TANKER OPERATOR MAGAZINE(Sept 2012)

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AUGUST/SEPTEMBER 2012 www.tankeroperator.comTANKEROperatorviait ua at the 8MM 2012, the lnternational Varitime Conlerence and Lxhibition in Pamburg, 0ermany, 4th-7th Setember 2u12, Pall A1, Stand 228WWW. 8hCKhR- MARI Nh- 881hM8. COMInnovative engineering for environmentaIIy friendIy producta.8ecker Varine Syatema lacea ita reaonaibility lor auatainable and environmentally lriendly develoment by continuoualy reducing the environ-mental lootrint ol 8ecker roducta. lurthermore we reaearch and develo energy-aaving roduct innovationa like the 8ecker Vewia Luct. Combined with a 8ecker Rudder, the 8ecker Vewia Luct enablea our cuatomera to aave u to 8 of fueI and to imrove the hhbI ol their veaaela.7 8ecker Vewia Luct have already aaved well over 110,000 t of CO2 until Auguat 2u12. 21u more 8ecker Vewia Luct have already been ordered.CO2 saverAugust/September 2012 TANKEROperator 01ContentsMarketsMark-to market valuationsNews FocusNew IACS chairman airs his viewsGermany Report GLs upgraded Aframax Government funding Marenave in the black Autopilot saves money SMM previewCommercial Operations Helping to reduce costs C/P wording warning CONWARTIME examined Be aware of time barsFront cover At SMM, Becker marine will be showcasing the companys latest steering gear, which is claimed to be the worlds largest. Inaddition, Becker will be showing its various rudders and ducts aimed at cutting fuel costs by up to 8%.viait ua at the 8MM 2012, the lnternational Varitime Conlerence and Lxhibitionin Pamburg, 0ermany, 4th-7th Setember 2u12, Pall A1, Stand 228WWW. 8hCKhR- MARI Nh- 881hM8. COMInnovative engineering for environmentaIIy friendIy producta.8ecker Varine Syatema lacea itareaonaibility lor auatainable and environmentally lriendly develoment by continuoualy reducing the environ-mental lootrint ol 8ecker roducta.lurthermore we reaearch and develo energy-aaving roduct innovationa likethe 8ecker Vewia Luct. Combined with a 8ecker Rudder, the 8ecker Vewia Luct enablea our cuatomerato aave u to 8 of fueI and to imrove the hhbI ol their veaaela.7 8ecker Vewia Luct have alreadyaaved well over 110,000 t of CO2 untilAuguat 2u12. 21u more 8ecker VewiaLuct have already been ordered.CO2 saver3152040849401251Shipmanagement Effective internal audits Shipboard software Wallem joins Nanjing Tankers Shipmanagers help lenders Increasing garbage problem ECA voyage planningP&IEC gives IG the nodPiracyEffective rules neededTechnology52 Ice ClassWhere is the Polar Code?Arctic shipping developmentHelp with NSR transits60 Technical FocusMANs engine hardwarePump upgrades save money64 Tank ServicingBenign crude in tanksBilge level switches Enclosed space videoTANKEROperator

August/September 2012 2COMMENTWhy do we go to exhibitions?TANKEROperatorVol 11 No 8Tanker Operator Magazine Ltd2nd Floor, 8 Baltic Street EastLondon EC1Y 0UP, UK www.tankeroperator.comPUBLISHER/EVENTS/SUBSCRIPTIONSKarl JefferyTel: +44 (0)20 8150 [email protected] CochranTel: +44 (0)20 8150 5295Mobile: +44 (0)7748 [email protected] SALESMelissa SkinnerOnly Media LtdTel: +44 (0)7779 [email protected] year (8 issues)195 / US$320 / 2202 years (16 issues)300 / US$493 / 336Subscription hotline:Tel: +44 (0)20 7017 3405Fax: +44 (0)20 7251 9179Email: [email protected] CheungTel: +44 (0)20 8150 [email protected] by PRINTIMUSUl.Bernardynska 141-902BytomPoland A visitor to a shipping exhibition from Mars andthere might well be soon given that a craft haslanded on the planet could well be lured into afalse sense of security.Upon viewing the many halls stacked with booths of all shapes andsizes and covering nearly every segment of the industry, plus the shearvolume of people encountered in the hallways, he or she wouldautomatically conclude that there is nothing wrong with this industry.Why is it then that during one of the worst recessions on record,shipping exhibitions flourish? Is it to do with the often held belief thatduring bad times, companies should expend more energy on sales andmarketing? So why do shipping exhibitions draw the crowds, pack the hotels,bars and restaurants in the host city, despite inflated hotel prices and thecurrency fluctuations, especially recently? Is it the networkingopportunities where company representatives can talk to their clientsface to face and market their wares to potential clients in a selectedshipping hub?In Europe, the exhibition concept really took off in the 1970s aidedby increased and cheaper air travel and better facilities in terms ofhotels and exhibition centre services. They were often organised byleading shipping publishing houses who saw a market to be exploited.Although there are a few exhibitions, which have come and gone, theones that we now think of as the majors, have since flourished.Asia catching upAsia is following and from a small beginning is now starting tochallenge the might of Europe in staging events. There are alsospecialised exhibitions and conferences aimed at a certain segment ofthe industry, for example, offshore, gas, workboats and tugs. They havealso built up a loyal following.However, it is the majors that still hog the limelight, as where elsecan you see up to 50,000 shipping people in just three or four days. Bythe majors, we mean Nor-Shipping, Posidonia, SMM and possiblyEuroport in Europe, while Marintec, Kormarine and the Singaporeexpos, represent the major Asian input today. At the beginning of September, we are all packing our bags forHamburg, Tanker Operator included. It is time for SMM (see page 21). German companies have has always been at the forefront of technicalinnovations and in the main port cities, shipmanagement concerns haveflourished under the weight of tonnage built and ordered under the KGinvestment system, as have the service companies who look aftervessels calling at the ports, some of which are among the largestin Europe. I suppose one of the key talking points at the exhibition and theconferences will be finance, or lack of it. With the KG system all butdead, German shipping companies are looking at other means offinancing their assets. This should be meat and drink to the SMM ShipFinance Forum, which will no doubt see a good attendance. Energy efficiency on board ships is another hot topic as the day ofthe eco-ship has arrived, mainly driven by international and nationalregulations, plus the constant efforts of the IMO to stay one jump aheadof regional regulators. No doubt the arguments will rage over the merits of distillates,scrubbers, or the use of LNG as fuel, to cope with the worldwidephased lowering of emissions soon to be implemented. It seems thatthis subject is dividing the industry with diverse opinions regularlyaired. Security hallMaritime security has also come to the forefront in the past few yearsand to encompass the ever growing number of security forms croppingup, the SMM organisers have dedicated a hall entirely to their needs, aswell as hosting a conference on the subject. Similar to most major exhibitions, SMM tries to pack each segmentof the industry into its own dedicated area, or hall, or makes use ofnational pavilions. For example, we will see all the machinery,communications and navigation IT, in their own halls. What a companymakes of being next to their rivals is anybodys guess. However, itseems to work. The big spenders in terms of exhibition space tend to be the Asianshipyard associations, in particular the Chinese, South Korean andJapanese. With new orders tight, the competition to have the bestdisplay will probably be even more severe. Certainly the bars and restaurants around the Alster Lakes, the RiverElbe and other popular areas of Hamburg, will be hoping for a bonanza.But will the visitors spend money? This was the question posed at Londons recent Olympic Games andby and large, they did, perhaps not sufficiently in the retail areas, but ongeneral living expenses. I was pleasantly surprised by the activity surrounding this yearsPosidonia exhibition, despite being held at a time of the playing out ofa Greek tragedy. I hope the same can be said for Hamburg upon myreturn. TOINDUSTRY - MARKETSTANKEROperator

