Navigation standards slammed - Tanker Operator

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p15-19.qxd 09/05/2006 10:35 Page 2 NORWAY AmosConnect Crew: The new all-in-one crew communication solution Now your staff can contact home via email and SMS as well as make calls from the same prepaid card. Combining two industry-leading solutions, AmosConnect Crew is simple to install and manage, while offering your crew a convenient and easily affordable service. tem was found to offer a several advantages over traditional steel ship structures. Benefits include an ability to absorb a lot more energy than ships of steel plate, more barriers against water ingress (the equivalent of four steel plates); fewer areas in need of protective coatings thus less corrosion and, importantly but rather paradoxically, less weight. The steel/concrete sandwich concept uses lightweight aggregates like Liaver and Liapor to counter the problems associated with weight Weight penalty Past concrete ships had one basic flaw: their weight. Typically, ships built of normal reinforced concrete carried a weight penalty of more than 50% compared to ships of steel. A major aim of this research project was to find a strong but lightweight concrete mix. DNV has found that lightweight aggregates like Liaver and Liapor work well. Svensen acknowledged that although the concept is feasible and can be applied to any ship type it is most likely to see its first application on small patch repairs and barges. "It could mean a third of steel being replaced with the steel/concrete sandwich," he said. reducing hull roughness, but polishing the propeller can also help reduce fuel consumption. In the past though, as fuel was cheap, it was not thought of being very cost effective to coat propellers - now it's a different matter. Public perceptions Reducing the impact of shipping on the environment and changing the public's perception of the shipping industry is a challenge and companies throughout the industry are now becoming increasingly aware of the need to review their business for issues that can attract negative press and see reputations - and share prices - plummet "Corporate social responsibility and globalisation are challenges. The industry has to change the public's perception of shipping to that of responsible transporters of goods," Svensen said. At the end of last year, DNV concluded the joint research project CSR in Shipping and found that shipping companies must be able to promote their work in the public arena and according to the demands of stakeholders, governments, NGOs and other interest groups. DNV's Dag Runar Elvekrok said that those shipping companies that actively demonstrate their contributions to sharing ideas and good practices will be at a competitive advantage as CSR requirements will become more and more important. The CSR in Shipping is a joint project venture between DNV Research, Norwegian shipowners Eidesvik and Jebsen and the Norwegian Shipowners' Association. Six reasons to switch: Why ship managers are opting for AmosConnect Crew ■ All-in-one crew communication solution separate from business communication ■ Easy standard roll out via CD ■ Easy reload of ChatCard credit by crew via On line service (or credit card) ■ No need to manage crew mailboxes ■ No need to administrate crew email usage ■ Control over email size and onboard virus security Motivate your staff: Why crew members are asking for AmosConnect Crew ■ One prepaid card for Voice, Email and SMS ■ Cheap to send and talk – free receipt of SMSs and emails ■ Private email box and same address on (any) ship & shore ■ Personal international SMS number for direct reply ■ Webmail for checking email ashore ■ Management and control of private email by crew Proven in practice AmosConnect Crew is based on the proven technologies of AmosConnect and ChatCard. See www.xantic.net/amosconnect for more details. Smart Communication Solutions Tor Svensen said the industry has to change the public's perception of shipping to that of responsible transporters of goods If this material is proven to have significant weight advantages over steel, then it could also prove to be less harmful on the environment as it would ostensibly take less fuel to propel the vessel through the water. "The best way of reducing emissions to air is to burn less fuel," said Svensen. "This is directly proportional with fuel consumption. If you burn 20% less fuel then you have about 20% less emissions. So what can you do? "Ships must run at optimum efficiency with respect to engine loads and the draught and trim of the ship as it moves through the sea. It makes a big difference when it comes to resistance and propulsion emissions," he concluded. Of course, energy loss can be reduced through better use of hull coatings and Profits before safety Human error, competition and increased traffic are pushing up the premiums, but shipowner/insurer collaboration could be the key to reductions Despite well-publicised dissent at the increasing trend to criminalise marine accidents and, by stealth, the seafarer, it seems inevitable that legislation will be passed introducing penalties for pollution. The practical effect that this might have on crews, especially those plying the tanker trades, certainly gives rise for concern to Claes Isacson, Gard P&I's chief executive officer. Speaking in Gard News, he said that the quantity and quality of crews is already a problem for the industry and "if authorities continue to target seafarers, shipowners may well find that quality staff will seek jobs on shore, exacerbating the problem of sufficient qualified crew on board". Human error For marine insurers and underwriters, the quality of the crew is major problem and of all the hull and machinery claims assessed by the Norwegian Hull Club during 2005, human error was the dominating factor with a significant increase in the number of claims resulting from nautical incidents. "Machinery damages (frequency and costs) are pretty static or even down in relative terms, but insurance claims caused by nautical errors are up," said the Club's TankerOperator May/June 2006 page 16
