccountsinthemostadvantageousoIplaces.AsmentionedinthePosidoniaIeatureinthisissue,thegreaterAthensareaisexpectingamuchneeded50millwindIallIromtheexhibitorsandvisitors,whowillpackthehotels,bars,restaurantsandmeetingplaces,nottomentiongivingthelocaltaxidriversacashbonanza.I,Iorone,certainlyintendtohelp.ThisyearsPosidoniatakesplaceatarathersmartconventionandexhibitioncentreattachedtothenewairport.TherewererumoursthatitwouldeventuallymovebacktoPiraeus,whereitwashousedbeIoremovingtothesiteoItheoldairportnearGlyIada.ItstartedoutattheZappeionGardens,nearthecentreoIAthens,almost40yearsago.Althoughabitramshackled,theprevioussiteontheoldairportwasidealIorthosewishingtojustlazearoundaseasideswimmingpoolinalavishhotelatsayGlyIada,Vouliagmeni,orVoulaandwaitIortheworldtocometothem.However,thenewairportiswellservedbypublictransport,taxisetcandprovidingtherearenostrikes,itshouldprovetobeapopularvenue.Theorganiserssaythattheyareexpecting17,000visitorsIromalmost90countriestoattendthisyearsjamboreeyourEditorbeingjustone.LetushopethatthelocalsdontkilltheGoldenGoosebeIoreweallgetthere.AsIsaidatthebeginning,thisarticlewaspennedaroundthemiddleoIMay,sothereisadistinctthreatoIitbeingovertakenbyevents.Wewillsee.HopeIully,IwillreturnIromGreecetoreportonanothersuccessIulexhibitionwithlittle,orno,distractionsalongtheway.TOINDUSTRY
- MARKETSTANKEROperator
May 2012
4Tankerassetprices-adecliningtrendSincetheAutumnoI2008,assetpriceshavebouncedlikeaskippingpebblestoneonthesurIaceoIthewateroIabluewateredbeachatthesunsetoIasunnysummerdaywhereeachsuccessivebouncegetssmallerandsmallerandwherethetrajectoryhasIinallysuccumbedtothelawoIgravity,changingIromnearhorizontaltoalmostvertical.Whilethedeclineintankerassetpriceshasbeenuniversal,itseemsthateachtankersegmenthasbeenreactinginitsownwaytomarketIorces.ThereisaverylimitednumberoItransactionsIormoderntankersduringthelastyear,especiallyIorexpensivetonnagelikeVLCCsandonemayquestionwhetherthereisIunctionalmarketatall,atleastasIarasassetpricesareconcerned.Ontheotherhand,Ioroldertonnage,aIterthe2008pricesIorIirstgenerationdouble-hulltankerscollapsedtoalmostsalvagepricelevels;itseemsnowthatdouble-hulltankersbuiltinthemidandlate1990shaveseenanadditionaldeteriorationinpricingthatalmostbringstheirvaluetosalvagelevelsaswell.Forinstance,theAIramaxBunga
KelanaSatu
(105,000dwt,HHI,1997)wasrecentlyreportedassoldIorabout$9mill-thegrossscrapvalueoIthevesselisabout$6mill-whileherdesignliIeis25years,implyingthat$3millcapitalatrisk(investmentinexcessoIsalvagevalue)buysabout10yearsoIcommercialliIeoIawelldesignedandmaintainedAIramax.FromaninvestmentpointoIview,therisk-to-rewardproIileseemsworthinvestigatingIurther.IntheIollowinggraphs,wehavelookedintotheassetpricesIornewbuildingvessels,Iive-year,10-yearand15-yearoldtankers,asthesepriceshavedevelopedIromJanuary2008untilnow.WehavelookedintotheMR2andLR1productstankers,andalsoatAIramax,SuezmaxandVLCCmarkets.ThedatahasmostlybeenderivedIromClarksonResearchServicesandcertaintimeserieshavebeenamendedbyKaratzasMarineAdvisorstoreIlectnon-normalisedmarketconditions.Inreviewingthesegraphs,onehastokeepinmindthatthedeIinitionoIatypeoIvessel(IorinstanceMR2)hasadjustedovertime(mostlyintermsoIdeadweightandcargocarryingcapacityamongothermodiIications)andthattheproductionoIatimeseriesoIdatacanbesubjectiveintimesoIlimitedinputandmarketdatapoints.InGraph1,newbuildingpricesIortankershavedroppedbyaround35IorallassetclassesinthetankersegmentsinceJanuary2008.ReductioninnewbuildingpricingmostlyreIlectsareductionintheshipbuildersmargins,butalsoreductionsindirectmaterial(iecommodityprices,suchassteelplate)andlabourIortheconstructionoIvessels.NewbuildingpricesreIlecttheintrinsicvalueoIthevessels,orthereplacementcostasvaluatorsmaysay,sinceitrepresentsthetruevalue,orinherentcostoIreplacingtheasset.ThedeclineinnewbuildingpricinghasbeenmoreorlessuniIormacrossassetclasseswithAIramaxesshowingtheleastdeclineoIabout30.ForIive-yearoldtankers,Graph2,secondhandassetpriceshavedeclinedby50-60,withMR2sshowingtheleastdeclineoI50andwithLR1sandcrudeAIramaxesshowingthemostdeclinewith60.InGraph3,thedeclineinassetpricesIor10-yearoldtankershasbeenabout60betweenJanuary2008andtoday,withMR2sshowingtheleastdecline(50)whileAIramaxeshavedroppedby70.For15-yearoldtankers,thedeclineinassetspricesrangedbetween60-80;VLCCsshowedthesmallestdeclineoI60,whileAIramaxesagainunderperIormedthemarketNEWBUILDING
ASSET PRICES ($ mil)50K DWT 'MR2' ProductsTanker NB Price75K DWT
'LR1' Products TankerNB Price110KDWTAIramax Tanker NBPrice155K DWT
Suezmax Tanker NB Price315K DWT VLCC NB PriceGraph 1.5YR ASSET
PRICES ($ mil)48K DWT 'MR2' ProductsTanker 5YR-old Price73K DWT
'LR1' Products Tanker5YR-old Price100K DWT AIramax Tanker5YR-old
Price155K DWT Suezmax Tanker5YR-old PriceGraph
2.Tankerassetpriceshavemarkedlydeclinedinthelastcoupleofyears,atleastasfarastankertransactionstakenplaceinsecondhandmarketareconcerned.Thisdeclinehasbeenparticularlypronouncedinthelastsixmonthsandespeciallyforvesselsbuiltpriorto2000`.K
V H I N D U S T R I E S W O R L D W I D EWorld HQ: United States |
[email protected] EMEA HQ: Denmark | [email protected] Asia-Pacific HQ:
Singapore | [email protected] +1 401.847.3327 +45 45 160 180 +65
6513 0290 2012 KVH Industries, Inc. KVH, TracPhone, and the unique
light-colored dome with dark contrasting baseplate are registered
trademarks of KVH Industries, Inc. mini-VSAT Broadband is a service
mark of KVH Industries, Inc.One world. One dome.Introducing the rst
dual-mode C/Ku-band solution for truly seamless maritime
broadband:Global Connectivity up to 4 Mbpswww.minivsat.com/v11 2012
KVH Industries, Inc. KVH, TracPhone, and the unique light-colored
dome with dark contrasting baseplate are United States World HQ:
2012 KVH Industries, Inc. KVH, TracPhone, and the unique
light-colored dome with dark contrasting baseplate are +1
401.847.3327EMEA HQ: [email protected] | United States K V H I N D U S T
R I E S W O R L D W I D E registered trademarks of KVH Industries,
Inc. mini-VSAT Broadband is a service mark of KVH Industries, Inc.
2012 KVH Industries, Inc. KVH, TracPhone, and the unique
light-colored dome with dark contrasting baseplate are +45 45 160
180 [email protected] | Denmark EMEA HQ: K V H I N D U S T R I E S
W O R L D W I D E registered trademarks of KVH Industries, Inc.