August/September 2012 4Mark-to-marketvaluation challengesHow confident are you that you know the true value of your business on any given day?Are you 100% certain that you have the means to accurately calculate your fleets mark-to-market value?Javier Navarro, freight risk solutionsmanager at Triple Point Technologysaid that if you hesitate to answerthese questions, your companysfuture may be at risk.In the shipping industry, understanding thetrue market value of a fleet is the differencebetween sinking and swimming. Volatilityrelated to the number of available cargoes andvessels, operating expenses, such as bunkerfuel costs and other variables mean that afleets value has the potential to swing wildlyfrom one day to the next. Performing frequent mark-to-market(MTM) valuations is an integral part of doingbusiness and is critical to ensuring thefinancial health of a commercial shippingoperation. However, due to the highlyunpredictable nature of the industry, thecomplexity of calculating freight rates andflaws inherent in popular valuation methodsand tools, companies often end up withinaccurate numbers. This provides a falsepicture of financial standing that can result inlost profits, faulty decision-making andultimately the demise of an entire business. Fully understanding the challengesassociated with calculating accurate MTMvaluations and how to address them is criticalto staying afloat in the cut throat shippingindustry.Adjusting freight rates The first of these challenges is adjustingfreight rates. The value of commodities inmost markets is transparent and easilydetermined at any point in time by looking atan index. But the freight rates that play such alarge part in determining a fleets MTMvaluation are not so clear.The indices for freight rates, provided onthe Baltic Exchange, only take into accountcertain standard vessel sizes and a limitednumber of standard routes. In reality, very fewvessels are a standard size, or performstandard voyages. In order to determineaccurate freight rates, operators and charterershave to use complex formulas to adjust theindices to account for the proper vessel sizesand routes. This is frequently done using antiquatedspreadsheets, a method that is prone to humanand formula errors that lead to inaccuraciesaffecting the MTM valuation of the entireportfolio. Overvalue the fleet, and there willbe a very rude awakening when an unexpectedevent requires funds that were assumed toexist, but are nowhere to be found.The second challenge is gaining a clearpicture of another important factor in MTMvaluations - the value of multiple voyages. Avessels activity is often uncertain, particularlywhen there are multiple voyages involved. Inthese circumstances, a valuation can only bebased on a best guess about what thesubsequent voyages will be. This uncertainty combined with dependence on error-pronespreadsheets only adds to the difficulty ofproducing an accurate MTM valuation. If depending on antiquated spreadsheets forperforming critical calculations is bad enough,depending on subjective information is evenworse. And so the third challenge isovercoming the highly personal and oftenskewed views of the market that manycompanies use to perform their MTMvaluations. It should go without saying thatthis subjective input can result in veryinaccurate numbers that obliterate all hope fora valid valuation. The first three challenges lead to thecreation of an erroneous MTM valuation, butthe fourth is what happens once thoseinaccurate valuations filter through to thedecision-making process. Timechartercontracts specify the minimum and maximumtime a charterer will use a vessel. The accuratemarket value of a vessel must be known inorder to determine whether it should be keptonly for the minimum contracted time, orlonger. If the data driving that valuation isfaulty, then the resulting decision is also likelyto be flawed and a charterer may end uphanging on to a vessel that is losing money. What makes this worse is that manycompanies limit themselves to using simplisticin-the-money/out-of-the-money calculations todrive valuations instead of other, morecomplex methods that are more accurate -purely because the more complex methods aredifficult to manage in a spreadsheet. Companies using the in- and out-of-the-money calculation stand to lose a significantamount of capital, especially when the marketis close to the level of the contracted hire rate,because the formula is not sophisticatedenough to effectively account for the frequentswings of the market.The above challenges can be conqueredwith specialised solutions thatcomprehensively manage freight risk,chartering and vessel operations on a single,integrated platform. Unlike antiquatedspreadsheets, these solutions provide completetransparency across all aspects of the business,presenting an accurate view of a companysexposure and financial standing in real-time. What to look for: Robust freight risk management: It is key that the chosen solution provides a real-time view of the position, including timecharter contracts, freight forward agreements, contracts of affreightment, cargo bookings and financial options. The system should enable you to compute accurate freight rates with just a few mouse clicks and allow the saving of non-standard routes in the system that can be used to drive the calculations. It should also manage bunker exposure from physical contracts and bunker swaps. Multiple valuation methods: Its imperativethat the system selected is able to perform an accurate MTM valuation within seconds. It should also allow the application of multiple valuation methods (ie in- and out-of the money calculations; physical option intrinsic value calculations)that can be used to objectively drive important decisions including how long a vessel should be kept. Multiple voyages should also be easily valued. Chartering management capabilities: Thesolution ought to provide the ability to manage all pre-fixture activities of a (Continued on p7..)If youre tired of rising SATCOM costs, come on over to the mini-VSAT Broadband world!Get KVHs new reportComparing KVH mini-VSAT Broadband to Legacy Solutions at:www.minivsat.com/oneHow did KVH become #1 in maritime VSAT?**Euroconsult Report, March 2012 and NSR, May 2012K 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.AffordableReliable Small FastGlobalVersatile one-dome hardware solutions for any vessel or applicationantenna dish diameter37 cm (14.5") 110 cm (43") 60 cm (24")Meet us at SMM, Hamburg, September 4-7 Stand #B6.405 & Outdoor Stand #B5.FG.017 2012 KVH Industries, Inc. KVH, TracPhone, and the unique light-colored dome with dark contrasting baseplate are United States World HQ: M M t S s a t u e e M 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 Em e t p e , S g r u b m a , H M 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 Asia-Pacific HQ: [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 E4 . 6 B d # n a t 7 S - r 4 e b m 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 Ed # n a t r S o o d t u 5 & O 0 4 registered trademarks of KVH Industries, Inc. mini-VSAT Broadband is a service mark of KVH Industries, Inc. +65 6513 0290 [email protected] 1 0 . G F . 5 B d #TANKEROperator

August/September 2012 06INDUSTRY MARKETSDisclosure of market valueAn increase is expected in thesort of pressure recentlyexerted on shipping companiesby the US Securities andExchange Commission (SEC) tomake disclosure when themarket value of their vessels isless than their carrying value.According to UK-based accountant andshipping industry adviser Moore Stephens,the pressure for this type of disclosure, oftenreferred to as incipient impairment, wasreflected in the 2011 filings of many SECregistrants. Moore Stephens partner David Choppingsaid, The SEC has seen impairment chargesin the accounts of a number of shippingcompanies in the last few years. But it hasapparently not seen quite as many as it mighthave been expecting. It is easy to understandwhy the SEC, and others, might considerdisclosure of market value to be usefulinformation and want to see it more widelydisseminated. It is more objective than valuations basedon management estimates, it is morecomparable across companies, and it setsbenchmarks against which companies ownpolicies can be assessed. Indeed, for someparties, the information might seem far moreimportant than valuations based on projectedfuture income streams. At the same time, it is equally easy tovisualise objections to such disclosure.Values are to be determined on an unfixedbasis, so are arguably of only limitedrelevance where vessels are fixed for fairlylong periods with high-quality charterers.Similarly, while values may lookcomparable, if the fixture position differssignificantly, then such comparability mightbe considered spurious. And even if a vesselis operating in the spot market, or a fixture isgoing to be ending shortly, while otherobjections might be less compelling, thereare still concerns about the volatility ofmarket values. How relevant is a valuation at a point oftime in a volatile market where an assetmight have many years still to operate?Nonetheless, it seems very unlikely thatthe SEC will change its mind and decide thatsuch disclosure is not useful. It is far morelikely that other bodies, and indeed investors,will start expecting to see such information.This can happen without any need forchanges in the rules, and indeed the SEC hasnot explicitly changed the disclosurerequirements. It seems to have relied moreon the Al Capone approach of a kind word;everyone already knows it has a gun! heconcluded. TANKEROperatorconference A Technology and methods for cost management in tanker operations Prime mover optimisation, spending prioritisation, simplifying onboard operationsSAS Radisson, Hamburg September 19 2012 Karl Jeffery, publisher and event organiserTanker Operator Magazine [email protected] 150 5292Mel SkinnerSponsorship [email protected] +44 777 252272Making money in a difficult marketMaking money in a difficult marketContactProduced in association withSpeakers:Stephan Polomsky, managing director of Offen Tankers (keynote speaker)Ulrich Paulsdorff, managing director, Wallem ShipmanagementMark Bull, loss prevention manager, Liberty One ShipmanagementJose Milhazes, business process manager, Stolt TankersJan Erik Rasanen, business manager, Energy Solutions, ABB MarineDimitris Lyras, director, Lyras Shipping (chair). Free event - Register now to secure your placewww.tankeroperator.com/hamburg.htmImproving economic resilience INDUSTRY - MARKETSAugust/September 2012 TANKEROperator (Continued from p4..)commercial operation including voyage estimating, cargo management, and vessel management. For charterers, its important to be able to analyse potential profit or loss before making an agreement to transport cargo. You should also be able to easily view all upcoming cargo commitments or open tonnage positions, as well as view all vessels and when they are coming open within a given date range or specific zone. Comprehensive voyage and vessel management: Operators should ensure the solution selected enables them to keep track of day-to-dayoperations: arrival, departure, loading, discharging, bunkering and disbursement accounting. The solution should also maintain a technical and commercial description of vessels for improved controland efficiency.In addition, because constant change is the norm in the shippingindustry, ensure a solution is selected that is flexible and scalable. Itshould be able to grow and change along with the business. Protecting the bottom lineAccurate MTM valuations are critical to protecting profits andremaining competitive in the maritime industry. Too many companiesare unwittingly jeopardising their bottom lines and incurring significantenterprise risk by using inaccurate information to determine their fleetsvalue and make important business decisions. These companies are operating in dangerous waters, risking lostprofits that could ultimately cause their entire business to go into anirreversible decline. These are treacherous times and in order tomaintain profit margins and remain competitive, commercial owners,charterers, and operators must embrace technology solutions that ensureaccurate MTM valuations and provide complete transparency across theenterprise. Companies that invest in scalable technology solutions with theflexibility to address current and future requirements can expect to reapimmeasurable returns by maximising profits, minimising risks, andultimately achieving a bigger bottom line, Navarro concluded.TOclosed gaugingThe HERMetic UTImeter Gtex is a portable electronic level gauge for closed gas tight operation.The unit is used for custody transfer, cargo control measurement and free water detection on marine vessels. Connected to a HERMetic vapour control valve, the UTImeter Gtex avoids any gas release during operation and enables 3 measurements in one single operation: ullage, temperature and oil-water interface level.

