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April 2014 l TANKEROperator 01

ContentsMarketsn A VLCC contango marketn Deliveries’ roller coaster

Cyprus reportn Back from the brinkn Web-based bunker tool

Anti-piracyn Intelligent crime fightingn Passive ship protection

Manning & Trainingn On board training to grown Tsakos’ academy accreditedn ECDIS Ltd moves into the East

Front coverAt the end of last year, Videotel was granted UK MCA approval for a new training suite designed to meet the 1st January, 2014 STCWrules on Ship Security Training.These three training courses are among the latest releases from the company.In the last six months of 2013 alone, Videotel produced and launched over 15 training programmes and courses, which are provided in upto 29 languages. The subjects range from addressing COLREGS & IALA buoyage to essential knowledge on leadership & management.

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intertanko Event‘Big Apple’ entices tanker Industry

Technology 18 News Focus - BWMS 19 Jones Act tanker conversion 20 An efficient VLCC 21 ‘Eco’ thinking in vogue 22 Bunkers w Fuel trends to 2030 w Is it off spec? w Low sulphur debate 29 Ice Class Tankers w Few orders w Polar gets nearer 32 Tank Servicing w Pressure alarms accepted

Book and video reviews36

TANKEROperator l April 201402

COMMENT

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At a tanker conference lastmonth, the predominant themeswere vessel efficiency, coupledwith the ‘Eco-ship’ concept andwhat to do about the forthcominglow sulphur regulations.Speakers and delegates alike were trying tosecond guess what will happen in 2015 and2020, or 2025, when the sulphur fuel caps kickin. During the evening on day one of the

conference, Tanker Operator dashed over tothe Royal Festival Hall on London’s SouthBank where Lloyd’s Register unveiled a studyon global marine fuel trends to 2030, whichhad been put together with the help of theUniversity College London’s Energy Institute(UCL).This coincided with several papers given by

industry experts at the annual IPTA/NavigateChemical and Product Tanker conference,which has been addressing this problem, ortrying to, for a number of years. Listening to the speakers plus LR and

UCL’s presentation, it very much becameapparent that it was a case of ‘horses forcourses’. There is no one solution that fits all. Shipowning has become such a diverse

industry that the supporters of the use ofdistillates, or scrubber technology, or LNG asa fuel, all have a case. The main problem areasfor shipowners and operators (charterers) arethe US and Europe where ECAs have alreadycome into force, or are soon to come into playwith probably more to come.There were some who said that with vessels

attaining greater efficiency resulting in theburning of less fuel and the emitting of lessharmful gases, there won’t be a need for asmany ECAs as previously planned. However, nations will be keen to be seen to

be doing something about climate change now

and in the near future in a sort of politicalgesture, so I don’t see this argument gainingground, as sound as it might seem.It seems that each major shipping

organisation has its own favourite answer withINTERTANKO coming out strongly in favourof distillates a few years ago, while notsurprisingly, DNV GL went for LNG as a fuel,due to its experience gained with local ferriesand a growing list of passenger and offshoresupport vessels opting for LNG burningengines, operating in and around Norwegianwaters.

ConversionsWe have seen a couple of tanker conversionsto gas engines, but these were backed by theNorwegian NOx fund, as they were long termchartered to Statoil. Terntank has ordered gasburning chemical carriers, while methanolburning duel fuel engines were specifiedrecently for a series of MRs. You cannot avoid the phrase ‘Eco Tankers’

today and there are many different opinions asto how you achieve this. At the conference,Ardmore’s Mark Cameron described his fleetas being split between ‘Eco Mod’ and ‘EcoDesign’. ‘Eco Mod’ refers to the older vessels in the

fleet, which were purchased on thesecondhand market and enhanced by thefitting of Mewis Ducts, propeller boss cap finsand other energy saving equipment, whichwould bring a reasonably quick return oninvestment. The ‘Eco Design’ vessels are Ardmore’s

recent deliveries from the yards and itsnewbuilding programme. However, Cameronhad a word or two of warning about thetankers on offer at the yards. He said that theshipyards tended to sell their designs to acompany’s operations people, rather than the

technical people. He quoted the case of efficiency

calculations being worked out at the designdraft rather than at the scantling draft. Headvised the tanker industry to opt for thescantling draft every time when calculatingthe design’s operations. Warranted speed and consumption figures,

as stipulated by the owner in a charterparty,can vary from the shipyards’ initial designfigures. He quoted the case of being offered a2008-built MR on the secondhand market,which burned almost six tonnes more fuel perday than one of his 2004-built ‘Eco Mod’tankers. He also said that shipyards were still keen

to quote a potential client for a standarddesign rather than an ‘all singing, all dancing’version. This view was also born out by MANDiesel & Turbo who told Tanker Operatorthat the shipyards will normally buy the mainengines, generators, propellers, rudders, etc asseparate items and not as a package, unlessspecifically demanded by the owner.There is not much you can do with a

tanker’s general shape, but there areenhancements to be made at the bow andstern areas, including the rudders andpropellers and the main and auxiliarypropulsion machinery. There is also thequestion of hull coatings and for vessels inservice, you should ensure that the hull,rudders and propellers are clean to avoidunnecessary friction.A package approach at the design stage

will cost that little bit extra, but in themedium to long term, significant energysavings can be made, resulting in lower fuelcosts and thus lower emissions. Charterers arewaking up to the idea of ‘Eco’ vessels,especially when acting as operators, as theyare paying the fuel bill. TO

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iNdUSTry - MArkETS


VLCCs- a contangomarket developing?Observations on the price of VLCC assets would suggest a contango market is

developing, McQuilling Services said in a recent industry note.

Acontango market implies thatprices of an asset will be higher inthe future than today. Forexample, in the oil markets, a

contango exists when future oil prices areexpected to be higher than current prices. Thisis typically illustrated through the futuresmarket whereby prices for future delivery aremore than the spot levels. In the VLCC asset market, we believe the

recent rise of newbuilding prices, compared totheir five-year old counterparts, may also bedemonstrating a contango market, McQuillingsaid. Prices for VLCC newbuildings have been

on an impressive upward swing during the lastfew months after remaining relatively flat for

most of 2013. The current price for a VLCC newbuilding

is about $97 mill, a healthy $10 mill morethan the average price for 2013. At the sametime, prices for five-year old vessels dippedlast year only to recover in the last couple ofmonths. Newbuilding prices represent the futures

market for asset buyers, due to the requiredconstruction period, while five-year old assetvalues correspond with the spot market. In order to better understand the correlation,

we displayed the asset price divergence byplotting the newbuilding and five-year valueside-by-side with a starting base of 1.0 foreach. By adjusting the base factor of 1.0 for the

percentageincreases/decreases ona monthly basis, we

can clearly show the deviation that began inthe summer of last year (Figure 2). While there may be several factors behind

the uncoupling, which began in July, theimplication is for improving crude transportmarkets in the long-run, compared to theshort-term. Given the current VLCC deliveries

scheduled for this year (19) and in 2015 (32),we concur with this view, although rates haverecently shown strength helping five-year oldvalues accelerate in February of this year, theconsultancy said. In Figure 3, we plotted the VLCC earnings

during 2013, which may explain the weakerperformance for five-year old vessel values formost of the year. During the summer months of 2013, we

witnessed a drop in TCE levels, which wasduly represented in the prices of five-year old

Page 1

A contango market implies that

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Page 1

In this note, we discuss observations of an asset contango market for VLCC assets. A contango market implies that prices of an asset will be higher in the future than today. In the oil markets, a contango exists when future oil prices are expected to be higher than current prices. This event is typically illustrated through the futures market whereby prices for future delivery are more than the spot levels. In the VLCC asset market, we believe the recent rise of newbuilding prices compared to their five-year old peers may also be demonstrating a contango market. Figure 1: Newbuilding Prices VLCC

Source: McQuilling Services Prices for VLCC newbuildings have been on an impressive upward swing the last few months after remaining relatively flat for most of 2013. The current price for a VLCC newbuild is approximately US $97 million, a healthy US $10 million more than the average price for 2013. At the same time, prices for five-year old vessels dipped during 2013 only to recover in the last couple months. Newbuilding prices represent the futures market for asset buyers due to the required construction period, while five-year old asset values correspond with the spot market. In order to better understand the correlation, we display the asset price divergence by plotting the newbuilding and five-year value side-by-side with a starting base of 1.0 for each. By adjusting the base factor of 1.0 for the percentage increases/decreases on a monthly basis, we can clearly show the deviation that began in the summer of last year (Figure 2).

Figure 2: 5-YR vs. N/B Asset Values Jan 2013 Feb 2014 (1.0 Base)

Source: McQuilling Services While there may be several factors behind the uncoupling beginning in July, the implication is for improving crude transport markets in the long-run as compared to the short-term. Given the current deliveries scheduled for VLCCs this year (19) and in 2015 (32), we concur with this view, although rates have recently shown strength helping five-year old values accelerate in February of this year. In Figure 3, we display the VLCC earnings during 2013 which may explain the weaker performance for five-year old vessel values for most of the year. Figure 3: TCE Earnings VLCC Jan 2013 Feb 2014 (US $/day)

Source: McQuilling Services During the summer months, we witnessed a drop in TCE levels which was duly represented in the prices of five-year old vessels during the same period (Figure 2). However, sustained improvement in the TCE levels during the last

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iNdUSTry - MArkETS

April 2014 l TANKEROperator

vessels during the same period (Figure 2). However, sustainedimprovement in the TCE levels during the last four months providedinitial support and a boost in values as displayed for February (Figure2). Our outlook is consistent with the asset buying behaviour just

discussed, although in absolute terms, higher rates may be required,McQuilling warned. In our recently published 2014-2018 Tanker Market Outlook, we

used proprietary data to project the earnings for vessels across eightclasses. While we expect earnings to be pressured this year, a gradualrebound should transpire. Using the current purchase price of a five-year old VLCC ($60 mill)

and our projected value for a 10-year old VLCC in 2018, weillustrated the required TCE rates for an owner to achieve a 10% IRR(Figure 4). If the market can sustain the momentum that began late lastyear, smiles may once again return to the faces of VLCC owners. In conclusion, we highlighted what may be a market indication that

brighter days may be ahead for the crude tanker market, but probablynot immediately. The recent contango development may be an earlysign of an improving longer term trend. However, we remain cautious about the short-term fundamentals

within the industry, particularly on the supply side. Continued orderingof new tonnage may reverse the sentiment at the back end of theforecast period, McQuilling said.

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Page 1

In this note, we discuss observations of an asset contango market for VLCC assets. A contango market implies that prices of an asset will be higher in the future than today. In the oil markets, a contango exists when future oil prices are expected to be higher than current prices. This event is typically illustrated through the futures market whereby prices for future delivery are more than the spot levels. In the VLCC asset market, we believe the recent rise of newbuilding prices compared to their five-year old peers may also be demonstrating a contango market. Figure 1: Newbuilding Prices VLCC

Source: McQuilling Services Prices for VLCC newbuildings have been on an impressive upward swing the last few months after remaining relatively flat for most of 2013. The current price for a VLCC newbuild is approximately US $97 million, a healthy US $10 million more than the average price for 2013. At the same time, prices for five-year old vessels dipped during 2013 only to recover in the last couple months. Newbuilding prices represent the futures market for asset buyers due to the required construction period, while five-year old asset values correspond with the spot market. In order to better understand the correlation, we display the asset price divergence by plotting the newbuilding and five-year value side-by-side with a starting base of 1.0 for each. By adjusting the base factor of 1.0 for the percentage increases/decreases on a monthly basis, we can clearly show the deviation that began in the summer of last year (Figure 2).

Figure 2: 5-YR vs. N/B Asset Values Jan 2013 Feb 2014 (1.0 Base)

Source: McQuilling Services While there may be several factors behind the uncoupling beginning in July, the implication is for improving crude transport markets in the long-run as compared to the short-term. Given the current deliveries scheduled for VLCCs this year (19) and in 2015 (32), we concur with this view, although rates have recently shown strength helping five-year old values accelerate in February of this year. In Figure 3, we display the VLCC earnings during 2013 which may explain the weaker performance for five-year old vessel values for most of the year. Figure 3: TCE Earnings VLCC Jan 2013 Feb 2014 (US $/day)

Source: McQuilling Services During the summer months, we witnessed a drop in TCE levels which was duly represented in the prices of five-year old vessels during the same period (Figure 2). However, sustained improvement in the TCE levels during the last

0

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Page 2

four months provided initial support and a boost in values as displayed for February (Figure 2). Our outlook is consistent with the asset buying behavior just discussed, although in absolute terms, higher rates may be required. In our recently published 2014-2018 Tanker Market Outlook, we used proprietary data to project the earnings for vessels across eight classes. While we expect earnings to be pressured this year, a gradual rebound should transpire. Figure 4: TCE Sensitivity 10% Discount Rate 2014-2018

Source: McQuilling Services

Using the current purchase price of a five-year old VLCC (US $60 million) and our projected value for a ten-year old VLCC in 2018, we illustrate the required TCE rates for an owner to achieve a 10% IRR (Figure 4). If the market can sustain the momentum that began late last year, smiles may once again return to the faces of VLCC owners. In conclusion, we highlight what may be an indication from the market that brighter days may be ahead for the crude tanker market, but probably not immediately. The recent contango development may be an early sign of an improving longer term trend. We remain cautious about the short-term fundamentals within the industry, particularly on the supply side, and continued ordering of new tonnage may reverse the sentiment at the back end of the forecast period.

