15.04.2014 Views

Download - Tanker Operator

Download - Tanker Operator

Download - Tanker Operator

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

TAKER<strong>Operator</strong><br />

JANUARY/FEBRUARY 2010<br />

www.tankeroperator.com<br />

Features:<br />

<br />

<br />

<br />

<br />

<br />

<br />

IMEC expands functions<br />

Bringing home the bacon<br />

Voyage planning software tool<br />

IRS sets its stall out<br />

Coatings become green<br />

Intelligent sensors aid gauging


Contents<br />

04<br />

08<br />

Markets<br />

Cautious optimism prevails<br />

News feature<br />

IMEC flexes its wings<br />

10<br />

13<br />

22<br />

28<br />

Profile<br />

Proper voyage planning essential<br />

Denmark Report<br />

Sympathetic regime helps owners<br />

‘Green Ship’ initiative takes off<br />

Live TV at sea<br />

Flag States<br />

IRS explains its position<br />

Barbados forms shipowners group<br />

Liberia’s record growth<br />

Chemical/product tankers<br />

Sector consolidation<br />

31<br />

Technology<br />

31 Profile<br />

Comprehensive software package<br />

33 Protective Coatings<br />

Environment top of the list<br />

Fuel savings guaranteed<br />

Coatings contracts won<br />

41 Tank Gauging<br />

Intelligent sensors<br />

New orders claimed<br />

NEW<br />

Lay-Up Module<br />

now available<br />

'Simplicity is the key to Success'<br />

Established in 1991, UK based Marine Software Ltd provide low cost, easy to use<br />

Ship Management Software Solutions tailored for the Worldwide Maritime Industry<br />

DNV TYPE APPROVED<br />

PLANNED<br />

MAINTENANCE<br />

MINIMAL TRAINING<br />

REQUIREMENT<br />

STOCK<br />

CONTROL<br />

SHIP / SHORE<br />

INTEGRATION<br />

PURCHASING<br />

NO ANNUAL<br />

LICENCE FEES<br />

OPTIONAL<br />

SUPPORT<br />

CONTRACTS<br />

AVAILABLE<br />

DATABASE<br />

SETUP SERVICES<br />

PROJECT<br />

MANAGEMENT<br />

Front cover photo<br />

Walking tall - the Danish Shipping Associations’<br />

Jan Fritz Hansen represents one of the largest<br />

tanker fleets outside Greece. Danish tanker owners<br />

have taken advantage of a sympathetic tax regime<br />

to bolster their fleets, while mergers and<br />

acquisitions have also played a part in fleet<br />

renewals recently.<br />

CONDITION MONITORING<br />

RCM VIBRATION ANALYSIS LINK<br />

SAFETY<br />

MANAGEMENT<br />

SYSTEM<br />

ISM DOCUMENT<br />

MANAGEMENT<br />

For further details please contact us on:<br />

Tel: +44 (0)1304 840009 Fax: +44 (0)1304 840075 Email: info@marinesoftware.co.uk<br />

www.marinesoftware.co.uk<br />

January/February 2010 TANKER<strong>Operator</strong> 01


COMMENT<br />

2010 - A make or break year for the tanker sector<br />

This year could be a momentous 12 months for the<br />

shipping industry.<br />

Not only have we got to deal with emissions, a possible increase in<br />

piracy, but also cope with the vagaries of the freight markets.<br />

As stated in the columns of this edition of TAKER<strong>Operator</strong> rates<br />

have returned to normality – whatever they are – but some pundits are<br />

warning of the huge deluge of new tonnage in all sectors of the tanker<br />

industry, due to be delivered this year.<br />

However, most serious commentators claim that the industry can<br />

handle this influx of tonnage, pointing to the scrapping levels of<br />

predominantly single hull vessels, due to the IMO phase out, which has<br />

kicked in this year. Most serious players in the market are cautiously<br />

optimistic that rate levels can hold up this year.<br />

Indeed, we have even recently seen early 1990s built VLCCs go to<br />

the beaches – shades of the 1980s? And mid -1980s built product,<br />

chemical tankers, Panamaxes, Aframaxes and Suezmaxes have<br />

regularly appeared on the demolition sales lists. But are the volumes<br />

enough, I hear you asking? That is a question, which can only be<br />

answered at the end of this year.<br />

Several major oil importing nations have already declared their<br />

coastlines a ‘no go area’ for single hull tankers, helping to reduce their<br />

number. Leading consultancy McQuilling estimated that there were<br />

3,280 tankers from MRs to VLCCs, excluding IMO II-III types, in<br />

service at the middle of December last year.<br />

Of these, some 245, or 7.5% were single hull. The VLCC sector had<br />

the largest percentage at 12.6% of the total trading fleet, whereas the<br />

influential Aframax sector saw single hull vessels trading reduced to<br />

just 3.4% of the total.<br />

Of course, the decision to recycle or to trade a single hull tanker,<br />

depends on several factors. Not least are the current freight levels and the<br />

prices per light deadweight tonne paid by the breakers. Where the vessel<br />

can trade is another question that needs to be factored in and has it<br />

received an exemption through the Condition Assessment Scheme (CAS)?<br />

By now, you would have thought that most tanker owners/operators<br />

would have decided on a course of action. However, there will be a few<br />

seeking that last opportunity to trade to an area not affected by the ban<br />

thus far. India was an option, but this country has since slammed the<br />

door shut as has others in the Far East and indeed, worldwide.<br />

Environmental concerns<br />

Nearly every owner and operator is caught up in the ‘green ship’ fever<br />

and with various industry bodies and associations looking at ways to<br />

TANKER<strong>Operator</strong><br />

Vol 9 No 3<br />

<strong>Tanker</strong> <strong>Operator</strong> Magazine<br />

Ltd<br />

213 Marsh Wall<br />

London E14 9FJ, UK<br />

www.tankeroperator.com<br />

PUBLISHER/EVENTS/<br />

SUBSCRIPTIONS<br />

Karl Jeffery<br />

Tel: +44 (0)20 7510 4935<br />

jeffery@thedigitalship.com<br />

EDITOR<br />

Ian Cochran<br />

Tel: +44 (0)20 7510 4933<br />

cochran@tankeroperator.com<br />

ADVERTISING SALES<br />

Melissa Skinner<br />

Only Media Ltd<br />

Tel: +44 (0)20 8950 3323<br />

mskinner@tankeroperator.com<br />

cut emissions, by reducing fuel and by other means, the initial costs for<br />

shipping are bound to rise.<br />

The IMO must get its act together by the next MEPC meeting<br />

scheduled for March otherwise this august body could find itself<br />

overtaken by events. We have already had the scrubber/distillate debate<br />

on which the IMO wisely took the middle ground.<br />

Although COP15 did not present any threat, or give any direction, to the<br />

shipping industry, COP16 is scheduled for later this year at which our<br />

industry would do well to present itself in a good light. Why does the<br />

aviation industry always seem light years ahead in putting its case forward?<br />

Upon a visit to Denmark in October last year, your Editor was regaled<br />

with various initiatives attached the pan-industry ‘Green Ship of the<br />

Future’ project. This involves Danish companies and organisations from<br />

all shipping sectors getting together to offer various initiatives to save<br />

fuel and emissions.<br />

One of the main problems is that main engines have almost reached<br />

their efficiency potential and so other methods have to be adopted,<br />

either attached to the power train, or involving hull coatings and basic<br />

hull design, including stability/trim, or a combination of the whole of a<br />

vessel’s operational requirements, including effective voyage planning.<br />

This Danish ‘Green’ project has to be applauded and other leading<br />

shipping centres should take note, either acting through their respective<br />

shipping associations, or through the Round Table of shipping<br />

organisations, which is increasingly making its voice heard.<br />

Piracy<br />

The threat of piracy is not going to go away, but could well escalate this<br />

year, not only in the Indian Ocean region, but also elsewhere.<br />

Although aimed at the shipping industry, it is not a shipping problem,<br />

but rather a political and economic problem, especially in Somalia,<br />

where piracy is money motivated. In contrast, piracy in Nigeria and<br />

other West African hot spots tend to be politically motivated as the<br />

perpetrators tend to be anti-government and anti-oil major factions.<br />

All the shipping industry can really do is to encourage the flag states<br />

to lobby their respective governments to take action to stabilise the areas<br />

through the United Nations. Gun boat diplomacy has worked to a certain<br />

extent, but will not solve the problem as naval units cannot be<br />

everywhere all the time.<br />

Finally, in the tanker sector, 2010 also witnesses Intertanko’s 40th<br />

anniversary, which will be celebrated in early May with a banquet<br />

followed by a markets seminar. Let us hope the shipowners are earning<br />

enough money by then to really push the boat out.<br />

TO<br />

SUBSCRIPTION<br />

1 year (8 issues)<br />

$220 / €160 / £150<br />

2 years (16 issues)<br />

$330 / €240 / £225<br />

Subscription hotline:<br />

Tel: +44 (0)20 7510 4935<br />

Fax: +44 (0)20 7510 2344<br />

Email:<br />

jeffery@thedigitalship.com<br />

PRODUCTION<br />

Vivian Chee<br />

Tel: +44 (0)20 8995 5540<br />

chee@btconnect.com<br />

Printed by Alya Print<br />

ul. Siemianowicka 98<br />

41-902 Bytom<br />

Poland<br />

02<br />

TANKER<strong>Operator</strong> January/February 2010


LEADER IN MOBILE BROADBAND<br />

Don’t miss a shot<br />

of the 2010 Finals!<br />

NEW<br />

for 2010!<br />

Worldwide TV<br />

Satellite Library<br />

for Unmatched<br />

Convenience!<br />

“<br />

We want to reward our crew<br />

with a front row seat to this year’s<br />

ationae foota nas ae<br />

possible through the TracVision M9<br />

that has been installed on sixty of<br />

our vessels operating globally.<br />

“<br />

– Sergey Minakov, Electrical Engineer Superintendent,<br />

Unicom Management Services<br />

For the captain who insists on quality and reliability, there’s<br />

only one way to bring home theatre-quality TV onboard –<br />

TracVision. See the full line of systems for any size vessel at:<br />

www.tracvision.com<br />

<br />

© 2009


INDUSTRY - MARKETS<br />

<strong>Tanker</strong> Market 2010:<br />

Rejoice with caution!<br />

Even as tanker demand grows on the back of better economic activity and longer-hauls,<br />

the concurrent rise in tanker deliveries will ensure a supply- demand gap wide enough<br />

to keep the freight markets from witnessing a notable recovery,<br />

said Shalini Shekhawat of Drewry Maritime Services.<br />

As the world economy witnessed<br />

its worst ever recession since the<br />

Great Depression of the 1930s,<br />

tanker owners suffered from<br />

abysmally low earnings upon a notable drop<br />

in oil demand (and in turn tanker demand),<br />

coupled with a steady and sizeable rise in<br />

tonnage supply of over 9% year- on-year.<br />

Freight rates in 2009 fell by an average<br />

60% both in the crude, as well as the product<br />

tanker markets; with owners’ earnings falling<br />

by an even greater extent, due to steadily<br />

rising bunker costs seen since mid-February.<br />

Demolitions picked up pace in 2009 as the<br />

MARPOL deadline, pertaining to single hull<br />

tankers, approached and freight market returns<br />

fell. At 7.4 mill dwt, demolitions stood at<br />

double the 2008 level. Deliveries, however, at<br />

37.9 mill dwt were the highest since the early<br />

1970s, which resulted in a firm 9% growth in<br />

the fleet to 372 mill dwt.<br />

Global oil demand in 2009 turned out to be<br />

much weaker than was originally anticipated,<br />

mainly due to the slump in oil consumption in<br />

the West. IEA preliminary demand data<br />

pointed at an annual decline of 1.6%, with<br />

OECD demand estimated to have fallen by 2.1<br />

mill barrels per day (bpd). Coupled with this,<br />

high regional stocks meant reduced<br />

employment opportunities for tonnage in the<br />

Figure 1: Drewry <strong>Tanker</strong> Earnings Index<br />

market. At the same time, low oil prices led to<br />

tighter oil supplies from OPEC – again<br />

reducing tonnage demand.<br />

The Drewry <strong>Tanker</strong> Earnings Index fell<br />

from 383 in 2008 to 133 in 2009, the lowest<br />

since 2003. Average earnings on the<br />

benchmark TD3 route (VLCC, AG-Japan)<br />

shrank to one-third of the 2008 level to<br />

$22,442 per day in 2009. For clean tankers,<br />

daily returns on TC5 (LR1, AG-Japan)<br />

plunged to $14,042 per /day from $34,600 per<br />

day in 2008. Nevertheless, later in the year<br />

(4Q09) freight rates began to recover as oil<br />

Source: Drewry.<br />

demand saw a seasonal improvement and<br />

economic prospects became brighter. A rise in<br />

inactivity levels and demolitions also helped<br />

ease some supply-side pressures, providing<br />

support to the freight markets.<br />

<strong>Tanker</strong> demand set to rise<br />

The outlook for this year appears to be more<br />

promising for the oil market than previous<br />

expectations on the back of recovering<br />

economy. According to the IMF, the world<br />

economy is projected to experience a 4% GDP<br />

growth in 2010, resulting in a steady increase<br />

Source: IEA, IMF, Drewry, Morgan Stanley.<br />

Figure 2: World oil consumption<br />

04<br />

Source: IEA, EIA, Drewry.<br />

Figure 3: Historical & forecast world oil consumption (mill bpd)<br />

TANKER<strong>Operator</strong> January/February 2010


INDUSTRY – MARKETS<br />

Figure 4: <strong>Tanker</strong> supply growth (mill dwt) Source: Drewry. Figure 5: <strong>Tanker</strong> supply/demand balance (mill dwt) Source: Drewry.<br />

in oil demand, mainly non-OECD. Non-<br />

OECD oil demand is already above its prerecession<br />

peak and is forecast to rise by a firm<br />

3.7% in 2010 (IEA figures). But, in the<br />

OECD, oil demand is forecast to remain flat<br />

in 2010, if not rising. Nonetheless, the rise in<br />

world oil consumption will help boost tonnage<br />

demand this year.<br />

Moreover, during the year, there has been<br />

refinery capacity additions largely<br />

concentrated in Asia and the Middle East. The<br />

IEA said that refining capacity additions in<br />

2009 are likely to reach 1.8 mill bpd, of which<br />

more than 1.4 mill bpd is in China and India.<br />

Through 2010-12, a total of 3.5 mill bpd of<br />

refinery capacity additions are planned<br />

globally. Of this capacity, about 35% (~1.2<br />

million bpd) is planned in China, which is<br />

closely followed by the western hemisphere<br />

(OECD North America and OECD Europe) at<br />

1.1 mill bpd.<br />

According to Drewry, with most of the<br />

spare crude production capacity available in<br />

the Middle East, this additional refining<br />

capacity in the US/Europe and China is likely<br />

to be fed by longer-haul imports from the<br />

Arabian Gulf, hence supporting the growth in<br />

tonne/mile demand.<br />

The supply side of the tanker market<br />

equation will certainly be quite eventful as the<br />

year unfolds. Demolitions are expected to pick<br />

up pace in the wake of the MARPOL phaseout<br />

deadline and low freight market returns.<br />

Most of the countries, including the US and<br />

EU as well as the major trading nations of<br />

Asia – China, India and South Korea – have<br />

chosen to prohibit the use of single-hull<br />

tankers beyond 2010.<br />

With a long list of even double-hull tonnage<br />

waiting for cargo, trade opportunities for<br />

single-hull tankers will become marginal in a<br />

low freight environment, giving owners a<br />

greater incentive to demolish old units amid<br />

high scrap values. Demolitions are likely to<br />

jump three-fold from last year to 21 mill dwt<br />

in 2010. However, a large tranche of<br />

deliveries scheduled to come on stream will<br />

further inflate the tonnage glut, and may<br />

completely negate any possible positive effect<br />

that high demolitions would otherwise have<br />

on the ailing freight market.<br />

Even as tanker demand recovers on the<br />

back of improved economic activity and<br />

longer hauls, due to new refining capacity<br />

additions in Asian countries, the concurrent<br />

rise in supply will ensure a supply-demand<br />

gap wide enough to keep the freight market<br />

from witnessing any notable recovery in 2010.<br />

Spot rates might be better than in 2009, but<br />

these high rates will primarily be reflective of<br />

the relatively lower 2010 Worldscale flat rates.<br />

The new Worldscale flat rates are considerably<br />

lower in ‘$/tonne’ terms than in 2009, hence<br />

the call for an upward adjustment in the<br />

respective rates. With the supply-demand gap<br />

widening even further and rising bunker costs,<br />

Drewry expects earnings to remain as weak as<br />

in 2009.<br />

As far as the asset market is concerned,<br />

2010 is going to be interesting. On the one<br />

hand, given the already oversupplied tonnage<br />

list, new ordering is expected to be low thus<br />

correcting the freight market dynamics. Many<br />

owners, such as Frontline, remain sceptical of<br />

future trade prospects and have been holding<br />

back from ordering new vessels. Shipbuilder<br />

Hanjin Heavy Industries has even taken up<br />

restructuring plans to slash its workforce<br />

in 2010.<br />

On the other hand, reasonably low asset<br />

prices might lure some short-sighted owners<br />

into placing fresh orders despite the low<br />

returns, as was evident in late-2009. Of the<br />

11.8 mill dwt of tonnage contracted in 2009,<br />

10.4 mill dwt was ordered in 2H09, taking a<br />

hurried cue from the improving economy.<br />

With bettering economic conditions, major<br />

South Korean yards (STX Group, Daewoo<br />

Shipbuilding and Hyundai Heavy Industries)<br />

appear quite optimistic for 2010 and have<br />

significant Capex plans.<br />

Meanwhile, in the secondhand market,<br />

bottoming prices of pre-owned units could<br />

lead to higher activity as vessels changing<br />

hands do not add to supply, and thus provide<br />

owners with an excellent opportunity to<br />

expand their fleets without jeopardising the TO<br />

freight market recovery.<br />

This article is based on analysis in Drewry’s<br />

<strong>Tanker</strong> Forecaster. For further information<br />

see www.drewry.co.uk or contact the author<br />

at shekhawat@drewry.co.uk<br />

TANK CLEANING<br />

IMO-approved Chemicals<br />

in accordance with<br />

MEPC.1 / Circ.590<br />

We assist <strong>Tanker</strong> <strong>Operator</strong>s with:<br />

Chemical Tank Cleaning during cargo changeover from DPP to various CPP, CPP to<br />

Water White Standard, removal of MTBE residues, Inert Gas Soot, Dye, Veg. Oil etc.<br />

Preparation and assessment of the required tank cleaning<br />

Tank Cleaning Advice and Recommended Tank Cleaning Procedure<br />

Delivery of newly IMO-approved Marine Tank Cleaners from stocks world wide<br />

Delivery of chemical injection and special spraying equipment<br />

Supercargo and Supervision during the cleaning at sea by experienced experts<br />

NAVADAN · Hojvangen 13 · P.O.Box 35 · DK-3060 Espergaerde · Denmark · www.navadan.com<br />

Tel. +45-4917 0357 · Fax +45-4917 0657 · E-mail: navadan@navadan.com<br />

January/February 2010 TANKER<strong>Operator</strong> 05


INDUSTRY - NEWS<br />

Marine insurers must face up to new challenges<br />

Marine insurers have been hit by<br />

the devastating fall in volumes<br />

and values in global trade and by<br />

the dramatic drop in ship values,<br />

all combining to decimate<br />

premium income, the<br />

International Union of Marine<br />

Insurance (IUMI) said at its<br />

annual London winter meeting.<br />

In spite of one or two rises in the freight<br />

markets, the shipping slump continues to<br />

inflict serious damage on many shipowners,<br />

shipbuilders, ports and service providers. If a<br />

general recovery does materialise this year, it<br />

will be slow and painful.<br />

IUMI president Deirdre Littlefield of Starr<br />

Marine, New York said that underwriters were<br />

braced to tackle new problems, which were<br />

emerging as a result of the ongoing slump.<br />

She said: "Newbuild cancellations and<br />

deferments are increasing, but a huge amount<br />

of tonnage still is due to be delivered this year<br />

and next. Regrettably, we have not seen a<br />

significant leap in the scrapping rate of old<br />

ships, which is almost beyond belief in the<br />

present crisis.<br />

"Understandably, owners and charterers are<br />

doing all they can to reduce costs. If this<br />

means skimped maintenance and deferred<br />

repairs, however, it's bad news for insurers<br />

who cover hull, cargo and liability risks. The<br />

situation is compounded by the emergence of<br />

new problems. These are mainly technical but<br />

could lead to big headaches for underwriters.<br />

"For example, fuel management is quickly<br />

developing into an urgent issue. The ever more<br />

stringent requirements of MARPOL rules for<br />

reducing emissions means that the type and<br />

quality of bunker fuels are of vital concern. If<br />

on board fuel management goes wrong, there<br />

can be potential catastrophic consequences.<br />

"Of equal concern is the impact on<br />

machinery from the growing trend of slow<br />

steaming, now being strongly advocated by a<br />

number of operators as the way ahead to<br />

combat high fuel prices until seaborne trade<br />

picks up. However, many large, high-speed<br />

diesel engines are designed to operate only at<br />

sustained high service speeds.<br />

"In another area, underwriters, through<br />

surveyors, need to monitor the standard of<br />

repairs carried out at yards which have been<br />

equipped for new construction only but which<br />

are now desperate for work.<br />

"Laid-up ships is another worrying factor.<br />

Underwriters need to pay close attention to the<br />

various degrees of lay-up we are seeing,<br />

including the conditions of cover for trading<br />

for vessels which have been idle without<br />

being deactivated, or just lying at anchor or<br />

drifting awaiting firm orders, often with<br />

minimum maintenance and prone to collisions<br />

or typhoon damage.<br />

“BMT Marine & Offshore Surveys<br />

(incorporating the former Salvage<br />

Association) reckons there are 150 to 200<br />

ships lying in non-designated anchorages<br />

(outside port limits) along the Straits of<br />

Malacca and Singapore.<br />

"Cold lay-ups (six months or more) can<br />

Isle of Man gets closer to Japan<br />

produce huge problems. The bigger the ship,<br />

the bigger the problems. Many things can go<br />

wrong during lay-up and reactivation. For<br />

instance, if the ship's computers are closed<br />

down, how do you reactivate a dead ship<br />

without the computers working?<br />

"Last but by no means least, underwriters<br />

need to be careful as to whether on board<br />

standards have dropped in the past year<br />

through owners cutting corners to reduce<br />

operating costs. The slump has helped the<br />

seafarer shortage problem to some extent, but<br />

there is still an urgent need to recruit and<br />

train good quality officers. Owners are under<br />

great pressure but training budgets should not<br />

be reduced.<br />

"The overhanging threat of seafarers risking<br />

their lives or being held hostage for many<br />

months by pirates must be deterring many<br />

people from pursuing a seagoing career. The<br />

IMO has declared 2010 the ‘Year of the<br />

Seafarer’, and that includes crew welfare as<br />

well as recruitment and training. Insurers are<br />

aware of the risk to hull and machinery, and of<br />

course cargo, if crews are fatigued, discontented<br />

or suffering poor food or conditions. And the<br />

continuing trend to criminalise seafarers creates<br />

yet another negative image for shipping that<br />

impairs recruitment," Littlefield concluded in<br />

her address.<br />

More than ever, the IUMI president<br />

concluded, there is an acute need for<br />

underwriters to focus clearly and selectively<br />

on the risks presented to them and aim for a<br />

price that is realistic yet fair.<br />

<br />

The Isle of Man Ship Registry has<br />

signed a Memorandum of<br />

Understanding (MOU) with Toko<br />

Maruraku Transportation in Tokyo.<br />

It was signed in order to facilitate the<br />

registration and related services to its growing<br />

number of Japanese clients.<br />

The services that Toko Maruraku<br />

Transportation can perform include the<br />

registration of vessel and mortgage<br />

registration. For its part, the Isle of Man Ship<br />

Registry has agreed to provide all the<br />

necessary support to the Japanese concern.<br />

This agreement allows Toko Maruraku to<br />

nominate appointed agents to act on behalf of<br />

the Isle of Man flag, including the authority<br />

to issue documents of the Isle of Man Ship<br />

Registry, as well as verifying receipt of<br />

signed documents.<br />

It means that for the first time owners based<br />

in Japan and in other east Asian markets will<br />

have instant, real-time access to Isle of Man<br />

flag services and vessel registration issues on<br />

a localised basis.<br />

Dick Welsh, director of the Ship Registry<br />

said: “This Memorandum of Understanding<br />

represents an important step forward for the<br />

Isle of Man Ship Registry. Japan is a country<br />

we have proactively targeted with our<br />

marketing efforts, especially over the past<br />

year. This is starting to pay off with several<br />

new registrations being secured recently.”<br />

Last year, the registry revoked its proposed<br />

annual fee increase in response to the tough<br />

times faced by many of its shipowner<br />

signatories.<br />

The registry said the Isle of Man<br />

Government’s Department of Trade and<br />

Industry had agreed it would maintain<br />

the flag’s current fee levels until at least<br />

April 2010.<br />

At the time, the Isle of Man Government’s<br />

DTI Minister, David Cretney MHK, said:<br />

“This unprecedented move should allow<br />

shipowners and operators to consolidate their<br />

position in these trying economic times and<br />

send a very clear message that in these<br />

challenging times, the Isle of Man Ship<br />

Registry remains flexible and adaptable to<br />

changes affecting the global shipping<br />

industry.”<br />

The Ship Registry’s annual fee increase is<br />

based upon an assessment of its budget<br />

requirements, taking into account the cost of<br />

operating an international ship register in the<br />

face of increasing international requirements<br />

and costs of providing global services. <br />

06<br />

TANKER<strong>Operator</strong> January/February 2010


MIRACLE Tank Cleaning Guide<br />

provides tank cleaning guidance and detailed information for about<br />

7000 Annex I and II cargoes.<br />

MIRACLE contains physical/chemical properties, adjacent<br />

cargo coating and FOSFA-compatibility check, IBC requirements,<br />

emergency response info and compatible Draeger tubes.<br />

Some 200 customers, having MIRACLE in use on more than 1000 ships<br />

report less tank rejections, decreased cleaning time and<br />

cost reduction as a benefit.<br />

MIRACLE is available as<br />

• Book with annual updates (DIN A4 1000 pages)<br />

• CD with annual updates (local installation)<br />

• Online continuously updated (web-based access)<br />

For more informations please visit or contact<br />

www.chemserve-marine.com<br />

info@chemserve-marine.com<br />

Hubertuskamp 8<br />

D - 21521 Dassendorf<br />

phone +49 4135 - 808630<br />

fax +49 4135 - 808631<br />

info@chemserve-marine.com<br />

www.chemserve-marine.com<br />

MIRACLE as Book<br />

anytime and anywhere<br />

MIRACLE as CD<br />

runs without internet<br />

MIRACLE Online<br />

no installation necessary<br />

CDI<br />

SIRE<br />

Terminal Inspections<br />

Port State Control<br />

Flag State Inspections<br />

Class Inspections<br />

Vetting and HSE Monitoring Tool<br />

Repository for all shipboard inspections and events. Integrated follow up system.<br />