Honeywell Tanksystem helps customers improve business performance.International trade fair Hamburg, Germany4 - 7 September 2012Hall B5, Stand 323Meet us @ SMM 2012For more information: www.tanksystem.comTel. +41 26 919 15 00E-mail: [email protected] 2012 Honeywell International, Inc. All rights reservedTanker orders creep upWith new orders difficultto secure, South Koreanyards may be betterplaced to survivetodays difficult market. This is reflected in the fact thatthese yards have taken 55% of allnew tanker orders placed so farthis year (beginning of July),Gibson Research said, as demandfor eco ships takes off. Good packages are available,while newbuilding prices formost tanker types have fallen byabout one third since thebeginning of 2008, Gibson said. New orders placed during the1st half of this year indicated thatwe are likely to exceed last yearstotal, which was exceptionallylow for all types of shipcontracting. For example, firm orders for52 MRs were placed in 1H12,already exceeding the last threeyears annual totals. Not surprisingly, Suezmaxordering has shown the largestdecrease with just three ordersplaced in 1H12. The currentmarket doldrums appears to haveplaced the lid firmly on a freshwave of tanker demand even attodays prices. What we dont need to see is afresh round of speculative orderstowards the end of this year whenthe tanker market is expected topick up ahead of winter demand,Gibson said. NEWS FOCUSTANKEROperator

August/September 2012 08IACS to take a moreactive roleNew IACS chairman LRs Tom Boardley- recently outlined the intended programmefor his 12-month tenure at the head of the class society association.Boardley said that IACS wascoming out of the uncertaintysurrounding the EUs anti-competition rules into taking amore active role in various industry forums. He explained that meetings have alreadybeen held with many industry bodies and moreare planned to discuss how best the shippingindustry can meet the technical challengesthrown up by the plethora of regulations soonto come into force, or under discussion, at theIMO. The main areas to be looked at are thepracticalities of any new rules in day-to-dayvessel operations, such as the ballast watertreatment issue. The insurance industry is also beingengaged to exchange information onminimising risks, which the class societies seeas one of their critical roles. As IACS chairman, Boardleys short termagenda is to fine tune the harmonised commonstructural rules (HCSR). The initialconsequence assessment reports for the HCSRwere released for industry review at thebeginning of July, which in effect was the startof the official consultation process. It is hopedto adopt the rules for newbuilding tankers anddrybulk carriers during 2014, once a reviewhas been undertaken in March/April next yearwith the aim of publishing the new rules inDecember 2013. He said that this particular piece oflegislation will be time consuming to bring tofruition and it will be the major issue duringthe coming year. There are also various technical issues withthe ECAs, more of which will come on streamshortly. We will not try to frustrate theregulations, but will address the practicalissues thrown up by the rules, he stressed. Hewarned; If you dont understand the detailthen you dont understand the problem.IACS had significant input into the ILOsMaritime Labour Convention (MLC) toLRs marine director Tom Boardley. www.api-marine.com NEWS FOCUSAugust/September 2012 TANKEROperator EcoMATE System for monitoring of fuel consumption and bunkering

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provide uniformity. Another of the tasks is to re-assert the 13-member organisation as aquality association with a stronger voice at the IMO, by way of a veryactive role in technical support for the flag states members. As well as the IMO, Boardley said that he was keen to increasedialogue with the various EU departments, including EuropeanMaritime Safety Agency (EMSA), which will have a new man at thehelm later this year - Markku Mylly of Finland - who has beenappointed as EMSAs new executive director, taking over from Willemde Ruiter.Audit programmeAs part of the push to raise IACS members quality standards, eachclass society is being audited by their own appointed concerns. Since1st January 2011, the audit and assessment of compliance has beencarried out by independent Accredited Certification Bodies (ACBs).Having now been in operation for nearly two years and given theproven benefits resulting from previous end user workshops, IACS willconvene a 2012 workshop later this year between its members and theirACBs to reflect on their joint experiences of the scheme and to discussany possible adjustments deemed appropriate to ensure it continues tomeet fully the demands and needs of all stakeholders for a robust andconsistent scheme of certification of its members.The association will also be inviting flag administrations,classification societies, ACBs and other interested stakeholders thatmight have attended previous end user workshops to participate in the2012 workshop to be held in Mumbai this November.IACS permanent secretary Derek Hodgson explained that the 13-member association would welcome more members, but no classsociety had applied for several years, which he thought could be downto other societies not coming up to the associations criteria.He confirmed that the Indian Register was now a full member againand the Croatian and Polish Registers had rejoined, following a periodon the sidelines.Helping Boardley in his year of office is LRs head of external affairs,marine business, Konstantin Petrov who runs the chairmans secretariatfor the 12 months duration. Around 95% of the work is undertaken by correspondence and thereare usually between 150 and 180 subjects being discussed through 11project teams.Previous chairman Russian Registers Pavel Shikhov remains as vicechairman, as is RINAs Roberto Cazzulo, who will takeover thechairmanship from Boardley next year. TOIf you dont understand the detailthen you dont understandthe problem.Tom Boardley, chairman, IACSTANKEROperator

August/September 2012 10NEWS FOCUSVe|||ag ea4 I!B 0e|e|eseCDISIREPort State ControlFlag State InspectionsClass InspectionsShip Visit ReportsInternal AuditsNavi AuditsMarine Injury ReportsVessel/Cargo damagesMachinery damagesEnvironmental incidentsNear MissesNon ConformitiesFleet ReportsNear Miss ReportsManagement ReportsOverdue Items ReportShip ReportsOil Major ReportsVetting Status ReportInternal vs. External DecienciesKey Performance Indicators [email protected] QuestionsMost frequent DecienciesMarine Injury Report IACS Harmonised Common StructuralRules (HCSR) The first draft IACS HCSR wasreleased at the beginning ofJuly. As part of the agreed process ofdevelopment, IACS said that it had invitedindustry to offer comments on all parts of thedraft rules prior to year-end 2012. Feedback should be submitted via e-mailto [email protected] IACS said.The Common Structural Rules (CSR) fordouble hull oil tankers and bulk carriers wereadopted by IACS Council in December 2005and came into force in April 2006. These two sets of rules were developedindependently and there were some variancesin the adopted technical approaches for someof their elements. To remove variations andachieve consistency, IACS made acommitment to harmonise the CSR. Thisharmonisation project for the two sets ofrules began in 2008.The project also set out to achieve fullcompliance with the IMO Goal BasedStandards (GBS), which will come into forcein the middle of 2016. With this objective inmind, this first release of the draft HCSR andtechnical background are in compliance withthe IMO Goal Based Standards (GBS),where functional requirements fall within thescope of these rules.The harmonisation project has nowdelivered a single set of rules comprised ofcommon, harmonised requirementsapplicable to both oil tankers and bulkcarriers with specific sections of additionalrequirements applicable to each ship type. Presentations of the draft HCSR are beingplanned for September in Busan, Shanghai,Tokyo, Houston, London and Athens.The harmonisation of the rules involvedextensive technical work, testing andcalibration and now comes a period for themaritime industry and other stakeholders toreview the draft HCSR and raise questions,observations and general feedback, IACSsaid.This initial industry review period will befollowed by a second in the Spring of 2013and a review by IACS societies technicalcommittees in the Autumn of 2013 with aview to adoption of the HCSR by IACSCouncil in December 2013.Knowledge centreTo help with this task, IACS has set up, onthe IACS website, a Knowledge Centre(KC) where questions, observations andfeedback can be found. In addition tooffering support during the review period,the KC will act as a depository ofknowledge, explanations, commoninterpretations and understandings, as well asfacilitating the management and maintenanceof the HCSR in the future - thus facilitatinguniform implementation of the final rules. IACS chairman Tom Boardley estimatedthat to get to the final objective of entry intoforce scheduled for 2014, the project willhave cost 9 mill. INDUSTRY - GERMANY REPORTTANKEROperator