0

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2014 2015 2016 2017 2018

TCE Levels Required - 10% IRR McQuilling Forecast - TD1/TD15 Triangulation

US $/day



Figure 4 - TCE Sensitivity - 10% Discount Rate 2014-2018

Figure 3 - TCE Earnings - VLCC Jan 2013 - Feb 2014 (US$/day)

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iNdUSTry - MArkETS

The final total of 21 mill dwt was 10mill dwt lower than 2012 andconsiderably down from the 45mill dwt delivered in 2009, Gibson

Research said.* Not surprisingly, crude tankertonnage accounted for three quarters of the2013 total at 15.2 mill dwt.The graph illustrates the dreadful result of the

over-ordering of both crude and product tonnageduring the burgeoning tanker market in the years inthe run up to the financial crisis in the autumn of2008. Despite delays and cancellations, deliveries from

the Far Eastern shipyards continued to flood themarket with unwelcome tonnage. Between 2009 and2012, the annual average tonnage hitting the waterwas 38.7 mill dwt, which arrived into a marketoffering little hope of recouping the high investmentcosts, or making any inroads into the repayment ofdebt. Moving on from this period, we can see that the

tanker market emphasis is clearly showing a shift

towards the clean products market in terms of thesurge in orders placed last year, Gibson said.Scheduled product tanker tonnage for delivery this

year is set to increase by 3 mill dwt to around 8.8mill dwt, climbing to around 12.3 mill dwt in 2016.In comparison, crude deliveries will be slightly

higher this year than seen in 2013 at 15.4 mill dwt,but will fall dramatically to just 8.2 mill thereafterbefore moving up again in 2016 reflecting the recentsurge in VLCC orders.

Slippage inevitableGibson said that its analysis for 2014-2016 was

based on no cancellations, or delays. Howeversome slippage will inevitably occur, includingnegotiated delays and of course the failure ofsome shipyards to fulfil their orderbook. Orders placed now are generally for delivery in

2016 and beyond, so the profile will besomewhat lower than shown in the graph.However, next year’s product tanker deliverieswill overtake crude tonnage.

Owners may still be tempted into a fresh waveof investment on the back of the recent temporaryrebound in several of the tanker sectors.Inevitably newbuilding prices have started to

rise and there could be an element of buyingbefore prices gain too much momentum. Of course statistics can be misinterpreted. The

forward orderbook for product tankers (intonnage terms) is still much lower than the peakdeliveries, 14.1 and 14.9 mill dwt in 2008 and2009, respectively, but these high figures came onthe back of replacement tonnage. Today’s investment is firmly based on the

belief in the future prospects for a sustained long-haul products trade. The new investment cominginto shipping through hedge funds and privateequity may do a better job in managing to keep atighter check on any over-investment, Gibsonconcluded.

*Gibson’s figures include all tankers of 25,000dwt and over.

Tanker deliveries’roller coaster

Tanker deliveries in 2013, both in terms of numbers and deadweight, were the lowest recorded since 2002, a recent report claimed.

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At the recent ipTA/NavigateChemical/product Tankerconference, there were severalpapers given on the chemical andproduct tanker trades. Taking chemical tankers first, at present, thechemical trades amount to 114 mill tonnes perannum. This sector has seen a growth patternof 5% per annum over the past 20 years, aleading consultant said.Charles Lawrie of Richardson Lawrie

Associates said that Middle East exportsaccount for 36% of the trade. However, thesecargoes are primarily commodities, butspecialist cargoes are growing out of theregion. Europe accounts for less than 20% ofthe trade and here the cargoes are of a morespecialist nature.Asia accounts for two thirds of the demand

in commodity cargoes, while in 10 years.Europe could see its chemical industrydecimated by the predicted refinery closures,leading to more petrochemical imports. Chinais investing in more petrochemical plants with30 mill tonnes of new capacity planned.

However, not all of this could come on stream. It is estimated that 17.6 mill dwt of tonnage

is habitually employed in the chemical trades.The orderbook accounts for another 1.7 milldwt as a base case, or 2.8 mill dwt as amaximum case, Lawrie said. Scrappingpotential is limited. Partial, or fully stainless steel fitted vessels

still dominate the trades across all age bracketsand all size ranges, except for vessels of above40,000 dwt. Coated vessels amount to 41% ofthe fleet of which 70% are over 40,000 dwt. Vessel demand has remained remarkably

robust even during the past 10 years, Lawriesaid. However, the extent of future US exportswas still uncertain, while further Europeanplant closures could boost imports into theregion. Turning to the products tanker trades, Jeff

McGee of Makai Marine Advisors said thatthe start up of Arabian Gulf refineries coupledwith increased European gasoil imports shouldboost tonne/mile demand this year. He alsothought that US exports to Latin Americawould stabilise.

Tighter vetting standards and the cost ofsoon to be mandated ballast watermanagement systems represented threats toolder clean tonnage resulting in the potentialfor scrapping ages to come down. Forexample, scrapping vessels at 20 years of agewould raise the near-term removal prospects to2-2.5 mill dwt per year, or 2% of fleet, he said.Due to the current orderbook, discipline in

contracting is required. However, with theincrease in earnings, this could encourage stillmore orders. He thought that the clean tankers trading in

the dirty segment represent a potentialoverhang, but the increasing supply shouldkeep them in the dirty markets. Improvingclean tanker trades demand should allowutilisations to recover and push earningshigher before the next wave of deliveries hitthe market. Both the spot and period rates could surge

later this year, before the influx of newtonnage in 2015-2017, he said, explaining thatgasoil cargoes would remain the key driver ofproduct carrier demand.

Chemical/product tanker thoughts

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iNdUSTry - CyprUS rEpOrT


The main purpose of the Chamber isto promote the interests of CyprusShipping and to continuouslyfurther the reputation of the

Cyprus flag. The Chamber currently ranks as one of the

largest national shipping associations in theworld, due to several large shipmanagementconcerns, who are headquartered on the island.Within the framework of the various events

that will be organised to mark its 25thbirthday, the Chamber will be the hosting ofthe International Chamber of Shipping’s (ICS)annual general meeting, which is due to takeplace in Limassol in June. At the same time, in co-operation with the

Cyprus Maritime Administration andexploiting the presence of the internationalshipping community, the Chamber will host asummit of shipping ministers from differentcountries.In another move, the EU ministerial

committee for the Integrated Maritime Policy(IMP) has endorsed the Cypriot draft strategy,which aims for the full utilisation andsustainable economic exploitation of themaritime areas of Cyprus. The Chamber said that it had prepared and

submitted its comments on the draft strategy tothe Cyprus Minister of Communications andWorks. The submission identified gaps, ormissing elements, that were not taken intoconsideration and made specificrecommendations, giving particular attentionon the section concerning shipping. “We anticipate that through our comments

and recommendations, a clear message will besend to the Government that shipping, as oneof the main supporting pillars of the Cypruseconomy, must be supported and promoted asmuch as possible,” the chamber said in astatement.It weas agreed at the EU minister’s meeting

held in Limassol on 8th October, 2012, toadopt a marine and maritime agenda forgrowth and jobs – the Limassol Declaration. At this meeting, which came five years after

the launch of the EU IMP, the member statesand the EC re-affirmed that a dynamic and co-ordinated approach to maritime affairsenahances the development of the EU’s ‘BlueEconomy’, while ensuring the health of theseas and oceans, the EU said in a release. Despite the island nation enduring

considerable problems during the financialcrisis, primarily due to being linked to theGreek banking system, none of the largeshipping companies domiciled in Cyprus haspulled out. The only one discussing a move away from

the island, known to Tanker Operator, is RaviMehotra’s Foresight Group, but this wasthought to be for business reasons, rather thanany fear of being caught up in the country’sdebt crisis.

VindicationDuring the difficult years, the shipping worldwondered if the likes of Bernhard Schulte ShipManagement, Columbia Shipmanagement,Interorient, Unicom and others would relocate,as they all have considerable presence in othercountries. However, they have remained andwith calmer winds now blowing acrossCyprus’ economy, their decision to stay looksto be vindicated. With oil and gas deposits found offshore,

exploration is on the horizon and talk of re-unification has returned, appeasing the oilcompanies’ fears. Once production isunderway, the economy could be given amuch needed boost quite quickly. However,the proposed privatisation of state-ownedorganisations, such as electricity, telecoms andport authorities, was recently thrown out ofParliament by the narrowest of margins andhas had to be re-submitted. Talks between the Greek and Turkish

communities resumed a couple of months ago,backed by the US. However, this will be atough nut to crack as opinion is divided onboth sides of the so called ‘green line’ inNicosia, which marks the boundary.Illustrating the efforts made to shore up the

economy, Standard & Poors recently raised itslong term sovereign debt rating on Cyprus,saying that the immediate risk of debtpayments not being made has receded, takinginto account the refinancing of the banks. This statement followed a second inspection

by the European Troika last November toassess the state of the island’s economy. Standard and Poors said: “The stable

outlook reflects our view that theimplementation risks remain, as the end of thethree-year European Commission,International Monetary Fund, and EuropeanCentral Bank programme approaches,balanced against the upside potential we seecoming from Cyprus’ economy”.

The Chamber considered that this positivedevelopment constitutes the “beginning of theend” of a series of downgraded ratings andwhich will initiate the re-entry of Cyprus inthe international financial markets, accordingto local reports.

It is not without some irony that Greece hasassumed the EU Presidency for the first half ofthis year. Making changes to the EU strategyon maritime affairs is just one of the items onthe agenda. Come July, Italy takes over. Among the many shipping companies,

including subsidiaries, domiciled on the island,several have tanker interests.These include Ahrenkiel, Ambra

Shipmanagement, Bernhard SchulteShipmanagement, BW Gas, ChemikalienSeetransport, Columbia Shipmanagement,Donnelly Tanker Management, EasternMediterranean Shipmanagement, FRSShipmanagement, Interorient Navigation,IONA Shipmanagement, OSM Group,Petronav Ship Management, Reederei Nord,SCF Unicom Management Services,Seatankers Management, Stena Holding, UPTPool and V Ships, plus others.There are also many full international

members and associate members, includingthose from the service, ship agency and supplysector, plus equipment manufacturers andrepair & maintenance concerns.

Cyprus- headingback from the brinkIn January of this year, the Cyprus Shipping Chamber started to celebrate its 25th

birthday having been established on 26th January, 1989.

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w omc.tn.bs-shipmanagemewww om


iNdUSTry - CyprUS rEpOrT

BunkeringAtSea.com is designed toact as a mediator, connectingbunker suppliers, brokers andtraders to bunker buyers around

the world allowing them to manage the bunkerbidding process completely online through an‘always available’ and transparent system.The shipowner, or shipmanager, is able to

view all platform-registered suppliers and theirselling fuel price, thus make an offer andnegotiate the best possible closing rate. Fromthe beginning to the end of the negotiations,all the documentation involved is created andavailable online through the platform,eliminating the time and bureaucracy involvedin conventional trading, the company claimed.By using the platform, all the parties

involved can achieve a more efficient andcost-effective business. For example, theshipowner can achieves the lowest possibleprices and thus save on operating costs,considering that bunker fuel forms one of themost cost daily expenses in commercialshipping. The benefits to the physical supplier are that

the company has a broader customer poolfrom around the world, thus increasing volumewhile reducing management costs. And finally,the broker has the advantage of counteroffering competitive prices with increasedsales and clientele that pass through his‘supply zone.’However, simplifying the bunkering process

is not the only advantage to using the onlinelive platform. Transparency is ensured, thusminimising disputes and cancellations betweensuppliers and owners, BAS said.In addition, www.bunkeringatsea.com offers

online information on oil prices and supplycosts at various ports worldwide, giving usersthe opportunity to strategically plan theirbunkering needs for cost effectivetransactions.

BAS said that its vision was to provide,through electronic auctions, reduced/optimisedbunker costs, as well as loweringadministrative costs while consuming less timewhile undertaking a purchase.The web-based purchasing tool operates in a

secure electronic environment to minimise thetime required for ordering, or offeringbunkers. Registered companies have the

ability to address a greater number ofproviders/customers. Throughout the entirebidding process, the user is in control since he,or she will be able to monitor the orderprocess from start to finish.The system is designed to facilitate day-to-

day bunkering business while providingflexibility and the ability to manage multipleorders/offers simultaneously.

Cyprus concernlaunches web-based

bunker transaction toolWhat is claimed to be the world’s first real time buying and selling marine fuel platform was

launched by Cyprus-based newly formed company Bunkering at Sea (BAS) last year.

Advantages claimed include - n Bunkeringatsea.com provides the first real time integrated platform for bunkers.n It connects physical bunker suppliers, brokers and traders to shipowners, time and bareboat charterers for all vessel types worldwide.n Constant updates are available on average selling prices and fuel trends for each bunkering port through platform data base.n Creation and management of bunker offers/requests.n Auction phase for best fuel prices.n Management of fleets and vessels.n Evaluation and referral of companies.n Effective monitoring of bunkering cases.

The benefits claimed are -n Reduces bunker supply final cost.n Simplifies the process.n Improves transparency of transactions throughout the procedure.n Minimises the likelihood of disputes and claims between shipowners and suppliers regarding bunkering.n Cuts administrative costs and improves collaboration among platform members. Simplifies procedures and minimises time spend.n Supports users in their decision making.n Advances future strategy development in bunkering.n Allows for implementation of custom needs.n Provides statistics that allow better future planning.n Evaluates transaction process and its users.n Improves remote decision capabilities for end users and management.n Provides rapid shared access to information from anywhere.n Contributes to the adaptation of new market conditions.n Low cost of use.