mini-VSAT Broadband is a service mark of KVH Industries, Inc. +65
6513 0290 [email protected] | Singapore Asia-Pacific HQ: K V H I N
D U S T R I E S W O R L D W I D E registered trademarks of KVH
Industries, Inc. mini-VSAT Broadband is a service mark of KVH
Industries, Inc. +65 6513 0290 [email protected]
May 2012 06INDUSTRY MARKETS Custom built and series product
Technically reliable Well proven designs Continuous technical
development Dependable partner Customer oriented approach DAMEN
DOUBLE HULL OIL TANKER MTS SHANNON FISHER DAMEN SHIPYARDS BERGUM
Member of the DAMEN SHIPYARDS GROUP P.O. Box 7 phone +31 (0)511 46
72 22 [email protected] 9250 AA Bergu fax +31 (0)511 46 42 59
www.damen-bergum.nl mThe Netherlands
STANDARD OF EXCELLENCE CUSTOM BUILT IN SERIES PRODUCTION
withan80declineinpricing(Graph4).Insummarisingassetvaluetrends,itsobviousthatpriceshaveexhibitedaseveredecline,andIorill-timedacquisitions,therehasbeenasubstantiallossoIequityandvalue.Overall,itseemsthatMR2shaveheldtheirvaluebest,comparativelyspeaking,whileAIramaxeshavebeenbyIartheworstperIormers.InGraph5,wevisuallydepicttheratiooIa10-yearoldtankerversusitscorrespondingnewbuildingpriceIromJanuary2008untilnow.InJanuary2008,justbeIorethetopoIthemarkets,10-yearoldtankersweresellingataround80oItheirnewbuildingprice,meaningthatvesselsalmosthalIwaythroughtheirdesignliIeweresellingat80oItheirreplacementcost.Even10-yearoldSuezmaxeswereachieving91oItheirreplacementcost.InMay2012,10-yearoldtankerssellatabout35-50oItheirnewbuildingcost,withAIramaxesatthelowestendoIthespectrum(36)andMR2sandSuezmaxesat50oItheirnewbuildingcost.ThesetrendsconIirmmarketsentimentthatthereisnovalueinthesecondhandmarketONE-YEAR
TIME CHARTER RATES ($/diem)48K DWT MR2 TANKER72K DWT LR1 TANKER105K
DWT AFRAMAXTANKER150K DWT SUEZMAX TANKER310K DWT VLCC TANKERGraph
6.2008-012008-032008-052008-072008-092008-112009-012009-032009-052009-072009-092009-112010-012010-032010-052010-072010-092010-112011-012011-032011-052011-072011-092011-112012-012012-032012-0510YR
vs. NB PRICE RATIORatio 10YR vs NB MR2Ratio 10YR vs NB LR1Ratio
10YR vs NBAIramaxRatio 10YR vs NB SuezmaxRatio 10YR vs NB VLCCGraph
5.2008-012008-032008-052008-072008-092008-112009-012009-032009-052009-072009-092009-112010-012010-032010-052010-072010-092010-112011-012011-032011-052011-072011-092011-112012-012012-032012-05$0$20$40$60$80$100$120$140$16010YR
ASSET PRICES ($ mil)45K DWT 'MR2' ProductsTanker 10YR-old Price70K
DWT 'LR1' Products Tanker10YR-old Price105K DWT AIramax
Tanker10YR-old Price150K DWT Suezmax Tanker10YR-old Price300K DWT
VLCC Tanker 10YR-old PriceGraph 3. Graph 4.15YR ASSET PRICES ($
mil)45K DWT 'MR2' ProductsTanker 15YR-old Price70K DWT 'LR1'
Products Tanker15YR-old Price95K DWTAIramax Tanker15YR-old
Price150K DWT Suezmax Tanker15YR-old Price265K DWT VLCC Tanker
15YR-old PriceMay 2012
TANKEROperatorINDUSTRY
MARKETS$0,!-32-,$65$**,)1612$+81.-02!*$#(&(2*32-+2("2-..(,&-%%+-,(2-0(,&1612$+2-1(#-,('**!--2',-2-3,$2'$,10$$"$
'$$2("(1.-02!*$#(&(2*32-+2("&12(&'2*$4$*+-,(2-0(,&1612$+#$1(&,$#2-"-,2(,3-31*6,#32-+2("**6+-,(2-02'$"0&-2,)*(/3(#*$4$*#30(,&2-..(,&-%%.0-"$#30$1'$3,(2""302$*6+-,(2-012'$*(/3(#*$4$*-4$02'$*123..$02'0$$+$2$016(,"0$1(,&1%$26,#$%9"($,"6-,$65$**,)1612$+'$*.1"312-+$01(+.0-4$!31(,$11.$0%-0+,"$2-..(,&-%%-0+-0$(,%-0+2(-,5552,)1612$+"-+$*+(*2,)1612$+'-,$65$**"-+7-,$65$**,2$0,2(-,*,"**0(&'210$1$04$#Iorproductstankers,astheyareoverpricedwhencomparedtothenewbuildingmarket,whileAIramaxesoIthisvintageseemtooIIerthebestinvestmentprospects,atleastoncalculationsbasedonthisyardstickalone.Thereareseveral,bothin-depthandsuperIicial,possibleexplanationsIorthedrasticassetpricedecline;MR2sassetpricespeakedearlierthan2008(hurricaneKatrinahasbeenthecatalystIorthismarket);AIramaxeshavebeenaIairlyliquidandoversuppliedmarket,comparativelyspeaking,withthisassetclassbeingtheworkhorseoIthetrade;theVLCCmarket,especiallyIormoderntonnage,isexceptionallyilliquidandanyassetpricingisbasedmostlyontheoreticalassessments,ratherthanactualtransactions.InGraph6,wepresentone-yeartimecharterratesIormoderntonnagebetweenJanuary2008andpresent.Asexpected,timecharterrateshavedeclinedsubstantiallyalongwithassetprices.However,whileinJanuary2008,therewasawidebandoIrates,Irom$25,000perdayIorMR2stoalmost$70,000perdayIorVLCCs,atpresenttheIreightmarkethascollapsedintoamuchtighterrateband,Irom$13,000perdayIorLR1sandAIramaxesto$23,000perdayIorVLCCs.NodoubtthatithasbeenanunIairmarket.However,basedontheassetpricedeclinesalongvintagelinesandalsoIreightrates,aspresentedinthisarticlealoneandignoringotherconsiderations(ieoutstandingorderbook,changingmarkettrends,technologicalandeconomic,obsolesence,etc),onecanmaketheargumentthat10-yearoldtankersoIIerarelativelypromisingrisk-to-rewardproIile.Further,itseemsthat10-yearoldAIramaxesoIIerthebestvalueproposition,again,basedontheparametersanalysedinthisarticle.Ontheotherhand,thesecondhandmarketIorproductstankersseemsthemostoverpriced,whichmaypartiallyexplaintheincreasedinterestandactivityIornewbuildingcontracts.*This
article was written by Basil M Karatzas, CEO of KaratzasMarine
Advisors, a shipping finance advisory and vessel brokerage
firmbased in Manhattan, New York, representing financial
institutions andinstitutional investors, lenders and shipowners
worldwide. Basil can bereached by email at [email protected], or
phone at +1 713 5455990. Basil M Karatzas.TONEWS FOCUS - IMPROVING
EFFICIENCYTANKEROperator
May 2012
08ImprovingenergyefficiencyneedsanactionplanAshipowneroroperatorwishingtoundertakeaprogrammeofenergyefficiencyimprovementsonexistingtonnageshouldapplyacomprehensiveandmeasuredapproach,aleadingclasssocietyhasadvised.ThiscanbeachievedbycombiningcertiIication,monitoringandtrainingalongsideimplementationoInewequipment,orsystemsonboard,accordingtoABSexperts.IntheIirstinstance,conIormancetoanEnergyManagementSystem(EnMS)planaspartoIwiderMarineHealth,SaIety,Quality,EnvironmentalandEnergy(HSQEEn)certiIication,willprovideownerswitharoadmap,whichcandeliverenergyeIIiciencymeasuresthatarepracticalandappropriateIorparticulartonnage,saidABSvicepresidentandchieIengineerKirsiTikka.ImprovingenergyeIIiciencyrequiresanactionplantomeasureandmanagetheenergyusage.UsingtoolsliketheISO50001energymanagementstandardcanhelpdrivetheprogrammesandprovidingthebaselinecontentIortheShipEnergyEIIiciencyManagementPlan(SEEMP),whichallshipsover400gtwillberequiredtohaveonboardIromJuly2013.ABShasnotedanincreasedleveloIenquiryIromclientsaskingIoradviceandassistancewithenergysavingmeasures,asIuelcostscontinuetoincreaseandenvironmentalregulationdevelops.ABSdirectoroIenvironmentalprogramsTomKirksaidownerscantreatconIormancetostandardsandcompliancewithregulationsintwoways,withanobviousdivergenceinresults.ThereisaregulatorydrivertoimplementationoIenergymanagementplanssoitsontheownersradar.Theycaneitherputthepaperonboardandbeincompliance,ortheycanembracetheinitiativeandsavethemselvesmoney.ThetypeoIenquirieswearereceivingareIromownersaskingIorhelptodothiseIIectively,sothatthereisacostbeneIittotheexercise.Throughitsrelatedbusinessareas,ABSclaimstobewell-positionedtosupportenergymanagementprogrammesthroughtraining,advisoryconsulting,certiIicationandsoItware.Inparticular,itssoItwaredivision,ABS-NauticalSystemswillsoonintroduceanenergyeIIiciencymoduletoitsNS-5shipboardsoItware,whichwillautomatemuchoIthetracking,reportingandanalysisneededIoranEnMsandtheSEEMP.BeIoreownersrushouttoIitenergy-savingdevices,ABSrecommendsthattheyundertakeanassessmentoIcompanypracticescomparedtotheindustrybestpractices,aspartoIthecertiIicationprogramme,whichwillhelpthemidentiIythemostpracticalmeansoIachievingthemaximumreductions.AnHSQEEnprocesswillputinplaceasystemwhichtheownercanusetoevaluatethevariousoptionstoseewhichonesarerightIorthem,Tikkacontinued.Thereisarequirementwithinthestandardtoconsidertechnologicaloptionsthatmaybeavailable,anditmeansownerswontpotentiallywastemoneyonequipmentthatisnotrightIortheirvessel.ABShaspublishedanupdatedGuidetoHSQEEnManagement,broadeningthescopetoincorporatetheEnMSrequirementsoIthenewIS050001standard.ApplyingHSQEEnmeansownerscanbeneIitIromasimilarWe
provide seafarer training and assessment tools for effective
compliance to STCW, ISM, and IMO standardsGet your certification
while onboardOur Onboard Courses gives value for moneySeagull
offers Ship Security Officer (SSO), Safety Officer (SO), Safety,
Health and Environment (SHE), and Electronic Chart Display (ECDIS)
and other topics as onboard courses. Please visit our web page for
the full list. ffChart Display (ECDIS) and other topics aSecurity
Ship fers of Seagull ffs onboard courses. Please visit our web page
for the full list. Chart Display (ECDIS) and other topics af Of ff
Safety (SSO), ficer Of Security s onboard courses. Please visit our
web page for the full list. and Health , Safety (SO), ficer s
onboard courses. Please visit our web page for the full list.