August/September 2012 12GL unveils upgradedAframax designFollowing the launching of GLs Aframax conceptual design, developed in co-operationwith the National Technical University of Athens (NTUA) about four years ago, the class society has introduced a new design following feedback from shipyards and tanker operators. 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 The new design concept developed,called BEST-plus, incorporatesmany facets of the original designenhanced by the integration ofhydrodynamic optimisation of the hull formand thus, offering further reduction in fuelconsumption and emissions. GL and NTUA again co-operated to developtheir latest design concept and this time weresupported by FRIENDSHIP Systems a GLconcern, which provided the companysframework computer aided design (CAD) andcomputational fluid dynamics (CFD)integration platform. Based on current growth rates, oil transportdemand is forecast to be lower than tankersupply for the next couple of years, However,even a small change in demand will open upopportunities for new Aframaxes from 2014,GL said. An analysis undertaken by GL showed thataround 20% of existing Aframaxes will be atleast 15 years of age this year, which couldtrigger replacement activities, the class societysaid. GL said that the new BEST-plus designanticipates this replacement demand byintegrating only the technologies that existtoday. It targets the typical Aframax trades inthe Caribbean. Facilities in the main US Portsand in the US ECA set the operatingconditions, the class society explained. IfMexico becomes part of an ECA region, some30% of the transit distance would be inside anemissions control area, GL said. The latest design assumes the vessel ispowered by using MGO as a fuel when sailingwithin an ECA. However, both LNG as a fueland the use of scrubbers are considered asalternatives to the basic design concept. The need for a relatively high speed, whichwas mentioned by operators active in theCaribbean trades, must be considered withregard to the forthcoming EEDI requirementto ensure the vessels superiorcompetitiveness, GL said. Addressing the need for safer tankers, theconceptual design is aimed at reducing the oiloutflow in case of an accident. It alsocontributes to greener shipping by improvingenergy efficiency and thus reducing CO2emissions per unit transport. In addition, thedesign is claimed to reduce fuel costs by usingan optimised hull form and also increasingrevenues by offering greater cargo capacity,the class society said.An advanced optimisation environment wasused for the design approach, which integratedtools to predict the required propulsion power,stability, oil outflow, cargo capacity and hullstructural scantlings. These were achievedthrough the linking of the Friendship-Framework with SHIPFLOW, NAPA andPOSEIDON and by using parametric modelsfor the hull form, layout and structure,respectively. As a result, the design concept offersimproved cargo capacity with optimum speedperformance. The main particulars arecomparable with similar size Aframaxes. The optimisation targeted speeds at threedifferent drafts, a cargo capacity taking intoaccount cargo volume and mass, hull structuremass, cargo and ballast tank layouts, as well asdouble hull width and height, which determinethe oil outflow volumes in accidents. Relateddesign parameters were systematically variedand about 2,500 design variants weregenerated and assessed. Cost of transport ratio of annual capital,fuel and other operating costs to annuallytransported cargo mass normalised withrespect to the reference design, was used asthe optimisations primary target function. Thecapital costs were based on $58 millnewbuilding price and a 25 year lifespan. Fuelcosts were computed according to a dedicatedround trip model with HFO at $500 pertonne and MGO at $800 per tonne for theCaribbean trades. The other opcosts wereconstant about $3 mill per year based onMoore Stephens Opcost 2009. The reference design for comparingAugust/September 2012 TANKEROperator 13INDUSTRY - GERMANY REPORTLerLon|L1S/S.lgravegenJ,6060Hared,lorwag.1e.+d00'J00.lax+d00'J0J.Lna:post_jets.no1hepatentedVacUUnarator"pUnpsthenostconpact, effcent and reabe vacUUn generator avaabe for vacUUn toet sgstens. www.jetsgroup.comSanitary Systems made to pl easetransport costs was an existing pre-CSRtanker, which was also used in GLs 2008study. Compared to the reference design, a 7%improvement in transport costs was realised,due to the better hull form for the best hullvariant. It was noted that many design variantswere optimal in a Pareto frontier analysis,which meant that the selection of one variantfor the final design depended on the weightingof the different optimisation targets. Therefore, depending on the designerschoice, a design optimised for oil outflow,EEDI, or for transport costs, might beselected, GL said. The optimised hull form was designed for aspeed of 15.6 knots at the design draft with a95% confidence interval. The speed at theballast draft of 7.4 m is 16.8 knots. Thisrepresents a favourable speed increase whencompared with recently built Aframaxes. Witha standard main engine for Aframaxes MAN6S60MC-C, the fuel consumption iscomparable with similar tankers of this size. With a high speed and large cargo capacity,this design will easily meet future EEDIrequirements, the class society claimed. Theattained EEDI value is merely 84% of thelatest published reference line value for thisvessel size. This means that the vessel wouldbe in compliance with EEDI regulations evenif the first reduction to the required index hadalready started. At current estimates, this willoccur on 1st January 2015 at the earliest. Although a vessel contracted before EEDIhas entered into force will not normally needto comply, vessel entering into the market sayin 2017, will be more energy efficient and,therefore, more likely to attract charterers thanolder vessels with lower energy efficiency. GLclaimed that its new design would remainhighly competitive. To reduce oil outflow in case of accidents,the double hull side width was eventually setto 2.65 m. In addition, to further reduce cargotank penetration in the event of a grounding,the No 1 cargo tanks inner bottom was raisedfrom 2.1 m to 2.75 m. To ensure structuralcontinuity, an inclined inner bottom isPrincipal Particulars BEST-plusLOA250 mBeam44 mDepth..21.5 mDesign draft13.7 mDeadweight114,923 tCargo capacity129,644 cu mBlock coefficient....0.85Double bottom height..2.1 mDouble bottom hull COT 1....2.75 mDouble bottom width.2.65 mLoaded speed at design draft....15.6 knBallast speed at design draft.16.8 knEEDI...3.2814 g CO2/(t*nm)Source: GL.The BEST-plus concept can be adapted for using LNG as fuel with gas tanks locatedon the deck.INDUSTRY - GERMANY REPORTTANKEROperator

August/September 2012 14proposed between two frames. The final hull structure was evaluated withfinite element analysis according to IACSCSR.Typically, the sea margin is only estimatedto ensure that the vessel has sufficient reservepower to overcome adverse conditions and tokeep to its schedule. Using advanced potentialflow prediction and Caribbean Sea wavecharacteristics, the added resistance in waveswas computed for the new design concept. Itwas confirmed that the available power wassufficient to deliver schedule reliability in 95%of all the encountered sea states. BEST-plus hull form was designed to yieldoptimal wake properties, resulting in higherpropulsion efficiency. Today, modern CFDtechnology facilitates analysing the flow fieldlocally, GL said. A wake equalising duct(WED) was considered as a possibleenhancement for a possible newbuilding, aswell as retrofitting. A parametric model of theWED was generated and many differentconfigurations were evaluated, keeping thehull form and propeller fixed. One configuration was found that reducedthe power delivered by 4.5% at the designspeed. Alternatively, the WED can give anincreased design speed of 0.2 knots to 15.8knots. GL claimed that this conceptual design hasthe lowest transport cost and the highest speedamong the comparable designs available andalso features a low EEDI and a low oiloutflow index. With a possible marketupswing, due to the expected older tonnagereplacement requirements and by onlyincluding existing technologies, the classsociety said that this design concept will lookattractive for those shipowners who wish tostay ahead of the competition for the nextdecade. As mentioned BEST-plus was developed byGL Strategic Research and Development, theNational Technical University of Athens(NTUA) and GLs subsidiary FRIENDSHIPSYSTEMS. The team proposed a synthesis model thatcomprised measures of merit forhydrodynamics, structures, payload, oiloutflow probability in case of accidents,energy efficiency as expressed by the EEDIand, very importantly, economics. BEST plus is an acronym for BetterEconomics with a Safer Tanker. Within BESTplus, GL said that more than 2,000 designvariants were evaluated in a concerted mannerby combining simulation codes such asSHIPFLOW, GL Poseidon and NAPA, via thecomputer aided engineering environmentFRIENDSHIP-Framework. Supplementary hydrodynamic analyses werejointly undertaken by FRIENDSHIPSYSTEMS and the University of AppliedSciences in Bremen. Using the most advancedtanker design from BEST plus, an additionalpropulsion improvement device wasintroduced, with the aim of homogenising thewake field in the propeller plane and furtherenhancing propulsive efficiency. A duct was selected due to its inherentsimplicity, presenting itself as a goodcandidate not only for new designs but also forthe refitting of ships in operation.In order to be able to investigate aconsiderable number of design variants, a fullyparametric model of the duct was developedwithin the FRIENDSHIP-Framework. For theviscous flow analyses, the CFD codeSHIPFLOW-XCHAP was used. XCHAPoffers an overlapping grid technology thatmakes use of high-resolution body-fitted gridsaround appendages, which are superimposedon a background grid fitted to the hull form. This yields high accuracy in the flowregions of interest and allows for automaticupdates when changes in geometry areconsidered. Combining both theFRIENDSHIP-Framework and XCHAP,several hundred designs were studied. A comparison of Aframax CSR tankers EEDIs, showing the BEST-plus design to be one ofthe lowest. Source: GL.BEST-plus was the result of industry feedback, including comments from shipyards and Aframax tanker operators.TOThus, nearly 60 mill to promote theshipping industry this year isready, the VDR said. The Germanparliament is proving itself to be areliable partner for the continuation anddevelopment of the maritime alliance, saidRalf Nagel, VDR executive committeemember. However, he expressed regret that theFederal Government has again halved theaverage shipping promotion budget for 2013. He said that the Bundestag, the NorthGerman states, the union Verdi and the entiremaritime industry had continued to developthe alliance. With their decision, the FederalGovernment has isolated the maritimealliance, Nagel said.At the VDRs general meeting held on 8thDecember last year, it was decided to allocate30 mill per year to promote training andemployment in the maritime industry withinGermany. Some 20 mill will come from theGerman shipowners and the remaining 10mill will come from increasing theAusflaggungsgebhren, the VDR said at thetime. In another move, the Federal Governmenthas also introduced a draft law on theregistration of security companies to operateon seagoing vessels. Speaking in July, MichaelBehrendt, VDR president said: We welcomethe initiative of the Federal Government toregulate the use of private armed securityforces on ships flying the German flag. Ourowners need clear directions in order toeffectively protect their seafarers from thethreat of piracy. The landmark decision for promote a lawhad taken a long time. However, it wasimportant, said Behrendt, that internationalsecurity companies can be authorised to beused on board German flag vessels. It is therefore encouraging that theapproval process was agreed, as we hadrequested based on the IMO guidelines, hesaid. Approvals by the Federal Office ofEconomics and Export Control (BAFA) willbe monitored after the Bill comes into force.Nagel, said: A limitation of approvals issensible to ensure a permanent high securityservices standard of equipment andpersonnel.Nagel said that private security companiesrepresented only the second best solution toprotect crews, as sufficient protection of theinternational merchant fleet by sovereignsecurity forces could be available for theforeseeable future, according to the FederalGovernment. Sufficient time neededHe expressed concern as to whether theshipowners would have sufficient time to finda suitable security advisor, once the law hadentered into force. Nagel said: There is nolegal obligation for shipowners owning vesselsflying the German flag to only use the BAFAapproved security service, only maybe when asufficient number of private securitycompanies become registered. There is a riskof a further split when too few companies arelicensed. Most importantly, it is now necessary toget the necessary legal regulation on the tablevery quickly. We are participating in theimplementation of legislation in aconstructive, effective and pragmatic co-operative manner with the relevant authoritiesin order to avoid friction and unnecessarybureaucracy, he concluded.INDUSTRY - GERMANY REPORTTANKEROperator