Advantages and benefits claimed

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iNdUSTry - ANTi-pirACy


Modern piracy is here to stay.The latest hotspot is WestAfrica, where the oil-rich Gulfof Guinea is seeing a spike in

the number of attacks. Vulnerable areasinclude the waters off Nigeria, Ivory Coast,Ghana, Benin, Togo, Cameroon and Lagos. However, pirates are not shy of extending

their roaming to Angola and Congo andseizing opportunities arising from politicalinstability in Syria, Egypt and Libya. Beyondthese areas too, from India and Indonesia toPeru and the Philippines, piracy is still athreat.Pirates have had to change their tactics in

the last few years and the geographicalexpansion is just one reaction to the presenceof naval task forces around the Gulf of Aden.Another is their use of ‘mother ships’operating from calm and open sea areas suchas in the South Atlantic. Neither do pirates limit themselves to

hostage taking and ransom anymore but arealso stealing high-value cargo from oil, or gas,tankers. Offshore installations around Nigeriafor instance, have also become an attractivetarget, as have support vessels. Manyplatforms and small vessels used for crewtransfer remain unprotected and can be easyprey. However, while piracy has evolved, so have

its countermeasures. Beside armed guards andnavy protection, which are still an effectivedeterrent, e-Navigation solutions can providevaluable information to help seafarers avoidconfrontation entirely.Research and the use of piracy data can go a

long way towards avoiding these situations.This is well proven by Jeppesen’s PiracyUpdate, an electronic chart overlay availablefor ECS and ECDIS, that helps identify,understand and manage the risks associatedwith crime at sea. Based on intelligence fromrecognised and authoritative sources on globalsea piracy, it is used by seafarers, shipownersand operators, insurers and several nationalnavies to reduce the likelihood of vessel

attack. As pirates rely on certain sea states to

operate, weather information is an essentialelement of anti-piracy data. JeppesenOceanView is a marine planning softwarecombining navigational charts, weatherinformation and automatic route planning tocreate a more comprehensive picture fordecision support in high risk areas. That said, we have to keep in mind that too

much information can sometimes be asharmful as too little. Feedback from PiracyUpdate and OceanView customers helped usto optimise and streamline the voyageplanning process within our free-to-useNauticalManager software, which aggregatesboth weather and piracy data into a lean anduser-friendly interface.

Advanced intelligence toolsAs a second officer on board an offshoreplatform support vessel/tug, I was charged bymy Master and towing master to undertakevoyage planning for the tow of a jack-up rigfrom Ammenam field in Nigeria to Ghana. At the time, we had no electronic planning

means – except for an ECS -planning had tobe done on paper charts. I had to take intoaccount the latest intelligence report sharedorally by the towing master and look forcertain weather and wave patterns. Theweather forecasts came in the shape of Internetprintouts. During the planning stage there were sudden

indications that piracy activities wereextending beyond a ‘safe offshore distance’.This meant that I had to re-plan the wholevoyage and the entire process ended up takingtwo days. Today, with a tool like Jeppesen

NauticalManager – I can incorporate dailypiracy activity notices with up to date weatherinformation. In Oceanview, I can also set‘alarm limits’ for weather conditions (eg waveheight). This would reduce the time requiredto create a complete voyage plan from twodays down to 20 minutes and adapting to new

circumstances would take minutes instead ofhours.In my experience, the integration of

electronic nautical charts (ENCs) withinformation, such as weather and piracy and e-Navigation software yields significant benefitsfor the seafarer. It not only optimises voyagesafety and fuel efficiency, but also streamlinesthe entire voyage planning process.

*This article was written by Geir Lyngheim Olsen,a product manager at Jeppesen Marine. He specialises in voyage, operations anddisruption planning solutions. He has had 11years’ experience as a seaman and officer onSearch and Rescue and offshore vessels (AnchorHandling Tug Supply (AHTS) and Subsea),including two years operating in volatile maritimeregions of Nigeria, Ghana and Angola. Olsen was instrumental in the Singapore MarineElectronic Highway ‘S100’ sea trials, has servedas a delegate and speaker on e-Navigation to theIMO and International Association of Marine Aidsto Navigation and Lighthouse Authorities (IALA)..He has a Masters Degree in philosophy and ethicsfrom the University of Bergen and a BachelorsDegree in nautical science from Stord/HaugesundUniversity College specialising in offshoretechnology and project management.

Fight piracy –intelligently!

The face of global piracy is constantly changing. E-Navigation technology offers aproactive complement to armed guards, by providing information that can prevent a

confrontation. But what kind of information is actually required?*

Jeppesen’s Geir lyngheim Olsen.

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iNdUSTry - ANTi-pirACy

While the number of incidents inSomalia has seen a sharpdecline, attacks in West Africahave escalated in the form of

cargo and bunker theft and crew kidnap. Thenumber of crew kidnappings- crew taken offvessels and held on land for ransom –quadrupled between 2012 and 2013. The IMBPiracy Reporting Centre said that the range ofthe attacks was extending and the level ofviolence against the crews was “dangerouslyhigh.”The safety of crew, coupled with the

crippling financial implications of each attackmeans investment in anti-piracy measures iscrucial. However, this is difficult to balance –the need to protect crew while maintaining thesafety of the vessel. For example, the use of razor wire for

vessel hardening creates a number of issues initself. The risk of injury to crew, threat to theenvironment, expense in continualreplacement and alarmingly on some vessels,its installation effects the use of life savingequipment – blocking access to life rafts andfire hoses, infringing on the SOLASconvention.There can be no doubt that the use of armed

guards has proved a controversial decision.Although not an option for every flag state andtanker owner, for those that are able, or havechosen to use armed guards, issues with

ongoing costs, admin, political connotations,coupled with the potential escalation of the useof force, proves a heavy burden. So what is the alternative? Guardian

Maritime has spent a year developing asolution to the problem of unwanted boardingwhile underway, at anchor, or in port. The firstreal alternative to razor wire, the patentedGUARDIAN ship protection system acts as ahighly visible, robust and simple way ofmaking access to ship or rig virtuallyimpossible. GUARDIAN units are quick, simple, safe to

install and prevent boarding equipment beingsecured to the vessel, with the equipmentprofile making it virtually impossible to climbover even if a grappling hook was to besecured on deck.Proof of the effectiveness of GUARDIAN

was shown during an attack on a containershipby pirates of the coast of Nigeria in May oflast year. The attack was unsuccessful - duemainly to the installation of GUARDIAN. Teresa Stevens, owner and designer of

GUARDIAN, said that the system workseffectively alone, or as part of a layereddefence system “The hardening of vessels isan absolute priority. GUARDIAN is perfect aspart of a layered defence system, working wellalone, or in tandem with the armed guards,acting as a shield for the guards to get intoposition unseen. Using both systems togetherin extreme high risk areas is the only way togo.”Guardian Maritime- whose motto is

“Safeguarding Seafarers worldwide” –believed that crews’ safety must be a priority.By ensuring the safety of the ship from pirateattack, the crew are protected from the threatof kidnap imprisonment and torture, enablingtheir safe return home at the end of theirrotation. “The crews of ships worldwide do agreat job supplying us all with what we want;they have the right to do their job in as safe anenvironment as can be provided. We areproud that our clients have chosenGUARDIAN to help provide thatenvironment,” Stevens said.

GUARDIAN is a Best Management Practice4 (BMP 4) compliant installation,environmentally friendly, recyclable and savesoperating costs by lasting three to five years.The units can also be swapped betweenvessels and tailored to suit any colour, or typeof seagoing vessel. In product testing, two ex-Royal Marines

tried to board a ship protected withGUARDIAN anti-piracy barriers. Followingthe trials, the commandoes concluded it wasimpossible to breach GUARDIAN’s defensivebarrier - despite perfect conditions andassistance given to them. The system is currently fitted on board

vessels belonging to some of the world’sbiggest fleets, including CMA-CGM, Maerskand BW Tankers.

Anti-piracy barrierFollowing on from the success of the productover the last 12 months, the GUARDIANbrand of anti-piracy barriers has beenrestructured under a new company name. The barriers are now marketed and sold by

Guardian Maritime Limited. In taking the whole operation back in-house,

the original inventors and owners, David andTeresa Stevens, plan to expand the company,adding to the team and increasing worldwiderepresentation, as well as further developing arange of additional anti-piracy products, theysaid.

SafeguardingSeafarers worldwide Piracy and armed robbery is one of the foremost threats facing the internationalshipping community today with over 2,700 seafarers attacked last year alone.

GUArdiAN in situ.

installing the equipment.

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iNdUSTry - MANNiNG & TrAiNiNG


He explained that for transferringCBT type training programs tovessels, owner and managers stillpreferred to use physical media,

such as DVDs, hard discs, or pre-installed on aPC. Some are even asking for web-basedprograms. “Our experience is that when several

hundred MBs of data, which is what we aretalking of for new CBT programs, as well asrevisions and updates, is to be transferred to avessel, our customers prefer a physical mediashipped to the vessel.“We do, however, think that this will

gradually change as an increasing number ofcompanies will install Fleetbroadband andVSAT. The main advantages we see withincreased download capacity are that ourcustomers can download updates to trainingmodules much more frequently than todayusing physical shipments,” Ringstadexplained. He said that due to the flood of new

regulations recently adopted and more soon tocome, the total number of trainingrequirements is increasing year-by-year and as

a consequence, Seagull’s library of trainingprograms will continue to grow. “Up until a couple of years ago the main

target groups for our training programs werecrew on board vessels. But with some of thenew regulations, for example MLC2006, wehave developed training programs specificallyfor office staff. These programs are mainlydelivered online/web based only for officestaff,” he explained.

EducationalCBT has been a natural part of the blend oftraining activities in many shipping companiesfor more than 10 years, he said. Seagull is alsodelivering its CBT products to many collegesand universities where the programs are usedas an integrated part of the education. The typical usages can, for example be

within navigation, where the students arelectured on the various topics, as well asundergoing simulator-based training. Inaddition CBT modules are used as exercisesand home work for the students to supplementthe lectures and give practical examples on thetheory.

As for specialist tanker and gas carriercertification courses, Ringstad said that thecompany offers specialist certified tankertraining courses for oil, gas and chemical. “One of the main training products which

Seagull offered when we established thecompany in 1996 was the classroom and

On board training isset for growth

On board training has been around for several years, but has this method increased inrecent times with the advent of more sophisticated communications packages? Tanker

Operator spoke with Seagull’s managing director Roger Ringstad to gain his views on the subject.

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simulator-based courses for tanker safetytraining following the IMO Model courses onthese topics. “More than 10 years ago, we developed a

distance course concept of these courses, suchthat the candidate could perform the courses

by themselves on board during their workingcontracts. During recent years, we have usedseveral of our CBT modules to support thesecourses,” Ringstad said.Turning to certification in general, he said:

“Our ‘Onboard Courses’, which offer acombination of CBTmodules covering theorycombined with practicalhands-on training onboard the vessel, are agood example ofapproved courses whichgive the seafarers acertificate. “Many of these

courses replace shore-based classroom courses,which mean the seafarerdoesn’t need to spend hisholiday on a course andthe shipping companysaves thetravel/accommodationcost for shore-basedcourse - so a win-winsituation. Our most well-known approved onboard courses includeShip Security Officer,Security Awareness andDuties, TankermanSafety, ECDIS, etc,” hesaid.To deliver the courses

to the vessels, thecompany has been

working with Palantir on several projects overthe last three to four years. Ringstadexplained that Palantir specialises in deliveringserver/network installation and maintenance ofvessels’ network and all the softwareapplications on board. Seagull can deliver its entire software suit,

including administration, assessment and allCBT modules pre-installed on Palantir’s mainproduct KeepUp@Sea. “This makes it veryeasy for vessels to receive updates to Seagullsoftware, via Palantir services,” he said. As for Seagull’s future, Ringstad said that

the company was determined to continue itsgrowth pattern “…….because we believe thisis needed to continue to deliver and maintain alarge library of training programs and courses,as well as the market leading software fortraining administration and competencemanagement. “The growth will primarily be organic, but

also by acquisitions when we find companiesthat add value to the Seagull group ofcompanies,” he concluded.As part of its growth pattern, Seagull has

acquired all the shares in e-learning specialistMindIT Solutions, based at Kristiansand,Norway.The company is a specialist provider of web

based learning to the offshore industry. “The MindIT team is a reliable and high

quality supplier of e-learning services to theoffshore market and represents a basis forSeagull to enter the offshore segment,” saidOscar Johansen, Chairman of Seagull Holding at the time of the acquisition earlierthis year.



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INDUSTRY – MARKETS

October 2013 � TANKEROperator 05

entered into the consultancy’s quantitativeforecasting model. This uses the relationshipbetween spot rates and the CI. The result ofthis analysis indicates a significant freight rateresponse to a reduced tonnage supply. Thisresponse may provide enough evidence tosupport the call for scrapping of vessels 15-years of age, or older.

Rate increaseIn the three VLCC trading routes thatMcQuilling forecast -AG/West, AG/East andWAF/East - the average increase would be 11WS points, or approximately $17,000 per day.The impact on average earnings throughoutthe forecast period is illustrated in Figure 2.The most significant rise in owners’ earningswould theoretically occur in 2014.

