TANKEROperator

TANKEROperator
MARCH 2015
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Contents
04 Markets
Older tanker - better value?
Little scrapping
20 Anti-Piracy
Protecting the citadel
22 Technology
22 Chemical/Products Tankers
Super Efficient MR
IMO PPR meeting
28 Ship Efficiency
Voyage optimisation
Air lubrication tanker tests
ECA fuel questions
Monitoring emissions data
34 Tank Servicing
Why wall wash?
Report
06 US
US crude exports - coming soon?
Operator’s Annual Top 30
37 Tanker
company listing
Jones Act safe
12 Shipmanagement
Stronger focus needed
Evaluate data properly
Looking at pool points
Ships agency vital
BSM’s new era
Front cover
BSM_210x250_ad_Layout 1 17/02/2015 14:19 Page 1
Bernhard Schulte Shipmanagement (BSM) experienced a change at the top at the end of last year, heralding a new era for the group.
Today, the company is one of the largest tanker third party shipmanagement concerns having around 150 tankers of all types in its
portfolio.
Maritime Solutions
powered by people
An ocean of expertise dedicated to safe, reliable and efficient ship management
Comprehensive training is also given to tanker crews up to senior officer level, which includes liquid cargo simulator courses, at the
group’s own training centres.
www.bs-shipmanagement.com
March 2015
TANKEROperator
01
COMMENT
2015 - More tanker company IPOs and
consolidation likely
Improving market fundamentals
could persuade more tanker
owners to tap into equity
markets, leading ratings agency
Fitch said recently.
This money will probably be used to
increase, or modernise fleets, mainly through
the secondhand market and M&A activity.
Fitch said that tapping into equity markets
would help owners with funding since the
banks have become cautious about investing in
shipping.
For example, Belgium's Euronav raised
$229 mill through an IPO at the end of
January, having increased its size from $166
mill due to high demand.
Tankships Investment Holdings also plans to
raise up to $100 mill in a NASDAQ listing.
“We believe other tanker shipping
companies may follow suit with an IPO, or
other equity issuance. This should help them
at least partially repair weak balance sheets
caused by falling profitability and continued
high capex through the industry downturn,”
Fitch said.
Like most pundits, Fitch expected a better
supply/demand balance in the tanker sector
this year. Slower growth in capacity should
lead to a gradual tightening in the tanker
market, especially in the crude tanker segment,
which will support higher capacity utilisation
rates.
Crude tanker tonne/mile demand was
forecast to grow by about 2% per year in
2014-2015, while the net global tanker fleet
was forecast to increase by around 1% in 2014
and 2% in 2015, mainly in the product tanker
segment. Crude oil tanker fleet growth will
remain flat.
The drop in oil prices is likely to strengthen
shipping companies' financial profiles. Tanker
rates should be supported by the contango
structure in oil prices, where crude for future
delivery is more expensive than current prices.
This has prompted higher demand for floating
storage projects. Lower fuel costs should also
help boost profitability.
As for Sovcomflot (SCF), the Russian
Government - the company’s sole shareholder
- made preparations for an IPO last year, but it
was postponed due to volatile financial
markets and further delays are expected.
In Tanker Operators’ Top 30 listing with this
issue, there have already been a few
consolidation moves, notably DHT’s takeover
of Samco and the forming of China VLCC out
of cash-strapped Nanjing Tanker and Hong
Kong-based Associated Maritime.
Although the Chinese deal was probably
politically motivated to save Nanjing Tanker,
it has spawned a large commercial VLCC
concern at the right time, as far as earnings are
concerned.
VLCC deal imminent
The most intriguing deal being discussed as
this issue went to press was GenMar’s
takeover of Navig8’s newbuilding VLCC fleet.
This would be a remarkable turnaround for the
US-based company if this deal was
consummated, as it only came out of Chapter
11 in 2012.
In all, GenMar operates seven VLCCs with
another seven on order. As for Navig8, a
champion of pools, it has 21 VLCCs in its
VL8 pool, plus another 14 on order. This
merger would create another significant force
in the VLCC segment.
Earlier, GenMar, now primarily backed by
Oaktree Capital, had tried to buy the Maersk
VLCC fleet before being pipped to the post by
Euronav.
It is interesting to see that the pendulum has
swung in favour of crude oil tankers away
from product tankers, especially MRs. This
has to be a good thing for product tanker
owners and operators, as the market was in
danger of becoming over cooked.
There has been interest in LR2s and despite
their higher newbuilding cost, due to coated
tanks, they do give an operator greater trading
flexibility, being able to switch trades
reasonably easily.
Expanding empires
Several players could expand their empires
this year on the back of IPOs and/or equity
funding, including Capital (just outside our
Top 30), Teekay and Angeliki Frangou’s
Navios tanker vehicles. Also don’t forget
George Economou (Cardiff), Anthony Gurnee
(Ardmore), Robert Bugbee (Scorpio),
Herbjorn Hanssen (Nordic American) and
others who are no doubt waiting for the right
opportunity to pounce.
Turning to vessel operating efficiency, at a
recent presentation, DNV GL maritime head
Tor Svensen said that in conversation with
owners, he had not found anybody who had
given up the principle of slow steaming.
Although mainly talking about the
containership sector, this also applies to the
tanker trades as well.
If the oil price stays low for some months,
will this change the operators appetite for fuel
savings, or will the threat of environmental
legislation outweigh the commercial
considerations? Low bunker fuel costs, plus
more efficient vessels must be a ‘win win’
situation for owners and operators alike.
TO
TANKEROperator
Vol 14 No 4
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TANKEROperator March 2015
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INDUSTRY - MARKETS
Older tankers could
prove the best bet
Last year, McQuilling Services deduced from its Sharpe Ratio analysis
that VLCC and Suezmax tankers may offer investors a
more attractive risk-adjusted return in the long-term.
his prognosis was further tested in
January of this year as the
consultancy concluded its asset
price forecast and investment
analysis sections of its 2015-2019 Tanker
Market Outlook.
The results of the analysis suggested that the
initial findings were correct, but further showed
that the 10-year old tankers of these two vessel
classes will outperform their younger
counterparts.
In Table 1, McQuilling displayed recent asset
prices for 10 year old VLCCs and Suezmaxes.
These vessels, when measured by the
percentage growth in the last 12 months have
appreciated by 21.2% and 44.9%, respectively.
McQuilling believed that the upward
momentum initiated during the year will
continue going forward, as the current firm
earnings environment is forecast to persist at a
stable rate in 2015, retreating slightly in 2016
before firming again through 2019.
The relationship between earnings and
secondhand tanker values has been well
established down the years. This applies to both
five-year old and 10-year old vessels with
correlation statistics above 70% for both
Suezmaxes and VLCCs for these age groups.
T
Despite the similar behaviour of the asset
prices for both age groups, there was a clear
difference in the velocity of price movements.
From the consultancy’s historical analysis, it
was determined that the older vessels
outperformed their younger counterparts,
McQuilling explained, when prices were
increasing, but also experienced more negative
volatility in market downturns (Figure 1).
By comparison, the 10-year old VLCC
would have reached a high of 3.44 in 2008,
about 16% higher than its five-year old
counterpart. On the way down from the high in
2008; however, the 10-year old VLCC lost
74% of its value, reaching 0.91 in 2012. At the
same time, the five-year old VLCC, which
peaked at 2.97 in 2008 gave back 59% of its
value.
While the importance of the past
performance of asset prices was appreciated, it
should be used cautiously when predicting
future price movements. For this, McQuilling
relied on its asset forecasting process, the
consultancy explained.
Outlook. It encompasses three components: a
regression model, which tests historical
relationships between asset prices and
independent variables like TCE earnings; an
income based valuation model, which discounts
future unlevered cash flows with a weighted
average cost of capital and finally information
is gathered from McQuilling Partners sale and
purchase desk.
These three components are examined
independently and overlaid with adjustments
taken from experience, such as expected
inventory levels, or availability of financing, to
complete the final forecast.
In completing the forecasts for 2015-2019,
McQuilling concluded that tankers across all
sectors were likely to rise amid a firmer
earnings environment; however, the scale of the
rising values would vary significantly.
For example, in the clean tanker segment, a
10-year old MR2 with a projected increase of
11% was the best expected performer; but, on
the dirty side, the growth forecast was at least
18% for the different 10-year old tankers
(Figure 2). On average, the 10-year old dirty
tanker class represented the best performing
vessels, outpacing their clean counterparts, as
well as the five-year old dirty and clean tanker
Three components
McQuilling’s asset forecasting process is well
defined in the 2015-2019 Tanker Market
Figure 1 Historical Performance of VLCC Tankers
(5YR/10YR), 1994 = 1.0
Table 1 VLCC & Suezmax 10-YR Old Values
US $ (million)
Period
VLCC
SUEZ
4Q 2013
33.4
24.8
4.0
5-YR
10-YR
3.5
1Q 2014
38.4
29.4
2Q 2014
45.5
33.5
3.0
3Q 2014
47.8
34.6
2.5
4Q 2014
45.4
34.5
2014 Avg.
44.3
33.0
2.0
1.5
Period
VLCC
SUEZ
Jan-14
37.3
24.5
Jan-15
45.2
35.5
+21.2%
+44.9%
1.0
0.5
% Change
Source: McQuilling Services
04
0.0
94
96
98
00
02
04
06
08
10
12
14
Source: McQuilling Services
TANKEROperator March 2015
INDUSTRY - MARKETS
Figure 2 Projected Asset Prices for 10-YR old Dirty
Tankers*
Figure 3 IRR Projections for Dirty Tankers
IRR %
US $ million
Jan-15
2015*
110
50%
NB
100
90
5 YR
10 YR
40%
80
70
30%
60
22%
50
40
55
18%
45
42
36
30
20%
25%
20%
32
26
20
19
10
23
10%
0
VLCC
SUEZ
AFRA
PANA
Source: McQuilling Services
*Percentages are calculated using unrounded asset prices
*Annual average values
classes.
The results of the forecast indicated that
there is a great deal of value in the older vessel
classes, which was further confirmed in the
consultancy’s investment analysis. McQuilling
looked at all tankers acquisitions at January
2015 levels with the objective of holding the
vessel until the end of its trading life – which
from its proprietary data is estimated to be the
22nd anniversary of a vessel.
Between now and then, the vessel’s cash
flows would be based on McQuilling’s five
year TCE forecast taken from the 2015-2019
0%
VLCC
SUEZ
AFRA
PANA
Source: McQuilling Services
Tanker Market Outlook and a longer-term
average for the years that extended beyond this
forecast.
After accounting for operating costs and
financing costs related to the acquisition of the
vessel, it was assumed that the vessel would
receive the historical average of its residual
value at its maturity. The corresponding cash
flows would then be analysed for the internal
rate of return (IRR) and compared against one
another to determine which tanker by size and
sector is the best investment in today’s
environment.
The results showed what the Sharpe Ratio
from last year’s research also concluded – the
bigger dirty tankers are the place to be from an
investment standpoint. It was further concluded
that among the bigger dirty tankers, the 10-year
old class distinguished itself.
With an IRR (return on equity) of 44.9%, the
10-year old VLCC represented the best
investment option in today’s pricing
environment, according to McQuilling’s
calculations. Not far behind was the 10-year
old Suezmax, which may return a 40.8% IRR
to investors.
TO
Scrapping on hold for the time being
Tanker tonnage sold for demolition
last year totalled 8.3 mill dwt.
This was the lowest deadweight figure since
2009 and down by almost a third from the
12.2 mill dwt recorded in 2013.
The significant fall could be due in part to
the improved trading conditions for tankers
throughout much of last year, but also a lack of
suitable candidates, leading London broker
Gibson said in a recent report.
Lightweight prices firmed throughout 2014
until the fourth quarter when steel scrap
demand started to fall. Nevertheless,
December’s lightweight price remained firm at
around $460 per tonne (Indian sub-continent),
which was at a similar level to the same period
a year before.
Of the 77 tankers of 25,000 dwt and over
sold for scrap, 24 were single hull, reflecting
the fact that the final year of operation had
been reached under the phase out. This should
condemn more elderly tonnage to the breakers.
March 2015
TANKEROperator
Last year, just 11 VLCCs - of an average
age of 21.1 years - were sold for demolition,
which was almost half the 2013 total. They
included two single hull units, which had been
used to store fuel off Singapore.
VLCC and Suezmax tonnage together
accounted for just over half of the total at 4.4
mill dwt. The VLCC Samho Crown was just
over 18 years old when sold to breakers in July
last year, while the largest tanker sold was the
Shinyo Splendour. They both ended their days
on a Pakistan beach.
There were eight Suezmax sales, while
Aframax/LR2s numbered 25 at an average age
of 22.9 years, accounting for another 2.3 mill
dwt of the total tonnage broken up. The
number of MR/Handysize vessels sold for
breaking fell by 13 to 23, compared to 2013,
while Panamax/LR1 disposals totalled 10.
Pakistan once again was the favoured
destination, taking half of the vessels- 31 units
of 4.4 mill dwt. China gained second spot with
1.4 mill dwt, while Bangladesh was third at 1.1
mill dwt, which was less than half of the
country’s 2013 total.
Of course tanker removals are not just
confined to the demolition sector, as last year,
six VLCCs and a Suezmax were sold for
conversion projects, accounting for an
additional 2 mill dwt.
Gibson admitted that trying to forecast tanker
removals this year could be challenging for
analysts. The oil price fall effect has already
been seen in the offshore market., which could
curtail FPSO/FSO projects going forward.
In addition, the tanker market’s recent
strength could give a new lease of life to many
potential scrap candidates, as well as increase
asset values. Lightweight prices on the subcontinent continued to spiral downwards at the
time of writing, although no tanker sales have
been seen to test the market.