Electronic and (SHE), Environment Electronic NEWS FOCUS - IMPROVING
EFFICIENCYMay 2012
TANKEROperatorprocesstoISMCodecomplianceandatthesametimedemonstratetheyaregoingbeyondtheregulatoryminimums.TheGuidesauthor,ABSdirectoroImanagementsystemscertiIicationHemantJuneja,saidtheenergyreviewwillprovideaneIIectivegapanalysis,enablingtheoperatortoupgradetheirmanagementsystem.AcompanytakingonnewtonnageshouldundertakeISO50001certiIicationIirsttoestablishsomebaselines.ThiswillidentiIyareasoIpotentialimprovementandhelpsetobjectivesandtargets.Thatwillputinplaceasystemwherebytheycanevaluatethevariousoptionsanddecidewhichonesaretheonestheyaregoingtousebasedontheshiptypeandtradingpatterns.Onlythenshouldtheyconsiderinvestinginadd-ontechnologiestoachievethoseobjectivesandtargets.Headdedthattoachieveitsobjectives,suchaprogrammewillrequirecommitmentanddedicationIromtopmanagementdownwards,buttheadditionalworkloadshouldbeminimalsinceISO50001isdesignedalongsimilarprinciplestotheISMCode.EverymanagementsystemcreatesacertainamountoIpaperwork,buthavingbuiltanenergymanagementsystemontopoIISMCodemeansthenetincreaseisminimal,saidJuneja.BeingcertiIiedIorenergymanagementmeansthatanownercanstarttoseeenergysavingsquickly.TheargumentthatitcreatespaperworkwillbeovercomewhentheyseethetangiblebeneIitsintermsoIcost.Nautical
Systems
successSubsidiaryABSNauticalSystemshaswonseveralcontractstoinstallitsHullInspectionsoItwareandnotjustIromABSclassedvessels.OneownertooptIorthesolutionisCypriotDonnellyTankerManagement,whoalsosigneduptotheVettingmoduleIoritsonshoremanagementoIIice.VangelisRousos,DonnellysheadoIoperations&insurancedepartmenttoldTanker
Operator
thatnowalloIthe14managedtankersweresupportedbyahullinspectionmodulesothatuniIormityacrosstheboardwasachieved.HeexplainedthatthesoItwareIacilitatesboththeactualinspectionwithitsmanyhelpIulIeatures,suchascriticalareas,drawings,etc,andthesubsequentreportingandrecordkeeping.BeingintheearlystagesoIutilisingthesoItware,wearestilllearningthesystem;however,wehavereceivedpositiveIeedbackIromourattendingcrewandsuperintendents.ThehullinspectionmoduleseemstocoverthebasicaspectthatwelookedmanyyearsIor-acentraliseddatabaseIorthehullinspectionsandavisualreviewoIallthevesselstanks.Morethanthat,usingthehullinspectionmoduleallowsustouseacommonandstandardisedlanguageregardinghullstructuralterminologyandachievebettercommunicationandexchangeoIinIormation.WhenaskedaboutthepossiblecostsavingsthatthissoItwarecouldbring,Rousossaid:WewontbeabletotrackcosteIIicienciesuntilweareabletoutilisethesoItwareIoraIullyearcycle.ThemainprioritywastopushsaIetymarginsandawarenessIurtherbyutilisingathoroughtool.UponcompletionoIaIullyearscycleIorallourvessels,wewillthenbeabletoexploretheeconomicoutcomes.Donnellyhas10tankersclassedwithABSandIourwithanothersociety.ThecompanysaidthatithadmodelledallthevesselsregardlessoIclassincludingtheIittingoIthehullinspectionsoItwareonboardnon-ABSvesselsCurrently,wearenotusinganysoItwaredevelopedbyanyotherclasssocietyexceptIromtheNauticalSystemsdivisionoIABS.TherestoIthecompanysneedsaresatisIiedbyeitherin-housesoItware,orindustryavailabletools,Rousosexplained.EcoMATE
System for monitoring of fuel consumption and
bunkeringFcoMlTFisorelioblesyslemformoniloringoffuelconsumplionondbunkeringoperolions.Togelherwilhlhe0PTMlSSseries
of fowmelers, il offers
occuroleondmoinlenoncefreesolulionsforollfuelsyslems.www.krohne-skarpenord.comCARGOMASTER
The all-in-one tank monitoring
system0lR00MlSTFRislhecomplelesolulionforlonkmoniloringondolorm.Thesyslemiswellprovenondisinslolledonollkindsofvessels.0ombinedwilhlhehighprecisioncorgolonklevelrodor0PTWl\F
83OO 0 Morine, lhe syslem offers unique benefls for
lonkeroperolors.KROHNE Skarpenord offers complete solutions for
monitoring of liquids onboard all kinds of shipsMeet us in Hall 3 -
Stand no. 3.321TANKEROperator
May 2012 10NEWS FOCUS - IMPROVING EFFICIENCYCASTROL CYLTECH
CYLINDER LUBRICANTWITH SLOW STEAMING AND NEW FUELS LEGISLATION,
CYLINDER LUBRICATION ISMORE CRITICAL THAN EVER.THE CASTROL CYLTECH
RANGE CAN PROVIDE THESOLUTION TO PROTECT YOUR OPERATIONAL
EFFICIENCYWWW.CASTROL.COM/MARINEAsIortankervetting,theintegrationoIallrelevantobservationsundereachspeciIicVesselInspectionQuestionnaire(VIQ)isveryhelpIulbothIorthepreparationandtheresponsetovettinginspections.HavingallthisdataataclickisthemostattractiveoptionoIthismodule,Rousossaid.ThehullinspectionandvettingsoItwareareexpectedtodelivervaluebutmostimportantly,theyareexpectedtoenhanceourcontroloverourIleetandrevealsomeweaknessesthatcouldnothaveotherwisebeenspotted,Rousossaid.Hecontinued:DevelopingandimplementingtheHullInspectionandVettingmodulehasbeenastrategicdecisioninordertoenhancethecompanyssaIetycultureandprogressintothenewpaperlessera.TheIirstimpressionIromtheHullInspectionmoduleisthatitoIIersalotmorethanjustgoingpaperless.However,thatbeingsaid,itmustbenotedthatdespitetheeasewithwhichtheHullInspectionandVettingmodulescanbeoperated,theyrequirepersonneldedication,managementandlongtermcommitmentinordertotakeitIorward,Rousosconcluded.Sincethen,ABSNauticalSystemshaswonseveralcontractsIromGreek-basedtankerIleets.MilleniaMartimeistoinstallthehullinspectionandmaintenance&repairmodulesIromtheNS5EnterprisesoItwaresuiteonnineoIitsABS-classedchemicalcarriers,asawayoItestingapotentiallymoreuser-Iriendlysystem.TMSTankerswaslookingIorawaytoimprovetheinIormationthatthecompanyprovidedtotheseaIarers,aswellasamoreeIIicientwaytogeneratereportsIorbetteranalysis.TMSwillutilisetheHullInspectionmoduleon37oIitsABS-classedvessels,whichisclaimedtoenhancetheabilitytomanagethevesselsmaintenanceandrepair.Inaddition,Piraeus-basedAegeanBunkeringServiceswillinstalltheNS5HullInspectionsoItwarethroughtheABSNewbuildprogram,whichoIIersIreesoItwaretoABS-classedvesselsbuiltaIter1stJanuary2009.AegeanwillimplementthesoItwareon15vessels.Finally,IstanbulbasedDensaDenizcilikSanayiveTicaretwillinstallboththeHullInspectionandMaintenance&Repairmoduleson20ABS-classedvesselsaswellasinthecentraloIIice.Thecompanymainlyoperatesdrybulkcarriers,buthastwoSuezmaxes,duetobedeliveredthisyearandanLR1duein2013.ABS
Kirsi Tikka.TOINDUSTRY - GREECE REPORT1 8 0 210240270300May 2012
TANKEROperator
11AccordingtotheMarchnewsletterpublishedbythePosidoniaorganisers,quotingGoldenDestinysAnnualNewbuildingReport,GreekshippinginterestscontinuedtoplaceorderswithbulkcarriersholdingthelionsshareoIthenewbuildings,amountingto62oIthetotalnumberoIordersplacedintheIirstthreemonthsoIthisyear.PreliminarydatashowedthatGreekowners,beIoretheendoItheIirstquarteroIthisyear,hadspentabout$1billon21newbuildingcontracts-13bulkcarriers,sixtankersandtwogastankers.Overall,Greeknewbuildingactivityrepresented7.4oIthetotalnumberoIordersplacedinJanuary-March2012,comparedwithChineseinterestswith5.3with15ordersintotal.Greeksinterestsremaineddominantinthebulkcarriernewbuildingsegment,despitetheIragilesentimentoIthedrybulkmarketintheIirstquarteroIthisyear.However,IoreignownersappearedtopreIermorespecialisedvessels,suchasLNGCsandoIIshoreunits,whichseemedtobethehealthiestsectorsintermsoIgrowthopportunitiesIortradeandvesselearnings,thereportsaid.Forexampleoverall,oIIshoresupportvesselsattracted36shareoItheworldstotalnewbuildingactivityversus27Iorbulkcarriersand17IortankersintheIirstthreemonthsoIthisyear.DuringJanuary-March,ownersspentmorethan$15.6billon283newbuildingsworldwidewiththegastankersegmentremaininginthespotlightIromlastyearsItsbusinessasusualdespitethechaosAmidthetightshipfinancingconditions,freightraterecessionandthethreatofovertonnaginginthemainconventionalvesselsegments,Greeknewbuildinginteresthasnotreceded.recordactivity.However,interestincontainershipsseemedtohavewanedIromthesurgeseenlastyear.Currently,newIueleIIicientdesignsseemtobekeycomponentinshipyardswinningsomeIreshordersinthealreadyoversuppliedsectors,mainlybulkcarriersandtankers.Overall,GreeknewbuildingactivityshowedstrongvolumesoIbusinessIromthebeginningoI2010untiltheendoIthethirdquarter2011,withtheplacementoI250ordersin2010and182in2011.Lastyear,LNGCnewbuildingscametotheIoreworldwidewith24orders,comparedwithonlytwoordersduring2010.Bulkcarriersstillattractedthemostinterestwith77vesselsorderedin2011,while2010wasarecordyear,as160bulkcarrierswereordered,comparedwith28in2009.ApartIromLNGCs,therewasasurgeoIordersIorcontainershipsin2011with46contractsplaced,upIrom17in2010.Secondhand