Automatic import of vetting inspection reports.<br />

Test our free 3D demo<br />

<br />

Fleet Reports<br />

Near Miss Reports<br />

Management Reports<br />

Repetitive Questions<br />

Most Frequent Deficiencies<br />

acc OCIMF<br />

Marine Injury Report<br />

Ship Visit Reports<br />

Internal Audits<br />

Navi Audits<br />

TMSA<br />

Overdue Items Report<br />

Oil Major Reports<br />

Ship Reports<br />

Marine Injury Reports<br />

Vessel/Cargo Damages<br />

Machinery Damages<br />

Environmental Incidents<br />

Near Misses<br />

Non Conformities<br />

Hubertuskamp 8<br />

D - 21521 Dassendorf<br />

phone +49 4135 - 808630<br />

fax +49 4135 - 808631<br />

info@chemserve-marine.com<br />

www.chemserve-marine.com<br />

Vetting Status Report


INDUSTRY - NEWS FEATURE<br />

IMEC outgrows<br />

the present -<br />

looks to the future<br />

There are many shipping organisations today – some say too many.<br />

However, one that has come a long way in a relative short space of time<br />

is the International Maritime Employers’ Committee Limited (IMEC).<br />

IMEC started off life as the seafarer<br />

bargaining forum of the ISF and under<br />

the astute leadership of David<br />

Dearsley, took on a separate identity<br />

and expanded its role considerably into cadet<br />

sponsorship and to becoming an organisation<br />

with representation at many industry fora<br />

worldwide, especially where seafaring<br />

is concerned.<br />

As the organisation became larger, the<br />

secretariat and its members decided that it<br />

should speak with a more independent voice<br />

and that sharing a building with the<br />

International Shipping Federation (ISF) and<br />

the International Chamber of Shipping (ICS)<br />

was no longer an option. Space was also<br />

becoming a premium, due to its increased<br />

membership, which now numbers over 130<br />

operating nearly 6,500 vessels of all types,<br />

belonging to more than 40 different flag states<br />

and employing more than 157,000 seafarers of<br />

all nationalities.<br />

Last year was something of a watershed<br />

for IMEC. First, the organisation moved to<br />

more spacious accommodation overlooking<br />

London’s St Katharine’s Dock and second,<br />

came the retirement of long term secretary<br />

general David Dearsley, who was replaced by<br />

Giles Heimann.<br />

Heimann had spent 12 months working<br />

alongside Dearsley and was officially<br />

appointed as secretary general on the latter’s<br />

retirement at the IMEC mid-year general<br />

meeting in Manila on 2nd October 2009.<br />

Also last year, IMEC had to cope with two<br />

traumatic events - the financial crisis took a<br />

firm hold of the industry, seeing unprecedented<br />

financial pressure on shipowners; plus the<br />

increase in piracy seen in the Gulf of Aden and<br />

off the Eastern seaboard of Somalia.<br />

The world’s financial problems were<br />

particularly significant at the bi-annual<br />

International Bargaining Forum (IBF)<br />

negotiations between the Joint Negotiating<br />

Training in full swing in the Philippines. Retired general secretary David Dearsley can be<br />

seen top left.<br />

Group (JNG), of which IMEC is a member,<br />

and the International Transport Workers’<br />

Federation (ITF) last year. The JNG is made<br />

up of IMEC, the Japanese and South Korean<br />

Shipowners’ Associations and Evergreen.<br />

Cost pressures<br />

Many of the IMEC members reported<br />

considerable pressure being put upon them to<br />

cut costs, of which seafarers employment<br />

represented a significant part. It was therefore<br />

agreed after three rounds of negotiations<br />

between the JNG and the ITF to maintain<br />

crew salaries at their current level until the<br />

end of 2010, in other words a pay freeze.<br />

The other significant development during<br />

2009 was the increase in piracy emanating<br />

from the politically unstable country of<br />

Somalia. IMEC, as a member of the JNG, had<br />

negotiated the creation of a High Risk Area in<br />

the Gulf of Aden with the ITF during the latter<br />

part of 2008, which was the first such area<br />

adopted by the industry and became a<br />

benchmark for other maritime associations.<br />

The increase in piracy during the early part<br />

of 2009 saw the High Risk Area subsequently<br />

expanded to cover the entire Gulf of Aden and<br />

then an area up to 400 miles of Somalia’s<br />

eastern seaboard.<br />

This High Risk Area calls for shipowners to<br />

route their vessels through internationally<br />

adopted safety corridors and allows seafarers<br />

serving on board ships transiting the area<br />

increased terms and conditions. While a<br />

temporary drop in piracy occurred during the<br />

Monsoon season, its abatement towards the<br />

end of last year saw a resurgence in attacks.<br />

The same key challenges that faced the<br />

industry in 2009 had continued thus far this<br />

year.<br />

The world financial situation is still in a<br />

critical period with continued pressure being<br />

08<br />

TANKER<strong>Operator</strong> January/February 2010


INDUSTRY - NEWS FEATURE<br />

New secretary general Giles Heimann.<br />

applied to all industries to cope with the drop<br />

in trade and curtail expenditure. While an<br />

understanding was reached last year that IBF<br />

pay reviews would be kept on hold until the<br />

end of 2010, in order to assess any change to<br />

the fortunes of the industry over a longer<br />

period, initial indications seem to show that<br />

the industry will not undergo any large change<br />

during the foreseeable future.<br />

IBF commitment<br />

Heimann said that IMEC is committed to the<br />

IBF negotiation process and fully intends to<br />

comply with the agreement to meet with the<br />

ITF during 2010 with a view to pragmatically<br />

examining the continued effect of the financial<br />

crisis on the ability of the shipowners to agree<br />

to any future increase in minimum salary<br />

levels, for seafarers employed by its members.<br />

Other meetings are planned to look at the<br />

methodology currently being used as much of<br />

it is several years old and thus out of date,<br />

such as the ‘model ship’ used in negotiations<br />

having a crew of 23.<br />

He also stressed that IMEC would continue<br />

to monitor and be an active participant in<br />

discussions surrounding the effect of piracy on<br />

world trade flowing through the Gulf of Aden,<br />

en route to and from the Suez Canal. In<br />

dialogue with the ITF, IMEC and its partners<br />

within the JNG, it will continue to evaluate the<br />

effectiveness of the established High Risk<br />

Area and of the warships patrolling the safe<br />

corridors through the Gulf of Aden.<br />

Having hosted a meeting of National<br />

Shipowners’ Associations during December,<br />

IMEC represented its members, and other<br />

associations, at a tri-partite conference called<br />

during the first week of January in the<br />

Philippines. At this conference, IMEC aired<br />

the view that while the effect of piracy was<br />

saving a significant impact on the safety of<br />

seafarers, the cause of the piracy was an issue<br />

that could not be dealt with by the shipping<br />

industry, but rather at international<br />

government level. IMEC will continue to<br />

lobby for governments to act during 2010,<br />

Heimann stressed.<br />

He also revealed that the Philippine<br />

Government had been very close to banning<br />

all its seafarers from sailing on board vessels<br />

in the area, but thanks to the meetings<br />

convened by IMEC, withdrew its threat.<br />

IMEC has since signed a joint communiqué<br />

with the Philippines to lobby other<br />

governments to take action to bring economic<br />

and political stability to the area. One result is<br />

that the Philippine manning agents will have<br />

to introduce mandatory anti-piracy training for<br />

their seafarers from 1st February this year.<br />

There are many other challenges to be faced<br />

this year - not least the rapidly approaching<br />

implementation of the Maritime Labour<br />

Convention (MLC) and also the amendments<br />

to the STCW convention. IMEC said that it<br />

would continue to monitor developments in<br />

both these key areas of international<br />

legislation closely in order to provide relevant<br />

and up to date advice to its members.<br />

MLC worries<br />

Heimann expressed a certain amount of<br />

apprehension about the impending MLC<br />

legislation, which was fast approaching and<br />

could be ratified in 2011. He said that many<br />

flag states were simply not ready to include<br />

the legislation in their government’s statute<br />

books and others had different interpretations<br />

of the MLC. Another cause for concern was<br />

the possible lack of port state control<br />

inspectors trained to tackle the question of<br />

MLC certification properly.<br />

Due to its expanded role, which now<br />

includes a sponsored cadet scheme, two new<br />

members of staff are needed. One position, an<br />

executive officer, training and development -<br />

will be dedicated to looking after IMEC’s<br />

increasing training commitments and act as<br />

secretary to the IMEC recruitment & training<br />

committee.<br />

Heimann explained that this position will be<br />

critical in maintaining communication<br />

between the IMEC training director, who is<br />

based with his two staff at a dedicated office<br />

in Manila, the chairman of the recruitment and<br />

training committee and the secretary general.<br />

This year will see the IMEC cadet<br />

programme in the Philippines grow by a<br />

further 250 cadets - 200 cadets at the<br />

Maritime Academy of Asia and the Pacific<br />

and a further 50 cadets at the University of<br />

Cebu, in addition to the other training<br />

commitments maintained by IMEC<br />

worldwide. This effectively increases the total<br />

number of cadets under the IMEC training<br />

scheme to over 500, sponsored for a four year<br />

period. Heimann said that there are plans to<br />

increase the number to around 1,000 cadets<br />

over the next three years, together with<br />

possible expansion into other manpower<br />

supply countries.<br />

The second position to be filled will be an<br />

administrative assistant who will be used in<br />

maintaining even closer contact and<br />

communication with the IMEC membership<br />

on a day to day basis, in particular dealing<br />

with accounts and contributions to the various<br />

funds operating under IBF agreements.<br />

Expanding role<br />

Other events this year include an Annual<br />

General Meeting planned for London during<br />

April and a mid-year general meeting in<br />

Mumbai in November. Heimann said that<br />

IMEC will also further build its relationships<br />

and connections with other shipowner<br />

associations in the near future and will<br />

continue to develop strategic partnerships that<br />

allow for greater exchange of experience and<br />

information, such as the industry roundtable<br />

on seafarer criminalisation. He also revealed<br />

that he intends to travel to various major<br />

shipping centres to sit down with members<br />

and listen to their views.<br />

IMEC vice chairman, Bob Goodall<br />

concluded: “2009 was indeed a year that was<br />

extremely positive in terms of the<br />

development of IMEC as a representative<br />

international members’ organisation. The<br />

move to the office and the succession of<br />

David Dearsley by Giles Heimann signifies<br />

the continued development of IMEC as a<br />

reputable and recognised industry authority.<br />

Of course, on a less positive note were the<br />

continued repercussions due to the world<br />

financial crisis and other issues, such as<br />

piracy, which continue to blight our industry. I<br />

am, however, confident that through continued<br />

co-operation and communication with all our<br />

partners, administrations and governments, we<br />

will tackle these challenges.”<br />

Finally, the IMO has decreed 2010 as the<br />

‘Year of the Seafarer’ in which IMEC said<br />

that it intends to play a significant role.<br />

TO<br />

January/February 2010 TANKER<strong>Operator</strong> 09


INDUSTRY - PROFILE<br />

How to get from<br />

A to B via C<br />

With shipping routes constantly changing due to a variety of reasons<br />

not least new separation zones; regulatory routes, such as SECA areas;<br />

anti-piracy protection zones; new terminals etc, there is a need for more<br />

accuracy in voyage planning when calculating the distance between ports.<br />

Many distance tables only list the<br />

shortest route from A to B,<br />

which does not take into<br />

account the correct sailing<br />

pattern. Draft restrictions, separation zones,<br />

offshore terminals and moveable pilot stations<br />

can all play their part in making a voyage<br />

calculation either too short or too long,<br />

causing both the owner/manager and the<br />

operator/charterer to miscalculate the true<br />

length of the voyage.<br />

To try to overcome this problem, in 2003 a<br />

group of 10 retired master mariners and other<br />

shipping experts joined together to digitise<br />

and update the bible of distance tables – the<br />

BP Shipping Marine Distance Tables.<br />

Introduced the following year, these new<br />

distances were calculated with the aid of<br />

electronic charts.<br />

By this time, the group - who were mainly<br />

made up of ex BP masters – had formed a<br />

company rather cleverly called AtoBviaC.<br />

Today, the electronic distance tables are<br />

constantly being updated as new ports<br />

terminals come on stream, some being several<br />

1,000 miles inland from the sea and others,<br />

such as FPSOs, monobuoys etc being far<br />

from land.<br />

“We are constantly monitoring routings,”<br />

AtoBviaC director Bill Morris told<br />

TAKER<strong>Operator</strong>. Morris also runs a<br />

company called Shipping Commercial<br />

Software.<br />

Since its launch in 2004, AtoBviaC has<br />

compiled a list of 7,550 ports, sub-ports and<br />

terminals and is constantly adding to the total.<br />

Sub-ports, such as those found in the<br />

Rotterdam/Europoort area and on the<br />

Mississippi river can be included separately to<br />

give greater accuracy.<br />

For example, if a vessel was sailing to<br />

Baton Rouge, many distance tables would<br />

give the information only as far as the pilot<br />

station at Southwest Pass, located at the<br />

entrance of the Mississippi Delta, some two<br />

days steaming from the final destination.<br />

Likewise, a vessel on voyage to Rotterdam<br />

would only be given the distance to the<br />

Hook of Holland, whereas AtoBviaC<br />

includes most of the ports on the Caland<br />

Canal and the New Waterway, which could<br />

make a difference of a couple of hours<br />

steaming time.<br />

Another example given by director Capt<br />

Trevor Hall was the distance from London to<br />

Le Havre. Most tables give the short route via<br />

North Foreland directly down the English<br />

Channel, whereas AtoBviaC’s electronic<br />

version will show the distance for a deep draft<br />

vessel via the Sunk pilot station and then<br />

down the western separation zone, which<br />

although longer, is the more realistic and<br />

accurate route.<br />

Anti-piracy diversions<br />

Another major example, which has come to<br />

light during the past couple of years is the<br />

route from Ras Tanura to LOOP Terminal via<br />

the Cape of Good Hope. The traditional route<br />

would take the vessel close to the East African<br />

coast. However, today due to the piracy<br />

situation in the region, the tanker would take a<br />

longer route, adding 475 miles to the journey,<br />

or two days extra sailing time.<br />

Taking another traditional tanker route-<br />

Ras Shukheir to LOOP - here, the shortest<br />

route via the Cape is around 12,450 miles<br />

using the inside channel close to the<br />

coastline. However, today, the tanker would<br />

need to steam 13,855 miles to avoid the<br />

potential piracy danger areas, especially<br />

around the Gulf of Aden.<br />

Even ship-to-ship transfer areas, such as the<br />

area off the UK’s East coast near Southwold<br />

are included and more are added as they<br />

appear. The new FPSO loading areas off the<br />

West African coast have had to be added in<br />

recent years and again more will be added as<br />

they come on stream.<br />

In addition to calculating distances<br />

Ex BP master now AtoBviaC director<br />

Capt Trevor Hall.<br />

accurately between ports and terminals, the<br />

system can provide a list of available ports<br />

and routing points within the tables. A short<br />

description of the route selected in plain text<br />

and a map on which the route was plotted is<br />

also included.<br />

The company is a licensed partner of the<br />

UK Hydrographic Office (UKHO) and all the<br />

relevant navigational information is updated<br />

on a weekly basis, using the Admiralty Notice<br />

to Mariners. Updates to the tables are then<br />

issued every two months via an online<br />

updating facility.<br />

The distance tables’ ‘engine’ can be used as<br />

a toolkit to enable software developers to<br />

incorporate the information into their own<br />

applications. For example, the tables are being<br />

10<br />

TANKER<strong>Operator</strong> January/February 2010


INDUSTRY - PROFILE<br />

used by ShipNet, Shipping Commercial<br />

Software and Danaos, among others. BP<br />

Shipping has the electronic distance tables on<br />

board the whole of its fleet and several<br />

broking houses have also purchased the<br />

system.<br />

Morris and Hall said that the ideal scenario<br />

would be a system installed on board each<br />

vessel in a fleet and also in the operations<br />

manager’s office so that any dispute regarding<br />

possible demurrage, or despatch could be<br />

quickly dealt with by using accurate distance<br />

tables for voyage estimating/planning and for<br />

post fixture work.<br />

Networked version<br />

To facilitate this, the system can be supplied<br />

as a network version for installing on a shared<br />

network server to ensure that all the users are<br />

accessing common data and simplifying the<br />

deployment of updates to the software and<br />

distance tables.<br />

The Distance Tables are also available as a<br />

web based service on an annual subscription<br />

basis. This service also provides information<br />

on distances steamed within the SECA<br />

(ECA) areas in Northwest Europe and off<br />

California.<br />

Last December it was announced that the<br />

Worldscale Association had again calculated<br />

the routes for the 2010 tanker flat rates using<br />

AtoBviaC’s distance tables. A major change<br />

for the tanker routes this year is, where<br />

applicable, was the calculating of routes using<br />

the Gulf of Aden Transit Corridor.<br />

Worldscale’s published rates covers 320,000<br />

voyage permutations from one or more load<br />

Ras Tanura to LOOP is now routed well to the east of East Africa.<br />

The route from Mongstad to the Mersey goes to the west of the Outer Hebrides.<br />

ports to one or more discharge ports, or<br />

terminals. The Worldscale rates are set in<br />

stone for a year, whereas routes, ports and<br />

terminals regularly change on a more<br />

frequent basis.<br />

AtoBviaC’s BP Shipping Marine Distance<br />

Tables can be downloaded via an internet<br />

connection with a BlackBerry, PDA, Pocket<br />

PC, or depending on its capabilities – a<br />

mobile telephone. A number of different<br />

layouts are available depending on the mobile<br />

device and browser being used.<br />

Once a port, or sub-port has been chosen,<br />

the country, UNCTAD Code, position and<br />

LoadLine zone can be displayed and the<br />

port’s location can be displayed on a map.<br />

Routing can be controlled by selecting a via<br />

point while a speed setting allows a voyage<br />

duration to be calculated together with the<br />

distance involved. The route used is<br />

displayed on map, the size of which can also<br />

be selected.<br />

A ‘continue voyage’ option is available to<br />

calculate distances involving more than one<br />

port, while a calculation history is displayed<br />

to allow overall distances to be evaluated, or<br />

distances via different routing points to be<br />

compared.<br />

Designed to be used in a Microsoft<br />

Windows 2000 application or a later version,<br />

the system is being marketed in two forms -<br />

standard and professional. The main<br />

difference is that with the professional model,<br />

a voyage planner and route warnings are<br />

added and information is displayed as a fully<br />

configurable user interface with dockable<br />

windows and layouts.<br />

The voyage planner allows the user to vary<br />

the vessel’s speed for each voyage leg and to<br />

include port and canal transit times. It can<br />

generate ETAs, calculate bunkers consumed<br />

and quantities to be stemmed.<br />

Although started by a group of ex BP<br />

seagoing tanker personnel, the distance tables<br />

have also been compiled to cater for other<br />

vessel types, such as drycargo, LNG, LPG,<br />

containerships and others. For example, Capt<br />

Hall said that today the LNG trades need<br />

special attention due to new offshore and<br />

onshore receiving terminals and loading<br />

terminals coming on stream.<br />

TO<br />

January/February 2010 TANKER<strong>Operator</strong> 11


INDUSTRY - PROFILE<br />

used by ShipNet, Shipping Commercial<br />

Software and Danaos, among others. BP<br />

Shipping has the electronic distance tables on<br />

board the whole of its fleet and several<br />

broking houses have also purchased the<br />

system.<br />

Morris and Hall said that the ideal scenario<br />

would be a system installed on board each<br />

vessel in a fleet and also in the operations<br />

manager’s office so that any dispute regarding<br />

possible demurrage, or despatch could be<br />

quickly dealt with by using accurate distance<br />

tables for voyage estimating/planning and for<br />

post fixture work.<br />

Networked version<br />

To facilitate this, the system can be supplied<br />

as a network version for installing on a shared<br />

network server to ensure that all the users are<br />

accessing common data and simplifying the<br />

deployment of updates to the software and<br />

distance tables.<br />

The Distance Tables are also available as a<br />

web based service on an annual subscription<br />

basis. This service also provides information<br />

on distances steamed within the SECA<br />

(ECA) areas in Northwest Europe and off<br />

California.<br />

Last December it was announced that the<br />

Worldscale Association had again calculated<br />

the routes for the 2010 tanker flat rates using<br />

AtoBviaC’s distance tables. A major change<br />

for the tanker routes this year is, where<br />

applicable, was the calculating of routes using<br />

the Gulf of Aden Transit Corridor.<br />

Worldscale’s published rates covers 320,000<br />

voyage permutations from one or more load<br />

Ras Tanura to LOOP is now routed well to the east of East Africa.<br />

The route from Mongstad to the Mersey goes to the west of the Outer Hebrides.<br />

ports to one or more discharge ports, or<br />

terminals. The Worldscale rates are set in<br />

stone for a year, whereas routes, ports and<br />

terminals regularly change on a more<br />

frequent basis.<br />

AtoBviaC’s BP Shipping Marine Distance<br />

Tables can be downloaded via an internet<br />

connection with a BlackBerry, PDA, Pocket<br />

PC, or depending on its capabilities – a<br />

mobile telephone. A number of different<br />

layouts are available depending on the mobile<br />

device and browser being used.<br />

Once a port, or sub-port has been chosen,<br />

the country, UNCTAD Code, position and<br />

LoadLine zone can be displayed and the<br />

port’s location can be displayed on a map.<br />

Routing can be controlled by selecting a via<br />

point while a speed setting allows a voyage<br />

duration to be calculated together with the<br />

distance involved. The route used is<br />

displayed on map, the size of which can also<br />

be selected.<br />

A ‘continue voyage’ option is available to<br />

calculate distances involving more than one<br />

port, while a calculation history is displayed<br />

to allow overall distances to be evaluated, or<br />

distances via different routing points to be<br />

compared.<br />

Designed to be used in a Microsoft<br />

Windows 2000 application or a later version,<br />

the system is being marketed in two forms -<br />

standard and professional. The main<br />

difference is that with the professional model,<br />

a voyage planner and route warnings are<br />

added and information is displayed as a fully<br />

configurable user interface with dockable<br />

windows and layouts.<br />

The voyage planner allows the user to vary<br />

the vessel’s speed for each voyage leg and to<br />

include port and canal transit times. It can<br />

generate ETAs, calculate bunkers consumed<br />

and quantities to be stemmed.<br />

Although started by a group of ex BP<br />

seagoing tanker personnel, the distance tables<br />

have also been compiled to cater for other<br />

vessel types, such as drycargo, LNG, LPG,<br />

containerships and others. For example, Capt<br />

Hall said that today the LNG trades need<br />

special attention due to new offshore and<br />

onshore receiving terminals and loading<br />

terminals coming on stream.<br />

TO<br />

January/February 2010 TANKER<strong>Operator</strong> 11


INDUSTRY - DENMARK REPORT<br />

Denmark -<br />

Successfully<br />

riding the storm<br />

Denmark is now the most successful country in shipping terms in the Baltic region,<br />