This year could be challenging for tanker
demolition.
TO
05
INDUSTRY - US REPORT
US crude exports and
the tanker market
US policy makers are considering allowing domestic crude oil exports, which have been
prohibited since 1975. If permitted, US crude exports could have a significant impact on
both movements by Jones Act tankers, as well as the international fleet.*
lthough US crude oil export
restrictions were in place even
earlier, the main barrier to crude
oil exports is contained in the
Energy Policy and Conservation Act of 1975.
That Act prohibited crude oil exports except
where the President determines it is in the
“national interest.”
In contrast, US refined product exports are
generally permitted. The Export
Administration Act of 1979 granted authority
to the US Government to restrict exports of
refined products. But these restrictions were
lifted in 1981 - except with respect to Naval
Petroleum Reserve derived products.
There are current exceptions to the US
crude oil export ban. Oil can be exported to
Canada, for example, pursuant to a license if it
is to be used there, or refined and re-exported
to the US. Oil shipped through the TransAlaska pipeline (TAPS) can also be exported,
but only under certain conditions and most
particularly in a US-flag tanker - although the
vessels can be constructed outside the US.
Certain swaps of oil are also permitted and
there are other narrow exceptions.
This 1970’s era policy did not come into
focus as an issue until the US shale oil boom
began to create a glut of certain types of oil
A
and in certain regions. The discount between
oil sold at the Western Texas Intermediate
(WTI) price and the international Brent price
in particular has spurred examination of ways
around the ban and consideration of changing,
or eliminating the ban entirely.
Much of the technical focus on the ban has
been on the regulatory definition of ‘crude
oil.’ As defined by the US Commerce
Department, crude oil is “a mixture of
hydrocarbons that existed in liquid phase in
underground reservoirs and remains liquid at
atmospheric pressure . . . which has not been
processed through a crude oil distillation
tower.”
One thing that has caused consternation is
that lease condensate, a very light hydrocarbon
liquid, is defined as ‘crude oil’ by the US
regulations – and so cannot be exported except
in the case of an exception. But, as soon as
condensate is processed through a crude oil
distillation tower and meets a number of other
factors, such as whether the process materially
transforms the crude oil, then it is not ‘crude
oil’ and can be exported.
The US Commerce Department issued a
widely publicised ‘frequently asked questions’
on 30th December, 2014 to help, but the range
of factors listed for determining whether lease
condensate is no longer ‘crude oil’ may only
have confused matters further. There has been
understandable confusion particularly since
individual rulings indicating what is and what
is not exportable lease condensate have not
been made publicly available.
Refinery boon
The current ban has been a boon to the US
refineries, which have been able to replace
foreign sources of crude oil with cheaper
domestic crude even taking into account
pipeline, railroad, storage and tanker
bottlenecks.
The ban has also been a boon to the US
tanker market, as crude oil produced
domestically has to be moved in the US –
whether overland by pipeline, truck and rail,
or seaways, by tank barges, or deepsea
tankers. The Jones Act restricts the movement
of any ‘merchandise,’ including crude oil and
refined petroleum products, from one point to
another point in the US to domestically-built,
US-flag, US citizen owned and operated
vessels.
There have been reports of MR-sized Jones
Act tankers commanding rates as high as
$120,000 per day for a year’s timecharter by
major oil companies. Although there are
The US flag, OSG-managed Jones Act MR Overseas Chinook has been converted into a shuttle tanker.
06
Photo credit - OSG.
TANKEROperator March 2015
INDUSTRY - US REPORT
currently a number of MR Jones Act tankers
on order, these rates appear likely to remain
strong.
Much of the US domestically-sourced crude
has been exported as refined petroleum
products, which has provided a freight rate
bottom for the international MR tanker market
in the Atlantic basin. However, given the
level of tonnage oversupply in the
international tanker market, the benefit of
increased petroleum exports has not been as
pronounced on the foreign-flagged tankers as
on the Jones Act vessels. Overseas flagged
MRs have been earning on average less than
$20,000 per day in the international tanker
market.
The high Jones Act tanker rates has led to
some thinking about offshore refining, or
blending. Under US Customs and Border
Protection rules and precedents, merchandise
which leaves the US and is converted into a
‘new and different’ product onshore can be
shipped to the foreign destination and back in
non-Jones Act vessels. It has been well
known since at least the 1970s that US origin
crude oil could be shipped to an overseas
refinery and refined into gasoline and other
products without Jones Act implications.
In the spring of 2014, US Customs issued a
ruling indicating that offshore blending
without any refining converted the US source
components into a ‘new and different’ product.
Since then, US Customs has been reluctant to
provide further specific guidance on what
onshore changes must occur for blending to
result in a ‘new and different’ product, thus
leaving the issue muddled.
Not being enamoured of getting a discount
to the international price of crude oil, many
US upstream producers of oil have begun to
lobby to lift the ban on crude oil. Although
the ban can arguably be lifted by the Obama
Administration under existing authority
without any change in the law, the Commerce
Department has not shown a desire to make
any move in that direction.
So, the focus of activity has shifted to the
US Congress. The first Congressional hearing
on potential crude oil exports was held on
30th January, 2014 and testimony was taken
both for and against relaxing the ban.
US domestic policies will likely hinge on
whether the American public can be convinced
that retail gasoline prices will benefit, or
remain unaffected by the lifting of the crude
export ban. If the average consumer becomes
convinced that they will pay more when there
are crude oil exports with the benefits going
largely to US energy companies from such a
policy change, then many politicians may turn
March 2015
TANKEROperator
against lifting the ban.
During the last 12 months, a number of
studies have been released analysing the likely
price effects, including several finding that
lifting the ban would lead to a modest
reduction in US retail gasoline prices. These
studies, however, and much of the lead up to
the current debate, were undertaken before the
worldwide crude oil price plunge.
Perhaps the leading opponent of relaxing
the ban is a group of independent US
refineries. They have argued that it would be
unfair for foreign refineries to be able to
purchase US crude at a delivered price lower
than the domestic delivered price on the back
of the high cost of Jones Act tanker charters.
The result has been a coming together of the
crude oil export ban with Jones Act reform
discussions with some interests arguing that
the ban repeal should go hand-in-hand with a
Jones Act repeal, or modification.
Amendments proposed
In the context of the Keystone pipeline
legislation considered by the new US
Congress, amendments were offered, but not
voted on, both to modify the Jones Act (by
Sen John McCain) and to repeal the crude oil
export ban (by Sen Ted Cruz). Similar efforts
can be expected to surface throughout the next
two years.
Although the last two US Congresses have
famously been unable to accomplish much of
anything, the new Republican control of the
US Senate when combined with Republican
control of the House of Representatives could
result in more legislating. This may be the
case in the energy area, as both political
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INDUSTRY - US REPORT
parties appear to have objectives that could be
moulded into compromise legislation.
Of particular importance is Sen Lisa
Murkowski of Alaska. She is the new
Chairwoman of the Senate Energy Committee
and has made it clear that eliminating, or
reforming a crude oil export ban is one of her
top legislative priorities for the 114th US
Congress.
The impact of any change in the crude oil
export ban is hard to predict. There are several
scenario permutations to be considered. Most
likely, crude oil exports will occur on
international flag tankers, which would likely
be a positive development for the international
tanker market overall unless some US-flag
requirement is attached to the exports. Such a
requirement has been proposed by US-flag
interests in the context of the US Maritime
Administration analysis of a future domestic
maritime strategy.
Depending on the location of the buyers,
different tanker segments would stand to
benefit to varying degrees; Aframax and
Suezmax markets will likely benefit the most
if European refiners are to replace West Africa
and Middle East high quality crude oil imports
with equally high quality US produced crude
oil, while the VLCC market will be the
greatest beneficiary if China is to be the
biggest buyer of US crude.
Lifting the ban on exporting US crude will
also benefit the international crude oil tanker
market by potentially and paradoxically
increasing the US crude oil imports: as WTI
oil will be priced for the international oil
market (possibly erasing the price discount
due to the export ban). US refineries will opt
to purchase crude oil grades –whether
domestically or internationally – to maximise
their refinery margins, which could boost
import crude oil volumes, primarily from
Venezuela and other producers of hugely
discounted heavy and sour crude oil.
The lifting of the export ban may have a
negative impact on the Jones Act tanker
business in terms of market activity and
freight rates, as domestic crude oil reaching
(predominantly) the US Gulf Coast by pipeline
can be loaded on foreign-flagged vessels and
shipped overseas (assuming no US-flag
requirement). Even if there is only a partial
lifting of the ban, some ‘leaking’ of domestic
oil to the international market may have an
impact on the Jones Act tanker trades given
the outstanding orderbook and the heavy
investments in rail tanker car ordering and
pipeline construction.
More attention has been put on the US
crude oil export ban in the last six months than
probably has occurred in the almost 40 years
during which the ban has been in effect. It
remains to be seen, however, whether US
domestic politics will align with the broad
support for lifting the ban and whether there
will be a legislative opportunity for the ban to
be modified, or lifted.
TO
*This article was written by Charlie
Papavizas, Partner and Chair of the Maritime
& Admiralty practice of Winston & Strawn
LLP based in Washington, DC. He can be
reached at (202) 282 5732, or at
[email protected] and Basil
Karatzas, CEO of Karatzas Marine Advisors
& Co, a shipbrokerage and shipping finance
advisory firm based in Manhattan. He can be
reached at (212) 380 3700, or at
[email protected]
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INDUSTRY - US REPORT
Jones Act safe for now
Keystone XL Pipeline project has been approved. Jones Act held in place.
he US Government has approved
the Keystone XL Pipeline*
legislation without an amendment
to repeal the Jones Act.
This move was welcomed by the American
Maritime Partnership (AMP), an organisation
representing the domestic maritime industry,
as repealing the Jones Act would have
decimated the nation’s shipbuilding capacity
vital to America’s national, economic and
homeland security.
“The decision not to offer or vote on the
amendment to repeal the Jones Act on the
Keystone XL Pipeline legislation, an
amendment that relied on flawed data and
factual omissions, showed that it would have
been overwhelmingly defeated because of the
law’s rock solid support in Congress,” said
Tom Allegretti, AMP chairman. “This was not
surprising considering it was just one month
ago (December) that Congress enacted its
T
strongest legislative endorsement of the Jones
Act in memory.”
The amendment in the Keystone legislation
had been proposed by Senator John McCain.
The Jones Act requires vessels in domestic
waterborne trade to be owned by US citizens,
to be built in the US and be crewed by US
seafarers.
According to US sources, there are currently
117 shipyards in 26 states, which employ
about 110,000 workers. The total of direct and
indirect shipyard jobs, however, is closer to
402,000 and they provide about $23.9 bill in
income and add $360 bill to the US GDP.
The US Senate passed a bill in January
allowing for the construction of the Keystone
“
The decision not to offer or vote on the
amendment to repeal the Jones Act on the
Keystone XL Pipeline legislation,........
because of the law’s rock solid support in
Congress,
Tom Allegretti, AMP chariman
”
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TANKEROperator March 2015
INDUSTRY - US REPORT
Visit KROHNE Marine at
Nor-Shipping, Oslo, 02–05 june,
hall C, booth C05-21
Monitoring of liquids
is in safe hands
The route of the proposed Keystone XL Pipeline.
XL oil pipeline, but an amendment filed by Senator John McCain
seeking to repeal the US build requirement of the Jones Act was not
attached.
Senators voted 62-36 to pass the Keystone XL pipeline bill, despite
repeated veto threats from the White House.
After the bill passed an initial Senate hurdle in early January,
Senator McCain filed an amendment to the bill that sought to repeal
parts of the Merchant Marine Act of 1920 - the Jones Act.
Senator McCain argued that the Jones Act is an “antiquated law”
that hinders free trade and raises prices for American consumers. In
December, McCain vowed to eventually fully repeal the Jones Act,
despite strong opposition. “It’s one of these things you just propose
amendments to bills and encourage hearings and sooner, or later, the
dam breaks,” McCain said after a speech at The Heritage Foundation,
a conservative think tank, reported US media, including online
newswire gCaptain.
When McCain made his move, he cited the Congressional Research
Service, which found that the price of moving crude from the Gulf
Coast to the US Northeast on a Jones Tanker is three times higher than
if using a foreign-flagged tanker.
Losing the protections the Jones Act would, according to a
statement by Jacksonville, Florida-based Crowley Corp, an operator of
US flag tankers, “undermine American safety and security interests,
and eliminate thousands of American jobs.”
TO
*The Keystone XL Pipeline is designed to connect up the Keystone
Hardisty oil terminal in Edmonton, Canada to the central US states
and eventually to the US Gulf at Houston. It will eventually allow both
Canadian and US crude oil to flow across country to the East and
South.
March 2015
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INDUSTRY - SHIPMANAGEMENT
Stronger focus
needed on board ship
There should be more focus on the existing installations on board ship and a stronger
focus on daily monitoring of the vessel’s performance.
ccording to Thome
Shipmanagement’s general
manager Stig Holm, this will be
necessary due to the current low
oil prices. He said that there would be a less
competitive impact of the new generation of
Eco vessels coming on stream.
He was speaking at Tanker Operator’s
January 2nd Eco Tankers Conference held in
Copenhagen in January at which Holm also
called for greater crew education and training,
saying that seafarers should be able to react
within three hours of a report instead of one
month later.
Fuel optimisation and energy audits were
also important. Thome undertakes these audits
with TechConsult and the findings included
leaking steam traps, running main engine
lubeoil pumps during port stays, plus the
unnecessary heating of the bunker tanks.
