Navigation standards slammed - Tanker Operator

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TANKER
Operator
Greeks was steady, though there was
another peak in the run-up to April 1 and
the final introduction of CSR by IACS.
Though Greek complaints finally drew the
fullest explanation of the rules from IACS
just days before their introduction, it must
be noted most concern was expressed over
the rules for bulk carriers. Indeed, as far as
the tanker fraternity is concerned, it was
again evident in March that
the Greeks had accepted the
rules were part of the industry's
future, no matter what
they may think.
Much was made of the
early spring rush to order
tonnage. Brokers and shipyards
claimed it was almost
entirely driven by the pending
introduction of CSR. The
new rules will add several
million US dollars onto the
price of VLCCs and proportionally
more on to the price
tag for highspec ships,
whether big or small.
However, the Greek companies
ordering tankers and
gas carriers were, in the
main, well known in the
energy transportation business
and while being
extremely competitive were
not penny-pinchers. Most
had already invested heavily
in new tonnage and many of
the latest projects that have
been under negotiation.
There had been some accusations
that yards and class
had back-dated contracts to
late March, but noted, Ole
Schnohr, managing director
of MAN B&W (Hellas), "all
the projects had been on the
drawing board for some time
and were due to be signed".
MAN B&W was supplying
over 90% of the engines and
Schnohr said there are many
more projects to be finalised.
Of course, the new rules
have played a big part in
owners' planning, but market
sentiment and the availability
of building berth space had a
bigger influence on deciding
when to order. Further,
according to key equipment
suppliers it was the shipyards,
not class that exerted
the greatest pressure to order.
Despite this, the number
of tanker orders that came to
light in March was truly
mind boggling. Data built up
by the Greek publication,
Newsfront, revealed that at the
end of last year there were
1,550 energy carrying ships of
96 mill dwt on order. By the
beginning of April the world
orderbook had registered a
net gain of 120 ships of 5.78
mill dwt despite the fact ships
were being delivered during
the period. For example,
between January and May,
Greek owners alone took
delivery of 24 tanker newbuildings
of 2.25 mill dwt.
At the beginning of 2006, 40 Greek owners
had 209 energy carrying ships on order.
By the end of April, 35 companies had 212
energy ships on order. In March, shipbrokers,
shipowners and shipbuilders were
reporting the world's tanker industry had
placed contracts for some 96 ships of approx
7.3 mill dwt, for an investment of $4.5 bill.
In addition, options were held for at least 20
more ships.
The overall pre-CSR picture can been
seen from reports from South Korean
shipbuilders that they had reaped a record
$12 bill worth of orders in the first quarter
of 2006, with the country's Commerce
ministry attributing the influx of 136 ships
to a scramble for yard space before April 1.
Orders for tankers ran to 97 of which 65
were for products carriers. Yards in China
also scored well, but were overshadowed
by South Korea.
An idea of price levels for ships ordered
and slated for delivery late 2008 and
into 2010 could be seen from the 318,000-
tonne VLCCs booked at Hyundai at
$120 mill each by Dynacom Tankers
TankerOperator May/June 2006 page 9