sectorInthesecondhandmarket,Greekinterestspurchased32vesselstotallingabout$612millintheIirstthreemonthsoIthisyear.Bulkcarriersandtankersattractedmostinterestwith11bulkcarriersand15tankersreportedtohavebeenpurchasedbyGreekinterestsIorabout$533mill.Thiswasmainlyduetolowerassetpricesattractinginvestors.GreekownerswereestimatedtoaccountIor14.4oIthetotalS&Pactivityincontrastwitha7.2Chineseshare.IntheIirstquarteroIthisyear,221vesselswerereportedtohavechangedhandsIoratotalinvestmentcapitaloImorethan$2.1billwithbulkcarriersandtankersholding58shareoIthetotalS&Pactivity.InareportissuedlastyearbyPetroIin,theauthorssaidthatthenumberoIsmallerGreekcompanies,iethosewithjustonetoIourvessels,hadrisenIrom2006tomid-2011.Oneexplanationgivewasthatshippingmarketswerebuoyantduringthatperiod,thusattractingnewentrantsanddelayingthedepartureoIolderones.However,thisisnottheonlyexplanation,astheindustrysproblemssince2008shouldhavereversedthistrend.PetroIinidentiIiedIiveadditionalIactorsastowhythisriseinthesmallshipcompaniescouldhaveoccurred:1)GreekshavecometorealiseandviewshippingasasuccessIulindustryIorthemselvesandtheirIamilies.InstarkcontrasttothedeleteriousinvestmentconditionsIortherestoIthecountry,shippingrepresentedanoasisoIIreeenterprise,nostateinterIerenceandtheopportunitytomakesubstantialproIits.Hence,awholegenerationoIindustrialists,egFidakis,Lanaras,etcandnon-shippinginvestorsturnedtoshippingandbuiltupapresence.2)AsGreekgroupsgrew,asecondgeneration,orthirdgenerationbelongingtotheenterprisesinitialpartnersdeveloped.OItenthesemembershaddiIIerentideasastotheIutureoIthecompanyandthebondsthatheldthemtogethergrewlooser.Consequently,weseeaphenomenonoIsonsanddaughterssettingoIIontheirownandbecomingsuccessIulintheirownright,egVaIias.3)AsGreekshippingprospered,sodidtheinterestbyprivateinvestorsincrease.OIten,privateinvestmentassistedintheIormationoInewgroups.4)AswassaidataUSconIerencelastyear,Greekownersambitionsareonlyeclipsedbytheirbigegos.Hence,evencompaniesthatIacecatastrophetrytobattleitoutontheirownratherthanmergewithothers,reducecostsandenhancetheirprospectsoIsurvival.5)SmallownersoIoveragevesselsknowthatoncetheyleavetheindustryandscraptheirvessels,thechancesoItheirreturningareslim.Hence,theybattleon.EvidencethattheconsolidationprocesscontinuedcanbeIoundinthetop30shippingcompaniesincreasingtheirmarketshareindeadweighttonnagetermsbetween2010and2011Irom50.74to52.Inmid-2011,therewere62shippingcompanieswithover1milldwtIleetscomprising1,774vessels,178.5milldwtand69.68oItheGreekIleetwithanaverageageoI8.5years.PetroIinsaidinitsreportanalysingtheGreekshippingIleet,thatthemostinterestingdevelopment,however,occurredintheyoungestIleetagesoI0-9yearsold.Inthissector,thecompanieshaveexplodedIromonly30in1998to92in2009and151bymid-2011.Clearly,Greekcompanieshaveinvestedinyoungertonnageinordertoremaincompetitiveintheemergingglobaleconomicconditions.Withinthisgrowth,eventhesmallestIleetscomprisingoI1-2vessels,haverisenIrom16in1998to26in2008and37in2011.ItisselI-evidentthatemergingcompanieshavebrokenawayIromthehistoricmodeloIinvestinginoldertonnageandhaveinvestedinyoungtonnage.ThissigniIiesambitionandcommitmentandaugurswellIortheIuture,PetroIinsaid.AccordingtoarecentlypublishedreportbytheGreekShippingCo-operationCommittee(GSCC),LiberiaistheleadingindependentshipregisteroIchoiceIorGreek-controlledshippingcompanies,secondonlytotheGreekIlagitselI.FiguresreleasedbytheGSCCshowthat,intheyearended31stMarch,2012,LiberiaexperiencedanetincreaseoI38Greek-controlledshipsaggregating4.63milldwteasilymorethantwicethenumberoIvesselssecuredbyanyothershipregistry.Inthesame12-monthperiod,PanamaandCyprus,respectively,lost33and25Greek-controlledships.Indeadweightterms,17oIGreek-controlledshipsarenowregisteredwithLiberia,comparedto22IlyingtheGreekIlag.AlthoughtheGreek-controlledIleetdecreasedintermsoIshipnumbersintheyearunderreviewIrom3,848to3,760vessels,theGSCCsaidthatgrosstonnageroseIrom153.13millgtto155.90millgt,while,indeadweightterms,theincreasewasIrom261.68milldwtto264.05milldwt,anewrecordinthe25yearssincetheGSCCIirstpublishedstatistics.ThelatestIiguresinclude437newbuildings,aggregatingmorethan25milldwt,onorderwithshipyardsworldwide.GSCCsdatawassuppliedbyLR/FairplayandincludesallGreekcontrolledvesselsoIover1,000gt.Brokendownintoshiptypes,theIiguresshowthatasoIMarchthisyear,Greekinterestscontrolled598oiltankers,plus68onorder,whichwasariseoIjustthreevesselsonthe2011Iigures.However,inthechemicalandproductcarriersector,aIalloI21vesselswasseento566,plusanother35onorder.IntheliqueIiedgassectorLPGandLNGcarrierstherewasariseoI11to122,plusanother22onorder,accordingtotheIigures.Intheoiltankersector,GreekownersaccountedIor23oItheworldsIleetintermsoIvesselnumbersand22.3intermsoIdeadweighttonnage.Forchemicalandproducttankers,theIigureswere8.4and12.9respectively,whilegascarrierscameinat8.4and7.4respectively.TheaverageageoItheGreekcontrolledIleetdecreasedslightlyby0.5yearsandnowstandsat2.3yearsbelowtheworldsaverageoI12.8years,beingoI10.5years.Thiscompareswith20.3yearsin2000illustratingthemassiveIleetreplacementsthathavetakenplace.SevenmajorIACSclasssocietiesshareover90oItheGreekcontrolledIleet.TheseincludeLRwith833vessels,ABSwith694,BVwith544,ClassNKwith540,DNVwith523,GLwith232andRINAwith175vessels.INDUSTRY
- GREECE REPORTTANKEROperator
May 2012 12TOThe wor|d`s most versat||e eng|ne programme has
been further extended w|th the new u|tra-|ong-stroke MAN B&W
G-type. |onger stroke and |ower eng|ne speed |norease the eng|ne
effo|enoy - and prov|de the opt|on of se|eot|ng a |arger and more
effo|ent prope||er for tomorrow`s energy-opt|m|sed aft sh|p
des|gns. Fue| oonsumpt|on and OO2 em|ss|ons are reduoed by up to
7%. Take a green step |nto the future! F|nd out more at
www.mand|ese|turbo.oom6-og|oes NAh 8&w 680N-09 NAh 8&w
670N-09 NAh 8&w 660N-09 NAh 8&w 650N-89 6reeo NAh 8&w
6-og|oehew ultra-loug-stroke optimises the effcieuc] w & 8 h A
N s e o | g o - 6e u F . s n g | s e d p | h s t f ao n o | t p o e
h t e d | v o r p- G W & B N A M e k o r t se v t s o m s ` d |
r o w e h T 9 0 - N 0 7 6 w & 8 h A N 9 0 - N 0 8 6 w| s s | m
e2O O d n a n o | t p m u s n o o | ef e e r o m d n a r e g r a |
a g n | t o e | e s fe r e w o | d n a e k o r t s r e g n o | . e
p y t -s a h e m m a r g o r p e n | g n e e | | t a s r e & 8
h A N 9 0 - N 0 6 6 w & 8 h A N 9. % 7 o t p u y b d e o u d e
r e r a s n o |s ` w o r r o m o t r o f r e | | e p o r p t n e |
o f fn | g n e e h t e s a e r o n | d e e p s e n | g n eh t h t |
w d e d n e t x e r e h t r u f n e e b s 9 8 - N 0 5 6 w &p e
t s n e e r g a e k a TTad e s | m | t p o - y g r e n ed n a - y o
n e | o f f e e n- g n o | - a r t | u w e n e h d n | F ! e r u t
u f e h t o t n | r u t | e s e | d n a m . w w w t a e r o m t u o
m o o . o b INDUSTRY - GREECE - POSIDONIATANKEROperator
May 2012
14ThepresenceoIthousandsoIparticipantsIromsome80countries,themovetoastate-oI-the-artvenueoIIeringexhibitorsexcellentIacilitiesandmanyopportunitiestopromotetheirbusinesses,plusthestagingIortheIirsttimeaseriesoItoplevelconIerencesandseminarsconcurrentlywiththeexhibition,willconIirmthe23rdexhibitionasoneoIthemostimportanteventintheinternationalmaritimeandbusinesscalendar,theorganisersclaim.ThisyearsPosidoniashouldalsobegoodnewsIorGreece,asitshouldprojectapositiveimageoIGreeceandsendastrongmessagetotheworldatlargethatGreecehassuccessstoriestocelebrateandthattheuniqueachievementoItheGreekshippingindustryontheworldstageandintheIieldoIseatransportation,isoneoIthem.Globalshippingisgraduallyovercomingthegloomyinternationaleconomicoutlook,astheorganisershaverevealedgrowthinexhibitornumbersIorthisyearseventtotakeplaceIrom4th-8thJune2012inthestate-oI-the-artnewMetropolitanExpo,locatedbythenewAthensInternationalAirport.TheprojectedincreaseisbuoyedbythestrongerparticipationoItraditionalshipbuildingnations,plusengineandequipmentsuppliers,allvyingIorabiggersliceoInewbuildingordersplacedbyGreekshipowners,aswellasthemanycompaniesservicingtheglobalIleet.Posidonia2012willnotonlyshowcasenewtechnologies,productsandservices,,butwillalsoprovideacriticalinsightintothekeyissuesandrecentdevelopmentsaIIectingworldtradeandseatransportation.ThenewlylaunchedPosidoniaconIerenceandseminarprogramme,tobehostedintheexhibitionvenue,willexamineimportanttopicscurrentlyaIIectingthemaritimeindustry.Decision-makersintheIieldsoItrade,Iinance,shipbuilding,environmentalpolicyandtechnologywilldiscussanddebatestrategicissueswhileattemptingtoevaluatethemacroeconomicoutlookIortheglobaleconomyanditsimpactonseatrade.ThecollectivemightoIGreekshipowners,wholastyearinvestedatotaloI$8.5billinnewbuildings,hasyetagainpropelledbiggestexhibitorChinatoincreaseitsPosidonianationalpavilionsizeby30to1,300sqminaneIIorttoaccommodatestronginterestbyitsambitiousshipbuildingsector,asittriestoattractGreekownersintothecountrysshipyards.FortheIirsttime,thisyearPosidoniawillalsowelcomebothGermanandNorwegiannationalpavilionstoshowcasetheircountriesengineeringandtechnologicalcapabilities.LongstandingexhibitorsIromJapan,SouthKorea,US,DenmarkandHolland,willallIieldpavilionsincreasedbybetween30and110.PosidoniawillhighlightthecontributionthattheGreekshippingindustrymakestoGreeceseconomy,which,inthesechallengingGreeceopensforbusinessDespitethecountrysfinancialandpoliticalwoes,GreekShippingwantstosendaconfidentMessagetotheworld,Posidoniasorganisershavesaid.This
years Posidonia is forecast to attract 17,000 visitors from nearly
90
countries.times,isnowmoreimportantthanever.SeniorexecutivesIromtheglobalmaritimeindustrywillbeinGreecetoattendPosidonia,underliningtheleadingpositionthatGreekshippingenjoysaroundtheworld,saidThemistoclesVokos,chairmanoIPosidonia.ThisyearweareturningalongawaitedpageasPosidoniamovestoMetropolitanExpo,thestate-oI-the-artexhibitioncentrespanning45,000sqm,whichwillIurtherimprovetheimageandglobalappealoIPosidoniaastheshippingindustrysIinestIorumandwillsigniIicantlyincreasetherecordnumberoIexhibitorsandvisitorsitattracts.AnimportantIeatureoIthisyearsPosidoniaisthenewlylaunchedconIerenceprogramme,whichwillprovideinsightintothechallengesIacingthemaritimeindustry,hesaid.JohnLyras,chairmanoIthePosidoniaCo-ordinatingCommitteeandpast-chairmanoItheUnionoIGreekShipowners,added:WewelcomeallparticipantstothisyearsPosidonia,whichtakesplaceatatimewhentheentrepreneurialspiritandtheinternationalskillsandexpertiseoItheGreekShippingcommunityareassetsthatGreeceandtheEuropeanUnionshoulduse,asweIacethechallengesahead.Theorganisershavesaidthattheyareexpecting17,000visitorsIromnearly90countries.TohelpGreeceinitstimeoIneedAthensexpectsawindIalloIsome50milltobegeneratedthroughouttheweekbyexhibitorandvisitorspendingonhotels,restaurants,hospitalityevents,standconstructions,transportationoIexhibitsetc.ThePosidoniaConIerenceandSeminarprogramme:Tuesday5th1une
TradewindsShipownersForum.
USEmbassySeminar:MaritimeAnti-PiracySolutionsandTechnology.Wednesday6th1une
HELMEPA30yearAnniversary:ConIerenceonStateoItheArtinEnvironmentalShipDesignandOperation.Thursday7th1une
NewsIront/NaItiliaki&MARTECMA:The2012ShipbuildingConIerence:BuildingIortheFuture.