He gave an example of steam traps leaking
between 20-80 kW of power, which would
equate to $48-$192 per day, or $17,250 $70,080 per year, which could be saved. As
for the main engine lubeoil pumps in operation
during port stays, at 65 kW this will account
for $156 per day, or about $14,000 per year,
while unnecessary heating of the bunker tanks
holding 450 tonnes of fuel could amount to 30
litres of fuel oil heating equal to $500 per day.
The shipmanagement concern is also
involved in an initiative called the Energy
Data Acquistion Template - a joint venture
with Den Danske Maritime Fond,
TechConsult, Force Technology and Thome.
This project will look at a vessel’s future
technical and operational profile, plus its
trading patterns.
He said that today, energy management was
much more analytical than before and is an
integrated part of the planned maintenance
function on board ship. For example, internal
training is undertaken of the engine room
personnel by energy saving experts.
Holm also thought that some of the
equipment on board a vessel was “too poor”
for the job in hand and called for less ‘high
end’ solutions, but for more sophisticated
A
12
measuring equipment to be placed on board,
plus support from shore-based experts.
Thanks to another project, Thome has
claimed to have become self-sufficient in
recruiting junior officers on the back of an inhouse cadet training programme.
Launched in 2005, under the company’s
‘Human Element’ initiative, the Thome Global
Cadet Programme has already trained more
than 1,350 cadets from at least 12 countries in
Asia, Europe and the Far East.
At the end of January, there were 650 cadets
at various stages of training in the programme
with another 200 due to join soon as deck,
engine, electrical, or catering cadets.
Vacancies filled
The success of this scheme has enabled
THOME to fill all of its 2014 junior officer
vacancies from within its own pool of trained
seafarers, the company claimed.
Michael Elwert, director of group HR,
HSSEQ & crewing, said: “We place a great
deal of importance on our cadet programme
and are delighted that it is proving so
successful.”
“We at Thome Group recognise the
importance of providing quality training to our
seafarers and the difference it makes towards
them and ultimately the performance of the
vessels they operate.
“We believe that training is the key to
operating safe and efficient ships on greener
seas. The level of training we provide is
specialised and is over and above the standard
recommended by STCW,”he said.
Sartaj Gill, deputy managing director
(ROHQ) & head of group training, explained:
“As Thome Group continues with the largescale and rapid expansion of its fleet, the
requirement for suitably trained officers to
serve on board our tankers, bulkers, gas
carriers and offshore has increased
exponentially.
“Our cadet programme has a robust
selection process to ensure we recruit well
rounded, excellent individuals who benefit
from our high quality coaching. Our cadets are
Thome’s Stig Holm.
a multi-national and multi-cultural group, fully
representative of the diversity with THOME
Group. The feedback we have received from
our cadets is that they view our training
programme as a successful highway to
fulfilling their dreams and goals,”he claimed.
In addition, THOME Group has claimed to
become the first shipmanagement company to
achieve Eco-Office (formerly Green Office)
certification in Singapore.
The company has successfully completed an
environmental audit throughout its Singapore
offices to achieve Eco-Office status, which is
regarded as the strictest of its kind in
Singapore corporate circles.
Thome Group president, Claes Eek
Thorstensen, said: “We are proud of this award
but with pride comes responsibility,
particularly since we are the first in our sector
to achieve this certification. We owe it to
ourselves, the marine fraternity in Singapore
and also to our stake holders around the globe,
to continue to uphold these high
environmental standards.”
Eco-Office is a joint initiative between
Singapore Environment Council (SEC) and
City Developments Limited (CDL).
One of the key elements of the project is the
online Eco-Office rating system, which
enables offices to perform a self-audit based
on supplied metrics, such as corporate
environmental policy and commitment,
purchasing practice, waste minimisation
measures and levels of recycling.
TO
TANKEROperator March 2015
INDUSTRY - SHIPMANAGEMENT
Data should be
evaluated properly
Sverre Patursson Vange, head of performance management at Lauritzen Kosan,
speaking at Tanker Operator’s Copenhagen conference, said that there was a
lot of data available, but the problem was that it was not merged.
auritzen Kosan employs two
persons full time on vessel vettings
and audits and the whole
organisation, as well as the crew on
board is evaluated. Vange said that the
stakeholders were taking an interest in a
vessel’s performance, as well as the
company’s top management and technical
department.
The vessels are monitored on a daily basis
and the data is updated, or re-configured every
night, he explained.
He then outlined what performance data was
needed, what would be nice to have, what do
we have and what can be retrieved.
Vange said that the minimum data required
were speed, consumption, vessel condition
(ballast, or laden), plus weather data. This is a
“must know” in case of a commercial dispute,
such as related to a charterparty and this also
enables the simple evaluation of ‘raw’ vessel
performance.
Lack of quality and accuracy can limit the
evaluation’s reliability, however, a more
detailed analysis of vessel performance
requires more data, such as Trim.
Propeller - rev/min, torque and pitch for
those vessels fitted with a CPP.
Main engine - rev/min, load percentage,
lubeoil consumption, turbocharger speed,
etc.
Consumption and production of auxiliaries,
cargo plants, PSA plants, etc.
Some data might be available but just not
used, such as detailed data from weather
service providers, which can be obtained
based on time and position; plus main engine
performance reports, which maybe sent at
regular intervals, but is not gathered, or
trended, either on board, or in the office.
Another example of data not used is oil
sample analysis reports, which are just
archived in the mail system, he warned.
He suggested that managers should compile
an overview of what is available and what
L
Lauritzen Kosan’s Sverre Patursson Vange.
eventually might be needed.
KPIs
Vange then addressed the establishment of
KPIs, asking - what can be measured and what
makes sense?
As for fuel efficiency KPIs, he outlined the
following Fleet fuel efficiency - fuel used per unit
transport work (gt/nm), pseudo EEOI.
Vessel speed loss - deviation from expected
speed for given consumption.
Master - slip, deviation from theoretical
propeller distance to actual LOG distance.
Chief Engineer - SFOC, fuel used to
produce power (g/kWh).
There are many more relevant KPIs, such as
vetting, deficiencies, crew related findings,
technical management, off service days (either
scheduled, or unscheduled), overdue
maintenance jobs, OPEX, HSSEQ, near miss
frequency, HR and officer retention rate.
He said that most of the information is
readily available but just tedious to collect and
present in a meaningful way.
When establishing a performance
management system, the data should be
accessible and clear. He suggested identifying
the sources of data; have mail queues, or
archives with standard reports; excel
spreadsheets maintained regularly and
programs used on board, or ashore.
Basic software/programming skills will be
needed, especially SQL, he advised. The data
should be copied from the various sources on
a regular basis, preferably each night and data
should be enriched where possible. The
weather information should be based on time
and vessel’s position and avoid using old data
from sold vessels.
Redundant data should be filtered from
different sources and the most reliable
identified, vessel performance data should be
normalised with respect to weather and the
data should be restructured and all the relevant
spellings of vessel name, crew, port, etc, are
identical, while the data should be split into
the lowest unit of interest to the recipient, ie
year/month/week/day/hour and/or minute.
The users should be identified, along with
the various types of users and finally,
automate the reporting style, he concluded.
TO
14
TANKEROperator March 2015
INDUSTRY - SHIPMANAGEMENT
Vessel performance
equals pool points
An interesting perspective on shipmanagement from a commercial viewpoint was
recently given by Micheal Rasmussen, head of performance at
pool manager Hafnia Management.
t Tanker Operator’s Copenhagen
conference, he gave an insight
into performance management
from a commercial perspective.
He explained that from the outset, the
company wanted to have a direct link with the
pool vessels’ commercial value. The goals
were set out by the various owners, who made
up the pool’s board of directors and to put it
simply - be as profitable as possible.
To start with, as no historic data was
available, Hafnia took a ‘top down, bottom up’
view of the operation and started to collect
data from day one, which was collated by the
operations department and collected by a
weather service provider.
After six months of collecting information,
A
Hafnia had a very small data set - a total of 10
units in each of the two segments looked at.
Following another six months, it was realised
that the dataset was not set out in a usable
format.
Hafnia then identified the variables in its
business and from a commercial outlook. The
most important were Time (speed-seagoing).
Costs (bunkers -seagoing with main engine
and auxiliaries).
In port bunker consumption.
It was found that the balance was more or less
equal, but it was not being monitored.
Pool points model
Hafnia then produced its own performance
Poo
o l Point Model
From a Commercial aspecct
Voyage Estimate: Chartering
calculation based on vessels
T/C or actual consumption
Matrix.
Proceeding order basis
Ch
hartering Calculation.
2
1
Performance
data
Evaluation
and Analysis
5
6
Distribution
Pool Points
8
7
Collection and compiling of Noon
reports. Voyage performance
compared to the Index.
4
No
oon Report form the
vessels stating daily Speed &
co
onsumption.
3
Hafnia’s Michael Rasmussen.
model, which is also today the basis for vessel
pool points. It is based on the philosophy
behind ShellTime IV and is input into an
Excel system.
Based on this dataset, Hafnia is able to see
the compliance with the vessel’s specific speed
and consumption instructions, vessels’ trading
patterns, the precise consumption figures
based on historical data and the performance
in good and bad weather, thus ensuring the
vessel adheres to the charterparty
specifications even in bad weather.
Rasmussen explained that this system
captures the relevant variables, which were
identified in accordance with the pool
agreement. He explained that the goal was that
the pool points reflected the capabilities of the
individual vessel through - transparency,
fairness and the value to the pool. He also said
that if there was a requirement for additional
monitoring, this would be up to the owner to
individually set up.
Each owner with a vessel(s) in the pool can
log into the data system and they are also
automatically sent a copy each month. Every
six months, the data is analysed, which
Rasmussen pointed out did not entail a lot of
work as the data was ongoing continuously.
The vessel performance data makes up the
basis for the pool points, which affects how
much money each vessel earns.
TO
March 2015
TANKEROperator
15
INDUSTRY - SHIPMANAGEMENT
Ships’ agency vital to
commercial
management
Consistent service standards and a global network are helping to keep Wilhelmsen Ships
Service (WSS) ahead of the pack in Singapore’s choked ships agency market.*
recognised player in this key
maritime hub, WSS has
consistently developed and
refined its ships agency services
in order to keep pace with an ever-changing
market and an ever more focused portfolio of
global tanker customers.
Handling almost 4,000 port calls in 2014 for
an established international customer base
Jason Chin, WSS’ Ships Agency Service
Manager, explained what he and his team
provide tanker owners and operators calling at
the increasingly congested port.
“WSS is one of the largest suppliers of ships
services in Singapore, providing a wide range
of ships agency and husbandry solutions, from
crew changes, bunkering, repairs and general
supplies to customs clearance and arrival and
departure reports.
“A port such as Singapore is never closed,
and neither are we. Our port agents work in a
24/7/365 operation in every sense of the
word,” he said.
Which is good news, as Chin and his
agency team’s workload looks set to increase,
as Singapore’s vessel traffic continues to grow.
Encouraged by the drop in oil price, rising
demand in Asia for cheaper fuel has both
transformed tanker rates and increased traffic
bound for the East. Singapore is a key
benefactor of this growth in tanker traffic.
For example, the Maritime and Port
Authority of Singapore (MPA) statistics
showed that oil cargo handling at the port was
steadily increasing. In addition, preliminary
numbers for the start of 2015 for all three
tanker segments, oil, chemical and LNG/LPG,
showed positive growth.
Benefiting from ongoing local and regional
terminal developments, such as the completed
expansion of the Tankstore Terminal in Pulau
Busing and the soon to be completed Vitol
Tank Terminal International at Tanjong Bin,
Malaysia, the outlook for Singapore’s tanker
A
16
WSS’ Jason Chin.
traffic appears to be positive.
However, Singapore’s steadily increasing
vessel numbers, pose a unique challenge for
the largest player in the agency market. As it is
not just the quantity and range of services,
which Chin believed set WSS apart from the
numerous local agency competitors in
Singapore, it’s the quality WSS consistently
delivers.
“It’s essential that we can offer a marketleading service, which differentiates us from
local competition. By benchmarking our
service levels with the rest of the WSS
network we ensure that our service quality is
world-class and above all, cost-effective,”
Chin said.
Adapting and re-designing that service to
the real needs of the modern market enables
WSS’ customers to conduct their business
efficiently, consistently and importantly for
many of their international tanker customers,
globally.
Offering customers one single point of
contact, located in the local tine zone and
speaking the same language, helps to simplify
multiple port calls.
Providing a transparent pricing structure,
electronic disbursement accounts and just one,
do-it-all bank account for all port call
transactions, also helps streamline what can
often be an unnecessarily complex and timeconsuming process.
Committed to improving and standardising
the services, re-defining what ships agency
can offer its customers, regardless of the
challenges posed by vessel volumes or local
competition Chin is confident WSS can
succeed.
“My task is to ensure that we can continue
to work with our customers to provide those
high levels of service for which we have
become known throughout the industry, ” he
concluded.
TO
*This article was written with the help of
Jason Chin, Ships Agency Service Manager,
WSS Singapore.
TANKEROperator March 2015
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INDUSTRY - SHIPMANAGEMENT
BSM -safety,
reliability and
efficiency in the
tanker sector
Standfirst---With a change of leadership at the end of last year, Tanker Operator looked
at the scope of Bernhard Schulte Shipmanagement (BSM) today in the tanker sector.*
anuary saw the start of a new era at
BSM with Capt Norbert Aschmann
succeeding Rajaish Bajpaee as CEO
to lead the next phase of the
company’s growth, with a clear emphasis on
J
18
maximising the availability, safety,
reliability and operational efficiency of ships
under management.
Today, BSM has 150 tankers under technical
management - a mixture of gas, chemical,
product, oil up to VLCCs. They are managed
across various BSM ship management centres,
but primarily from Singapore, UK and Cyprus.