a situation mainly brought about by a sympathetic government.<br />

The country has also built up a<br />

vibrant maritime cluster down the<br />

years, which is very well<br />

illustrated when looking at the list<br />

of co-operating participants in the Danish<br />

‘Green Ship of the Future’ project (see page<br />

17). These include some of the world’s most<br />

influential companies in their respective<br />

fields, such as MAN Diesel, AP Moller-<br />

Maersk, TORM, Force Technology and others.<br />

As a result, shipping has become Denmark's<br />

second most important export earner, with an<br />

aggregate turnover of more than DKK100 bill.<br />

However, only 5% of the tonnage is employed<br />

in national and neighbouring countries' waters.<br />

It is estimated that together with their overseas<br />

affiliates, Danish owners operate a fleet of 50<br />

mill dwt. Taking all vessel types into<br />

consideration, Danish shipping companies<br />

own 3% of the world’s fleet, according to the<br />

Danish Shipowners’ Association (DSA).<br />

In line with almost everybody else, the<br />

latest DSA statistics show that the numbers of<br />

vessels under construction, or on order for<br />

Danish owners has slumped.<br />

Compared with the total as of 1st January<br />

2009, the number for January 2010 showed a<br />

drop of 30%. The total was 275 vessels<br />

totaling 11 mill dwt, compared with 15 mill<br />

dwt the year before. The DSA said that there<br />

were less than 10 new orders placed<br />

throughout 2009.<br />

However, the owners were still talking of<br />

significant expansion of the Danish fleet,<br />

which now totals 13 mill dwt (as of 1st<br />

January 2010).<br />

Sympathetic government<br />

What is driving the optimism is that the<br />

Danish government’s approach is in stark<br />

contrast to that of Norway and Sweden for<br />

example, allowing companies, such as AP<br />

Moller-Maersk, Clipper, NORDEN, TORM<br />

and others to build up sizeable fleets instead<br />

of taxing them to such an extent that they seek<br />

pastures new.<br />

The DSA said that the government and<br />

Danish maritime authorities generally support<br />

the creation of a positive political framework<br />

for ships to operate under the national flag.<br />

Maintaining the competitive edge of Danish<br />

shipping operations without direct subsidies<br />

and upholding the commitment to the<br />

principle of freedom of the seas with free<br />

market access are focal points of Denmark's<br />

national and international shipping policy, the<br />

association said.<br />

The DSA has come out firmly against any<br />

form of protectionism and state aid. Jan Fritz<br />

Hansen, DSA’s executive vice president<br />

claimed that certain countries were bailing out<br />

their shipping companies that were in<br />

financial trouble and others were trying to<br />

force local shippers to use their domestic flag<br />

vessels, especially on coastal trades.<br />

Despite the newbuilding downturn, the total<br />

number of vessels still to be delivered to<br />

Danish owners is substantial, currently<br />

corresponding to some 75% of the current<br />

January/February 2010 TANKER<strong>Operator</strong> 13


INDUSTRY - DENMARK REPORT<br />

doubt rumble on at all levels until the March<br />

IMO MEPC meeting and beyond.<br />

However, it has not all been plain sailing<br />

recently as the world’s financial situation<br />

coupled with a dramatic drop in freight rates<br />

has meant that companies are struggling to<br />

make ends meet.<br />

All the companies spoken with by<br />

TAKER<strong>Operator</strong> have various plans in place<br />

to cut costs, not least by cutting vessels’ fuel<br />

consumption and thus reducing emissions<br />

ahead of the regulatory constraints that are<br />

being put in place.<br />

DSA’s vice president Jan Fritz Hansen – trying to recruit seafarers.<br />

fleet size. As a result of fleet replacements and<br />

renewals in recent years, Danish companies<br />

now own and operate one of the youngest<br />

fleets in the world with an average age of just<br />

seven years, compared to a world average of<br />

about 13 years (October 2009 figures).<br />

Danish shipowners also operate an<br />

equivalent amount of tonnage chartered from<br />

foreign flag states, either on long term<br />

timecharters, or on bareboat terms.<br />

Figures produced in October 2009 showed<br />

that Danish concerns owned 3,292 tankers,<br />

amounting to 31% of the total Danish fleet,<br />

which corresponded to its highest ever level.<br />

The DSA warned that to maintain high,<br />

efficient safety standards, it was vital to<br />

employ well-qualified seafarers and personnel<br />

to operate the technologically advanced fleet,<br />

as well as to staff the wide range of associated<br />

maritime-related activities. To that end,<br />

Danish owners employ more than 20,000<br />

nationals and some 3,000 foreigners in the<br />

shipping industry alone.<br />

Although Danish nautical schools provide<br />

excellent training facilities and the industry<br />

offers outstanding carrier opportunities,<br />

Danish owners are, like many of their<br />

competitors, experiencing problems recruiting<br />

a sufficiently large number of seafarers.<br />

However, continuous efforts to redress this<br />

imbalance are being made, the DSA said.<br />

As for the low sulphur issue, the Danes are<br />

championing the bunker fuel levy scheme put<br />

forward by the Danish Maritime Authority<br />

(see TAKER<strong>Operator</strong>, November/December<br />

2009, page 32) against market based<br />

instruments, but no decision was made at<br />

UNFCCC (COP15) and the debate will no<br />

Satcoms success<br />

Apart from the some of the world’s largest<br />

shipping companies, Denmark is home to<br />

many equipment suppliers who claim to be<br />

leaders in their respective fields. One such<br />

company is Thrane & Thrane, which last<br />

September celebrated the delivery of the<br />

company’s 5,000th SAILOR FleetBroadband<br />

terminal since deliveries started in December<br />

2007.<br />

“Reaching this milestone in such a short<br />

space of time reflects how quickly<br />

FleetBroadband has been accepted and also<br />

how end-users appreciate the quality and<br />

reliability of SAILOR products,” said CEO<br />

Walther Thygesen. “The market for<br />

FleetBroadband continues to grow and based<br />

on the performance of SAILOR terminals so<br />

far, we hope to hit the next milestone of<br />

10,000 terminals much earlier than expected.”<br />

Since going, live, FleetBroadband has<br />

become the industry standard global data<br />

solution for all vessel types. It offers full<br />

global coverage following the third Inmarsat<br />

I4 satellite coming online in February 2009 to<br />

service the Asia/Pacific region.<br />

Thrane & Thrane was first in the market<br />

following the launch of the Inmarsat<br />

FleetBroadband service in November 2007,<br />

with the SAILOR 500 and 250<br />

FleetBroadband terminals. Thrane & Thrane<br />

extended its portfolio in June last year with<br />

the SAILOR 150 FleetBroadband terminal.<br />

This features the smallest FleetBroadband<br />

antenna to date and is designed for basic<br />

IP requirements and satellite telephony<br />

on board.<br />

The company was founded in 1981 by the<br />

twin brothers Lars and Per Thrane. The first<br />

product developed was a radiotelex modem<br />

for the Danish Ministry of Foreign Affairs. In<br />

the mid -1980s, Thrane & Thrane changed<br />

direction from producing radiotelex to mobile<br />

satellite communications based on Inmarsat,<br />

the world's leading mobile satellite operator.<br />

Today its equipment for the maritime<br />

14<br />

TANKER<strong>Operator</strong> January/February 2010


INDUSTRY - DENMARK REPORT<br />

Thrane & Thrane’s SAILOR brand is a world leader in FleetBroadband distribution.<br />

market is sold worldwide under the corporate<br />

Thrane & Thrane brand, and the SAILOR®<br />

sub-brand, through distributors and partners<br />

and as OEM products.<br />

Thrane & Thrane’s SAILOR products<br />

cover:<br />

Satellite communications: SAILOR VSAT,<br />

SAILOR FleetBroadband, SAILOR Fleet,<br />

SAILOR mini-C, SAILOR SC4000<br />

Iridium, SAILOR Satellite TV.<br />

Radio Communications: SAILOR System<br />

5000 MF/HF, SAILOR 6200 VHF series,<br />

SAILOR SP3500 portable VHF/UHF<br />

series.<br />

Safety & Tracking: Ship Security Alert<br />

System (SSAS), Long Range Identification<br />

and Tracking (LRIT), LocPoint – web<br />

based tracking.<br />

In the spring of 2004, Danish company<br />

Eurocom Industries, one of the world’s<br />

leading suppliers of equipment for maritime<br />

radio communication and owner of the<br />

SAILOR and SKANTI brands, was acquired<br />

by Thrane & Thrane. This acquisition secured<br />

Thrane & Thrane’s position as the largest<br />

supplier of communications equipment for the<br />

maritime market.<br />

In October 2006, Thrane & Thrane acquired<br />

the Norwegian company Nera SatCom, which<br />

was renamed to Thrane & Thrane Norway.<br />

In February 2009, Thrane & Thrane signed<br />

an agreement to acquire the advanced marine<br />

TV and Radioantennas manufacturer, Naval<br />

Electronics AB (Naval).<br />

Rival Furuno has its European headquarters<br />

in Copenhagen and has established the Furuno<br />

BroadBand Service Centre (FBS) in the<br />

Danish capital.<br />

FBS is responsible for the development,<br />

expansion and maintenance of Furuno’s<br />

maritime satellite communication activities,<br />

including marketing, support and traffic<br />

accounting for satcoms such as INMARSAT<br />

and VSAT systems.<br />

The centre also serves as the co-ordination<br />

centre for all Furuno subsidiaries, national<br />

distributors and clients in EMEA and North<br />

America providing airtime and co-ordination<br />

support.<br />

“We are very excited about this new office<br />

in Copenhagen. Our new Broadband Service<br />

Centre marks an important step forward in<br />

expanding our maritime broadband portfolio”,<br />

said Muneyuki Koike, managing director and<br />

divisional vice general manager of Furuno<br />

Electric.<br />

The new service centre will focus on the<br />

core areas vital for reliable maritime<br />

broadband connectivity including: tailored<br />

system solutions, least cost routing, airtime,<br />

compression utilities for bandwidth<br />

optimisation, trench settings, white and black<br />

listing of Web pages, on board GSM solutions,<br />

etc. FBS also offers consulting, educational<br />

seminars and sales support.<br />

In addition to FBS, Furuno had originally<br />

set up the European branch office (FEBO) in<br />

Copenhagen focusing on support in EMEA of<br />

the integrated bridge technology and Furuno<br />

INS Training Centre (INSTC), complete with<br />

skilled experts engaged in training of officers<br />

in bridge management and operational training<br />

in the use of Integrated navigation and<br />

communication systems.<br />

Major service group<br />

Based in Aalborg, the Wrist Group is one of<br />

the world’s largest ship services companies,<br />

providing a one-stop shop and single point of<br />

contact for all bunker fuel, ship supply and<br />

shipping products and services.<br />

As well as Wrist Ship Supply, the Group<br />

owns OW Bunker a major physical supplier<br />

and trader of marine fuels and provider of risk<br />

management services, and Wrist Shipping, a<br />

provider of shipping services. Through its<br />

Danish owners, such as Lauritzen, continue to take delivery of newbuilding tankers.<br />

January/February 2010 TANKER<strong>Operator</strong> 15


INDUSTRY - DENMARK REPORT<br />

three divisions, Wrist Group has a presence in<br />

22 countries worldwide and operates over 40<br />

tankers as part of its global fleet.<br />

By and large, the group has built up its<br />

portfolio on mergers and acquisitions and<br />

recently announced the purchase of World<br />

Ship Supply, West Coast Ship Supply, East<br />

Coast Ship Supply and Karlo Corporation –<br />

collectively known as One Source North<br />

America - the largest ship supply organisation<br />

in North America.<br />

The move represented the largest deal in the<br />

Wrist Group’s corporate history, and provided<br />

the organisation with a major inroad into the<br />

US and Canadian markets.<br />

This was Wrist Ship Supply’s fifth deal in<br />

the past 12 months and continued the group’s<br />

strategy of controlled global expansion. Wrist<br />

now has a significant presence in all key<br />

global regions in Europe, The Far East,<br />

Middle East and the Americas.<br />

In 2007, one of Europe’s largest private<br />

equity organisations – Altor - acquired the<br />

Wrist Group.<br />

TO<br />

Danish tonnage tax system explained<br />

The Danish Parliament passed<br />

the Danish Tonnage Taxation<br />

Act that implements a relatively<br />

low level of taxation, based on<br />

the total tonnage a shipowner<br />

operates. The Danish tonnage<br />

tax regime – including the level<br />

of taxation – is competitive and<br />

similar to the regimes already<br />

incorporated in the Netherlands,<br />

the UK, Germany etc.<br />

1) Which companies are included?<br />

The tonnage taxation regime can be used<br />

by limited shipping companies registered in<br />

Denmark, EU shipping companies with a<br />

permanent establishment in Denmark and<br />

all companies where the management is<br />

located in Denmark, provided that the<br />

company is liable to company taxation<br />

in Denmark.<br />

Shipping companies can choose to be<br />

taxed on the basis of the total actual tonnage<br />

they operate, or alternatively the ordinary<br />

income taxation.<br />

2) Window and limitation<br />

The tonnage tax is optional, and the<br />

choice made by the shipping company will<br />

be binding for a period of 10 years. This<br />

will apply not only to companies that<br />

choose tonnage taxation, but also to<br />

companies that are under the ordinary<br />

corporate taxation.<br />

Qualified companies are obliged to<br />

choose either corporate taxation or tonnage<br />

taxation before they file their income tax for<br />

the year in which they qualify for tonnage<br />

taxation.<br />

All qualifying shipping companies within<br />

a group have to choose a similar taxation.<br />

However, individual companies with<br />

separate and independent management and<br />

clearly different business activities can<br />

apply for separate taxation.<br />

3) Income subject to tax<br />

Only income derived from the shipping<br />

business and associated activities can be<br />

subject to the tonnage taxation. Associated<br />

business can include pool administration<br />

fees, operation and maintenance of<br />

dockyards and other related office facilities.<br />

The total income from sub-licensed<br />

transport services is also included.<br />

The tonnage income is derived from the<br />

company’s own fleet, ships on bareboat and<br />

timecharter of 20 gt or over. Bareboat<br />

leasing out of ships is not considered<br />

shipping business and can only incidentally<br />

be covered. The business has to be operated<br />

from Denmark for both business and<br />

strategic purposes.<br />

Timechartered tonnage can be included in<br />

a 10:1 ratio for owned tonnage, including<br />

bareboat chartered ships versus<br />

timechartered vessels. If the total gross<br />

tonnage moved by chartered ships exceeds<br />

the total gross tonnage moved by the<br />

company’s own ships with more than 10:1<br />

ratio, this income will be taxed as ordinary<br />

income.<br />

4) Tonnage income<br />

The tonnage income is calculated per 100<br />

net tonne per 24 hours regardless of<br />

operating status as follows:-<br />

et tonne per day<br />

Calculated income<br />

in DKK per 100<br />

net tonnes<br />

operated<br />

< 1,000 DKK 7.8<br />

1,000 > 10,000 DKK 5.6<br />

10,000 > 25,000 DKK 3.35<br />

25,000 > DKK 2.2<br />

Source: Danish Shipowners’ Association.<br />

All expenses concerning the tonnage<br />

income are non-deductible, and assets<br />

included in the tonnage tax can not be<br />

depreciated. However, profits from the sale<br />

of vessels are included in the tonnage tax<br />

and therefore not taxed separately.<br />

The tonnage income and other taxable<br />

income including financial income (see item<br />

4) are taxed with the ordinary company<br />

taxation rate which is presently 25%<br />

per year.<br />

5) Financial income<br />

If the company’s financial net income is<br />

positive, this income will be taxed<br />

according to the normal account. If the net<br />

financial income is negative, the financial<br />

expenses are allocated with regard to the<br />

ratio of the book value of the shipping<br />

companies’ assets, which are inside or<br />

outside the tonnage tax system.<br />

Gains and losses related to currency<br />

fluctuations are - independently of the net<br />

result - always allocated between either<br />

tonnage tax activities, or ordinary taxation.<br />

Gains and losses from futures related to<br />

the business are diverted to the account for<br />

which they are issued.<br />

6) Deferred taxes<br />

In the Danish tonnage tax system, the<br />

existing deferred taxes will not be abolished<br />

after a period of time as for example in the<br />

UK. The shipping companies which choose<br />

the tonnage tax after they have been using<br />

depreciations in the ordinary tax system in<br />

Denmark will have to keep a special system<br />

of accounts related to the ships, which have<br />

been depreciated in the ordinary tax system<br />

and ships acquired later. As long as the<br />

shipping companies do not change the<br />

shipping activity level significantly, no<br />

deferred taxes will actually be levied.<br />

New shipping companies can choose the<br />

tonnage tax without keeping this special<br />

system of accounts due to the fact that they<br />

have never used depreciations in the<br />

ordinary tax system. If such companies<br />

choose to opt out of shipping, the tonnage<br />

taxation is final for the period under the<br />

tonnage tax system.<br />

7) Flag requirement<br />

The Danish tonnage tax system is flag<br />

blind and includes all of a company’s<br />

vessels. However, in line with EC<br />

regulations, the shipping company must<br />

maintain the relative share of EU tonnage<br />

it had when entering the system. <br />

16<br />

TANKER<strong>Operator</strong> January/February 2010


INDUSTRY - DENMARK REPORT<br />

Danish shipping<br />

turns Green<br />

The Danish ‘Green Ship of the Future’ initiative has existed for just less than two years<br />

but has already initiated 19 projects aimed at reducing CO2, Ox or SOx and<br />

attracted most of the leading names in Danish shipping.<br />

This initiative was announced on<br />

the 9th of April, 2008 by the<br />

Danish Minister of Economic and<br />

Business Affairs Bendt Bendtsen<br />

and MAN Diesel director Thomas Knudsen.<br />

The project was established by MAN<br />

Diesel, Aalborg Industries, AP Møller - Mærsk<br />

and Odense Steel shipyard with the primary<br />

objective of demonstrating and developing<br />

new green technologies, with significant<br />

reductions of emissions. However, following<br />

its launch, the number of members and green<br />

projects has been growing substantially.<br />

The aim of the ‘Green Ship of the Future’<br />

was to reduce the air emissions from ships by:<br />

CO2 =30%.<br />

NOx =90%.<br />

SOx = 90%.<br />

There are four main focus areas, which are<br />

used to categorise the green ship projects into<br />

– machinery, propulsion, operations and<br />

logistics.<br />

During 2009, the partners decided to work<br />

together on a concept study of so-called ‘low<br />

emission ships’. The purpose of the study was<br />

to investigate the possible overall emission<br />

reductions when the various available<br />

technologies from the ‘Green Ship of the<br />

Future’ project were implemented already<br />

during the design phase of a new ship.<br />

Studies were carried out for two different<br />

ship types, an 8,500-teu containership and a<br />

35,000 dwt handysize bulk carrier. The basis<br />

for the containership was an A-Type vessel<br />

from Odense Steel Shipyard, while the basis<br />

for the bulk carrier was a Seahorse 35 type<br />

bulk carrier from designers Grontmij/CarlBro.<br />

In the concept studies, only available and<br />

proven ‘green’ technologies were used, which<br />

meant that it was possible to build the ships as<br />

specified and documented by the two project<br />

leaders behind the concept studies - Odense<br />

Steel Shipyard and Grontmij/Carl Bro.<br />

The concept studies were carried out to<br />

benchmark the new technologies in relation to<br />

the goal of ‘Green Ship of the Future’<br />

(reduction of exhaust gas emissions) and in<br />

relation to the coming international<br />

regulations on NOx and SOx emissions and<br />

most probably also CO2 emissions, by the<br />

introduction of the Energy Efficiency Design<br />

Index (EEDI) for new ships.<br />

Many partnerships<br />

Today, there are many leading Danish<br />

equipment suppliers and shipping companies<br />

involved in various projects linked to the<br />

scheme in partnerships.<br />

One such concern is Aalborg Industries,<br />

famous for marine boilers, heat exchangers,<br />

thermal fluid systems, inert gas systems and<br />

more recently scrubbers and ballast water<br />

treatment systems.<br />

Aalborg is undertaking a significant amount<br />

of research within the ‘Green Ship of the<br />

Future’ and the ‘Hercules’ projects with<br />

various partners.<br />

Aalborg’s waste heat recovery and main<br />

engine exhaust gas scrubber system are the<br />

company’s main input into the ‘Green Ship of<br />

the Future’ project. However, president and<br />

CEO Jan Vestergaard Olsen explained that<br />

marine boilers still accounted for 51% of the<br />

business, much of which is in demand from<br />

the tanker sector.<br />

For large tankers, such as VLCCs, Aalborg<br />

offers a complete package including large<br />

steam capacity oil-fired boilers, composite<br />

boilers, heat exchangers, waste heat recovery<br />

systems and inert gas systems. In short<br />

Aalborg claimed that it could take care of<br />

heat, steam power, energy and safety.<br />

The company also offers a global after sales<br />

service, including engineering projects,<br />

equipment retrofits, trouble shooting/problem<br />

solving, spare parts, inspections, retubing and<br />

servicing. The FPSO conversion market is<br />

another area being exploited.<br />

General manager Olav Knudsen explained<br />

that engine efficiency can be improved by<br />

installing a waste heat recovery system. He<br />

said that main engine research really came to<br />

Aalborg Industries’ Jan Vestergaard Olsen<br />

is a firm supporter of the ‘Green Ship of<br />

the Future’ initiative.<br />

the fore after the 1973 oil crisis, but today<br />

there was little potential for CO2 reduction<br />

through further engine development alone.<br />

Thermal efficiency had improved to about<br />

50%, which left another 50% to be exploited.<br />

Knudsen explained that by fitting waste<br />

heat recovery systems to the boilers of a<br />

VLCC, the potential output on a 32 MW main<br />

engine running at 100%, 85% and 50% MCR<br />

is 4.9%, while at 70% MCR the percentage<br />

was calculated at 4.2. Four VLCCs building at<br />

STX for Maersk <strong>Tanker</strong>s and two newbuilding<br />

VLCCs for Sanko at Hyundai Samho are to be<br />

fitted with the systems. He also said that being<br />

huge systems, they were easier to include at<br />

the newbuilding stage as they would be very<br />

costly to retrofit.<br />

For VLCCs, large gas tankers and other<br />

similar size vessels, Aalborg has introduced an<br />

exhaust gas economiser – MISSION XW-TG<br />

design. The equipment has range of between<br />

6-34 tonnes per hour, depending on the size<br />

January/February 2010 TANKER<strong>Operator</strong> 17


INDUSTRY - DENMARK REPORT<br />

Companies involved in the Green<br />

Ship of the Future project<br />

Aalborg Industries<br />

AP Moller-Maersk<br />

ABB<br />

APV<br />

Clipper<br />

Danish Centre for Maritime<br />

Technology<br />

Danish Defence<br />

Dansk Teknologi<br />

Desmi<br />

DFDS<br />

DTU Mechanical Engineering<br />

FORCE Technology<br />

GreenSteam<br />

and power of the engine to be fitted.<br />

The company claimed that the exhaust gas<br />

economiser has the following benefits –<br />

1) Heating surfaces are made of plate fin<br />

tubes to help make the boiler compact.<br />

2) Efficient soot blowers and water washing<br />

nozzles are built in for safe operation.<br />

3) Exhaust gas side pressure loss and<br />

temperature monitoring equipment are<br />

included.<br />

4) Adjustment and circulation water<br />

monitoring equipment are also included.<br />

Since 2007, Aalborg has been developing<br />

and testing main engine exhaust gas<br />

scrubber technology. The company has been<br />

involved with scrubbers for many years as<br />

part of its inert gas system programme. R&D<br />

project manager Jens Peter Hansen<br />

explained that Aalborg had sold several<br />

thousand scrubbers within the inert gas<br />

systems for more than 30 years.<br />

Tests were carried out on MAN Diesel test<br />

bed at Holeby in 2008, which resulted in<br />

Grontmij/Carl Bro<br />

Hempel<br />

Lauritzen Bulkers<br />

Lloyd’s Register<br />

LR-Marine<br />

MAN Diesel<br />

Mols-Linien<br />

NanoNord<br />

NORDEN<br />

Nordic <strong>Tanker</strong>s<br />

Odense Steel<br />

SIMAC<br />

TORM<br />

what is claimed to be the world’s largest<br />

scrubber system being fitted on board a<br />

DFDS ro-ro fitted with a 21 MW MAN<br />

Diesel main engine. The results are<br />

expected early this year. During the Holeby<br />

tests, Aalborg claimed that as much as 99%<br />

of SOx plus 80% of particulate matter<br />

was removed.<br />

In May of last year, Aalborg expanded its<br />

portfolio of equipment by entering into a<br />

60:40 joint venture agreement with German<br />

concern Aquaworx to produce ballast water<br />

treatment (BWT) systems. Aquaworx will<br />

supply the technology, which has been<br />

developed and tested with land-based systems<br />

in Holland and Aalborg will use its marketing<br />

network to introduce the systems for<br />

shipboard use.<br />

Aquaworx managing director Peter Falk<br />

said that to cope with potential market<br />

demand in the maritime sector, it made sense<br />

to join with a company already well<br />

established in that sector.<br />

The system has already undergone thorough<br />

testing at Lloyd Werft under GL guidance and<br />

basic IMO approval was granted at last year’s<br />

July MEPC meeting and type approval should<br />

be forthcoming this year. The equipment,<br />

which does not use chemicals, will be<br />

marketed from Singapore for existing vessels<br />

as a retrofit package in a modular concept.<br />

The Aalborg/Aquaworx BWT plant is<br />

claimed to have low energy consumption of<br />

about 25 kW for a 250 cu m per hour capacity.<br />

It was claimed to be easy to operate on board<br />

ship, it is self cleaning, waste free, has no<br />

negative impact on other installations and is<br />

safe to operate.<br />

Danish/Swedish initiative<br />

Another initiative under the ‘Green Ship of<br />

the Future’ banner saw a group of Danish and<br />

Swedish companies join together to examine<br />

the use of pre-insulated pipe systems<br />

on tankers.<br />

The purpose of this project was to reduce<br />

the overall fuel consumption on board a<br />

75,000 dwt Marinvest-owned LR1. The<br />

companies involved were APV, LR-Marine,<br />

Desmi and Marinvest. They discovered that a<br />

saving of around eight tonnes of fuel per day<br />

could be saved by utilising existing<br />

components.<br />

The project’s core was to examine the<br />

possibility of using the main engine’s waste<br />

heat to heat up the cargo areas on board the<br />

vessel. Initial analysis showed that it was<br />

possible to save up to 20% of the annual fuel<br />

consumption and thereby saving both money<br />

and CO2, NOx and SOx emissions.<br />

Piping supplier LR-Marine joined together<br />

with pump manufacturer Desmi and heat<br />

exchanger supplier APV. The existing system<br />

on board the Panamax tanker was modified by<br />

changing the outlet for the cooling water by<br />

inserting a modified heat exchanger between<br />

WE WOULD NEVER<br />

WE WOULD NEVER<br />

SOIL NATURE<br />

SOIL NATURE<br />

EVEN THOUGH NATURE<br />

EVEN THOUGH NATURE<br />

OFTEN SOILS US.<br />

OFTEN SOILS US.<br />

18<br />

TANKER<strong>Operator</strong> January/February 2010


environment-friendly<br />

INDUSTRY - DENMARK REPORT<br />

the existing components, thus channeling the<br />

heat from the water into the supporting<br />

systems on board the vessel.<br />

This provided heat for the cargo tanks,<br />

bunker tanks, accommodation and other<br />

systems and furthermore provided the heat<br />

and energy for all the supporting elements<br />

while the vessel was underway. LR-Marine’s<br />

global sales manager John Nielsen said that<br />

this basically meant that a tanker of this size<br />

did not need an oil-fired boiler when at sea. It<br />

would only be used when the vessel was not<br />

using its main engine.<br />

The calculations showed that eight tonnes<br />

of fuel per day could be saved on a vessel<br />

normally burning around 42 tonnes per day.<br />

This equates to about 24 tonnes of CO2<br />

emissions per day.<br />

The three co-operating companies mainly<br />

reacted to ideas put forward by Marinvest’s<br />

technical director Roger Karlsson. If the<br />

company implements the system across its<br />

fleet, new piping, heat exchangers and<br />

pumps will have to be fitted. In addition,<br />

all the pipes will have to be insulated to<br />

minimise heat loss.<br />

Nielsen claimed that the new equipment<br />

could be installed in two weeks on a vessel<br />

the size of an LR1 and the payback time<br />

would be around two years. Investment in the<br />

equipment would be a one off cost, whereas<br />

the benefits could last for 20-30 years.<br />

For newbuildings, the equipment could be<br />

installed without making any basic changes to<br />

the vessel’s design.<br />

The purpose of this project is to reduce the<br />

overall fuel consumption on board a 75,000<br />

dwt type oil tanker owned by Marinvest. As<br />

part of the project, the cooling water and<br />

boiler system will be analysed to cover how<br />

the heat can be utilised.<br />

The high temperature water from the main<br />

engine is to be used for cargo heating, transfer<br />

pipe heating and heating of the<br />

charge/discharge equipment. Because of the<br />

pipe insulation, it is possible to transfer<br />

relatively large amounts of energy from the<br />

main engine with relatively small losses, it<br />

was claimed.<br />

Propulsion initiatives<br />

MAN Diesel was one of the founders of the<br />

‘Green Ship’ initiative and much of the<br />

company’s main engine related equipment is<br />

MAN Diesel’s 2-stroke diesel engine expert<br />

Ole Groene.<br />

currently involved in various different<br />

projects. MAN said in a recent presentation<br />

that the challenges were to reduce emissions.<br />

For low speed diesel engines, the trend is<br />

for speed reductions to save fuel and thus<br />

emissions. Another way forward was<br />

mechanical, as well as thermal machinery<br />

powerful<br />

Our well-proven rudder systems are the ideal choice for all vessel types. Today’s working conditions<br />

