TANKER OPERATOR MAGAZINE(May2012)

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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