TANKER OPERATOR Magazine (April 2015)

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    TANKER OperatorAPRIL 2015 www.tankeroperator.com

    Serious Products for a Serious Problem

    A complete suite of bespoke vessel security equipment

    www.easi-chock.com

    Anti-Piracy Solutions

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    De Gerlachekaai 20 B-2000 antwerpen tel. +32 3 247 44 11 fax +32 3 247 44 09

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    April 2015 TANKER Operator 01

    ContentsMarkets

    Strong fundamentalsLR ordering key

    News FocusISM Code and tankersPools and the law

    Manning & TrainingShip/shore interfaceGuide for Mooring MastersIndian seafarersCoping with inspectionsCOLREGS trainingOwners and managersSingapore fundUK cluster growth

    Front cover - Easi-Chock ensures vessel hardening procedures by offering a low cost, effective, time saving suite of security

    products. The products are designed to enable the crew to assemble and disassemble them in a matter of minutes. External storageareas can also be protected, as well as the accommodation portholes, doors and other structures.

    The company embraces the layered defence approach, as outlined in the industrys Best Management Practice 4 (BMP4) for vessel hardening.

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    Anti-Piracy Solutions

    04

    07

    22

    11

    Anti-PiracyVessel hardeningSE Asia procedures

    Technology 26 Ice Class Tankers

    More on the Polar Code Oil spills 30 Ship Efficiency

    Reducing costs Energy saving 34 Bunkering

    Problems highlighted Low sulphur solutions

    AWT addresses ECAs 40 Tank Services

    Viscosity meter Advanced tank coatings

    26

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    TANKER Operator April 201502

    COMMENT

    Confucius he says.....!!!!

    TANKER Operator Vol 14 No 5Future Energy Publishing Ltd39-41 North RoadLondon N7 9DPwww.tankeroperator.com

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    Printed by PRINTIMUSUl.Bernardynska 141-902 Bytom, Poland

    Confused seas---A highlydisturbed water surface without asingle, well-defined direction of wave travel.

    This analogy was used by ABS European president and COO Dr Kirsi Tikka to describethe state of the shipping industry and in

    particular the regulators at a recent Londontanker conference.

    Throughout the conference there werevarious presentations given, which highlighted

    just how confused these seas are.In a lively debate, IPTA/Navigate Chemical

    and Product Tanker Conference chairman CaptIan Finley questioned the role of the regulatorsand the impact the regulations have onshipping. The IMO should go back to its roots

    to serve shipping in a well thought out wayand not penalise shipping, he said.

    Much debate was also centred around anoperational efficiency standard and would itwork, plus the difference between the UNFCCand the IMO on climate change, which needsto be reconciled. Somewhat incredibly thetalks have been suspended.

    Probably of more immediate interest is thequestion of an operating efficiency standardfor all vessels. There were questions posed onhow the data would be collected, the flag

    administrations role and a centraliseddatabase housed at the IMO.IMO spokesman Sveinung Oftedal said

    rather worryingly that it is currently uncertainwhether an operational efficiency standardwould delivery sufficient reductions. He saidthat market driven efficiencies, such as slowsteaming, should be taken into account. Weneed to be flexible but within standards, hesaid. He thought that such a standard wasfeasible both legally and technically.

    There is still argument between the EU andIMO over the lower limit of the proposedemissions monitoring/measuring reporting

    verification (MRV) proposals. Basically theEU has came out in favour of a system startingat 5,000 gt, while the IMO has suggested alower limit of just 400 gt.

    The EUs Heiko Kunst explained that theMRV regulations context was agreed by theEuropean Parliament and Council on 14th

    November with the Council agreeing the finaltext on 5th March this year for formaladoption in April and entry into force on 1stJuly.

    Supporting technical legislation preparationis planned to be completed by 20th May 2016,which includes expert stakeholder consultations.The accreditation of the verifierswould then be completed during the first half of 2017 followed by the verification of the

    monitoring plans during the second half of thatyear with a monitoring start up during thefollowing year.

    However, Kunst acceded that this time scaledid depend on the IMOs possible global MRVintroduction. He said that the two sides havetime for discussions as there were six to sevenMEPC meetings scheduled before the EUimplements its regulations. He also agreed thatthe shipping industry only needed one system- not two.

    Tankers differ IPTAs Janet Strode then accused theregulators of tending to put tankers together into one segment. She pointed out thatchemical tankers were completely different toother types of tankers in that they regularlychange berths in one port, due to 20-30different cargoes being carried on a singlevessel, which could lead to waiting times.

    In addition, as the vessels can carry up to800 cargoes, there is a huge demand on fuelfor heating cargoes, especially vegoils. Tank cleaning becomes more significant with somany cargoes and the use of nitrogen

    generators must also be taken intoaccount.You cant compare like with like or on a voyage to voyage basis, she said.

    As mentioned in the bunker feature in thisissue, there is growing concern among theexperts that engine components do not likecertain fuels, especially low sulphur fuels.

    Both IBIAs Peter Hall and ViswalabsGowri Shankar presented horror storiesregarding damaged engine components and the

    perceived lack of enforcement on the wider formula variations and the fuel switching

    problems being encountered when entering or leaving an ECA.

    AnomaliesThere are several anomalies being unearthed

    not least between the contract as stipulated andthe interpretation of Port State Control, plusthe ISO standards and MARPOL.

    Again somewhat surprisingly, we were toldthat the results of a sample test could varyfrom laboratory to laboratory as, despite usingthe same techniques on the same fuel, thechemistry could throw up different results.

    We were also told that refineries would needfive years to perfect product for the 2020/2025worldwide sulphur cap. Again the EU looks to

    be ahead of the IMO in implementing the cap.

    A strong plea was made to shipowners tocontact their flag administrations, which inturn should alert the IMO through their representatives to persuade them to act atMEPC and MSC meetings.

    As we said at the beginning, shipping is in avery confused state. The question is - have theregulators taken leave of their senses andforgotten just how shipping is run?

    *Some of the papers from Tanker Operatorsrecent Mumbai conference are contained inthe body of the magazine within the relevant

    sections.

    T O

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    INDUSTRY - MARKETS

    TANKER Operator April 201504

    Strong fundamentals

    to boost tankermarketHigh demand coupled with limited fleet growth is forecast to continue to

    propel the tanker market.

    According to the latest short-termmarket outlook by BIMCO, for the period March to May this

    year, the organisation expectedearnings of $30,000-50,000 per day for VLCCs, around $30,000-55,000 per day for Suezmaxes while for Aframaxes, earnings areforecast to be about $20,000-40,000 per day.

    In the product tanker segment, BIMCO saidearnings on the benchmark routes from theArabian Gulf to Japan for LR2s to remain ataround $15,000-25,000 per day. LR1s willhold firm on around the same daily rate astheir LR2 counterparts. MR average rates areforecast to be slightly softer at $12,000-24,000

    per day, while Handysize average rates willremain firm at $15,000-25,000 per day.In its latest market outlook, BIMCO said;

    Following the peak in global oil demand in4Q14 at 93.53 mill barrels per day asestimated by the International Energy Agency(IEA), the first half of 2015 provides aslowdown to an average of 92.50 mill barrels

    per day.For 2015 as a whole, IEA forecast demand

    growth of 0.9 mill barrels per day (+1%) up

    from 0.7 mill barrels per day (+0.8%) in 2014.Growth is expected purely in non-OECDareas, with +0.1mill barrels per day in theAmericas, +0.2 mill barrels per day in Africa,the Middle East and China, +0.5 mill barrels

    per day in other Asia and then -0.3 mill barrels per day in FSU to strike the balance.

    Global oil supply is likewise expected togo higher, though not as much as demand.This will narrow the oversupply gapsomewhat. IEA notes that the market responseto lower oil prices is asymmetrical in the sense

    that the supply side has become more price-elastic, whereas demand less so, BIMCOsaid.

    Global oil supply is a volatile element, onethat affects the tanker markets somewhat not

    by creating uncertainty but by making adifference to tonne/mile demand if oil supplycomes from the US, Libya or Iraq that alone

    sold nearly 3 mill barrels per day inDecember. In January 2015, Iraq onlyexported 2.5 mill barrels per day.

    Normally OPEC exports benefit the crudeoil tanker markets as they traditionally golong-haul, so the lack of OPEC supply mayexplain some of the sliding freight rates seensince the start of year, the report explained.