NAMEPASeminar:EnvironmentalIssuesandComplianceintheUnitedStates.Friday8th1une
UniversityoIPiraeus,DeptoIMaritimeStudies&EuropeanInstituteoIShippingandTransport:ApplyinghereticmethodsinShippingManagement.Posidonia2012weekwillsetsailonFriday1stJunewiththeLloydsRegister-sponsoredPosidoniaCupsailingregatta,whichhasbeenthetraditionalstarttotheeventsince2002.ThePosidoniaShipSoccerTournamentkicksoIItwodayslateronSunday3rdJune.Thetournamentusuallyattractsaround250players.FortheIirsttime,aPosidoniaGolITournament,sponsoredbyThenamarisandCostamare,istobeheld.TheorganiserssaidthatitishopedthatthiswillbecomearegularIeatureinIuturePosidonias.ThewholeeventissponsoredbytheGreekMinistryoIDevelopment,CompetitivenessandShipping,theMunicipalityoIPiraeus,theHellenicChamberoIShipping,theUnionoIGreekShipowners,theGreekShippingCo-operationCommittee,theHellenicShortseaShipownersAssociationandtheAssociationoIGreekPassengerShippingCompanies.INDUSTRY
- GREECE - POSIDONIATANKEROperator
May 2012 16TOP&I Club to launch a major charity event in
AthensOn the eve of Posidonia, thismonth the American P&I Club
isto launch an initiative aimed atfeeding 100 needy families for100
days in Greece, as well assupporting children with
specialneeds.Inalink-upwiththreelong-establishedcharitiesinGreece,theclubwilllaunchitscampaignataneveningrooIgardenreceptionincentralAthensonThursday,31stMay,tomarkthestartoIPosidonia2012thatwilltakeplacetheIollowingweek.AItercareIulresearchbyadonationprojectcommitteecomprisingthreeGreekmembersoItheclubsboardoIdirectorsandrepresentativesoIthemanagers,ShipownersClaimsBureau,KrikosZois(translatedasLiIeLink)wasidentiIiedastheleadcharitytoIacilitatetheAmericanClubcharityinitiative.ThisvoluntarycharitywasIoundedin2005byagroupoIpeopleinshipping;ithelpstherisingnumberoIhomeless,destitutepeopleaswellasthoseingeneralneed,itsmainactivitybeingIoodsupplies.TheausteritymeasuresinGreecehavehittheaverageworkingIamilyespeciallyhard,creatingagreaterproportionoIthepopulationstrugglingtosupportthemselvesandprovideeventhemostbasicneeds.ThroughKrikosZois,theclubwillIundtheprovisionoIIoodproducts/suppliestoIeed100needyIamiliesbasedinthetraditionalPiraeusshippingpreIecture.Thesecondcharity,Argo,isacharitableassociationoIaunionoIseaIarerparentswhosechildrenhavespecialneeds;itwasIoundedin1985byaIewseaIaringIamilies.ArgoprovidesbothadaycareandIullcareIacilityIorseaIarerschildrenwithvariousobstaclesrelatedtobothmentalandphysicaldevelopment.ManyoIthesechildrenwouldbelostwithouttheseIacilities,whichalsoincludevocationaltrainingIorthosecapable,therebygivingachanceIorsometobecomeproductivecontributorstosociety.WhilemanycharitiesobtainsigniIicantIundingIromtheprivatesector,ArgoisespeciallydependentonpublicIunding,andhasbeenbadlyhitbecauseoItherecentausteritymeasuresandbudgetcutsinGreece.Special
needsThethirdcharityisIHara(TheJoy),acentrebasedinAthensIorpeoplewithspecialneeds,providingshelter,education,Ioodandeverythinganormalchildand/oradependentpersonneeds.ThecentrewasvisitedbyrepresentativesIromtheprojectcommitteewhowereveryimpressedwiththequalityoItheentirecompoundanditsstaII.ThecentreisintheprocessoItryingtobuildasecondcompoundnexttotheexistingone,inordertoaccommodatethegrowingnumberoIchildrenandyoungadultsinneedoItheround-the-clockcareIorthosewhoseIamiliescannotprovideit.ThishascreatedamuchmoreseriousneedIorIinancialresources,andadonationbytheclubtowardsthenewbuildingwillhelpspeedcompletionoIthisdevelopment.Theclubstargetdonationwas60,000,tobesplitevenlyamongthethreecharities.However,anumberoIclubdirectors,aswellasthemanagershavealreadypledgedsuchsigniIicantamountsthatthetotaltodateisnowmorethandoublethisIigure.ThedonationwillbecombinedwithaMatchingChallengeCampaignIorguestsIromtheGreekshipping,insuranceandlegalcommunitiesatthe31stMayreception.DorotheaIoannou,whoheadstheclaimsteamasmanageroIShipownersClaimsBureau(Hellas)inPiraeusandwhohasbeenco-ordinatingthelogisticsoItheproject,said:GreeceandmillionsoIitspeoplearebeingbatteredbytheworsteconomiccrisisinmemory,pilingnewdemandseverydayonthepopulationandespeciallythecountryscharities.WehopethatthisinitiativebytheAmericanClubwillinasmallwaygotowardshelpingsomeoIthosemostinneed.ItalsoreIlectsourappreciationandcommitmenttotheGreekshippingcommunity,andinparticularourgrowingGreekmembershipthatnowaccountsIorabout40oItheclubsenteredtonnage.Atourreception,wewillchallengetheseveralhundredgueststomatchtheclubsdonationandthusbecomepartoIagreatereIIorttosupportthegrowingnumberoIneedypeopleinGreece,shesaid.
INDUSTRY - GREECE - POSIDONIAMay 2012 TANKEROperator
17International Registries, Inc.io offliotio oit/ t/. Mor/oll Ilooo
Moritio. C Crrot. Jooioitrotrtel: -30 210 !293 223 |
piraeusregister-iri.com www.register-iri.comThe Marshall Islanos
Registry.r.ic. ooo oolit, or. oit/io ,or r.oc/Wc Look Forvard to
Sccing You at Posidonia 2012 Visit Us at Booth 4.215 o L c WWc o t
d r a v r o Fo k o o a u o YYo g n i c c S o 2 a i n o d i s o P t
a 2 1 0 2 o i t a n r e t n Io o i tti o i lli f fff oof o i1 2 0 3
- : l e t . c n I , s e i r t s i g e R l a n oo i tti i rri o MMo
oo o o llo II l ll o / rr o MMo . / tt/ / tt/ i o| 3 2 2 3 9 2 ! 0
s u e a r i p e rU t i s i V i rr tt o rro ttr i o i o ooo J . tt.
o rro rr CC C . om o c . i r i - r e t s i g eg. 4 h t o o B t a s
U w w w5 1 2 . m o c . i r i - r e t s i g e r . ww.May 2012
TANKEROperator. 19INDUSTRY DENMARK
REPORTIndeed,JanFritzHansen,deputydirectorgeneraloItheDanishShipownersAssociation(DSA)conIirmedtoTankerOperator
inapresentationinCopenhageninAprilthatthenewGovernmentwasintentoncontinuingtopursuethesamepolicytopromoteDanishshippingworldwide.Today,thetotalDanishIleettotalsjustunder80milldwt,oIwhichjustover40millischarteredin,ieoperatedbyDanishcompanies.OIthetotal,some38milldwtIlyIoreignIlagswitharound21milldwtIlyingthedomesticIlag.AbouthalIadozennewshipownershavejoinedtheDSArecently,includingsomeswitchingIromSweden,asthatcountrydoesnotseemtobeoIIeringthesamekindoIinitiativesastheDanes.TheDanishshipowningIraternityisdynamicbywayoIsplits,mergersandacquisitions,whichhelpstocreatenewcompaniesandtodissolveothers,especiallyinthetankersector,inwhichDenmarkisverystrong.TherearevariousinitiativesbeingpursuedbytheDSA,mostoIwhicharebeingdiscussedattheIMOinsomeIormoranother.Piracy
guidelinesTakingpiracyasanexample,theDSAinco-operationwiththeunionsandotherinterestedparties,hasputtogetherguidelinesIorDanishcompaniesthinkingoIemployingarmedguardsonboardtheirvessels.Ameetingisheldeverythreemonthsonthelatestdevelopmentsinanti-piracyinitiatives.TheguardsshouldbequaliIiedandariskassessmentshouldbecarriedout,asthevesselmustbeaspreparedaspossible,DSAtechnicaladvisorMortenGlamsosaid.UnderDanishlaw,armedguardsareallowedonDanishIlagvessels,butapermitmustbeissuedIoreachtransitoIaHighRiskArea(HRA).However,therearenowproposalstochangethepermitschemeIromeachtransitoItheHRAtoanannualbasis,whichmightbepassedintolawbytheDanishGovernmentthissummer.GlamsostressedthattheuseoIarmedguardscouldonlybeadoptedinadditiontovesselscomplyingwithBestPracticeManagement4(BMP4).Takingawiderlookattheproblem,healsoadvocatedtheuseoInavalescorts,capacitybuildingintermsoIlocalcoastguards,thestrengtheningoInationallawsandthesettingupoIlocalprisons,disruptingthepiratesIinancialtrailsandtheimprovementoIdevelopmentaidtothosecountriesshelteringpirates.AsIorthesituationoIIWestAIrica,hesaidthatlocalgovernmentsshouldtakeactionagainstthepiratesoperatinginandoutoItheirareas.Almostlikeeveryoneelseinshipping,theDSAhasstrongviewsontheIMOsIorthcomingBallastWaterManagementConvention.DSAheadoIdivisionPeterOlsensaidthattheConventionshouldseethelightoIdayin2014atthelatest,orevenin2013,providingtheamountoItonnageneededisreachedthisyear.HesaidthatavesselsabilitytotakeonanddischargeballastwaterwasIundamentaltoitssaIeoperation,asitisusedIoritsstabilityandtrim.InthecaseoIaVLCC,theintakeoIballastwatercouldamounttoasmuchas100,000cum.Themostobvioussolutionistoinstallaballastwatertreatmentsystemonboard,oralternatively,providereceptionIacilitiesinport,apossibilitybeinginvestigatedbytheDSA.OncetheConventionentersintoIorcetherewillbequestionsregardingcosts,retroIitsandgeneralsaIetytobetackled.Withasystemcostingupto2.5millpervesselandsome68,000vesselsestimatedtoneedasystemby2021,itisquestionablewhethershipyards,equipmentmanuIacturers,classsocietiesandotherswillbeabletomeetthesedemands.TheDSAestimatedthatthepeakyearwouldbe2017when16,000vesselswillneedtobeIitted,accordingtotheIMOstimeline.OlsensaidthattheIMOprovisions,statingthatavesselshouldcomplynolaterthanatitsIirstintermediate,orrenewalsurvey,doesnothelpverymuch,asintermediatesurveysoItendonotincludedrydockings.HealsothoughtthatanyregionalimplementationoItheConventioninNorthernEuropewouldalsolikelycauseproblems,aswilltheIactthattherearenoclearguidelinesgivenonthesamplingprocedurestobeusedthusIarattheIMO,astheIlagstateshavenotagreedonthePortStateControlguidelines.TurningtotheSOxemissionissue,DSAtechnicaladvisorArneMikkelsensaidthatin2008,theassociationlaiddownashipownerscompliancetoolboxtothethenIorthcomingECAregulations.ThistoolboxcontainedthreealternativemeasurestosecurecompliancewithMARPOLAnnexVI.Thesewere:
AvailabilityoImarinedistillateIueloil.
Treatmenttechnology,iescrubbers.
