TANKER OPERATOR Magazine (April 2015)

TANKEROperator APRIL 2015

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Contents 04

Markets  Strong fundamentals  LR ordering key

07

News Focus  ISM Code and tankers  Pools and the law

11

Manning & Training  Ship/shore interface  Guide for Mooring Masters  Indian seafarers  Coping with inspections  COLREGS training  Owners and managers  Singapore fund  UK cluster growth

22

Anti-Piracy  Vessel hardening  SE Asia procedures

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Technology 26 Ice Class Tankers  More on the Polar Code  Oil spills 30 Ship Efficiency  Reducing costs  Energy saving 34 Bunkering  Problems highlighted  Low sulphur solutions  AWT addresses ECAs 40 Tank Services  Viscosity meter  Advanced tank coatings

Serious Products for a Serious Problem

Front cover - Easi-Chock ensures vessel hardening procedures by offering a low cost, effective, time saving suite of security Anti-Piracy Solutions A complete suite of bespoke vessel security equipment

products. The products are designed to enable the crew to assemble and disassemble them in a matter of minutes. External storage areas can also be protected, as well as the accommodation portholes, doors and other structures. The company embraces the layered defence approach, as outlined in the industry’s Best Management Practice 4 (BMP4) for vessel hardening.

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April 2015



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01

COMMENT

Confucius he says.....!!!! Confused seas---A highly disturbed water surface without a single, well-defined direction of wave travel. This analogy was used by ABS European president and COO Dr Kirsi Tikka to describe the state of the shipping industry and in particular the regulators at a recent London tanker conference. Throughout the conference there were various presentations given, which highlighted just how confused these seas are. In a lively debate, IPTA/Navigate Chemical and Product Tanker Conference chairman Capt Ian Finley questioned the role of the regulators and the impact the regulations have on shipping. The IMO should go back to its roots to serve shipping in a well thought out way and not penalise shipping, he said. Much debate was also centred around an operational efficiency standard and would it work, plus the difference between the UNFCC and the IMO on climate change, which needs to be reconciled. Somewhat incredibly the talks have been suspended. Probably of more immediate interest is the question of an operating efficiency standard for all vessels. There were questions posed on how the data would be collected, the flag administration’s role and a centralised database housed at the IMO. IMO spokesman Sveinung Oftedal said rather worryingly that it is currently uncertain whether an operational efficiency standard would delivery sufficient reductions. He said that market driven efficiencies, such as slow steaming, should be taken into account. “We need to be flexible but within standards,” he said. He thought that such a standard was feasible both legally and technically. There is still argument between the EU and IMO over the lower limit of the proposed emissions monitoring/measuring reporting

verification (MRV) proposals. Basically the EU has came out in favour of a system starting at 5,000 gt, while the IMO has suggested a lower limit of just 400 gt. The EU’s Heiko Kunst explained that the MRV regulation’s context was agreed by the European Parliament and Council on 14th November with the Council agreeing the final text on 5th March this year for formal adoption in April and entry into force on 1st July. Supporting technical legislation preparation is planned to be completed by 20th May 2016, which includes expert stakeholder consultations.The accreditation of the verifiers would then be completed during the first half of 2017 followed by the verification of the monitoring plans during the second half of that year with a monitoring start up during the following year. However, Kunst acceded that this time scale did depend on the IMO’s possible global MRV introduction. He said that the two sides have time for discussions as there were six to seven MEPC meetings scheduled before the EU implements its regulations. He also agreed that the shipping industry only needed one system - not two. Tankers differ IPTA’s Janet Strode then accused the regulators of tending to put tankers together into one segment. She pointed out that chemical tankers were completely different to other types of tankers in that they regularly change berths in one port, due to 20-30 different cargoes being carried on a single vessel, which could lead to waiting times. In addition, as the vessels can carry up to 800 cargoes, there is a huge demand on fuel for heating cargoes, especially vegoils. Tank cleaning becomes more significant with so many cargoes and the use of nitrogen

generators must also be taken into account.“You can’t compare like with like or on a voyage to voyage basis,“ she said. As mentioned in the bunker feature in this issue, there is growing concern among the experts that engine components do not like certain fuels, especially low sulphur fuels. Both IBIA’s Peter Hall and Viswalab’s Gowri Shankar presented horror stories regarding damaged engine components and the perceived lack of enforcement on the wider formula variations and the fuel switching problems being encountered when entering or leaving an ECA. Anomalies There are several anomalies being unearthed not least between the contract as stipulated and the interpretation of Port State Control, plus the ISO standards and MARPOL. Again somewhat surprisingly, we were told that the results of a sample test could vary from laboratory to laboratory as, despite using the same techniques on the same fuel, the chemistry could throw up different results. We were also told that refineries would need five years to perfect product for the 2020/2025 worldwide sulphur cap. Again the EU looks to be ahead of the IMO in implementing the cap. A strong plea was made to shipowners to contact their flag administrations, which in turn should alert the IMO through their representatives to persuade them to act at MEPC and MSC meetings. As we said at the beginning, shipping is in a very confused state. The question is - have the regulators taken leave of their senses and TO forgotten just how shipping is run? *Some of the papers from Tanker Operator’s recent Mumbai conference are contained in the body of the magazine within the relevant sections.

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TANKEROperator  April 2015

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INDUSTRY - MARKETS

Strong fundamentals to boost tanker market High demand coupled with limited fleet growth is forecast to continue to propel the tanker market. ccording to the latest short-term market outlook by BIMCO, for the period March to May this year, the organisation expected earnings of $30,000-50,000 per day for VLCCs, around $30,000-55,000 per day for Suezmaxes while for Aframaxes, earnings are forecast to be about $20,000-40,000 per day. In the product tanker segment, BIMCO said earnings on the benchmark routes from the Arabian Gulf to Japan for LR2s to remain at around $15,000-25,000 per day. LR1s will hold firm on around the same daily rate as their LR2 counterparts. MR average rates are forecast to be slightly softer at $12,000-24,000 per day, while Handysize average rates will remain firm at $15,000-25,000 per day. In its latest market outlook, BIMCO said; “Following the peak in global oil demand in 4Q14 at 93.53 mill barrels per day as estimated by the International Energy Agency (IEA), the first half of 2015 provides a slowdown to an average of 92.50 mill barrels

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per day. “For 2015 as a whole, IEA forecast demand growth of 0.9 mill barrels per day (+1%) up from 0.7 mill barrels per day (+0.8%) in 2014. Growth is expected purely in non-OECD areas, with +0.1mill barrels per day in the Americas, +0.2 mill barrels per day in Africa, the Middle East and China, +0.5 mill barrels per day in ‘other Asia’ and then -0.3 mill barrels per day in FSU to strike the balance. “Global oil supply is likewise expected to go higher, though not as much as demand. This will narrow the oversupply gap somewhat. IEA notes that the market response to lower oil prices is asymmetrical in the sense that the supply side has become more priceelastic, whereas demand less so,” BIMCO said. Global oil supply is a volatile element, one that affects the tanker markets somewhat – not by creating uncertainty but by making a difference to tonne/mile demand if oil supply comes from the US, Libya or Iraq that alone

Tanker Earnings 2014-2015

sold nearly 3 mill barrels per day in December. In January 2015, Iraq only exported 2.5 mill barrels per day. Normally OPEC exports benefit the crude oil tanker markets as they traditionally go long-haul, so the lack of OPEC supply may explain some of the sliding freight rates seen since the start of year, the report explained. Meanwhile in the US, shale oil producers are scaling down the number of rigs drilling for oil in their response to the lower oil prices. Whether this actually brings down supply significantly or only cuts costs for the marginal barrel remains to be seen. Until now, none of the large oil-producing nations have announced large cuts in oil production. Adding to this positive story is the Middle East export refinery expansions coming on stream this year. The Yanbu facility on the west coast of Saudi Arabia on the Red Sea expects to export globally some 400,000 barrels per day of refined products. Whereas the Yanbu refinery is exportoriented, the new large-scale expansion of the Ruwais facility in Abu Dhabi is expected to be domestically oriented. A development such as this illustrates the oil-refinery movement is still very much alive, lifting hopes higher for oil product tanker demand going forward, BIMCO said. Supply Meanwhile, in terms of tanker fleet supply, BIMCO’s Chief Shipping Analyst, Peter Sand,said; “It is no surprise that the order book for crude oil tankers is growing as the only one among the major shipping segments. Twelve new VLCC orders, six Suezmax orders and four Aframaxes have been placed so far in 2015. “This has lifted the crude oil tanker order book by 4.5%. Orders for VLCCs have been shared among the three top builders, whereas the orders for Suezmaxes and Aframaxes have

Source - BIMCO, Clarksons.

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TANKEROperator  April 2015

INDUSTRY - MARKETS Crude Tanker Supply Growth

Source - BIMCO, estimates on Clarksons raw data. A is actual, F is forecast. E is estimate which will change if new orders are placed. The supply growth for 2015-2017 contains existing orders only and is estimated under the assumptions that the scheduled deliveries fall short by 10% due to various reasons and 20% of the remaining vessels on order are delayed/postponed.

all been placed in China. China remains the builder that offers the lowest prices on newbuildings. During 2014, 24 newbuild VLCCs entered the trading fleet against 30 in 2013. So far three VLCCs has been delivered, with another 25 scheduled for delivery,“ he said. BIMCO expected some slippage will occur that will support a stronger earnings environment. However, the window of opportunity also seems to close somewhat in 2016, which currently has 54 VLCCs scheduled for delivery, Sand noted. The report also said that the VLCC fleet grew last year by 2.3% and is on course for 3.1% in 2015, taking an unchanged level of demolition into account.

Looking at product tankers, the LR2 segment is where action on the supply side is taking place this year. For a total fleet that consists of 239 units at the start of the year, the addition of 32 (including slippage) will inevitably be quite a lot. BIMCO assessed the overall product tanker fleet will grow by 5% in 2015, the fastest pace since 2010. This will result in a third consecutive year of a rise in product tanker fleet growth since it bottomed out in 2012 at 2%. Demolition in both tanker segments is forecast to be around the same level as in 2014, with no significant one-off events likely to rock that boat. So far the demolition activity in 2015 has naturally been very low with

World Oil Demand

Source - BIMCO, OECD/IEA.