    Meanwhile in the US, shale oil producersare scaling down the number of rigs drillingfor oil in their response to the lower oil prices.Whether this actually brings down supplysignificantly or only cuts costs for themarginal barrel remains to be seen.

    Until now, none of the large oil-producing

    nations have announced large cuts in oil production. Adding to this positive story is theMiddle East export refinery expansionscoming on stream this year. The Yanbu facilityon the west coast of Saudi Arabia on the RedSea expects to export globally some 400,000

    barrels per day of refined products.Whereas the Yanbu refinery is export-

    oriented, the new large-scale expansion of theRuwais facility in Abu Dhabi is expected to bedomestically oriented. A development such asthis illustrates the oil-refinery movement isstill very much alive, lifting hopes higher for oil product tanker demand going forward,BIMCO said.

    SupplyMeanwhile, in terms of tanker fleet supply,BIMCOs Chief Shipping Analyst, Peter Sand,said; It is no surprise that the order

    book for crude oil tankers is growing as theonly one among the major shipping segments.Twelve new VLCC orders, six Suezmax ordersand four Aframaxes have been placed so far in2015.

    This has lifted the crude oil tanker order book by 4.5%. Orders for VLCCs have beenshared among the three top builders, whereasthe orders for Suezmaxes and Aframaxes have

    Source - BIMCO, Clarksons.

    Tanker Earnings 2014-2015

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    April 2015 TANKER Operator 05

    INDUSTRY - MARKETS

    all been placed in China. China remains the builder that offers the lowest prices onnewbuildings. During 2014, 24 newbuildVLCCs entered the trading fleet against 30 in2013. So far three VLCCs has been delivered,with another 25 scheduled for delivery, he

    said.BIMCO expected some slippage will occur that will support a stronger earningsenvironment. However, the window of opportunity also seems to close somewhat in2016, which currently has 54 VLCCsscheduled for delivery, Sand noted.

    The report also said that the VLCC fleetgrew last year by 2.3% and is on course for 3.1% in 2015, taking an unchanged level of demolition into account.

    Looking at product tankers, the LR2segment is where action on the supply side istaking place this year. For a total fleet thatconsists of 239 units at the start of the year,the addition of 32 (including slippage) willinevitably be quite a lot.

    BIMCO assessed the overall product tanker fleet will grow by 5% in 2015, the fastest pacesince 2010. This will result in a thirdconsecutive year of a rise in product tanker fleet growth since it bottomed out in 2012 at2%.

    Demolition in both tanker segments isforecast to be around the same level as in2014, with no significant one-off events likelyto rock that boat. So far the demolition activityin 2015 has naturally been very low with

    strong markets, just six old product tankersand two VLCCs built in 1989 and 1992, thereport said.

    DemandIn terms of demand, the report noted thatdemand for crude oil and oil product tankers iscurrently strong and both segments areenjoying an extended winter season with highearnings.

    Spot market earnings in January for VLCCand Suezmaxes reached $70,000 and $65,000

    per day at their peak respectively. For the product tankers, Handysizes peaked at $35,000 per day in 4Q14 before heading south inJanuary, similar to the other product tanker segments, only to rebound in the second half of February.

    Product tanker freight rates on the spot

    market shot up in October and have managedto stay high since then. They have alsoenjoyed increased demand from the drop in oil

    prices as more arbitrage opportunities (takingadvantage of a price difference between two or more markets) developed in combination witha strong season uptick.

    It seems that crude oil tankers are nowresponding to the improved tradingenvironment by sailing at higher speeds.

    The report added that not since the first half of 2010 have we seen a normal priced T/C

    market for VLCCs. Just before Christmas2014, the one-year T/C rate for a 310,000 dwtmodern VLCC was $40,000 per day.

    This was illustrative both of the movementin the market and an indicator that thesignificant oversupply seen in recent years haseased. The one-year T/C rates were as low as$18,000 per day in 2013 on the back of limited fixture activity as no owners wanted tocommit on such low levels; at the same timethe five-year T/C rate also struck a multi-year low at $26,000 per day. By comparison, at theend of February, the one-, three- and five-year T/C rates stood equal at $43,000 per day.

    A lot of talk about the steep contango in oil prices (where the forward price is higher thanspot price) circulated during the winter onwhether or not it could translate into awidespread employment of large crude oiltankers to floating storage. Such adevelopment could boost demand and sendfreight rates higher.

    However, thus far, we have not seen muchmovement in this direction, as owners as wellas speculators, who could benefit from this

    price spread have been reluctant to trade.Floating storage has appeared only to a limitedextent, BIMCOs report concluded.

    Crude Tanker Supply Growth

    Source - BIMCO, estimates on Clarksons raw data.

    A is actual, F is forecast. E is estimate which will change if new orders are placed. Thesupply growth for 2015-2017 contains existing orders only and is estimated under the

    assumptions that the scheduled deliveries fall short by 10% due to various reasons and20% of the remaining vessels on order are delayed/postponed.

    World Oil Demand

    Source - BIMCO, OECD/IEA. T O

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    TANKER Operator April 201506

    INDUSTRY - MARKETS

    Long Range orders

    key to futureFor a few years, there has been a wide spread belief that expanding refining capacity inthe Middle East would offer strong support to the product tanker market.I

    ndeed, this speculation supportedstronger interest in newbuildings. In2013, we saw 54 LR2 orders, comparedto a total of 38 units ordered during the

    previous five years put together, said Gibsonin a recent report. Similarly, 28 LR1 orders

    were placed in 2014, versus just eight ordered between 2011 and 2013.

    These orders were largely placed at a timeof weakening tanker earnings, as returnsgenerally eased during 2013 averaging just$10,000-11,000 per day at market speed

    between November 2013 and June 2014.However, the LR2/LR1 market gradually

    firmed during the second half of last year tothe heights not seen since 2008. As expected,higher returns were supported by stronger long haul product exports out of the Middle

    East, once the 400,000 barrels per day Jubailrefinery in Saudi Arabia reached full scaleoperations in late summer 2014.

    There had also been a notableincrease in spotfixtures for larger

    product carriersloading East of Suez in 2014relative to the

    previous year (well abovevolumes out theMiddle East). The

    picture was similar in the West,

    particularly for LR1s, where themost significantincrease has beenobservedUK/Continent toWest Africa trades.

    The recent

    strength inLR2/LR1earningsis encouragingfurther investment

    in newbuildings, as since the beginning of thisyear, some 17 LR2 and 12 LR1 orders have

    been placed, up to the end of the first week of March, Gibson said.

    Despite this fresh wave of ordering,LR2/Aframaxes and LR1/Panamaxes still

    have the smallest orderbook as a percentageof their existing fleets at around 12.5% intotal. This is due to a minimal investment inthe dirty segment in these size groups inrecent years, which in a way helped to offsetstronger ordering activity for LR2s and LR1s.

    Marginal changesThe changes in the trading fleet this year arelikely to be marginal, with very fewdeliveries expected to enter service. Therecent migration of several LR2s from the

    clean to dirty trade will further limit thetrading LR2 fleet this year, particularly if more units follow to take advantage of the

    current strength in the Aframax market.At the same time, demand is expected to

    increase further, once the two 400,000 barrels per day Yanbu and Ruwais refineries in theMiddle East reach full scale operations over the course of 2015.

    However, the outlook in the medium termis more uncertain. The planned start-up of the400,000 barrels per day Jazan refinery in late2016 is expected to be delayed by around ayear (if not longer) and this will push back export growth potential for product tankers.

    The supply side as of the beginning of March appears balanced to counteract thisdelay. However, a lot depends on how manymore orders are seen in the near term. If ordering activity continues at similar levelsseen over the past couple of months, by year

    end, the number of orders in each segmentwill reach record annual highs, Gibsonwarned. TO

    Source - Gibson Research.

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    April 2015 TANKER Operator 07

    INDUSTRY - NEWS FOCUS - ISM CODE

    It was adopted under SOLAS followingseveral high profile accidents, includingthe 1987 foundering of the Herald of

    Free Enterprise and the 1994 sinking of the Estonia , both with a heavy loss of life.

    Under the Code, most vessels of 500 gt andabove, including tankers, need to have SafetyManagement Systems (SMS) installed,

    developed, implemented and maintained byshipowners and managers. The SMS must beimplemented both ashore and afloat.