Further support for this drastic inventoryreduction initiative was illustrated from theeconomic perspective in a previous report inwhich it was observed that the large variationof TCEs in the marketplace to the relativedifference in required TCEs for the variousVLCC lifespan assumptions appears to bequite small.

The $5,500 per day difference between therequired TCE of a VLCC traded for 15 yearsand one traded for 25 years is immaterial,compared to the expected variation that will beobserved in the marketplace over the life of

the vessel (Figure 3). The explanation for this lies in the effect of

discounting the cash flows over time. The cashflows in the later years of the project make farless contribution than those in the early years.

As a result, the economic impact ofshortening the vessel’s life is not as severe as might be expectedyet the potential forsubstantially differentTCEs than requiredduring these years is high.

Based on currentmarket realities andthe theoreticalassumptions thatillustrate earlyscrapping couldsubstantially improvemarket fundamentalsat little expected costto owners, a swift andsteady fleet trimmingshould occur.

However,McQuilling said thatit was aware that likeany business, tankerowners do not operateunder an altruistic

code so putting theory into practice will notbe easy.

For years the evidence has been mountingthat the market was adopting new operatingparameters. This has been bolstered by vettingand technical requirements combined withswollen inventories from past orderbooks.

However, even if these elevated deletionsoccur, further restraint will still be required. Ifavailable tonnage is trimmed and rates rise asforecast, increasing transit speeds will betempting. However, speeding up vessels wouldeliminate some of the gains by raising tonnageavailability through reduced voyage times.

Although the 10% solution will result indearer transportation costs, charterers shouldalso support this move, as it will allay anyconcerns regarding owners cutting corners tosave on operating costs.

Sending a 15-year old vessel to the breakersin isolation will accomplish nothing, meaningcollective action is required. Coaxingcollective action, such as that discussed in thisreport requires true leadership and our industryhas a long history of producing leaders.

“Will anyone step up to the task?”McQuilling asked.

Source: McQuilling Services.

2.5 7.5 12.5

17.5

22.5

27.5

32.5

37.5

42.5

47.5

52.5

57.5

62.5

67.5

72.5

77.5

82.5

87.5

92.5

97.5

102.5

107.5

112.5

117.5

122.5

127.5

132.5

137.5

142.5

147.5

152.5

157.5

162.5

167.5

Figure 3: VLCC TCE Freight Rate Distribution 2000-2012 (US$/Day)

-1 Std DevUS$10.700/Day

15-year Life | US$ 48.800/Day



AverageUS$44.400/Day

+1 Std DevUS$78.100/Day

Normal Curve Distribution

Average Monthly TCE (US$000/Day)

Average TCE required for 10% ROE

Since 2012, the reading of theVLCC sector has remained

one of oversupply- McQuilling

“”

TO

THE FOUNDATION FOR SAFETY OF NAVIGATIONAND ENVIRONMENT PROTECTIONSHIP HANDLING RESEARCH

AND TRAINING CENTREILAWA

Our Training Centre offers you:SPECIALIZED COURSES IN HANDLING OF

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tankers of capacity 150 000 DWT and 280 000 DWT are available;

• STS operations, approaching SBM and FPSO are included in the programme;

• Harbour manoeuvres are supported by manned models of large ASD and tractor tugs.

For further information please contact:Ship Handling Research and Training Centre,

Ilawa, Polandtel./fax: +48 89 648 74 90 or +48 58 341 59 19

e-mail: [email protected]

p2-33:p2-7.qxd 18/03/2014 11:46 Page 5

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FURUNO provides thoroughgoing ECDIS training:

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• FURUNO Deutschland GmbH (Germany), Thesi Consulting (Italy), GMC Maritime Training Center (Greece), OCEAN TRAINING CENTER (Turkey), RHME/Imtech Marine (UAE), Odessa Maritime Training Center (Ukraine), A.S. Moloobhoy & Sons (India), FURUNO Shanghai (China), COMPASS Training Center (Philippines) and VERITAS Maritime Training Center (Philippines).

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FURUNO ELECTRIC CO., LTD.

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FMD_Full A4.ai 1 10-03-2014 14:53:10



Tsakos ColumbiaShipmanagement (TCM) MariaTsakos TCM Academy hasrecently been accredited as anApproved Training provider bylloyd’s register, as well as beingcertified to the BS EN iSO9001:2008 Quality ManagementSystem Standard by lrQA. The academy has obtained approval for twocourses - Operational use of electronic chartdisplay and information system and OilRecord Book, while the quality managementsystem ISO 9001 is applicable to the‘Provision of Training Services to ShippingCompany Personnel and Seafarers’.On 7th February during a ceremony held at

the TCM premises and attended by CaptPanagiotis Tsakos, Nikolaos Tsakos andmanagers and staff of the Tsakos group, theLR chairman Thomas Thune Andersenpresented the certificates to VassilisPapageorgiou, Tsakos Group deputy chairman,George Vassiliades, TCM deputy managingdirector and Nikolas Themelaros, theacademy’s manager.“My sincere congratulations go out to the

management and staff of the Maria TsakosTCM Academy for this significantachievement and we look forward tosupporting the further development of the

academy in the future with the key objectiveof enhancing standards of training andcompetence in the maritime industry andpromoting safer and cleaner shipping,” saidAndersen.The LR Approved Training Provider scheme

provides third party assessment andcertification of the ability to provide trainingto a recognised standard and deliver courseswhich meet their stated objectives. It providesa benchmark for the marine industry whenselecting courses for staff development andtraining.“It is our duty to provide the best training

facilities to our seafarers and shore personneland to continuously develop and improve theircompetence in order to ensure operationalexcellence, both in terms of safety, as well asefficiency and performance towards ourclients. “The reason we invested in simulators was

the opportunity for our crew to operate andreact in a virtual, yet fully realistic,environment where mistakes become lessonslearnt, without risking damage to environment,equipment and people” Capt Tsakos said.

kongsberg equipmentThe Maria Tsakos TCM Academy occupiesabout 500 sq m on the fifth floor of the Tsakosheadquarters in Athens and it is fully equipped

with the latest Kongsberg simulatorsincluding;n K-Sim Polaris – DNV class A ship’s bridge simulator with 240 deg visual field of view for complete navigation and ship manoeuvring training.n Four K-Sim Polaris, desktop simulators with ECDIS.n Four K-Sim Neptune Cargo, where the cargo, ballast, inert/venting, washing and associated sub-systems are presented as interactive mimic diagrams.n Four K-Sim Engine Neptune, desktop simulators, which are fully integrated with the bridge simulator for full crew training.n Big View touch screen system – an interactive schematic mimic of all relevant engine room compartments, ideal for full system understanding.The academy’s training will not only be

restricted to certification and statutorytraining, but will also be expanded to cater forthe specific needs of the officers and theoperational requirements of the vessel theofficers are assigned to. In addition, it will provide training to shore

personnel, covering new regulations, analysisof incidents, loss prevention andfamiliarisation of new equipment to be fittedon board vessels.

Tsakos’ academy wins its spurs

Uk-based training concern ECdiSltd is expanding its empire byopening up in Singapore. This move comes some four months after thecompany visited the country on a UK Trade &Investment (UKTI) trade mission. ECDIS Ltd said that it hoped to open the

new training centre in Singapore later thisyear, creating an estimated 12 new local jobs. The new centre will house some of the latest

training technology, similar to that used dailyand displayed in the ECDIS Ltd UKheadquarters in Whiteley near Fareham. Since opening in 2008, ECDIS Ltd has

doubled in size every year and is nowestablished as an independent ECDIS trainingcompany, offering generic and type specificcourses for most of the 34 leading systemmanufacturers. The reason for the new centre is to create a

centre of excellence in Asia, the company said.

ComplexNick Lambert, ECDIS Ltd’s non-executivedirector, said: “The transition to digitalnavigation is a complex and challengingtechnological and HR issue for shippingcompanies, so the training we provide is indemand. The Far East is widely regarded asthe fastest growing region of the shippingindustry and Singapore is an excellent regionalhub. “UKTI has been very supportive throughout

the planning process in Singapore and the UK;we’ve gained great benefit from their advice,funding regimes and international network – thetools we need to progress our aspirations,” hesaid. Although a relatively new company, ECDIS

Ltd claimed to have produced the world’s first

independent ECDIS manual for operators andthe world’s first comprehensive ECDISprocedures guide for digital ships. Today, the company provides advice to about

100 shipping companies for ECDIS purchasing,training and charting support, owns one of theworld’s largest independent websites on ECDISregulations and has liaised with just under 4,000people and organisations, including leadingshipping companies and governments. Both managing director Mark Broster and

Lambert had several meetings planned duringtheir visit to Singapore last month with localcompanies and businesses to discuss theopening of the new centre.ECDIS Ltd is holding an open day on Friday

16th May at its UK headquarters, at which guestspeaker, UK MAIB’s Richard North, will beaddressing inadequate training and an overreliance on electronic aids to navigation.

ECDIS Ltd to open up in Asia

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iNdUSTry - iNTErTANkO EVENT


Taking the usual format, it bringstogether INTERTANKO membersand associate members, plus a highlevel group of top-level industry

figures.They will discuss how the tanker industry

can adapt for survival and also to workthrough a number of crucial issues at apractical level in workshops.As with past INTERTANKO events, there

will be many opportunities to network withcolleagues and peers to compare notes on howthe industry is developing.The programme kicks off on Tuesday 6th

May with an Executive Committee meetingand the Council Dinner for members and theirinvited guests.On Wednesday 7th May, it is the turn of

Intertanko’s Council to meet, which isfollowed by the Annual General Meeting andthen the Annual Dinner.The following day sees the traditional

seminar day, which has been given the theme-Sustainability – Moving the Story On. This day is split into four sections. The first

takes in the big picture by analysing trendswith players involved in trade flows, marketsand finance. The second session looks at – Ethics and

Tanker Chartering – which will investigatetanker chartering practices, while the thirdsession is devoted to assessing risk – whatstakeholders look for when vetting and howthey go about it. The fourth and final sessionwill focus on proposing solutions for asustainable tanker industry. At lunchtime an official signing ceremony

will take place of the INTERTANKO Code ofConduct.During the evening, INTERTANKO will be

hosting a social/drinks reception enabling thedelegates, speakers and exhibitors to networkin a convivial atmosphere.

WorkshopsOn Friday 9th May there are a series of

interactive workshop days and a parallel golfevent.

One workshop addresses shipping’s airemissions asking the question – Can theRequirements be Achieved? This interactivesession will address the complex set of airemissions regulations for shipping - bothalready adopted and new regulations underdebate - looking at SOx, NOx and CO2.Another will concentrate on giving an

environmental environment overview focusingon US and IMO ballast water rules.A third will cover the threat of sanctions

under the title of ‘How to stay out of jail andsave millions of dollars’ and will lookparticulary at the Iranian situation. Security at sea is the subject of another

workshop taking into consideration piracy, theGulf of Guinea and emerging threats.As with the other events, there are alternative

social days organised for partners.

INTERTANKOheads for New York

This year’s INTERTANKO’s Annual Event takes place in New York from 6th-9th May 2014.

iNTErTANkO’s chairman- Gaslog’s Graham Westgarth.

iNTErTANkO’s managing directorkatharina Stanzel. TO


TECHNOlOGy NEWS FOCUS

in addition, the system has formallyreceived IMO type approval from DNVGL.

Since its launch in April 2013, Alfa Lavalsaid that its PureBallast 3.0 has enjoyedtremendous success. Offering space savings of50% and energy savings of up to 60% overprevious versions, the system has gained ahigh acceptance among customers worldwide,including both Asian and European shipyards. A key reason for this is the system’s

flexibility, which has now been increased bythe release of the reactor.“The intermediate PureBallast 3.0 reactor

complements our existing 300 and 1,000 cu mper hour sizes, enabling even more compactand energy-efficient ballast water treatment,”explained Per Warg, the Alfa Laval businessmanager responsible for PureBallast. Further flexibility is provided by Bollfilter,

a new alternative to Hydac for the PureBallast3.0 filter.The new 600 cu m per hour reactor is

slightly smaller than the 1,000 cu m per hourreactor already in use. The main difference isnot the reactor’s size, however, but the smallertreatment systems it allows. The reactor makespossible the following configurations:n PureBallast 500, comprising one 600 cu m per hour and one 500 cu m per hour filter.n PureBallast 600, comprising one 600 cu m per hour filter and one 750 cu m per hour.n PureBallast 1200, comprising two 600 cu m per hour reactors and one 1,500 cu m per hour filter.The key advantage of the PureBallast 500 andPureBallast 600 configurations is the reductionin system components. Previously, two 300 cum per hour reactors were needed for theseflow rates. When the two are replaced by asingle 600 unit reactor, installation is furthersimplified and more space is saved in theengine room, the company said.For owners, whose flow needs are greater

than 1,000 cu m per hour but not up to 1,500cu m per hour, there are substantial energy

savings in the PureBallast 1200 configuration.Built with two of the new reactors, the systemhas a maximum power consumption of 125kW. This a major reduction compared to the201 kW of the PureBallast 1,500 system,which up to now has been the next availablestep.