AlternativeIuels,suchasnaturalgas.TheDSAhasestablishedapartnershipwiththeDanishEnvironmentalProtectionAgencytoensuretheappropriateDanishimplementationoIinternationalregulationsonairpollutionandtoprepareshipownersIorcompliance.ThepartnershiphasmappedoutbothemissionsandthereductionpotentialinDenmarkandithasinitiatedanumberoIprojectstodevelopvarioustypesoIscrubbertechnologyandalsotoexploretheuseoINewgovernmentendorsesDenmarksstableshippingpolicyFrom2006toearlierthisyear,theDanishGovernmenthashadalongtermstableshippingpolicyinplace.WithDenmarksrecentchangetoaSocialistGovernment,fearsthatthispolicywillchangehavereceded.TANKEROperator
May 2012 20INDUSTRY DENMARK
REPORTnaturalgasasaIuel.TheDSAisalsoanetworkpartnerintheDanishmaritimeindustrysGreenShipoItheFutureinitiative.By2015,demandIordistillateIuelsintheECAswasestimatedtoincreaseby20-40milltonnes,arounda30riseontodayslevels.By2020/2025,theglobaldemandwilldependonavailability,butisestimatedtoincreaseby100milltonnesplus.Thereisastudyunderwayonthis,whichshouldbeIinalisedby2018,Mikkelsensaid.Healsostressedthatshipownersstrategywilldependoncost.RoughestimatesoItheincreaseinIuelcostsusingdistillatesarebetween50-70.TheproblemsIoreseenonthesupplysidewerethatglobaldemandwasrisingandnotjustIromthemarineindustry.AlsothereIineryinvestmenttomeettheIuturedemandwasIallingbehind.OnesourceoIsupplycouldbeauto-diesel.However,herethemarineIlashpointrequirementswerestricterthanIortheautomobileindustryat60degCminimumglobally.OnlyAustraliahadahigherIlashpointrequirementIorroadtransportat61.5degCminimum.ThelowestIlashpointquotedwasIndiawith35degCminimum.TheDSAaskedLR/FOBAStoundertakeastudyontheIlashpoint,askingcandiIIerencesinIuelspeciIicationsbejustiIied?IsthereasaIetyissue?LR/FOBAScamebackwiththeanswerthattherewerenosaIetyissuesinloweringtheIlashpoint.Finally,DSAadvisorMariaBruunSkippercalledIoranindustrywidebunkeringsurveytobecarriedoutandalsoposedthequestionwhataboutanEEDIIortheexistingIleet?However,theIlagstateshavecomeoutagainstthisideaattheIMO.Blue
DenmarkHighlightingtheadvantagesoIoperatingoutoIDenmark,NORDENCEOCarstenMortensensaidrecentlythathiscompanyispartoItheBlueDenmark,whichthenewDanishGovernmenthasjusttakentheinitiativetostrengthenwiththeestablishmentoIaso-calledgrowthteam,inwhichhehadbecomechairmaninhiscapacityatNORDEN.EventhoughDenmarkisasmallcountrywithonly5.5millinhabitants,Danishowned/operatedvesselstransport10oItheglobaltrade.ThismakestheBlueDenmarkoneoIthecountryspositionsoIstrength,anditmakesDenmarkoneoItheworldsleadingseaIarernations.ItistheMinisterIorBusinessandGrowthOleSohnsambitionthatweprepareaproposalIorhowtheDanishshippingcompaniesandalltheassociatedmaritimetradescangrowevenIurther,heexplained.ThegrowthteamshouldalsocomeupwithideasIorhowDenmarkcanattractIoreignmaritimecompanieswithaneyetohowanothersmallcountry,Singapore,succeededingrowingIromadevelopingcountryintoaglobalgrowthcentre,notleastaglobalshippingcentre,injust50years.OnbehalIoINORDENandtheentireindustry,Iampleasedthatthegovernmenthastakenthisinitiative.ItmayseemabitstrangetosomepeopletotalkaboutgrowthinthemiddleoIaglobalIinancialcrisis.Ontheotherhand,itispreciselyintimesoIcrisisthatyouhaveseenthegreatestideascomeintorealityduringtheyears,asthewilltochangeandrenewisalwaysgreatestintimesoIcrisis,heconcluded.
TOTRIMMED TO PERFECTION?141 years in global shipping have taught us
that there is always something to trim, correct and care for.
Trimming everything to perfection is the mindset we adhere to in
our day-to-day work at ofces and vessels. We keep investing in
quality and safety to constantly improve our vetting performance
and make shipping safe, simple and cost-efcient for our customers.
Within the tanker segment NORDEN controls 43 modern LR1, MR and
Handysize tankers, of which 17 are owned, and has 4 vessels on
order. All vessels are operated by Norient Product Pool. Visit us
at www.ds-norden.com INDUSTRY - DENMARK REPORTTANKEROperator
May 2012
22TherearepoolsIoralltankersectorsandalmostallsizeranges,IromsmallchemicaltankersuptoVLCCs.OneoIthenewcomersisrapidlygrowingHaIniaManagement,whichmanagesanMRpoolandhasa50stakeinanLR1poolwithpartnerMOLtheStraitsTankersPool.ManagingdirectorAndersEngholmexplainedthatthepoolingsystemgivesacertaindegreeoIconsolidation,whichhesaidwasagoodthingintodaysmarket.ThevolumeoIvesselscanbeoptimisedresultingintheIleettradingmoreeIIiciently,hesaid.Forexample,theStraitsTankersLR1poolwillnumber35vesselsoncetwonewbuildingsaredelivered.ThepoolconsistsoIeighttonnageprovidersMOL,Gotlandsbolaget,Marinvest,ReedereiNord,NordicShipholding(IormerlyNordicTankers),Tailwind,NagiloShipping(anaIIiliateoIOldendorIIOverseasOperations)andUACC.StraitsTankersismanagedIromSingaporeIromwhereoperationscommencedinMay2011.AtthetimeoIitslaunch,HaIniasaidthatIorowners,intodaysprevailingmarketconditions,theday-to-dayhandlingandmanagingoIahomogenousIleetbymeansoIeconomyoIscalemakessenseIortheindividualowner.WithasteadycashIlowmanagement,theiroverallperIormanceriskisdiversiIiedbyeIIicientutilisationoItheindividualvesselandtheIleet.ThecommercialmanagementconcernhasrecentlyaddedIreightIuturestoitsportIolioinwhatitcalledavalueaddedservice.Thisisundertakentoenablethepooltohedgepositionsandperiods,aswellastocapitaliseontheassetsandmarketinIormation.FutureIreightandbunkersarehedgedwithintheparametersoIHaIniasFFAandHedgingPolicy,thecompanysaid.Foundedin2010,HaIniacurrentlyhas26vesselsoIbetween35,000dwttoLR1sizeinitscommercialpooloperation.ThememberssupplyingtonnageareJLauritzen,KirkKapital,Gotlandsbolaget,LGRdiNavigazioneandMarinvest.ThecompanyusesthebrandnameHaIniaTankersinitsday-to-daymanagementoItheMRpoolandIortheothervesselsundercommercialmanagement.BothHaIniasMRandStraitsTankersLR1poolscouldsoonbejoinedbyTankersInc,asCEOMikaelSkovconIirmedthathehadorderedtwo,optiontwo,LR1satDalianandthree,optionthree,MRsatGuangzhou.AnothertwoLR1swouldbecharteredin.However,thesecontractswerestillsubjecttoIinancebeingputinplaceatthetimeoIwritingandwerebelievedtohavebeendelayed.DespiteIormingthecompanyacoupleoIyearsago,SkovexplainedthathewaitedIortherighttimetoinvestintonnageandnowaIterwhathecalledapatientsetuphehadawell-capitalisedcompanybackedbyproIessionalinvestors.ThenewbuildingLR1swillbehighlyIuel-eIIicientandhavebeendesignedtosaveupto25bunkerIuelcostswhencomparedtootherLR1tonnageonthewater(dependingonactualspeedinoperation).DanishownersaremastersatpoolingtheirresourcesManyDanishtankerownersandoperatorsaremembers,ormanagersofpools.www.api-marine.com
Hafnias Anders Engholm.INDUSTRY - DENMARK REPORTMay 2012
TANKEROperator
23Inaddition,TankersInchasorderedthreeMRsoI49,999dwtatGSI/Guangzhou,ChinaAnoptionhasalsobeenretainedIoraIurtherthreeMRnewbuildings,thedeclarationoIwhichwillbedeterminedatalaterstage.ThesewillenterHaIniasMRpooloncedelivered.Again,thesevesselwerebelievedtohavebeendelayed.SkovalsoexplainedthatTankersInchadnosetplanotherthantooperateintheproducttankersector.Wewilllookattimecharters,secondhandtonnage,newbuildingsandmergersandacquisitions,hesaid.Healsoexplainedthattodayseco-designtankerswerearound15-20moreeIIicientthantheirearliercounterparts.Forexample,TankersIncvesselswillbeIittedwithde-ratedMANdieselengineswithlargerpropellers.OneoIHaIniaspartnersLauritzenTankers(LT)hasIour45,000dwtnewbuildingsatGSI,oIwhichatleastoneshouldhavebeendeliveredbythetimeTankerOperator
wenttopress.LTsvicepresidentoperationsJesperKjersgaardexplainedthatthetechnicalmanagementoIallthevesselsisoutsourcedtoWallem,MeikaiMarineServices(MMS)andThome.LTalsomanagesanotheroIHaIniasstakeholders-KirkKapitalsvessels.LTsvesselsareoperatingintheclean,reIinedproducts,vegoilsandeasychemicalsmarketsector.ThecompanyscharteringpolicyisamixtureoItimecharterandspot,dependingonmarketconditionswiththelattermanagedbyHaInia.Indeed,threeoIthenewbuildingswillenterserviceontimecharteroncedelivered,whiletheothervesselwillprobablyenterHaIniasMRpool.ForIMOTypeIIItankers,thereiscurrentlythepossibilityoItriangulationbywayoIpickinguppalmoilcargoesIromAsiatoEurope;gasolineIromEuropetotheUSEastCoastandexportcargoesoutoItheUSGulIarea,Kjersgaardsaid.Excludingthenewbuildings,LTsIleetincludessevenHandymax/MRtypes,anotherIiveMRsontimecharterandIivemoreundermanagementIromKirkKapital.Shuttle
tankersLauritzensshuttletankerbusinesscomesunderthebanneroILauritzenOIIshore.Atpresent,thecompanyoperatesthreeshuttletankersoneoI45,000dwtandtwooI60,000dwt.ThesmallervesselwasconvertedonthebackoIaIiveyearchartertoPetrobras,whilethelargervesselswererecentlybuiltbyCOSCONantongandhavegoneintoservicewithPetrobrasshippingarmTranspetro.AnotherstringtoLauritzensbowistheLPG/ethylenearmLauritzenKosan(LK).Thisgroupowns,orcharters30ethylene/semi-reIrigeratedLPGcarriersand14Iully-pressurisedLPGcarriersoIbetween3,000cumand10,000cumincapacity.Majorgrowthisbeingseeninthesemi-pressurisedmarket,ThomasWoidemann,LKpresidentsaid.CurrentlythereisalsoalotoIethylenebeingexportedIromtheMiddleEast,primarilyIromSaudiArabia,QatarandtheUAE,mainlytoAsiancountries.However,withIransoontobeaIIectedbysanctions,thiswilleIIecttheethylenetradeoutoIthePersianGulI,hesaid.However,heexpectedanincreaseinthemovementoIpropylene.Iranian
problemsLastNovember,LKstoppedthetimecharteroperationoutoIIranandintotal,duetothesanctions,themarketmighthavetoabsorbthe20-30LPGcarrierscurrentlytradinginandoutoIIran.HethoughtthatSaudiArabiaandQatarwouldincreaseexportsandsaidthathehadhighhopesIorthisyear,despitetheIraniansituation.Lastyear,LKtookdeliveryoIthelastinaseriesoIsix3,700cumpressurisedgascarriers.TheywerebuiltattheYangzhouKeijinshipyardinChina.Thelastethylenecarrierwasdeliveredin2010.SpeakingatthedeliveryoItheHelle