    While the Code required companies todevelop SMS for their vessels, it was left

    broadly open as to as to the terms applied andwas deliberately intended to be sufficientlyflexible to allow adoption by varying sizedcompanies and spanning all industry sectors.

    However, at times, the Code has beentreated as a form filling and check listexercise. It is seen by many as an

    administrative burden on vessels without thedesired positive effect on safety, which is thewrong impression.

    The Code not only provides the basis onwhich companies can develop essential safetysystems, along with the procedures to allowthese to be checked and followed up, butcompliance is also often required under charterparties, as well as for insurancecoverage.

    Tanker owners/operators/managers is oneindustry sector that has had particular reasonto be keenly aware of the necessity for compliance, as well as the consequences of afailure to comply.

    Today, tankers operate in a stringentenvironment where their employment isdirectly, or otherwise, down to oil major approval. Since a raft of highly publicisedincidents down the years, culminating with the

    Prestige and Erika sinkings, the oil majorsknow of the financial and reputational impactof a major incident.

    As a result, the Oil Companies InternationalMarine Forum (OCIMF)- the voice of the oil

    majors- developed the Ship Inspection ReportProgramme (SIRE), which was introduced in1994 to create a database about the conditionof tankers with the aim of improving quality

    and safety standards.It should come as no surprise to learn that

    ISM compliance is one of the things that aSIRE inspector will look for when boarding avessel.

    One of the key issues that has often arisen isthe shipping company managements concernover addressing:

    Achieving ISM compliance.Concern about creating documents thatresult in SIRE VIQ observations.Legal advice that suggests limiting thecreation of a paper trail, which maysubsequently become subject to legaldiscovery, or disclosure obligations.

    The concerns and misunderstandings of howto address these appropriately, can lead tounder performance in critical ISM areas, onlyincreasing the physical and legal risks. It is noteasy to gain a complete overview of tanker

    ISM issues, as well as casualty data, as there isno central repository for collecting andanalysing Section 9 non-conformity (NC)reports, or a central or autonomous agencythat collects, evaluates and disseminates tanker incident information.

    Lagging behindIn this regard, shipping lags behind the airlineindustry when it comes to accidentinvestigation and the lessons learned. Part of the reasons are set out by Jack Devanney inhis paper Uses and Abuses of Ship CasualtyData. Often the underlying reason will be afear of embarrassment coupled with concernsover legal prejudice.

    This can lead to the following suppressionof information;A) Ratings not reporting problems to the

    officers.B) Crews not reporting problems to their

    owners/managers.C) Some owners/managers may prefer not to

    learn in writing about perceived minorshipboard issues and are concerned about a

    paper trail being created that could bediscovered during a SIRE inspection orincident investigation.

    Regrettably this form of approach still exists

    today.An example of such an issue being tested in

    a New York arbitration case, led to a findingof neglect by the management and an award infavour of the claimant cargo owners. Thevessel apparently had an SMS certificate for several years, but there was no single fullycompleted NC report or any evidence of a

    management review of a report in the ownersrecords. That issue, combined with a seeminglack of proper planning and managementoversight of voyages and repairs, led to thearbitrators reaching their conclusion.

    In 2014, a formal survey of ISM compliancewas conducted by David Corkish and

    presented in a dissertation - The Effectivenessof ISM Implementation - to Liverpools JohnMoores University.

    The findings of this survey were;1) Some vessels and organisations had a

    culture of (avoiding) embarrassmentamong their managers and crew.2) Official statements about embracing ISM

    were not followed through in practice,including a verified check on a particularcompany stating it was compliant buthaving been found to routinely violateSTCW work and rest hours with no NCever being filed.

    3) Using the 5 whys technique of incidentreview often leads to issues of management

    practices being the root cause.4) Section 12 of the ISM Code requires audits and annual reviews, but these may be

    neglected in practice.5) Less than half of respondents were able to

    state that they had a buy in to ISMs philosophy and practice.

    6) Over two thirds of respondents felt that the paperwork generated by ISM compliancerequirements was excessive, distractingfrom other duties and contributed to fatigue

    on board.7) Some respondents felt that IT support was

    insufficient to assists with this

    administrative burden.8) Less than one third felt that an adequate

    and confidential NC system was in placeand a similar low number did not express

    The ISM Code from

    a tanker perspectiveThe ISM Code has been in force since 1st July, 1998*.

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    INDUSTRY - NEWS FOCUS - ISM CODE

    TANKER Operator April 201508

    confidence in their employers to respond to issues in a timely fashion.9) Less than half of the respondents felt

    that accident and near miss reportswere being taken seriously by theirorganisations and even more of aconcern was that 30% thought thereports were not taken seriously.

    10)Overall, there was a perception that paperwork was being over relied uponto achieve ISM compliance, whichled to frustration on the part of thosewho had to complete these tasks -with potential ship to shore attitudes

    being the root cause.From 1998-2008, John Dudley- the co-author of Skulds loss prevention bulletin, fromwhich this article is taken - was the primaryvetting reviewer for a large international oil

    trader. He examined between 400-500 OCIMFSIRE VIQ reports annually and in around5,000 reports, he saw:

    Only an occasional statement that a VIQobservation would be raised as a non-

    conformity and reviewed according to theowners ISM process.Only one company who repsonded to SIRE

    VIQ observations by raising a NC for every observation. The company submitted a

    copy of their management NC reviewstatus report as its response to the vessels

    SIRE VIQ observations.Only one example of a fully completed NC report form, with management- of- change

    follow through and sign off, as a VIQobservation response.

    In one case, an owners refusal to submit anykind of written report regarding an incidentthat occurred while the vessel was in operationresulted in the tanker not completing a vettingsuccessfully for two years until finally thesituation was properly addressed.

    One thing that Dudley was particularlylooking out for as a vetting manager was toread a SIRE inspectors VIQ observation thatduring the previous six months, 12 non-conformities were raised by the crew or duringmanagement visits and all were shown to besuitably closed out by management review andSMS changes.

    Such statements were considered to beevidence of a well working SMS process on

    board and ashore with due reporting andfollow up. So the quandary for owners andmanagers is - How can I create NC records of deficiencies in the operation of my vessels

    without the NC records becoming uncorrectedobservations recorded by SIRE inspectors intheir VIQ report, leading to possible vettingrejections and loss of income, or creating a

    documented history of apparent errors and

    omissions that will be used against me in anarbitration or court proceedings? he said.

    Strong defenceThe answer is that a diligent programme of continuous improvement, including a rigorousnon-conformity process, will significantlyreduce the opportunity for an event that will

    produce a legal or arbitral consequence andthe ability to demonstrate thoroughimplementation of ISM is a strong defenceagainst claims of negligence

    Of the greatest importance, the mostimportant step is for management to realise theimportance of ISM compliance and then

    ensure this is translated into proper adoption,

    as well as continued review and appraisal.This will mean a lot of work, but theconsequence of failing to comply could lead toa loss of oil major approval, insurancecoverage prejudice, as well as legalconsequences- both civil litigation andauthority led action.

    One key area to check is compliance withISM Section 9, as this can be an easy targetwhen passed into the hands of the lawyers.This section covers reports and analysis of non-conformities, accidents and hazardous

    occurrences.The question of what constitutes anadequate number of NCs, as outlined in this

    Betwixt and between. (Source: Skuld).

    Improvement is a never ending journey. (Source: Skuld).

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    April 2015 TANKER Operator

    INDUSTRY - NEWS FOCUS - ISM CODE

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    section, to demonstrate compliance, is a contentious one. Owners

    responses differ greatly when asked this question. It has beensuggested that there should be a basic expectation of at least someissues being reported periodically.

    This would allow an easy follow up on vessels that report nothingto see whether all is well or whether there may be an issue with under reporting which needs addressing

    There are some owners/managers that continue to resist fullimplementation of the continuous improvement mandate and ISM NCmechanism out of a possible concern over the creation of documentary evidence that could adversely affect vetting, arbitrationor court outcomes.

    However, this concern should be replaced by an even greater

    concern of being found to have not initiated ad maintained a vigorousflow of ISM issue reports from a fleet and a return flow of changemanagement actions for continuous improvement.

    On the legal and insurance side, if deficiencies are detected, seriousconsequences can follow. For example, the Australian Maritime SafetyAgency (AMSA) has a strong track record of highlighting deficienciesand a demonstrated willingness to take robust action, including the

    banning of vessels found to be in non-compliance with codes andregulations.