Streamlined “A more streamlined solution for 1,200 cu mper hour is in keeping not only with ourdevelopment strategy for PureBallast, but alsowith Alfa Laval’s overall focus on energyefficiency,” said Warg. “Our aim in all areas isto minimise oversizing, so that energyconsumption stays aligned with actual needs.”IMO has awarded Alfa Laval type approval

for the system, which was announced by DNVGL on 14th February. Although PureBallast3.0 uses the same core technology as itspredecessors, a new approval was necessary,due to the huge advances between versions 2.0and 3.0.“Alfa Laval is pleased to have formal IMO

type approval for PureBallast 3.0, even if ourcustomers have been confident all along,”Warg said of the approval. “It confirms whatour data has always shown, namely thatPureBallast 3.0 performs as well or better thanprevious type-approved versions.”The tests forming the basis for DNV GL’s

decision were conducted at the DHI testinginstitute in Denmark. Since these wereconducted according to both IMO and ETVprotocols, they also lay the groundwork forfuture US Coast Guard approval.

USCG CloserWhile USCG approval for PureBallast 3.0 isstill some time off, it appears closer due to apotential resolution of conflicting treatmentdefinitions. In contrast to IMO legislation, theUSCG Ballast Water Discharge Standarddefines treatment as effective when noorganisms survive the treatment process. Thishas been a problem for UV-based systems likePureBallast, which kill many organisms

outright but render others non-viable bymaking them unable to reproduce.“In principle, the US authorities have been

willing to accept a broader definition ofeffective treatment, since organisms thatcannot reproduce pose no threat to their hostenvironment,” explained Warg. “However, theUSCG has questioned the reliability ofmethods for measuring non-viability. Together,we’ve been working to remove those doubts.”A team, comprising representatives from the

USCG, test institutes (eg DHI) and suppliersof UV-based ballast water treatment systemshas been appointed to evaluate the availabletesting procedures. Thus far, the resultsindicate that non-viability can be reliablyverified, which gives UV-based systems abetter footing with regard to USCGlegislation.“Alfa Laval is engaged in regular dialogue

with the USCG, and we are confident that theissue of definition will be resolved in the nearfuture,” Warg said. “In the meantime, we arepleased to have IMO type approval forPureBallast 3.0 and an extremely strongposition in today’s ballast water treatmentmarket.”

Alfa Laval adds toPureBallast system

Alfa Laval has added a 600 cu m per hour reactor to the PureBallast 3.0 series, enablingnew configurations with fewer components and considerable energy savings.

Alfa laval’s per Varg.

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TECHNOlOGy - JONES ACT CONVErSiON


The letter saying that modificationsin Poland will not jeopardise itseligibility to engage in UScoastwise trades was issued in

early March. The 46,666 dwt Overseas Tampa was built

at the Aker Philadelphia Shipyard as a JonesAct vessel and delivered to the AmericanShipping Co (AMSC) in April 2011. She wasthen leased to OSG. She has six pairs of cargotanks with a combined capacity of 52,650 cum and can load and discharge at a rate of3,500 cu m per hour. The conversion work will be undertaken by

Gdansk-based Remontowa shipyard to enablethe vessel to shuttle crude oil from the ShellStones field, according to industry sources.When asked if there was a contract betweenShell and OSG for the use of Overseas Tampa,Shell declined to comment.Initially, the Stones field will have two

subsea production wells tied back to an FPSOand will have a daily production rate of 50,000barrels. The Overseas Tampa is capable of

taking on board six days production in 15hours. The FPSO is located around 320 kmsouthwest of New Orleans, which is within aday’s voyage. Phase I of the development isplanned for completion in 2016 and this willbe followed by a further six wells, which willbe drilled at a later stage and connected to theFPSO. OSG already has experience of transporting

oil in the Gulf of Mexico. It commenced atimecharter in mid-2011 using the OverseasCascade and Overseas Chinook shuttle tankersto lift oil from a Petrobras America operatedFPSO located at the Chinook and Cascadeultra-deepwater fields some 250 km fromLouisiana’s coast. In reaching its preliminary decision, the

NVDC examined OSG’s proposal for certainwork on the Overseas Tampa to be undertakenoverseas, to determine if it would result in aloss of the tanker’s eligibility for a coastwiseendorsement under the Jones Act. The work proposed by OSG included:n Addition of a bow loading system consisting of a bow loading platform at about frames 95 to 110 with associated supporting systems and cargo pipe line.n Addition of generator set for auxiliary power to bow thruster and bow loading equipment.n Addition of single electrically driven bow thruster with tunnel (not previously fitted) at around frames 95-105.n Conversion of main engine fixed pitch propulsion to controllable pitch propulsion and related upgrades; addition of main engine damper.Other related work includes the high-techautomation of these components.The sections of the regulatory standard, US

Code Title 46 – Shipping, used to evaluatewhether a coastwise vessel that is rebuiltoutside the US will retain the privileges, are

the ‘major component test’ (46 CFR, Section67.177 [a)]) and the ‘considerable part test’(Section 67.177 [b]). Difficulties arise because there is no

regulatory definition of the term ‘majorcomponent test’, however, it has been deemed torelate to changes to the hull or superstructure.The Court (Shipbuilders Council of America v.US Coast Guard, 578 F. 3d 234 (4th Cir. 2009)),further defined this as a new, separate andcompletely-constructed unit, built separate fromand added to the vessel, which weighs morethan 1.5% of the steelweight (or discountedlightship weight) of the vessel.The ‘considerable parts test’ as defined says

‘a vessel is not considered rebuilt when thework performed on its hull or superstructureconstitutes 7.5% or less of the vessel’ssteelweight prior to the work’. The NVDCletter added that any separately constructedcomponents to the hull or superstructure,whether or not deemed ‘major’ under the ‘majorcomponent test’, would count towards this 7.5%threshold. The examination of the proposed

modifications to Overseas Tampa was referredto the US Coast Guard’s Naval ArchitectureDivision (NAD). Its report concluded that theOSG calculations for steelweight had includedseveral non-structural components, such aspiping and certain internal bulkheads and added168.6 tonnes of weight. NAD, focusing on theitems that formed part of the structural integrityand flotation envelope, such as underdeckreinforcements and thruster tunnel extensions,found that additional steelweight amounted toonly 22.9 tonnes. Using the OSG calculations, the combined

steelweight and discounted lightship weightresulted in a 2.14% weight increase. The NADevaluation produced a lower weight increase of0.3%. In both cases the results were well withinthe 7.5% threshold.

Polish shipyard toconvert Jones Actproduct tanker

OSG Ship Management (OSG), has passed the first hurdle with the USCG National VesselDocumentation Center’s (NVDC) determination, in its plan to convert the Jones Act Veteran Class

MT-46 product tanker Overseas Tampa, at a Polish shipyard, writes Brian Kershaw.

The Overseas Tampa is a product ofphiladelphia Shupyard. TO


TECHNOlOGy - EFFiCiENCy

Thus far this year, there have been aspate of VLCC orders reported butare the designs following the pathof the so called eco-tankers?

Tanker Operator asked MDT about increasinglarge tanker efficiency given the newregulations in place, or about to be put inplace. All new tanker designs are under pressure to

fulfil the IMO EEDI rules and all the tools inthe shipyards’ boxes are utilised, such as hulland bulb optimising (scantling, design andballast drafts), propeller optimising, etc, inorder to keep the ships service speedunchanged, MDT said.New technology for energy saving, such as

larger propellers, pre-swirl stators, propellerboss cap fins and latest generation of ultralong-stroke engine designs, are to some extentspecified in order to minimise the requiredpropulsion power for the service speedneeded and the maximisation of the engine’sefficiency, MDT said. MDT and its network of representatives

worldwide offer help and technical assistanceto the shipyards designing and buildingVLCCs in the selection of the most suitablepropulsion unit for any given large tankerproject, taking into account fuel economyanalyses based on the vessel’s operationalprofile.

Engine choiceThe company markets its engine types to boththe shipyards and the shipowners, MDTexplained. For VLCCs, the traditional engineof choice has been the S90ME and S80MEtypes. However, more recently, the G80MEtypes have become the dominant engineselected. Thus far, some 22 G80MEs have been

ordered for VLCCs, while four 7G80ME-C92shave entered service, the company explained.The engines tended to range between 26,000-30,000 kW in power, depending on therequired top speed and the vessel’s generaloperational pattern. As for slow steaming, MDT confirmed that

owners are today very focussed on total fuel

economy taking intoaccount the vessel’soperational profile bothfor scantling, design andballast drafts; givingrunning hours andengine loads for thedrafts divided over a 12-month period. The bottom line fuel

economy is of highpriority for all owners intoday’s competitivemarket – so they ask forfuel optimisedpropulsion systemsfocusing on the expectedoperational profile.MDT is able to offer itsexpertise in assisting intheseanalyses/evaluations, thecompany explained.The auxiliaries

stipulated are normally4-stroke gensets and insome cases waste heatrecovery generatorsystems (WHR) are alsoselected. This machineryis offered by some ofMDT’s licensees as apackage with the mainengine. However, inmost cases, the mainengine, gensets and WHR systemsare purchased by the shipyard asindividual items. Some owners have stipulated that WHR

systems be installed in order to save fuel andto lower the tanker’s EEDI. The largershipyards now have the technologicalknowhow necessary to install such equipmenton board ship, MDT said. Since purchasing the Kappel propeller

concern a couple of years ago, MDT can nowoffer propellers of the largest diameter and in3, 4, 5 and 6-bladed designs. Normally, theshipyard will purchase the propeller separately

and not as part of a propulsion package.Finally, MDT stressed that together with a

large tanker’s hull and propeller design, themain engine constitutes a prime part ofpropulsion power optimisation, which willhave a significant effect on the vessel’s totalfuel economy. By taking these criteria into consideration,

plus MDT’s latest engines and propeller types,the vessel’s fuel economy and emissions canbe improved significantly, the companyclaimed.

How to make yourVLCC efficient

Following Tanker Operator’s article on MAN Diesel & Turbo’s (MDT) propulsionsystems for MRs (see March issue, page 34), we look at VLCCs.

Cross section of the G80ME-C 2-stroke engine.

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TECHNOlOGy - EFFiCiENCy


Taking ship design and modificationwhile in service, Univan said thatthe propeller design could lead toenergy savings of around 2.5% and

the installation of boss cap fins could improvethe propeller’s efficiency by between 3-5%.Becker Marine Mewis Ducts can reduce lossesby the same amount even at slower shipspeeds. Regular propeller polishing reduces

resistance. A clean propeller leads to about 3-4% power saving compared to a fouledpropeller, the shipmanagement company said.Also hull fouling will have a significantimpact on the vessel’s performance and fuelconsumption, while new developments withhull coatings have proved to reduce drag andsave fuel by up to 7%. Each fuel has different combustion

properties and engine tuning optimises thecombustion and energy saving by adjusting thecalorific value and sulphur content of the fuel.Univan said that this can be more preciselymanaged with electronically-controlledengines, which will enable them to operatewith higher fuel efficiency at lower loads. Integrated electronic monitoring systems to

collect and collate data, plus trim optimisation,are other methods used by the company. Other methods to save energy include

closing doors when the air conditioning is inuse and switching off unnecessary lights in theaccommodation. Cabin refrigerators can alsobe switched off when not being used andgalley provision rooms can be opened lessfrequently, thus saving energy. At the IPTA/Navigate Chemical/Product

Tanker conference Ardmore Shipping’s COOMark Cameron gave his opinion on thequestion of tanker efficiency.Cameron said that the ability to accurately

measure down to 1% is essential and for thisreason, the company uses a SkySailsperformance management system, which givesfeedback in real time and is able to remove allof the variable components. The system will empower the crew on the

bridge and engine room to measure very smallchanges in the vessel’s performance.Automated, electronic reporting eases theadministrative burden. More strenuousreporting requirements will need greatertransparency, he warned.

performance criticalHe said that ‘Eco Mod’ vessels were notdefined by age but by performance. He citedthe case of the 2004-built secondhand MRArdmore Seamaster which at 13.5 knots iswarranted at 22 tonnes of bunkers per day,compared with a 2008-built MR offered to thecompany, which at the same speed was said toconsume 29.5 tonnes per day.

It is important to say to the shipbuildersthat all assumptions should be stated on ascantling draft and not at the design draft, hesaid. The sales teams are geared for acompany’s operations people and mostparameters are quoted at the design draft. Clearly, friction reduction is the area of

focus, as this has the biggest impact on lowspeed vessels. There have been someimprovements in tankers’ block coefficients,however, the shipyards were not keen torelease the information and the bow design‘norms’ should be challenged. Propeller choice is essential for a good

performance, so keep it clean, he stressed.Ardmore uses Mewis Ducts and otherenhancements. Cameron said that the companypasses information gained from using theMewis Duct back to Becker Marine. Engine optimisation options need to be

specified up front, as there are arguments both

for and against de-rating an engine. He warnedthat once de-rated, it was very difficult to pickup an engine’s speed again. Turbochargerselection also impacts on load optimisation. Cameron then outlined how to calculate the

returns. For example, when negotiating atimecharter contract, the rate can be agreed onrealistic fuel consumption. Value versus risksin transparency should be taken into accountand there should be performance basedincentives on offer. Once this has been takeninto account, repeat business and attractivecharter extensions should be the result. On the spot market, the full financial return

on all of the strategic decisions should be seenand for joining pools, points will be based onactual performances. He also said that a vessel’s speed plays a large

part in calculating any return on investment andthe viability of the technical advances installedon the vessel. The worse speed and consumptionratios occur in adverse weather conditions and itwas important not to lose sight of this point.Summarising, he said that ‘eco’ ships need

not only be classified as newbuildings, as withcare and attention, a five year old vessel can beimproved close to ‘best in class’ standards,providing you start with the right ingredients. Measure accurately to cut through the ‘hype’

as marketing attractive numbers is not the sameas warranting those numbers. Cost/benefitcalculations need careful analysis, as a 1%saving maybe attractive but hard to measure andbeware of the de-rating trap. It is the right people with the right attitude on

board the vessel that make all the difference, heconcluded.