August/September 2012 16VDR fights forgovernment fundingThe German Shipowners Association (VDR) has welcomed the decision by the BudgetCommittee of the German Bundestag to unlock funds under the so called maritime alliance. TOGerman shipping statisticsAs of the end of last year, figures produced for theVDR, showed that the German administrationstood at number 14 in the worlds flag stateleague. German controlled vessels flying the domestic flag amounted to14.9 mill gt, or 1.5% of the worlds total. in 388 companiesidentified by the BSH and VDR. However, looking at the tonnage controlled by German domiciledcompanies, this rockets the country into third place with 3,878vessels of 124.8 mill dwt, or 9.4% of the worlds total. The averageage of the fleet is only eight years. Looking at the tanker statistics, there were 455 vessels in theGerman fleet of 22.9 mill dwt, amounting to 4.1% of the worldstotal at the end of last year. Of those over 100 gt, 282 were crude oilcarriers, 109 chemical and other liquid carriers, 56 gas tankers andfour bunker tankers. New people entering the shipping sector as at the end of last yearstood at 720 seafarers and 366 apprenticeships to shipping andchartering managers, according to figures produced by theBSH/VDR. There were 388 companies domiciled in Germany, spread mainlyaround the northern states, including Niedersachsen (Elbe, Weser andJade/Ems), Hamburg, Schleswig-Holstein, Mecklenburg-Vorpommern, Bremen and others, according to the figures releasedby the VDR. German Tanker Shipping GmbH & Co. KGHans-Bckler-Str. 5028217 BremenPhone +49 421 387638Fax +49 421 3876390e-mail [email protected]!A! TA!!EF E!!FF!!GINDUSTRY - GERMANY REPORTTANKEROperator

August/September 2012 18One company to have made astrong start this year was mixedfleet German owner MarenaveSchiffahrts.The bottom line was a consolidated net profitof 3.1 mill for the first three months of thisyear. The company claimed that this was thebest quarterly result since the onset of theglobal economic and financial crisis in thethird quarter of 2008. In addition to the netresult, key performance indicators also showedimprovements.Sales revenues rose by 34%, compared tothe same period in 2011. As costs only rose ata disproportionately low rate, the shipoperating result and the operating profit fromshipping operations showed growth rates of47% and 52%, respectively.The reasons for these positive developmentswere to be found in the investment anddeployment strategy advocated andimplemented since the company was formed.CEO Tobias Knig said: The diversifiedemployment of the fleet in all segments of theshipping industry, as well as the mix of spotand longterm fixed chartering makes itpossible for the contribution to earnings of theships employed under medium term and longterm arrangements to more than offset thenegative contribution to the consolidatedresults of segments affected by crises. Marenaves strategic goal is to further growthe fleet. Knig said; This is still a time topurchase ships on favourable terms and manymarket participants expect 2012 to be a yearwhen many shipping limited partnerships inthe German Market will come up for sale. Asa listed stock corporation, we find ourselveswell positioned to profit from the comingchanges.Marenave Schiffahrts was the first publiclytraded shipping fund company in Germanyorganised as a joint stock corporation underGerman law (AG, Aktiengesellschaft).It was developed so that institutional andprivate investors could obtain long termexposure to the shipping market and diversifytheir portfolios further.The companys goal is to set up adiversified portfolio of container vessels,tankers and bulkers and to generate incomefrom buying, selling and chartering ships. Marenaves fleet currently totals 13 vessels:six Panamax and Handymax product/chemicaltankers, two 1,200 TEU containerships, onecar carrier and four Supramax bulkers.Mid/long term charter agreements for thecar carrier and the bulkers have securedcharter revenues of about $260 mill. Theaverage return on capital employed for thevessels under long term charters is close to15% per annum, which represents thebenchmark for future investments, thecompany said.Listing on the stock exchange putsMarenave Schiffahrts in a position to raisefresh capital for the acquisition of additionalvessels, as needed and given the appropriatemarket conditions. This will allow the current favourablemarket phase to be used for the targeted fleetexpansion and thus an extension of operationsin Hamburg, the company explained.Marenave Schiffahrts claimed to be one ofthe few German shipping companies with acorporate structure that leading banks view asa necessary condition for financing futureprojects. TOMarenave bucks the trend