April 2015



TANKEROperator

strong markets, just six old product tankers and two VLCCs built in 1989 and 1992, the report said. Demand In terms of demand, the report noted that demand for crude oil and oil product tankers is currently strong and both segments are enjoying an extended winter season with high earnings. Spot market earnings in January for VLCC and Suezmaxes reached $70,000 and $65,000 per day at their peak respectively. For the product tankers, Handysizes peaked at $35,000 per day in 4Q14 before heading south in January, similar to the other product tanker segments, only to rebound in the second half of February. Product tanker freight rates on the spot market shot up in October and have managed to stay high since then. They have also enjoyed increased demand from the drop in oil prices as more arbitrage opportunities (taking advantage of a price difference between two or more markets) developed in combination with a strong season uptick. It seems that crude oil tankers are now responding to the improved trading environment by sailing at higher speeds. The report added that not since the first half of 2010 have we seen a ‘normal’ priced T/C market for VLCCs. Just before Christmas 2014, the one-year T/C rate for a 310,000 dwt modern VLCC was $40,000 per day. This was illustrative both of the movement in the market and an indicator that the significant oversupply seen in recent years has eased. The one-year T/C rates were as low as $18,000 per day in 2013 on the back of limited fixture activity as no owners wanted to commit on such low levels; at the same time the five-year T/C rate also struck a multi-year low at $26,000 per day. By comparison, at the end of February, the one-, three- and five-year T/C rates stood equal at $43,000 per day. A lot of talk about the steep contango in oil prices (where the forward price is higher than spot price) circulated during the winter on whether or not it could translate into a widespread employment of large crude oil tankers to floating storage. Such a development could boost demand and send freight rates higher. However, thus far, we have not seen much movement in this direction, as owners as well as speculators, who could benefit from this price spread have been reluctant to trade. Floating storage has appeared only to a limited extent, BIMCO’s report concluded. TO

05

INDUSTRY - MARKETS

Long Range orders key to future For a few years, there has been a wide spread belief that expanding refining capacity in the Middle East would offer strong support to the product tanker market. ndeed, this speculation supported stronger interest in newbuildings. In 2013, we saw 54 LR2 orders, compared to a total of 38 units ordered during the previous five years put together, said Gibson in a recent report. Similarly, 28 LR1 orders were placed in 2014, versus just eight ordered between 2011 and 2013. These orders were largely placed at a time of weakening tanker earnings, as returns generally eased during 2013 averaging just $10,000-11,000 per day at market speed between November 2013 and June 2014. However, the LR2/LR1 market gradually firmed during the second half of last year to the heights not seen since 2008. As expected, higher returns were supported by stronger long haul product exports out of the Middle East, once the 400,000 barrels per day Jubail refinery in Saudi Arabia reached full scale operations in late summer 2014. There had also been a notable increase in spot fixtures for larger product carriers loading East of Suez in 2014 relative to the previous year (well above volumes out the Middle East). The picture was similar in the West, particularly for LR1s, where the most significant increase has been observed UK/Continent to West Africa trades. The recent strength in LR2/LR1earnings is encouraging further investment

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in newbuildings, as since the beginning of this year, some 17 LR2 and 12 LR1 orders have been placed, up to the end of the first week of March, Gibson said. Despite this fresh wave of ordering, LR2/Aframaxes and LR1/Panamaxes still have the smallest orderbook as a percentage of their existing fleets at around 12.5% in total. This is due to a minimal investment in the dirty segment in these size groups in recent years, which in a way helped to offset stronger ordering activity for LR2s and LR1s. Marginal changes The changes in the trading fleet this year are likely to be marginal, with very few deliveries expected to enter service. The recent migration of several LR2s from the clean to dirty trade will further limit the trading LR2 fleet this year, particularly if more units follow to take advantage of the

current strength in the Aframax market. At the same time, demand is expected to increase further, once the two 400,000 barrels per day Yanbu and Ruwais refineries in the Middle East reach full scale operations over the course of 2015. However, the outlook in the medium term is more uncertain. The planned start-up of the 400,000 barrels per day Jazan refinery in late 2016 is expected to be delayed by around a year (if not longer) and this will push back export growth potential for product tankers. The supply side as of the beginning of March appears balanced to counteract this delay. However, a lot depends on how many more orders are seen in the near term. If ordering activity continues at similar levels seen over the past couple of months, by year end, the number of orders in each segment will reach record annual highs, Gibson warned. TO

Source - Gibson Research.

TANKEROperator  April 2015

INDUSTRY - NEWS FOCUS - ISM CODE

The ISM Code from a tanker perspective The ISM Code has been in force since 1st July, 1998*. t was adopted under SOLAS following several high profile accidents, including the 1987 foundering of the Herald of Free Enterprise and the 1994 sinking of the Estonia, both with a heavy loss of life. Under the Code, most vessels of 500 gt and above, including tankers, need to have Safety Management Systems (SMS) installed, developed, implemented and maintained by shipowners and managers. The SMS must be implemented both ashore and afloat. While the Code required companies to develop SMS for their vessels, it was left broadly open as to as to the terms applied and was deliberately intended to be sufficiently flexible to allow adoption by varying sized companies and spanning all industry sectors. However, at times, the Code has been treated as a form filling and check list exercise. It is seen by many as an administrative burden on vessels without the desired positive effect on safety, which is the wrong impression. The Code not only provides the basis on which companies can develop essential safety systems, along with the procedures to allow these to be checked and followed up, but compliance is also often required under charterparties, as well as for insurance coverage. Tanker owners/operators/managers is one industry sector that has had particular reason to be keenly aware of the necessity for compliance, as well as the consequences of a failure to comply. Today, tankers operate in a stringent environment where their employment is directly, or otherwise, down to ‘oil major approval’. Since a raft of highly publicised incidents down the years, culminating with the Prestige and Erika sinkings, the oil majors know of the financial and reputational impact of a major incident. As a result, the Oil Companies International Marine Forum (OCIMF)- the voice of the oil majors- developed the Ship Inspection Report Programme (SIRE), which was introduced in 1994 to create a database about the condition of tankers with the aim of improving quality

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April 2015



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and safety standards. It should come as no surprise to learn that ISM compliance is one of the things that a SIRE inspector will look for when boarding a vessel. One of the key issues that has often arisen is the shipping company management’s concern over addressing:  Achieving ISM compliance.  Concern about creating documents that result in SIRE VIQ ‘observations’.  Legal advice that suggests limiting the creation of a paper trail, which may subsequently become subject to legal discovery, or disclosure obligations. The concerns and misunderstandings of how to address these appropriately, can lead to under performance in critical ISM areas, only increasing the physical and legal risks. It is not easy to gain a complete overview of tanker ISM issues, as well as casualty data, as there is no central repository for collecting and analysing Section 9 non-conformity (NC) reports, or a central or autonomous agency that collects, evaluates and disseminates tanker incident information. Lagging behind In this regard, shipping lags behind the airline industry when it comes to accident investigation and the lessons learned. Part of the reasons are set out by Jack Devanney in his paper ‘Uses and Abuses of Ship Casualty Data’. Often the underlying reason will be a fear of embarrassment coupled with concerns over legal prejudice. This can lead to the following suppression of information; A) Ratings not reporting problems to the officers. B) Crews not reporting problems to their owners/managers. C) Some owners/managers may prefer not to learn in writing about perceived minor shipboard issues and are concerned about a paper trail being created that could be discovered during a SIRE inspection or incident investigation. Regrettably this form of approach still exists

today. An example of such an issue being tested in a New York arbitration case, led to a finding of neglect by the management and an award in favour of the claimant cargo owners. The vessel apparently had an SMS certificate for several years, but there was no single fully completed NC report or any evidence of a management review of a report in the owner’s records. That issue, combined with a seeming lack of proper planning and management oversight of voyages and repairs, led to the arbitrators reaching their conclusion. In 2014, a formal survey of ISM compliance was conducted by David Corkish and presented in a dissertation - The Effectiveness of ISM Implementation’ - to Liverpool’s John Moores University. The findings of this survey were; 1) Some vessels and organisations had a ‘culture of (avoiding) embarrassment among their managers and crew. 2) Official statements about embracing ISM were not followed through in practice, including a verified check on a particular company stating it was compliant but having been found to routinely violate STCW work and rest hours with no NC ever being filed. 3) Using the ‘5 whys’ technique of incident review often leads to issues of management practices being the root cause. 4) Section 12 of the ISM Code requires audits and annual reviews, but these may be neglected in practice. 5) Less than half of respondents were able to state that they had a ‘buy in’ to ISM’s philosophy and practice. 6) Over two thirds of respondents felt that the paperwork generated by ISM compliance requirements was excessive, distracting from other duties and contributed to fatigue on board. 7) Some respondents felt that IT support was insufficient to assists with this administrative burden. 8) Less than one third felt that an adequate and confidential NC system was in place and a similar low number did not express 07

INDUSTRY - NEWS FOCUS - ISM CODE confidence in their employers to respond to issues in a timely fashion. 9) Less than half of the respondents felt that accident and near miss reports were being taken seriously by their organisations and even more of a concern was that 30% thought the reports were not taken seriously. 10)Overall, there was a perception that paperwork was being over relied upon to achieve ISM compliance, which led to frustration on the part of those who had to complete these tasks with potential ship to shore attitudes being the root cause. From 1998-2008, John Dudley- the co-author of Skuld’s loss prevention bulletin, from which this article is taken - was the primary vetting reviewer for a large international oil trader. He examined between 400-500 OCIMF SIRE VIQ reports annually and in around 5,000 reports, he saw:  Only an occasional statement that a VIQ observation ‘would be raised as a nonconformity and reviewed according to the owner’s ISM process.  Only one company who repsonded to SIRE VIQ observations by raising a NC for every observation. The company submitted a copy of their management NC review status report as its response to the vessel’s SIRE VIQ observations.  Only one example of a fully completed NC report form, with management- of- change follow through and sign off, as a VIQ observation response. In one case, an owner’s refusal to submit any kind of written report regarding an incident that occurred while the vessel was in operation resulted in the tanker not completing a vetting successfully for two years until finally the situation was properly addressed. One thing that Dudley was particularly looking out for as a vetting manager was to read a SIRE inspector’s VIQ observation that ‘during the previous six months, 12 nonconformities were raised by the crew or during management visits and all were shown to be suitably closed out by management review and SMS changes. “Such statements were considered to be evidence of a well working SMS process on board and ashore with due reporting and follow up. So the quandary for owners and managers is - How can I create NC records of deficiencies in the operation of my vessels without the NC records becoming uncorrected observations recorded by SIRE inspectors in their VIQ report, leading to possible vetting rejections and loss of income, or creating a 08

Betwixt and between. (Source: Skuld).

documented history of apparent errors and omissions that will be used against me in an arbitration or court proceedings?” he said. Strong defence The answer is that a diligent programme of continuous improvement, including a rigorous non-conformity process, will significantly reduce the opportunity for an event that will produce a legal or arbitral consequence and the ability to demonstrate thorough implementation of ISM is a strong defence against claims of negligence Of the greatest importance, the most important step is for management to realise the importance of ISM compliance and then

ensure this is translated into proper adoption, as well as continued review and appraisal. This will mean a lot of work, but the consequence of failing to comply could lead to a loss of oil major approval, insurance coverage prejudice, as well as legal consequences- both civil litigation and authority led action. One key area to check is compliance with ISM Section 9, as this can be an easy target when passed into the hands of the lawyers. This section covers reports and analysis of non-conformities, accidents and hazardous occurrences. The question of what constitutes an adequate number of NCs, as outlined in this

Improvement is a never ending journey. (Source: Skuld).