‘Eco’ thinking comesto the fore

Univan Ship Management has outlined what the company calls ‘Eco Thinking’ in itslatest newsletter by offering advice on a number of areas where energy

conservation can be achieved.

‘Ardmore Seamaster’ enhancementsPropeller diameterMain engine rev/minPropeller enhancementsHull paint systemEngine performanceVoyage performance management

7.5% bigger13% slowerPBCF fittedHigh performanceEngine assessment software installedInstalled

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TECHNOlOGy - BUNkErS

The research found that in allscenarios, heavy fuel oil willremain the main fuel for deepseashipping; LNG will develop a

deepsea bunker market share of 11%; lowsulphur heavy fuel oil and hydrogen emerge asalternatives in certain scenarios.Tanker Operator has taken extracts from the

report and from the discussion at its launch inLondon last month. The study showed that the combination of

growth in trade and reduced emissions wouldrequire a reduction in fossil fuel dependencyand the commencement of a transition to azero carbon fuel, such as hydrogen.Global Marine Fuel Trends 2030 provides

an insight into future fuel demand for thecontainership, bulk carrier/general cargo andtanker sectors - representing around 70% ofthe global shipping industry’s fuel demands.If world trade grows then so will seaborne

tonne/miles of cargo. The report indicated thatwe can expect strong growth in shipping. Withemissions regulations and rising energy costs,shipping decision makers will benefit from aclearer understanding of the potentialscenarios for marine fuel demand, LR saidwhen introducing the report.The three scenarios are:Status Quo – The world will continue its

current growth momentum with some boomsand busts over the next 20 years.Global Commons – A shift to concern over

resource limitation and environmentaldegradation will see a desire for a moresustainable world being developed andfairness in wealth distribution. Governmentswill find common ground and acceleratedeconomic growth, within a framework ofsustainable development, which will follow.Competing Nations – States act in their

own national interest. There will be little effortto forge agreement among governments forsustainable development and internationalnorms. This is a self-interest and zero-sumworld with a likely rise in protectionism andslower economic growth.So what does the marine fuel mix look like

for the three types of vessels by 2030? In two

words - decreasingly conventional. Heavy fueloil (HFO) will still be very much around in2030, but in different proportions for eachscenario: 47% in Status Quo, to a higher 66%in Competing Nations and a 58% share inGlobal Commons, the most optimistic ofscenarios for society. Naturally, a high share of HFO means a

significant uptake of emissions abatementtechnology when global emissions regulationsenter into force.The declining share of HFO will be offset

by low sulphur alternatives (MDO/MGO, orLSHFO) and by LNG. This will occurdifferently for each ship type and scenario. For example, LNG will reach a maximum

11% share by 2030 in Status Quo.Interestingly, there is also the entry ofHydrogen as an emerging shipping fuel in the2030 Global Commons scenario, whichfavours the uptake of low carbon technologiesstimulated by a significant carbon price.By 2025, it is forecast that 653 deepsea

vessels will be using gas as a source of fueland further in the future, ethane could possiblybe used on some large vessels. In theintegration of technology, it is not so easy tocommercially optimise solutions and methodsto overcome this are currently being workedon.

Competence problemsOne of the challenges is the lack ofcompetence at the terminal, the receivingvessel and with the bunkering in general.Where is the competency going to come from-training? There is already a huge need fortraining with 138 LNGCs on order and moreto come. This training is needed to ensure asafety regime for gas bunkering, LR warned. Bunkering is a challenge on its own, LR

said. If the shipping industry grows asforecasts predict, there will be a need for twiceas much fuel by 2030. However, there couldbe a gradual decline in fuel demand from 2025due to greater shipboard efficiency. More HFO will be needed in 2030,

compared with 2010 in all of the threescenarios, LR said. Emissions will grow-

doubling in less than 20 years. The world’spolicy on climate change will be the greatestdriver in future fuels, vessel efficiency, etc. Tom Boardley, LR’s marine director said

that the class society is already discussing thefuture with its clients. In an introduction to thereport, he said; “The marine industry isundergoing a transformation. As well asmanaging today’s rising operational costs andachieving cost effective environmentalcompliance, ship operators are faced withtomorrow’s ‘big decisions’. Decisions aboutfuels, technology and whether it is possible to‘future-proof’ their fleet and assets.“In addition to providing technical

solutions, we are trying to provide the besttechnical advice to support commercialdecision making. It is never just about what istechnical possible – decisions have to makecommercial sense. The future fuel ‘bigdecisions’ are not isolated to the marineindustry. As a society, we need to consider therisks we want to manage and how to balancefuture demand for sustainability with ourlifestyle ambitions. “In shipping today, the alternative fuels

debate has been dominated by the potential ofLNG. But will there be other, potentiallyviable, options? If we extrapolate the pastexperience (single engine combusting fossilfuel for the last century) to the future, thenperhaps it is not a surprise to anticipate thatships built in 2030 may not be dramaticallydifferent than the ships of today. “If, however, this steady technological

progress was to be, somehow, accelerated, oroverturned, then some amazing technologycould be around the corner. How long will ittake for a new technology/fuel to beassimilated and to become ‘business as usual’,or even to replace the current mainstreamoptions?“The answers are not immediately evident

and, as we demonstrated in Global MarineTrends 2030, there is never a single and welldefined future. The marine industry has beforedemonstrated the ability to make the rightdecisions in times of uncertainty – through acombination of past experience, intuition and

‘Global marine fueltrends to 2030’

In a report compiled by Lloyd’s Register (LR) and University College London’s EnergyInstitute, three scenarios for the future of marine fuels in 2030 were highlighted.



talent. “What is perhaps different today are the

rapidly changing environmental challenges,new regulatory policies and thefuel/technology choices available to addressthe challenge and comply with regulation,” hesaid.The report’s main objective was to unravel

the landscape of fuels used by commercialshipping over the next 16 years, the authorssaid.The problem has many dimensions: a fuel

needs to be available, cost-effective,compatible with existing and futuretechnology and compliant with current andfuture environmental requirements. Included are fuels ranging from liquid fuels

used today (HFO, MDO/MGO) to their bio-alternatives (bio-diesel, straight vegetable oil)and from LNG and biogas to methanol andhydrogen (derived both from Methane, orwood biomass). Engine technology includes 2-or 4- stroke diesels, diesel-electric, gas enginesand fuel cells.A wide range of energy efficiency

technologies and abatement solutions

(including sulphur scrubbers and selectivecatalytic reduction for NOx emissionsabatement) compatible with the four ship typesare included in the modelling. The uptake ofthese technologies influences the uptake ofdifferent fuels.Regulations include current and future

emission control areas (ECAs), energyefficiency requirements (EEDI) and carbonpolicies (carbon tax). Oil, gas and hydrogenfuel prices are also linked to the threescenarios.Contrary to common perception,

containerships are not the segment with thehighest share of LNG - it is thechemical/product tankers, with LNG makingup 31% of its fuel mix by 2030 in Status Quo. Segments with the higher proportion of

small ships see the highest LNG uptake. It isalso a matter of perspective: from a non-existent share of the marine market in 2010,LNG will have 5-10% share in 20 years. The authors are not saying that LNG will

not be the fuel of the future. But that seeingnew ships built with LNG today (many ofwhich in niche markets/short-sea shipping)

and overturning the marine fuel landscape inless than a ship’s lifetime are two entirelydifferent discussions. Methanol does notappear in the fuel mix in any considerablequantities by 2030. While the fuel mix indicates a declining

share of HFO, filled by alternative options, in2030 the demand for HFO will be at least thesame (in Status Quo) if not 23% higher (inGlobal Commons) compared to its 2010levels. But, with the overall fuel demanddoubling by 2030, other fuels will see a higherrate of growth to meet this demand.The fuel choice and scenarios are shown to

create differences in energy efficiencytechnology take-up, design and operatingspeed.Low technology take-up occurs in Status

Quo and Competing Nations, althoughinstalled power reduces, due to reductions indesign speed. Greater installed powerreduction occurs in Global Commons, due tothe combination of design speed reductionsand greater efficiency technology take-up.Typically, the installed power in Global

Commons is operated at higher engine loads,

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resulting in marginally higher averageoperating speeds when compared with theother scenarios. This is due to the greatertechnical efficiency of the Global Commonsfleet. As the most profitable fuel and machinery

change over time and between scenarios, thisin turn impacts the optimum operating speed,with higher fuel prices and less energyefficient (eg older) ships operating at lowerspeeds when compared with the newer shipsof the same ship type and size. Despite improvements in design and

operational efficiency and current/futurepolicies, CO2 emissions from shipping will notdecrease in 2030. Status Quo will see itsemissions doubling, due to the increase intrade volume combined with the moderatecarbon policy and the low uptake of lowcarbon fuels. Global Commons is following asimilar trend but then decreasing post 2025,thanks to carbon policy and the uptake ofHydrogen. Competing nations will see thesmallest growth in emissions.Despite the lack of carbon policy, the

smaller trade volume, high energy prices and,predominantly, the high uptake of bio-energy,result in the lowest increase of CO2 emissionsthan any other scenario (56%).The lower emissions associated with this

scenario seem attractive but come at the costof lower growth in the shipping industry,higher operating costs and less global trade.Furthermore, in 2030, in Competing Nationsand Status Quo, emissions remain on anupwards trajectory and the global fleet remainssimilar to the fleet in 2010 with the industrypoorly positioned to weather any policy ormacroeconomic storms in the period 2030-2050.

In contrast, in Global Commons thesector’s emissions peak (in 2025) and thenstart a downwards trajectory that should assistin a more stable and sustainable long-termgrowth in shipping, trade growth and globaleconomic development.When discussing future policies and

shipping CO2 emissions, it is worthconsidering the author’s assumptions forcalculating them, which is that GHGemissions come from the CO2 released in fuelcombustion activities of the vessels duringtheir operation. However, if LNG, bio-fuelsand hydrogen take a greater role in theshipping, it would be important to consideremissions associated with upstream processesand for non-CO2 emissions, for examplemethane slip.This could show that fuels which, on the

basis of operational emissions alone, appear

attractive have significant wider impacts. Thisis important when developing mitigationpolicies.The authors use the Global Transport Model

(GloTraM) to analyse the role and demand fordifferent fuels and technologies. GloTraMcombines multi-disciplinary analysis andmodelling techniques to estimate foreseeablefutures of the shipping industry. The modelstarts with a definition of the global shippingsystem in a baseline year (2010) and thenevolves the fleet and its activity in response toexternal drivers (changing fuel prices,transport demand, regulation and technologyavailability).GloTraM undertakes an in-depth analysis of

the existing fleet, along with the economics oftechnology investment and operation in theshipping industry. This approach ensures thatthe model closely resembles the behaviour ofthe stakeholders within the shipping industryand their decision-making processes to ensurerealistic simulation of their likely response toexternal factors such as a carbon price. The decision-making process to determine

technical and operational specifications ofnewbuild and existing ships are driven by theshipowner’s profit maximisation andregulatory compliance.

interactionAn important feature of GloTraM is itsrepresentation of the interaction betweentechnical and operational specifications andthe inclusion of technology additionality andcompatibility. For example, some technologiesare optimised for a given ‘design speed’ buttheir savings may reduce as operating speedreduces, or increases, or that there could beincompatibilities between certain exhausttreatment solutions (wet scrubbers) and engineefficiency modifications (waste heat recovery). Other examples include the interaction

between speed and wind assistance fuelsavings (higher percentage of fuel saved forlower average speeds), or the incompatibilityof certain combinations of hydrodynamicdevices that might be used to improve the flowthrough the propeller and over the controlsurfaces. These interactions are often overlooked

using conventional marginal abatement costcurve based approaches but are taken intoaccount within GloTraM.Another important element of GloTraM is

the attention paid to characterising the fleet’soperational parameters in the baseline year. In2010, a large number of ships were slowsteaming due to the conditions in the shippingmarkets. This affects both energy demands and

the energy and cost savings potentials oftechnology.Satellite AIS data is used to produce

calibrations of the operational speeds in each shiptype and size category for the baseline year andoperational speed is modified at each timestep asa function of the evolving market conditions andfuel prices, the authors explained. Drawing theline between conventional and alternative marinefuels is often a matter of interpretation andviewpoint. What is considered alternative todaymay be conventional in the near future.For consistency, in this report the conventional

marine fossil fuels are represented by onecategory of marine distillates (MDO/MGO) andtwo categories of residual fuel of differentsulphur contents (HFO and LSHFO). Thealternative fuels considered include LNG,methanol, hydrogen and biomass-derivedproducts equivalent, or substitutes for the optionsmentioned.Each of the main machinery and fuel

combinations are selected by GloTraM byconsidering their profitability over time. Theseplots are displayed for a baseline ship design (thetechnical and operational specification of the2010 fleet) and therefore these results are onlyintended to be indicative of the relativeadvantages of the fuel/machinery optionsmodelled. There are other differences, as for each time-

step the ship’s technology and operationalspecification is also varied. Therefore, the globalprofit maximisation for all three parameters(fuel/machinery choice, speed and take-up oftechnical and operational abatement and energyefficiency interventions) can result in a differentfuel/machinery being selected than those for thebaseline ship.In these plots, the report displays the

competitiveness of four fuel/machinerycombinations in Status Quo for chemical/producttankers of two different sizes, to illustrate theevolution of profitability over time.In the examples provided overleaf, it can be

seen that for the smallest ship, MDO/MGO and4-stroke diesel is initially more competitive butthis is overtaken by LNG while the hydrogen-fuel cell combination competitiveness alsoincreases.On the larger ship, the conventional HFO and

2-stroke diesel combination remains the mostprofitable, with LNG overtaking MDO/MGO asthe second most profitable option.The profitability changes over time because

of the fuel price and carbon price evolution.There are also interesting differences betweendifferent ship sizes, due to the different enginesizes (and costs) and the impact of fuel storagevolume (eg hydrogen) on the ship’s payload. TO



Global Marine Fuel Trends 203022

In examining the uptake of future fuels and associated machinery, we must not ignore the impact of current and future energy efficiency technologies. Step changes such as switching from heavy fuel oil to LNG will be influenced by the uptake of technologies which improve the efficiency of conventional fuel and machinery combinations. In simple terms, “big changes” are enabled when the industry runs out of options. When and how this happens depends on what these options are and how cost-effective they will be.