BSM also has its own training centres
worldwide and for specific tanker seafarer
TANKEROperator March 2015
INDUSTRY - SHIPMANAGEMENT
training, the centres in Cyprus, Mumbai and
Manila have comprehensive cargo and ballast
system simulators, covering oil, chemicals and
LNG/LPG cargo handling.
Training at all levels
Training is delivered at all levels, for cadets
through to junior officers and senior officers.
Where appropriate, the courses are approved
by local administrations.
BSM operates a comprehensive cadet
programme and invests strongly in the
professional development of its seafarers, the
company told Tanker Operator. “We continue
to attract good competent tanker officers and
crew, where necessary, to supplement our own
talent pipeline,” the company explained.
Turning to operating efficiency, BSM has
established a dedicated ‘energy efficiency’
function in the group responsible for voyage
optimisation and has implemented KPIs both
ashore and afloat to further enhance the
operational efficiency of the organisation,
focused on delivering best value for money for
its clients.
BSM further explained that the majority of
its shipowner clients recognise the benefits of
investing in energy optimisation
equipment on board the vessels, in
line with achieving environmental
sustainability and corporate social
responsibility goals, together with
their economic advantages.
Answering the question
regarding the future of third party
shipmanagement concerns and
further opportunities going
forward, BSM said; “With a
continuing emphasis on the safe,
reliable and efficient operation of
ships, opportunities exist where an
owner’s primary focus of activity
is not on shipmanagement, or
where a strategic decision has been
BSM’s new CEO Capt Norbert Aschmann.
taken to outsource to benefit from
the capabilities, scope and
further in line with market and client
economies of scale that high quality third party
requirements and the group’s growth
shipmanagers are able to provide.”
TO
objectives, the company concluded.
As for the future of value added services,
BSM said that as the group already offers a
broad range of services that enable it to
*A profile of BSM will appear in a future issue
provide comprehensive shipmanagementof Tanker Operator with a view to learning
related solutions, BSM will continue to
where the group would like to be in a few years
innovate, develop and broaden these services
time.
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March 2015
TANKEROperator
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INDUSTRY - ANTI-PIRACY
Protecting the citadel
from attack
With the increase in the passive protection of vessels against the threat of piracy, there
are many different systems now on the market.
hese range from simple razor wire,
flares, water canon, detection
devices, etc, to full blow citadels.
For crew protection, citadels are
recommended, which can be located in almost
any enclosed room fitted with watertight doors
on board a vessel.
One of the problems to be overcome is the
virtual sealing of the citadels from attack. A
few years ago, UK-based Intelligent
Engineering’s SPS Citadel Access Protection
introduced a final barrier aimed at delaying
and deterring pirate attacks.
SPS* protection panels are specifically
designed to create a formidable final barrier to
prevent unauthorised entry. The panels are
usually fitted about 125 mm inside the existing
doorway and can be installed in newbuildings
and vessels already in operation.
Ian Nash, responsible for marketing the
system told Tanker Operator that watertight
doors open outwards instead of inwards like
normal doors. He said that standard watertight
doors were quite easy to pass through as their
hinges were exposed on the outside.
He described a typical citadel as an ‘onion’,
which has six or seven layers. In shipping
terms, these can include anti-pirate
T
...from the outside.
20
intelligence, crew training for an emergency,
insurgent detection and communications alerts
for support. Inside the citadel, a first aid box,
water, plus enough food for a few hours, can
be stored.
The SPS system includes a solid steel
frame, specially designed panels and clamps.
The steel frame is claimed to be easy to install
by the crew in situ, following the instructions
given, or by specifically trained engineers
supplied by SPS, in around 10 hours.
SPS panels can be stored beside the door,
ready for use, Nash explained, as they can be
installed in 60-90 secs by the crew, as the
panels can be slotted into position, secured by
tightening tommy screws located in the
clamps.
Fully welded
The frame is fully welded around the existing
doorway and the SPS panels are then secured
against the frame using specifically designed
clamps fitted on the top and to the side. The
barrier can take the form of a single hinged
SPS door, or the interlocking panels, which
can be put into position via clamps. Once
installed, the barrier forms a surface with no
attachments, such as hinges, or pinch points.
When closed, the SPS barrier can withstand
much higher impact loads than equivalent steel
structures, giving protection against ballistics
and shrapnel damage. In addition, European
Standard FB6 ballistic compliant panels made
from hardened steel are available. Nash
claimed that the panels were six times stronger
than their steel equivalents.
On a recently installed doorway, an SPS
client tested the door by repeatedly
hammering/stabbing the panels with 5 kg
sledge hammers, picks and pikes. The panels
proved extremely resilient, resisted
indentation, remained flat and secure after
multiple attacks, it was claimed.
In addition, ballistic tests conducted at
military facilities in the US, UK and Japan
demonstrated that SPS structures outperform
steel structures, the company said. Ballistic
tests by QinetiQ (UK) indicated that the risk
of penetration from projectiles is reduced by
Citadel door from the inside...
75% and that these projectiles are stopped at
higher angles of attack. The test series also
demonstrated that SPS panels reduce the risk
of fragmentation (scab) from the outside
surface of the panel, which is a common cause
of injury to personnel and damage to property.
Nash said that around 75 systems have been
deployed with one oil major retrofitting all 60
vessels in the fleet, including those bareboat
chartered-in. The system comes at a relatively
low one-off cost, compared to the use of
armed guards. For example, for four panels
locked into a frame, the total cost would be
around £2,500, while a bespoke door would
cost about £3,000
The system comes in three different size
ranges with five panels and wider panels
available, if required.
TO
Footnote *SPS is a patented sandwich plate system ,
which is a structural composite material made
up of two metal plates bonded with a
polyurethane elastomer core. It delivers high
strength, superb impact resistance and
enhanced stiffness making it a more robust
alternative to conventional stiffened steel
structures, Intelligent Engineering said
TANKEROperator March 2015
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TECHNOLOGY - CHEMICAL/PRODUCTS TANKERS
Super efficient MR
delivered
Stena Bulk has taken delivery the first of 10 MRs, which is claimed to be among the most
fuel efficient chemical/products tankers on the market.
he first of the so called
IMOIIMAX-type - Stena
Impression - is a product of
Guangzhou Shipyard and is a
50,000 dwt MR type designed to transport
vegetable oils, chemicals, as well as clean and
dirty petroleum products.
Ordered in 2012, this vessel and her sisters
are fitted with 18 tanks each with a maximum
capacity of up to 3,000 cu m under the IMO
type II ruling for chemical carriers. These are
made up of 16 cargo tanks and two slop tanks
per vessel. There is also a residual tank fitted.
The remaining nine tankers will be delivered
through 2017. The tankers will be split between
the UK and Bermuda flag administrations.
Developed in a joint venture between Stena
Teknik and the shipyard, a number of
innovative technical solutions have been
implemented, which when added together and
sailing at the service speed, result in 10-20%
lower fuel consumption, compared with other
vessels of the same size, Stena Bulk said.
T
IMOIIMAX Series Ownership Profile
Name
Owner
Stena Impression...........................................................Stena Bulk and GAR
Stena Image....................................................................Concordia Maritime
Stena Imperial.................................................................Stena Bulk and GAR
Stena Important..............................................................Concordia Maritime
Stena Imperative............................................................Stena Bulk
StenaWeco Impulse.......................................................Stena Weco
Stena Imagination..........................................................Stena Bulk and GAR
Stena Immortal...............................................................Stena Bulk and GAR
Stena Immaculate...........................................................Stena Bulk and GAR
Stena Impeccable...........................................................Stena Bulk and GAR
Stena Impression is owned by a joint venture
of which Stena Bulk and Golden Agri (GAR)
each own 50%. The 10 IMOIIMAX tankers
will trade in Stena Weco’s global logistics
system, which already employs more than 50
vessels and they will be crewed and
technically-managed by Glasgow-based
Northern Marine - a Stena affiliate.
Some of the technical solutions fitted on
board that will result in more energy efficient
consumption and greater logistic flexibility,
include:
The Stena Impression and her sisters are fitted with many energy saving devices, as well as an aerodynamic accommodation block. Note
the offset stack.
22
TANKEROperator March 2015
TECHNOLOGY - CHEMICAL/PRODUCTS TANKERS
Flexibility is key
“Flexibility has been a key
consideration during the
development of the IMOIIMAX
concept. The configuration of
several small tanks provides
for considerable flexibility in
regards of cargo combination,
something that fits in very well
with our existing logistics
system. The fact that the
concept, with its many
innovative technical solutions,
will result in energy savings is
naturally a major advantage,”
said Erik Hånell,Stena Bulk
CEO.
Talking with Tanker Operator, Hånell
explained that the calculations on fuel
savings were taken at bunker costs ranging
from about $300 to $900 per tonne and
despite today’s fuel price in the lower
range, the vessels were a long term
investment of up to 25 years, during which
time the company expected bunker prices
to rise again.
Based on their design, new trades will
open up for the vessels going forward and
at an extra $2,000-$3,000 per day, the
return on investment would be seen in
about four to five years. He expected the
Main engine auto-tuning - with an autotuning system, the combustion process in
each cylinder is continuously automatically
controlled for optimal main engine
performance.
More efficient boiler with recovery from
multiple heat sources - the vessel is also
equipped with an exhaust gas multi-inlet
composite boiler, one of the very first to be
installed. This boiler not only recovers
demand for product tankers in all sectors
would create reasonable returns by 2017,
but that this year would be similar to 2014,
due to high vessel delivery rates.
He explained that the Stena Weco
operation was a joint venture concern
between two companies rather than a pool,
as both companies owned ships. The only
pool that Stena Bulk is currently involved
in is the Stena Sonangol Suezmax
operation. However, he said that the
company was constantly looking for other
opportunities to form partnerships. He
cited the Stena Weco joint venture
operation as a good example of a
successful tie up.
The company started its fuel
consumption programme about three years
ago and since then, has managed to save
around 5-10% of fuel per annum. He said
that this had been a continuous
development with both shore and vessel
personnel, as the vessels become more
sophisticated with monitoring and
development, leading to ongoing education
on how people act.
Hånell explained that Northern Marine
and Stena have a considerable training
budget for both shore staff and seafarers
with a clear focus on safety.
energy from the main engine’s exhaust gas
but also recovers the exhaust gas from the
auxiliary engines.
In addition the boiler has an oil-fired section
that can be used in port, thus avoiding the need
to run the larger oil-fired boilers to heat the
vessel. This, together with main engine autotuning and part-load optimisation of the
auxiliary engines, will result in very energy
efficient consumption.
Recovery of propeller energy loss - all
propellers lose some of the energy input in
the rotating water behind the propeller.
With the IMOIIMAX, the energy loss is
recovered by the fitting of a hub vortex
absorbing fin of the HVAF type supplied
by CSSRC.
Aerodynamic design of the accommodation
and bridge - in heavy weather, wind
resistance can be significant. The
streamlined design of the accommodation
and the bridge means that the IMOIIMAX
is less affected by wind resistance than
other similar vessels.
All of the cargo tanks are designed to carry
any type of cargo the vessel can transportthe IMOIIMAX has 16 cargo tanks of the
same size designed to hold a maximum of
3,000 cu m, ie, the maximum volume
permitted for the cargoes that the vessel
can transport.
Effective tank-cleaning system -the
flushing system installed ensures that the
cleansing process is optimised and since
four tanks can be washed simultaneously,
the time between discharge and loading can
be minimised.
Stena Bulk said that the IMOIIMAX project is
an important step in the company’s common
pursuit to create a more sustainable shipping
concept, combined with a flexible design to
offer customers better business solutions at
competitive freight.
The hull lines, engines and the propeller
were extensively tested in a towing tank, which
resulted in a well performing design. The
company claimed that no stone had been left
unturned to ensure reduced bunker
consumption, as the vessels are equipped with
the latest concepts in main and auxiliary engine
designs.
For the main propulsion plant, MAN Diesel
& Turbo’s (MDT) MAN6S50ME-B9.3 type
The aerodynamic bridge design can clearly be seen, as can the relatively clear deck space.
March 2015
TANKEROperator
23
TECHNOLOGY - CHEMICAL/PRODUCTS TANKERS
main engine was chosen, as it has a higher fuel
efficiency at part load operation, compared to
earlier versions.
IMOIIMAX is optimised to perform well
over a range of loading conditions and speeds.
The low load optimisation of the main engine,
which includes an exhaust gas by-pass,
contributes to an overall excellent performance,
the company said. With an MDT auto-tuning
system fitted, the combustion process in each
cylinder is continuously automatically
controlled for optimal engine performance in
all conditions.
Normally auxiliary engines are fuel
optimised for high load operation, rather than
part load operation. However, today part load
operations are becoming a higher percentage of
normal operations. For IMOIIMAX, the new
MAN auxiliary engines have been part load
optimised to improve their overall performance
and to reduce fuel consumption.
The vessels are fitted with an integrated
bridge systems that allows access of all
essential navigation information from
centralised workstations. System components
include two radars, three ECDIS, conning
display, two gyro compasses, auto pilot, two
DGPS, Navtex, speed log, AIS and an echo
sounder.
The series are also equipped with a Kyma
ship performance system for better and
efficient on board control of the equipment,
resulting in energy savings and thus reducing
the environmental footprint of the vessel.
Two Alfa Laval oil fired boilers provide for
flexibility and redundancy, which is of
particular advantage when carrying heated
cargoes. In many instances only part steam
heating capacity is required. In such cases,
both boilers can be run efficiently instead of
having only one big boiler operating at high
power, the company said.
The vessel is also equipped with an Alfa
Laval exhaust gas multi-inlet composite boiler.