    Should a significant accident occur and subsequent investigationsreveal that there was a systematic ISM compliance failure on board,ashore or both, it may lead to potential legal action by authorities,including criminal prosecutions. In civil liability, this could lead to aloss of limitations and defences that could be otherwise availableunder contract or law.

    It must be remembered that vessel insurance coverage is dependentupon the vessel being fully ISM compliant. For example, Skuldchanged its rules in 1998, expressly to make ISM Code compliance acondition for cover from the P&I club.

    *This article was taken from a dissertation presented by David Corkish in his final year of an honours degree undertaken at

    Liverpool John Moore's University, UK. John Dudley of Tankerisk assisted by providing advice and information during the datacollection phase, as a primary source.

    The dissertation has since been published by Norwegian P&I ClubSkuld under the title - ISM Compliance for Tankers - from which thisarticle is taken.

    Tankers are by and large well regulated.

    TO

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    INDUSTRY - NEWS FOCUS - POOLS

    Shipping pools: a

    competition lawperspectiveIn todays difficult market conditions, it is vital for shipowners to use all

    available efficiencies.*

    Designing a pool in accordancewith competition law is a way for

    shipowners to achieve thoseefficiencies and to enable them to

    swim rather than sink.Although there are different models, a

    standard shipping pool brings together anumber of similar vessels under differentownership and operated under a singleadministration.

    A pool manager is normally responsible for the commercial management (for example,

    joint marketing, negotiation of freight ratesand centralisation of incomes and voyage

    costs) and the commercial operation (planningvessel movements and instructing vessels,nominating agents in ports, keeping customersupdated, issuing freight invoices, ordering

    bunkers, collecting the vessels earnings anddistributing them under a pre-arrangedweighting system).

    The pool managers activities can beimportant to achieve a level of integrationnecessary to obtain the benefits of the co-operation. To achieve this, the pool manager must often have functional independence and

    be responsible for providing integratedservices.

    He or she tends to act under the supervisionof a general executive committee representingthe vessel owners. The technical operation of vessels (safety, crew, repairs, maintenance) isusually the responsibility of each owner.Although they market their services jointly,the pool members often perform the servicesindividually.

    Pools are assessed under competition laweither as mergers or as co-operativearrangements falling short of a merger. The

    more integrated the pool, the more likely it isto be considered as a merger.

    A merger whose participants exceedrelevant financial thresholds will generally

    require pre-notification and prior clearancefrom the relevant competition authority(ies).

    Clearance confers the benefit of legalcertainty, but there is the risk of changes beingrequired or even a negative decision, althoughthere is possibly a more lenient test for mergers than for co-operative arrangements.

    However, many pools will not be consideredto have the requisite degree of permanence to

    be considered as mergers, due for example tothe rights of shipowners to withdraw ships onnotice, or will be regarded as too reliant ontheir parent companies to be mergers. In some

    jurisdictions, particulars of pools falling short

    of mergers need to be filed with maritimetransport regulators in any event.

    Co-operative arrangementsFor co-operative arrangements, there willgenerally be no competition law issue if the

    participants are not actual or potentialcompetitors. For example, when shipownersset up a pool to tender for, and perform,contracts of affreightment (coas) for which, asindividual operators they could not bidsuccessfully or which they could not carry outon their own, no competition issues willgenerally arise.

    In addition, where the market share of the pool participants in a co-operativearrangement is low, for example in afragmented market, competition authorities areunlikely to be concerned to intervene. This is

    because the pool participants will not have asignificant economic impact on the market.

    But it is usually important that there is adegree of integration between the participantsactivities in the pool: otherwise, the pool could

    be seen as a bare cartel focused on joint

    selling, with the object of co-ordinating the pricing policy of the competitors, but with noefficiencies.

    Pools which do not involve joint selling,

    but, for example, joint scheduling or joint purchasing will generally only raise

    competition issues where the parties havesome degree of market power.Key points to consider include non-compete

    clauses, lock-in periods and notice periods andexchanges of commercially sensitiveinformation.

    EfficienciesThe greater the extent to which the pool givesrise to restrictions of competition (for examplethe higher the market share of the

    participants), the greater the efficiencies and pass-on of benefits to customers there must be.

    The efficiencies must result from theintegration and could result from obtaining

    better utilisation rates and economies of scale,improved geographic spread and consequentreduction of ballast voyages. In addition, eachrestrictive clause contained in a poolagreement must be reasonably necessary toattain the claimed efficiencies.

    In conclusion, shipowners may find poolsattractive for a number of reasons. Pools can

    be an effective way for shipowners to co-operate and gain efficiencies without losing

    their independence.

    *This article was written by Anthony Woolich, Partner with Holman Fenwick Willan (HFW).

    Pools should not be seen as mergers.

    T O

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    INDUSTRY - MANNING AND TRAINING

    Improving the

    ship/shore interfaceWith stringent regulatory requirements today covering ships, trading areas, ports,terminals, there is a need for a greater awareness of the ship to shore interface.T

    his is an important element of fleetmanagement, said Capt RK Singh,senior vice president (shipping) of Reliance Industries at the recent

    Tanker Operator Mumbai tanker conference.Reliance owns and operates the giant

    Jamnagar refinery complex, which has five

    SBMs and four jetties for handling crude oil,gas and petrochemicals. In addition, the Indianenergy concern has other petrochemical plantsin the country handling products and chemicaltankers.

    Capt Singh said that the ship to shoreinterface is an important element of fleetmanagement. It is a driver for operationalexcellence and the role of the vessels Master is also important, although the responsibilitycan go to a much higher level within acompany, leading to a blame game if not

    checked.When the ship to shore interface is workingwell there is an open dialogue between the twooperators, which leads to a better understanding of each others problems. Therewill also be a good safety and working culture,leading to efficient and safe operations withgood returns and satisfied stakeholders, hesaid.

    There are areas of concern due to thevariable interface that is sometimes found.There might be cases of a different work culture and/or practices. He explained thatactions taken on one side will affect the other side and there is always a risk with tanker cargo handling operations.

    He called for a greater understanding of each others operations even to the extent of giving the Masters and senior officers time inthe office to work alongside shoreside

    personnel in order to better understand their problems. In addition, port and terminaloperatives should be trained in line with theships personnel.

    There should be a knowledge of the working practices on both sides with check lists andmanuals on the port/terminal information, suchas equipment, operational procedures, etc.

    Critical componentShip and shore personnel should complementeach other as this is a critical component of vessel and terminal operations, especially withtodays improved communications technology.

    The Master is under regulatory andoperational pressures, which can induce thefear factor. Ships personnel should be

    involved in shoreside projects. In some cases,the shoreside managers have come from other industries and have not served as seafarers,thus lacking the understanding of shipboardoperations, he said.

    If issues are not addressed, these could leadto excessive bureaucracy and communications.

    The ship could end up being operateddependent on the shore personnel, thus erodingthe Masters authority. There is also a risk dueto policy decisions being taken onshore, againleaving the Master undervalued and frustrated,Capt Singh warned.

    In order to improve the ship to shoreinterface, periodic interactions/meetings should

    be held and as mentioned, the rotation of shipssenior personnel to shore duties should beencouraged, as well as increased shipboardvisits by the shore staff. In addition, the ships

    officers should be trained in port/terminaloperational aspects.We need to formulate a statutory

    port/terminal operation code applicable to all ports/terminals, which is mandatory andcertificated periodically audited, IMO can takethe lead for a Port/Terminal Operation Code,he stressed. Why not have a port/terminalISPS Code? he asked.

    OCIMF, in co-operation withWitherby Publishing, has issuedthe first edition of CompetenceAssurance Guidelines for Mooring, Loading and LighteringMasters.There is no established requirement for this

    particular discipline and the guidelinesobjective is to provide a competence baselinethat can be applied internationally, theorganisation said. It is aimed at marinefacilities involved in the handling of

    petroleum, oil and liquefied gases.Within the context of this 80-page

    hardback, complete with a CD-ROM, theterm Mooring Master encompasses several

    different roles by which a shore representative provides an advisory service to vesselMasters.