In the context of this study, the technologies detailed opposite were considered.

Cost and efficiency data for each technology originate from the work undertaken in the Low Carbon Shipping project. The same source contains background information on each technology.

Superstructure streamlining

Wing pods

Pulling pods

Contra-rotating props

Vane Wheel

Prop section optimisation

Ducted Propeller

Pre-swirl duct

Propeller upgrade

Propeller boss cap fin

Asymmettric Rudder

Propeller rudder bulb

Waterline extension

Hull coating 1 (biocidal)

Hull coating 2 (foul release)

Hull cleaning

Propeller polishing

Wind engine

Wind kite

Low profile openings

Optimisation of water flow of openings

Covering hull openings

Speed control pumps and fans

Energy saving lighting

Efficient Boiler

Autopilot upgrade/adjustment

Trim and ballast optimisation

Optimisation of dimensions (fast)

Prop Hull optimisation

Skeg optimisation

Improved Rudder

Stator fins

Solar Power (Hotel dry and wetbulk)

Solar Power (Hotel container)

Optimisation of dimensions (slow)

Air lubrication (air curtain with PTO)

Air lubrication (cavity with PTO)

Sails

Shore power / cold ironing

Main Engine Tuning Phase 1

Main Engine Tuning Phase 2

Energy efficiency technology Fig. 9 Energy efficient technologies considered in this study Source: LR / UCL

Containers Bulk Carriers Tankers

Energy efficient technologies considered in this study

Source - lr / UCl

Lloyds Register Marine lr.org/marine | University College London ucl.ac.ukLloyds Register Marine lr.org/marine | University College London ucl.ac.uk/energy 29

Each of the main machinery and fuel combinations are selected by GloTraM by considering their profitability over time. These plots are displayed for a baseline ship design (the technical and operational specification of the 2010 fleet), and therefore these results are only intended to be indicative of the relative advantages of the fuel/machinery options modelled. There are other differences, as for each time-step the ship’s technology and operational specification is also varied. Therefore the global profit maximisation for all three parameters (fuel/machinery choice, speed and take-up of technical and operational abatement and energy efficiency interventions) can result in a different fuel/machinery being selected than those for the baseline ship.

In these plots we display the competitiveness of 4 fuel/machinery combinations in Status Quo for chemical/product tankers of two different sizes, to illustrate the evolution of profitability over time. The same logic is applied by GloTraM for all ship types/sizes and machinery options and determines, in part, the take-up of the optimum combination for new buildings.

In the examples provided, we see that for the smallest ship, MDO/MGO and 4-stroke diesel is initially more competitive but this is overtaken by LNG while the hydrogen-fuel cell combination competitiveness also increases.

On the larger ship, the conventional HFO and 2-stroke diesel combination remains the most profitable, with LNG overtaking MDO/MGO as the second most profitable option.

The profitability changes over time because of the fuel price and carbon price evolution. There are also interesting differences between different ship sizes due to the different engine sizes (and costs) and the impact of fuel storage volume (e.g. hydrogen) on the ship’s payload capacity and therefore revenue.

Competitiveness of machinery-fuel combinations

Fig. 12 Change in competitiveness of different fuel/machinery combinations between two ship sizes and with time (Status Quo scenario) Source: LR / UCL

Competitiveness of fuel/machinery combinations for Chemical/product tanker <5k DWT Competitiveness of fuel/machinery combinations for Chemical/product tanker >60k DWT

HFO and 2-stroke diesel LNG and pure gas/dual fuel engine MDO/MGO and 4-stroke diesel Hydrogen and fuel cell

2015 20152020 20202025 20252030 2030

Competitiveness change of different fuel/machinery combinations between two tanker size ranges











2015 20152020 20202025 20252030 2030











2015 20152020 20202025 20252030 2030

Source - lr / UCl



The quality of the product suppliedhas a significant impact on theowner or operator and also, moreimportantly, on the running of the

vessel. Regular analysis of marine fuel is an essentialrequirement to ensure the suitability of theproduct supplied and to limit expensiveheadaches in the form of engine breakdownand unnecessary wear damage. But examining fuel in accordance with the

ISO 8217 Marine Fuel Standard isn’t simply ameans to look for a potentially hidden horror.It gives owners and operators a clearindication of the quality of the productsupplied and provides essential information inrelation to any specific handling, or treatment,which may be required before it can be used.

In the majority of cases, issues highlightedduring the analysis process are minor and donot render the fuel unsuitable for use.However, it is frequently argued that the fuelhas still been shown to fail the criteria for aparticular product or grade and so is deemed‘Off Specification’. But when is an ‘off-spec’fuel really ‘off-spec’?There is an awful lot more to consider than

simply looking at a defined test limit. Whentesting in accordance with the ISO 8217standard, each individual parameter has aspecified acceptable maximum, or minimumlimit. On the face of it, any tested value that is

above or below the quoted limit would then bestated as ‘off spec’ for that particular fuelgrade. In reality, this is simply not the case.

Any fuel that is purchased in accordance withthe ISO 8217 fuel standard is subject to arange of additional conditions extendingbeyond the test limits imposed. One suchcondition is the precision and interpretation oftest results. When we think about off-specdata, the precision and interpretation section ofISO 8217 points to ISO 4259 for clarification.So it is essential that owners and operatorsconsider the requirements of ISO 4259 whenlooking at a potentially off-spec fuel.ISO 4259 states, ‘A recipient who has no

other information on the true value of acharacteristic other than a single test result canconsider that the product fails the specificationlimit, with 95% confidence, only if the testresult is such that - (a) in the case of a max spec limit, the test

Off spec! Or is it?In the current financial climate, rising fuel costs are a significant challenge for

shipowners and operators. However, the cost of fuel isn’t the only cause for concern.

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result is greater than the specification limit plus 0.59 x R; or (b)in the case of a min spec limit, the test result is less than the specification limit minus 0.59 x R.’

record highTest data accumulated by Intertek LintecShipCare Services during the fourth quarter oflast year showed a record high of around 27%of all submitted samples failed to meet therequirements for one or more testedparameters, based on the limits specifiedwithin ISO 8217. On the face of it, this would appear to be a

damning statistic, but is it really as bad as firstappears? It is important to note that this figurelooks at the limits stated within the ISOstandard but does not factor in therequirements for ISO 4259. So how does thisvalue change when we take ISO 4259 intoconsideration?If we consider the same data set and apply

the requirements laid out within ISO 4259, wesee that 9.6% of all submitted samples showeda tested value outside the 95% confidence

interval. On this basis we are able to state thatabout 10% of all submitted samples can bedeemed off-spec based on the supply of asingle test result.When we examine this in greater detail and

look at the difference in products (residual anddistillate), it is clear that there is a sizeablechange once the ISO 4259 requirements areapplied.The fact that the application of ISO 4259

has such a profound effect on the figures forresidual fuel clearly shows that it is the mainproduct type currently used by vessels theworld over. It also highlights the fact thatresidual fuel is currently under greater scrutinyas far as legislative control is concerned.These figures go a long way to highlighting

how the blending of high-sulphur fuel toachieve a low-sulphur product is one of thekey contributors to the increased incidence ofoff-spec fuels. As the main debate about off-spec fuels and

the application of ISO 4259 centres aroundhigh and low-sulphur product and the issue ofcompliance, it is even more important that theimplications of an off-spec result and a real

off-spec result are fully appreciated.

*This article was written by Michael Green ofIntertek Lintec ShipCare Services.

intertek’s Michael Green.

TO



iPIECA’s Eddy van Bouwel explainedhow the world’s energy mix is changing,which will require huge investments innew energy infrastructure. At the same

time, the global transportation fuel mix is alsochanging with diesel fuel demand increasingand gasoline demand decreasing in OECDcountries. Also increasing is the use of naturalgas, ethanol and biodiesel as fuels. Sufficient lead time is needed for the necessary

investments by the refining, fuel supply andshipping industries. Switching marine fuels todistillates will increase the total supply chain CO2emissions. He said that there was no singlesolution and that we needed to keep all optionsopen to compliance. He thought that demand for middle

distillates/diesel from 2015 onward would be 30mill tonnes per year, due to the need to transit theECAs. However, exhaust gas cleaning and the useof LNG could impact on these estimates.Following the worldwide 0.5% sulphur cap, thedemand for diesel will continue to grow. Some50-75% of the residual market will have to be metby middle distillates and spare capacity will beneeded to meet this extra demand, he warned.There will no doubt be a big drop in demand forresidual fuel oils. There will also be major investments needed in

refineries and the IMO needs to fast track itsfuture fuels study to publish the findings by 2018to give the various stakeholders time to act. IBIA board member and Marine & Energy

Consulting’s Robin Meech said that themandation of EEDI will see an increase inefficient ships, as the newbuildings come up tospeed with the legislation and older units arescrapped. This will suppress demand for fuel oilsas the vessels become more efficient. He thought that the overall global fleet

efficiency will have improved 12% by 2025; 14%by 2030 and 17% by 2035. This will negate thedemand for bunkers by over 5% per year, he said. Once the 0.5% sulphur cap enters into force,

there would likely be a slowdown in the numberof ECA areas declared. By 2025, the globalconsumption of HFO and distillates will havepeaked He forecast that by 2025, we would see

around 9 mill tonnes of LNG used as fuel; 1,500scrubbers installed costing in the region of $4 billand around 2,000 LNG powered vessels,excluding gas carriers. It will also prove to be more complicated

to buy bunkers going forward, as the pricesfor the different solutions become morevolatile. He gave the rather worrying forecastthat up to 50% of owners and operators couldtake a chance with higher spec fuels post2015, due to possible low levels ofenforcement. At present there are the regulatory

unknowns, such as the timetable for thedevelopment of future legislation, forexample on SOx and NOx emissions. Heasked - will new ECAs be declared, or willthe global 0.5% sulphur cap impact on theirviability? What rate will distillates be madeavailable in the future? What of in portlegislation, especially in the US? Will therebe incentives to use cold ironing?As for scrubber technology, there was still

the question of changing regulations, such asthe requirements for monitoring equipment.For the greenhouse gas cap what is theschedule and the method of control? Whenwill the regulations for using LNG asbunkers come into play and what of theenforcement regime and penalties? We have seen a few orders for tankers

powered by engines using methanol as a fuelrecently. Ulf Freudendahl, a director ofScandiNAOS, explained that this fuel is aliquid, which does not require cryogenic orpressure tanks for storage and can be storedin similar tanks to that of oil products. It is a clean low flash point fuel, which

fulfils all the upcoming requirements, heclaimed. Rules and regulations already existto a large extent and are under furtherdevelopment, some of which are similar tothe use of LNG. For bunkering, the barges supplying

methanol will be small chemical carriersrather than gas carriers for the LNG.Conversion kits for 4-stroke diesel engines todual fuel HFO/MGO-methanol already exist.

The HFO/MGO is used as a pilot fuel (5-10%).In addition, 2-stroke methanol fuelled engines alsoexist today, he said.

Low sulphur debaterages on

At the recent IPTA/Navigate Chemical/Product Tanker conference, there were severalpapers given on the theme of future fuels ahead of the 0.1% sulphur ECA challenge in 2015

and the 0.5% global cap due to be introduced in 2020, or 2025.

TO

TECHNOlOGy - iCE ClASS TANkErS


Gone are the days where ice classAframaxes could command up to$100,000 per day to load atPrimorsk during a severe winter

– at least for now. The orderbook has also shrunk considerably fortankers of 25,000 dwt and over with just 16,according to figures produced for TankerOperator by Gibson Research. These are all Hyundai Mipo type 37,000 dwt

Handysize product tankers. There are 14 forScorpio and the other two were contracted for

Ardmore. They were all ordered last year. Investment in this sector has been low (even

zero) because of the high newbuilding cost, poorice seasons and by virtue of being disadvantagedoutside of the ice season, due to higher operatingcosts and fuel consumption, Gibson said.Examining the current operational fleet, of the

502 vessels of 25,000 dwt and over, there are 49Suezmaxes, 62 dirty Aframaxes, 17 LR2s, 11dirty Panamaxes, 44 LR1s, 146 MRs and 173Handysize tankers. By far the largest number (312) is in the six to

12 year old age bracket, which could also explainthe lack of ordering in this specialist sector. Alsoby far the largest number (225) has a 1A classnotation, compared to 131 with a 1B notation.Of course, there is also a large fleet of products

and chemical tankers of under 25,000 dwt, whichtrade in the Baltic and in the Far East. This is not to say that the momentum has

switched away form this sector. Far from it as weawait the IMO’s Polar Code and look at the everincreasing number of vessels transiting theNorthern Sea Route (NSR).