p15-19.qxd 09/05/2006 10:36 Page 3 director, Ole Wikborg. This is corroborated by Norwegian Maritime Insurance Statistics' data, which suggested a marginal increase in the number of machinery damage but collisions ran away with 19% of the total claim costs versus 14% during the 2000 - 2004 period. In addition, heavy weather damage increased to 7% from 4%. It is claimed the figures indicated that between 70% to 90% of the accidents recorded were related to human error. The Oslo-based Central Union of Marine Underwriters (CEFOR) said that in cases related to navigation, the number of claims is increasing and together accounts for over 50% of all claims payments. Causes included senior offices lacking experience or who were trained more on theory than practice, while officers' overreliance on sophisticated bridge technology may also have contributed to reduced safety margins and - if an incident should occur - less room for error, suggested CEFOR. Profits before safety The Norwegian marine insurance cluster also highlighted that claims could be affected by those shipowners and operators looking to maximise profits by postponing maintenance dockings. These pressures, claimed CEFOR, coupled with increased shipping traffic and competition for berths, may increase the risk of navigation-related incidents such as groundings. Collision damage is also resulting in unusually high costs for the shipowner, often with a significant salvage element and average contributions from cargo insurers. On the repair side, costs have escalated due to a combination of the present shortage of available slots, shortage of available spare parts and the extraordinarily high price of steel. All in all, the market did not bode well for a reduction in insurance premiums. Norwegian Hull Club's managing director said that the financial impact of increasing medium sized claims, both in terms of severity and frequency, was going to be severe. "In short," he said, "reinsurance costs will increase, capacity in the reinsurance market will decline and reinsurance credit risk will increase. These factors combined can only result in increased prices for hull and energy risks." To further encourage more knowledge sharing, the NSA maintained close ties with CEFOR, sponsored various seminars and conferences, which included both shipowners and marine insurers, and urged its members to share data. She believed that a greater willingness to share information should be fostered between owner and insurer and, while owner sensitivity was a consideration, the global trend towards transparency should be seen as positive for the industry. Such was the concern throughout the global insurance market that the International Union of Marine Insurance (IUMI) is to focus on how the industry can reduce claims at this year's IUMI Conference, in September. Already underwriters are adopting a much more active role in assessing the risks they are asked to cover in renewed efforts to reduce and control claims. Gas boom boon for Bergesen Bergesen Worldwide Gas' (BW Gas) strategy to take advantage of the booming LPG and LNG markets has stepped up a gear with the acquisition of Yara International's ammonia fleet. The Yara deal, worth $347 mill, will see seven fully-owned and three chartered-in LPG/ammonia vessels join the Bergesen fleet of 72 LPG and LNG vessels. BW Gas will also enter into a partnership agreement under which the Norwegian shipowner will provide shipping services that Yara has defined to be 'non-core'. The partnership was intended to increase both parties' flexibility, providing a platform for future expansion of their seaborne ammonia trading and transportation businesses. Commenting on the deal, Jan Håkon Pettersen, managing director and ceo of Seut Industrier as Mosssev. 63/65 -1615 Fredrikstad, Pb. 351, 1601 Fredrikstad Tlf: 69 36 87 70 - Fax: 69 36 87 71, E-mail; torbjorn@seut.no, - www.seut.no BW Gas, said: "The partnership with Yara, the world's leading ammonia producer, is strategically important for BW Gas for us to reach our goal of becoming the pre- Jan Håkon Pettersen, managing director and ferred supplier of gas trans- ceo of BW Gas portation. The relationship will improve the utilisation of our fleet and create value for our shareholders. We will at the same time renew and expand our ammonia fleet and further strengthen our position as the world's leading shipping service provider to the gas industry." The vessels will be timechartered back to Yara for periods ranging from three to 15 years. The timecharter rates are fixed and aggregated timecharter income the first full year of operation (2008) is about $81.5 mill. BW Gas will take over the timecharters of two K-Line newbuildings and the timecharter on Carbofin's Marola. The three timechartered vessels will be TANKER Operator leased back to Yara for the same period that they are chartered in. LPG growth The LPG market, like its LNG counterpart with which it is closely associated, is expected to expand exponentially and by 2010, as more Middle East countries enter the market, more carriers will be required. As a consequence, 72 gas carriers, mainly VLGCs, have been contracted for delivery between 2006 and 2009. Two of these will be delivered to Bergesen from Hyundai in 2008. With new sources arising as a result of increased LNG production, BW Gas expects spot product prices to fall to reflect concerns that supply could exceed the market requirement. Some 31% of BW Gas' fleet operates on the spot market, the rest are either time chartered or on fixed contracts of affreightment (COAs). Contracts of Affreightment (COAs) "Customers require flexible shipping cover that allows them to load wherever the price is right. A timecharter restricts the charterer to cargoes where their ship is in the right place at the right time," said chartering manager Armand Staunton. "This exposes the charterer to changes in the commodity price that could exceed the BW Gas' strategy to take advantage of the booming LPG and LNG markets has stepped up a gear with newbuilding orders and acquisitions Collaboration Marianne Lie, director-general of the Norwegian Shipowners' Association believed that collaboration and co-operation were key factors in reducing risks. "The shipping industry is increasingly dominated by fewer, larger players which are more sensitive to HSE issues and share a global perspective. At the same time, marine insurers are facing increased competition, more demanding customers and a need to develop more and improved products," she said. Seut blind flange valves A product based on quality, efficiency, simplicity. Easy to operate and reliable in use.Suitable for: ‣ Ships‣ Rigs and platforms ‣ Refineries‣ Terminals.‣ Chemical and petrochemical industries Wherever you require security when blinding: ‣ Liquids‣ Oils‣ Solvents‣ Chemicals.‣ Gasses‣ Steam and water Approved by:DET NORSKE VERITAS - BUREAU VERITAS - LLOYD'S REGISTER OF SHIPPING - U.S. COAST GUARD - AMERICAN BUREAU OF SHIPPING - RINA ITALY - GERMANISCHER LLOYD - USSR REGISTER OF SHIPPING TankerOperator May/June 2006 page 17
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