TANKEROperator  April 2015

INDUSTRY - NEWS FOCUS - ISM CODE

Fuel consumption under control

Tankers are by and large well regulated.

section, to demonstrate compliance, is a contentious one. Owners’ responses differ greatly when asked this question. It has been suggested that there should be a basic expectation of at least some issues being reported periodically. This would allow an easy follow up on vessels that report nothing to see whether all is well or whether there may be an issue with under reporting which needs addressing There are some owners/managers that continue to resist full implementation of the continuous improvement mandate and ISM NC mechanism out of a possible concern over the creation of documentary evidence that could adversely affect vetting, arbitration or court outcomes. However, this concern should be replaced by an even greater concern of being found to have not initiated ad maintained a vigorous flow of ISM issue reports from a fleet and a return flow of change management actions for continuous improvement. On the legal and insurance side, if deficiencies are detected, serious consequences can follow. For example, the Australian Maritime Safety Agency (AMSA) has a strong track record of highlighting deficiencies and a demonstrated willingness to take robust action, including the banning of vessels found to be in non-compliance with codes and regulations. Should a significant accident occur and subsequent investigations reveal that there was a systematic ISM compliance failure on board, ashore or both, it may lead to potential legal action by authorities, including criminal prosecutions. In civil liability, this could lead to a loss of limitations and defences that could be otherwise available under contract or law. It must be remembered that vessel insurance coverage is dependent upon the vessel being fully ISM compliant. For example, Skuld changed its rules in 1998, expressly to make ISM Code compliance a condition for cover from the P&I club. TO *This article was taken from a dissertation presented by David Corkish in his final year of an honours degree undertaken at Liverpool John Moore's University, UK. John Dudley of Tankerisk assisted by providing advice and information during the data collection phase, as a primary source. The dissertation has since been published by Norwegian P&I Club Skuld under the title - ISM Compliance for Tankers - from which this article is taken. April 2015



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INDUSTRY - NEWS FOCUS - POOLS

Shipping pools: a competition law perspective In today’s difficult market conditions, it is vital for shipowners to use all available efficiencies.* esigning a pool in accordance with competition law is a way for shipowners to achieve those efficiencies and to enable them to ‘swim’ rather than ‘sink’. Although there are different models, a standard shipping pool brings together a number of similar vessels under different ownership and operated under a single administration. A pool manager is normally responsible for the commercial management (for example, joint marketing, negotiation of freight rates and centralisation of incomes and voyage costs) and the commercial operation (planning vessel movements and instructing vessels, nominating agents in ports, keeping customers updated, issuing freight invoices, ordering bunkers, collecting the vessels’ earnings and distributing them under a pre-arranged weighting system). The pool manager’s activities can be important to achieve a level of integration necessary to obtain the benefits of the cooperation. To achieve this, the pool manager must often have functional independence and be responsible for providing integrated services. He or she tends to act under the supervision of a general executive committee representing the vessel owners. The technical operation of vessels (safety, crew, repairs, maintenance) is usually the responsibility of each owner. Although they market their services jointly, the pool members often perform the services individually. Pools are assessed under competition law either as mergers or as co-operative arrangements falling short of a merger. The more integrated the pool, the more likely it is to be considered as a merger. A merger whose participants exceed relevant financial thresholds will generally

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require pre-notification and prior clearance from the relevant competition authority(ies). Clearance confers the benefit of legal certainty, but there is the risk of changes being required or even a negative decision, although there is possibly a more lenient test for mergers than for co-operative arrangements. However, many pools will not be considered to have the requisite degree of permanence to be considered as mergers, due for example to the rights of shipowners to withdraw ships on notice, or will be regarded as too reliant on their parent companies to be mergers. In some jurisdictions, particulars of pools falling short of mergers need to be filed with maritime transport regulators in any event. Co-operative arrangements For co-operative arrangements, there will generally be no competition law issue if the participants are not actual or potential competitors. For example, when shipowners set up a pool to tender for, and perform, contracts of affreightment (coas) for which, as individual operators they could not bid successfully or which they could not carry out on their own, no competition issues will generally arise. In addition, where the market share of the pool participants in a co-operative arrangement is low, for example in a fragmented market, competition authorities are unlikely to be concerned to intervene. This is because the pool participants will not have a significant economic impact on the market. But it is usually important that there is a degree of integration between the participants’ activities in the pool: otherwise, the pool could be seen as a bare cartel focused on joint selling, with the object of co-ordinating the pricing policy of the competitors, but with no efficiencies. Pools which do not involve joint selling,

Pools should not be seen as mergers.

but, for example, joint scheduling or joint purchasing will generally only raise competition issues where the parties have some degree of market power. Key points to consider include non-compete clauses, lock-in periods and notice periods and exchanges of commercially sensitive information. Efficiencies The greater the extent to which the pool gives rise to restrictions of competition (for example the higher the market share of the participants), the greater the efficiencies and pass-on of benefits to customers there must be. The efficiencies must result from the integration and could result from obtaining better utilisation rates and economies of scale, improved geographic spread and consequent reduction of ballast voyages. In addition, each restrictive clause contained in a pool agreement must be reasonably necessary to attain the claimed efficiencies. In conclusion, shipowners may find pools attractive for a number of reasons. Pools can be an effective way for shipowners to cooperate and gain efficiencies without losing TO their independence. *This article was written by Anthony Woolich, Partner with Holman Fenwick Willan (HFW).

TANKEROperator  April 2015

INDUSTRY - MANNING AND TRAINING

Improving the ship/shore interface With stringent regulatory requirements today covering ships, trading areas, ports, terminals, there is a need for a greater awareness of the ship to shore interface. his is an important element of fleet management, said Capt RK Singh, senior vice president (shipping) of Reliance Industries at the recent Tanker Operator Mumbai tanker conference. Reliance owns and operates the giant Jamnagar refinery complex, which has five SBMs and four jetties for handling crude oil, gas and petrochemicals. In addition, the Indian energy concern has other petrochemical plants in the country handling products and chemical tankers. Capt Singh said that the ship to shore interface is an important element of fleet management. It is a driver for operational excellence and the role of the vessel’s Master is also important, although the responsibility can go to a much higher level within a company, leading to a ‘blame game’ if not checked. When the ship to shore interface is working well there is an open dialogue between the two operators, which leads to a better understanding of each other’s problems. There will also be a good safety and working culture, leading to efficient and safe operations with good returns and satisfied stakeholders, he said.

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There are areas of concern due to the variable interface that is sometimes found. There might be cases of a different work culture and/or practices. He explained that actions taken on one side will affect the other side and there is always a risk with tanker cargo handling operations. He called for a greater understanding of each others operations even to the extent of giving the Masters and senior officers time in the office to work alongside shoreside personnel in order to better understand their problems. In addition, port and terminal operatives should be trained in line with the ship’s personnel. There should be a knowledge of the working practices on both sides with check lists and manuals on the port/terminal information, such as equipment, operational procedures, etc. Critical component Ship and shore personnel should complement each other as this is a critical component of vessel and terminal operations, especially with today’s improved communications technology. The Master is under regulatory and operational pressures, which can induce the ‘fear factor’. Ship’s personnel should be

involved in shoreside projects. In some cases, the shoreside managers have come from other industries and have not served as seafarers, thus lacking the understanding of shipboard operations, he said. If issues are not addressed, these could lead to excessive bureaucracy and communications. The ship could end up being operated dependent on the shore personnel, thus eroding the Masters’ authority. There is also a risk due to policy decisions being taken onshore, again leaving the Master undervalued and frustrated, Capt Singh warned. In order to improve the ship to shore interface, periodic interactions/meetings should be held and as mentioned, the rotation of ship’s senior personnel to shore duties should be encouraged, as well as increased shipboard visits by the shore staff. In addition, the ship’s officers should be trained in port/terminal operational aspects. “We need to formulate a statutory ‘port/terminal operation code’ applicable to all ports/terminals, which is mandatory and certificated periodically audited, IMO can take the lead for a Port/Terminal Operation Code,” he stressed. “Why not have a port/terminal ISPS Code?” he asked. TO

Guide for Mooring Masters published OCIMF, in co-operation with Witherby Publishing, has issued the first edition of ‘Competence Assurance Guidelines for Mooring, Loading and Lightering Masters’. There is no established requirement for this particular discipline and the guideline’s objective is to provide a competence baseline that can be applied internationally, the organisation said. It is aimed at marine facilities involved in the handling of petroleum, oil and liquefied gases. Within the context of this 80-page hardback, complete with a CD-ROM, the term ‘Mooring Master’ encompasses several April 2015



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different roles by which a shore representative provides an advisory service to vessel Masters. These include, loading Masters, lightering Masters, ship-to-ship (STS) transfer superintendents and docking/berthing Masters. The guidelines also include those involved with single and multiple buoy moorings and others that undertake STS cargo transfers. They could also be of benefit at fixed berth facilities (jetties or docks) where the terminal is responsible for managing pilotage and berthing Master services. The authors said that the advice contained in the guidelines should be supplemented by information gained from individual facility

operators by which the relevant aspects of their own procedures can be covered. Four key functions were identified that cover the main areas of the role and the basic requirements associated with both vessel and facility activities;  Facility organisation and procedures.  Safe passage for a vessel to/from the berth.  Manoeuvring, mooring and unmooring.  Cargo transfer co-ordination. A fifth function relates to the type of facility served by the Mooring Master. This includes specific competence requirements for single, or multiple buoy moorings, fixed berths and STS transfers.  11

INDUSTRY - MANNING AND TRAINING

Manning - A foreign employers perspective With manning and training in almost every shipowners and managers thoughts at present, we look at a few pointers as to way ahead from an employers viewpoint and at the Indian seafarer in particular.* seafarer’s employers expectations are competitive costings; a certificated, qualified and well trained person meeting all the statutory requirements; of a good quality and able to meet various industry requirements; a motivated and committed person able to help maintain and operate the vessel safely, efficiently and economically. He or she also needs to the loyal to the employer, who will achieve a good retention rate. Today there are risks, such as violation of the company’s drugs and alcohol policy and MARPOL; accidents/incidents which result in financial claims and reputation damage; theft of cargo and/or bunkers and on board disharmony and dismissals, due to personal issues and lack of team work. There are also challenges in the availability of quality crew, such as lack of practical training; a reduced frequency of machinery maintenance, due to technology advancements, resulting in reduced hands on and real time experience on board, also the level of training should be taken into account, as well as work practices, cultural and social issues in the case of a mixed nationality crew. The perceived imbalance in supply and demand drives up wages, leads to faster promotions and the consequential reduction in experience, leading to a drop in quality. Another problem is that a false sense of job security leads to an indifferent attitude and a drop in commitment and loyalty. It is important for an employer to position him or herself correctly in the market in terms of wages. Spiralling wages, due to shortages and poaching needs to be kept under control. An efficient use of the experience matrix should be engendered through forward rotation, planning and well though out promotions. It is recommended that officers holding a COC, but without experience in rank, may be appointed as junior watch keeping officers where an extra navigating or engineering OOW is required on board, over and above the

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safe manning requirement and/or normal working complement. A talent pipeline and a sense of belonging will positively impact on retention. It is advisable to plan any crew changes at economical ports, as it can be expensive in some locations, especially if long distances are involve. Expensive medical treatment and repatriation can occur if the pre-joining medical is inadequate. There may be a need to strengthen the PEME in line with P&I club recommendations. Loyalty to an organisation involves loyalty to its values, policies and people. An organisational culture that wins the loyalty has to be built. Leaders build the culture by consistently exemplifying and communicating the culture’s high values and right purposes. Senior leadership is committed to compliance. Only when those at the top lead by example will an organisation successfully implement a new policy. Policies are to be strictly enforced at all times and specially in

Capt Vaibhav Dalvi of V Ships.

testing times. Everyone understands the business implications of what a major ethical violation can do to an organisation. However,

Retention: three seafarer categories For the sake of simplicity, as far as loyalty towards the company is concerned, Capt Dalvi broadly divided the seafarers into three categories. Category 1 - Seafarers in this category trust the company to the core. They truly believe that it is trying to do the best for them. They are very patient, in the sense they truly believe in the top management of the company and think that everything will come good in the fullness of time, as the company is continuously taking steps towards perfection. Loyalty is part of their personality. This is a rare breed in today's market. Category 2 - Loyalty is important for the seafarers in this category, as long as everything is generally going well and to

their expectation. If all goes well, these seafarers will not go anywhere. The majority of the today’s seafarers come in this category. This is where the challenge is, as these seafarers are comparatively less patient with what they want. To retain the maximum, a strategy is needed. These seafarers are vulnerable to competition. Category 3 - Seafarers in this category strongly believe that loyalty is an outdated quality. Usually, they have very specific short term goals and their decision to be/not to be with the company is governed by these goals. This category is not so common today though their numbers are on the rise. This could as a result of the tremendous opportunities available currently for the seafarers. 