wor|dw|de AItersa|esINDUSTRY - GERMANY REPORTTANKEROperator

August/September 2012 20A positive effect onfuel consumptionAs a consequence of recent IMO regulations, shipowners are requested to improveenergy efficiency of their ships operation with regard to various factors that drivefuel consumption and emissions. Claiming to address theserequirements is the German-basednavigation system manufacturerRaytheon Anschtz. This claim was made, following theretrofitting of the companys newly developedautopilot series NP 5000 on board a fleet oftankers. As one of the first customers, US-basedOverseas Shipholding Group (OSG)contracted Raytheon Anschtz to exchange theexisting autopilot systems in the tanker fleetwith the NautoPilot 5300. The first autopilotsystem was installed on board the AframaxOverseas Fran in October 2011. OSG are undertaking great efforts toincrease energy efficiency on board of theirships. The choice of our new adaptiveautopilot system was influenced byconsiderations of saving fuel and thusreducing emissions, said Olav Denker,Raytheon Anschtz product manager. WithOSG, we have now had the chance to provepositive effects of NP 5000 on steeringperformance and fuel consumption in practicefor the first time.NP 5000 helps optimise rudder movementswith its integrated Eco-Mode. In Eco-Mode,the autopilot automatically adapts to thecurrent sea state and weather. Instead ofkeeping a heading using frequent rudderactions with high amplitudes, the rudderssensitivity to periodical yawing movementscaused by roll and pitch is reduced.Subsequently, less rudder action is required,which leads to lower levels of speed reductionand thus less fuel consumption. Overseas Frans first voyage with the NP5000 fitted was from Skagen to New York. Toevaluate the actual effect of NP 5000 onrudder steering, during this voyage theheading and rudder plot was compared withthe results of the previous voyage on the sameroute with the old autopilot system, undersimilar weather conditions during bothvoyages. Capt Dmitry Shatrov, the tankers Master,explained: We can see on our print-out thatrudder movement ismore economic andgentle with the newautopilot system. The effect of Eco-Mode is furthersupported by the newintegrated heading andrudder plotter, whichprovides a graphicalindication of headingchanges and theresulting rudder angles. This graphic displayinstantaneouslyindicates the steeringperformance of thevessel due to theeffects of changes toparameter settings,such as rudder, counterrudder and yawing.The operator benefitsfrom simplifiedadjustments of theautopilots settings to gain optimised steeringperformance, which further minimises rudderaction and thus increases fuel efficiency, thecompany said. The newly installed autopilot system has auser-friendly interface in which you can easilyadjust autopilot functionality in the prevailingcircumstances, weather condition and requiredsteering accuracy. So that we can navigate thevessel more gently and economically, takinginto consideration fuel savings and safety,Capt Shatrov concluded. The relevance of optimised ruddermovements for fuel savings has already beenhighlighted by IMO as a best practice forefficient ship operation when developing aShip Energy Efficiency Management Plan(SEEMP). Since we all know that less ruddermovement significantly contributes to reducedfuel consumption and emissions, we havedeveloped and implemented unique features,such as the Eco-Mode and the heading andrudder plotter into the new NP 5000 autopilotseries, Denker explained.In addition to its fuel-saving potential, NP5000 is also equipped with functions for highprecision course keeping, for example, for safenavigation in challenging sea areas nearcoastlines and shallow sea areas, platforms, orarchipelagos. Besides heading control and track control,the new autopilot features a course controlmode. When steering in this mode, theautopilot automatically compensates for driftand keeps the vessel on the defined courseover ground line. An optionally integratedacceleration monitor provides a warning if apre-defined cross acceleration limit isexceeded. NautoPilot 5000 was launched at thebeginning of 2011 as successor to theNautoPilot 2000 series. In total, RaytheonAnschtz supplies 800 autopilot systems eachyear to the worldwide shipping market, thecompany claimed. NautoPilot 5000 with Integrated heading and rudder plotter.TOAugust/September 2012 TANKEROperator . 21INDUSTRY GERMANY - SMM PREVIEWSeptember sees theshipping world inHamburgNext month, the shipping world will descend on Hamburg for the bi-ennial SMMexhibition and conference, which this year celebrates its 25th anniversary. There will be 2,000 plus exhibitorsfrom more than 60 countries takingup over 90,000 sq m of exhibitionspace with more than 50,000 tradevisitors expected.Alongside the regular SMM Ship FinanceForum, is MS&D, an international conferenceon maritime security and defence; and gmec,global maritime environmental congress anintegrated component in the SMM supportingprogramme for the second time. Another regular feature is the SMMOffshore Dialogue, also held for the secondtime this year, with industry experts discussingoil and gas production at sea and offshorewind energy. There will be more than 150programme items.MS&D exhibition and conference has nowbeen incorporated in SMM with dedicatedfloor space located in the new Hall B8.Tomorrows Champions is the subject ofthe SMM Ship Finance Forum. Leadingexperts from all parts of the world discusscurrent challenges and perspectives in the shipfinance event on 3rd September, which formspart of the expo.This is the fourth time that SMM organiserHMC (Hamburg Messe und Congress) will co-host this English-language conference togetherwith Financial Times Deutschland; more than200 participants and speakers are expectedfrom all over the world.According to analyses by ClarksonResearch, some $90 bill was invested in newvessels last year a lot less than in record year2007 but still a large amount, which theshipping lines cannot raise under their ownsteam. At present, it is becoming increasinglydifficult to obtain equity capital from investorsand loan capital from banks. Private investorsare scared off further commitments by thenumerous insolvencies seen with single-shipcompanies, the organisers said.The classic German KG model has becomeobsolete for the time being, said Dr TorstenTeichert, chairman of the management boardof Lloyd Fonds who will present ideas on thefuture role of shipping funds at the forum. Heexpects that international investors will infuture become more involved in the maritimesector.The entry of US private equity companiesgives German shipowners a fundingalternative to the previous models, said DrDirk Lammersktter, management board ofHSH Corporate Finance. But experienceshows that their profit expectations aresubstantially higher.While some of the traditional ship financierssuch as HSH and Unicredit are successivelyreducing their commitment, the public-sectorKfW IPEX-Bank is increasingly moving intoproject financing. However, bank regulations are becomingmore and more stringent (Basel II and III),which means that most of the banks find ithard to work in this volatile industry. So far,the expectations that an Asian bank would fillthe gap by moving into this sector in a bigway have not been fulfilled as a rule sucharrangements operate with a linked packagedeal whereby a ship built by a South Koreanor Chinese shipyard also gets a fundingarrangement, or credit guarantee from thosecountries.In Germany, more attention is now directedtowards alternative financing instruments,such as borrowers note loans, profitparticipation capital, and ship mortgages.Some of the major international shippingcompanies are already stock exchange listed,or can get access to the capital market bymeans of bond issues. Investors currently benefit from anAnchers and chaincabIesall sizes and diameters directly available from our large stock in Rotterdam www.wortelboer.nlMEET US AT SMM 2012 Hall A1 stand 217TANKEROperator

August/September 2012 22INDUSTRY GERMANY - SMM PREVIEWextremely favourable price level I think therisk-return ratio is at present the best it hasbeen for many years, said Dagfinn Lunde,director of DVB Bank and a panel participantat the SMM Ship Finance Forum. That is alsoconfirmed by the figures from ClarksonResearch: Compared with their peak in 2008,shipbuilding prices have dropped by 30, or40%, said managing director Dr MartinStopford. The current crisis does give investorsworthwhile openings. Newbuildings aremostly more energy-efficient than ships in thecurrent fleet, so that is very useful in view ofthe dramatic rise in fuel costs. Individualshipping companies are already thinking ofadding to their fleets provided they find theright financing partners, the organisers said.ShipbuildingThe European shipbuilding industry is comingunder pressure - in 2011 the number ofdeliveries related to tonnage exceeded thenumber of new orders for the fourth year insuccession, at about 2.45 mill CGT (versus 1.8mill CGT in 2011).This means that the orderbook shrank to onethird of what it was five years ago (around 5.7mill CGT). Nevertheless, this industry hasmajor importance for Europe - its salesvolume, with a workforce of more than500,000 people, is more than 80 bill perannum. The Community of European ShipyardsAssociations (CESA) and the EuropeanMarine Equipment Council (EMEC) have nowagreed to set up a joint association to representthe interests of the maritime shipbuildingindustry. The new association will include nearly100% of the maritime industry from 18countries. This focusing of activities willstrengthen the position of the Europeanshipbuilding industry, as we will also see atSMM, said Peter Bergleiter, business unitdirector at Hamburg Messe und Congress,SMMs organiser. Meanwhile, the European shipbuildingindustry is focusing increasingly onconstruction of technologically sophisticatedship types - Meyer Werft (Germany) and itscompetitor Fincantieri (Italy) have establishedthemselves as the leading builders of cruisevessels; STX Europe (Norway) also buildsferries, offshore supply vessels and navalships. Sietas (Germany) and Crist shipyard(Poland) are working on offshore installationvessels; Flensburger Schiffbau-Gesellschaft iscompleting the fourth ferry for Seatruck andthe companys order book includes two heavy-duty freight ships. Nordic Yards is building thethird high-voltage DC converter offshoreplatform for Siemens. An interesting prospect is opening up forLNG carriers. Experts at Deutsche Shipping,the shipping unit of Deutsche Bank, areexpecting significant demand in this area inthe medium-term future. The industry hasalready responded - Meyer-Werft will deliverits first LNGC to the Dutch shipownerAnthony Veder at the end of this year.The business principle of the DamenShipyards Group, which specialises, amongother things, in tugs and platform supplyvessels, could be applied to the whole of theindustry - We operate in every niche marketbecause if we see an opportunity to improve,innovate or invest, we take it.European companies will be stronglyrepresented at SMM 2012 - in terms of areabooked, Germany leads the way, followed bythe Netherlands, Norway and the UK. ThePeoples Republic of China, worldshipbuilding nation number one, follows infifth position, having overtaken Denmark(sixth position), the organisers said. SMM isas global in scope as the maritime industry+01 440-937-6218 Phone +01 440-937-5046 Fax www.adv-polymer.comTransport all IMO cargoes, especially aggressive acids, solvents andalkalis, with MarineLine 784tank coating system. The coating uses a virtually impermeable polymer-based technology to ensure cargo product purity from port to port.for Chemical TankersAdvanced Polymer CoatingsAvon, Ohio 44011 U.S.A.THE tank coating system for handling aggressive chemical cargoes. Base Coat Top CoatAugust/September 2012 TANKEROperator . 23INDUSTRY GERMANY - SMM PREVIEWitself, said Bergleiter. Germanys shipbuildingand offshore suppliers take a leading positionin the world, with some three quarters of theirtotal sales made outside their own country.Energy-saving, cost-effective, environmentfriendly engineering is one of the new keyareas of the marine equipment industry,supplying to ships and offshore operators.German industry has a technological lead todefend here. Developments of the propulsiontrain and in particular of the engine areexcellent examples of that, said KlausDeleroi of MAN Diesel & Turbo. Onlytechnology leaders with system expertise arecapable of optimising emission levels over thewhole of the life cycle of the engine. The same applies to the Asian companies.Exhibitors from China include a wide range ofcompanies, plus the two most importantshipbuilding associations CSIC and CSSC.The South Korean Shipbuilders AssociationKOSHIPA will also be present as will a largeSouth Korean pavilion with equipmentsuppliers. Major Japanese shipyards will bepresent, together with the Japan MarineEquipment Association JSMEA. Retrofitting (refitting) is also gaining inimportance. For example, operation in ECAsis a key reason for using LNG propulsionsystems and also for retrofitting scrubbersystems to remove emissions from exhaustgas. And from 2016 onwards, followingmajority ratification of the ballast waterconvention, its rules could be applicable tonearly the whole of the worlds merchant fleet an enormous market. A scrubber, including its installation, costsseveral million (dollars) and the cost of aballast water treatment plant can also go intoseven figures, said Rdiger Pallentin,managing director of Lloyd Werft,Bremerhaven. Equipment suppliers such asMWB, Alfa Laval, Mahle and RWO presenttheir latest solutions in this area. Tanker Operator has put together a snapshotof just a few of the exhibitors in strictalphabetical order. ABB is marketing its energy managementsystem EMMA, aimed at maximising vesselefficiency. The system is expected to pay foritself in less than a year at todays fuel pricelevels, said Mikko Lepist, responsible foradvisory systems within ABBs vesselinformation and control division (VICO).Industrial experience and on board tests showthat the system can help our customers tomake significant fuel savings and thus toreduce emissions. Admiralty will host the next series ofdigital integration workshops at SMM. Theworkshops, which are free to attend, helpshipping managers effectively plan for theintegration of digital technology into bridgeoperations to meet the IMO mandatorycarriage of ECDIS legislation that came intoforce on 1st July 2012.They will take place on first floor of HallB6, in room B6.1 on 4th 7th September2012. Attendance is free, but spaces arelimited and anyone wishing to attend shouldregister online. The workshops have been developed inconjunction with Capt Paul Hailwood, anECDIS and integrated bridge operationsexpert. They will and provide a simple, step-by-step process to support the planning anddelivery of compliance with the mandatorycarriage of ECDIS.Following on from the start of the ECDISmandate at the beginning of July, shippingcompanies must be planning andimplementing digital navigation, said CaptHailwood; Many companies underestimatehow long the transition to digital navigationwill take. Its crucial that they make everyeffort to fully understand what ECDIScompliance requires. Ive worked with manycompanies where the process has taken twiceas long as first thought, resulting in a varietyof operational issues. To avoid these problems shippingcompanies need definitive answers about theintegration process to enable them to prepareeffectively. The Admiralty workshops aredesigned to be the definitive resource to setthem on the right course, he concluded.Ian Moncrieff CBE , UKHO and AdmiraltyCEO, said: The integration of digitalnavigation into bridge operations is a hugestep forward for the industry, deliveringimproved safety and efficiency. However,these benefits will not come automatically;they require the strategic implementation of arange of technologies and processes alongsidehighly focused and competent operationalexecution. The digital integration workshopswere delivering at SMM Hamburg 2012 andaround the world this year are designed toequip shipping companies with the knowledgeand skills they need to embrace the digitalfuture of navigation.Following SMM Hamburg 2012, theworkshops will also be held in London on24th September, details to follow and Dubai,UAE on 27th-29th November 2012.Additional dates will also be announced. Alfa Laval will be showcasing a wide rangeof solutions designed to boost efficiency andreduce operating costs.This years SMM will be the launch pad forthree new products. PureSOx introduces cost-effective exhaust gas cleaning. PureDryintroduces waste fuel recovery and a paradigmshift in separator design. The widetemperature and pressure range of theAlfaNova fusion-bonded plate heat exchanger