This boiler not only recovers energy from the
main engine’s exhaust gas but also recovers the
exhaust gas energy from two of the auxiliary
engines. In addition the boiler has an oil- fired
section providing for an adapted steam
production to suit the vessel’s domestic steam
demand without the need to run the larger oil
fired boilers.
An IMOIIMAX can load a full IMO type II
cargo in each of the cargo tanks. A high
performing Jotun cargo tank coating will help
to ensure that the charterers will have the full
flexibility to carry an extensive range of
products and chemicals at the desired
temperatures, the company said. Jotun also
supplied the hull coatings.
24
PRINCIPAL PARTICULARS - IMOIIMAX
Classification.Lloyd’s Register 100A1, Double Hull Oil and Chemical
Tanker ESP, Ship Type 2, CSR, LI, IWS, ShipRight (CM, ACS(B)) LMC,
UMS, IGS, NAV1, IBS, ECO (BWT, VECS, IHM, TC)
Descriptive Note: ShipRight (SCM), Effective Tank Cleaning less than
4%.
Dimensions
Length, overall................................................................................183.2 m
Length, bp.......................................................................................178.5 m
Breadth, moulded...........................................................................32.26 m
Depth, moulded................................................................................18.2 m
Design draft, moulded........................................................................11 m
Scantling draft, moulded.................................................................12.9 m
Deadweight, design.......................................................................38,900 t
Deadweight, scantling...................................................................49,400 t
Cargo volume (100%).............................................................54,000 cu m
Cargo arrangements
Cargo tanks.........................................................16 COT + 2 slop + 1 res
Segregations, double valve..............................................................8+2+1
Tank coating......................................................................phenolic epoxy
Cargo pumps (deepwell)................................................18 x 375 cu m/hr
Tank cleaning...................................................................54 fixed nozzles
Tank heating..............................................steam heating coils SUS316L
Level gauging.............................................................................radar type
Machinery
Main engine..................................................................MAN 6S50ME-B9.3
Auxiliary generators..............................................................4 x 1,000 kW
Design speed...................................................................................14.5 kn
Propulsion fuel oil consumption, service...................................28 t/day
Domestic fuel oil consumption, normal at sea.............................3 t/day
Boilers...........................................................2 x auxiliary, 1 x composite
Fuel oil tank capacities
HFO............................................................................................1,050 cu m
LSFO.............................................................................................500 cu m
MDO............................................................................................. 480 cu m
MGO..............................................................................................120 cu m
Instead of simpler coated mild steel piping
with flanged couplings, the cargo piping is of
stainless steel in order to comply with FOSFA
recommendations and for the chemical trades.
The deepwell hydraulic FRAMO (Alfa
Laval) cargo pump system provides full
flexibility thus enabling all cargo pumps to be
run and controlled individually, at the same
time. Consequently, a high cargo discharge
capacity is offered together with a high degree
of flexibility of cargo circulation.
A nitrogen-based inert gas system is also
fitted to each tank. Clean nitrogen instead of
traditional inert flue gas will decrease the time
between discharge and loading, due to faster
tank cleaning. There is no need to carry
portable nitrogen bottles for purging and/or
cargo tank padding.
From a fuel efficiency viewpoint, inert gas
generation by means of a nitrogen generator is
also more fuel efficient, compared to a
traditional inert gas generator, Stena Bulk said.
The Scanjet tank cleaning system provides
for four tanks to be washed simultaneously
with heated, as well as cold sea and fresh
water. Fulfilling Lloyd’s Register voluntary
class notation Effective Tank Cleaning, the tank
cleaning machines have been arranged to
minimise the shadow areas, which maximises
efficient tank cleaning operations, in turn
minimising the time between discharge and
loading.
Following the naming ceremony held in
Singapore at the beginning of February, Stena
Impression sailed for the US with a cargo of
TO
palm oil.
TANKEROperator March 2015
TECHNOLOGY - CHEMICAL/PRODUCTS TANKERS
The tank segregations can
be clearly seen, as can the
aerodynamic bridge design.
March 2015
TANKEROperator
25
TECHNOLOGY - CHEMICAL/PRODUCTS TANKERS
Inerting chemical
tankers and other
issues discussed
The SOLAS amendments on inert gas systems for new chemical tankers was finally
adopted at the IMO’s MSC 93 meeting last June and will enter
into force on 1st January, 2016.
t is notable that the regulations contain
a provision for chemical tankers to have
the option to inert prior to discharge
rather than prior to loading, IPTA
general manager Janet Strode pointed out.
This was agreed in recognition of the fact
that the operational requirements on chemical
tankers are different to those on oil tankers,
most notably in that there are a great many
tank entries required on chemical tankers,
associated with the heavier tank preparation
and inspection requirements prior to loading
chemical cargoes, she advised.
It has also been necessary to take into
account cargoes that require oxygendependent inhibitors and in January, the IMO
sub-committee on Pollution, Prevention and
Response (PPR) at its second meeting agreed
to a unified interpretation in this regard. PPR
has replaced the BLG sub-committee in the
new IMO structure.
Apart from inert gas systems, the January
PPR2 meeting agreed to new entries to
MEPC.2/Circ on the provisional
categorisation of liquid substances in
accordance with MARPOL Annex II and the
IBC Code in its discussions on the evaluation
of chemicals safety and pollution hazards with
a view to preparing consequential
amendments
The sub-committee also said that it had
I
noted discussions within the ESPH group
regarding petrochemical mixtures submitted
for assessment under Annex II, but which
technically belong to Annex 1 substances. It
agreed to seek MEPC guidance on how the
products should be addressed by the ESPH
working group.
In addition, the meeting agreed to include a
generic entry for used cooking oil in
MEPC.2/Circ List 1 with validity for all
countries without and expiry date and noted
the ESH group’s progress regarding the
revision of the IBC Code’s Chapter 21.
As for the next meeting- PPR3,
provisionally scheduled for 15th-19th
February, 2016, the following list of subjects
will be reviewed by the chairman, taking into
account the submissions received on the
respective subjects where it affects the tanker
sector1) Safety and pollution hazards of chemicals
and preparation of consequential
amendments to the IBC Code;
2) Revised guidance on ballast water
sampling and analysis;
3) Production of a manual entitled ‘Ballast
Water Management – How to do it’;
4) Consideration of the impact on the Arctic
of emissions of Black Carbon from
international shipping;
5) Revised section II of the manual on oil
pollution contingency planning;
6) Guide on oil spill response in ice and snow
conditions;
7) Updated IMO Dispersant Guidelines;
8) Updated OPRC Model training courses;
and
9) Guidelines pertaining to equivalent
methods set forth in MARPOL Annex VI
Reg 4 and not covered by other guidelines.
Ms Strode said that she will be covering
issues, such as the review of the IBC Code, at
the IPTA/Navigate Chemical and Products
Tanker Conference in March.
Other subjects to be covered at the two-day
conference on 17th-18th, March, include Ballast water management.
Greenhouse gas emissions from shipping.
The case for operational efficiency
standards for international shipping.
Bunker quality and enforcement.
The shale gas revolution and its impact on
the chemical industry and global shipping
trends.
Product & chemical tanker market
overview.
Ship finance.
Middle East refinery review.
There is also an optional half day workshop
on 19th March looking in depth at the impact
of low price oil on shale gas, petrochemical
production and petrochemical shipping.
TO
Don’t forget ocean currents
Ocean currents can make, or
break the economies of an
ocean passage.
AWT’s services have long since evolved
beyond the optimal weather route for a
particular passage, Mike O'Brien, AWT’s
senior operations manager, said.
26
Besides maximum wind, sea and swell
conditions, AWT also examines speed, fuel
consumptions inside ECA/SECA zones, nonECA steaming speeds and a variety of other
constraints that are acceptable given the load
condition of the vessel.
However, ocean currents.are among the
most important factors to consider when
optimising a route. Their influence will vary
considerably based on several factors, but
most importantly the speed and heading of
the ship.
TANKEROperator March 2015
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TECHNOLOGY - SHIP EFFICIENCY
Voyage optimisation
supersedes
traditional weather
routing
While numerous weather routing service providers claim to save fuel and increase
maritime safety and schedule reliability, ships still founder and hundreds of lives
are put at risk. A significant improvement on this dated concept
comes in the shape of voyage optimisation.
study (MEPC58/INF.21) by the
IMO indicated that while weather
routing can achieve a 2-4%
reduction in fuel consumption and
associated greenhouse gas (GHG) emissions,
even greater improvements can be achieved
through technical and operational measures,
such as speed and route management and fleet
deployment planning.
Boeing subsidiary Jeppesen has launched the
Vessel and Voyage Optimization Solution
(VVOS) to deliver a return on investment that
is claimed to exceed traditional weather routing
methods. This article discusses the effects of
key issues in voyage optimisation.
The advent of supercomputers and numerical
models has significantly improved the accuracy
of weather forecasts over the past decade.
However, the accuracy of each model varies,
due to model resolutions, how the physics are
implemented and many other factors. The
national forecasting centres tend to calibrate
their models to perform better when storms
threaten their own countries, but pay less
attention to mid-ocean storms passing shipping
lanes.
None of the models can consistently produce
accurate forecasts for tropical cyclones, due to
their complex physics and rapid development.
Human forecasters are employed during the
typhoon, or hurricane seasons to issue track
and intensity forecasts based on consensus of
model outputs, as well as past experience.
Depending on the location and season, the
accuracy starts to deteriorate after three to five
days, leading to even larger uncertainties
between five and seven days.
Use of ensemble forecasting allows the
quantifying of the uncertainties in the
A
28
Figure 1. Distance, fuel and motion comparison between three alternative routes for the
same arrival time.
Figure 2. Histograms displaying passage fuel consumption and ETA of alternative routes
using 22 members of ensemble forecast.
TANKEROperator March 2015
TECHNOLOGY - SHIP EFFICIENCY
prediction. It is now possible to estimate the probability of exceeding a
given threshold, eg, 7 m of wave height under a nominal forecast of 5
m. The threshold can be established based on motions and seakeeping
events, which define the risk of heavy weather damage.
While the southern route in Figure 2 yields less uncertainties for
on-time arrival, it would also consume considerably more fuel than the
recommended northern route. This type of simulation offers the user
the ability to trade off fuel consumption versus ETA and to estimate the
schedule reliability for planning port/terminal operations.
Most weather routing software solutions use variations of Dijkstra’s
algorithm, in which the program simulates a vessel departing with full
power toward the arrival port with different headings. After each time
interval (eg, six hours), the ship’s dead-reckoned position forms a socalled isochrone until it arrives at the destination.
Speed management
Unfortunately, the problem with such an approach is that the algorithm
ignores one important option -speed management. As storms move
across the ocean, it is possible for the ship to slow down and let them
pass and then catch up, instead of sailing a longer distance to go
around, or ‘hove-to’ in bad weather. Such a strategy not only
significantly reduces fuel consumption for a given arrival time, it also
reduces the risk of heavy weather damage when fully implemented
with ship response and engine overload.
If speed and heading are both considered in the route optimisation
algorithm, the computation will be more accurate because it solves for
a multi-dimensional problem. Without the fundamental principle of
modelling the ship’s performance in various loading and environmental
conditions, it is not possible to minimise the fuel consumption for a
given arrival time without exceeding the safe operating limits.
Cost-cutting trends in the shipbuilding industry and marine
classification societies have resulted in reduced design safety margins
in ship structures. Shipyards use sophisticated finite element models
and high tensile steels to reduce steel weight and production costs in
order to be competitive. Similarly, the propulsion systems are often
optimised for calm weather trial conditions in order to satisfy the recent
IMO Energy Efficiency Design Index (EEDI) requirement.
One such design consequence is the coupling of slow-speed diesel
engines with direct-drive high-pitch propellers and low acceptable sea
margins. In calm weather conditions, a lightly loaded vessel with a
clean hull easily maintains the contracted speed in accordance with the
EEDI requirements. Unfortunately, such practice will lead to frequent
engine overloading when the ship encounters high wind or seas, or
when there is higher resistance caused by propeller and hull fouling.
A ship slows down either involuntarily, due to increased resistance
from the wind and waves, or voluntarily, due to navigation hazards or
fear of heavy weather damage from excessive ship motion, propeller
racing, slamming, or boarding seas.
The optimised route solution must take both involuntary and
voluntary speed reductions into account when estimating deadreckoned ship positions in relation to the movement of weather
systems. Otherwise, the recommended route could lead the ship into a
dangerous situation.
Furthermore, if weather routing tools cannot predict such events,
they can lead to over-predicted ship speed and wrong diversion
decisions when facing heavy weather, not to mention inaccurate
estimates of fuel consumption and time of arrival.
The capabilities of weather routing have evolved into the science of
voyage optimisation in order to bring added benefits in ship design and
operational logistics.
TO
March 2015
TANKEROperator
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TECHNOLOGY - SHIP EFFICIENCY
Air lubrication
system tested on a
products tanker
Silverstream Technologies and Shell recently conducted successful sea trials of an air
lubrication technology for ships, the patented Silverstream System.
he sea trials, independently verified
by Lloyd's Register Ship
Performance Team, show net energy
efficiency savings in all analysed
cases, the company claimed.
Shell funded the exercise and together with
Silverstream, oversaw the installation of the
system on the 40,000 dwt products tanker
Amalienborg, owned by Dannebrog Rederi and
operated by Stena Weco.
“This is a landmark moment for Silverstream
Technologies and the development of our air
lubrication technology, confirming it as a
current and commercially viable solution for
reducing fuel costs and emissions within the
shipping industry,” said Noah Silberschmidt,
the company’s CEO.
The trials verified by LR showed net average
energy efficiency savings of 4.3% and 3.8% for
the vessel in ballast and laden conditions,
respectively. The figures represent an average
from all raw data captured during each trial,
which included optimal and non-optimal air
flows.