TANKEROperator  April 2015

INDUSTRY - MANNING AND TRAINING

Future seafarer supply/demand Global shipping is set to increase during the next five years or so to around 2,247 vessels, net of demolition, which requires almost 38,500 officers. On the assumption that the annual officer intake in the global fleet will be 1.5%, the supply gap will increase from the current shortfall of about 19,000 to 22,000. If, however, the officer intake is reduced from 1.5% to 1%, the shortfall will increase to about 33,500. During the past five years, taking India as an example, the number of Indian officers most people don't turn it around to understand the positive impact ethics can have on employee loyalty. As for personal growth opportunities, one of the major reasons officers leave a company is because they are not promoted when that promotion is due. Seafarer promotions in a timely manner are crucially important to achieve his or her steady career graph, as well as to improve the retention rate. Formal mechanisms/procedures need to be in place to arrange seafarers’ promotion at reasonable notice when the industry criteria of seatime, along with the required recommendation, has been met. Once the notion that seafarers are a company’s greatest assets, a commitment to their career development becomes that company’s utmost responsibility. This also valid for offering seafarers positions ashore. Today, every seafarer going to sea is very particular about ensuring that he is joining a safe ship. Substandard vessels directly adversely affect a seafarer’s retention. A company needs to be vigilant and careful while choosing vessels under its management. While aggressively seeking growth of the business, the quality of the clients & vessels we choose to work with must also not be ignored. This will go long way in gaining trust of the seafarers. Loyalty Recognition and appreciation of loyalty is also necessary as knowing and staying in touch with seafarers is extremely important. A letter of recognition and honour, signed by the CEO/president of the company should be sent to all those seafarers who have completed 10 years with the company. Considering today’s seafarer’s working span at sea, this is an achievement which should be recognised. A felicitation with a token of April 2015



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has gone up by 2,000, out of an overall global increase of about 40,000 …only 5% out of a global increase of 8%. India should work on this opportunity and can increase the numbers, as Indian officers generally enjoy a high reputation, many ship operators now have crewing offices in India, the availability of junior officers is good and officers’ wages compare favourably with the domestic economy. However, in India, the desire for quick promotion is an issue and turnover rates can be high.

recognition and respect will go long way in keeping the thread of loyalty intact. As a token of management’s recognition of the importance of the seafarer’s personal and family life, a company might bear the cost of insurance required for the families of those on board. Send greetings on important days, such as birthdays/anniversaries, etc. The problem with trying to win loyalty through ownership and retention programmes is that these are attempts at buying what must be earned and built. Loyalty should be an integral part of a person’s personality, developed through trust and mutual respect. Understood this way, then loyalty cannot be bought. It is given to those organisations, persons, that have earned it by their commitment to worthwhile values, purposes or policies. As for seafaring as a career option for aspiring Indian youngsters, this is losing it’s popularity in the main cities, as there is alternative career options in these cities and a lack of awareness in the smaller cities. Another problem is that here is oversupply of pre-sea training with little or no availability of ‘on board’ training slots (cadets) for those candidates who are not sponsored by a shipping company. There is also the negative publicity surrounding seafarer criminalisation and the threat of piracy. Quality important The quality of pool seafarers is also important. For example, know your staff’s stengths and weaknesses ashore and at sea; assess job performances against key performance requirements; identify strengths and areas requiring improvement; introduce training and personal development to improve performance and/or prepare for promotion; provide reliable/valuable sources to decide on

promotions; involve ship and shore management to improve safety, compliance and personnel seagoing standards and have access to well-equipped training centres for practical/hands on training imparted by a quality faculty. V Ships operates its own resource management training and its objectives are to understand the causes of accidents, the factors that contribute to quality performance and the relationship between them in the operational context; to gain an increased appreciation of the relevance of human factors in the maritime workplace and to gain an understanding of the necessity for communications, leadership and teamwork, situational awareness, planning and decision making and appreciate the interdependent relationships between these elements. Mentoring There is a need for on board mentors as according to the experts, up to 70% of skill is learnt through experience. It is believed that the maritime skill pool is not being passed on in the way it used to be, that is by mentoring. A typical reaction by senior officers is - “All this mentoring business is all very well but how am I going to find time for it? I am so busy that I just don't have time to sit and teach the officers, primarily what they should already know.” Mentoring can have a significant effect on team building. It leads to confidence between individuals, as they come to understand others capabilities and needs. It is excellent at breaking down barriers between individuals and this in turn leads to the cohesion of a stronger team. Successful mentoring and transfer of knowledge also leads to a reduction in accidents and incidents. In conclusion, to increase efficiency and cost effectiveness on today’s technologically advanced vessels, it is necessary to have dedicated, experienced and motivated staff on board and ashore. This can only be achieved when a positive culture driven by the high quality management exists in the organisation. Continuous efforts are required to maintain this culture by focusing on the attitude and soft skills of both ship and shore staff. All the training, motivation and positivity can give results only if the shore staff’s approach towards the seafarers is blame free. TO

* This article was taken from a presentation made by By Capt Vaibhav Dalvi of V Ships at Tanker Operator’s January Mumbai tanker conference. 13

INDUSTRY - MANNING AND TRAINING

How to cope with inspections Vessel inspections have been often debated in the light of the shear number of visits a ship’s Master and the crew has to put up with when arriving at a port or terminal. s has been often said in the past, there is a lot of duplication in class, oil major, port state, flag state, P&I inspections, etc. These have led to many different types of inspections all having specific requirements. Capt Kapil Dev Bahl of Murray Fenton India speaking at Tanker Operator’s Mumbai conference called for more uniformity and said for example, there were fundamental differences in approach between class and the OCIMF SIRE inspections.

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Class will deal with a specific item, while SIRE VIQ looks at the causes of an ‘observation’, and asks should they have been identified by the ship’s crew through their operating procedures. He also pointed out that the VIQs also take in the positives from shipboard operations. However, there was a certain amount of overlap between the IACS and OCIMF inspection criteria, which could be eliminated. He also said that the oil majors interpreted VIQs and risk assessments differently, as various specifics come into play, including charterers, ship and cargo requirements. “We have come a long way in communications and must move forward to a uniform system,” he said. Capt Bahl said that he sympathised with a ship’s crew who were under tremendous pressure. He said that he was aware of the effort put in to get through an inspection successfully

First impressions, as outlined by the ICS, should be avoided when walking up the gangway, for instance, who is meeting the inspector and how is he greeted. He said that an inspector can see through first impressions after a couple of years. Quayside observation For example, before boarding a ship, an inspector should walk down a quayside or terminal and look at the moorings, ships marks, crew working on deck, etc, as the crew will usually be ready for an inspection on board. On board, pre-inspection meetings and agreeing the order in which an inspection is carried out were also recommended practices. He also said that the factors influencing an inspector’s comments are;  What is the defect?  Where is it?  What is wrong with it? Capt Bahl stressed that the way forward was to put less pressure on the crew and have more uniformity in the various inspections. He accused the shipping industry of not being very forthright with technology, unlike the aviation industry. He also stressed that it was not in the oil major’s interests to eliminate a tanker from it’s SIRE pool, due to creating less competition between the vessels in the pool. TO

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TANKEROperator  April 2015

INDUSTRY - MANNING AND TRAINING

Improved method of training and assessing COLREGS UK-based navigational trainer ECDIS Ltd has recently utilised new simulation training technology for COLREGs (collision regulations) teaching aids. his has created a brighter way to train and assess students from the 150 major shipping company clients in the classroom, the company claimed. Using the new technology via projectors, the assessors, instructors and students have the dynamic ability to continuously change the COLREGs situation, in a variety of meteorological conditions, from any aspect of any vessel, ie port or starboard, birds eye, helm positions and free orbital. Long gone are the days of using ROR flip cards and magnetic smartie boards, ECDIS Ltd said. This complex database of a variety of vessels and ports, enables the instructor to change everything, including vessels lights, pennants and hoist shapes. The technology behind this system is very

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complex using a physics engine for water simulation and seabed collisions, arranged together in an easy to use drag and drop style of play. In the hands of company instructors, this is a powerful tool, giving the ability to create fresh teaching aids within minutes, demonstrated in real time, the company said. This gives the trainees an understanding of critical situations and how the appropriate manoeuvres should look, not only from their own ship, but also how the same situation would, could and should look like from other vessels viewpoints. The trainees then take this theory from the classroom and put it into practice in the full mission bridge simulator (FMBS). This is a seamless transition for ECDIS Ltd and the possibilities of learning are endless, especially so when it comes to simulator training, the company claimed.

Robyn Harrigan, ECDIS Ltd’s training and production manager told Tanker Operator that the company uses a basic third party software, which is enhanced in house by 3D environmental artists, who are very experienced in their field for creating vessels and ports as 'real life' as possible. “We have found this vital when using simulators for training as these small life like details increases the quality of the courses and the overall experience for the students,” she said. The great thing about this bespoke piece of training software is that, it is on hand in the classroom in addition to the bridge simulator. Therefore, a company can decide to send their officers for classroom based theory training, bridge team discussions and or revision, in additon to having the use of the bridge simulator for assessments, she explained. TO

The COLREGS situation can be continuously changed.

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INDUSTRY - MANNING AND TRAINING

Shipmanagers should understand owners needs Third party shipmanagers need to understand the market their owners are involved in said Capt Deepak Gupta of Univan Maritime, speaking at Tanker Operator’s Mumbai conference. e explained that once a tanker enters a market, it usually remains in that market. The vessel’s operational expenses (opex) will rise or fall depending on that market. He described opex as being a factor of four items - size of vessel x wages and subsistence x stores, supplies and expenses x fuel consumption (not fuel costs). The size of the vessel and the fuel consumption are a fixed input, while wages and subsistence plus stores, supplies and expenses he described as elastic and plastic by nature. He thought that the fixed input items were very elastic due to improving technology, better engines, new initiatives, etc. However, the other two considerations were elastic but very plastic since 2000 - labour being unresponsive, new regulations, vetting and other local requirements. He described the tonnage density in a segment as plastic as it does not change. It is important to know in which segments there is density economics and where there is density dis-economics, he said. He then described Factor K, which measures the opex response to a change in tonnage. For example, if K is 0.4 then for every 10% increase in the tonnage size, the opex effect increases by 4%. If K equals 0, then opex is perfectly elastic to increase in size and wages/subsistence and stores/supplies/expenses are responsive as required. In this scenario, opex is not actual, but is a factor against earnings. Density economics is therefore expressed as  ED = 1- K.  ED = (+) is density economics.  ED = (-) is density dis-economics. He outlined the historical K values as -

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An attentive audience listens to the speakers.