    These include, loading Masters, lighteringMasters, ship-to-ship (STS) transfer superintendents and docking/berthingMasters. The guidelines also include thoseinvolved with single and multiple buoymoorings and others that undertake STS cargotransfers. They could also be of benefit atfixed berth facilities (jetties or docks) wherethe terminal is responsible for managing

    pilotage and berthing Master services.The authors said that the advice contained

    in the guidelines should be supplemented byinformation gained from individual facility

    operators by which the relevant aspects of their own procedures can be covered.

    Four key functions were identified thatcover the main areas of the role and the basicrequirements associated with both vessel andfacility activities;

    Facility organisation and procedures.Safe passage for a vessel to/from the

    berth.Manoeuvring, mooring and unmooring.Cargo transfer co-ordination.

    A fifth function relates to the type of

    facility served by the Mooring Master. Thisincludes specific competence requirements for single, or multiple buoy moorings, fixed

    berths and STS transfers.

    Guide for Mooring Masters published

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    Manning - A foreign

    employers perspectiveWith manning and training in almost every shipowners and managers thoughts atpresent, we look at a few pointers as to way ahead from an employers viewpointand at the Indian seafarer in particular.*

    Aseafarers employers expectationsare competitive costings; acertificated, qualified and welltrained person meeting all the

    statutory requirements; of a good quality andable to meet various industry requirements; a

    motivated and committed person able to helpmaintain and operate the vessel safely,efficiently and economically. He or she alsoneeds to the loyal to the employer, who willachieve a good retention rate.

    Today there are risks, such as violation of the companys drugs and alcohol policy andMARPOL; accidents/incidents which result infinancial claims and reputation damage; theftof cargo and/or bunkers and on boarddisharmony and dismissals, due to personalissues and lack of team work.

    There are also challenges in the availabilityof quality crew, such as lack of practicaltraining; a reduced frequency of machinerymaintenance, due to technology advancements,resulting in reduced hands on and real timeexperience on board, also the level of trainingshould be taken into account, as well as work

    practices, cultural and social issues in the caseof a mixed nationality crew.

    The perceived imbalance in supply anddemand drives up wages, leads to faster

    promotions and the consequential reduction inexperience, leading to a drop in quality.Another problem is that a false sense of jobsecurity leads to an indifferent attitude and adrop in commitment and loyalty.

    It is important for an employer to positionhim or herself correctly in the market in termsof wages. Spiralling wages, due to shortagesand poaching needs to be kept under control.An efficient use of the experience matrixshould be engendered through forwardrotation, planning and well though out

    promotions.It is recommended that officers holding a

    COC, but without experience in rank, may beappointed as junior watch keeping officerswhere an extra navigating or engineeringOOW is required on board, over and above the

    safe manning requirement and/or normalworking complement. A talent pipeline and asense of belonging will positively impact onretention.

    It is advisable to plan any crew changes ateconomical ports, as it can be expensive in

    some locations, especially if long distances areinvolve. Expensive medical treatment andrepatriation can occur if the pre-joiningmedical is inadequate. There may be a need tostrengthen the PEME in line with P&I clubrecommendations.

    Loyalty to an organisation involves loyaltyto its values, policies and people. Anorganisational culture that wins the loyalty hasto be built. Leaders build the culture byconsistently exemplifying and communicatingthe cultures high values and right purposes.

    Senior leadership is committed tocompliance. Only when those at the top lead by example will an organisation successfullyimplement a new policy. Policies are to bestrictly enforced at all times and specially in

    testing times. Everyone understands the business implications of what a major ethicalviolation can do to an organisation. However,

    Retention: three seafarer categoriesFor the sake of simplicity, as far as loyalty towards the companyis concerned, Capt Dalvi broadlydivided the seafarers into threecategories.

    Category 1 - Seafarers in this categorytrust the company to the core. They truly

    believe that it is trying to do the best for them. They are very patient, in the sensethey truly believe in the top management of the company and think that everything willcome good in the fullness of time, as thecompany is continuously taking stepstowards perfection. Loyalty is part of their

    personality. This is a rare breed in today'smarket.

    Category 2 - Loyalty is important for theseafarers in this category, as long aseverything is generally going well and to

    their expectation. If all goes well, theseseafarers will not go anywhere. The majorityof the todays seafarers come in thiscategory. This is where the challenge is, asthese seafarers are comparatively less patientwith what they want. To retain themaximum, a strategy is needed. Theseseafarers are vulnerable to competition.

    Category 3 - Seafarers in this categorystrongly believe that loyalty is an outdatedquality. Usually, they have very specificshort term goals and their decision to be/notto be with the company is governed by thesegoals. This category is not so commontoday though their numbers are on the rise.This could as a result of the tremendous

    opportunities available currently for theseafarers.

    Capt Vaibhav Dalvi of V Ships.

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    INDUSTRY - MANNING AND TRAINING

    most people don't turn it around to understandthe positive impact ethics can have on

    employee loyalty.As for personal growth opportunities, one of

    the major reasons officers leave a company is because they are not promoted when that promotion is due. Seafarer promotions in atimely manner are crucially important toachieve his or her steady career graph, as wellas to improve the retention rate. Formalmechanisms/procedures need to be in place toarrange seafarers promotion at reasonablenotice when the industry criteria of seatime,along with the required recommendation, has

    been met.Once the notion that seafarers are acompanys greatest assets, a commitment totheir career development becomes thatcompanys utmost responsibility. This alsovalid for offering seafarers positions ashore.

    Today, every seafarer going to sea is very particular about ensuring that he is joining asafe ship. Substandard vessels directlyadversely affect a seafarers retention. Acompany needs to be vigilant and careful whilechoosing vessels under its management.

    While aggressively seeking growth of the business, the quality of the clients & vesselswe choose to work with must also not beignored. This will go long way in gaining trustof the seafarers.

    LoyaltyRecognition and appreciation of loyalty is alsonecessary as knowing and staying in touchwith seafarers is extremely important. A letter of recognition and honour, signed by theCEO/president of the company should be sentto all those seafarers who have completed 10

    years with the company.Considering todays seafarers working span

    at sea, this is an achievement which should berecognised. A felicitation with a token of

    recognition and respect will go long way inkeeping the thread of loyalty intact.

    As a token of managements recognition of the importance of the seafarers personal andfamily life, a company might bear the cost of insurance required for the families of those on

    board. Send greetings on important days, suchas birthdays/anniversaries, etc.

    The problem with trying to win loyaltythrough ownership and retention programmesis that these are attempts at buying what must

    be earned and built. Loyalty should be anintegral part of a persons personality,developed through trust and mutual respect.

    Understood this way, then loyalty cannot be bought. It is given to those organisations, persons, that have earned it by their commitment to worthwhile values, purposes or

    policies.As for seafaring as a career option for

    aspiring Indian youngsters, this is losing its popularity in the main cities, as there isalternative career options in these cities and alack of awareness in the smaller cities.

    Another problem is that here is oversupplyof pre-sea training with little or no availabilityof on board training slots (cadets) for thosecandidates who are not sponsored by ashipping company.

    There is also the negative publicitysurrounding seafarer criminalisation and thethreat of piracy.

    Quality importantThe quality of pool seafarers is also important.

    For example, know your staffs stengths andweaknesses ashore and at sea; assess job

    performances against key performancerequirements; identify strengths and areas

    requiring improvement; introduce training and personal development to improve performanceand/or prepare for promotion; providereliable/valuable sources to decide on

    promotions; involve ship and shoremanagement to improve safety, complianceand personnel seagoing standards and haveaccess to well-equipped training centres for

    practical/hands on training imparted by aquality faculty.

    V Ships operates its own resourcemanagement training and its objectives are tounderstand the causes of accidents, the factorsthat contribute to quality performance and therelationship between them in the operationalcontext; to gain an increased appreciation of the relevance of human factors in the maritimeworkplace and to gain an understanding of thenecessity for communications, leadership andteamwork, situational awareness, planning anddecision making and appreciate theinterdependent relationships between theseelements.

    MentoringThere is a need for on board mentors asaccording to the experts, up to 70% of skill islearnt through experience. It is believed thatthe maritime skill pool is not being passed onin the way it used to be, that is by mentoring.

    A typical reaction by senior officers is - Allthis mentoring business is all very well buthow am I going to find time for it? I am so

    busy that I just don't have time to sit and teachthe officers, primarily what they should already

    know.Mentoring can have a significant effect onteam building. It leads to confidence betweenindividuals, as they come to understand otherscapabilities and needs. It is excellent at

    breaking down barriers between individualsand this in turn leads to the cohesion of astronger team. Successful mentoring andtransfer of knowledge also leads to a reductionin accidents and incidents.