!!!!!!!!!!

Few new orders in ayoung fleet

The mild weather in northern Europe has not helped the larger ice class tankers obtain apremium in rates for trading into the Baltic this winter.

Source - EA Gibson

TO



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established maritime

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Source - EA Gibson



Thus, the IMO is follows the planfor finalising the Polar Code,which is being developed toenhance safety of navigation in

polar regions, the Danish Maritime Authoritysaid.At the first session of the Sub-Committee on

Human Element, Training and Watchkeeping(HTW), the IMO took important steps towardsfinalising the Polar Code. As a result, draft specific training

requirements for seafarers on board shipsnavigating polar areas are available. Therequirements will be incorporated in the PolarCode.The new requirements mean that Masters

and navigating officers must have specialtraining in order to navigate ships in ice, whileengineer officers and the rest of the crew mustbe trained in how to react in crisis situations,such as rescue operations. In addition, morecomprehensive training requirements will beintroduced for all seafarers on board tankersengaged on voyages in icy waters.IMO is developing a draft mandatory

International Code of safety for shipsoperating in polar waters (Polar Code), tocover the full range of design, construction,equipment, operational, training, search andrescue and environmental protection matters. The work is being co-ordinated by the sub-

committee on Ship Design and Construction(SDC) - formerly the Sub-Committee onShip Design and Equipment (DE).

At its first session (20th to 24th January2014), the SDC sub-committee agreed inprinciple to the draft text of the mandatoryPolar Code and also agreed in principle toproposed draft amendments to IMO’s safetyand pollution prevention treaties to make itmandatory.

A draft new chapter XIV ‘Safety measuresfor ships operating in polar waters’, ofSOLAS, to make the Code (Introduction andpart I-A) mandatory was agreed in principle,for forwarding to the Maritime SafetyCommittee (MSC), which meets in May, forconsideration.

Also, proposed draft amendments toMARPOL, to make the Polar Code(Introduction and part II-A) mandatory underAnnexes I (prevention of pollution by oil), II(noxious liquid substances), IV (sewage) andV (garbage) were also agreed, in principle, forforwarding to the MEPC, which was due tomeet at the end of March/beginning of April.

The draft chapter of the Polar Code relatingto training and manning was referred to thesub-committee on Human Element Trainingand Watchkeeping (HTW), while the draftchapters on fire protection/safety and life-saving appliances was referred to the sub-committee on Ship Systems and Equipment(SSE), which also met in March. The draft chapters on Safety of navigation

and Communication will be referred to thesub-committee on Navigation, Communicationand Search and Rescue (NCSR) in June/July. All three Sub-Committees will report on

their work to the MSC and MEPC.

CertificationOnce ratified, the Code will require shipsintending to operating in Antarctic and Arcticto apply for a Polar Ship Certificate, whichwould classify the vessel as Category A ship- ships designed for operation in polar watersat least in medium first-year ice, which mayinclude old ice inclusions; Category B ship - aship not included in category A, designed foroperation in polar waters in at least thin first-

year ice, which may include old ice inclusions;or Category C ship - a ship designed tooperate in open water or in ice conditions lesssevere than those included in Categories A andB.

Before issuing a certificate, an assessmentwould be undertaken, taking into account theanticipated range of operating conditions andhazards the ship may encounter in the polarwaters. The assessment would includeinformation on identified operational limitations,and plans, or procedures, or additional safetyequipment necessary to mitigate incidents withpotential safety or environmental consequences.

Ships will also need to carry a Polar WaterOperational manual, to provide the owner,operator, Master and crew with sufficientinformation regarding the ship’s operationalcapabilities and limitations in order to supporttheir decision-making process.

The chapters in the Code each set out goalsand functional requirements, to include thosecovering ship structure; stability and subdivision;watertight and weathertight integrity; machineryinstallations; operational safety; firesafety/protection; life-saving appliances andarrangements; safety of navigation;communications; voyage planning; manning andtraining; prevention of oil pollution; preventionof pollution form from noxious liquid substancesfrom ships; prevention of pollution by sewagefrom ships; and prevention of pollution bydischarge of garbage from ships

Polar Code update-draws nearer

In February, the IMO agreed on training requirements for seafarers on board ships in Arctic regions.

TO

With the IMO now acceptingpressure sensor and alarmsystems as a means ofprotecting cargo tanks from

overpressure, installing such systems is notonly ideal for retrofit situations, but also themost cost-effective route to compliance. A complete end-to-end pressure

measurement system, delivered by PSM andits partner Tile Marine, is providing aneconomical solution for shipowners who needto comply with the new cargo tankoverpressure legislation, the companiesclaimed. In partnership with its UAE based

accredited sales and engineering partner TileMarine, PSM has already helped one vesselowner to conform with the regulations bysupplying a complete system of pressuresensors, displays and alarms. Together, the two organisations can provide

a fully integrated service from surveying and

system specification, through to installationand testing, PSM said. Tile Marine initially carried out a vessel

survey to understand the precise mechanicaland electrical installation requirements formonitoring cargo tank overpressure. Based onthe findings of the survey, UK-based PSM, hasdesigned and supplied the complete turnkeysystem to address the vessel’s specific needs. Once delivered from PSM, Tile Marine

installed the whole system in a UAE shipyardand then carried out commissioning andtesting to ensure smooth operation andminimum disruption for the owner. PSM’s ict 1000 pressure transmitters, whichare IACS UI SC 140 compliant, are fullyprotected against positive, or negativeoverloads and submersion. They are availablewith a choice of flanged, or threaded fittingsfor installation directly to the tank top orpiping into the venting system.The MTU display unit located in the cargo

control room provides a monitoring stationthat gives an indication of normal, or alarm,status for each tank, as well as the actualpressure.PSM said that it had drawn upon 30 years of

global marine experience todevelop the ict 1000 series ofpressure transmitters; its co-operation with Tile Marine nowprovides shipowners with a single,co-ordinated source for cargo tankoverpressure protection. Mark Jones PSM sales director,

said: “Through this partnershipwith Tile Marine, PSM is able todeliver an even greater, cost-effective, service to customers.Tanker owners throughout theUAE region can benefit from acomplete end-to-end system ofsurveying, system design,engineering, installation,commissioning and testing.”

About pSMEstablished for over thirty years,PSM Instrumentation is aspecialist in the design,manufacture and supply of

IMO accepts pressuresensors and alarm

systemsThe question of pressure alarms and sensors has now come to a head.

pSM’s ict 1000 pressure transmitter nowaccepted by the iMO.


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control systems for oily water separators, oilrecord book automation and bunker fuelmanagementTankWatch: Marine tank level monitoring

and supervision systems for ballast, cargo,service and bunker fuel oil tanksBulkSafe: Water ingress detection systems

and water level alarm systems to protect bulkcarriers in accordance with SOLASregulationsPSM products carry all required type

approvals from the main leading marinesocieties, in addition to many country specificapproval standards. PSM is approved to BSEN ISO 9001:2000. PSM has also launched the BilgeSafe flood

detection system, which identifies and alarmswater ingress in bilge, void and watertight

spaces. The system provides a robust flood

monitoring and alert package for commercialvessels and offshore installations.Delivered as a complete flood detection

package, each BilgeSafe system comprisesPSM’s BLS 2000 bilge level switch, alongwith a PSM TankWatch graphical display unitand software to provide a constant, clear statusof all spaces being monitored. Claimed to be simple to install and operate

with only one switch required per watertightspace, the system is scalable for multipledetection points. Switches can be easily tested without

external tooling or services required and, inaccordance with the SOLAS requirements, thesystem is configured to be failsafe. Any loss ofpower, or communications to any detector will

result in an immediate bilge alarm warning.The BilgeSafe switch is also fully

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monitoring and reporting, the TankWatchdisplay and alarm software can also interfaceto other shipboard monitoring systems, orremote annunciators. “Whether you need to comply with

regulation, or are simply installing flooddetection systems as good practice,” said MarkJones, PSM sales director, “we are pleased tooffer BilgeSafe as an approved, simple tooperate system that provides a vital marinesafety function in one complete solution.”

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BOOk/VidEO rEViEW

Among which is Bridge TeamManagement - Pilot Onboard!

KVH Media Group, formerly Walport, hasreleased this video as a training tool for anycrew on navigational watch.

This latest KVH TRAININGlink filmaddresses the four key elements of goodteamwork when the pilot is on board -communication, co-operation, monitoring andintervention.

The film is 16 minutes long so provides aconcise reminder to those involved in thisimportant role. It is produced in Englishlanguage with subtitles covering several keynationalities, including Tagalog, Chinese,Russian and Hindi, for cost-effective trainingacross a fleet.

All of KVH’s films are purchased outrightso there are no recurring subscription charges,the company pointed out.Adlard Coles Nautical, under the guise of

Reeds, has recently published two books -ShipStability, Powering and Resistance* and 21stCentury Ship Management**.Ship stability, Powering and Resistance

was written by Jonathan Ridley & ChristopherPatterson and covers essential topics, such asflotation and buoyancy, small angle, largeangle and longitudinal stability, water densityeffects, bilging, ship resistance, and advancedhydrostatics. Each chapter has a comprehensive list of

aims and objectives at the start of the topic,followed by a check-list at the end of the topicfor students to ensure that they have developedall the relevant skills before moving onto thenext topic area.The book features over 170 worked

examples with fully explained solutions,enabling students to work through theexamples to build up their knowledge anddevelop the necessary key skills. These range

in difficulty from very simple one-stepsolutions to SQA standard exam questions andabove and are predominantly based on ahypothetical ship. The student is supplied with extracts from a

typical data book for the ship, which replicatesthose found on actual ships, enabling thereader to develop and practise real-life skills.Jonathan Ridley is principal lecturer of

operations at Warsash Maritime Academy(WMA), Southampton Solent University, UK,while Christopher Patterson BSc is seniorlecturer of merchant vessel engineering andteaching and learning fellow also at WMA.Reeds 21st Century Ship Management by

Captain John W Dickie addresses the keyareas where shipmanagers must be bothknowledgeable and adaptable, including shiptypes, legislation, documentation, inspections,insurance, budgeting, emergency response andpersonal issues, such as teamwork, effectivecommunication and fatigue.Shipmanagement is in a constant state of

evolution, driven by the demands of theshipping industry, new legislationand advancements in technology. Over the past 30 years the emergence of

large multi-national shipmanagementcompanies has changed how business must beconducted and shrinking profit margins havechanged how these companies must operate tosurvive in a competitive industry.The focus is as much on the people who

manage ships as the theory and practice ofshipmanagement; people are the mostimportant asset of any organisation. As such, the book asks the reader to look at

how things are done and if there is a way toimprove. It is highly recommended forprofessionals in the marine industry to reviewwhere they are and where they want to be, thepublisher said.Captain John W Dickie is secretary general

of International Federation of Shipmasters’

Associations, course director for the Diplomain Ship Management (LMA) and Certificate inMaritime Safety Management (LMA). He is also managing director of Joint

Development Associates, a consultancycompany specialising in maritime educationand training.Passage Planning Guidelines -2nd

Edition*** was recently unveiled by theWitherby Published Group.This second edition has been completely re-

written, expanded and transformed with theemphasis on the appraisal and planning stagesof the voyage planning, the publishersexplained. The book contains a comprehensive section

on passage planning using ECDIS. It takes thenavigator through the appraisal and voyageplanning stage using an electronic chart. In addition, its expanded set of appendices

contain checklists for passage planning,parallel indexing, examples of passageplanning notes and a plan pro-forma. Fully illustrated, this second edition takes

the principals of Captain Salmon’s originaltext to deliver a new standard of guidelines forthe modern bridge team, the publishersclaimed.

*Reeds Vol 13, Ship Stability, Powering andResistance, by Jonathan Ridley & ChristopherPatterson, published by Adlard ColesNautical, February 2014, paperback - £50.ISBN 9781408176122.

**Reeds 21st Century Ship Management byCaptain John W Dickie, published by AdlardColes Nautical, 13th March 2014, paperback-£30. ISBN 9781472900685.

***Passage Planning Guidelines 2nd Edition,published by Witherby Publishing Group,January 2014, 86 pages, £25. ISBN9781856095839.

Management,planning and stability

addressedA number of books and videos have come into our possession of late.

TO

COMMERCIAL TANKEROPERATIONSincluding shipbroking, legal mattersand financing

IN DEPTH INFORMATIONon the latest newbuilds, sale andpurchase, freight rates andderivatives markets, using industryknown commentators

A STRONG FOCUSon shipbuilding and repair

subscribe online at www.tankeroperator.com

KEY PLAYERS IN THE TANKER INDUSTRY will be profiled giving their views on current legislation,recommendations and trends.These will include chief executives from all sectors of the industry from equipmentmanufacturers to the topshipowners

INFORMATION about meeting oil majorrequirements (TMSA / vetting)

DEVELOPMENTS in management/safety/ environmental best practice

NEW TECHNOLOGIES and commercial industrydevelopments

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