Based on the trials, both Silverstream and
Shell believe that a fully optimised system has
the potential to deliver more than 5% efficiency
savings on an ongoing basis when deployed on
a full-bodied vessel with a large flat bottom.
The Silverstream system produces a thin
layer of micro-bubbles that creates a single ‘air
carpet’ for the full flat of bottom of the ship.
This reduces the frictional resistance between
the water and hull and improves the vessel’s
operational efficiency, reducing fuel
consumption and associated emissions.
The technology can be added to a newbuild
design, or quickly retrofitted to an existing ship
within just 14 days, as was the case with the
Amalienborg.
“This is a landmark moment for Silverstream
Technologies and the development of our air
lubrication technology, confirming it as a
current and commercially viable solution for
T
30
Trials were recently conducted on the Handysize products tanker Amalienborg.
reducing fuel costs and emissions within the
shipping industry,” said Silberschmidt.
“Following this successful trial, we are
confident that we can enhance the already
significant savings that we have seen. We
believe these results show that the Silverstream
system can play a crucial role in supporting the
shipping industry to increase operational and
environmental efficiencies and reduce fuel
costs,” he continued.
Dr Adri Postema, general manager Shell
Shipping & Maritime Technology, said: “We
constantly look for ways to improve our
shipping efficiency, both operationally and with
innovative technology. Our maritime technical
experts worked closely with Silverstream
Technologies, Lloyd’s Register and a number of
other parties to achieve a successful trial of this
promising technology.”
Nick Brown, LR’s COO, Marine, in
commenting on the project, said: “Shipowners
and operators need to trust the savings and
return on investment calculations that
manufacturers claim. This trust can only be
built by ensuring rigour and transparency
within the trial process, to ensure the highest
level of accuracy in the projected figures that
are communicated to the market. The sea trials
for the Silverstream system have been
conducted in such a way, with independence
ensured throughout.”
Johnny Schmoelker, CEO, Dannebrog
Rederi, commented: “Given impending
stringent environmental regulations that will
further increase operational costs, energy
efficiency technologies that can reduce fuel
consumption and associated emissions are
critical in limiting the bottom line impact for
shipowners and operators. We are proud to be
the first owner to install the Silverstream
system and demonstrate the efficiency gains.”
A BMT SMARTACCESS and
SMARTVESSEL performance monitoring
system was fitted to the vessel to record data
from the trials. These will continue to monitor
the system’s performance over the next 12
months during normal shipping operations.
Prior to the sea trial, Hamburg-based
hydrodynamic research company HSVA had
worked closely with Silverstream Technologies
to test the technology.
The Amalienborg was retrofitted with the
Silverstream system in just 14 days and
following harbour acceptance tests and under
the direct supervision of LR’s Ship
Performance Group (SPG), a series of 52 single
runs under ballast load conditions at 6.9 m
draught was conducted in the Kattegat under
ideal environmental conditions during March,
2014.
A subsequent laden condition trial conducted
on a constant heading, due to operational
restrictions (10.6 m draught), was completed
six months later.
TANKEROperator March 2015
TECHNOLOGY - SHIP EFFICIENCY
Air bubbles cover the vessel’s flat bottom.
The procedures for both trials was specified
by LR and conducted in line with LR, STA and
ITTC recommendations and in accordance with
acceptable trial control criteria pertaining to
weather, water depth, rudder control, system
steady state criteria and hydrostatics.
A full analysis of the trials data was
conducted by SPG with the following
conclusions drawn:
Ballast trials
The performance of the system varied with
speed and air settings applied. Comparing
measurements of either the shaft power
with the Silverstream system power, or fuel
flow for the main engine, including the
diesel generators, a modal average saving
of 5% was demonstrated for all data
captured during the trial (difference
between the baseline and Silverstream
system being switched on).
A mean average power saving of 4.3% was
found for the vessel over the sea trial,
which including the Silverstream system
power and increase in drag caused by the
cavities.
The air -in the form of a rigid ‘carpet’ of
micro-bubbles - was found to pass down
the whole length of the ship’s hull.
The Acoustic Emissions signals showed no
increase in excitation levels when the the
system was switched on. This indicated that
cavitation excitation was not increased by
air ingestion into the propeller. No
shiphandling issues were reported by the
crew with the system in operation.
Laden Trials
At all speeds tested, the system
demonstrated performance improvements
in both power and fuel consumption,
against the baseline (no air) curves.
The mean average net power saving of the
trial was calculated as 3.8%, against specific
CFD baseline calculations of the vessel in the
trial deep loaded condition. This compared
measurements of the total of shaft power and
Silverstream’s power against the vessel
without cavities fitted.
Based on the experience and results of the
trials, Silverstream has further optimised the
system’s design and engineering, which is now
ready for commercial launch.
The laden and ballast trial figures represent a
mean average result of all raw data captured
during each trial, in conditions where speed,
system air content and draft were effectively
balanced, thus providing an optimal
performance response, as well as in instances
where they were not, the company
TO
confirmed.
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March 2015
TANKEROperator
31
TECHNOLOGY - SHIP EFFICIENCY
Questions over fuels
in ECAs
To offer low sulphur fuels of around 1% sulphur content, several fuel suppliers
have produced a new type of bunker fuel.
er Holmvang, DNV GL’s programme director
environmental technologies revealed in a recent presentation
that at least 10 suppliers are now producing fuel oil of about
1% sulphur content.
These include ExxonMobil, BP, CEPSA, Neste, Lukoil, Bominflot,
Gazprom, Caltex, Shell and ConocoPhillips.
He explained that the new fuel’s characteristics included a viscosity
of about 50 cSt; there were no residuals, or cat fines; they have a high
flash point; they are aliphatic with no aromatics; give good ignition and
combustion, but may need separation and heating.
There were a few question marks hanging over the new fuel, such as
its stability and compatibility, its cold properties/wax (PP0-20), its
lubricity, microbiological growth and of course the question of price,
which is any where between $20-$50 below MGO, depending n the
prevailing fuel price at the time of purchase.
DNV GL is marketing a fuel changeover calculator- which will give
a user the optimum time to change from heavy fuel oil to low sulphur
fuel oil before entering an ECA .
Holmvang explained that the goals were to optimise the lead time,
minimise the fuel cost and to undertake a safe changeover.
The specific factors for shipboard use are the HFO and LSFO, the
vessel’s fuel consumption and the fuel system’s layout. Will
modifications be needed? Are there temperature constraints? Is the fuel
compatible?
He warned that inspections would include the fuel log book, bunker
delivery note, the records and certificates. Also, the bunker fuel will be
sampled and a check will be made on the ‘equivalent measures’.
Future testing technologies could include testing smoke from a
helicopter and/or unmanned drones, or a ‘sniffing’ type device, for
example fitted on the Great Belt Bridge.
The current status is only around 1% of vessels have their fuel
P
sample tested each year and what worries some authorities, including
the Danes, is that the non-compliance fines will be nowhere near the
savings that can be made by not changing fuel when entering an ECA.
Inspections need to be intensified, otherwise those choosing the noncompliance route will have an unfair competitive advantage.
TO
DNV GL’s Per Holmvang.
U T S TM
a s oni c
Ta n k
Sw
w itc h
7-10 Oct. 2014, Copenhagen
Stand No.B0-0 01
M
· Fu l l r a n g e o f u n i q u e s e n s o r s
· B all a s t m ea s u rem ent s y s tems
· I n d e p e n d e nt hi g h le ve l al a r m s y s t e m s
· Co m p lete inte gr ate d auto matio n s o lutio n s
· Cargo control systems for tankers and gas carriers
k
l
G D TM
Ta n k
u g in
i g
e v i ce
API M ar ine A pS · Troensevej 12 · DK-9220 Aalborg Oest · Denmark · Tel.: +45 9634 5070 · w w w.api-mar ine.com · info@api-mar ine.com
32
TANKEROperator March 2015
TECHNOLOGY - SHIP EFFICIENCY
Monitoring emissions
data
DYNAMARINe’s emissions monitoring data system has been on the market for about
two years and currently there are about 240 vessels in the scheme of all types.
he company claimed that the
system is “pioneering” in that it
allows real time benchmarking
with similar vessel types and not
just individual fleets.
The software allows for online reporting
from the vessel, as well as form-based
reporting and it is claimed to be a smart
system by which a Master can only input the
correct data and cannot input inconsistent data.
It is web-based and produces daily
performance data in comparison to older
submitted data and in addition, it includes a
garbage reporting module.
The company explained that it will soon be
integrated enabling real time data to be
accepted from other providers, thus managers
will be able to use one platform for all their
vessels, both systems reporting real time data
and noon data.
Another plus point is that it only costs
around €400 per vessel per year, the company
said.
DYNAMARINe has designed this
information system for data reception on a
daily basis. Data can be submitted in various
formats in order to be adopted in the current
messaging system of each vessel. By using
this method, the capacity of message in kb
will be optimised in order to minimise
transmittance costs.
The data will be automatically sorted and
stored in a cloud database for instant analysis.
Various indices will be calculated in order to
verify ship performance and distinguish
possible inefficient procedures.
Comprehensive charts will give an in-depth
view of vessel functionalities and offer the
user numerous possibilities for thorough and
systematic analysis.
As mentioned, there is also an advanced
feature, where the user will be able to make
comparisons with other sister vessels and
evaluate his/her vessel’s behaviour based on
many different criteria.
The company overview feature will
T
March 2015
TANKEROperator
summarise all the important information in a
tabular format, for the whole ship, in one
comprehensive screenshot. With this feature
there is no need to go through all the noon
reports, if there is not a specific issue to
examine.
Customised report
The reporting feature will provide the user
with a customised report for the ship’s
performance with comparative data from other
sister vessels of the same company and from
other companies as a benchmark.
Furthermore, the system will offer to the
end user extensive company reports, where the
overall performance of the company will be
presented, also in a customised view.
This online information system will offer
the user an instant access to the vessel status
(consumption, carbon footprint, etc) at a
minimum cost.
DYNAMARINe said in a presentation that
managing ships energy efficiency is a complex
issue, due to the nature of the factors involved.
It has to be part of an integrated process,
which will apply to the operation of the whole
fleet.
There is no single metric, which defines
success, or failure in the process for improving
the overall efficiency. In order to have a viable
and sustainable solution, the management
must promote feasible targets and objectives
and set correct priorities on the basis of
trustful data.
Measures for improving ships energy
efficiency can only be effective if focused in
the right direction with the use of correct tools
and if applied for ship specific needs, the
company said.
The best results for a total solution approach
can be achieved if these basic steps are
followed:
1) Clearly define quantifiable targets and set
objectives that are feasible and practical.
Do not follow complicated solutions that
are hard to implement and capital intensive,
just follow realistic goals. Each time you
reach your target, renew your objectives
and set new milestones.
2) Facilitate reliable data from the ships and
filter inconsistencies. Having accuracy in
the data is the only tool to build a reliable
monitoring system, which can offer real
conclusions and trigger actions. The
existence of inconsistencies will divert the
user from the target and will jeopardise the
milestones set.
3) Use comprehensive analytical tools for
shore personnel, to easily identify nonefficient performances. Promote a
constructive and intuitive evaluation
process for the measures implemented. Use
visual tools and displays to assess the
information.
4) Use benchmarking analysis and compare
similar individual ship performances in
order to extract measurable indicators and
compare performances.
5) Create automated and standardised
reporting tools to assist personnel gather
the information and use it to extract valid
conclusions.
6) Develop and maintain a comprehensive
SEEMP, which will include selective
actions and measures and also promote
relevant KPIs in order to easily measure
performance;
7) Always invest in training for all levels of
management and crew personnel.
By following these crucial steps, all vessel
operators will be able to correctly manage
their fleet energy performance and initiate
actions for efficient management.
DYNAMARINe’s emission monitoring system
is based on these principles and guides
shipowners with analytical tools and
automated controls and reporting, the
company said.
Among the shipping companies that use this
tool are Pacific Ship Managers, Ionia
Management, herning (now Nordic Tankers),
Alba Tankers, BSM Group and Enesel.
TO
33
TECHNOLOGY - TANK SERVICING
Wall wash is
dead..long live
washing water
samples
As I wrote in Tanker Operator in the August/September 2014 issue, the wall wash
inspection prior to loading chemical cargoes is starting to suffocate
the operational flexibility of chemical tankers.*
his is not just for the owners and
operators of these vessels, but also
for the charterers, who suffer
unnecessary delays while vessels
are cleaning to a standard that is firstly
completely unjustifiable in many cases and
secondly - does not actually guarantee that the
next loaded cargo can be loaded successfully
and within specification.
In this same article, I noted that historically
only a handful of cargoes used to demand a
wall wash inspection, typically methanol,
ethanol, MEG, HMD, etc. However, today, the
list is out of control, ncluding recently, a cargo
of jet fuel, which granted, requires the cargo
tanks to be perfectly clean and dry, but was
only loaded prior to a wall wash inspection in
all cargo tanks for the following criteria:
Wall wash with DI water to test for a
maximum sodium content of 1 ppm.
Wall wash with Hexane to test for a
maximum NVM content of 10 ppm.
Wall wash with Methanol to test for a
maximum organic chlorine content of 1 ppm
and a UV scan through a 5 cm cell (smooth
curve).
The charterers of the vessel later admitted
that they were ‘unaware the vessel had
stainless steel cargo tanks’ and ‘perhaps a wall
wash inspection was not required’. This
surprising lack of understanding sadly reflects
the reality that owners/operators of tankers are
consistently and unnecessarily expected to
over-clean cargo tanks to a level of cleanliness
that is just not required to load the vast
majority of cargoes.