    In conclusion, to increase efficiency and costeffectiveness on todays technologicallyadvanced vessels, it is necessary to havededicated, experienced and motivated staff on

    board and ashore.This can only be achieved when a positive

    culture driven by the high quality managementexists in the organisation.

    Continuous efforts are required to maintainthis culture by focusing on the attitude and softskills of both ship and shore staff.

    All the training, motivation and positivitycan give results only if the shore staffsapproach towards the seafarers is blame free.

    * This article was taken from a presentationmade by By Capt Vaibhav Dalvi of V Ships at Tanker Operator s January Mumbai tanker conference.

    Future seafarer supply/demandGlobal shipping is set toincrease during the next fiveyears or so to around 2,247vessels, net of demolition, whichrequires almost 38,500 officers.

    On the assumption that the annual officer intake in the global fleet will be 1.5%, thesupply gap will increase from the currentshortfall of about 19,000 to 22,000. If,however, the officer intake is reduced from1.5% to 1%, the shortfall will increase toabout 33,500.

    During the past five years, taking India asan example, the number of Indian officers

    has gone up by 2,000, out of an overallglobal increase of about 40,000 only 5%out of a global increase of 8%.

    India should work on this opportunity andcan increase the numbers, as Indian officersgenerally enjoy a high reputation, many shipoperators now have crewing offices in India,the availability of junior officers is good andofficers wages compare favourably with thedomestic economy.

    However, in India, the desire for quick promotion is an issue and turnover rates can be high.

    TO

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    INDUSTRY - MANNING AND TRAINING

    How to cope with

    inspectionsA

    s has been often said in the past,there is a lot of duplication inclass, oil major, port state, flagstate, P&I inspections, etc. These

    have led to many different types of inspectionsall having specific requirements.

    Capt Kapil Dev Bahl of Murray Fenton

    India speaking at Tanker Operator s Mumbaiconference called for more uniformity and saidfor example, there were fundamentaldifferences in approach between class and theOCIMF SIRE inspections.

    Class will deal with a specific item, whileSIRE VIQ looks at the causes of anobservation, and asks should they have beenidentified by the ships crew through their operating procedures. He also pointed out thatthe VIQs also take in the positives fromshipboard operations.

    However, there was a certain amount of overlap between the IACS and OCIMFinspection criteria, which could be eliminated.

    He also said that the oil majors interpretedVIQs and risk assessments differently, as

    various specifics comeinto play, includingcharterers, ship andcargo requirements.We have come a longway incommunications and

    must move forward toa uniform system, hesaid.

    Capt Bahl said thathe sympathised with aships crew who wereunder tremendous

    pressure. He said thathe was aware of theeffort put in to getthrough an inspectionsuccessfully

    First impressions, as outlined by the ICS,should be avoided when walking up thegangway, for instance, who is meeting theinspector and how is he greeted. He said thatan inspector can see through first impressionsafter a couple of years.

    Quayside observationFor example, before boarding a ship, aninspector should walk down a quayside or terminal and look at the moorings, shipsmarks, crew working on deck, etc, as the crewwill usually be ready for an inspection on

    board. On board, pre-inspection meetings andagreeing the order in which an inspection iscarried out were also recommended practices.

    He also said that the factors influencing aninspectors comments are;

    What is the defect?

    Where is it?What is wrong with it?Capt Bahl stressed that the way forward wasto put less pressure on the crew and have moreuniformity in the various inspections.

    He accused the shipping industry of not being very forthright with technology, unlikethe aviation industry.

    He also stressed that it was not in the oilmajors interests to eliminate a tanker from itsSIRE pool, due to creating less competition

    between the vessels in the pool. T O

    Vessel inspections have been often debated in the light of the shear number of visits aships Master and the crew has to put up with when arriving at a port or terminal.

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    INDUSTRY - MANNING AND TRAINING

    April 2015 TANKER Operator 15

    This has created a brighter way totrain and assess students from the150 major shipping company

    clients in the classroom, thecompany claimed.

    Using the new technology via projectors, theassessors, instructors and students have thedynamic ability to continuously change theCOLREGs situation, in a variety of meteorological conditions, from any aspect of any vessel, ie port or starboard, birds eye, helm

    positions and free orbital.Long gone are the days of using ROR flip

    cards and magnetic smartie boards, ECDIS Ltdsaid.

    This complex database of a variety of vesselsand ports, enables the instructor to changeeverything, including vessels lights, pennantsand hoist shapes.

    The technology behind this system is very

    complex using a physics engine for water simulation and seabed collisions, arrangedtogether in an easy to use drag and drop style

    of play. In the hands of company instructors,this is a powerful tool, giving the ability tocreate fresh teaching aids within minutes,demonstrated in real time, the company said.

    This gives the trainees an understanding of critical situations and how the appropriatemanoeuvres should look, not only from their own ship, but also how the same situationwould, could and should look like from other vessels viewpoints. The trainees then take thistheory from the classroom and put it into

    practice in the full mission bridge simulator

    (FMBS).This is a seamless transition for ECDIS Ltdand the possibilities of learning are endless,especially so when it comes to simulator training, the company claimed.

    Robyn Harrigan, ECDIS Ltds training and production manager told Tanker Operator thatthe company uses a basic third party software,

    which is enhanced in house by 3Denvironmental artists, who are veryexperienced in their field for creating vesselsand ports as 'real life' as possible.

    We have found this vital when usingsimulators for training as these small life likedetails increases the quality of the courses andthe overall experience for the students, shesaid.

    The great thing about this bespoke piece of training software is that, it is on hand in theclassroom in addition to the bridge simulator.

    Therefore, a company can decide to send their officers for classroom based theory training, bridge team discussions and or revision, inadditon to having the use of the bridgesimulator for assessments, she explained.

    Improved method of

    training andassessing COLREGS

    The COLREGS situation can be continuously changed.

    UK-based navigational trainer ECDIS Ltd has recently utilised new simulation trainingtechnology for COLREGs (collision regulations) teaching aids.

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    INDUSTRY - MANNING AND TRAINING

    He explained that once a tanker enters a market, it usually

    remains in that market. Thevessels operational expenses

    (opex) will rise or fall depending on thatmarket.

    He described opex as being a factor of four items - size of vessel x wages and subsistencex stores, supplies and expenses x fuelconsumption (not fuel costs).

    The size of the vessel and the fuelconsumption are a fixed input, while wagesand subsistence plus stores, supplies andexpenses he described as elastic and plastic by

    nature.He thought that the fixed input items werevery elastic due to improving technology,

    better engines, new initiatives, etc.However, the other two considerations were

    elastic but very plastic since 2000 - labour being unresponsive, new regulations, vettingand other local requirements.

    He described the tonnage density in asegment as plastic as it does not change. It isimportant to know in which segments there isdensity economics and where there is densitydis-economics, he said.

    He then described Factor K, whichmeasures the opex response to a change intonnage. For example, if K is 0.4 then for every 10% increase in the tonnage size, theopex effect increases by 4%.

    If K equals 0, then opex is perfectly elasticto increase in size and wages/subsistence andstores/supplies/expenses are responsive asrequired.

    In this scenario, opex is not actual, but is afactor against earnings. Density economics istherefore expressed as -

    ED = 1- K.ED = (+) is density economics.ED = (-) is density dis-economics.

    He outlined the historical K values as -

    35 40,000 dwt = 0.045.25 - 35,000 dwt = 0.06640 50,000 dwt = 0.199< 25,000 dwt = 0.351Up to 150,000 dwt = 0.41 0.65>150 000 dwt = 0.892

    He explained that we need to know all of thisas it gives more correlation to marketconditions, encourages focus groups incompanies, helps owners win the earningssituation they find themselves in and identifiesstress group vessels.

    Gupta warned that shipboard competencelevels were falling, as the more experienced

    people were to be found onshore, thus theshipboard support needs to increase, so certainsegments should be invested in, includingtraining.

    How do you persuade owners to invest intraining? he asked. Show the owners thedifference in spending by using the

    competence and support from the shore andtry to prove that extra expense is beingincurred.