 35 – 40,000 dwt = 0.045.  25 - 35,000 dwt = 0.066  40 –50,000 dwt = 0.199  < 25,000 dwt = 0.351  Up to 150,000 dwt = 0.41– 0.65  >150 000 dwt = 0.892 He explained that we need to know all of this as it gives more correlation to market conditions, encourages focus groups in companies, helps owners win the earnings situation they find themselves in and identifies stress group vessels. Gupta warned that shipboard competence levels were falling, as the more experienced people were to be found onshore, thus the shipboard support needs to increase, so certain segments should be invested in, including training. How do you persuade owners to invest in training? he asked. Show the owners the difference in spending by using the competence and support from the shore and try to prove that extra expense is being incurred. Putting opex in a bit more perspective,

Gupta gave a breakdown as follows  Crewing costs = 55%  Stores = 6%  Spares = 7%  Lube oil = 8%  Provisions = 3%  Repairs/maintenance = 5%  Insurance = 12%  General = 4% In ideal conditions, Gupta proposed that third party shipmanagers should understand the opex inflexibility in the market and the high plasticity in the two factors outlined above. An owner’s perspective should be understood by correct market density statistics and response. The vessel’s management should be aligned and focus groups created. The cost variables should also be reduced for owners. Owners’ specific needs should be identified and operational expertise should be increased. Gupta said that the big pool players are beating the statistics by a large margin, but the pools where the K value will hurt the owner should be targeted to help them ride the market better. TO

TANKEROperator  April 2015

INDUSTRY - MANNING AND TRAINING

Singapore to fund training Singapore’s government has allocated S$65 mill ($47 mill) to maritime training. he money will be used by the Maritime Cluster Fund for Manpower Development (MCFMD), an existing programme being run by the Maritime and Port Authority of Singapore (MPA). “MPA is committed to building a strong core of local talent in the maritime industry, which offers diverse career opportunities for Singaporeans in both seafaring and shorebased jobs,” said Andrew Tan, MPA CEO. “The enhancement to the MCF-MD programme not only lends strong support to the national-level SkillsFuture initiative but also allows us to support more skills-based

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learning, upgrading and re-skilling for those who want to switch careers.” MPA formed two task forces: the tripartite maritime manpower task force for seafarers and the maritime manpower task force for shore based sectors, in May and November 2014, respectively. The seafarer task force was set up to develop measures to encourage Singaporeans to take up seafaring careers and improve retention of talent, through training grants and achievement awards. To complement the efforts of this initiative, MPA will set aside an additional S$6 mill ($4.3 mill) over the next five years to award

up to 20 scholarships each year, double the number awarded in previous years. To date, more than 130 scholarships have been awarded. The shore-based task force will develop strategies to help maritime companies fill positions for critical shore-based jobs. A key area to be pursued is the re-training of locals to convert from seagoing to shore-based jobs. The task force will also develop a programme to equip non-maritime personnel with relevant skill sets so they can pursue a maritime career. This task force will first focus on jobs in areas such as port operations, ship operations and shipbroking.

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INDUSTRY - MANNING AND TRAINING

UK cluster cooperation evident in education The UK county of Hampshire’s Portsmouth/Southampton corridor is fast becoming a major maritime cluster, which includes specialist maritime education and training facilities available for all levels. or example, last year saw Lloyd’s Register open a new global technology centre (GTC) on the campus of the University of Southampton University. LR said that the move to join the Southampton Marine and Maritime Institute (SMMI) will enable the class society to offer a first class global marine research and technology network. LR also said that its move was made to stimulate innovation, create new business and establish Southampton and the South Hampshire region as a magnet for investment. SMMI director Prof Ajit Shenoi said that there were three ways in which the partnership with LR is likely to have an impact;  Education and co-location will improve the learning process with students and graduates benefiting as they become more employable.  Impact it will have on fundamental research.

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 Importance of the here and now - while shaping the future, we have to think about the industry’s short term problems. “It’s about creating n environment where free thinking around radical new ideas can shape the future agenda. It’s about giving thought to what will be on the agenda in five or 10 years time and giving people the space to think so far ahead requires the environment that this new initiative will create,” Prof Shenoi said of the GTC’s opening. Shell is to sponsor a professorship at SMMI. Dr Grahaeme Henderson, vice president, Shell Shipping and Maritime, speaking about the cooperation said, “Shell is firmly focused on contributing to world class academic research and cutting edge technology developments for the maritime industry. Our recent sponsorship of a Professorial Chair for marine and maritime technology at the University of Southampton underlines this commitment. “The UK is a global leader in shipping and

the Marine and Maritime Institute at the University of Southampton has proven itself to be an internationally recognised centre of excellence. The University has a long history of maritime activities and an immense wealth of interdisciplinary technical research and development in this field. “The creation of LR’s GTC at the University of Southampton is good news for the industry,” he concluded. During a couple of visits to Hampshire recently, it became apparent to Tanker Operator that the level of co-operation between industry and learning/research institutions was growing rapidly. Another example is Fareham College’s Centre of Excellence in Engineering & Manufacturing Advanced Skills Training (CEMAST), which has combined with industry to offer engineering apprenticeships. From last year, school leavers up to UK GSCE standard can now take a one year City

TANKEROperator  April 2015

INDUSTRY - MANNING AND TRAINING

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INDUSTRY - MANNING AND TRAINING and Guilds Level 2 Diploma in Engineering (Marine). This course is designed to provide a specialist work-related qualification and training in marine engineering. It provides sound preparation for those seeking an apprenticeship or progression to a higher level course such as the National Diploma, CEMAST said. The introductory units cover:  Introduction to the marine industry.  Health and safety requirements.  Marine terminology.  Small boat and marina engineering. The apprentices are taught how marine diesel engines work, how to identify faults and how to fix them. Routine maintenance tasks are carried out on the engines and apprentices learn about gearboxes, propellers and other means of marine propulsion. Once gaining a Grade 2 diploma, the apprentices can then progress to a Level 3 Marine Engineering Qualification - Advanced Diploma in Engineering (Marine), leading to a City and Guilds extended Diploma in Engineering. Level 3 is a two-year full time course and requires an Intermediate Diploma in Marine Engineering to qualify for this next stage. This course provides further practical skills and experience required to progress to an apprenticeship or further study (eg, Higher National Certificate/Diploma or an engineering degree). It covers a variety of topics and allows an apprentice to study particular areas in depth, including - fault finding, maintenance, diagnostics and engine repair. Students can then progress into employment or on to an apprenticeship within the leisure or deepsea marine sector. The college has many apprenticeship partners who can conduct interviews on site.

Those looking to continue their marine education can progress through a partnership to Warsash Maritime Academy where they can study up to HND or Degree level. Those candidates who have secured sponsorship with an employer can carry out training at sea before returning ashore to complete an HND in marine engineering. CEMAST will also help with the placement of an apprentice. The college has also built up a partnership with local schools to encourage pupils to take up engineering by way of for example, fairs held on the college’s premises and cooperation agreements are in place with Warsash Maritime Academy and Solent, Southampton and Portsmouth Universities. At present there are around 900 full time, part time students and instructors at the faculty, involved in various engineering courses for many different industry sectors. Fareham College’s programme manager for work-based and marine engineering Kevin Attwood told Tanker Operator that today there were more electrical and mechanical engineer apprentices coming into training, but there was still a shortage, resulting in higher remuneration for qualified engineers. He also noted that in general there were more females taking engineering courses - around 10% at CEMAST. The centre also takes on 14-year old pupils in its skills academy for one day per week training. One of the partnerships involves Farehambased NuWave Personnel, part of the Bachmann Group, which is soon to relocate to site next to the college near Lee-on-Solent. NuWave Personnel was launched in August 2002 and since then has registered over 30,000 seagoing and shore-based candidates on its database from all over the world. This compliments the company’s expanding client base, which now includes tanker owners/operators.

The company offers recruitment and placement, HR crew management, crew training and payroll administration. For training, a subsidiary company, NuWave Training, offers short courses for both seafarers and shore-based personnel. Bespoke courses, such as tanker courses, can be tailored to a company’s specific needs, both on site and on a company’s premises at any time, including evenings and weekends. Training rooms are available at NuWave or instructors can travel to a vessel anywhere in the world. The costs are described as competitive and depend on the numbers to be trained and the number of courses booked. The tanker courses cover crude oil transfer/liquid cargo handling, crude oil washing (COW)/tank cleaning and inert gas systems. For example, the COW course is conducted with a simulated model of a Suezmax and a product tanker. A liquid cargo handling simulator is used to support explanations and to demonstrate COW systems on Suezmaxes and deepwell pump fitted tankers. NuWave Training business development manager Keith Austin explained that in some instances, a seafarer might not have the correct certification for a certain type of vessel or position. To alleviate the problem, the company is able to offer a quick specific training course to enable that seafarer to join his or her designated ship. He explained that some of the courses were accredited by the UK Maritime & Coastguard Agency (MCA) and DNV GL and that the instructor is a serving Master Mariner. By offering flexible training solutions, other local marine training academies, such as Warsash or ECDIS Ltd, can make use of the companies courses and facilities, Austin TO said.

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INDUSTRY - ANTI-PIRACY

Internal vessel hardening vital to deter pirates UK-based anti-piracy passive equipment supplier Easi-Chock has met with a great deal of interest and success since it was founded a few years ago. or example, the company has fitted anti-piracy packages on 35 vessels owned and operated by a Premier Danish Tanker Company and is also to install equipment on the new builds at the shipyards. Company founder and projects director Wayne Harrison explained that he had idea in principal shortly after his first vessel transit of the designated Gulf of Aden/Indian Ocean High Risk Area (HRA) in the capacity of a Maritime Security Liaison Officer (MSLO). On the 31st October, 2010, Harrison was part of a four man team on board a chemical tanker transiting through the Mozambique Channel towards Dar-es-Salaam when the vessel was attacked and boarded by Somali

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pirates. The attack, including the occupation of the citadel and the eventual self-liberation, lasted just over eight hours. At the time, the vessel was recorded as the slowest and lowest to survive a pirate boarding. The security team understood the importance of hardening the vessel, not just externally with razor wire but also internally. For example, the team knew that it was of great importance to have a safety corridor from the bridge to the safe room/citadel door. Luckily, the team had plenty of time to prepare the vessel and crew for a hazardous transit. Harrison has since lead many teams on vessels through the HRA and down the years, he realised that the time to prepare the crew

   

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and vessel was reducing, mainly due to the high day rates charged by armed teams, and saw the need for a quick and easy solution first hand He also found that many vessels were not hardened by previous security teams with an understanding of MoE (Methods of Entry), as improvised door securing devices fabricated on the vessel were not tried and tested, thus there was no knowledge of whether they would work when required. Over the past five years, he has invested a lot of time and effort in refining an idea he had for a universal door chock that can be deployed in seconds by any member of the crew, removed just as quickly for a non-pirate related emergency and would stop, hinder and deter