ask for a reliable, individual design combined with best possible manoeu vra bility. A Becker Rudder<br />

would be your ex perienced captain’s choice for reliability, safety and superior manoeuvrability.<br />

friendly<br />

environment<br />

becker products<br />

WWW.BECKER-MARINE-SYSTEMS.COM<br />

January/February 2010 TANKER<strong>Operator</strong> 19


INDUSTRY - DENMARK REPORT<br />

An illustration on MAN Diesel’s new Chinese slow speed engine design.<br />

The low speed<br />

Chinese diesel<br />

engine<br />

The main engines would have<br />

the following particulars –<br />

1,000 hp @ 140-145 rev/min.<br />

1,000 kW @ 135-140<br />

rev/min.<br />

Six cylinders preferred, but<br />

five could be an option.<br />

Direct coupled reversible<br />

with a fixed pitch propeller.<br />

Simple construction with<br />

ease of maintenance.<br />

Minimum use of electronics.<br />

Fuel flexibility – either<br />

HFO, or MDO.<br />

Low SFOC and<br />

environmentally compliant.<br />

optimisation. Waste heat recovery systems and<br />

LNG, or LPG as the main fuel are other<br />

options under the microscope at MAN.<br />

Low speed, or 2-stroke engines, power<br />

about half of the world’s trade and MAN<br />

alone accounts for an average of around 85%<br />

of all 2-stroke diesel engines ordered in the<br />

last four years.<br />

In the presentation, the company gave an<br />

update of the latest initiatives in which it is<br />

involved. For NOx reduction, MAN is testing<br />

an exhaust gas recovery system at sea fitted<br />

on board a Maersk Line containership, while<br />

to reduce CO2 emissions, the company is<br />

working on variable turbine area (VTA)<br />

applications, auto tuning and engine/propeller<br />

and speed optimisations.<br />

Together with tanker specialist TORM,<br />

MAN is testing part load optimisation, which<br />

entails CO2 emissions and fuel efficiency of a<br />

6S50ME-B8 ME integrated with a TCA66<br />

(w/VTA) turbocharger.<br />

The project involves the development of a<br />

control strategy for a variable turbine installed<br />

with an electronically-controlled diesel engine<br />

and integrated into the engine control system.<br />

Verification will be sought with the engine<br />

performance measurements and comparisons<br />

made with a camshaft controlled engine with a<br />

non-variable turbocharger. Subsequently, the<br />

annual CO2 emissions for the vessel with an<br />

average load profile will be calculated.<br />

An in factory shop test was undertaken at<br />

Dalian Marine Diesel in July last year on the<br />

engine, which developed 9,480 kW at 127<br />

rev/min. It was fitted with a TCA66-21V<br />

turbocharger with a variable nozzle ring. The<br />

average load was 70% and the operating hours<br />

set at 6,000 per annum. MAN claimed that<br />

there was a potential fuel saving of $72,000<br />

annually given a fuel cost of $400 per tonne,<br />

but this figure still had to be confirmed.<br />

As for auto tuning, main engine tests were<br />

started on board the AP Moller-Maersk<br />

vehicle carrier Maersk Wizard (since renamed<br />

Hoegh Kobe) in February 2008. The tests<br />

were continued throughout 2009. MAN said<br />

that main engine auto tuning would be<br />

incorporated in the ME-ECS types as an<br />

option from January this year.<br />

The engine/propeller/speed (power train)<br />

optimisation research concerned an 8,000-teu<br />

containership with main engines selected for<br />

reduced vessel speeds. These were a de-rated<br />

9S90ME-C8, versus a 12K98ME-C7.<br />

With the containership operating at 26<br />

knots, the 12K98ME-C7 main engine would<br />

burn 57,292 tonnes of fuel oil per year against<br />

34,549 tonnes for a 9S90ME-C8 at a vessel<br />

service speed of 23 knots. The annual fuel<br />

cost saving calculated at $400 per tonne<br />

would be a potential $8 mill.<br />

Although MAN Diesel claimed an 85%<br />

share of the low speed propulsion contracting<br />

market as of September last year, the problem<br />

facing the whole industry is the lack of orders.<br />

For example, preliminary results for the first<br />

half of last year showed that MAN won 1,841<br />

MW of new orders, compared with 12,154<br />

MW for the whole of 2008 and a massive<br />

20,866 MW in 2007 at the height of the<br />

newbuilding boom.<br />

MAN’s senior vice president for the marine<br />

low speed business unit Ole Groene said that<br />

the company did see a potential in the so<br />

called Chinese beach shipbuilding yards for<br />

small bore 2-stroke engines, which would be<br />

used in domestic coastal and river traffic,<br />

including tankers.<br />

He thought that there were requirements to<br />

replace medium speed diesel engines with low<br />

speed engines coupled to fixed pitch<br />

propellers through a reversible gearbox,<br />

especially for vessels plying the Yangtse River<br />

trades.<br />

Yungpu, MAN Diesel’s new Chinese<br />

licensee, gave the following requirements for<br />

such engines, following market research<br />

undertaken in China –<br />

142 rev/min.<br />

1,000 bhp per cylinder.<br />

Six cylinders, or possibly five.<br />

Must not be electronically controlled.<br />

TIER II requirement doubtful.<br />

As a consequence, MAN Diesel has<br />

launched the S35MC-C9 and S40MC-C9 type<br />

diesel engines, having a power per cylinder<br />

of 740 kW at 142 rev/min and 1,080 kW<br />

TO<br />

at 136 rev/min respectively.<br />

20<br />

TANKER<strong>Operator</strong> January/February 2010


INDUSTRY - DENMARK REPORT<br />

Enhancing crew morale with live TV at sea<br />

Leading US satcoms concern<br />

KVH has its European<br />

headquarters in Denmark and is<br />

heavily marketing its satellite<br />

television services, especially<br />

with the FIFA World Cup<br />

tournament coming up in June.<br />

KVH explained that fleet managers and<br />

operators around the world are becoming<br />

increasingly aware of possibilities to<br />

enhance the quality of life for their crews.<br />

One of the obvious means to achieve this is<br />

to provide vessels with a satellite TV<br />

system, and thereby giving crews a front<br />

row seat to the latest news, sports, movies<br />

and more.<br />

In an industry where crew members are<br />

often at sea for months at a time, bringing<br />

something like satellite TV on board can<br />

provide a much-needed sense of home,<br />

keeping the crew focused and motivated.<br />

KVH said that it was making it easier<br />

than ever for crew to enjoy satellite TV at<br />

sea wherever vessels operate thanks to the<br />

company’s exclusive WorldWide TV<br />

Satellite Library for the TracVision M9.<br />

This new feature allows TracVision M9<br />

users to easily view programmes from<br />

satellite TV services around the world,<br />

including Free to Air channels. The<br />

satellites offering this service are preprogrammed<br />

in the antenna’s software, so<br />

adding a satellite to the library has become<br />

simple, the company claimed.<br />

The comprehensive WorldWide TV<br />

satellite library includes the most popular<br />

choices for regional satellite TV, including:<br />

ASTRA 1<br />

ASTRA 2<br />

HISPASAT, Europe<br />

HISPASAT, America<br />

HOTBIRD<br />

INSAT, India<br />

MEASAT 3, Malaysia<br />

NILESAT 101<br />

NSS 6, Southeast Asia<br />

NSS 11, China<br />

SIRIUS 3<br />

THAICOM 5, Thailand<br />

In addition, there are over 60 more plus the<br />

option to add two customised satellite<br />

entries.<br />

All KVH TracVision systems are built to<br />

commercial specifications and designed for<br />

trouble-free operation in the demanding<br />

marine environment. Furthermore, the<br />

satellite antennas use KVH’s exclusive<br />

RingFire technology for the best reception<br />

and coverage available.<br />

The RingFire technology is an ultraefficient<br />

antenna design that offer<br />

significantly higher reception and coverage<br />

than those available from comparably sized<br />

System Diagram<br />

Master Control Unit (MCU)<br />

User-friendly system set-up,<br />

monitoring, and diagnostics.<br />

Receiver<br />

(customer supplied)<br />

Television Monitor<br />

(customer supplied)<br />

antennas, the company said.<br />

The TracVision M9 comes with<br />

integrated GPS and automatic, fully<br />

stabilised skew adjustment and is therefore<br />

ideal for the world’s shipping industry,<br />

KVH claimed.<br />

<br />

The forthcoming football World Cup is an obvious target for satellite TV.<br />

January/February 2010 TANKER<strong>Operator</strong> 21


INDUSTRY - FLAG STATES<br />

IRS sets the<br />

record strait<br />

Although most flag states have<br />

their own surveyors, there is<br />

insufficient qualified numbers to<br />

cope with the shear volume of<br />

vessels, especially within the larger flag states.<br />

However, there are also many smaller<br />

perhaps less well developed flag states that are<br />

targeted by port state control, mainly due to<br />

the age of their vessels. It is these more than<br />

most that need help in maintaining a quality<br />

operation.<br />

Some of these flags have gained a certain<br />

reputation, especially with port state control,<br />

for operating what are claimed by some to be<br />

sub-standard ships. However, as the shipping<br />

rules and regulations tighten, the so called<br />

underperforming flag states have to get there<br />

act together, or become banned from many<br />

ports worldwide.<br />

One such class society looking after many<br />

smaller flag states is the International Register<br />

of Shipping (IRS). As well as many smaller<br />

flag states, IRS also has the world’s largest –<br />

Panama – on its books.<br />

Today, IRS is authorised to carry out<br />

surveying work on behalf of Bolivia,<br />

Cambodia, Cape Verde, Costa Rica, Eritrea,<br />

Georgia, Honduras, Kenya, Lebanon,<br />

Mongolia, Nigeria, Oman, Panama,<br />

Philippines, Sierra Leone, St Kitts & Nevis<br />

and Suriname.<br />

The current fleet numbers over 1,000<br />

vessels of 7 mill gt and the class society said<br />

that its goal was to be recognised by every<br />

country in the world, which it said was “just a<br />

matter of time.”<br />

Surveyors increased<br />

IRS recently increased the number of its inhouse<br />

surveyors by 20% and plans to build a<br />

completely exclusive network of surveyors<br />

worldwide. The Miami-based organisation has<br />

16 offices in strategic locations having<br />

recently opened facilities in Bergen and the<br />

Ukraine. Another three are to be opened in<br />

Africa, three more in Asia, including<br />

Singapore and one in South America this year.<br />

“We are continuously in the lookout for<br />

talented surveyors. With our plans for<br />

completely exclusive network of surveyors<br />

Classification societies have<br />

and still are playing a<br />

major role in looking after<br />

the surveying side of flag<br />

states’ activities.<br />

worldwide and acute shortage of trained<br />

manpower in the maritime industry,<br />

recruitment of surveyors is the most daunting<br />

task in front of us”, Bijimon Punnoose, a<br />

management committee member told<br />

TAKER<strong>Operator</strong>.<br />

IRS has been in existence for 16 years and<br />

is not an IACS member. “We are not against<br />

IACS. However, we believe that IACS<br />

membership should not be benchmark for<br />

evaluating classification societies.<br />

“We have not completely ruled out joining<br />

IACS. But until recently, IACS membership<br />

was not an option for us, due to the<br />

quantitative restrictions such as the age of the<br />

organisation, fleet size, etc”, Punnoose<br />

explained.<br />

However, IRS was one of the very few non-<br />

IACS class societies that participated in a<br />

seminar conducted by IACS regarding its new<br />

quality system certification scheme.<br />

“We are also analysing the pros and cons of<br />

the new membership criteria adopted by<br />

IACS. For the time being we would like to<br />

weigh our options, including formation of an<br />

alternative to IACS. We are willing to cooperate<br />

with IACS in R&D activities until we<br />

make up our mind,” he said.<br />

IRS also said that current bias by the media,<br />

as well as a major section of the industry in<br />

favour of IACS makes membership very<br />

tempting to refuse.<br />

“We probably might receive a lot more<br />

authorisations faster with IACS membership.<br />

However, what matters is the number of ships<br />

and customers. With our current authorisations<br />

we can serve almost 30% of the world fleet,”<br />

he stressed.<br />

Restrictive process<br />

Another problem highlighted by IRS was that<br />

the IACS transfer of class procedures where<br />

the loosing organisation has to clear their own<br />

recommendations before another IACS<br />

member certifies the vessel, was a restrictive<br />

practice. In IRS’ opinion, if a surveyor other<br />

than the one who imposed the<br />

recommendation can delete it; it does not<br />

matter if he, or she is from the same class<br />

society or not.<br />

“We are a classification society with a<br />

certified quality management system. We<br />

entirely comply with all applicable IMO<br />

requirements and are frequently audited by<br />

various maritime administrations. When 18<br />

different countries in the world recognise our<br />

quality and more and more owners find our<br />

services as a preferred alternative, we have to<br />

be careful submitting to the temptation of<br />

joining IACS. Hence we are taking a cautious<br />

approach on joining IACS,” Punnoose further<br />

explained.<br />

However, IRS said that the company was<br />

looking for further collaboration with other<br />

class societies. “We strongly believe that<br />

while competing with each other, there are<br />

several areas of common interest where<br />

various classification societies can cooperate,”<br />

he said.<br />

IRS already has co-operation agreements<br />

with Pt Biro Klaasificasi Indonesia, China<br />

Corporation Register of Shipping and Ship<br />

Classification of Malaysia and is negotiating<br />

similar agreements with a few more class<br />

societies. “We are ready to work with any<br />

classification society, if we can find some<br />

common goals,” he said.<br />

Talking of the IMO, IRS said that it had<br />

already worked closely with several flag states<br />

and its officials have acted as advisors to the<br />

delegations from several IMO member states<br />

in various committee and sub-committee<br />

meetings.<br />

“IRS’ R&D team is constantly monitoring<br />

developments at IMO and is advising various<br />

countries,” Punnoose said. IRS further<br />

explained that it took developments at IMO<br />

very seriously and assists in the forming of<br />

positions taken by some member states. “We<br />

will not achieve the role we have now through<br />

IACS, as we will have to first succeed to<br />

IACS agreeing with our position. We believe<br />

22<br />

TANKER<strong>Operator</strong> January/February 2010


INDUSTRY - FLAG STATES<br />

demonstrated true commitment to the vessel’s<br />

safety. There have been several dozen vessels<br />

which have been denied services by IRS<br />

during 2009, the class society claimed.<br />

IRS’ managing director Said Nassif.<br />

our probability of success is much higher in<br />

the current scenario,” he said.<br />

Co-operation<br />

IRS said that the organisation believed that by<br />

co-operating with medium sized class<br />

societies could assist it in lobbying efforts in<br />

more countries in the same way as it does in<br />

different countries. IRS also said that it was<br />

taking a lead in working with several medium<br />

sized class societies through the exchange of<br />

ideas and by trying to develop a common<br />

position, etc.<br />

An automated workflow program is<br />

currently in place within IRS. It is a<br />

computerised paperless system used to control<br />

the movement of documents according to its<br />

quality management system, ensuring that the<br />

checks and balances stipulated in the QMS are<br />

strictly adhered to and to improve traceability,<br />

as well as the verification of its processes. IRS<br />

said that the reduction in the use of paper was<br />

also environmentally friendly. The<br />

organisation also claimed that this system also<br />

improved the efficiency of document<br />

archiving and retrieval processes.<br />

For all the relevant vessel information, IRS<br />

has compiled a database called ‘e-ships’,<br />

which keeps track of all ships particulars,<br />

details of the surveys and their results, survey<br />

and certification status, history of PSC<br />

inspections, casualties, modifications, etc.<br />

IRS said that its vetting process was<br />

different than that practised by many other<br />

class societies. “We do not make restrictions<br />

based on the age, flag, country of beneficial<br />

ownership, etc,” Punnoose explained.<br />

The basis of the class society’s vetting<br />

process is a belief that in many cases<br />

shortcomings in effectiveness of the safety<br />

management system are due to a genuine lack<br />

of resources, despite a true commitment from<br />

owners. There is an acute shortage of trained<br />

professionals in the maritime industry.<br />

Small/medium sized owners are often not<br />

blessed with the best of the available talents.<br />

IRS said that one of the main reasons for its<br />

success has been its willingness to work with<br />

small and medium sized owners by supporting<br />

them in their desire to overcome any<br />

shortcomings.<br />

IRS also pointed out that if true<br />

commitment from the top management was<br />

not found, the organisation would prefer not to<br />

work with such owners/managers. Repeated<br />

detentions, casualties, or lack of commitment<br />

in dealing with<br />

surveys/audits/recommendations in a timely<br />

fashion are IRS’ lack of commitment<br />

indicators.<br />

In such cases, before committing to<br />

undertake full class entry surveys, IRS insists<br />

on a pre-entry survey/audit, the main purpose<br />

of which is to establish if the owner has<br />

Risk profile<br />

IRS has also created a risk profile for the<br />

vessels currently in its fleet, using the same<br />

parameters as mentioned above. As the risk<br />

level of a vessel increases, the class society<br />

offers to work with the owners to correct any<br />

problems. If they do not show interest in<br />

addressing the concerns and their risk level<br />

further increases, IRS requires additional<br />

survey/audit for certification to continue. In<br />

some cases, such requirements may be as<br />

harsh as requiring a special survey, including<br />

drydocking, a long way ahead of schedule.<br />

IRS claimed that were scores of vessels that<br />

had to leave class due to this process.<br />

The question of detentions is always a<br />

thorny issue with any class society and flag<br />

state. Outlining its record, IRS said that it had<br />

experienced no US Coast Guard detentions for<br />

several years. The performance under Tokyo<br />

MOU was described as “not bad”. The<br />

situation with the Paris MOU has improved<br />

quite a lot over several years. “We also are<br />

expecting further improvement in the coming<br />

years,” Punnoose said.<br />

IRS said that it was a strong supporter of<br />

port state control regime as it is envisaged in<br />

various international conventions. “However,<br />

we certainly do not support port state control<br />

practices in many countries. We do not intend<br />

to make all our quality improvement measures<br />

just around improving our PSC records. We<br />

believe that such a path will only help us to<br />

lose our focus from small and medium sized<br />

shipowners and developing countries. Our role<br />

is to be facilitators of safe shipping”, he<br />

emphasised.<br />

As an ISO 9001:2000 certified organisation,<br />

IRS claims to have systems built in its quality<br />

management system to find weaknesses and<br />

address them. Several of the quality<br />

improvement programmes listed below were<br />

the positive results of an effective quality<br />

management system.<br />

Progressively moving in to a completely<br />

exclusive network of surveyors.<br />

Implementing a continuing education<br />

programme for surveyors, covering all<br />

aspects of class and statutory surveys.<br />

Two-day regional meetings have been held<br />

for the surveyors, where various quality<br />

improvement programmes were<br />

extensively discussed. The meetings were<br />

held in Odessa during October 2008, in Ho<br />

Chi Minh City in February 2009 and in<br />

January/February 2010 TANKER<strong>Operator</strong> 23


INDUSTRY - FLAG STATES<br />

Miami during July 2009. Surveyors<br />

representing many different countries<br />

participated.<br />

The filtering in and filtering out processes<br />

adopted was non-discriminatory. Unlike<br />

many other major classification societies,<br />

there are no discriminations against certain<br />

class or age group of vessels/owners.<br />

Publishing Regulatory Bulletin and Intlreg<br />

Magazine to assist customers and<br />

surveyors in keeping up to date with<br />

regulatory changes to help ensure that the<br />

ships they deal with are in compliance.<br />

Developing several training courses to be<br />

offered through a department called IRTI.<br />

The ISM auditor training course received<br />

approval from IRCA recently. In a recent<br />

course held in Nigeria, officers from<br />

NIMASA were trained free of charge.<br />

IRS said that it recognised that its strategy<br />

might result in a higher rate of detentions than<br />

those who do not accept vessels over a certain<br />

age. “We believe our strategy is more<br />

responsive to the shipping industry. We do<br />

recognise that there is room for improvement<br />

and we are working on that,” Punnoose said.<br />

By being a classification society committed<br />

to supporting small and medium sized<br />

shipowners and developing countries, most of<br />

such operators and countries have to live with<br />

a much older fleet compared to more<br />

developed countries and larger shipowners.<br />

The reasons for this are historical and<br />

economical.<br />

Disadvantage<br />

It is natural to expect a port state control<br />

inspector to look at an older ship with a<br />

different eye than a younger vessel. Targeting<br />

matrices of many PSC MOU’s also puts older<br />

fleets at disadvantage. “To add to their woes,<br />

under the current situation with a severe<br />

shortage of qualified human resources in the<br />

shipping industry, it is the small and medium<br />

sized shipowners who are finding it hard to get<br />

the best of the talents available”, Punnoose said.<br />

The current situation outlined above results<br />

in many of the developing countries finding<br />

their way into so called ‘black lists’. It is<br />

incorrect to characterise all such fleets as<br />

‘sub-standard’. Moreover, instead of putting<br />

more efforts into capacity building in<br />

developing countries, taking a hostile stand<br />

against such fleets will only aid the movement<br />

of cargo carrying capacity from the<br />

developing countries to developed countries,<br />

which is not desirable, the class society said.<br />

IRS claimed that it was also supporting the<br />

flag states. For example, upon the<br />

implementation of the ISPS code, the class<br />

society assisted the Eritrea flag in the entire<br />

implementation of the code in its port<br />

facilities. Training is provided to flag<br />

administration officials, in most cases for free<br />

and IRS also acts as technical advisors to<br />

many administrations - in most cases free<br />

of charge.<br />

As for IRTI, it is now focusing on<br />

developing various products for the maritime<br />

industry. The industry is facing an acute<br />

shortage of trained professionals.<br />

Courses offered include auditing maritime<br />

safety management systems, various courses<br />

based on the ISPS Code, marine surveyor<br />

training, etc. More courses are being<br />

developed catering for the seafarers, shore<br />

based officials and various other maritime<br />

professionals. The courses utilise the<br />

accelerated learning principle and are very<br />

interactive for maximum knowledge<br />

retention.<br />

TO<br />

24<br />

TANKER<strong>Operator</strong> January/February 2010


INDUSTRY - FLAG STATES<br />

BMSR resurrects<br />

Shipowners’<br />

Association<br />

The aim of resurrecting an idea,<br />

which first saw the light of day<br />

about 10 years ago, was to<br />

increase the flow of information<br />

and to analyse pertinent issues, such as<br />

legislation, the flag state said.<br />

George Hutson, Barbados Minister of<br />

International Business and International<br />

Transport, said the relaunch represented a<br />

renewed commitment on behalf of his<br />

government and the country’s flag to further<br />

improve the quality of the services it offered.<br />

Christopher Sawyer, BMSR principal<br />

registrar of ships, said shipping had changed,<br />

which meant flag states and vessel operators<br />

had to work more closely together to -<br />

“efficiently guide their vessels through the<br />

Barbados Maritime Ships’<br />

Registry (BMSR) has<br />

relaunched its shipowners<br />

and managers association<br />

initiative.<br />

mountain of requirements that modern<br />

shipping has to abide by.”<br />

These changes included the loss by class<br />

societies of their pre-eminent position in ship<br />

certification brought about by the insistence of<br />

IMO to encroach on matters previously the<br />

preserve of class rules, such as the goal-based<br />

construction standards; the reluctance of the<br />

EU to accept classification societies as arbiters<br />

of statutory compliance as more and more<br />

class societies are operating as international<br />

business corporations, rather than providers of<br />

altruistic services to shipping, which has upset<br />

the EU.<br />

Sawyer also criticised the dramatic increase<br />

of ship inspections by port state control, plus<br />

the powers of detention granted to PSC<br />

inspectors which “has made the exposure of<br />

even well run ships a lottery.” He also<br />

remarked on the increasing expansion of the<br />

IMO’s legislative requirements into all spheres<br />

of ship operation.<br />

He said that he thought in general, shipping<br />

associations didn’t achieve that much as many<br />

members failed to attend meetings.<br />

The BMSR association will be split<br />

be in safe hands<br />

www.barbadosmaritime.com<br />

WHY FLAG WITH BMSR?<br />

PARIS MOU. WHITE LIST.<br />

PRAGMATIC APPROACH TO PRACTICAL PROBLEMS<br />

OVER 300 FLAG INSPECTORS WORLDWIDE<br />

US COAST GUARD’S QUALSHIP 21<br />

24/7 CONTACT AVAILABILITY<br />

SHIP FRIENDLY TAX REGIME<br />

BMSR’s Christopher Sawyer.<br />

Be protected.<br />

Barbados High Commission, Ship Registry, 1 Great Russell Street, London. WC1B 3ND tel: +44 207 636 5739 fax: +44 207 636 5739 email: registry@barbadosmaritime.com<br />

