Download - Tanker Operator
Download - Tanker Operator
Download - Tanker Operator
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