Kosan,theIirstintheseriesin2010,Woidemannsaid;YangzhouKejinisarelativelyyoungandveryco-operativeandsupportiveshipyard,whichhasmadeitpossibleIorLauritzenKosantoimplementourowncargoplantdesignwithoutcompromises,atthesametimechallengingthetraditionalideaabouthowaIullypressurizedgascarriershouldbebuilt.AtapresentationinCopenhageninApril,WoidemannsaidthatthecompanysIuturedesignswouldbearound5,000cumand12,000cumcapacity.HealsoexplainedthatbybuildingthevesselsinasmallChineseshipyard,LKcouldbeintotalcontroloIthenewbuildingsandusein-housedesignandsupervisionexpertise.AskediILKwasinterestedinthehybridtypegascarrierdesignsnowoperatingwithIMSkaugenandAnthonyVeder,hesaid;Yes,deIinitely.In1993,LKtookoverSpanishLPGcarrieroperatorGasnaval,whichstilloperatesasaseparatesubsidiary.ThisgaveLKaccesstoRepsolandCepsabusiness.ThevesselsintheIleethaveSpanishsenioroIIicersandCubanengineers,alloIwhicharecontractedbyGasnaval.Despitetakinga$60millhitwiththedemiseoIKoreaLineinthebulksector,JLsoverallresultIor2011was$46.2mill,comparedto$130.7millin2010.ThecompanysaidthatitsbalancesheetwasrobustwithasolvencyratiooI45atyear-end2011(51atyear-end2010)andanimprovedliquidityoI$234.1millatyear-end2011($154.4millatyear-end2010).Totalinvestedcapitalwas$2,344millattheendoI2011,upIrom$2,049millattheendoI2010.BytheendoIlastyear,JLsinvestedcapitalhadmorethandoubledsincetheendoI2007.Lauritzen
Kosans president Thomas Woidemann.TOTANKEROperator
May 2012 24INDUSTRY - DENMARK
REPORTMaerskreactstomarketconditionsAnotherchampionofthepoolingsystemisMaerskTankers,whichrecentlyco-foundedaVLCCpool.ThisDanishshippinggiantoperates35VLCCs,33LR2s,115Handymaxes,79smallerchemicalandproducttankersintheBrostrmoperation,plus32VLGCs.ThecompanysaidthatithadnoticedachangeoIemphasisinthechartermarketwherebytradersseekingandtakingtonnagenowoutweightheoilmajors.MaerskalsoexplainedthatitsIleetoI35VLCCswasnotenoughIortradingIlexibilityandbroadtradingoptions,hencetheneedIorapool.AnothernewdepartureIromnormaloperationswasthattherewasmoredialoguetakingplacewithcounterpartiesonbestpractices,leadingtomoreoIastrategicpartnershiprelationshipwithcharterers.ThevastmajorityoIMaerskTankersIleetoperatesinthespotmarket,butthecompanyexplainedthatitdoesnothaveasetpolicyandwilllookateachsegmentoItheIleet,asopportunitiespresentthemselves.TheincreasingpriceoIbunkerswasobviouslyimpactingonthespotbusiness,costingMaerskupto$20,000perdayinlostTCErevenueversus2006bunkerpricesIoraVLCCand$16,000perdayIoranLR2.WhenconsideringanLR2opexisaround$7,000perdayandrateswerehoveringaround$4,000perday,plusdepreciation,interestonIinanceetc,addingthebunkercostsmakesanyspotIixtureuneconomical.Maersksaidthatduetothehigherbunkercosts,thecompanywouldliketoengagewiththeWorldscaleAssociationinaneIIorttoobtainamonthlyvalue,ratherthanthecurrentannualcalculation,whichincreasinglybecomesmoreoutoIdateastheyearunIolds.ThecompanyhassetatargetIorthisyeartoreduceitsCO2emissionsby100,000tonnesandtoburnsome$35milllessbunkers.Slowandsuperslowsteamingisbeingintroduced,bywhichaoneknotreductionwouldleadtoaroundan8lesscapacityinthemarketplace,Maerskclaimed.Ontheballastleg,aVLCCwouldrunatonly10oIitsmainenginecapacity,thebaseloadwouldbereduced,aswouldthespeciIicIueloilconsumption(SFOC).RegularhullcleaningwasalsoontheagendainanattempttokeepwithvesselsoperatingatmaximumeIIiciency,aswastheconceptoIecovoyages.Theseinitiativeshavealsobeenintroducedonthechartered-inandpoolpartnervesselsinaneIIorttooptimiseacommerciallymanagedtankersentiretrip.TheconceptoIsuperslowsteaminghasmovedintotheproducttankermarket,althoughcurrentlyratesarenotasbadasinthecrudesector.MaersksaidthatthisconceptcouldbetakenmuchIurtherinthenextthreeyears.Onceavesselreaches15yearsold,itmightneedtoexittheIleet,assomecharterersnowinsistonoperatingvesselsoIlessthan15yearsoIage.ThishasIorcedMaersktolookatthenewbuildingbeneIits,wherebyabout10savingscouldbemadeovertheliIeoIthevessel,comparedtoanoldertanker.Nova
Tankers formed
RealisingthatitsVLCCIleetwasnotIunctioningcommerciallyeIIiciently,duetoeconomiesoIscalenotbeinginplace,togetherwithvariouspartners,MaerskTankersIormedtheNovaTankersVLCCpoolearlierthisyearwithMOLinajointmanagementventure.BythemiddleoIApril,thepoolconsistedoI40VLCCs.ThisIigurewasexpectedtorisetoabout50bytheendoIthissummer.Thepoolprimarilyoperatesinthespotmarket,butshorttimechartersandcoaswillalsobeconsidered.Longtermcharterswillnotbeentertained,asthepoolmemberswillundertakethisbusinessthemselves.AccordingtoNovaTankersmanagingdirectorMortenPilnov,therationalebehindthesettingupoItheVLCCpoolwastodeliverindustryleadingservicesbytakingMaerskTankersIromatop10VLCCpositiontoNo1.AnotherpluspointwasthatbygainingadequatescaletheVLCCutilisationwouldbeincreased,Pilnovsaid.Bythe3Q12,10or11newbuildingswillhavejoinedthepool.ThepartnersareMOL(11spotvesselsbyOctober,2012),Samco(six),OceanTankers(14)andMaerskTankerswith19spotVLCCsbytheendoIthe3Q12.PilnovsaidthatthepoolintendstooperatemanyoIthevesselsataround8.5-10knotsTotal
VLCC fleet and Nova Tankers pool. Source: Maersk Tankers.INDUSTRY -
DENMARK REPORTMay 2012 TANKEROperator
25ItisimportanttoemphasisethattherearestillmajortechnologicalandIinancialchallenges,whichmaybediIIiculttoovercomeby2014(theyeartheconventionisexpectedtoenterintoIorce)-
Palle Wredstrom, project manager, Maersk Maritime
Technologywhensuperslow,orslowsteaming.Hecalculatedthattherewere579VLCCsintheworldwideIleetwithapossibleanother50newbuildingstocomethisyear.ThecurrentspotVLCCIleetwasintheregionoI330vessels.Ballast
waterInadraItreportseenbyTanker Operator
andcompiledbytheDSAoutliningtheGreenTransportoIGlobalTrade,MaerskTankerssaidthatithadcomprehensivelytestedthreeballastwatertreatmentsystemsonboardsomeoIthevesselsandwillsoonstarttotestaIourthtechnology.Despitethetestingprogramme,PalleWredstrom,projectmanageroIMaerskMaritimeTechnologysaidinthereport;ItisimportanttoemphasisethattherearestillmajortechnologicalandIinancialchallenges,whichmaybediIIiculttoovercomeby2014(theyeartheconventionisexpectedtoenterintoIorce).MaerskTankerssaidthatitisdevotingagreatmanyresourcestotestingthevariousoptionsinordertoIindthebestpossibletechnology.Wearetalkingaboutaverylargeinvestment,around$680millinourcase,soitsvitalthatweIindtherightsolutionsIromtheoutset,Wredstromexplainedinthereport.SeveraloItheshipboardtestscarriedoutbyMaerskTankerswereundertakeninco-operationwiththemanuIacturers.MaerskinstalledtheequipmentandthentesteditIoramongotherthings,technologiesthatuseozoneandultravioletlighttotreatballastwater.WredstromagreedwiththegeneralopinionthatthetimeIrameIorinstallationwastootight.Itsamuchbiggerchallengethananyonehasimagined.EverythinghastohappenwithinatimeIramethatismuchtoonarrowanditwillbeahugelogisticalandcommercialchallengetoIindtherightsystemsIorthediIIerenttypesoIshipsandgettheminstalledinsuchashortperiodoItime.Thisincreasesthelikelihoodthatsomeshippingcompanieswillendupwithexpensivebutmediocresolutions.Healsopointedoutthatasthetechnologywassonew,thatitwasdiIIiculttodeterminewhichsolutionswerethebest.ShippingcompaniescouldthereIoreriskspendingbillionsontechnologythatcouldturnouttobelessthanoptimal.Ourconcernisthathastemakeswaste,whichiswhywehopethataItertheconventionentersintoIorcetherewillbeawillingnesstoexplorewhetheralesstighttimeIramemightactuallybringaboutbetterresultsbothIinanciallyandenvironmentally,heconcludedinthereport.Only
a few seats left Chemical Tanker Seminar for Shipping
Professionals- Your choice of course14-15 June 2012 in
CopenhagenDevelop your knowledge of Chemical Tankers and their
cargoes- IMO reguIations for ChemicaI 7ankers- Cargo segregation,
I8C-Code and 46 CIR 150- 7he CompIexity of VegoiIs- 8io-IueIs-
MARPOL annex II- 7ank cIeaning issues- A brieng on the very
important MPC.2/Circ.17MarstaI NavigationsskoIe -maiI:
[email protected]: (+45) 6253 1968www: http://www.marnav.dkCall
or send an e-mail to receive information and course programme
Maersk Tankers problems with rising bunker prices and low rates can
clearly be seen.TOINDUSTRY - DENMARK REPORTTANKEROperator
May 2012
26DespitemajorchangesinthemakeupoIownershipandoperationsoIDanishtankershippingrecently,leadingtoacertainamountoIconsolidationamongthevariousshipownersandoperatorswhichiscontinuingtoday,thecountryhasnotbeenimmuneIromtheshippingcrisis.Forexample,duringthepastcoupleoImonths,NordicTankers,itselIabreakawayIromClipper,hassolditsentirechemicaltankerIleettotheEuropeaninvestmentvehicleTriton.TheinvestmentcompanyalsoacquiredchemicaltankerownerHerninglastyearandnoweIIectivelyoperatestheworldslargestregionalchemicaltankerIleet.WiththehelpoIvariousstatementsandapresentationgiveninCopenhagenrecentlybyCEOTommyThomsen,Tanker
Operator