January/February 2010 TANKER<strong>Operator</strong> 25


INDUSTRY - FLAG STATES<br />

“<br />

...the powers of detention granted to<br />

PSC inspectors “has made the exposure<br />

of even well run ships a lottery.”<br />

”<br />

Christopher Sawyer, principal registrar of ships, BMSR<br />

between two entities – the Council and the<br />

Technical Committee. Sawyer said that the<br />

Council would have five prime roles –<br />

1) To help owners who would like to have<br />

the benefit of more involvement rather<br />

than just through the medium of BRMS<br />

Consult as at present.<br />

2) Review regulation interpretations.<br />

3) Consider with the Minister the practical<br />

implementations of impending rules, which<br />

might affect different ship types. (Sawyer<br />

explained that the Minister gives a lot of<br />

direction to the BMSR and also to the<br />

Barbados delegation to the IMO).<br />

4) Request technical support for the IMO<br />

delegation.<br />

5) Give direct communications between the<br />

Ministry and owners and managers - “We<br />

must have a means to contact the Ministry<br />

directly rather than going through the<br />

registry,” Sawyer explained.<br />

He envisaged four primary roles for the<br />

Technical Committee –<br />

1) Implications of legislation on running a<br />

fleet and making any requests necessary,<br />

once the implications had been studied.<br />

2) Make recommendations to the Council for<br />

changes to existing BMSR policy.<br />

3) To provide input into BMSR Consult for<br />

the benefit of owners and managers.<br />

4) Communications will be conducted via<br />

emails on templated paperwork, rather<br />

than have time consuming meetings.<br />

Sawyer said that he saw the main advantages<br />

as - the facilitating of two-way<br />

communications between the Ministry and<br />

the clients, plus the provision of a technical<br />

forum for the discussing of rules and<br />

regulations, the setting up of a pool of<br />

shipping professionals to aid the IMO<br />

delegation and circumventing the need to<br />

attend meetings as BMSR would organise the<br />

communications necessary for the association<br />

to work.<br />

Vessel inspections<br />

BMSR only uses IACS class society surveyors<br />

but will also inspect a vessel at least every 12<br />

months using its own people. If a vessel is<br />

detained by PSC twice or more during a 12-<br />

month period then it is deleted from the<br />

registry. Vessels of 10 years of age or over<br />

have to join BMSR’s Safety Watch<br />

Programme.<br />

Part of the programme looks for possible<br />

problems that could lead to a PSC detention.<br />

However, Sawyer lamented that some vessels<br />

with proper certification in place were still<br />

being detained.<br />

BMSR has what it calls a Condition<br />

Mapping Report, which analyses four main<br />

vessel parameters - appearance, functionality,<br />

control capacity (crew) and maintenance. A<br />

mean result is calculated using a grid pattern,<br />

Marshall Islands gains third spot<br />

The Marshall Islands Registry has<br />

moved into third position in the<br />

world’s open registry league.<br />

According to World Fleet Monitor*, published<br />

by Clarkson Research Services, the registry<br />

boasted more than 52.3 mill gt and 2,102<br />

registered vessels. The Marshall Islands was<br />

also the fastest growing of the top four<br />

registries last year.<br />

The Registry, which is administered by<br />

International Registries, Inc. (IRI), attributed<br />

its success to the continued decentralisation of<br />

registry services to its 20 worldwide offices,<br />

its client service ethos and the fact that it<br />

continues to post top safety and environmental<br />

scores with global port states.<br />

To that end, the Marshall Islands Registry<br />

remained the only major open registry to be<br />

included on the US Coast Guard’s QUALSHIP<br />

21 roster for four years in a row. The Registry<br />

also maintained its white list status on both the<br />

Paris and Tokyo MoUs. Clarkson also noted<br />

that the Marshall Islands has the youngest fleet<br />

among the top 10 registries.<br />

“We are delighted that the Registry’s<br />

growth trend continues to point upward and<br />

pleased to have an excellent complement of<br />

owners and operators registered with the flag.<br />

One of the trends we have been watching is<br />

the tonnage coming into the Registry and<br />

which is claimed to be very easy to read.<br />

Sawyer thought that first impressions were<br />

very important as a 30-year old vessel could<br />

have the appearance and functions of a 10-<br />

year old vessel, which often meant it was<br />

okay. PSC regimes normally target 20-year<br />

old vessels.<br />

Since the implementation of the ISM Code,<br />

BMSR confirmed the well held view that the<br />

quality of a ship’s management is more<br />

critical than the age of the ship itself.<br />

However unfortunately, the registry said that it<br />

recognised that the controls in place will<br />

continue to target older ships.<br />

Given the importance of a ship’s<br />

management, the registry has developed<br />

procedures to review the management at the<br />

initial pre-registration phase and annually<br />

thereafter.<br />

BMSR recently hit the 1 mill gt mark of<br />

vessels entered and had now arrived on the<br />

flag state scene as a serious player, Sawyer<br />

said. He also commented that the registry lay<br />

21st out of 50 top ‘White List’ flag states and<br />

was also a member of the US Coast Guard’s<br />

QALSHIP initiative.<br />

The registry also said that it was close to<br />

ratifying and implementing the Maritime<br />

Labour Convention 2006 (MLO) and the<br />

International Convention on Anti-Fouling<br />

Systems. As far as the MLC was concerned,<br />

an instruction to ratify would be made any<br />

time now, Sawyer confirmed.<br />

The Barbadian Ministry is also hopeful that<br />

the some of the island’s population would opt<br />

for a seafaring career, partly on the back of<br />

BMSR’s success. The Minister said that were<br />

opportunities open for local people to serve on<br />

Barbados flag vessels. Indeed, the Barbados<br />

Polytechnic was aiming to receive an IMO<br />

TO<br />

certificate for seafarer training.<br />

where it is coming from. In 2009, we saw<br />

more than 70% of the tonnage entering the<br />

Registry as newbuilding tonnage whereas in<br />

2008, only 50% was newbuilds. Not<br />

surprisingly, newbuilds engaged in the energy<br />

sector of the market make up 70% of this<br />

tonnage,” said president Bill Gallagher. <br />

* The World Fleet Monitor excludes<br />

merchant vessels under 100 gt, yachts, nonpropelled,<br />

inland waterway, fishing, and<br />

military vessels. It also excludes fixed and<br />

mobile platforms and barges primarily used<br />

for drilling and production in the offshore<br />

energy sector with the exception of FPSOs<br />

and drillships.<br />

26<br />

TANKER<strong>Operator</strong> January/February 2010


INDUSTRY - FLAG STATES<br />

Liberian Registry<br />

posts record fleet<br />

numbers<br />

This represented a net growth<br />

during the course of the year of<br />

215 ships and 10.5 mill gt. Last<br />

year was a landmark for the<br />

Liberian Registry as the 3,000th vessel was<br />

registered under the Liberian flag, and it was<br />

the year in which the agreement between the<br />

Liberian Bureau of Maritime Affairs and<br />

LISCR covering the management of the<br />

registry was extended for a further 10 years.<br />

Scott Bergeron, COO of the Liberian<br />

International Ship & Corporate Registry<br />

(LISCR), the US-based manager of the<br />

Liberian Registry, said, “The past 12 months<br />

have been a difficult period for shipping. The<br />

worldwide economic recession, plummeting<br />

freight rates, higher operating costs, the<br />

increased incidents of piracy attacks, and the<br />

unscheduled transfer of tonnage into lay-up to<br />

await more favourable market conditions, were<br />

just some of the more serious problems to have<br />

affected shipowners and operators in 2009.<br />

“The true test of any service provider in the<br />

international shipping industry comes in times<br />

of difficulty, rather than in the good years. The<br />

Liberian Registry is committed to helping its<br />

owners and operators to survive the current<br />

economic downturn and difficult market<br />

conditions and to be prepared in every way for<br />

safe and profitable operation. The continued<br />

healthy growth in the size of the Liberian-flag<br />

fleet confirms that we are succeeding in those<br />

objectives,” he concluded.<br />

Liberia is the world’s second-largest fleet<br />

after Panama. Some 47% of the numbers of<br />

vessels entered in the registry are tankers,<br />

while by tonnage or carrying capacity, the<br />

total number of tankers is 42%. Both<br />

“<br />

The Liberian-flag fleet grew<br />

to a record 3,140 ships,<br />

aggregating 97.2 mill gt,<br />

in 2009.<br />

percentages are by far the largest ship type<br />

flying the Liberian flag.<br />

New agreement in place<br />

As mentioned, the Liberian Bureau of<br />

Maritime Affairs has reached an agreement<br />

with the Liberian International Ship &<br />

Corporate Registry (LISCR), the US-based<br />

manager of the Liberian Registry, to extend<br />

for a further 10 years the agreement under<br />

which LISCR manages the registry.<br />

LISCR has managed the Liberian Registry<br />

since 1st January, 2000. During this period,<br />

the registry has greatly improved its levels of<br />

service, safety, security and client satisfaction,<br />

as a result of which it has attracted a record<br />

number of shipowners from around the world,<br />

the management company claimed.<br />

Under LISCR management, the registry has<br />

grown in size from 1,700 vessels of 53 mill gt<br />

to over 3,000 vessels of almost 90 mill gt –<br />

the highest totals in its 60-year history.<br />

Yoram Cohen, LISCR CEO said, “We are<br />

delighted to have reached agreement with the<br />

Liberian Bureau of Maritime Affairs to extend<br />

our management of the Liberian Registry for a<br />

further 10 years. The registry has a longestablished<br />

track record of combining the very<br />

highest standards for vessels and crews with the<br />

highest standards of responsive service to<br />

owners, and is on the ‘White List’ of all the<br />

leading Port State Control regimes. Our record<br />

“The true test of any service provider in the<br />

international shipping industry comes in times<br />

of difficulty, rather than in the good years.<br />

Scott Bergeron, COO, Liberian International<br />

Ship & Corporate Registry<br />

”<br />

speaks for itself, and gives us the opportunity to<br />

develop the register still further as an industry<br />

leader in terms of its expertise and initiative,<br />

and to build on its record tonnage figures.<br />

“The renewal of the management agreement<br />

is confirmation of the spectacular progress<br />

which the registry has made under LISCR’s<br />

stewardship, while maintaining its excellent<br />

safety record. We have added over 1,300<br />

vessels in the last 10 years and, even with the<br />

general economic and market downturn and<br />

the cancellation of some newbuilding orders,<br />

which has affected all ship registries, we are<br />

still set fair to significantly increase tonnage<br />

levels over the coming years.<br />

“That growth will come from both<br />

newbuildings and from existing, quality ships.<br />

And it will be growth on an international scale<br />

that will reflect the strength of the registry’s<br />

global brand and the high regard in which it is<br />

held by leading shipowners and operators.<br />

Germany and Japan are particularly exciting<br />

areas for us in terms of expansion, and our<br />

dedicated offices in Hamburg and Tokyo are<br />

doing brisk business,” Cohen said<br />

Bergeron added, “These are tough times for<br />

shipping and, in order to compete, ship<br />

registries have to take a proactive interest in<br />

their clients’ business. The Liberian Registry<br />

continues to work on a number of initiatives<br />

to help its customers survive the current<br />

economic crisis, including making special<br />

arrangements for ships while in lay-up. And it<br />

continues to plan for the future, for example<br />

by taking a proactive role on compliance with<br />

the ILO Maritime Labour Convention and by<br />

providing an industry lead in the conduct of<br />

harmonised audits.<br />

“Liberia believes in making sure that wellrun<br />

ships comply with both the spirit and the<br />

letter of the law so that they can go unimpeded<br />

about their business of keeping world trade<br />

moving and generating much-needed revenue<br />

for their owners. Where possible, it does<br />

everything it can to anticipate problems before<br />

they occur. In this way it can be the eyes and<br />

ears of its customers,” he said.<br />

TO<br />

January/February 2010 TANKER<strong>Operator</strong> 27


INDUSTRY - CHEMICAL/PRODUCTS TANKERS<br />

Consolidation the<br />

name of the game<br />

Is the light at the end of the tunnel getting brighter for the chemical/products trade?<br />

During the first three weeks of January, it certainly looked as though the worst was over.<br />

During December last year, it was<br />

noticed that rates had started to<br />

climb again to just about<br />

breakeven point from their<br />

historic lows seen last year. Last year, MRs<br />

were lucky if they could earn a TCE rate of<br />

$1,500 per day. By the third week of January<br />

2010, the level had crept up to just under<br />

$12,000 per day enough to garner a profit<br />

over operating costs, including finance.<br />

Writing in its weekly report, London broker<br />

EA Gibson explained the situation by saying<br />

that for quite some time, gasoline imports to<br />

the US were the driving force for MR tankers<br />

operating in the Atlantic Basin.<br />

Figures produced by the US Energy<br />

Information Administration showed that US<br />

gasoline imports increased from an annual<br />

average of 0.95 million barrels per day (bpd)<br />

seen in 2004 to 1.09 mill b/d in 2008, with<br />

shipments sometimes exceeding 1.5 mill b/d.<br />

However, last year this situation changed<br />

dramatically on the back of the global<br />

economic turmoil and falling US oil demand.<br />

In the first 10 months of 2009, total gasoline<br />

imports fell close to the levels seen in 2004,<br />

averaging just 0.97 mill b/d, with weakening<br />

imports from Europe accounting for most of<br />

the decline.<br />

Although this drop was not as big as might<br />

have been expected, for the tanker trades,<br />

lower import requirements coupled with the<br />

rapid MR fleet expansion, meant that for most<br />

of the second half of 2009 daily earnings for<br />

MR tankers on the Rotterdam – New York<br />

route (on a round voyage basis) were mostly<br />

below $3,000 per day - less than breakeven<br />

costs, EA Gibson said.<br />

However, when one door closes, another<br />

often opens and over the past few years there<br />

has been a marked increase in US product<br />

exports (mainly from the US Gulf). Combined<br />

exports of clean petroleum products (CPP)<br />

and residual fuel oil have more than doubled<br />

since 2004, increasing from 0.48 mill b/d to<br />

1.28 mill b/d in the first 10 months of 2009.<br />

At these levels, the gain in exports had<br />

TORM started the recent consolidation round with the 50% purchase of OMI.<br />

more than made up for the fall in imports, EA<br />

Gibson commented. Since 2004, exports of<br />

residual fuel oil rose from 0.21 mill b/d to<br />

0.42 mill b/d, while CPP exports, primarily<br />

distillates, jumped from 0.27 mill b/d to 0.85<br />

mill b/d during the same period. Interestingly,<br />

an increasing share of US distillate exports<br />

was destined for Europe. Distillate exports<br />

rose from negligible levels just a few years<br />

ago to 0.24 mill b/d between January and<br />

October 2009.<br />

As a result, the backhaul distillates trade<br />

from the US to Europe developed from an<br />

unpredictable and small trade just a few years<br />

ago into a much more frequent and sizeable<br />

business today, EA Gibson remarked.<br />

Therefore, although the fronthaul gasoline<br />

trade to the US still remains the key trade for<br />

the transatlantic MR market, growing US<br />

product exports should not be ignored as they<br />

represent opportunities and higher earnings<br />

potential. Thus, the round voyage economics<br />

of the TC2 gasoline market to the US no<br />

longer necessarily reflects the true MR<br />

Atlantic earnings, as MR owners are often<br />

able to secure backhaul cargoes from the US,<br />

EA Gibson concluded.<br />

Consolidation<br />

Today, we are also seeing consolidation in the<br />

product tanker industry with mergers and cooperative<br />

ventures becoming the norm. Pools<br />

are proving attractive and are expanding, both<br />

in terms of numbers of vessels entered and in<br />

terms of the number of members.<br />

Continuing TAKER<strong>Operator</strong>’s Danish<br />

theme this month, Maersk has consolidated<br />

much of Broström with the latter’s smaller<br />

units remaining in Gothenburg and the larger<br />

vessels joining Maersk <strong>Tanker</strong>s’ Handytanker<br />

pool and coming under the management of the<br />

Copenhagen office.<br />

Following on from TORM’s part purchase<br />

of OMI and Maersk <strong>Tanker</strong>s’ takeover of<br />

Broström, comes news of a Nordic<br />

<strong>Tanker</strong>s/Clipper tie up. In the smaller tanker<br />

market, Clipper has also been active in recent<br />

years in growing its fleet helped by the<br />

purchase of Crescent Shipping, including<br />

Bowker & King, Copenhagen <strong>Tanker</strong>s,<br />

Panamerican <strong>Tanker</strong>s and Wonsild.<br />

In addition, Van-Clipper was established in<br />

28<br />

TANKER<strong>Operator</strong> January/February 2010


INDUSTRY - CHEMICAL/PRODUCTS TANKERS<br />

2004 in a joint venture with Vanship, which<br />

brought in four VLCCs. A year later, all the<br />

tanker activity was consolidated under Clipper<br />

Wonsild <strong>Tanker</strong>s, which was renamed Clipper<br />

<strong>Tanker</strong>s in 2008. Apart from tankers, Clipper’s<br />

interests also include drybulk, multipurpose/project/heavy-lift,<br />

cruise vessels and<br />

ferries. The company owns a shareholding in<br />

DFDS, Mols-Linien and Eitzen Chemical,<br />

which is itself in merger talks with Berlian<br />

Laju <strong>Tanker</strong>s through its parent.<br />

The company also has an in-house<br />

shipmanagement operation – Clipper Marine<br />

Services - which as well as looking after the<br />

company’s technical needs, is marketed to<br />

third party concerns.<br />

As for the Nordic <strong>Tanker</strong>s/Clipper situation,<br />

the agreement for Nordic <strong>Tanker</strong>s' to acquire<br />

of parts of the chemical tanker operations of<br />

the Clipper Group was completed in January.<br />

According to the agreement, Clipper Group<br />

and Clipper Tankships will convert their<br />

ownership interests in five shipowning<br />

companies into a 31% ownership interest in<br />

Nordic <strong>Tanker</strong>s.<br />

Moreover, the minority owners in the five<br />

shipowning companies will convert their<br />

ownership interests into a 12% ownership<br />

interest in Nordic <strong>Tanker</strong>s.<br />

The Nordic <strong>Tanker</strong>s’ supervisory board thus<br />

exercised its authority under the articles of<br />

association adopted at the extraordinary<br />

general meeting held on 17th December, 2009<br />

to issue a total of 5,408,296 new shares<br />

nominally priced at DKK10.<br />

The total share capital of Nordic <strong>Tanker</strong>s<br />

will subsequently amount to<br />

DKK125,882,960.<br />

As a result of the transaction, the executive<br />

board of Nordic <strong>Tanker</strong>s now consists of CEO<br />

Tommy Thomsen and CFO Christian Hassel.<br />

Thomsen, a former partner of AP Møller-<br />

Product tanker rates are just beginning to show a profit.<br />

Broström’s smaller tankers will continue to be run from Gothenburg.<br />

Mærsk, has been CEO of Clipper <strong>Tanker</strong>s<br />

since January 2008, while Hassel, former<br />

CEO of Carnegie Investment Banking<br />

Denmark, has been executive advisor to the<br />

Clipper Group since April 2009. The<br />

remaining senior management team includes<br />

senior vice presidents Jens Pontoppidan and<br />

Claus Thornberg.<br />

As for the Nordic <strong>Tanker</strong>s fleet, this now<br />

consists of 15 owned vessels - six product<br />

tankers of between 35,000 and 73,000 dwt and<br />

nine chemical tankers of between 5,000 and<br />

13,000 dwt.<br />

In addition, Nordic <strong>Tanker</strong>s will be<br />

responsible for the operation of Clipper's 55<br />

remaining chemical and product tankers,<br />

ranging from about 2,500 dwt to 20,000 dwt.<br />

At the end of October last year, Clipper<br />

<strong>Tanker</strong>s had three newbuildings from 14,000<br />

dwt to 20,000 dwt on order and was due to<br />

take delivery of a further eight timechartered<br />

vessels with purchase options through 2010.<br />

Nordic <strong>Tanker</strong>s' product tankers will<br />

continue to be marketed through TORM's LR1<br />

pool and Maersk's Handytanker pool.<br />

By having interests in chemical, products<br />

and crude carriers, Clipper said that one sector<br />

should keep the other afloat during hard times.<br />

For example, all the VLCCs are long term<br />

chartered and the smaller vessels lift<br />

chemicals and petroleum products for the oil<br />

majors and other distributors.<br />

Performance monitoring<br />

On of the world’s leading independent tanker<br />

companys is Maersk <strong>Tanker</strong>s, which as well as<br />

large crude carriers, gas carriers and FPSOs<br />

has around 65 product tankers. To monitor the<br />

performance of different ship types, including<br />

containerships and tankers, the AP Moller-<br />

Maersk group formed Maersk Maritime<br />

Technology (MMT) a couple of years ago.<br />

This consultancy is engaged in projects<br />

aimed at optimising the fuel consumption and<br />

emissions from some 25 different vessel<br />

classes in the group. The optimum trim and<br />

speed of each vessel is being calculated by<br />

testing the vessel in seagoing conditions.<br />

MMT’s Jakob Buus Petersen explained the<br />

tankers and other types were going through a<br />

performance monitoring exercise, where the<br />

reports can instill on board competition<br />

between ships to come top of the performance<br />

league. Petersen explained that the scheme<br />

had also been extended to chartered tonnage.<br />

Oslo-based class society Det Norske Veritas<br />

has a strong presence in Copenhagen and<br />

counts TORM, NORDEN, Lauritzen <strong>Tanker</strong>s,<br />

January/February 2010 TANKER<strong>Operator</strong> 29


INDUSTRY - CHEMICAL/PRODUCTS TANKERS<br />

Maersk <strong>Tanker</strong>s and Simonsen among its<br />

Danish clients. Indeed, Simonsen undertook<br />

ISO 140001 certification last year on board all<br />

of its vessels. DNV has classed, or is classing,<br />

around 21 MRs building for NORDEN and<br />

TORM at Guangzhou.<br />

DNV is co-operating on many hybrid fuel<br />

systems to lower NOx emissions, including<br />

the use of fuel cells. One project involves a<br />

dual-fuel tanker where the main engine is<br />

powered by gas and the auxiliaries use fuel<br />

cells. By using this system, the main engine<br />

can be shut down upon entering a port or<br />

terminal with the fuel cell burning auxiliaries<br />

taking over.<br />

Pool expansion<br />

The Copenhagen-managed Norient Product<br />

Pool (NPP) is being expanded by the addition<br />

of a further three MRs.<br />

Partner NORDEN has agreed to purchase<br />

the three product tankers from Turkish owner<br />

Dunya for a total price of about $79 mill.<br />

The vessels are expected to be delivered to<br />

NORDEN during March/April this year, the<br />

company said.<br />

The three STX-built vessels are:<br />

Gan-Sabre of 51,228 dwt built January<br />

2008 – to be renamed to ord Sound.<br />

Gan-Shield of 51,213 dwt built January<br />

2007 – to be renamed to ord Sea.<br />

Gan-Spirit of 51,202 dwt built October<br />

2007 – to be renamed to ord Strait.<br />

NORDEN explained the purchase by saying<br />

that the current asset prices in the product<br />

tanker market made it possible to make<br />

investments, which would generate favourable<br />

returns as the freight rates were gradually<br />

normalising.<br />

The company said that it continued to<br />

analyse the possibilities of expanding the<br />

tanker fleet on an ongoing basis either through<br />

the purchase of secondhand tonnage, new<br />

long-term charters, or purchase of almost<br />

completed newbuildings from the shipyards.<br />

Any new initiatives depended on a complete<br />

assessment of tonnage price, quality and<br />

availability, NORDEN said.<br />

After taking delivery of the three vessels,<br />

NORDEN’s tanker fleet will total 31 vessels,<br />

of which, 12 are wholly owned. The tanker<br />

order book totals seven product tankers – four<br />

vessels on longterm charter from a Japanese<br />

yard for delivery in 2010, two owned<br />

newbuildings from a Chinese yard for delivery<br />

in 2011 and one vessel on long-term charter<br />

from a Japanese yard for delivery in 2012.<br />

The three newly purchased vessels will sail<br />

under Singapore flag and will be<br />

commercially operated by NPP, which will<br />

then consist of 63 vessels provided by 50%<br />

stakeholders - NORDEN and Interorient.<br />

Rival TORM has financed six of the<br />

company’s MR newbuildings to be delivered<br />

between 2010 and 2012.<br />

The agreement, which amounts to $167<br />

million, was concluded with Bank of China<br />

and Société Générale, as well as the Chinese<br />

export credit insurer Sinosure. The main<br />

conditions were in line with the company's<br />

existing loan agreements, TORM said.<br />

Including this agreement TORM’s<br />

unutilised loan facilities and cash totalled<br />

$565 mill while the remaining investments<br />

relating to the order book amounted to $455<br />

million as of 30 November 2009.<br />

At the end of the third quarter last year,<br />

TORM’s orderbook stood at 12 MRs. No new<br />

orders have been placed in the interim. TO<br />

TANKER<strong>Operator</strong><br />

COMMERCIAL TANKER OPERATIONS<br />

including shipbroking, legal matters<br />

and financing<br />

IN DEPTH INFORMATION<br />

on the latest newbuilds, sale and purchase,<br />

freight rates and derivatives markets, using<br />

industry known commentators<br />

A STRONG FOCUS<br />

on shipbuilding and repair<br />

KEY PLAYERS IN THE<br />

TANKER INDUSTRY<br />

will be profiled giving their views on<br />

current legislation, recommendations<br />

and trends. These will include chief<br />

executives from all sectors of the<br />

industry from equipment manufacturers<br />

to the top shipowners<br />

INFORMATION<br />

about meeting oil major requirements<br />

(TMSA / vetting)<br />

DEVELOPMENTS in management/<br />

safety/ environmental best practice<br />

NEW TECHNOLOGIES<br />

and commercial industry developments<br />

subscribe online at www.tankeroperator.com<br />

30<br />

TANKER<strong>Operator</strong> January/February 2010


TECHNOLOGY - TECHNICAL PROFILE<br />

Complete ‘Digital<br />

Ship’ software now<br />

available<br />

Software solutions provider AVEVA has begun to market its information management<br />