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August/September 2012 24meets the demanding applications set bytodays modern fleet, the company claimed. PureSOx exhaust gas cleaning system -Is your ship or fleet prepared for 1st January 2015? If not, its time to look at your options. PureSOx from Alfa Laval reduces harmful emissions by scrubbing sulphur from the exhaust gas of vessels operating on HFO. It is a low-cost solution compared to running on low sulphur MGO.PureSOx is a hybrid system that runs in either seawater or freshwater mode. It is also the largest system currently in operation (21 MW). PureDry -The PureDry waste oil treatment system dries up waste oil streams on board, signalling a paradigm shift in separator design. PureDry recovers fuel oil from a dedicated waste fuel oil collection tank andreturns it to the bunker tank for reuse after normal treatment. For the shipowner, it means a reduction of up to 2% in the total volume of fuel oil consumed and a corresponding reduction in the ships fuel bill. AlfaNova fusion-bonded plate heat exchanger -Newly introduced to Alfa Lavals marine portfolio, AlfaNova offers a working range temperature between -196 deg C to +550 deg C. Constructed completely in stainless steel it can be used for wide range of aggressive media. Among these applications are LPG/E re-liquification including ammonia and also in LNG fuel duties. This is made possible by the companys patented active fusion bonding technology. PureBilge 5 ppm DNV Clean Design -PureBilge is the first system to obtain the new 5 ppm DNV type approval certificate for 5,000 l/h. And with its tamper-proof BlueBox data recorder, which locks in critical data and captures the whole sampling line, performance is a matter of total confidence. PureBallast 2.0 -Reliability, compatibility and convenience are essential considerations when selecting a ballast water treatment solution. Thats why more and more shipowners are opting for Pure Ballast 2.0. Its not about buying equipment its about an expert partnership, and investing wisely in the know-how, resources and support that comewith it. Aalborg boiler series -Alfa Laval Aalborg boilers combine high performance and reliability with environmental focus, ensuring superior quality from quotation and documentation to manufacturing and plant commissioning.The TCi series of oil-fired boilers offer significant improvements in efficiency. They feature an Intelligent Turbo Clean (TCi) system, enabling them to self-clean without water washing and subsequent effluent. Waste heat recovery -Alfa Lavals Aalborg waste heat recovery systems deliver documented fuel savings and cut COx emissions by up to 12%. Theymaximise profitability and safety while helping you meet environmental regulations. Thermal fluid systems -Alfa Laval Aalborg thermal fluid systems are an alternative to steam boilers as a heat supply for separators, cargo heaters, and other heat consumers. Supplied as completeand fully engineered systems, they feature an optional energy management system thatreduces unnecessary heating and emissions by comparing the systems available heat with the actual requirements of the heat consumer. Inert gas systems -Alfa Laval Aalborg inert gas systems produce quality, soot-free inert gas, thanks in part to the Ultramizing combustion system that prevents soot formation even atpartial load conditions. Easy to operate andmaintain, they allow quick and accurate configuration and offer a low total cost of ownership. S separator 9 series -The latest version of Alfa Lavals ground-breaking S separator combines proven benefits like our Alcap technology with a wide range of technical innovations. The result is lower energy consumption, lower oil losses, lower lifecycle cost, and smaller footprint.There will also be more attractions on displayin addition to the highlights above. Visitorswill also be able to experience: AQUA freshwater generator. Fuel conditioning module (FCM) and advanced cooling system (ACS). Filters. Marine boilers and heat exchangers. An extended service network created by theunion of Alfa Laval and Aalborg Industries.Alphatron will introduce a marine fibre opticheading sensor at SMM. With more than 800 Alphaminicoursetraditional gimbal gyro compasses in service,Alphatron Marine is introducing theAlphafibercourse to the marine industry. Itcontains a fibre optic and 1Xblue core as asensor reference.It is a small light weight fast setting device,fully approved by class and MEDwheelmarked. The fibre gyro compass is directlyconnectable to a variety of ancillaries via agalvanically isolated docking station. Amongthe ancillaries are bearing repeaters, OSVapproved interswitches, digital repeaters,repeater stands and brackets.Due to its extreme robustness and size aswell as the output of roll and pitch informationas second signal, the Alphafibercourse isAlphatrons marine fibre optic heading sensor - Alphafibercourse.INDUSTRY GERMANY - SMM PREVIEWAugust/September 2012 TANKEROperator 25targeting the high end market of the marineindustry, including chemical tankers. For the past 15 years, BASS has providedsoftware to streamline and automate shipoperation processes, one by one, forming anintegrated system. The companys latestrelease - BASSnet 2.8 - has been receivinggood feedbacks from clients worldwideBass now has more than 100 customersworldwide, including Stolt Tankers, inexperiencing how its modular software canstreamline a business. It enables a shippingcompany to build one, integrated solutioncovering all main areas of maritimeoperations. The modules include: Maintenance. Projects. Claims management. Procurement. Contract management. Operations. Document management. Safety management. Vetting. Risk management. Self assessment (TMSA). Reviews and improvements. Crewing/HR management. Payroll. Financials. Report generator. KPI dashboard.With origins in Norwegian shipping, BASSSoftware can provide 24/ 7 global support tocustomers. Special steering gear is represented by therecord breaking 93 sq m TLKSR system fromBecker Marine Systems. In addition, theBecker Mewis Duct, a nozzle fitted in front ofthe propeller with an integrated fin system,increases propeller efficiency in loadedcondition by up to 6%, the company claimed. Colfax Fluid Handling will exhibit anupgraded product Allmind - at SMM. Colfaxs Allmind pump upgrade reducestotal cost of ownership through diagnosticcapability and variable speed drive control, thecompany said.Despite the best intentions of shoresidesuperintendents under constant pressure toreduce operational expenses and equipmentdowntime, the best pump systems are at riskdue to a lack of diagnostic information andsophisticated control systems. Allmind provides an effective solution tothis challenge, Colfax said. As an intelligentsystem it monitors all types of pumps in avessel and can help reduce expenses for day-to-day operations, maintenance, energy andspare parts costs. At the same time, Allmind helps to improveoperational safety. The concept of Allmindwas developed from a single leakage controldevice to become an intelligent conditionmonitoring and variable speed control unit. Energy costs account for 85% of the total costof ownership for ballast and cooling pumps,demonstrating the importance of assessingtotal cost of ownership rather than basingpurchasing decisions purely on initial cost.The concept is just as relevantly applied toupgrade decisions, said Christian Martin,director, product management commercialmarine at Colfax. This means keeping abreastof technology and, as is often the case withpumps, recognising when old practices mustmake way for the new to achieve greateroperational efficiency and profitability.We have the technology to reduce theenergy consumed in pumping operations by upIRI International Registries, GmbHio offliotio oit/ t/. Mor/oll Ilooo Moritio. C Crrot. Jooioitrotrtel: -!9 !0 3o1 oo81 30 | hamburgregister-iri.com www.register-iri.comThe Marshall Islanos Registry.r.ic. ooo oolit, or. oit/io ,or r.oc/TANKEROperator