    Putting opex in a bit more perspective,

    Gupta gave a breakdown as follows -Crewing costs = 55%Stores = 6%Spares = 7%Lube oil = 8%Provisions = 3%Repairs/maintenance = 5%Insurance = 12%General = 4%

    In ideal conditions, Gupta proposed that third party shipmanagers should understand theopex inflexibility in the market and the high

    plasticity in the two factors outlined above.An owners perspective should be

    understood by correct market density statisticsand response. The vessels management should

    be aligned and focus groups created. The costvariables should also be reduced for owners.Owners specific needs should be identifiedand operational expertise should be increased.

    Gupta said that the big pool players are

    beating the statistics by a large margin, but the pools where the K value will hurt the owner should be targeted to help them ride the market

    better.

    Shipmanagers should

    understand ownersneeds

    T O

    Third party shipmanagers need to understand the market their owners are involved insaid Capt Deepak Gupta of Univan Maritime, speaking at

    Tanker Operator s Mumbai conference.

    An attentive audience listens to the speakers.

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    April 2015 TANKER Operator 17

    The money will be used by theMaritime Cluster Fund for Manpower Development (MCF-MD), an existing programme being

    run by the Maritime and Port Authority of Singapore (MPA).

    MPA is committed to building a strongcore of local talent in the maritime industry,

    which offers diverse career opportunities for Singaporeans in both seafaring and shore-

    based jobs, said Andrew Tan, MPA CEO.The enhancement to the MCF-MD

    programme not only lends strong support tothe national-level SkillsFuture initiative butalso allows us to support more skills-based

    learning, upgrading and re-skilling for thosewho want to switch careers.

    MPA formed two task forces: the tripartitemaritime manpower task force for seafarersand the maritime manpower task force for shore based sectors, in May and November 2014, respectively.

    The seafarer task force was set up to

    develop measures to encourage Singaporeansto take up seafaring careers and improveretention of talent, through training grants andachievement awards.

    To complement the efforts of this initiative,MPA will set aside an additional S$6 mill($4.3 mill) over the next five years to award

    up to 20 scholarships each year, double thenumber awarded in previous years. To date,more than 130 scholarships have beenawarded.

    The shore-based task force will developstrategies to help maritime companies fill

    positions for critical shore-based jobs. A keyarea to be pursued is the re-training of locals

    to convert from seagoing to shore-based jobs.The task force will also develop a

    programme to equip non-maritime personnelwith relevant skill sets so they can pursue amaritime career. This task force will first focuson jobs in areas such as port operations, shipoperations and shipbroking.

    Singapore to fund

    trainingSingapores government has allocated S$65 mill ($47 mill) to maritime training.

    nk CleaninThaping the Futu e of

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    TANKER Operator April 201518

    INDUSTRY - MANNING AND TRAINING

    UK cluster co-

    operation evident ineducationThe UK county of Hampshires Portsmouth/Southampton corridor is fast becoming a

    major maritime cluster, which includes specialist maritime education and trainingfacilities available for all levels.

    For example, last year saw LloydsRegister open a new globaltechnology centre (GTC) on the

    campus of the University of Southampton University. LR said that themove to join the Southampton Marine andMaritime Institute (SMMI) will enable theclass society to offer a first class global marineresearch and technology network.

    LR also said that its move was made tostimulate innovation, create new business andestablish Southampton and the SouthHampshire region as a magnet for investment.SMMI director Prof Ajit Shenoi said that therewere three ways in which the partnership with

    LR is likely to have an impact;Education and co-location will improve the learning process with students and

    graduates benefiting as they become moreemployable.Impact it will have on fundamentalresearch.

    Importance of the here and now - whileshaping the future, we have to think aboutthe industrys short term problems.

    Its about creating n environment where freethinking around radical new ideas can shapethe future agenda. Its about giving thought towhat will be on the agenda in five or 10 yearstime and giving people the space to think sofar ahead requires the environment that thisnew initiative will create, Prof Shenoi said of the GTCs opening.

    Shell is to sponsor a professorship at SMMI.Dr Grahaeme Henderson, vice president, ShellShipping and Maritime, speaking about the co-operation said, Shell is firmly focused on

    contributing to world class academic researchand cutting edge technology developments for the maritime industry. Our recent sponsorshipof a Professorial Chair for marine andmaritime technology at the University of Southampton underlines this commitment.

    The UK is a global leader in shipping and

    the Marine and Maritime Institute at theUniversity of Southampton has proven itself to

    be an internationally recognised centre of

    excellence. The University has a long historyof maritime activities and an immense wealthof interdisciplinary technical research anddevelopment in this field.

    The creation of LRs GTC at theUniversity of Southampton is good news for the industry, he concluded.

    During a couple of visits to Hampshirerecently, it became apparent to Tanker Operator that the level of co-operation

    between industry and learning/researchinstitutions was growing rapidly.

    Another example is Fareham CollegesCentre of Excellence in Engineering &Manufacturing Advanced Skills Training(CEMAST), which has combined withindustry to offer engineering apprenticeships.

    From last year, school leavers up to UK GSCE standard can now take a one year City

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    INDUSTRY - MANNING AND TRAINING

    April 2015 TANKER Operator 19

    ...showing the way

    A member of the B Hepworth Group of companies

    Known around the world for itsperformance designed wiper systems, B Hepworths FabricationDivision offers a total service incustom-made fabrications in a widerange of metals and forms, frompowder coated masts to highly polished deck equipment.

    www.b-hepworth.com

    HEPWORTH MARINEI N T E R N A T I O N A L

    B Hepworth & Co Ltd4 Merse Road, North Moons Moat,Redditch, Worcestershire B98 9HL

    T +44 (0)1527 61243E

    [email protected]

    Fareham College is offering marine engineering courses to school leavers and others.

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    TANKER Operator April 201520

    INDUSTRY - MANNING AND TRAINING

    and Guilds Level 2 Diploma in Engineering(Marine).

    This course is designed to provide aspecialist work-related qualification andtraining in marine engineering. It providessound preparation for those seeking anapprenticeship or progression to a higher levelcourse such as the National Diploma,CEMAST said.The introductory units cover:

    Introduction to the marine industry.Health and safety requirements.Marine terminology.Small boat and marina engineering.

    The apprentices are taught how marine dieselengines work, how to identify faults and howto fix them. Routine maintenance tasks arecarried out on the engines and apprenticeslearn about gearboxes, propellers and other

    means of marine propulsion.Once gaining a Grade 2 diploma, the

    apprentices can then progress to a Level 3Marine Engineering Qualification - AdvancedDiploma in Engineering (Marine), leading to aCity and Guilds extended Diploma inEngineering.

    Level 3 is a two-year full time course andrequires an Intermediate Diploma in MarineEngineering to qualify for this next stage. Thiscourse provides further practical skills andexperience required to progress to an

    apprenticeship or further study (eg, Higher National Certificate/Diploma or anengineering degree).

    It covers a variety of topics and allows anapprentice to study particular areas in depth,including - fault finding, maintenance,diagnostics and engine repair.

    Students can then progress into employmentor on to an apprenticeship within the leisure or deepsea marine sector. The college has manyapprenticeship partners who can conductinterviews on site.

    Those looking to continue their marineeducation can progress through a partnershipto Warsash Maritime Academy where they canstudy up to HND or Degree level. Thosecandidates who have secured sponsorship withan employer can carry out training at sea

    before returning ashore to complete an HNDin marine engineering. CEMAST will alsohelp with the placement of an apprentice.

    The college has also built up a partnershipwith local schools to encourage pupils to takeup engineering by way of for example, fairsheld on the colleges premises and co-operation agreements are in place withWarsash Maritime Academy and Solent,Southampton and Portsmouth Universities. At

    present there are around 900 full time, parttime students and instructors at the faculty,involved in various engineering courses for

    many different industry sectors.Fareham Colleges programme manager for

    work-based and marine engineering KevinAttwood told Tanker Operator that today therewere more electrical and mechanical engineer apprentices coming into training, but there wasstill a shortage, resulting in higher remuneration for qualified engineers. He alsonoted that in general there were more femalestaking engineering courses - around 10% atCEMAST. The centre also takes on 14-year old pupils in its skills academy for one day per

    week training.One of the partnerships involves Fareham- based NuWave Personnel, part of theBachmann Group, which is soon to relocate tosite next to the college near Lee-on-Solent.