software package AVEVA ET to shipowners, operators and managers.<br />

Already established in the oil and<br />

gas, plus the shipbuilding sector,<br />

the latter through ship design and<br />

construction software, the system<br />

can offer a complete support system for a<br />

vessel’s lifecycle from the concept, through<br />

the design stage, construction, through<br />

maintenance and refits to the vessel’s final<br />

decommissioning/recycling. In other words –<br />

from the cradle to the grave.<br />

The idea is to bring together all the<br />

information needed for every component and<br />

workflow on board throughout a vessel’s life<br />

thus recreating the physical and operating<br />

properties of the vessel as a complete<br />

‘digital ship’.<br />

AVEVA NET can bring together all the<br />

documents and data associated with the vessel<br />

and the equipment fitted on board to provide a<br />

complete unified digital profile of the vessel.<br />

The information can be made available on<br />

board, in a management office, or elsewhere<br />

where necessary.<br />

For example, real time engine room data<br />

would sit alongside maintenance schedules<br />

and other relevant information.<br />

Another example cited by AVEVA, was the<br />

case of a bilge pump, which can appear as a<br />

3D image, imported from the original vessel<br />

design software.<br />

All kinds of information associated with a<br />

particular individual piece of equipment, such<br />

as the bilge pump, can be listed. These include –<br />

Supplier’s website.<br />

Heat rating.<br />

Peak performance characteristics.<br />

Scanned hard copy depicting the results of<br />

last service.<br />

List of qualified engineers for the pump<br />

series.<br />

Workpack tool to enable any procedure<br />

that needs to be carried out on the pump to<br />

be automatically sent to the correct<br />

personnel, etc.<br />

All the necessary details relating to a pump can be shown digitally.<br />

The software can also automatically identify<br />

which pipe is associated with a particular<br />

pump and valve, also including the relevant<br />

information. It can also flag up when this<br />

documentation is incomplete, or when items<br />

are missing from the standard technical<br />

data associated with a particular pipe, or<br />

other objects.<br />

Interlinking objects<br />

AVEVA claimed that this initiative allows an<br />

understanding of how objects are interlinked<br />

and the effect that any changes will have upon<br />

them simultaneously. It also gives a sense of<br />

reliability and quality to the data, which helps<br />

further decision making concerning a<br />

particular piece of equipment, such as a pump,<br />

or pipe system, the company said.<br />

Subject to the right of access, all the<br />

information is visible and manageable across<br />

multiple locations, such as on board ship and<br />

ashore. The company claimed that it was also<br />

no longer necessary to search individual<br />

applications and data stores for information,<br />

or to have the original authoring applications,<br />

which originally created the pump.<br />

Vast quantities of information of all kinds<br />

can be housed in the software from many<br />

different sources and in many different<br />

formats, while the software can help ensure<br />

that the correct personnel have access to it and<br />

furthermore act upon it as necessary.<br />

Information can be organised, controlled<br />

and automatically cross-referenced and<br />

delivered through an intuitive interface, the<br />

company said. What is claimed to be unique<br />

with AVEVA NET is its ability to identify<br />

information inconsistencies, as well as<br />

missing data, which helps to provide more<br />

transparent support in the decision making<br />

process and thus enhancing vessel safety and<br />

efficiency of operation.<br />

January/February 2010 TANKER<strong>Operator</strong> 31


TECHNOLOGY - TECHNICAL PROFILE<br />

A ‘digital ship’.<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

The software is powered by a digital information hub, which is a<br />

centralised, secure collaborative data management system and is<br />

claimed to be completely application neutral. Data of any type and<br />

produced by any program can be managed and made accessible for use<br />

by other applications, (whether originating from AVEVA, or from third<br />

parties), workflows and users.<br />

AVEVA said that the benefits to shipowners/managers is the support<br />

offered in a vessel’s day-to-day operations by supplying the tools<br />

needed to manage and modify data, which can emanate from the<br />

original design plans. This data can also be integrated with survey data<br />

taken from photogrammetry, or by laser scanning.<br />

By using the survey data with the original design data, an owner/<br />

manager will have the data needed for –<br />

Refits, upgrades and conversions.<br />

Re-engining.<br />

Routine safety and maintenance.<br />

Verification of ‘as built’ against ‘as<br />

designed’ data.<br />

Decommissioning/recycling.<br />

By using this system, a significant amount of time and money can be<br />

saved when compared with undertaken the traditional manual method<br />

of surveying, AVEVA added.<br />

Chevron has selected AVEVA NET to manage critical information on<br />

board its giant FPSO Agbami. Data is continually updated on the master<br />

hub and then synchronised with the replicated data on board the FPSO.<br />

AVEVA is probably better known in the shipbuilding sector, partly<br />

due to its acquisition of Tribon a few years ago. Nine out of 10 Chinese<br />

shipyards now make use of an AVEVA system, while several have<br />

included AVEVA NET to provide owners with a complete design,<br />

production and information management package.<br />

Overall, AVEVA design technology has been installed in 43 out of<br />

the world’s top 50 commercial shipbuilding yards. Training facilities<br />

have been established across the globe and have been coupled with<br />

permanent ‘centres of excellence’ such as the, the AVEVA Marine<br />

Technology and Service Centre in Busan, South Korea.<br />

As part of its ship design software portfolio, last month, AVEVA<br />

announced the release of AVEVA Hull Finite Element Modeller. This<br />

program is claimed to be able to accelerate and simplify the stress<br />

analysis of ship structures.<br />

Ship designers rely on the use of Finite Element Analysis (FEA) to<br />

ensure that hull structures comply with rigorous strength criteria and<br />

achieve low levels of vibration.<br />

FEA is a computational technique for stress and vibration analysis,<br />

which entails the replication of a physical structure as a mesh of a<br />

very large number of small elements.<br />

TO<br />

TANKER<strong>Operator</strong> January/February 2010


TECHNOLOGY - PROTECTIVE COATINGS<br />

Selecting the right<br />

coating aids<br />

emissions control<br />

Although as far as shipping was concerned, COP 15 was a bit of a damp squib,<br />

coatings manufacturers were already working towards products<br />

that would help cut carbon emissions and costs.<br />

Most experts agreed that the<br />

Copenhagen meeting would<br />

have an impact in future<br />

debates at the IMO, UN and<br />

EU as it did change the setting for any future<br />

negotiations on shipping and the environment.<br />

For example, early this year, the US Senate<br />

is likely to try to push through cap and trade<br />

legislation, which is expected to cover bunker<br />

fuels in a wider carbon tax regime as part the<br />

Kerry-Boxer bill. Further high level climate<br />

conferences in Bonn, Germany and COP16<br />

scheduled for Mexico in November will keep<br />

the momentum going aimed at shipping’s<br />

regulators.<br />

Measures agreed at IMO’s MEPC meeting<br />

in July last year are likely to be refined at the<br />

next meeting scheduled for March 2010. Last<br />

September, the UK Chamber of Shipping said<br />

that it expected new technologies and designs<br />

to deliver energy efficiency savings of up to<br />

40% on new vessels relative to the typical<br />

type of ships built in the 1990s.<br />

It has also been suggested not least by the<br />

IMO that the application of known<br />

technologies and practices could lead to<br />

shipping being 25-75% more energy efficient,<br />

depending on the vessel type and the degree<br />

of compromise taken to adopt the technologies<br />

and practices.<br />

According to the coatings manufacturer<br />

International Paint’s (IP) Environmental<br />

Report, technologies already exist that have<br />

been proven to cut emissions substantially. IP<br />

said that hull roughness had a direct effect on<br />

the power requirement and thus emissions. If<br />

vessels did not use anti-foulings, their fuel<br />

consumption would be as much as 40% higher.<br />

Mercator closely monitored the Prem Pride’s fuel consumption following the coating<br />

application.<br />

Research undertaken in the 1970s and<br />

1980s* showed that, should average hull<br />

roughness (measured in microns) increase<br />

over a given period from around 140 microns<br />

to 280 microns, about 5% more power would<br />

be needed for a fast containership to maintain<br />

its schedule.<br />

Hull roughness reduction<br />

The emergence of self-polishing copolymer<br />

coatings with their superior anti-fouling<br />

properties went some way to reducing the hull<br />

roughness penalty paid by owners. However,<br />

as fuel costs escalated newer generation<br />

coatings have emerged that were specifically<br />

designed to reduce the friction on the<br />

vessel’s hull.<br />

While self-polishing copolymers remain the<br />

prime products, leading coatings<br />

manufacturers have fast tracked the<br />

development of the ‘biocide free’ foul release<br />

coatings as an alternative. For example,<br />

silicone-based coatings provide a very<br />

smooth, slippery and low friction surface, to<br />

which fouling organisms have difficulty<br />

attaching themselves.<br />

IP introduced the first commercially<br />

available silicone-based biocide free foul<br />

release coating for fast craft in 1996 and<br />

followed this by producing a deepsea<br />

equivalent – Intersleek 700 – some three<br />

years later.<br />

As well as anti-fouling properties, the<br />

resulting hull smoothness has direct<br />

consequences for fuel consumption, costs and<br />

the environment. Measured against<br />

conventional self-polishing copolymers,<br />

silicone foul release coatings have been<br />

proven as achieving an average of over 4%<br />

fuel saving and a corresponding reduction<br />

in emissions.<br />

Given encouraging results with Intersleek<br />

700, IP introduced Intersleek 900, which is<br />

January/February 2010 TANKER<strong>Operator</strong> 33


TECHNOLOGY - PROTECTIVE COATINGS<br />

IP has introduced universal primers suitable for ballast tank protection.<br />

claimed to offer even lower levels of friction.<br />

The paint manufacturer said that the new<br />

coatings represented the ‘next generation’ foul<br />

release technology, using fluoropolymer<br />

chemistry to improve on the silicone’s<br />

performance.<br />

Marine organisms stick to a vessel’s hull by<br />

secreting an adhesive that is either<br />

hydrophobic or hydrophilic. Intersleek 900 is<br />

a patented fluoropolymer foul release coating,<br />

which presents the organisms with an<br />

amphiphilic surface, combining hydrophilic<br />

and hydrophobic properties in order to<br />

minimise the chemical electrostatic adhesion<br />

between the surface and the fouling organism,<br />

whether the adhesive is hydrophobic or<br />

hydrophilic.<br />

Better foul release<br />

This technology confers overall 40% better<br />

foul release properties than its silicone-based<br />

predecessors and a 50% reduction in slime<br />

build up, IP claimed. It also produces<br />

unprecedented levels of average hull<br />

roughness of 72 microns, which gives a 38%<br />

improvement in the friction coefficient over<br />

Intersleek 700. IP said that the ultra-smooth<br />

hull produced by the new coating reduces<br />

water resistance, cutting fuel consumption and<br />

emissions.<br />

What this means is that the new technology<br />

is now available to slower speed vessels,<br />

including tankers, whereas the previous<br />

coatings generation were only applicable to<br />

vessels moving at a higher speed. For<br />

example, vessels steaming at 10 knots can<br />

now take advantage of the new coating.<br />

<strong>Tanker</strong>s often trade in the spot market and<br />

may have periods of idleness while awaiting a<br />

charter, or to load/discharge. IP claimed that<br />

Intersleek 900’s static fouling resistance in<br />

port is some 80% better than its predecessor.<br />

Depending on the application and the inservice<br />

conditions, fuel and emission savings<br />

recouped using the new coating were<br />

originally forecast to be 6%, compared with<br />

self-polishing copolymers containing biocides,<br />

according to IP.<br />

The paint manufacturer estimated that over<br />

a five year period, a VLCC coated with a selfpolishing<br />

copolymer anti-fouling could reap<br />

savings of 9,000 tonnes of fuel if coated with<br />

Intersleek 900, thus reducing its CO2<br />

emissions by 31,000 tonnes and saving around<br />

$3.6 mill.<br />

In-service experience with a range of<br />

vessels has shown savings of up to 9%, which<br />

is considerably higher than IP’s original<br />

forecasts.<br />

<strong>Tanker</strong> applications<br />

Among the testimonials from shipowners were<br />

comments from Mumbai-based Mercator<br />

Lines. The company specified Intersleek 900<br />

to the underwater hull area of the Aframax<br />

Prem Pride in October 2007, while<br />

undergoing drydocking in Dubai. Mercator<br />

also specified the coating of a larger hull area<br />

on her near sister Prem Divya in June 2008.<br />

Mercator’s general manager Amit Agarwal<br />

explained; “We continued to closely monitor<br />

the performance of both vessels in service. In<br />

2008, we achieved up to 6% fuel savings on<br />

Prem Pride using Intersleek 900. This year<br />

(2009), with even more data, we can confirm<br />

that the fuel and emission savings have been<br />

maintained on this vessel.<br />

“While we continue to be happy with the<br />

performance of Intersleek 900 on Prem Pride,<br />

we fully expect an improvement on Prem<br />

Divya, as we had increased the areas of the<br />

underwater hull coated to include the flat<br />

bottom. The detailed monitoring of the<br />

performance of the Prem Divya has confirmed<br />

that we are now achieving up to 9% reduction<br />

in fuel consumption under comparable<br />

conditions,” he concluded.<br />

Mumbai-based Mercator Lines chose<br />

Intersleek 900 for the 105,000 dwt Prem<br />

Divya just nine months after Prem Pride had<br />

her vertical sides coated with IP’s latest<br />

generation patented fluoropolymer at Dubai<br />

Drydocks World.<br />

However, the second coating involved the<br />

entire underwater area of the 1998-built vessel<br />

during the tanker’s second special survey<br />

hull upgrade.<br />

“We had monitored the Prem Pride’s fuel<br />

consumption closely,” explained Agarwal at<br />

the time. “At corresponding engine speeds, the<br />

vessel was consuming up to 6% less fuel,<br />

depending on weather conditions, after the<br />

application of Intersleek 900. We originally<br />

calculated projected savings based on a<br />

bunker price of $450 and found we were<br />

saving nearly three tonnes of fuel a day. And<br />

while bunker prices continue to climb, our<br />

payback period just gets shorter. The added<br />

advantages of no biocides, reduced<br />

drydocking times and lower CO2 emissions<br />

convinced us that this is the technology<br />

we need”.<br />

Prior to investing in Intersleek 900<br />

technology, Mercator had undertaken a<br />

detailed cost benefit analysis, taking<br />

references from owners who had already<br />

adopted the new hull coating. The process<br />

involved calculating the savings generated by<br />

easier through-life hull coatings management<br />

including a smaller volume of paint required<br />

at subsequent dockings, an improvement<br />

in environmental footprint and fuel<br />

consumption savings.<br />

Fuel savings of this magnitude add up to an<br />

environmental benefit equivalent to almost<br />

11,000 tonnes of CO2 emitted, 100 tonnes less<br />

SOx and 200 tonnes less of NOx.<br />

As at October last year, more than 250<br />

vessels had been coated with Intersleek 900,<br />

including prestigious cruise vessels, such as<br />

34<br />

TANKER<strong>Operator</strong> January/February 2010


TECHNOLOGY - PROTECTIVE COATINGS<br />

Intergard 787 being applied on the outside shell of a newbuilding.<br />

Queen Mary 2. Along with its predecessors,<br />

the new coating has picked up several awards<br />

along the way.<br />

Universal primer range<br />

IP has recently unveiled a new range of<br />

universal primers for the newbuilding market.<br />

The company said that is being introduced to<br />

address the productivity, regulatory,<br />

performance and commercial needs of<br />

shipyards and shipowners alike – worldwide.<br />

Shipbuilders and owners can now better<br />

choose how they meet productivity and<br />

performance targets and comply with the<br />

IMO’s Performance Standard for Protective<br />

Coatings (PSPC) and new regional regulations<br />

limiting Volatile Organic Compound (VOC)<br />

emissions, such as the EU’s Solvents<br />

Emissions Directive, IP claimed.<br />

While newbuilding yards all have different<br />

construction methods, build different vessels,<br />

are exposed to seasonal fluctuations in<br />

climatic conditions and are subject to global<br />

and local regulation, the new range of<br />

universal primers offers shipyards worldwide<br />

customised products to meet those different<br />

needs, the company said.<br />

For the newbuilding yard, the product range<br />

offers universal application, high volume<br />

solids with low VOC, year round workability<br />

with fast drying, low temperature cure and<br />

long overcoating intervals.<br />

For the shipowner, the range provides long<br />

term asset protection with controlled through<br />

life maintenance costs, high performance<br />

corrosion and abrasion resistance and PSPC<br />

compliance.<br />

Leading the range is Intershield® 300. With<br />

a proven, 21-year track record on over 9,000<br />

vessels, Intershield 300 is the industry<br />

benchmark in IMO PSPC compliant anticorrosive<br />

performance, claimed IP. This<br />

abrasion resistant, (>9%) aluminium pure<br />

epoxy coating can be applied to multiple<br />

vessel areas over mechanically prepared shop<br />

primer and offers long term asset protection<br />

and control of through life maintenance costs<br />

and is available worldwide.<br />

New Intershield® 300HS, is a high solids<br />

version of the original technology, which<br />

offers 78% volume solids, lower VOC and<br />

application direct from the can without<br />

thinning. With the aluminium content<br />

maintained >9%, Intershield® 300HS will<br />

continue to deliver the same corrosion control<br />

as the earlier version. It is currently available<br />

in the EMEA range and will be available<br />

worldwide from mid-2010.<br />

Another primer is new Intergard® 7600,<br />

which is a light coloured, pure epoxy universal<br />

primer providing good abrasion resistance. IP<br />

said that it offered excellent application<br />

properties, low temperature workability and<br />

true long term overcoating intervals with no<br />

requirement for surface roughening.<br />

Also available is Intergard® 787, which is a<br />

high, 80% volume solids light coloured<br />

aluminium pure epoxy coating with good<br />

corrosion protection and abrasion resistance.<br />

Intergard® 787 can help meet the<br />

environmental challenge on VOC emissions<br />

and has an excellent track record on South<br />

Korean newbuildings. It is currently available<br />

in that country.<br />

New Intergard® 5600 and Intergard® 5620<br />

complete the range. These light coloured,<br />

epoxy universal primers have evolved from<br />

Intergard® 403 and Intergard® 423<br />

technology. These products have excellent<br />

sprayability all year round and have proven<br />

long term anti-corrosive performance with an<br />

extensive track record, IP said.<br />

TO<br />

*Fuel Economy Due to Improvements in<br />

Ships’ Hull Surface Condition 1976-86<br />

by RL Townsin, D Byrne, TE Svensen<br />

and A Milne.<br />

• Custom built and series product<br />

• Technically reliable<br />

• Well proven designs<br />

• Continuous technical development<br />

• Dependable partner<br />

• Customer oriented approach<br />

DAMEN DOUBLE HULL OIL TANKER MTS ‘SHANNON FISHER’<br />

STANDARD OF EXCELLENCE<br />

DAMEN SHIPYARDS BERGUM<br />

Member of the DAMEN SHIPYARDS GROUP<br />

<br />

CUSTOM BUILT IN SERIES PRODUCTION<br />

P.O. Box 7 phone +31 (0)511 46 72 22 info@damen-bergum.nl<br />

9250 AA Bergu m<br />

fax +31 (0)511 46 42 59 www.damen-bergum.nl<br />

The Netherlands<br />

January/February 2010 TANKER<strong>Operator</strong> 35


TECHNOLOGY - PROTECTIVE COATINGS<br />

Hempel ‘guarantees’<br />

fuel savings<br />

Leading Danish marine coatings specialist Hempel has introduced<br />

a third generation coating, a new universal primer and is chairing<br />

a joint working group on the IMO PSPC regulation. Two more products<br />

are also to be launched later this year, which are being kept under wraps.<br />

Since the introduction of the third<br />

generation hull coating, the<br />

patented Hempasil X3, in<br />

November 2008, it has been<br />

applied top the hulls of various vessel types,<br />

including chemical tankers, product tankers<br />

and VLCCs.<br />

The third generation Hempasil coating was<br />

the product of exhaustive towing tank studies<br />

conducted by FORCE Technology, combined<br />

with over five years of static raft and dynamic<br />

rotor testing. For the static raft tests, in-water<br />

plates were installed in the Mediterranean and<br />

Singapore for the same length of time.<br />

The research has proved that Hempasil X3<br />

delivers significant fuel savings for all vessel<br />

categories. “The picture is clear,” said Torben<br />

Rasmussen, group product manager for<br />

Hempasil X3. “We’ve confirmed fuel savings<br />

of more than 8% for several ship types with<br />

different hull designs, wetted areas and<br />

operation pattern.”<br />

Hempel said that it was so confident in the<br />

new coating’s fuel-saving capabilities, that as<br />

part of the package, a 4%-8% reduction in<br />

first-year fuel consumption is guaranteed.<br />

In developing Hempasil X3, the Danish<br />

paint manufacturer said that the improvement<br />

of fuel efficiency was its top priority. This has<br />

been achieved thanks to a very low skin<br />

friction and a prolongation of the fouling-free<br />

period, even at speeds as low as eight knots,<br />

the company claimed. Hempel said that If all<br />

the world’s fleet was able to reduce fuel<br />

consumption by 8%, it would reduce the<br />

industry’s carbon footprint by some 80 mill<br />

tonnes per year. Another example given was<br />

that if 22% of the fleet was coated, a fuel<br />

saving of $1.5 bill per year could be achieved<br />

amounting to 10 mill tones of CO2 per year.<br />

For a VLCC the cost of coating Hempasil<br />

X3 would be $1.135 mill – much higher than<br />

say Globic NCT. But when the vessel is<br />

operating for 60 months at 75% activity<br />

burning 75 tonnes of fuel per day at $450 per<br />

tonne and given a fuel saving of 4%, the sums<br />

add up to an estimated overall fuel saving of<br />

$1.848 mill, while the difference in paint costs<br />

amounts to $822,800 higher. The use of the<br />

software –SeaTrend - costs an extra Eur2,000<br />

per year, Hempel explained.<br />

Hempasil X3 is described as a complete<br />

efficiency solution that also includes the fuel<br />

savings guarantee and SeaTrend, an advanced<br />

software tool for measuring performance and<br />

efficiency. SeaTrend was developed by<br />

FORCE Technology to help improve voyage<br />

efficiency by assessing hull and propeller<br />

performance.<br />

Hempasil X3 is Hempel’s third-generation<br />

fouling release coating system manufactured<br />

with a high solids content. It is based on<br />

silicone, is biocide free and cures following<br />

the addition of Hempasil Crosslinker 98950.<br />

It uses hydrogel technology to stop fouling<br />

organisms (from biological slime and<br />

seaweed to barnacles) from attaching to a<br />

ship’s hull. The hydrogel micro layer fools<br />

the organisms into thinking the ship’s hull is<br />

Exhaustive towing<br />

tests on a VLCC hull<br />

were carried out by<br />

FORCE Technology.<br />

36<br />

TANKER<strong>Operator</strong> January/February 2010


THE ULTIMATE PROTECTION<br />

Superior tank coatings for the widest possible<br />

range of liquid cargoes<br />

“Our phenolic epoxy HEMPADUR 15500 has more than fifteen years track record with excellent<br />

global performance and is rated the best phenolic epoxy tank coating in the market today. In Korea<br />

we have coated the tanks of more than 100 vessels with this product without a single claim.’’<br />