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INDUSTRY - ANTI-PIRACY any unwanted aggressor. The result of his labours was the forming of Easi-Chock™, a company which today offers a suite of products designed to enhance existing

Easi-chock’s secure door system.

structures in order to create a complete fortified superstructure, Company Security Officers can then opt to implement additional levels of security devices for their designated safe area. “The products are designed to keep the pirates/robbers out of the superstructure and denying access to the crew,” he explained. “We do not focus just on the citadel approach within the engine room, as many owners and operators do not employ the citadel method.” A full vessel package including EasiChock™, Easi-Grille™ and Easi-Block™ are designed to be installed by the crew, and removable when not at risk, the typical cost of a vessel pack for a Suezmax tanker is around $10,000, compared with current traditional methods costing two to three times as much per vessel, plus the asset is transferable, he claimed. Harrison said that the company was set up to protect life and assets by offering a low cost, effective, time saving suite of security products. By embracing the layered defence approach, as outlined in the shipping industry’s Best Management Practice 4 (BMP4), all

access points, doors and portholes are secured including internal access doors in order to provide a safe corridor of access for crew are included in Easi-Chock™ “Vessel Specific Hardening Matrix” plan. He said he believed in the passive system of defence, as coupled with a good understanding of the threat, deployment of good security measures and the ability to remove the crew away from the threat is key to preserving life and securing property. Easi-Chock™ not only focuses on securing the outer perimeter of the superstructure, portholes and doors but all external storage areas, as these areas usually contain items, which have either a value to the aggressors, or could be used against the crew, he explained. As well as supplying locking devices, a door bar system is also available, which is similar to the other equipment on offer, in that they are a no weld easy to install system and simply drop in to secure a door. These can be quickly removed if required and have been designed to protect the bridge internal access door, engine room access door and emergency exit doors TO on the accommodation decks.

Southeast Asia - procedures and vessel hardening As has been well documented, there has been a surge of piracy related incidents, including thefts, robberies, as well as vessel hijackings for cargo siphoning during 2014*. Further incidents have already been reported in the first months of this year. As a result, ships, particularly smaller tankers, should consider taking mitigation and loss prevention measures, leading insurance and P&I association Skuld warned. There has been a noted increase in the number of incidents in Southeast Asian waters with respect to piracy, as well as other physical crimes against crews and vessels. While thefts and robberies, often at anchorage, have been a problem for some time, it is the hijacking of small tankers for the purpose of stealing the cargo on board typically gas oil and similar products - which has become a relative new and significant issue. During 2014, the IMB noted 16 hijacking incidents and the Singapore anti-piracy organisation ReCAAP recorded 11 siphoning incidents. It should be noted that some of these incidents overlap. Thus far in 2015 (midMarch), up to three tankers may have been 24

hijacked, according to reports. While the cargo theft issue appears to affect smaller tankers of below 5,000 gt in particular, some attacks and thefts have been perpetrated on other types of vessels. All vessels should therefore take note and seek to implement appropriate safety response measures, Skuld said. The implementation of a functioning ISPS/SMS Code on board and ashore is also important. A number of points and issues were raised, based on IMT's review of past incident investigation reports (see footnote below). In particular the following steps may be advisable:  Participating in the Information Fusion Centres (IFC).  Sourcing and disseminating IFC alerts, as well as ReCAAP alerts and information.  Using designated safe anchorages in Indonesia - where practical and available.  Advance preparation and risk analysis.  Hardening plans and implementation on board vessels.  Practice drills and on board procedures for responding to an incident. A particular incident report from the US Office of Naval Intelligence in December, 2014 indicated that where a vessel was well

prepared, both physically, as well as in crew training, it was possible to frustrate the pirates' plans. The successful prevention process can be summarised as; Detect, deter, delay and deny. Skuld said that it had previously advised in detail on piracy matters, including general information on the Best Maritime Practice (BMP4) and other initiatives. Region specific information on piracy is also available. Emergency response Should a vessel be threatened or otherwise have security concerns then urgent contact should be made with:  Nearest Coast Guard or Navy.  The vessel's flag state.  The ICC/IMB as well as ReCAAP. Following contact with law enforcement and other first responders, companies should also make urgent contact with their insurers/P&I clubs should an attack occur. TO *This article was reproduced from a Skuld loss prevention bulletin in turn taken from an International Marine Transportation Singapore’s Safety Alert Bulletin, published earlier this year.

TANKEROperator  April 2015

TECHNOLOGY - ICE CLASS TANKERS

Gearing up for the Polar Code The International Code of Safety for Ships Operating in Polar Waters (Polar Code) should enter into force with the SOLAS amendments on 1st January 2017, under the tacit acceptance procedure, the IMO has decreed. t will apply to new ships constructed after that date. Those constructed before 1st January, 2017 will be required to meet the relevant requirements by the first intermediate or renewal survey, whichever occurs first, after 1st January, 2018. The Polar Code and SOLAS amendments were adopted during the 94th session of IMO’s Maritime Safety Committee (MSC), in November 2014. As the Code contains both safety and environment related provisions, it will be mandatory under both SOLAS and MARPOL. In October of last year, IMO’s Marine Environment Protection Committee (MEPC) approved the necessary draft amendments to make the environmental provisions in the Code mandatory under MARPOL. MEPC is expected to adopt the Code and associated MARPOL amendments at its next session in May, 2015, with an entry-into-force date to be aligned with the SOLAS amendments. As has already been well documented but worth repeating, the Code is intended to cover ship design, construction and equipment; operational and training concerns; search and rescue; and, equally important, the protection of the unique environment and eco-systems of the polar regions. The draft Polar Code includes mandatory measures covering safety part (part I-A) and pollution prevention (part II-A) and recommendatory provisions for both (parts I-B and II-B). Once it has entered into force, it will require ships intending to operating in Antarctic and Arctic waters to apply for a Polar Ship Certificate, which would classify the vessel as Category A ship, ie a ship designed for operation in polar waters at least in medium first-year ice, which may include old ice inclusions; a Category B ship - one that is not included in Category A, but designed for operation in at least thin first-year ice, which may include old ice inclusions; or a Category

I

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C ship - one designed to operate in open water or in ice conditions less severe than those included in Categories A and B. To qualify for a certificate, a vessel will require an assessment, taking into account the

anticipated range of operating conditions and hazards the ship may encounter in the polar waters. This assessment would include information on identified operational limitations, and plans or procedures or

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TANKEROperator  April 2015

TECHNOLOGY - ICE CLASS TANKERS

Graphic credit: IMO.

additional safety equipment necessary, to mitigate incidents with potential safety or environmental consequences. Ships would also need to carry a Polar Water Operational Manual, to provide the owner, operator, Master and crew with sufficient information regarding the ship's operational capabilities and limitations in order to support their decision-making process. Each chapter in the Code sets out goals and functional requirements and will include those covering ship structure; stability and subdivision; watertight and weathertight integrity; machinery installations; operational safety; fire safety/protection; life-saving appliances and arrangements; safety of navigation; communications; voyage planning; manning and training; prevention of oil pollution; prevention of pollution from noxious liquid substances from ships; prevention of pollution by sewage and prevention of pollution by discharge of garbage. Ships operating in the Polar regions are exposed to a number of unique risks. These include poor weather conditions and the April 2015



TANKEROperator

Ready for the Arctic shipping build up.

27

TECHNOLOGY - ICE CLASS TANKERS relative lack of good charts, communication systems and other navigational aids. The remoteness of the areas makes rescue or clean up operations difficult and costly. Cold temperatures may reduce the effectiveness of vessels equipment, ranging from deck machinery and emergency equipment to sea suctions. When ice is present, it can impose additional loads on the hull, propulsion system and appendages.

In November 2012, the MSC adopted a new mandatory ship reporting system in the Barents Area, proposed by Norway and then Russia, which entered into force on 1st June, 2013. This involves tankers, which have to report either to Vardø or Murmansk VTS centres. Trends and forecasts indicate that the numbers of vessels entering the Polar areas, primarily the Arctic in the case of tankers, will

grow, despite the apparent stand-off between the West and Russia. For example, gas and condensate cargoes should start to be loaded at the Sabetta terminal on the Yamal Peninsular the same year that the Code enters into force. In addition, shuttle tanker activity from the Arctic offshore terminals to Murmansk for onward shipment will no doubt increase in the next five to 10 years, while it will be interesting to

Oil spills in ice covered waters Filming began in early March on the International Tanker Owners Pollution Federation's (ITOPF) new production ‘Oil Spills in Ice Covered Waters’. This film will consider the strategies employed to deal with spills in some of the most challenging conditions on the planet. ITOPF and the production team travelled north of the Arctic Circle to Svalbard and to Lulea in Northern Sweden in January and

28

February to film in the harsh climate and remote locations that can pose special challenges for spill response. In the Arctic, as well as other icy waters, clean-up techniques that work elsewhere need to be modified to ensure that they are effective, ITOPF said. This film will review the response strategies available, and the factors that need to be taken into account in implementing them. It will feature the scientists at the forefront of

research into the fate and behaviour of oil in ice and the refinement of methods used to minimise impacts. The film will also show ITOPF staff as they train in preparation for operating in harsh Arctic conditions. It is scheduled for release in Spring 2016, but in the meantime a two minute trailer has been released, which gives a flavour of what will be a succinct review of prevention, preparedness and response in ice-covered waters. 

TANKEROperator  April 2015

TECHNOLOGY - ICE CLASS TANKERS see whether the Northern Sea route (NSR) becomes competitive during that period. In March, the Oslo Arctic Summit, organised by The Economist Events, brought together over 150 government and industry leaders, indigenous groups and intergovernmental organisations to discuss the key issues, challenges and opportunities concerning commercial interests and operations in the Arctic. "Conflict with Russia, the slumping oil price and more dramatic evidence of human-induced warming in the Arctic makes this an exceptionally important moment to discuss the Arctic," said James Astill, Political Editor, The Economist and Arctic Summit chairman. As accessibility to the Arctic region increases due to climate change, the volume of shipping in the region is also gradually increasing. Currently this is primarily in support of energy exploration, but also involves increased destination transport between Arctic ports and the rest of the world. "The Arctic is the last realm where the West and Russia can co-operate together in a healthy, diplomatic way," said Astill We are seeing the beginnings of the commercially viable use of the Northern Sea Route (NSR); a route that Russia expects to increase five-fold in the next decade. “Transit shipping can save up to 30% by passing through the Arctic and the security challenges of the Suez Canal makes the northern route even more attractive,”said Peter Hinchliffe, Secretary-General, International Chamber of Shipping (ICS). If they cannot solve their differences, tension and mistrust between Russia and the West could rapidly turn into an obstacle for development in the Arctic. “The foundation of the Putin business model is that world politics is a chess game, and hence Russia is mistrustful of win-win solutions,” said Edward Lucas, Energy, Commodities and Natural Resources editor, The Economist. At the summit, the ICS highlighted important issues associated with the growth of Arctic shipping and expressed confidence in the industry’s environmental performance. The chamber stressed the critical importance of a mandatory and uniform regulatory framework to ensure maritime safety and environmental protection, as the volume of Arctic shipping gradually increases in response to new interest in developing the region’s natural resources. Hinchliffe, explained: “The IMO is the appropriate forum for developing standards for ships operating in the Arctic, as it has the April 2015