hasputtogethertherationalebehindthisdealandwhatisinvolved.AninvestmentcompanycalledTritonFund,whichacquiredHerningShippinglastyear,purchasedthechemicaltankeractivitiesoINordicTankersIor$30mill,leavingsixproducttankersnowunderthebanneroItherenamedlistedcompany-NordicShipholding.Thesalepriceincludesnineownedvessels,sixcharteredvesselsandthecontractportIolio,whichcoverssome70vesselsundercommercial,orpoolmanagement.NordicandHerningsoperationsaretobecombined,creatingamajorglobalchemicaltankeroperatorwithatotalIleetoI126vesselswithanaverageageoIonly5.5years.Asatmid-April,NordicTankersoperatedsome89chemicaltankers,oIwhichninearewhollyownedandtherestcommerciallycontrolled/timechartered.Thecompanyalsohad35vesselsundertechnicalmanagementandaround140shore-basedpersonnelspreadoverIiveoIIicesworldwide,plusabout1,000seaIarers.AsIorHerning,thisIormerlyIamilyownedconcernoperates37coatedchemicaltankerswithanaverageageoIIiveyears.Some17areIullyownedandundertechnicalmanagementwhiletheremainderarecommerciallycontrolled/timechartered.Thecompanyalsohasaround50shore-basedstaII,spreadoverthreeoIIices,plusabout450seaIarers.ThecombinedentityistooperateundertheNordicTankersbrandnamewithTommyThomsen,theoriginalNordicTankersCEO,remainingasheadoIthenewoperation.TwomanagementcentreswilltechnicallyoperatethevesselsatHerningandCopenhagen.Rubber
stampedThedealwasrubberstampedbyNordicTankersshareholdersattheAGMon20thAprilandwasIinalisedon30thApril.Thecombinedcompanywillbethemarketleaderinthechemicaltankersegmentwithamodernandhigh-endIleetwithanaverageageoIapproximatelyIiveyears,saidThomsen,speakingatthetimeoItheannouncement.NordicTankerschemicaltankeractivitiesandemployeesmakeaperIectIitwithHerningShipping,andwelookIorwardtoworkingwithnewdedicatedownersandskilledcolleagues.Astheleadingplayerinoursegment,wewillbeabletoprovideevenstrongerandmoreIlexiblesolutionstoallourcustomersandtakeonlargershippingcontractstobecomethepreIerredtransportationsuppliertotheoilandchemicalindustry,addedMadsMeldgaard,interimCEOoIHerningShipping,whowilljointhenewmanagementteam.TritonIIIsacquisitionoIHerningShippingrepresentedtheIirststepinourconsolidationstrategywithinthechemicaltankerindustry,saidBjrnNilsson,PartneratTritonAdvisers,advisertoTritonIII.WiththeadditionoINordicTankerschemicaltankeractivities,thecombinedbusinesscreatestheleadingglobalchemicaltankercompanywithstrongregionalpositions.ThetwocompaniesprovideanexcellentplatIormIorIurthersustainablegrowthandconsolidation.FollowingthesaleoIthechemicaltankerIleet,NordicTankerswasleItwithsixproducttankersinthe37,000dwtto73,000dwtrange.ThelistedcompanyhassincechangeditsnametoNordicShipholding,asNordicTankerswillbecomethebrandnameoIthecombinedHerning/NordicTankerschemicalcarrierIleetpurchasedbyTriton.AtthesametimeasthesaletoTritonwasgoingthrough,amoratoriumondeIerredandordinaryinstalmentspayableuntil31stMarchbythecompanynowknownasNordicShipholdingwasagreedIortheproducttankerIleet,subjecttocertainconditions.NordicTankersjoinsHerningDenmarkhaslongbeenoneofthemostimportantcountriesinNorthernEuropeforchemicaltankeroperations.Source:
Based on data from company websites (December 2011). Where date of
build is not available, mid-year delivery has been assumed *)
Excluding river barges 126 113* 97 76 66 62 54 5.5 10.5 10.9 7.4
6.2 9.2 7.8 Average ageApproximate number of vessels
(Stolt-Nielsen) (Eitzen Chemical) (Tokyo Marine) (Berlian Laju
Tanker) 9 Worlds regional chemical carrier fleets. Source: Nordic
TankersMay 2012 TANKEROperator 27INDUSTRY - DENMARK
REPORTThisdivestmentandsalecameasaresultoIdiscussionsbetweenNordicTankersanditsbanksNordeaandDanishShipFinanceandwasviewedasthebestavailablesolutionIorNordicTankersanditsstakeholdersconsideringthehighdebtpositionandcontinuinglowIreightrates.Accordingtotheoriginalstatementoutliningthedeal,theperiodwithverylowandnon-compensatoryIreightrateshaslastedmuchlongerthananticipatedbymostobservers.Thus,thedevelopmenthaschangedsigniIicantlyIromexpectationswhenNordicTankerswasreconstructedinJanuary2010andcapitalwasraisedIromexistingandnewshareholderstoimplementthecompanysstrategy:TheNordicAmbition.Overthelasttwoyears,however,signiIicantimprovementshavebeenachievedinlinewiththestrategy.ThecoaportIoliohasbeenexpanded,newchemicaltankerpoolshavebeenestablishedandtimechartershavebeenconcluded.Inaddition,thetechnicalandcommerciallevelsoIoperationhavebeenupgradedtotheextentthatallmajoroilcompanieswillnowcontractNordicTankersvessels.Inparallel,theorganisationwasIine-tuned.However,theIinancialandeconomiccrisisandtheprevailingIreightmarketconditionserodedthecompanyscapitalbaserequiredtoIurtherimplementthestrategy.Thepurchasepricewasagreedat$30mill,oIwhichtwo-thirdswillbelenttoacompanytobeestablished,whichwillownthenineownedchemicaltankers,inorderIorthebuyertoreducethedebtpositionandensurecash-break-evenoverthecomingperiodoItime.Theloan,whichwillbesubordinatedtothebankdebtintheninevessels,whichisrepayablein2017,willaccumulaterolled-upinterestoI7.5annuallyandissubjecttocertainconditions.Thesaleandpurchaseagreementincludesathreeyearnon-competeclauserestrictingNordicTankers(nowNordicShipholding)toinvestinandoperateinchemicaltankerbusiness,aswellasacustomarycatalogueoIsellerswarranties,thecompanyexplained.Nordic
ShipholdingAsIorNordicShipholdingsIive37,000dwtHandysizetankers,theywillremainincommercialmanagementwithMaersk,wheretheyoperateintheHandytankersPool.TheirtechnicalmanagementwillremainwithTBMarineinHamburg.The73,000dwtLR1Nordic
Anne
willremaincommerciallymanagedbyHaIniaoperatingintheStraitsTankersPool,whileitstechnicalmanagementwillremainwithNordicShipholding.NordicShipholdingsboardoIdirectorshasagreedwithitstwobanksNordeaandDSFthatbothdeIerredandordinaryinstalmentspayableontheproducttankerswillbedeIerreduntil31stMarch2013.IthasIurtherbeenagreedthatthe$10milloIthe$30millpurchasepricewillgotowardsthereductionoIdebtintheproducttankers.Followingthesale,thelistedentitywillthusconsistoIsixproducttankersandrelatedbankdebt,obligationstowardsClipperrelatedtotheacquisitionoIthechemicalorganisationbackin2010andaloanreceivedduring4Q11,plusthereceivablerelatedtotheloanoI$20millmadeinconnectionwiththetransaction.Thelistedcompanyspost-transactionequityratiowillbeabout8.9comparedtoa7.6equityratioat4Q11.Overthecomingyear,theboardandthecompanysbankswillco-operatetoestablishapermanentIinancialsolution,includingare-capitalisationandreIinancingoIthecompany.Inordertobringcostsinlinewithitsnewreducedsize,NordicShipholdinghascontractedMikaelSkovsTankersInctotakeovertheaccounting,stockexchangecommunicationandinvestorrelations.Itwillalsosimultaneouslymonitortheexternalcommercialandtechnicalmanagementpartners.TheoverallstrategyandresponsibilityIorthecommercialdirectionandbankrelations,however,willremainwiththelistedcompanysboardunderthechairmanshipoIKnudPontoppidan.SpeakingatapresentationinCopenhageninApril,ThomsenwasbullishonIuturemarketprospectsIorthechemicalcarrierIleet.HeagreedthatcurrentmarketconditionswerediIIicult,butsaidthattheypointtowardsimprovingIundamentals.HeexplainedthatchemicaltankerdemandiscloselyalliedtoGDPgrowthandsaidthatoveralldemandwasexpectedtoincreaseby5thisyearandby6in2013.Thechemicalandproducttankernewbuildingorderbookwasthelowestacrossthevariousshippingsectorsat10,whilenettonnagewasonlylikelytogrowbelow3in2012and2013.Asaresult,thesupply/demandbalancemaywellimprovetowards2014to2015,hesaid.AnotherpluspointwasthelimitedavailabilityoIIundingIromtraditionalsources,whichshouldcontinuetoputacaponnewbuildingplans.Thomsenalsosaidthatchemicaltankeroperationswerehighlydemandingandthatentrybarrierstothisparticularsectorhadbecomehigher.Combined
Nordic Tankers/Herning fleet*Total vessels unders
operation...........................................................126Owned
vessels................................................27Timechartered
vessel................................................28Vessels
under commercial/pool
management.....................................71Vessels under
technical management...................................55Shore
staff...................................190Seafarers.........................................................1,450Offices....................................................................8*All
figures approximate as at mid-April.Source: Nordic TankersNordic
Tankers CEO Tommy Thomsen.TOTANKEROperator
May 2012 28INDUSTRY - DENMARK
REPORTSincesheddingNordicTankers,ClipperitselIhasbecomepurelyaVLCCownerinthetankersector.However,thiscompanyalsohasalargeIleetconsistingoIvariousothertypesoIvessels.On1stApril2011,IormerheadoIMaerskTankers,KristianMorch,joinedClipperasheadoIprojectsandasapartner.Thenlastmonth,healsojoinedtheboardoINordicShipholding.AtClipper,oneoIhisremitsistheVLCCsectorwhereon30thMarchthisyear,thelastoIIour298,000dwtnewbuildingsSeaSplendor
wasdeliveredIromDalianShipbuilding.SheIliestheHongKongIlagandistechnicallymanagedbyWallemintheChineseterritory.Sheisalsounderalongtermcharter.NoDanishtankerIeaturewouldbecompletewithoutmentionoINORDENandTORM.ThelatterisinthelastthroesoItryingtostaveoIIbankruptcybyagreeingwithitscounterpartiestocutthecharterratesoIthevesselsoperatedinreturnIorastakeinTORM.TheconditionalIrameworkagreementinprinciplewithitsbanksandcounterpartiesisaprerequisiteIorTORMscontinuedoperation,thecompanysaid.TORMsIirstquarter2012resultswerereleasedon10thMayanddonotmakepleasantreading.Indeed,CEOJacobMeldgaardsaid;TORMsoperationalresultIortheIirstquarteroI2012wasinlinewithlastyearandreIlectedthecontinuedchallengingmarketenvironment.However,thenetresultIortheperiodwasnegativelyaIIectedbyvesselsalesandcostsrelatedtotherestructuringoIthecompanyscapitalstructure.EBITDAIortheIirstquarterwasalossoI$7mill,comparedtoagainoI$4millintheIirstquarteroI2011.TheresultbeIoretaxIor1Q12wasalossoI$79mill,comparedtoalossoI$45millinthesameperiodoI2011.Amongotherthings,theincreasewasdrivenbyalossIromvesselsalesoI$16millduringtheq