Michael Aamodt, Group Marine Product Manager<br />

For more information please visit: www.hempel.dk


TECHNOLOGY - PROTECTIVE COATINGS<br />

liquid, essentially rendering the hull invisible<br />

so they don’t attach. This keeps the hull<br />

smooth and reduces drag in the water. The<br />

silicone polymers facilitate the self-cleaning<br />

properties.<br />

As a result, Hempel said that it could<br />

guarantee fuel savings of between 4% and 8%<br />

in the first year of operation, depending on the<br />

vessel type. To enable shipowners/operators to<br />

measure the fuel-saving effects for<br />

themselves, Hempel supplies SeaTrend<br />

software as standard with Hempasil X3, the<br />

company said.<br />

Hempel has also produced a fuel<br />

saving/CO2 calculator. The performance<br />

monitoring prior to the coating’s application<br />

forms the fuel consumption baseline used as a<br />

reference. SeaTrend, or similar recognised<br />

monitoring tools, secures online monitoring -<br />

also after application of Hempasil X3.<br />

Extensive towing tank studies with both<br />

conventional antifoulings and Hempasil form<br />

the basis for the percentage fuel savings<br />

guarantee. As an example, Hempel said that<br />

8% savings were guaranteed for a VLCC for<br />

the first year out of dock.<br />

The technology<br />

Based on hydrogel silicone, Hempasil X3 is<br />

designed for use when vessel speeds go<br />

down to eight knots and operating at low<br />

activity, as well as at normal service speeds.<br />

The hydrogel is made up of a network of<br />

water-insoluble, super-absorbent polymer<br />

chains. These form a microlayer between the<br />

solid silicone and the seawater. Due to the<br />

high water content, the hydrogel appears as<br />

liquid to fouling organisms, making the<br />

hull ‘invisible’.<br />

The unique silicon polymers form a<br />

hydrogel microlayer between the paint surface<br />

and the seawater, resulting in enhanced<br />

antifouling capability and improved selfcleaning<br />

potential, Hempel said.<br />

In addition, SeaTrend provides a raft of<br />

operational data, allowing fuel consumption<br />

and the optimisation of overall efficiency to<br />

be tracked. Working in harmony, SeaTrend<br />

and Hempasil X3 form the industry’s most<br />

advanced fouling release system, which,<br />

Hempel explained, was why the company<br />

could offer such a guarantee.<br />

On some ship types, the coating will still be<br />

effective some 90 months after it was applied,<br />

Hempel claimed.<br />

As with previous Hempasil generations, X3<br />

utilises the paint manufacturer’s patented<br />

NEXUS tie-coat to ensure maximum possible<br />

adhesion between the anticorrosive base<br />

epoxy and the non-stick top layer.<br />

One of the reasons for pushing for a 90-<br />

month lifespan was that three to four flag<br />

states, including Denmark, Singapore and the<br />

UK, have asked for a system that could last<br />

through a 7.5 year drydocking schedule.<br />

Among the tanker companys that have<br />

embraced the technology are Vela, Associated<br />

Maritime, PdV Marina, Chemmariner, Varkan<br />

Shipping among others.<br />

PdV Marina’s MR Manuela Saenz has been coated with Hempasil X3.<br />

Universal primer<br />

Last year, Hempel introduced a new universal<br />

primer - Hempadur Quattro. It was the first<br />

anticorrosive coating in a new epoxy<br />

category- universal epoxy.<br />

Officially launched on 2nd April 2009,<br />

Hempadur Quattro is suitable for a wide range<br />

of surfaces and offers a year-round application<br />

window. It has been type-approved in<br />

accordance with IMO/PSPC rules for ballast<br />

tank, which call for 15-year protection.<br />

It has been developed with a high solid<br />

content that covers more square metres per<br />

litre than standard coatings and has a better<br />

anticorrosive performance, Hempel claimed. It<br />

can be applied to almost any surface, greatly<br />

simplifying the specifications and thus<br />

reducing costs, on large coating projects.<br />

Kim Scheibel, Hempel’s commercial project<br />

manager said: “With Hempadur Quattro,<br />

we’ve developed a coating that has many<br />

applications and uses. It offers better<br />

protection from corrosion than its<br />

predecessors and offers value for money and a<br />

good return on investment for customers.”<br />

Suitable for application 365 days a year,<br />

Hempel’s fourth-generation universal primer<br />

solution has already been field-tested in South<br />

Korea. Results showed that it can be applied<br />

in temperatures from + 40 deg C to -10 deg C<br />

and this wide range means it can be applied at<br />

any time of the year almost anywhere in the<br />

world. It also protects an extensive range of<br />

surfaces and structures, from ballast tanks and<br />

38<br />

TANKER<strong>Operator</strong> January/February 2010


TECHNOLOGY - PROTECTIVE COATINGS<br />

underwater hulls on vessels to offshore oil<br />

platforms and other structures.<br />

This combination of year-round application<br />

and universal coating can save customers<br />

time and money on anticorrosive protection.<br />

For example, coating a ship’s hull with a<br />

Hempadur Quattro specification instead of a<br />

standard coating mix can decrease<br />

application time by 24 hours at 0 deg C, the<br />

company said.<br />

Meeting ISO/PSPC regulations<br />

The new IMO/PSPC rules call for 15-year<br />

protection, which Hempel claimed its new<br />

coating could meet. It also has a high solid<br />

content, so applying it to many areas of a<br />

structure or vessel limits the amount of<br />

volatile organic compounds (VOCs) released<br />

into the environment.<br />

Using Hempadur Quattro instead of a<br />

standard coating mix on the 250,000 sq m<br />

ballast tanks of a large crude oil tanker, for<br />

example, can reduce VOCs by at least four<br />

tonnes, the paint manufacturer claimed.<br />

Hempel is heavily involved with the<br />

International Paint and Printing Ink Council<br />

(IPPIC), which set up a PSPC working group<br />

in April 2008. IPPIC achieved official NGO<br />

status at the IMO in 2007 to represent the<br />

coatings manufacturers.<br />

In July 2008, this ballast tank standard<br />

(PSPC) entered into force, which had a major<br />

impact on the coatings industry, Hempel said.<br />

The manufacturers claimed that the<br />

requirements were ambiguous and needed<br />

detailed guidelines for proper interpretation.<br />

The test protocol was also deemed<br />

ambiguous and the type approval became a<br />

cumbersome process.<br />

As for the tanker industry, the corrosion in<br />

cargo tanks had been studied down the years.<br />

A recent example was a report from the<br />

European Maritime Safety Agency (EMSA);<br />

Double Hull <strong>Tanker</strong>s; High Level of Experts<br />

Report in 2005. This was issued following the<br />

Erika and Prestige disasters.<br />

EMSA’s report drew the conclusion that –<br />

‘One of the most effective means for<br />

preventing corrosion is to protect the hull<br />

structure with an efficient coating system.’ It<br />

recommended that coatings should be<br />

provided for the underdeck and bottom areas<br />

of the cargo tanks and the establishment of a<br />

standard for coatings.<br />

Since then, a draft test protocol has been<br />

produced by the industry joint working group<br />

for cargo tanks, which was established in<br />

2006. The tests were presented to the joint<br />

working group in October 2008 where it was<br />

decided that further development work was<br />

Hempel is offering a guarantee with its new coating, which varies according to the ship type.<br />

required. At the DE 52 meeting held in<br />

February 2009, it was decided that the IPPIC<br />

initiative would lead the development and a<br />

correspondence group was established.<br />

The chairman of the IPPIC PSPC working<br />

group, Hempel’s Ole Borring Soerensen<br />

explained that since the DE 52 meeting, three<br />

joint working groups were formed to establish<br />

a proper basis for the COT test protocol.<br />

Extensive tests were carried out on coatings,<br />

surface preparations and laboratories to verify<br />

the test protocol. Feedback was also obtained<br />

from vessels in service.<br />

These initiatives were possible due to the<br />

contributions of all members of the working<br />

groups including class societies, shipowners<br />

(Intertanko and ICS), shipyards (CESS),<br />

coating laboratories in Europe, Japan and<br />

China, plus the IPPIC members themselves,<br />

Soerensen said.<br />

IPPIC has taken over as the driving force of<br />

these initiatives and a test protocol for<br />

coatings has been drafted, which will be<br />

discussed by the correspondence group.<br />

Soerensen explained that there were<br />

discrepancies, especially with regards to the<br />

combination of test temperature and the<br />

composition of the model oil, which needed to<br />

be resolved.<br />

The next DE meeting (DE 53) is scheduled<br />

for this February and it will be discussed at<br />

the IMO MSC meetings scheduled for May<br />

and October this year. The October meeting is<br />

expected to adopt a performance standard for<br />

all tankers above 5,000 dwt. “We need to have<br />

a method to qualify the coating – a<br />

performance standard,” Soerensen said. He<br />

explained that the working groups were<br />

working with a model liquid based upon a<br />

defined oil.<br />

Meanwhile, in May of this year, Hempel is<br />

to move its manufacturing plant from<br />

Denmark to Poland. However, the research<br />

and development and some of the other<br />

functions will remain just outside<br />

Copenhagen.<br />

TO<br />

January/February 2010 TANKER<strong>Operator</strong> 39


TECHNOLOGY - PROTECTIVE COATINGS<br />

Jotun wins significant<br />

contracts<br />

Teekay has selected Jotun antifoulings for vessels trading in Brazilian waters<br />

where the formation of fouling was said to be extreme.<br />

SeaQuantum was chosen for the<br />

tankers’ vertical sides and duplex<br />

system while for the vessel’s flat<br />

bottom area, SeaMate and<br />

SeaQuantum, were applied.<br />

Although Jotun has been one of the two<br />

main coatings suppliers for Teekay for many<br />

years, the Aframax shuttle tanker avion<br />

Marita was originally coated with a main<br />

competitor’s antifouling, which resulted in<br />

several underwater cleanings with a high risk<br />

of speed penalties.<br />

Vessels using SeaQuantum, usually show<br />

clean underwater hulls with no speed loss in<br />

similar conditions, Jotun claimed.<br />

Frequent port of calls on short voyages, and<br />

a high amount of idle/low speed operations in<br />

hot tropical waters are challenging. In<br />

addition, a lot of ports in Brazil contain<br />

contaminated and greasy waters. This calls for<br />

the use of the best selfpolishing and selfcleaning<br />

antifouling system, the coatings<br />

manufacturer said.<br />

Although fuel savings may not always be<br />

on top of the agenda, any operator or investor<br />

needs to consider the amount of CO2<br />

emissions and the loss of speed due to the<br />

drag from fouling. In addition, the future<br />

drydock cost savings are enormous as a clean<br />

hull is achieved with only a wash and the<br />

repair of minor corrosion spots.<br />

The alternative would be 40-100% full blast<br />

refurbishment, due to the high amount of<br />

fouling. By not coating with a suitable tailor<br />

made antifouling system, but rather applying<br />

the cheapest on the market, will result in<br />

down time loss and extra materials needed to<br />

be purchased and applied.<br />

avion Marita was drydocked in Malaysia,<br />

where Jotun’s coating advisors supervised the<br />

operation at the yard.<br />

Elsewhere, last year, Jotun Turkey signed<br />

40<br />

its largest newbuilding contract thus far.<br />

The contract was for the supply of coatings<br />

for 10 newbuilds, which will be delivered to<br />

the Palmali Shipping Group.<br />

Palmali had signed a large contract for<br />

10 x 7,000 dwt chemical tankers with Besiktas<br />

Shipyard. Jotun Turkey won the paint contract<br />

and is sole supplier for the entire project.<br />

“Since the newbuilding market is<br />

dramatically decreasing due to the global<br />

financial crisis, we are satisfied that we have<br />

secured the biggest active project in Turkey”,<br />

commented managing director Sukru Ergun<br />

for Jotun Coatings in Turkey.<br />

SeaMate launch<br />

SeaMate was officially launched in November<br />

2008 and is a self- smoothing and selfpolishing<br />

hydrolysis antifouling based on silyl<br />

acrylate technology.<br />

It is a TBT- free antifouling in full<br />

compliance with the IMO rules for vessels,<br />

which was fully enforced on 1st January,<br />

2008. This antifouling enables vessels sailing<br />

between 12-26 knots to significantly reduce<br />

fuel consumption and carbon emissions over<br />

time, Jotun claimed .<br />

According to Geir Boe, divisional vice<br />

president for Jotun Marine Coatings, SeaMate<br />

fills an important gap in the company's well<br />

known brands SeaForce and SeaQuantum.<br />

Speaking at the launch, Boe said: "While<br />

sharing many of the benefits of our leading<br />

brand SeaQuantum - launched as the first TBT<br />

free, self-smoothing and self-polishing<br />

antifouling in year 2000 - SeaMate is a more<br />

affordable alternative. We are confident<br />

SeaMate will meet the market demand,<br />

especially in the tanker and bulker segments."<br />

For shipowners concerned about rising<br />

drydocking costs, SeaMate can be applied in<br />

two coats only for most vessel types for 60<br />

...any operator or investor needs to consider<br />

the amount of CO2 emissions and the loss<br />

of speed due to the drag from fouling<br />

“<br />

”<br />

Jotun Coatings Turkey’s managing director<br />

Sukru Ergun.<br />

months of antifouling protection. The unique<br />

properties of SeaMate based on silyl acrylate<br />

technology gives excellent technical qualities,<br />

enabling rapid drying and reducing both<br />

application and materials costs, Jotun said. It<br />

also gives a hard finish offering protection<br />

against mechanical damage.<br />

The same silyl acrylate technology that was<br />

used in SeaQuantum was introduced in<br />

SeaMate, and this technology has proved to be<br />

able to reduce the build up of leached layers<br />

compared to ion-exchange technology normally<br />

used in other self-polishing antifoulings.<br />

All antifoulings release biocides resulting in<br />

the formation of a leached layer. However, by<br />

maintaining a low leached layer and a linear<br />

polishing pattern for the full 60 months<br />

period, SeaMate delivers a constant release of<br />

the biocides. This gives long lasting protection<br />

against fouling.<br />

SeaMate is a true hydrolysis antifouling<br />

product that uses second generation copper<br />

biocides giving the product an<br />

environmentally sustainable profile. "Now that<br />

we have added SeaMate to our product<br />

portfolio of antifouling solutions, we believe<br />

Jotun can offer one of the most<br />

comprehensive selections of quality TBT free<br />

antifoulings in the industry," said Boe. TO<br />

TANKER<strong>Operator</strong> January/February 2010


TECHNOLOGY - TANK GAUGING<br />

Vessels benefit from<br />

intelligent sensors<br />

As elsewhere in life the move to digital technology is evident in many aspects<br />

of ship operation today, but one area that has been slow to take the step forward<br />