TANKEROperator

necessary legal and technical expertise to take full account of the interests of all maritime nations including those with an Arctic coastline.” Polar Code backing He added that the shipping industry is fully committed to the implementation of the mandatory IMO Polar Code, following its recent adoption by the member states. “The Polar Code will deliver an even greater level of confidence in the environmental performance of shipping using a risk-based approach, which addresses the hazards relevant to the type of ship operation, the ship’s location and the season of operation,” Hinchliffe said. ICS stressed that the shipping industry’s environmental performance is very impressive. But the industry fully recognises the concern about the potential sensitivity of Arctic ecosystems and the need for a high degree of care when ships navigate Arctic waters, which is fully reflected in the new IMO Polar Code. With respect to society’s concern about the negative impact of CO2 emissions on climate and the delicate environmental balance that exists within the Arctic region, ICS emphasised that shipping is the only industrial sector already covered by a binding global agreement, at the IMO, to reduce CO2 through technical and operational measures. According to the latest IMO Green House Gas Study published in 2014, the global shipping industry had reduced its total emissions by more than 10% between 2007 and 2012. With regard to the future governance of Arctic waters, ICS believed that Arctic coastal states should avoid imposing discriminatory treatment that might prejudice the rights of ships registered with non-Arctic nations, and highlights the

importance of appropriate fees for services. The chamber suggested that there was a need for greater clarity regarding the legal status of Arctic waters as determined by the UN Law of the Sea (UNCLOS). “As remote Arctic sea routes become accessible these once academic issues are becoming increasingly important,” Hinchliffe explained, arguing that the UNCLOS regime of ‘transit passage’ for straits used in international navigation takes precedence over the rights of coastal states to enact unilateral measures against international shipping. The classification society DNV GL also used the Arctic Summit to discuss safety issues within the offshore industry in the Barents Sea. In its report, ‘Emergency response for offshore operations in the Barents Sea,’ DNV GL examined the feasibility of emergency preparedness solutions and called for the offshore industry to collaborate on new response concepts. This also applies to the commercial shipping either arriving or departing Arctic ports, which is set to grow considerably, or transiting TO through the NSR.

29

TECHNOLOGY - SHIP EFFICIENCY

Reducing costs and improving performance Real-time reporting and data analysis are key tools to understanding and improving complex operating environments of today’s companies.* his is especially true where the overall effects of any individual action can be very difficult to identify without a proper tool set at

T

hand. Identifying and continuously improving best practices are also best served by the same process, which then allows shipowners and operators to see what’s happening underneath all the noise — to find what otherwise would be lost in the variance of the data. In order to make operational improvements driven by data analysis and reporting, a systematic approach is needed that covers key areas, which must be studied, analysed, changed and constantly monitored in order to meet the desired outcome - efficient, costeffective operations. The five steps of this systematic approach are: 1) Identify improvement areas: digging deep into the details to find the issue. 2) Understand the current situation - learning how operations/processes are created and linked. 3) Plan improvement actions - charting a course for reaching a desired target state. 4) Implement change - working the plan for continuous improvement practices. 5) Follow up and maintain change - ensuring the change benefits continue to materialise. When analysing a fleet’s performance in general or a focused area of operations, bringing the lowest performers to at least the level of average performers is often both the fastest and most effective action. The following examples reveal how deep analytics and reporting can pro-actively create changes that have a positive domino effect across an entire organisation. Example 1 - Fleet speed profile performance Here we have two vessels from a study we carried out with one of our customers. Each 30

Graph speed profiles.

dot on the graph above represents one leg operated by the vessel and how much extra energy was used because of the speed profile and engine combinations. Both vessels operated on comparable schedules under similar conditions. Problem identified: By using specific datagathering processes via the Eniram Platform on both vessels, we were able to determine that vessel A had a tendency to sprint in the beginning of the leg, then loiter at the end, which naturally leads to lower overall speed profile performance. Result: By identifying the vessel differences, we were able to help the customer reduce the total fuel consumption of Vessel A by around 1% of the total fuel consumption. The visibility of the effects of the speed profile enabled the shipping company to take improvement actions on vessels where it was most needed. Observation/recommendation: Further analysis can be used to find the real causes behind those differences. Planning improvement action, executing on that action and consistently following up is the only way

to ensure a successful outcome. Example 2: Bunkering management case study Our customer needed to find out if some of the vessels in the fleet were carrying too much heavy fuel oil (HFO) on board. Problem identified: Again using the Eniram Platform, we performed several analyses on the vessels’tank levels and found that despite consistent bunkering patterns in the same port and no major bunker price differences, many vessels were indeed holding too much HFO. Result: We helped the customer eliminate the extra 1,000 tonnes of HFO on each vessel; the difference of over 1,000 tons of HFO on board between the minimum levels means increased draft, and that there is an extra $500,000 tied in working capital on the vessel, which costs in total circa $100,000 each year per vessel depending on the type of vessels and company’s internal capital cost. Observation/recommendation: Simply by using our in-depth reporting analysis, and performing follow-ups on tank levels through a regular report that aggregates data on the amount of fuel on board, the company could

TANKEROperator  April 2015

TECHNOLOGY - SHIP EFFICIENCY

Bunkering management.

easily track fuel levels. Our customer was able to bring down the levels of HFO closer to the company’s policy; showcasing how bringing this high-level of sophisticated data analytics can help to improve overall operations when these problems become visible. Example 3: Active route management Routing is a very traditional problem and also very complex with many factors affecting it, such as weather, shallows, distance to the shore, currents and ECA zones. When analysing routing, quite often the

most effective way to improve this within the fleet is to compare where the vessels are having the most problems and then create best practices for those legs, which seem to be problematic. In this case, the difference between the best and worst routes is over 12% of the total fuel consumption - a rare case. According to our advanced analytics studies, the overall average potential improvement of actively managing routes of a fleet is typically around 3% of the total fuel consumption. We understand that every operational issue

is different and every company has different operating parameters. That’s why we customise our solutions, yet use a proven systematic approach. Data analytics and reporting is an inexpensive way to find and realise quick wins in operational efficiency. In many cases, customers see a change within a matter of weeks after we detect the problem and help them improve best practices. Constant follow-up enabled by regular reporting and analytics is a key factor in maintaining the achieved benefits of all improvement actions. Detailed analysis and modelling enables the separation of environmental effects from operational effects and to understand where the focus of improvement action is needed. Without data gathering, analyses and constant reporting, it can be very difficult to find the subject and effect from complex on board systems. Eniram offers powerful tools to get at the most minute of details and unravel the mystery, bringing better transparency, efficiency and operational performance to a TO single vessel or an entire fleet.

Eniram’s Henrik Lano.

*This article was written by Henrik Lano, who is Eniram’s director of analytics and a former management consultant. He has had broad experience gained from various industries in transforming data and analytics into operational insight and improvements. He is responsible for developing Eniram’s analytics services to drive energy efficiency and savings. Active route management.

April 2015



TANKEROperator

31

TECHNOLOGY - SHIP EFFICIENCY

Energy saving opportunities available today Energy saving opportunities for existing ships were outlined by Indra Bose, head of vessel performance management department, Great Eastern Shipping at Tanker Operator’s recent Mumbai conference. e explained that last year, the company had set up this independent department to look at vessel efficiency for both newbuildings and retrofits on existing ships. Some of Great Eastern’s vessels have been fitted with a Becker Marine Mewis Duct. There will be a need to conduct model and tank tests and full scale trials, as a means of validation, but the costs can be spread over a fleet’s sister vessels, he said. Retrofitting takes around four days. The return on investment in fitting a Mewis Duct is strongly dependant on the number of vessels in the series, the prevailing bunker prices and the operational profile of the vessel, ie sailing days and speed. He also pointed out that manufacturers including Becker Marine, were building up a database of standard ship types, which could benefit the most from the fitting of ducts. As a result of using the database, the costs involved in the purchase and fitting of the equipment would be less, as the design work had already been conducted. There are other energy saving devices, such as the Schneekluth WED and spoilers, plus the Mitsui OSK propeller boss cap fin (PBCF), which he said was easy to fit and maintain and validated through CFD. MOL has fitted more than 1,700 PBCFs, the company claimed. Bose warned that occasionally, the PBCF blades can fall off so it is important to ensure that they are fitted properly. Others include the Kappel propeller, which is now part of MAN Diesel & Turbo’s portfolio, which Great Eastern fitted to some of its vessels last year with good results and the CLT propellers developed by Sistemar of Spain - the evolution of the tip vortex propeller (TVP). Propeller efficiency reaches the highest value when thrust generated on a propeller

H

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blade continuously increases from the boss to the tip. In a CLT propeller (contracted and loaded tip propeller) this theoretical principle is realised by fitting an end plate at the blade tips. This results in a higher efficiency of between 4-8%, fuel savings = reduced emissions, higher top speed = greater operational flexibility, inhibition of cavitation and of the tip vortex, less noise & vibration, lower pressure pulses, lower area ratio, greater thrust, smaller optimum prop diameter and better manoeuvrability, Bose said. Finally, the TIP propellers are compatible with most of the propulsion improvement devices currently offered, thereby allowing even further efficiency gain. Also important are hull and propeller maintenance, he stressed. Hull frictional resistance is governed by the wetted surface (main dimensions and trim) area and the surface roughness of the hull consisting of the steel, coatings, added roughness due to fouling and coating degradation. Bose explained that the initial roughness is taken as 120 μm, which is the approximate roughness value for a typical newbuilding although some ships are delivered with a very low surface roughness of around 75 μm. Typically, an average hull roughness (AHR) of ≈5 μ is very good, an AHR of 150 μ is standard and an AHR > 200μ is sub-standard, he explained. Historical records have shown that even with good maintenance practices, average hull roughness can increase by 10 to 25μm per year, depending on the hull coating system, even when fouling is not included. As a rule, every 25 μ (25/1,000 mm) of hull roughness increase corresponds to 0.7-1% of increased fuel consumption, due to the additional propulsion power requirement to move a larger volume of water.