There are many negative consequences
related to over-cleaning and/or cleaning to a
standard that does not guarantee that the next
T
34
cargo can be loaded successfully, but
one of the most serious is also
generally one of the most overlooked; and that is confined space
entry.
Each time a cargo is fixed to a
wall wash specification, there are
numerous confined space entries, not
only for the vessel’s personnel, but
also for the third part inspectors and
sometimes also, the terminal
operators.
The only reason for multiple cargo
tank entries during tank cleaning
operations is to ensure compliance
with pre-loading inspection
specifications and, if this is a wall
wash specification, generally there
will be a minimum of two additional
entries per cargo tank per tank
cleaning operation.
L&I WAVE II UV/Vis spectrophotometer.
TANKEROperator March 2015
TECHNOLOGY - TANK SERVICING
Thus, for a vessel with 20 cargo tanks, this
equates to 40 tank entries for the crew, plus 20
tank entries for the surveyors, plus another 20
tank entries for the crew member
accompanying the surveyors. A total of 80
separate confined space entries. And all for
what? To pass a wall wash inspection that
does not actually guarantee that the next cargo
can be loaded successfully.
According to all of the oil and chemical
majors, confined space entry is one of the
most unsafe practices, whether it is on board a
tanker, or inside a refinery. Indeed, the new
SOLAS regulation III/19 noted in the
January/February 2015 edition of Tanker
Operator only adds more gravitas to the risks
HEPWORTH MARINE
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associated with this practice, yet this is
seemingly being widely ignored for
commercial benefit.
Moreover, when the new rules surrounding
the inerting of chemical tankers are
implemented from January, 2016, it is
inevitable that the vessels will have to deal
with tank cleaning from a mixture of the
previous cargo and nitrogen. Consider that
nitrogen is invisible, has no smell and is
commonly referred to as the silent killer and it
is clear that the risks associated with cargo
tank entry will only become even more
serious.
Over the years, there has been a heavy
clamp-down on manual tank cleaning with
flammable/toxic chemicals on safety grounds,
but it should be clear that the only reason why
vessels have to even consider cleaning with
these types of materials is to meet pre-loading
inspection specifications, that as noted, have
no direct influence on the ability of the vessel
to loaded the next nominated cargo
successfully.
Perhaps a better way of dealing with this
situation would be to remove the need to use
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March 2015
TANKEROperator
www.b-hepworth.com
35
TECHNOLOGY - TANK SERVICING
flammable / toxic chemicals in the first place?
The safety risks associated with carrying out
the wall wash inspection now appear to far
outweigh the significance of the wall wash
results, meaning there is a clear and defined
need for an alternative process that will allow
shipowners/operators and charterers to
determine cargo tank suitability prior to
loading, without having to resort to confined
space entry.
This process is Washing Water Analysis;
identifying how much of the previous cargo
has been removed from the cargo tanks, as
opposed to measuring what has been left
behind on the walls after tank cleaning. The
process allows for dynamic measurement of
cargo tank quality using the L&I WAVE II
UV/Vis spectrophotometer, which not only
significantly reduces cargo tank entry, it also
measures the cleanliness of the entire internal
surface area of the cargo tanks and the cargo
lines, unlike the wall wash inspection which
only measures the lower 10 – 15% of the
internal surface area and none of the cargo
lines.
Vessels now have the ability to monitor tank
cleaning operations, live, without having to
stop the cleaning, gas free the cargo tanks,
enter a confined space and take a wall wash
sample, to decide whether additional tank
cleaning needs to be carried out or not.
This not only saves time (which has a
positive influence on rest hours), it also
creates the potential to reduce fuel
consumption (by allowing the vessel to stop
cleaning when a specific cleaning step ceases
to be effective) and to save cleaning
chemicals, based on the simple fact that if all
of the previous cargo residues have been
removed, there is no need to use chemicals for
the tank cleaning. This process is not possible
without instrumentation that generates instant
data that directly influences the tank cleaning
process.
Essentially, tank cleaning can continue,
under fully inerted conditions, without any
need for cargo tank entry, until the cargo tanks
are free from the previous cargo.
The graph on the previous page shows the
results of a cleaning operation from styrene
monomer. It can be seen that the last sample
(which was taken during hot freshwater
washing), shows that the washing water
contained a little over 1 mg/L of styrene
monomer. The vessel successfully loaded
MEG FG afterwards.
The process can also be used to assist
vessels cleaning from Annex I to Annex II
cargoes, as evidence that the oil residues have
been removed from the cargo tanks:
The process of washing water analysis is
currently being carried out by a number of
chemical tanker owners and is being evaluated
by some of the leading chemical and oil
majors not only because it is a relevant
method of determining cargo tank suitability,
but also because it has a direct and positive
impact on the environment and on the safe
working conditions of seafarers.
Confined space entry is one of the most
unsafe practices associated with the chemical
tanker business. This situation has to be
TO
corrected.
*This article is another in the series written by
Guy Johnson, L&I Maritime (UK) Ltd; Tel +44 1909 532003; Email [email protected]
ClassNK approval of COT corrosion resistant
steel awarded
Tokyo-based classification society
ClassNK has issued an approval
for Nippon Steel & Sumitomo
Metal Corporation’s newly
developed corrosion resistant
steel (NSGP™-2).
This steel is claimed to be ideal for use on
the upper deck and/or inner bottoms of crude
oil tanker cargo oil tanks (COT).
Following earlier approvals of steels for the
inner bottom plating of COTs, this marks the
first time that approval has been granted for
corrosion resistant steels for both the top and
bottom parts of the COT, providing owners
and shipyards with a practical alternative to
coating systems, the class society said.
In order to reduce COT corrosion and
improve crude oil tanker safety, new
amendments to the SOLAS Convention were
issued in May 2010 requiring oil tankers over
5,000 dwt contracted after January, 2013 to
adopt appropriate corrosion protection
measures for their COTs in line with either the
IMO Performance Standard for Protective
36
Coatings for COT (MSC.288(87)), or the IMO
Performance Standard for Alternative Means
of Corrosive Protection for COT
(MSC.289(87)).
As the use of corrosion resistant steels
would allow shipyards and owners to
significantly reduce the time and cost related
to coating application, their development has
been a topic of intense research for several
years.
However, differences in the corrosion
mechanism found in the COT’s top part,
which is exposed to gases released from crude
oil during shipment and the inner bottom,
which is in direct contact with the crude oil
cargo, have presented a major challenge to
steel makers.
Nippon Steel & Sumitomo Metal
Corporation released what they claimed was
the world’s first corrosion resistant steel
(NSGP™-1) for use on the inner bottom of
COTs in 2011. The approval of NSGP-2 marks
the first time that class-approved steels for
both the top and bottom of the COTs will be
available on the market.
Yasushi Nakamura, ClassNK’s executive
vice president said: “While coated
conventional steel meets IMO regulations, the
additional costs associated with coating
application can be high. This approval of
NSGP-2 means that owners now have a
practical alternative to meet IMO regulations
for COT corrosion protection, and we expect
the use of this kind of steel will increase in the
future.”
The ClassNK approval confirms that
Nippon Steel & Sumitomo Metal
Corporation’s NSGP-2 corrosion resistant steel
meets the requirements of the IMO
Performance Standard for Alternative Means
of Corrosive Protection for COT and can be
safely used in the construction of crude oil
tanker COTs.
This development is expected to
significantly lessen the financial costs
associated with applying protective coatings to
conventional steel during ship construction
and after entering service.
TO
TANKEROperator March 2015
TOP 30 TANKER COMPANIES
TANKEROperator’s
Top 30 owners and operators
As usual, the data used to calculate Tanker Operator’s Top 30 listing is compiled taking
into account the total deadweight tonnage of a company. The figures were extracted from
company websites, the Equasis database and where possible, the companies themselves.
In line with previous listings, we have omitted FPSOs/FSOs, LNG/LPG carriers and
ATBs from the total tonnage shown for each company. Photo credit - Teekay.
Mitsui-OSK (MOL)
(14.4 mill dwt, plus a 385,000 dwt newbuilding)
At the end of fiscal 2013-2014, MOL owned,
managed, or operated 32 VLCCs, six LR2s, eight
Aframaxes, 10 LR1s, 35 MRs and 18 Handysize
tankers.
In addition, the company had one LR1, four MRs and four
Handysize tankers on order, or under construction.
Under MOL’s ‘Steer for 2020’ plan, one of the objectives is
to reduce the number of tankers operated, including charteredin vessels, from around 170 to 150 by the end of fiscal 2016,
the company said.
Last year, MOL became involved in a new MR pool- Clean
Products Tanker Alliance - in which, there are four partners MOL, Asahi Tanker Co, Ultranav and OSG. The pool will
operate with around 60 MRs, MOL said.
Ultranav will operate MRs mainly for the Americas trade out
of Miami, while MOL, whose main operations are based in
Tokyo, Singapore, London and Houston, will operate the other
vessels worldwide.
1
March 2015
TANKEROperator
MOL’s MR Opal Express.
37
TOP 30 TANKER COMPANIES
NITC
Teekay Group
(13.5 mill dwt, plus
(13.5 mill dwt)
259,000 dwt newbuildings)
2 According to various registers, NITC
manages 37 VLCCs, nine Suezmaxes,
five Aframaxes, and three Handysize products
tankers.
In addition, there are believed to be another
three 63,000 dwt tankers and two 35,000 dwt
product tankers on order.
There could be others, as the country tries
to build up its shipbuilding industry, a plan
which has been around for many years.
Euronav
(12.1 mill dwt)
This year, Antwerp-based tanker owner
Euronav will take delivery of the last
4 two of the 19 Maersk VLCC fleet
purchased last year.
This will result in the company controlling
a total of 27 VLCCs and 23 Suezmaxes.
In addition, Euronav has a stake in two
FSOs jointly owned with OSG. A third sister,
a conventional 440,000 dwt ULCC, operates
in the spot market within the Euronavmanaged Tankers International pool and is
100% owned by the Belgian concern.
On 6th October, 2014, the pool was joined
by Frontline, which has resulted in what is
claimed to be the world’s largest provider of
spot VLCC tonnage.
It is commercially operated under the name
VLCC Chartering.
Including chartered-in vessels, the
various subsidiaries in the group,
including newcomer Tanker Investments,
operate 104 tankers.
These include shuttle tankers, VLCCs,
Suezmaxes, LR2s, Aframaxes and product
carriers.
Not included in the figures are one HiLoad
vessel, six FSOs, 10 FPSOs with one under
conversion, three floating accommodation
units, six AHTS and another four on order, 29
LNGCs with a further 18 on order, plus 21
LPG carriers with another nine on order..
At the end of last year, it was announced that
Teekay Tankers had acquired a further four
LR2s and a conventional Aframax for $230
mill. The vessels are due to be handed over
3
during the first quarter of this year.
In addition, Teekay Investments had
purchased six Suezmaxes for $315 mill. This
will bring the fledgling company’s total up to
20 tankers when they are delivered during the
first half of this year.
Teekay’s Suezmax Hamilton Spirit.
Euronav’s Suezmax Cap Lara.
Sovcomflot (SCF) Group
(11.6 mill dwt, plus 150,000 dwt newbuildings)
This diversified group now has two
VLCCs, 16 Suezmaxes, six LR2s, 50
Aframaxes, nine LR1s, five Panamaxes and 26
MRs, plus four Handies with another three MRs
under construction.
SCF also owns a fleet of smaller chemical and
bitumen carriers.
Some of the fleet are specialist ice class shuttle
tankers built for projects in the Barents Sea and
the Russian Far East.
In addition, the group owns several other types
of vessels, including offshore support vessels,
tugs, LPG carriers and LNGCs, some of which are
ice class. There are more large gas carriers to
come on the back of the Yamal project.
5
38
SCF’s MR SCF Yenisei.
TANKEROperator March 2015
TOP 30 TANKER COMPANIES
NYK Group
Bahri
(11.5 mill dwt)
(11.12 mill dwt)
As at the end of March 2014, the
end of NYK’s fiscal year, the
company said that it operated 32 VLCCs,
three Aframaxes, four LR2s, 22 MRs and five
chemical carriers.
In addition, NYK had 10 LPG carriers, one
ammonia carrier and a further 29 LNGCs with
more to come. However, these have not been
included in the figures.
There is other tonnage involved in various
joint ventures, which were also not included.
Bahri and Vela’s amalgamated fleet
now stands at 31 VLCCs, one LR2
and four MRs.
In addition, the company manages 24
chemical carriers - three Handysize, 20 MRs
and one 81,300 dwt vessel - which are all
operated in co-operation with SABIC.
There are no longer any chemical carriers
6
7
operated with Odfjell, as the joint venture has
ceased.
In addition, the company operates one
single hull VLCC FSO and a series of conros
and drybulk carriers and has an interest in
LPG carrier operator Petredec.
All of the vessels are managed by Mideast
Ship Management, based in Dubai.
AET
(10.5 mill dwt, plus 241,400 dwt newbuildings)
Singapore-based AET has been
shedding some of its older tonnage
recently and introducing new, specialist
vessels.
As of 1st January this year, the fleet
consisted of 13 VLCCs, four Suezmaxes, 48
Aframaxes (which includes two specialist
Frontline
Group
8
(9.5 mill dwt, plus 1.32
dwt newbuildings)
Modular Capture Vessels), two DP shuttle
Aframaxes, one LR2, one Panamax and eight
MRs.
In addition, two more newbuilding 120,000
dwt plus twin skeg DP shuttle tankers will
come on stream during the first quarter of this
year.
The group, which includes Frontline
Ltd, Frontline 2012 and Ship
Finance International, has continued to shed
more of its older tonnage resulting in the
company sliding down Tanker Operator’s
rankings.