is tank gauging and data acquisition systems*.<br />

From a cost perspective the<br />

predominant technology employed<br />

for level measurement of ballast,<br />

service, and bunker tanks is still the<br />

hydrostatic head or pressure principle. The<br />

most basic of this technology is the direct<br />

“bubbler” or air reactive gauge but since on<br />

most modern vessels it is essential that data is<br />

in electronic format the direct electronic<br />

sensor with a 4-20mA analogue signal is<br />

probably the most cost effective and certainly<br />

the most flexible to install.<br />

The past argument that a directly installed<br />

sensor could be less reliable is certainly not<br />

true today. Mechanically, many quality marine<br />

sensors have been specifically developed to<br />

withstand the rigours and corrosive aspects of<br />

these applications. Electrically, too, correct<br />

design considerations ensure their<br />

performance and reliability is not<br />

compromised by thermal and other adverse<br />

affects imparted by the duty.<br />

Meeting all the above criteria and ensuring<br />

compliance with intrinsic safety parameters<br />

has in the past only been practical using<br />

analogue electronic circuits and clearly<br />

millions of such sensors have been installed<br />

on board ships of all type. That all sounds<br />

well and good - however, that is where the<br />

development has remained for many years<br />

now and as with most things in life and at sea,<br />

there is an increasing downside.<br />

In a conventional arrangement each<br />

transmitter requires its own cabling which<br />

runs from the point of measurement to the<br />

point of display. Some systems have adopted<br />

marshalling arrangements where sensor<br />

cabling is routed to one or more instrument<br />

cabinets, which convert the 4-20mA signal to<br />

a digital format for onward transmission, but<br />

these provide only a half-way solution and<br />

conversion errors compromise on the accuracy<br />

of the overall measurement. The downside is<br />

that although the cost of sensors has gradually<br />

reduced as demand increases, there is a<br />

greatly increased cost of cable and skilled<br />

labour to install and commission these<br />

systems. In many larger systems the cost of<br />

installation can exceed the cost of the system<br />

components.<br />

PSM has designed and manufactured<br />

electronic marine and naval sensors for over<br />

30 years and has continuous experience of<br />

supplying sensors to these applications, both<br />

directly and, through a number of specialist<br />

system integrators.<br />

Having now undertaken more than two<br />

years of shipboard trials on board both Royal<br />

Navy platforms and commercial vessels, the<br />

company confidently releasing ther Intelligent<br />

Ceramic Transmitter (iCT) and associated<br />

system products. The iCT is type approved<br />

and ATEX certified and for the first time<br />

enables the full implementation of a digital<br />

tank gauging system. It is arguably the most<br />

advanced sensor system available for the task<br />

and when one reviews advantages and<br />

features, it is clear to see there should be<br />

significant benefits to be derived by all parties<br />

- eg the shipyard, system installer and the<br />

operator. For cabling, PSM calculated that<br />

over 70% of the cost of cable and installation<br />

components (cable trays, trunking, JBs,<br />

penetrators etc) can be saved on an average<br />

system.<br />

In detail, the iCT measures tank level<br />

hydrostatically using an ultra stable ceramic<br />

capacitance cell. It contains an embedded<br />

microprocessor that processes the level<br />

measurement locally to provide a direct digital<br />

output. The output format employs industry<br />

standard MODBUS protocol for universal<br />

compatibility transmitting onto a robust and<br />

proven RS485 standard.<br />

January/February 2010 TANKER<strong>Operator</strong> 41


TECHNOLOGY - TANK GAUGING<br />

JB JB JB JB JB JB JB<br />

JB<br />

DRAFT<br />

Compared to a conventional analogue<br />

signal, which just represents the pressure<br />

measured, the data output may be scaled<br />

directly within the iCT sensor for tank<br />

sounding tables, sensor offsets, and product<br />

specific gravity, greatly simplifying the<br />

processing needed at the display end.<br />

In addition iCT incorporates a temperature<br />

sensor as a standard feature so that tank<br />

temperature is also available.<br />

All parameters are held in non-volatile<br />

memory and remotely accessible/editable from<br />

a standard laptop PC.<br />

In practice, this new technology gives clear<br />

benefits to both the shipyard when installing<br />

and commissioning the system, and to the<br />

shipowner when the equipment is in service.<br />

Benefits<br />

Being addressable over RS485 and with each<br />

transmitter having its own unique identification<br />

number enables a multi-drop connection<br />

Conventional Analogue System<br />

Each sensor needs a cable and barrier<br />

JB JB JB JB JB JB JB JB JB JB<br />

DB<br />

JB<br />

JB<br />

JB<br />

DRAFT<br />

JB<br />

JB DB<br />

JB JB JB JB<br />

WING<br />

WING<br />

WING<br />

JB<br />

HFO<br />

JB JB JB JB JB<br />

JB<br />

JB<br />

JB<br />

DB<br />

DB<br />

DRAFT<br />

JB<br />

JB DB<br />

JB<br />

MDO<br />

Multiple<br />

A to D<br />

conversion<br />

Multiple Barriers<br />

LUB HFO<br />

JB<br />

WING<br />

Cargo tanks not shown<br />

WING<br />

The old analogue system required a lot of cabling.<br />

JB<br />

DB<br />

JB<br />

WING<br />

JB JB JB JB<br />

WING<br />

DB JB<br />

JB<br />

JB<br />

WING<br />

JB<br />

DB<br />

arrangement where, all transmitters can share<br />

the same power and communications cables.<br />

The iCT is supported by a range of purpose<br />

developed termination boxes, which ensure<br />

simple network construction.<br />

As mentioned above, nowadays the cost of<br />

installing and commissioning a gauging<br />

system can easily exceed the cost of the<br />

equipment itself. For example, the use of a<br />

multi-drop arrangement could typically show<br />

savings on a containership of 15,000 m of<br />

JB<br />

JB<br />

JB<br />

TRIM<br />

Junction Box<br />

Transmitters<br />

2 core 4-20mA cable<br />

JB JB<br />

JB<br />

JB<br />

FPK<br />

DRAFT<br />

cable. The time taken to lay that amount of<br />

cable varies with the complexity of the vessel<br />

type, but the time, cost and weight saving<br />

benefits are immediately apparent.<br />

The iCT transmitter operates with<br />

significantly lower power requirements than a<br />

conventional analogue transmitter. This again<br />

shows cost benefits when considering<br />

applications where the installation must be<br />

undertaken to intrinsically safe standards. iCT<br />

carries ATEX approval for use in hazardous<br />

zones but like all other intrinsically safe<br />

equipment, it must be protected by a suitable<br />

energy limiting barrier or isolator located in<br />

the safe area. Unlike all other level equipment,<br />

it can be protected by a purpose developed<br />

and ATEX approved PSM barrier.<br />

While a conventional installation with<br />

analogue transmitters will require a barrier<br />

for each and every instrument, the low power<br />

requirement of the iCT means that one single<br />

barrier can be used to provide protection for<br />

a single RS485 loop containing up to 127<br />

iCT transmitters.<br />

When it is considered that iCT can also<br />

provide temperature measurement, the<br />

installation time and hardware cost savings are<br />

fully apparent.<br />

Once a system is installed the<br />

commissioning stage is also greatly<br />

simplified. All transmitters are remotely<br />

addressable by connecting a laptop pc at any<br />

...nowadays the cost of installing and<br />

commissioning a gauging system can easily<br />

exceed the cost of the equipment itself.<br />

“<br />

”<br />

Need good cargo tank levels?<br />

We are upgrading tankers with new equipment<br />

- for better performance and easier operation<br />

Learn more about our cargo tank level radar and recent retrofits at<br />

www.krohne-skarpenord.com<br />

42<br />

TANKER<strong>Operator</strong> January/February 2010


TECHNOLOGY - TANK GAUGING<br />

JB<br />

DRAFT<br />

JB<br />

MDO<br />

Single Barrier Module<br />

Direct Digital Output<br />

JB<br />

HFO<br />

DB<br />

JB<br />

WING<br />

WING<br />

JB<br />

DB<br />

DRAFT<br />

DRAFT<br />

WING<br />

JB JB JB<br />

DB<br />

DB<br />

DB<br />

DB<br />

WING<br />

WING<br />

DB<br />

JB<br />

WING<br />

WING<br />

JB<br />

WING<br />

DB<br />

JB<br />

Transmitters<br />

Power & comms<br />

JB JB JB JB JB JB JB JB JB JB JB JB JB<br />

LUB<br />

HFO<br />

The digital system is a lot less convoluted.<br />

Digital System<br />

One barrier and cable loop for all sensors<br />

Cargo tanks not shown<br />

JB<br />

JB<br />

TRIM<br />

Junction Box<br />

JB<br />

FPK<br />

DRAFT<br />

typically require more operational power and<br />

so where intrinsically safe compliance is<br />

needed, fewer can be included per data loop.<br />

However, they can still be protected using the<br />

same PSM safety barrier design and PSM<br />

supply conversion modules to take their<br />

output signal and convert it to the required<br />

Modbus protocol.<br />

This leads to a cargo gauging system with<br />

far fewer deck components and a much<br />

simplified installation, especially beneficial<br />

for refit of existing tankers and products<br />

carriers.<br />

The receiving display system communicates<br />

directly with the RS485 network automatically<br />

polling each sensor. With information received<br />

a full graphical display is provided with<br />

repeaters as required and outputs to other<br />

shipboard systems such as loading computers.<br />

point in the data loop and using configuration<br />

software included with the iCT they can be<br />

programmed to suit the specific application.<br />

This extends to resetting the calibrated<br />

range and zero offsets, a task that, on a<br />

conventional transmitter would require access<br />

to the tank/transmitter and the physical<br />

application of pressure using a test set. With<br />

iCT no such access is needed and calibration<br />

can be set or changed even when the tank is<br />

full of liquid. With conventional transmitters,<br />

each one has to be factory set for its intended<br />

duty, if a transmitter is installed in the wrong<br />

tank, the refitting with the extra cost involved<br />

is unavoidable. With iCT this is not an issue,<br />

it can simply be reprogrammed to suit.<br />

The benefits of a multi-drop remotely<br />

addressable are applicable across vessels of all<br />

sizes and for both newbuilds and retrofits.<br />

In an example of where the iCT’s attributes<br />

have been of direct benefit to an owners<br />

business, PSM has recently equipped a series<br />

of trawlers where, accurate digital data from<br />

each sensor now provides a time stamped<br />

record of the tank levels, volume and<br />

temperature of fish caught for the entire<br />

duration of the voyage. This real-time<br />

information of storage conditions provides a<br />

traceable quality of the fish. Being able to<br />

provide this quality assurance means that fish<br />

can be pre-sold at the best prices long before<br />

the vessel returns to port.<br />

PSM has refitted the fuel and ballast tank<br />

management system on board the UK Royal<br />

Navy’s HMS Ocean. The new system gathers<br />

level/volume data of all service, operational<br />

and aircraft fuel tanks on a common data<br />

highway. Displays are distributed at<br />

operating stations along this network bus,<br />

greatly improving the platform’s entire fuel<br />

management.<br />

<strong>Tanker</strong>s<br />

For tanker cargo systems, other devices, such<br />

as radar gauges, can be added onto the<br />

RS485/Modbus data loop. These devices<br />

Operational benefits<br />

When in operation, the shipowner benefits<br />

from the enhanced reliability and stability<br />

digital electronics provide and ease of system<br />

maintenance. Spare transmitters may be<br />

carried unconfigured and should a<br />

replacement be required it can be programmed<br />

on board using a simple utility, which runs on<br />

the central display and downloads the<br />

configuration for the intended duty from a<br />

back up library provided as part of the system.<br />

No specialist knowledge or calibration tools<br />

are needed. All other system components are<br />

simple plug in replacements with no set-up or<br />

calibration needs.<br />

Complimenting the iCT intelligent<br />

networks, PSM offers a wide range of<br />

display, data acquisition, alarm and<br />

monitoring stations tailored to suit the<br />

needs of the vessel.<br />

TO<br />

*This article was written by PSM<br />

Instrumentation.<br />

January/February 2010 TANKER<strong>Operator</strong> 43


TECHNOLOGY - TANK GAUGING<br />

API records success<br />

in Turkey and China<br />

The latest concerns the delivery of<br />

full integrated cargo control,<br />

monitoring and alarm systems,<br />

including tank gauging, for a new<br />

series of tankers to be delivered to the<br />

Palmali Group by Besiktas Shipyard<br />

in Turkey.<br />

A total of 10 tankers are to be built<br />

designated as the third series of the ‘Armada’<br />

project - RST22M. Each vessel will be<br />

equipped with fully integrated API system<br />

for cargo management, control and ships<br />

stability calculations.<br />

The new vessels will combine river and<br />

open sea operations, as they have been<br />

designed to transit the Volgo-Don and<br />

Volgo-Balt waterways and to operate in<br />

European waters.<br />

Each vessels total capacity of the six cargo<br />

tanks and two slop tanks is 8,090 cu m, while<br />

the deadweight in seagoing conditions is about<br />

7,050 tonnes on 4.60 m draught. While<br />

transiting the inland waterways the<br />

permissible deadweight is 4,700 tonnes on a<br />

draught of 3.60 m.<br />

This new contract between Besiktas<br />

Shipyard/Palmali and API Marine follows<br />

earlier co-operation between the companies,<br />

highlighted by the deliveries of full cargo,<br />

monitoring and alarm systems for the previous<br />

series of Armada types built in Turkish and<br />

Russian shipyards.<br />

The new vessels will also be equipped<br />

Aalborg-based API Marine<br />

has won several significant<br />

contracts during the<br />

past 12 months.<br />

with API TGDs (tank gauging devices) in the<br />

cargo tanks, which are claimed to be unique<br />

multi-functional units for measuring level,<br />

pressure and temperature, using non-contact<br />

acoustic GLF (guided low frequency) self<br />

calibrating methods.<br />

Monitoring and control of ballast tanks,<br />

service tanks, fuel and lube oil tanks will be a<br />

combined through an integrated system based<br />

on API range of sensors - UTS (ultrasonic<br />

tanks switches), UPT (universal pressure<br />

transmitters) and the API bubbling system.<br />

"With this new contract we continue our<br />

successful co-operation with Palmali Group of<br />

companies. The unique technology for<br />

accurate and reliable tank gauging developed<br />

by API Marine, based on acoustic principles,<br />

in combination with fast and flexible service<br />

support, securing overall reliable operation -<br />

has proved again to be the key points for the<br />

owners decision.<br />

“To secure this important contract, API<br />

Marine has worked closely with Emarine<br />

Engineering Ind & Trade, Istanbul, Turkey -<br />

now appointed as official authorised API<br />

Marine representative for the region," said<br />

Sven E Rasmussen, API Marine managing<br />

director.<br />

Chinese gas carriers<br />

Last year, API Marine signed a contract with<br />

Yangzhou Kejin Shipyard in China for<br />

delivery of fully integrated cargo control<br />

automation and remote valve control systems.<br />

The equipment is to be fitted on board six<br />

3,600 cu m pressurised gas carriers ordered by<br />

Danish shipowner Lauritzen Kosan. They<br />

were scheduled for delivery from December<br />

2009 through December 2010.<br />

This follows earlier co-operation between<br />

the two companies established through the<br />

delivery of new innovative LPG tank<br />

management technology fitted on board the<br />

Isabella Kosan series of gas carriers built by<br />

Sekwang Heavy Industries, South Korea.<br />

The new vessels will be equipped with a<br />

specially designed LPG/LEG TGD device.<br />

Measuring stratification of vapour in the<br />

cargo tanks is based on calculation methods<br />

from change in the speed of sound from<br />

change of density of actual gasses –<br />

providing advantages and cost saving for<br />

owners during gas freeing procedures,<br />

API Marine said.<br />

“The scope of supply for the new series of<br />

pressurised gas carriers consists of fully<br />

integrated cargo control automation system,<br />

patented non contact liquid detectors,<br />

emergency shut down and fire protection<br />

New Standards for Tank Measuring Technology<br />

API Marine develops and produces a complete range of sensors<br />

and systems for full cargo control as well as calculation and<br />

administration software combining integrated solutions for<br />

smart tank cargo control.<br />

TGD-500 TM<br />

Tank Gauging Device<br />

UTS TM<br />

Ultrasonic Tank Switch<br />

| API Marine ApS | Troensevej 12 | DK-9220 Aalborg Oest | Denmark |<br />

| Tel.: +45 9634 5070 | Fax: +45 9634 0170 | www.api-marine.com | info@api-marine.com |<br />

44<br />

TANKER<strong>Operator</strong> January/February 2010


TECHNOLOGY - TANK GAUGING<br />

API has had considerable success with its tank gauging devices (TGDs) recently by winning a tranche of orders.<br />

system (deck spray water via fusible system)<br />

and remote valve control system.<br />

“With this contract we continued our<br />

successful co-operation with our Singaporebased<br />

partner Nordic Flow Control - producer<br />

of actuators and remote valve control systems<br />

- and expanded our presence in the Chinese<br />

newbuilding market”, Rasmussen said.<br />

At the end of last year, API Marine<br />

delivered two sets of cargo control systems<br />

(including ballast measurement), alarm system<br />

and valve remote control system. These were<br />

also supplied by Nordic Flow Control to the<br />

Sopo Shipyard in China to be fitted on board<br />

two OW Bunker tanker newbuildings.<br />

The data from the TGD is transferred to the<br />

control room through two cables, thus<br />

reducing the cost of lengthy cabling<br />

throughout the tanker. The tank gauging<br />

device has four integrated measuring<br />

channels:<br />

Low frequency non contact level gauge<br />

with accuracy of 2 mm.<br />

Multiple thermo sensors for temperature<br />

profile measurement in the tank.<br />

Density sensors.<br />

Inert gas pressure sensor.<br />

The features are -<br />

Non contact level gauge with an accuracy<br />

of 2 mm.<br />

Multi thermo sensor for tank temperature<br />

profile.<br />

Inert gas pressure.<br />

Density of cargo.<br />

Automatic calibration.<br />

No moving parts.<br />

HART 2 wires.<br />

TO<br />

Tank gauging device<br />

The API TGD is a multi-functional device,<br />

which measures a cargo tank’s level and<br />

pressure, as well as temperature and density of<br />

the cargo.<br />

It is based on patented principle of Guided<br />

Low Frequency GLF wave propagation,<br />

which allows equal precise measurement<br />

accuracy along the tank height in any tank<br />

shape.<br />

API’s TGD has been developed to work<br />

with the highest level of accuracy in any type<br />

of liquid - oil products, liquefied gases, acids,<br />

solvents and other chemicals preventing any<br />

waste without foam influence from the<br />

surface.<br />

January/February 2010 TANKER<strong>Operator</strong> 45


TECHNOLOGY - TANK GAUGING<br />

Portable liquid-level gauge for ballast tanks<br />

Mitsui OSK Line (MOL) and<br />

Musashino Co have jointly<br />

developed what they claim is<br />

the word’s first portable liquidlevel<br />

gauge for vessels’ ballast<br />

tanks.<br />

The gauge measures the level of ballast water<br />

(seawater) in a tank by dropping a portable<br />

measuring tube into the ballast tank’s<br />

sounding tube. A sensor detects air pressure<br />

changes in the tube and quickly measures the<br />

ballast water level.<br />

Conventional measurement using a<br />

sounding tape is complex and timeconsuming,<br />

requiring several crew members,<br />

MOL said. Use of this new liquid-level<br />

gauge makes it quick and easy to check the<br />

levels of many ballast tanks, improving<br />

efficiency and enhancing the safety of<br />

loading/discharging operations, the<br />

company said.<br />

Vessels add seawater to their ballast tanks<br />

when discharging cargo and pump it out when<br />

loading cargo. This helps to control the hull’s<br />

trim to help ensure its stability. To prevent air<br />

from entering the ballast pump during the<br />

final stages of discharging ballast water, it is<br />

essential to measure the level of ballast water<br />

remaining in the tank.<br />

Liquid level gauge characteristics -<br />

(1) Seafarers can easily carry the gauge’s<br />

main unit thanks to its compact size<br />

Kongsberg’s answer to tank gauging<br />

Last June, Kongsberg Maritime<br />

presented an updated version of<br />

its K-Gauge system.<br />

The system is now fitted with a GL-300 tank<br />

monitoring solution, which has been fully<br />

approved by all of the major class societies. It<br />

is claimed to be lightweight and easy<br />

to install.<br />

Kongsberg said that it offers increased<br />

reliability, accuracy and durability over<br />

already existing tank monitoring systems. This<br />

was made possible through a range of new<br />

sensors designed by the in-house sensor<br />

technology unit, Kongsberg said.<br />

Speaking at the launch, project manager<br />

Borge Havard said; “We have been developing<br />

radar tank gauging solutions for over 25 years<br />

amd have employed our technical expertise<br />

and application experience to develop our<br />

most accurate, reliable and durable solution to<br />

date. We have had a pilot installation on board<br />

a chemical/oil tanker since September 2008<br />

and reports from the customer are that<br />

everything is working perfectly.”<br />

GL-300 is fully integrated with the K-<br />

Gauge tank management and K-Chief<br />

automation systems, sharing operator stations<br />

and I/O units for other cargo instrumentation.<br />

It is a modular solution based on a new,<br />

what is claimed to be a highly accurate radar<br />

tank gauge, cargo temperature unit and a<br />

signal processing unit centrally located for<br />

each tank.<br />

In addition, a pressure sensor is fully<br />

integrated in the radar tank gauge to reduce<br />

cabling and simplify installation. The modular<br />

concept enables the simple design of custom<br />

solutions and supports ease of maintenance<br />

and trouble shooting, Kongsberg said.<br />

The company also said that the radar tank<br />

gauge drew its high accuracy and durability<br />

from the offset parabolic antenna design,<br />

which is claimed to be capable of<br />

withstanding the harsh tank environment<br />

(35 cm wide x 33 cm high x 23 cm deep)<br />

and light weight (about 5 kg).<br />

(2) It takes only 10 to 15 seconds to measure<br />

the liquid level in each ballast tank.<br />

(3) It is compatible with most vessel types as<br />

the gauge uses the vessel’s air compressor<br />

system. The gauge’s main unit can be<br />

connected with the air hose with a onetouch<br />

system.<br />

(4) The pressure sensor automatically adjusts<br />

for changes in temperature and<br />

atmospheric pressure.<br />

(5) A 9V battery is used for power source of<br />

the main unit. Measurements are displayed<br />

in digital format. It also has an auto-off<br />

function to maximise battery life. <br />

and is resistant to condensation and cargo<br />

deposit problems.<br />

The antenna radiates a high frequency<br />

narrow beam, which makes it easy to position<br />

in the tank. By June last year, the company<br />

had delivered more than 4,000 units of the<br />

previous generation systems, which have had<br />

the same antenna design since 2005.<br />

It is applicable to most liquid cargoes,<br />

including crude oil and chemicals across the<br />

entire temperature range and is suitable for<br />

sockets having an inner diameter of 200 mm<br />

or larger (JIS flange). It is claimed to<br />

lightweight and has been designed to offer the<br />

easiest of installation and maintenance,<br />

compared with other designs currently on<br />

the market.<br />

Kongsberg said that several design<br />

elements made this claim possible, from the<br />

inspection hatch on the GLA-300 radar tank<br />

gauge to the minimisation of cabling across<br />

the entire system.<br />

<br />

TANKER<strong>Operator</strong><br />

The Latest ews is now available on<br />

TAKER<strong>Operator</strong>’s website at<br />

www.tankeroperator.com and is updated weekly.<br />

For access to the ews just register by entering<br />

your e-mail address in the box provided. You<br />

can also request to receive free e-mail copies of<br />

TAKER<strong>Operator</strong> by filling in the form displayed<br />

on the website. Free trial copies of the printed<br />

version are also available from the website.<br />

These are limited to tanker company executives<br />

and are distributed at the publisher’s discretion.<br />

46<br />

TANKER<strong>Operator</strong> January/February 2010


Marinfloc has introduced a new<br />

pre-treatment system called CD<br />

pre-T.<br />

By keeping the existing certified oily water<br />

separator (OWS) and connecting the CD pre-T<br />

in line, filter changes were claimed to be<br />

become virtually unnecessary.<br />

With the Marinfloc CD pre-T breaking the<br />

emulsion and cleaning the water down to 15<br />

parts per mill, the present OWS acts as a<br />

pump, discharging clean water overboard.<br />

Since 2005, when the MEPC 60(33)<br />

regulation was replaced by MEPC 107(49),<br />

the older gravity-type OWS often had to be<br />

replaced by a centrifugal-type, or an<br />

emulsion breaking cleaning system or,<br />

alternatively, some shipowners chose to<br />

compliment the existing OWS with<br />

additional filters. Many new separators<br />

sold today also use exchangeable filter<br />

cartridges.<br />

The filter-option, involving the lowest<br />

initial investment, has, however, been shown<br />

to be a costly option for many operators. In<br />

many cases, filters need to be changed several<br />

times per months and sometimes even more<br />

often. Annual filter costs of well above<br />

$50,000 per year are not uncommon.<br />

As the new CD pre-T is to be installed<br />

before any existing OWS, independent of<br />

type or make, no changes or new certificates<br />

are necessary and the investment cost for the<br />

pre-treatment system is easily balanced<br />

against filter costs and the time it takes to<br />

change them.<br />

Marinfloc claimed that the payback time is<br />

less than one year for many ships with<br />

challenging bilge water needs.<br />

The emulsion breaking step of the CD Pre-<br />

T uses forced flotation together with a<br />

flocculent. After this step the cleaned bilge<br />

water with less then 15 ppm of oil is lead back<br />

through a three-way valve into the present<br />

TECHNOLOGY - NEWS<br />

Marinfloc launches new pre-treatment system for existing<br />

oily water separators<br />

An overview of Marinfloc’s pre-treatment system.<br />

Rudder repairs now possible without drydocking<br />

OWS suction line and is pumped overboard<br />

through the existing OWS, controlled by the<br />

present oil content meter.<br />

Alternatively, the CD Pre-T can discharge<br />

the cleaned bilge water into a separate tank,<br />

from which the present OWS can take its<br />

suction.<br />

The first two systems to be launched by<br />

Marinfloc have a capacity of 1,000 litres per<br />

hour, measuring 1.5 m by 0.7 m, and 250<br />

litres per hour, measuring 0.8 m by 1.2 m. A<br />

larger 2,000 litres per hour system is to be<br />

launched shortly.<br />

<br />

Leading Belgium-based<br />

shiprepair specialist Hydrex has<br />

developed a new method to<br />

enable the permanent repairs of<br />

rudders to be undertaken<br />

without drydocking the ship.<br />

Previously, permanent repairs were not<br />

possible and ships had to drydock in cases<br />

where a major defect was found.<br />

Hydrex’s newly designed equipment is<br />

lightweight and can be mobilised very<br />

rapidly in the company’s special flight<br />

containers, making the service available<br />

worldwide.<br />

Major rudder defects often cause<br />

unscheduled vessel drydockings.<br />

The new method designed by Hydrex’s<br />

technical department allows engineers,<br />

welders and inspectors to perform their tasks<br />

in dry conditions. Class approved permanent<br />

repairs in-situ, without moving the ship, are<br />

now possible resulting in the commercial<br />

operations continuing unaffected.<br />

Steel repairs and replacements can be<br />

undertaken and pintle and bushing defects<br />

can be solved without the loss of time and<br />

money associated with a drydocking.<br />

The equipment can be mobilised within<br />

hours and transported to any port in the<br />

world. It is available at the Hydrex<br />

headquarters in Antwerp and at the offices in<br />

Tampa, Algeciras, Mumbai, Visakhapatnam<br />

and Port Gentil. <br />

Need anchors and chains?<br />

www.wortelboer.nl<br />

January/February 2010 TANKER<strong>Operator</strong> 47


TECHNOLOGY - NEWS<br />

Chemoil hits out ‘rushed and ill-advised’ ISO 8217 revision<br />

proposals which will effect bunker specifications<br />

Chemoil has urged the<br />

International Standard<br />

Organisation’s (ISO) working<br />

group, which is currently<br />

reviewing changes to bunker fuel<br />

specifications - ISO 8217 - to<br />

ensure there was a broad, crossindustry<br />

consensus for a fair and<br />

equitable revision to the standard.<br />

Responding to recent claims that current<br />

recommendations ISO/DIS (draft international<br />

standard) 8217 were too lenient and in favour<br />

of the bunker supplier, Chemoil has<br />

highlighted a number of issues raised within<br />

the proposed revision that, if implemented,<br />

could trigger rising bunker fuel costs for ship<br />

operators and will increase disputes over fuel<br />

specifications.<br />

Adrian Tolson, Chemoil’s vice president of<br />

sales and marketing, said: “Chemoil is<br />

alarmed at a number of rushed and ill advised<br />

changes proposed to ISO 8217 that could lead<br />

to a reduction in the availability of bunker fuel<br />

in many ports, increase bunker fuel costs for<br />

ship operators and generate an increase in<br />

unnecessary contractual disputes at multiple<br />

stages of the bunker supply transaction.<br />

“There is a real danger of the proposed<br />

regulations forcing ship operators to take<br />

unnecessary risks in buying bunkers that do<br />

not meet the new specifications because<br />

suppliers are forced to sell fuel with multiple<br />

exceptions to the new ISO 8217.<br />

“With the proposed reductions of<br />

Aluminium (AI) and Silicon (Si) to 60 parts<br />

per mill (ppm) from 80 ppm, Chemoil is<br />

against further reductions from current levels.<br />

Historically, levels of Al+Si up to 80 ppm<br />

have not caused any abnormal wear issues on<br />

ships engines provided that a ship’s fuel<br />

treatment plant is working properly.<br />

“This current limit has served this industry<br />

well for many years and a decrease to 60 ppm<br />

is completely unnecessary. Moreover, the<br />

increasing trend towards low sulphur residual<br />

bunker fuel conflicts directly with the<br />

proposed reduction of Al+Si. These metals<br />

(Al+Si) are found typically in the lower<br />

sulphur blend stocks used to produce low<br />

sulphur bunker fuel. The net result would be<br />

the increased use of more costly, blend stocks.<br />

“In addition, Chemoil joins multiple<br />

industry experts in our belief that Calculated<br />

Carbon Aromaticity Index (CCAI) is not<br />

Recent orders for Wärtsilä low speed engines<br />

Wärtsilä has claimed considerable<br />

sales success with its newly<br />

introduced Wärtsilä RT-flex82T lowspeed<br />

engine.<br />

Orders for a total of 30 seven-cylinder Wärtsilä<br />

RT-flex82T engines have been received in recent<br />

months. These including:<br />

Six engines for VLCCs to be built by<br />

Dalian Shipbuilding Industry.<br />

Six engines for VLCCs to be built by<br />

Shanghai Waigaoqiao Shipbuilding.<br />

Two engines for VLCCs to be built by<br />

Hyundai Heavy Industries.<br />

In addition, 16 have been ordered for<br />

newbuilding VLOCs to be built by Jiangsu<br />

Rongsheng.<br />

The engines are to be manufactured by<br />

Wärtsilä Corp licensees.<br />

Wärtsilä said that the company has a global<br />

market share of about 50% in electronicallycontrolled<br />

low-speed engines. During the past<br />

two years, orders for 140 of the company's 82<br />

cm bore marine engines have been placed. Of<br />

these, some 120 were for the RT-flex<br />

common-rail version.<br />

The new 82 cm bore, Wärtsilä RT-flex82T<br />

low-speed marine engine has successfully<br />

completed the type approval test carried out at<br />

Hyundai Heavy Industries (HHI) in South Korea.<br />

This test was carried out in the presence of<br />

representatives from the major classification<br />

societies. The first engine was installed in a<br />

VLCC built by HHI. The tested 7-cylinder<br />

RT-flex82T has a maximum continuous power<br />

of 31,640 kW at 76 rev/min.<br />

Wärtsilä claimed that the RT-flex82T is the<br />

ideal prime mover and market leader in<br />

electronically controlled engines for large<br />

tankers, namely VLCCs and ULCCs, as well<br />

as for very large bulk carriers of between<br />

200,000 and 400,000 dwt.<br />

Being a low rev/min engine, it is also an<br />

attractive alternative to the higher rev/min engines<br />

normally used in containerships. The lower<br />

rotational frequency offers fuel cost savings that<br />

are attractive in projects where fuel efficiency is<br />

high on the agenda, Wärtsilä claimed.<br />

The four 82 cm bore engine types in<br />

Wärtsilä's portfolio, the RT-flex82C, RTA82C,<br />

RT-flex82T and RTA82T, are designed to offer<br />

always a reliable indicator of ignition quality.<br />

CCAI values are not derived from standard<br />

testing protocols, rather it is a calculated value<br />

based on other measurements and parameters.<br />

“The current proposals not only validate<br />

CCAI as a measure of ignition quality, but<br />

also would define, as ‘offspec’, a high<br />

percentage of higher viscosity RMK bunker<br />

fuels currently being sold and used with no<br />

problem. The loss of these fuels from the<br />

market would reduce the supply of RMK and<br />

lead to an increase in costs to bunker fuel<br />

buyers,” he said.<br />

Tolson said massively conflicting views<br />

over the proposed changes to Aluminium and<br />

Silicon as well as the CCAI introduction are<br />

only two of many areas of controversy, which<br />

highlight the need for more industry<br />

consultation and consideration to be taken into<br />

account when laying out what are substantive<br />

changes to ISO8217.<br />

“The current DIS is disputable on many<br />

levels,” Tolson said. “What is needed and<br />

expected is cross industry consensus. We must<br />

ensure that any revisions to ISO 8217 are<br />

both balanced and reflect the realities of the<br />

marketplace.”<br />

<br />

the same economic and environmental<br />

benefits to different vessel types, according to<br />

their operating requirements.<br />

This programme was first introduced in<br />

November 2005, and all versions are based<br />

upon a common platform with as many parts<br />

as possible being shared. This enables benefits<br />

of rationalisation in design and manufacturing,<br />

optimised manufacturing ability and spare part<br />

stocks, to be realised, the company said.<br />

Common-rail technology<br />

All the Wärtsilä RT-flex engines feature<br />

common-rail technology. Wärtsilä said that this<br />

technology offers greater parameters for<br />

propulsion plants with optimum cost efficiencies<br />

for large tankers and very large bulk carriers. In<br />

the currently challenging marine market<br />

conditions, such efficiencies are seen as offering<br />

notable economic and environmental benefits to<br />

shipowners and operators.<br />

The flexibility in engine setting, which is<br />

an integral feature of the RT-flex common-rail<br />

system, includes optimised fuel injection<br />

pressures and timing for all loads. <br />

48<br />

TANKER<strong>Operator</strong> January/February 2010


SERVICE & QUALITY ARE WITHIN YOUR REACH<br />

INTERNATIONAL REGISTRIES, INC.<br />

THE MARSHALL ISLANDS MARITIME AND CORPORATE ADMINISTRATORS<br />

TEL: +1 703 620 4880 | FAX: +1 703 476 8522<br />

MARITIME@REGISTER-IRI.COM<br />

FOR A FULL LIST OF OFFICES PLEASE VISIT:<br />

WWW.REGISTER-IRI.COM

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!