August/September 2012 26INDUSTRY GERMANY - SMM PREVIEWto 50% simply by enabling variable speedoperation with Allmind, said Martin.Moreover, add intelligent diagnostics asprovided by Allmind and reliability goes upand maintenance costs go down dramatically.Allmind is comprised of interchangeablemodules, giving the system the flexibilityneeded to adapt to highly individualisedprocesses. The system offers the ability tohandle everything from relatively simplecondition monitoring to sophisticatedmonitoring and control activities involvingmultiple pumps- all with a single unit. The system can monitor pressure,temperature, leakage, vibration and output, aswell as activate PID controllers. Each pumpcan be individually equipped with speedcontrol. The system will store all sensor valuesand makes them available for evaluationpurposes. Conrac will be showing the following newproducts at SMM.New additions to the marine panel computerseries are fully integrated solutions inwidescreen format featuring diagonals of 13.3inch and 7 inch with touch screen. Speciallydesigned for marine applications, thesePanelPCs are ideally suited for use in shipautomation and control applications. In addition, the latest versions of thewideECDIS marine panel computers, includesSysMon, a system monitoring application,now with a special ECDIS calibrationfunction.Conrac will also be show casing one of theOEM products, a wideECDS monitor inportrait format, specially developed for riverradar applications. Danfoss will be exhibiting its marineportfolio, including the frequency converter-family that holds eight marine approvals. Avariety of sensors, such as the cylinderpressure sensor that reduces fuel consumptionand increases engine life, will also be shown. Frequency converter: compact size andmarine approved - the more compact D-frameconstruction design of the VLT frequencyconverter is now fully available in the 90 to250 KW output range. VLT frequencyconverters are available in protection classesup to IP 66, making the products ideal for therefurbishment of older vessels, the companysaid. Danfoss VLT frequency converters formarine applications possibly hold the highestnumber of class certificates on the markettoday and are certified by a total of eightauthorities within the maritime and offshoresectors, including DNV, RINA, LR, CCI andothers. Depending on the output range, the newcompact frame size can be up to 68% smallerthan the former frames. Additional options areavailable for these devices on the power inputside, from fuses and load circuit breakers toelectric contactors. These devices save a large amount ofcabinet space. The greatest savings areachieved by the 250 KW VLT frequencyconverters. They require only 0.14 cu m,compared to the 0.450 cu m formerly needed.Danfoss converters remain among the smallestproducts in their performance classes and areavailable in a wide power range designed forall applications, marine and others, thecompany said. The frequency converters have a largenumber of functions developed to meet thediverse needs of all kinds of applications. It isthe perfect match for pumps, fans andcompressors, eg in vessels that are fitted withincreasingly sophisticated solutions. Thepower range is from 1.1 to 1,400 kW withvoltage ranges 200, 380 480/500 V, 525 600 V and 690 V. The product is available upto protection class IP66, depending on theversion.Cylinder pressure sensor reduces fuelconsumption - the new pressure sensor allows2-stroke and 4-stroke engines to operate with ahigher output than is the case today. Ownersbenefit from reduced fuel consumption, lowermaintenance costs as well as longer operatinglife, Danfoss claimed.The MBS 1800 pressure sensor is availablein two versions an integrated sensor andamplifier in one housing and in-line sensorand chare amplifier firmly but flexiblyconnected by a high performance cable. The sensor offers a variety of significantbenefits, including pressure ranges up to 250bar, overload pressure up to 300 bar,temperature range up to 350 deg C, responsefrequency 20 kHz, natural frequency > 90kHz. The sensor is designed for 20,000operating hours in severe conditions. The new MBS 1800 cylinder pressure offersthe possibility to register what happens in thecombustion chamber while the engine isrunning. Knowing exactly what happens insidethe cylinder provides the possibility to reduceemissions and reduce fuel consumption, aswell as reduce maintenance costs, Danfosssaid.GEA Westfalia Separator Group will beintroducing the BallastMaster ultraV.Increasing demands for cost and resourceefficiency in ship operations and the growingimportance of sustainable management haveresulted in repeated critical examination of theindividual material and process cycles byshipping companies and shipbuilders in recentyears. Until now, ballast water on board hasgenerally been treated with the use ofchemicals, resulting in correspondingdetrimental effects for the environment, aswell as material costs. ANCHORS & CHAINSRotterdam ShanghaiBergen Aberdeen NantongINDUSTRY GERMANY - SMM PREVIEWAugust/September 2012 TANKEROperator 27At SMM 2012, with the new BallastMasterultraV solution, GEA Westfalia SeparatorGroup demonstrates that with this solution, thenecessary cleaning processes can be completedentirely without the use of chemicals andsolely on the basis of filtration and irradiationwith UV-C light. As ultrasound is used for theself-cleaning of the lamps, no disinfection by-products occur.The BallastMaster ultraV has a modularstructure and is therefore suited both for newships and for retrofitting. The system hasalready been certified under IMO regulationsand is being presented for the first time atSMM.According to Sven Jadzinski, senior productmanager, talking with Tanker Operator, thetype approval for BallastMaster ultraV wasissued by BSH on 19th December 2011. He explained that the smallest module has acapacity from 160 cu m per hour up to 250 cum per hour. GEA is also working on an up-scaled unit, which can handle up to 500 cu mper hour capacities, Jadzinski said. He alsosaid that the GEA BallastMaster ultraV issuitable for capacities up to 1,500 cu m perhour.If a larger foot print is needed, powerGEA Westfalias BallastMaster System.INDUSTRY GERMANY - SMM PREVIEWTANKEROperator

August/September 2012 28consumption and installation cost might be anissue. Usually for throughput capacities ofaround 3,000 cu m per hour, ie for largevessels, different technology is recommended,for example electrolysis, Jadzinksi explained.He also said that GEA is currently engaged ingetting this system certified at a test facility inDenmark, which should be completed by thesecond half of 2013.Experts estimate that the costs of systemfailures and downtimes within one life cyclecould be three to four times greater than thecorresponding costs of maintenance and repair. Particularly in ship operations, the economicimportance of system availability cannot beoverestimated. As a result, GEA WestfaliaSeparator Group is bringing its new, holisticserv&care service concept to SMM 2012. serv&care makes service not only moreflexible and adaptable than before but alsocapable of learning. Maintenance measures areno longer bound by rigid concepts and firmlydefined packages but rather form one elementof individually co-ordinated serviceagreements. In all parameters, these areprecisely geared to the individual requirementsof the customer. The central benefit for thecustomer: maximum system availability withabsolute budget security, the companyclaimed.Life saving service concern Lalizas has setup a webpage (www.lalizas.com) where localservice stations for life jackets, immersionsuits, liferafts and emergency evacuationbreathing devices (EEBD), can be found. The country of interest can be selectedfollowed by the town and products of interest. Go to www.lalizas.com/service.php to visitLalizas worldwide network of servicestations.The German navigation systemmanufacturer Raytheon Anschtz will showits navigation systems from the gyrocompass Anschtz Standard 22 through thenew generation of manual and automaticsteering control systems to the Synapsisintegrated bridge and navigation system (INS). Synapsis is claimed to be the worlds firstnavigation system, which has been typeapproved according to IMOs new INSPerformance Standard. The INS key elementsare new multi-functional workstations, whichuse standardised, ultra-compact long-life PCsand a standard software framework to allowcustomising bridge systems for any shipsrequirements. Thus, the newly developed Synapsisintegration platform not only controls allconfigurations, functional tasks and displaysof the workstations but also providesflexibility for upgrades and extensions. It alsofully integrates with Anschtz gyrocompasses, autopilots and manual steeringsystems, the company said.The new steering gear control systems,NautoSteer AS and NautoPilot 5000, havebeen developed to set high standards of safetyand precision in steering, but also to contributeto a significant decrease in fuel consumptionand emissions.NautoSteer AS steering control series isbased on CAN-bus technology and providesadvanced functions to set the standard forhighest safety in steering. Its functions coverintegrated steering failure and wire-breakmonitoring and a simplified steering modeselector switch, which separates anindependent Direct NFU non-follow-upsteering position from a Main follow-upsteering position. The takeover of steeringcontrol is possible from any steering position.NautoPilot 5000 features an integratedheading and rudder plotter on its large colourdisplay, which instantaneously indicates thesteering performance of the autopilot due tothe effects of changes to parameter settings,such as rudder, counter rudder and yawing. The NP 5000 can also be operated in eco-mode to reduce sensitivity to periodicalyawing movements. Subsequently, less rudderaction is required, which leads to lower levelsof speed reduction and thus less fuelconsumption. If high precision in automaticsteering is needed, the NP 5000 autopilotoffers a new course control mode and a high-precision controller to maintain the precisesteering performance.In addition to the NP 5000, RaytheonAnschtz addresses the requirements for fuel-efficient ship systems with the development ofnew features that help optimising routeplanning on ECDIS. As an example, theSynapsis ECDIS has been enhanced with anadvanced automatic route planning function tocalculate the shortest route between twodestinations. The ECDIS also i