    NuWave Personnel was launched in August2002 and since then has registered over 30,000seagoing and shore-based candidates on itsdatabase from all over the world. Thiscompliments the companys expanding client

    base, which now includes tanker owners/operators.

    The company offers recruitment and placement, HR crew management, crewtraining and payroll administration.

    For training, a subsidiary company, NuWaveTraining, offers short courses for bothseafarers and shore-based personnel. Bespokecourses, such as tanker courses, can be tailoredto a companys specific needs, both on siteand on a companys premises at any time,including evenings and weekends.

    Training rooms are available at NuWave or instructors can travel to a vessel anywhere inthe world. The costs are described ascompetitive and depend on the numbers to betrained and the number of courses booked.

    The tanker courses cover crude oiltransfer/liquid cargo handling, crude oilwashing (COW)/tank cleaning and inert gassystems.

    For example, the COW course is conductedwith a simulated model of a Suezmax and a

    product tanker. A liquid cargo handlingsimulator is used to support explanations andto demonstrate COW systems on Suezmaxesand deepwell pump fitted tankers.

    NuWave Training business developmentmanager Keith Austin explained that in someinstances, a seafarer might not have the correctcertification for a certain type of vessel or

    position. To alleviate the problem, thecompany is able to offer a quick specific

    training course to enable that seafarer to joinhis or her designated ship.He explained that some of the courses were

    accredited by the UK Maritime & CoastguardAgency (MCA) and DNV GL and that theinstructor is a serving Master Mariner.

    By offering flexible training solutions, other local marine training academies, such asWarsash or ECDIS Ltd, can make use of thecompanies courses and facilities, Austinsaid.

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    TANKER Operator April 201522

    INDUSTRY - ANTI-PIRACY

    F

    or example, the company has fittedanti-piracy packages on 35 vesselsowned and operated by a Premier Danish Tanker Company and is also

    to install equipment on the new builds at theshipyards.

    Company founder and projects director Wayne Harrison explained that he had idea in

    principal shortly after his first vessel transit of the designated Gulf of Aden/Indian OceanHigh Risk Area (HRA) in the capacity of aMaritime Security Liaison Officer (MSLO).

    On the 31st October, 2010, Harrison was part of a four man team on board a chemicaltanker transiting through the MozambiqueChannel towards Dar-es-Salaam when the

    vessel was attacked and boarded by Somali

    pirates.The attack, including the occupation of the

    citadel and the eventual self-liberation, lasted just over eight hours. At the time, the vessel

    was recorded as the slowest and lowest tosurvive a pirate boarding.

    The security team understood the importanceof hardening the vessel, not just externally withrazor wire but also internally. For example, theteam knew that it was of great importance tohave a safety corridor from the bridge to thesafe room/citadel door. Luckily, the team had

    plenty of time to prepare the vessel and crewfor a hazardous transit.

    Harrison has since lead many teams onvessels through the HRA and down the years,

    he realised that the time to prepare the crew

    and vessel was reducing, mainly due to thehigh day rates charged by armed teams, andsaw the need for a quick and easy solution firsthand

    He also found that many vessels were nothardened by previous security teams with anunderstanding of MoE (Methods of Entry), asimprovised door securing devices fabricated onthe vessel were not tried and tested, thus therewas no knowledge of whether they wouldwork when required.

    Over the past five years, he has invested alot of time and effort in refining an idea he hadfor a universal door chock that can be deployedin seconds by any member of the crew,removed just as quickly for a non-pirate related

    emergency and would stop, hinder and deter

    Internal vessel

    hardening vital todeter piratesUK-based anti-piracy passive equipment supplier Easi-Chock has met with a great deal

    of interest and success since it was founded a few years ago.

    -

    -

    -

    -

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    International Registries, Inc.

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    INDUSTRY - ANTI-PIRACY

    TANKER Operator April 201524

    As has been well documented,there has been a surge of piracyrelated incidents, including thefts,robberies, as well as vesselhijackings for cargo siphoningduring 2014*.Further incidents have already been reportedin the first months of this year. As a result,ships, particularly smaller tankers, shouldconsider taking mitigation and loss preventionmeasures, leading insurance and P&Iassociation Skuld warned.

    There has been a noted increase in thenumber of incidents in Southeast Asian waterswith respect to piracy, as well as other

    physical crimes against crews and vessels.While thefts and robberies, often at

    anchorage, have been a problem for sometime, it is the hijacking of small tankers for the

    purpose of stealing the cargo on board -typically gas oil and similar products - whichhas become a relative new and significantissue.

    During 2014, the IMB noted 16 hijackingincidents and the Singapore anti-piracy

    organisation ReCAAP recorded 11 siphoningincidents. It should be noted that some of these incidents overlap. Thus far in 2015 (mid-March), up to three tankers may have been

    hijacked, according to reports.While the cargo theft issue appears to affectsmaller tankers of below 5,000 gt in particular,some attacks and thefts have been perpetratedon other types of vessels.

    All vessels should therefore take note andseek to implement appropriate safety responsemeasures, Skuld said. The implementation of afunctioning ISPS/SMS Code on board andashore is also important.

    A number of points and issues were raised, based on IMT's review of past incidentinvestigation reports (see footnote below).

    In particular the following steps may beadvisable:

    Participating in the Information FusionCentres (IFC).Sourcing and disseminating IFC alerts, aswell as ReCAAP alerts and information.Using designated safe anchorages inIndonesia - where practical and available.Advance preparation and risk analysis.Hardening plans and implementation on

    board vessels.Practice drills and on board procedures for

    responding to an incident.A particular incident report from the USOffice of Naval Intelligence in December,2014 indicated that where a vessel was well

    prepared, both physically, as well as in crewtraining, it was possible to frustrate the pirates' plans.

    The successful prevention process can besummarised as; Detect, deter, delay and deny.

    Skuld said that it had previously advised indetail on piracy matters, including generalinformation on the Best Maritime Practice(BMP4) and other initiatives. Region specificinformation on piracy is also available.

    Emergency responseShould a vessel be threatened or otherwisehave security concerns then urgent contactshould be made with:

    Nearest Coast Guard or Navy.The vessel's flag state.The ICC/IMB as well as ReCAAP.

    Following contact with law enforcement andother first responders, companies should alsomake urgent contact with their insurers/P&Iclubs should an attack occur.

    *This article was reproduced from a Skuld loss prevention bulletin in turn taken from an

    International Marine TransportationSingapores Safety Alert Bulletin, published earlier this year.

    Southeast Asia - procedures and vesselhardening

    any unwanted aggressor.The result of his labours was the forming of

    Easi-Chock, a company which today offers asuite of products designed to enhance existing

    structures in order to create a completefortified superstructure, Company SecurityOfficers can then opt to implement additionallevels of security devices for their designatedsafe area.

    The products are designed to keep the pirates/robbers out of the superstructure anddenying access to the crew, he explained. Wedo not focus just on the citadel approach withinthe engine room, as many owners andoperators do not employ the citadel method.

    A full vessel package including Easi-Chock, Easi-Grille and Easi-Block aredesigned to be installed by the crew, andremovable when not at risk, the typical cost of a vessel pack for a Suezmax tanker is around$10,000, compared with current traditionalmethods costing two to three times as much

    per vessel, plus the asset is transferable, heclaimed.

    Harrison said that the company was set up to protect life and assets by offering a low cost,effective, time saving suite of security

    products. By embracing the layered defenceapproach, as outlined in the shipping industrysBest Management Practice 4 (BMP4), all

    access points, doors and portholes are securedincluding internal access doors in order to

    provide a safe corridor of access for crew areincluded in Easi-Chock Vessel SpecificHardening Matrix plan.

    He said he believed in the passive system of defence, as coupled with a good understandingof the threat, deployment of good securitymeasures and the ability to remove the crewaway from the threat is key to preserving lifeand securing property.

    Easi-Chock not only focuses on securingthe outer perimeter of the superstructure,

    portholes and doors but all external storageareas, as these areas usually contain items,which have either a value to the aggressors, or could be used against the crew, he explained.

    As well as supplying locking devices, a door bar system is also available, which is similar tothe other equipment on offer, in that they are a

    no weld easy to install system and simply dropin to secure a door. These can be quicklyremoved if required and have been designed to

    protect the bridge internal access door, engineroom access door and emergency exit doorson the accommodation decks. T O

    T O

    Easi-chocks secure door system.

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