Frontline 2012 has 12 LRs on order at
present. Two Suezmaxes were recently
delivered.
As at the beginning of February this year,
the operated fleet included 21 VLCCs, 14
Suezmaxes, four Aframaxes and six MRs.
In addition, Frontline has joined
Euronav’s VLCC Tankers International
pool (which see), forming VLCC
Chartering.
9
AET’s Aframax Eagle Texas being converted to a modular capture vessel at Corpus Christi.
Her sistership can be seen to the rear of the vessel.
Photo credit - Kiewit.
Markusnet Type MS is designed for man overboard recovery
on all types of ships, offshore installations and dams with less
than 40 metre height from water level upto rescue deck or
platform.
Markus MOB boat rescue-net
Markus Scramble-net
Hvaleyrarbraut 3
Hafnarfjordur, IS-220
Iceland
Tel: +354 5651375
Markus Scramble net Type SCN6 is a mobile light weight
scramble-net / cradle recovery system for deck vessels and
offshore installations with either rail or special fastenings inside
bulwark where they are to be used. Less than 1/6 of the weight
of traditional scramble-nets.
Main partners:
Markus MOB boat rescue-net is light, quick fastening, takes
little space, provides easy and fast method to place the
casualty in the net, is soft but firm around the casualty,
provides easy lift by one or two persons and is easy to repack
after use.
UK: Energy Marine Ltd.
Tel: +44 (0)1525 851234
USA: Marine Rescue Technologies Inc.
Tel: +1 772 388 1326
[email protected] - www.MarkusLifenet.com
Markusnet Type: MS
Man overboard safety and rescue is our concern and speciality
March 2015 TANKEROperator
39
TOP 30 TANKER COMPANIES
Dynacom
China Ocean Shipping
Tankers
(COSCO Dalian)
Management (8.5 mill dwt, plus 900,000 dwt newbuildings)
(8.6 mill dwt)
George Prokopiou's Dynacom
10 Tankers Management manages 14
VLCCs, 23 Suezmaxes, one LR2, six LR1s
and another six crude oil Panamaxes.
Similar to 2013, a few vessels left the fleet
last year, bringing the total down slightly. The first of the four VLCC
newbuildings was delivered in
December, 2014 from Dalian, leaving a
further three still to come.
This was claimed to be the first VLCC
delivered to COSCO Dalian under the Chinese
11
China VLCC
(8.4 mill dwt, plus 3.9 mill dwt newbuildings)
China VLCC was set up last year to
operate VLCCs managed by Associated
Maritime Corp and troubled Nanjing Tanker.
It is a joint venture between China
Merchants Energy Shipping (CMES), which
owns 51% and Sinotrans who has the
remaining 49%.
The new company immediately purchased
12
10 VLCCs from cash strapped Nanjing Tanker
for $681 mill, bringing the total up to 28
VLCCs, including two newbuildings delivered
last year.
In addition, another two VLCCs were due to
be delivered as this issue went to press and at
least 11 more were on order at Dalian and
SWS.
Maran Tankers
Management (MTM
(8.4 mill dwt, plus 640,000 dwt newbuildings)
Maran Tankers Management
(MTM) is shown as managing 22
VLCCs, seven Suezmaxes and four
Aframaxes.
Some of the previously managed vessels
were believed to have transferred to Chevron
Shipping’s management having been on charter
to the US oil major for several years.
13
In addition, MTM ordered four VLCCs from
Daewoo last year of which at least two, plus
options, were converted to LNG carrier orders.
Another two VLCCs were said to have been
ordered this year, plus options.
The company is part of the Angelicoussis
Group with London-based Agelef acting as
agent.
Maersk Tankers
(7.5 mill dwt)
Despite the sell-off of its VLCC fleet,
Maersk Tankers is still a considerable
force in the tanker market, due to its product
tanker pools, which the company manages.
As of the middle of last
year, there were 28 tankers in
the Maersk managed LR2
pool and as of 1st January
this year, there were 96
tankers in the Handytankers
pool.
The Handytankers pool
16
consists of tonnage in the range of 29,000 dwt
to 50,000 dwt. There are around 25 MRs and
71 Handysize tankers listed as managed by the
pool. In addition, there were around 39 vessels
Government’s domestic building programme.
At present, the company has 23 VLCCs,
three Suezmaxes, three Aframaxes and 11
Panamaxes, according to its website.
In addition it manages a fleet of LPG and
LNG carriers.
China
Shipping
Development
Corp (CSDC)
(8.1 mill dwt)
14
CSDC’s fleet was shown as consisting
of 14 VLCCs, eight Aframaxes, 14
LR1s, three Panamaxes, 16 MRs and 23
Handysize tankers.
In addition, the company operates several
smaller coastal vessels.
There were still about six Handysize single
hull tankers on the list, but there must be
some doubt as to their continuing existence,
due to the final phase out having come into
force.
Ocean
Tankers
(7.8 mill dwt)
Singapore-based Ocean Tankers
manages 14 VLCCs, one Suezmax, 14
LR2s, six LR1s, 22 MRs, four IMO II
chemical tankers and another 21 tankers,
described as general purpose.
The company was one of the original
members of the Nova Tankers pool until it
ceased trading last year, due to the Maersk
Tankers VLCC sell off.
It also has bunker and terminal operations
in and around Singapore, managed by
subsidiary companies.
15
in the intermediate sector, managed by
Brostrom and a further 16 in the small sector.
Maersk has been selling off some of its older
tonnage in recent weeks, both Handies and
smaller tankers.
Maersk Tankers’ Handysize Maersk Kate.
40
TANKEROperator March 2015
TOP 30 TANKER COMPANIES
Overseas Shipholding (OSG)
(7.5 mill dwt)
OSG successfully emerged from
Chapter 11 bankruptcy protection in
August last year.
As of 31st December, 2014, OSG’s
International fleet was only slightly down on
the year before; numbering one ULCC, eight
VLCCs, seven Aframaxes, eight Panamaxes,
one LR2, four LR1s and 22 MR tankers.
The International fleet also includes four
LNGCs and two FSOs managed in joint
ventures.
OSG’s US domestic fleet was unchanged at
12 Jones Act MRs, three of which have now
been converted to shuttle tankers, two other US
Flag MRs and 10 Jones Act ATBs.
The figures include long term chartered
vessels taken for more than one year.
17
OSG’s VLCC Overseas Mulan.
Minerva Marine
Thenamaris
(6 mill dwt)
(5.86 mill dwt, plus
790,000 dwt
newbuildings)
Athens-based Minerva Marine manages
four VLCCs, five Suezmaxes, 26
Aframaxes and 14 MRs.
18
Four of the Aframaxes are LR2s.
In addition, the company manages a small
fleet of bulk carriers.
SK Shipping
(6 mill dwt)
The South Korean-based owner has 18
VLCCs, two LR2s and three MRs on
its books.
19
In addition the company has interests in LNG
and LPG carriers, plus a large fleet of drybulk
carriers.
This Athens-based concern has
increased its fleet since last year, due
to both newbuildings entering service and
acquisitions of secondhand tonnage.
Today, the company manages two VLCCs,
six Suezmaxes, 23 Aframaxes, 11 MRs and
seven Handysize tankers.
In addition, there are another seven
newbuilding Aframaxes to come.
20
Oman Shipping Co (OSC)
(5.6 mill dwt, plus 500,000 dwt newbuildings)
OSC operates 16 VLCCs, two LR2s,
one LR1, four MRs and one small
chem/prod tanker.
21
In addition, another 10 MRs have been
ordered from Hyundai Mipo for 2015-2016
deliveries.
OSC also operates a fleet of LNG, LPG,
general cargo carriers and VLOCs.
Tsakos Energy Navigation (TEN)
(5.1 mill dwt, plus 1.4 mill dwt newbuildings)
As at the end of December 2014, TEN
operated one VLCC, 12 Suezmaxes,
two DP shuttle Suezmaxes, eight Aframaxes,
three LR2s, nine LR1s, six MRs, eight
Handysize tankers and one LNG vessel.
22
March 2015
TANKEROperator
In addition, the company has an extensive
orderbook of nine Aframaxes, one DP shuttle
Suezmax, two LR1s and one LNG vessel.
With the exception of the LNG order, all
tankercontracts are on the back of long term
charters.
Most of the vessels are managed by Tsakos
Columbia ShipManagement, a joint venture
company formed around five years ago. 41
TOP 30 TANKER COMPANIES
BW Maritime DHT Holdings
(5 mill dwt, plus 2.6 mill
dwt newbuildings)
(4.9 mill dwt, plus 1.8 mill dwt newbuildings)
Singapore-based BW Maritime has
gone up in the rankings slightly, due to
an influx of newbuildings.
The company currently manages 10
VLCCs, 17 LR1s, 13 MRs and four chemical
tankers.
In addition, there are four LR1s at STX,
nine MRs at SPP and another nine
newbuilding chemical carriers to come.
The group also has a large fleet of LNG
and LPG carriers, plus FSOs and FPSOs,
either wholly, or part owned. 23
DHT’s VLCC DHT Ann.
The purchase of Samco last year has
resulted in the company entering the
Top 30 for the first time.
DHT now controls 14 VLCCs, two
24
Suezmaxes and two Aframaxes and has
another six VLCCs on order.
Through the acquisition, the company also
owns 50% of Goodwood Ship Management.
Formosa Plastics Marine
Corp
(4.6 mill dwt)
The Taiwanese energy giant’s shipping
interest currently operates 10 VLCCs,
two Aframaxes, six LR1s, 16 MRs and three
Handysize tankers.
25
BW Maritime’s LR1 BW Lena.
The addition of two Marubeni-controlled
Aframaxes has pushed the company up in the
rankings.
General Maritime (GenMar)
(4.6 mill dwt, plus 2.1 mill dwt newbuildings)
GenMar operates seven VLCCs, 11
Suezmaxes, four Aframaxes, two LR1s
and one MR.
In addition, the US-based concern has
another seven VLCCs on order at Daewoo and
Hyundai Samho.
26
However, this total looks likely to increase
considerably if negotiations between GenMar
and Navig8 Crude Tankers to merge their
fleets comes to fruition.
Navig8 Crude Tankers has 14 VLCCs on
order at Hyundai Subic, Hyundai Heavy
Industries and SWS.
Oaktree Capital-backed GenMar previously
tried to purchase the Maersk VLCC fleet
before being beaten to the post by Euronav. BP Shipping
(4.57 mill dwt, plus 2.33 mill dwt newbuildings)
The latest figures on the company website show that BP
Shipping manages, or operates four VLCCs, 16 Aframaxes, 12
MRs and five Handysize tankers.
In addition, the company manages four US-based 190,000 dwt
Alaskan tankers, which have been included in the figures.
Some of the four Suezmaxes, 10 Aframaxes, nine MRs and five
Handies on order are believed sold on a lease back basis, while others in
operation have been disposed of, as the company modernises its fleet. 27
42
BP Shipping’s Aframax British Cormorant seen in an STS exercise
alongside Nordic American’s Suezmax Nordic Breeze.
TANKEROperator March 2015
TOP 30 TANKER COMPANIES
Shipping Corp of India (SCI)
(4.5 mill dwt, plus 317,000 mill dwt newbuildings)
28
Due to a few sales, SCI’s fleet has
fallen slightly.
Today, the company manages four VLCCs,
with another newbuilding to come; seven
Suezmaxes; 11 Aframaxes; two LR2s; six
LR1s; four MRs and two Handysize tankers.
TORM is currently working on a
restructuring plan with its stakeholders,
including Oaktree Capital Management, which
once signed will reinforce TORM’s position as
one of the largest owners in the product tanker
segment.
The company said that it expected to be
able to present the final restructuring plan and
transaction structure no later than first quarter
of this year.
TORM
(4.1 mill dwt)
Since TORM and Maersk Tankers
decided to dissolve the LR2 Pool in
2014, TORM currently operates 10 LR2s.
In addition, the company has seven LR1s,
44 MRs and 11 Handysize product tankers.
29
TORM’s LR1 Torm Estrid.
Making money in a tough market
How to survive in a complex world
Dimitris Lyras, Director of Ulysses Systems (Chair)
Martin Shaw, Managing Director, Marine Operations and Assurance Management
Solutions Ltd
Panos A. Kourkountis, Technical Director, Andriaki Shipping Co. Ltd
Georgios E. Poularas, CEO, ENESEL S.A.
Nikolas Lappas, Managing Director at Oceangold Tankers Inc.
Theophanis Theophanous, Managing Director, Bernard Bernhard Schulte
Shipmanagement (Hellas)
Cpt. George Karantonis,
HSQE & Vetting Manager, Eurotankers Inc.
Metropolitan Hotel, Athens
April 2nd 2015
March 2015
TANKEROperator
43
TOP 30 TANKER COMPANIES
Navios Maritime Group
(4 mill dwt, plus 150,000 dwr newbuildings)
Angeliki Frangou’s quoted tanker
vehicle, Navios Maritime Acquisition
Corp is a prolific asset player, buying and
selling vessels on a regular basis.
According to the company, Navios Maritime
30
Acquisition has eight VLCCs, eight LR1s, 18
MR2s and four chemical tankers.
In addition, there are another three MRs on
order.
Last November, Frangou set up Navios
Maritime Midstream, which purchased four
VLCCs from Navios Maritime Acquisition via
an IPO. Others will probably follow.
However, for the sake of clarity, we have
included all the tonnage under a group banner. Navios’ LR1 Nave Atropos.
Events 2015
Making Money in a Tough Market
Athens, 02 April 2015
Ecotankers
Bergen, 19 May 2015
Making Money in a Tough Market
Singapore, 08 Oct 2015
Making Money in a Tough market
Hamburg, 22 Oct 2015
44
TANKEROperator March 2015
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