The AHR is calculated by dividing the hull into 10 equal sections with10 measurements for each division - five each side of the vessel. This gives 50 readings on each side - 30 on the vertical sides and 20 on the flats. From the 100 measuring locations, the AHR is calculated and roughness distribution plotted. Efficiency losses Several companies have measured the efficiency losses between drydockings, due to bio-fouling and mechanical damage on the underwater hull. For example, Marintek measured the drop in propulsion efficiency as around 15%; Propulsion Dynamics (tankers) of 20% and Jotun (taking an average of over 60 months) of 18%. When selecting a coating, a checklist should be used to evaluate longevity, suitability, product features, efficacy, maintenance repainting and repairing, fuel saving, environmental concerns, costs and manufacturer’s guarantees. Bose also advised that the propeller should be polished every six months and a vessel’s hull blasted and painted every second drydocking- around once every 10 years. For propeller polishing, he advised the use of a service provider active in one of the main shipping centres, rather than an unknown concern based in a smaller port. Turning to vessel performance management, he described it as measuring, monitoring and managing. He explained that Great Eastern had selected a Marorka power management system, which gathers data related to ship operations, ie, trim, draft, main engine, auxiliary engines, steam plant, voyages, navigation, etc. The data is categorised the same for differing operating conditions, such as while berthed, manoeuvring, during a sea passage and at anchor/waiting, etc. TO

TANKEROperator  April 2015

TECHNOLOGY - BUNKERING

Low sulphur problems are emerging More problems are coming to light with low sulphur fuel oil, which if not addressed could lead to costly vessel breakdowns and even severe damage to the engine. IMCO, courtesy of the Britannia P&I Club, has warned of paraffin being formed when using low sulphur gasoil (MGO) in northern European waters during the winter. The reports state that MGO blend DMA 0.1%, which was analysed to be within the specifications for ISO 8217, has been forming large amounts of paraffin in the MGO tanks, which has caused problems. The cloud point for this MGO was 32 deg C, which is the temperature where paraffin starts to form, but the cloud point is not part of the ISO 8217 specification. Operators are advised to find out the cloud point, as well as the pour point prior to the bunkering operation. They should also think about whether it is necessary to stem DMX grade MGO, if they are trading in the Baltic or other areas where traditionally there are low sea temperatures. This would enable any operator to obtain the cloud point beforehand, since it is part of the DMX specification, the report explained.

B

Paraffin problems Skuld, in association with Chris Fisher of Brookes Bell, has also warned of bunkering ultra-low sulphur gas oils for use in ECAs, particularly noting the presence of a considerable quantity of paraffin in the product offered for supply and forming in the product post supply, following criticisms from its members. This may be partly due to the demand for MGO since 1st January, 2015. This has been such that it is now being sourced from a wider field and that quality standards are under pressure. The blending of biodiesel with conventional diesel fuel could also in part explain this problem. Agreeing with BIMCO, Skuld said that it 34

could also be a seasonal factor, due to low temperature conditions accelerating the formation of paraffin wax. This particular issue may cause excessive build-up of sludge in the engine system and even a possible loss of power. Gas oils, as well as alternative 0.1% sulphur content fuels, available in the market are ‘paraffinic’ and if mixed with regular heavy fuels, an unstable mixture may follow. Sludge build up As there will be a certain amount of mixing, following a switch over between fuel types, in the lines to the engines (unless completely separate lines are available), it is important for the engineers to carefully check against the build-up of sludge. An excessive amount could block fuel lines leading to a power loss. It may be necessary to ensure that gas oil is placed into a tank with heating coils. However, some vessels with designated MDO/MGO tanks do not have heating coils installed, the report noted. IBIA’s Peter Hall said at the Navigate/IPTA Product and Chemical Tanker Conference last month that that marine fuel supply was a changing scene. He explained that the HFO to MGO split has narrowed to about 60:40 and there were more distillates being presented for testing- around 15%. He said that the challenges were the new fuels with wider formula variations and the fuel switching problems. Since the new regulations came into force, sampling has become a “whole new ball game” to get the correct fuel. Suppliers tend to blend to the upper limit of the specification due to financial reasons. Another problem is what is described in the contract and what Port State Control says upon an inspection may be totally different

interpretations of the same fuel. Testing in a credited laboratory could give one answer, but the same test in another laboratory could give a different result, due to the chemistry involved giving a range of results in different circumstances. He said that often it was a case of the ISO Standard versus MARPOL, which can lead to ambiguity due to conflicting parameters. “This breeds uncertainty and it hasn’t been addressed properly,” Hall said. He pointed to the high costs associated with de-bunkering and the commercial issues that could arise from such an operation. Partnerships IBIA has what it calls a ‘twin track approach’ to work in partnership with stakeholders. One example is a ports charter. Thus far Singapore, Rotterdam, Antwerp and Gibraltar have joined, but Hall called for more ports to sign up. The association has written a questionnaire for the IMO correspondence group on fuel quality. Proposals were put to both MEPC 66 and 67 to the effect that the fuel should contain nothing that wasn’t fit for purpose and a paper will be submitted to MEPC 68. He argued that the Note of Protest should be used to look at why a stem went wrong and to get to the root cause of any problems that had occurred. Hall thought that Port State Control could undertake this task as a rogue delivery will cause a supplier and the port a bad reputation. Hall also warned that refineries would need five years to reach the specification for the 2020/2025 cap. He said that the fuel characteristics were “all over the place- a warning for 2020/2025.” He argued by saying that the industry was on a learning curve, which will take time. TO

TANKEROperator  April 2015

TECHNOLOGY - BUNKERING

Low sulphur solutions, fresh propulsion problems Distillate fuels, despite their premium pricing, have rapidly become the default choice for the majority of owners and operators now facing the 0.1% ECA sulphur cap*. istillates, such as marine gas oil (MGO) are arguably the most convenient low sulphur solution for existing ECA bound vessels. As, unlike abatement technologies or LNG power, they require no major up-front investment nor costly modification or retrofitting of the vessel. So what’s the problem? On paper there isn’t one, as just like less expensive residual fuels, distillates need to meet the owners’ predetermined specifications and the latest ISO 8217: 2012 standards. Unfortunately, issues have a habit of showing themselves in the engine room, rather than a meeting room, and what looked good on a spec sheet may in fact end up blocking fuel lines, damaging fuel pumps and injectors and even contribute to the loss of engine power (LOP). A quick glance at the US Coast Guard’s 2014 statistics for loss of propulsion incidents in California will illustrate a worrying trend. Of the 93 LOP incidents, 15 were directly related to fuel switch overs. We wait anxiously for the figures from the freshly regulated European ECAs. But, before you reach for that exhaust gas cleaner spec sheet, the problems, which can occur when using distillate fuels, can easily be avoided with a little help, according to Jonas Ostlund, product marketing manager marine chemicals, Wilhelmsen Ships Service (WSS). “If you are aware of the fuel’s basic properties and limitations, and are prepared to treat your distillates systematically in order to manage and maximise their performance, they pose few challenges.” Typically, issues with distillate fuels are distinct from those of their residual relations, and they revolve around lubricity and degradation. Both the makeup of the source crude oil,

D

April 2015



TANKEROperator

and the refining processes that oil undergoes, can have an impact on the lubricity of any finished distillate fuel. This is because the lubricity enhancing compounds that are naturally present in all diesel fuels are also affected by the refinery process. The hydro treating refining process reduces the sulphur and aromatic content of crude, but it also removes the polar components that aid lubrication. This is the reason the lubricity of distillate fuels is difficult to predict, as it is not solely related to the sulphur level. Nevertheless, the general trend is that there are lower levels of lubricity in unfinished low sulphur distillate fuels than intermediate or heavy fuel oil. Rapidly increasing the wear of fuel and injector pumps at best, and causing the potentially catastrophic loss of power at worst, the effects of poor lubricity in low sulphur diesel fuels was well documented during their adoption by the car industry in the early 90s. It was a disaster, and it is one we don’t want to recreate at sea. An accepted limitation of low sulphur distillates, minimum lubricity levels now feature in the latest ISO 8217: 2010 marine distillate fuel specifications. A requirement for marine distillate fuels with a sulphur level of less than 500 ppm (0.05%) the ISO 8217:2012 WSD limit is currently fixed at 520μm. Typically, finished, on-spec, low sulphur distillate fuels will dip within this limit with the help of lubricity-improving additives. But, from that point on it then comes down to how the fuel is managed, manipulated or maintained prior to its arrival alongside vessels for bunkering. Familiar questions come into play here regarding fuel quality, the consistent availability of on spec fuel, and of course cost. Ostlund believed this uncertainty regarding distillates is easily eliminated. “For many

customers working within the constraints of the 0.1% ECA sulphur cap this added complexity is totally unwanted and unnecessary, and instead they are choosing to fall back on additional fuel treatments.” WSS has focused on developing a condensed range of marine distillate-specific, fuel oil treatment products. Released towards the end of 2014 in anticipation of the regulatory changes concerning emissions, WSS’ range has proved to be popular and Ostlund said the reason is simple. “Using tried and tested, proven products such as DieselPower Lubricity from WSS as a matter of course, will significantly improve the lubricity of low sulphur distillate fuel, reducing component wear.” Typically requiring a dosage of 15 litres per 100 tonnes, its effectiveness is documented in independent HFRR, SOBOCLE and additional pump rig tests**. Limited shelf life Low sulphur diesels tend to be more stable than high sulphur fuels as hydro treating typically destroys the precursors to insoluble organic particulates. However, along with lubricating compounds, hydro treating also eliminates naturally occurring antioxidants. This is why refineries treat distillate fuels with stabilisers to prevent deterioration and the formation of peroxides, the forerunners to soluble gums. Unfortunately, such additives actually have a limited shelf life and six months down the line the fuel, now being pumped on board and into storage tanks, is unprotected from deterioration. A mixture of different hydrocarbons that can deteriorate over time, temperature, the availability of an oxygen supply, and access to sunlight also play an important role in accelerating the fuel’s decline. 35

TECHNOLOGY - BUNKERING

Swedish Class 1 Swiss low S Spanish low S Thai low S Euro low S ref German low S

0.8 0.7

Mean WSD, mm

0.6 0.5 0.4 0.3 0.2 0.1 0 0

50 100 150 DieselPower Lubricity treat rate, mg/l

200

HFRR 60°C test results In-house and independent data obtained using the CEC-F-06-A-96 procedure demonstrates the effectiveness of DieselPower Lubricity at reducing wear scar diameters. Experiencing a change in colour along with gum and sediment formation, a distillate fuel that is undergoing degradation through reactions with oxygen will, if unchecked, tend to go on to form deposits, especially on the fuel injectors. The reason the deposits end up on the fuel injectors is that when a degrading fuel leaves the injector to be atomised it tends to coke on the nozzle. The coaking starts to build and the spray pattern from the injection nozzle is affected reducing fuel economy and engine durability and actually increasing emissions. Working in tandem with lubricity issues to make an already awkward situation, even more difficult, distillate fuel deterioration can also be addressed with additives. Treatments such as WSS’ DieselPower Enhancer are multifunctional, maintaining both fuel stability and improving lubricity. With a recommended dosage of 3 litres per 100 tonnes, usage of such fill and forget, do it all products ensure that ongoing concerns regarding the differing lubricity and stability of low sulphur distillate fuels should disappear. In addition to distillate fuels’ unique lubricity and degradation issues, unfortunately they are also prone to suffering from a problem shared by all diesel fuels, microbiological contamination. Thriving in hot and humid conditions and if non-dissolved water is present in the fuel, just 100 ppm (0.0001%) of water is all that’s required for bacteria to grow in a fuel system. Microbes in small quantities pose few problems, however if their numbers increase 36

WSS’ Jonas Ostlund.

TANKEROperator  April 2015

TECHNOLOGY - BUNKERING (>106 cfu/ml; CFU –colony forming units) then they start to form biofilms in the systems, leading to sludge formation. Once established, microbial growth will start to block filters, corrode tanks and even wear injectors. Simple tasks such as regularly draining water from the bottom of the tank, along with frequent, and at the very least annual, fuel testing, can help reduce the impact of microbes. However, the routine use of additional fuel treatments may be the only consistent solution to persistent microbial contamination.

While Biocides have been around for many years, products such as WSS’ DieselPower MAR 71 are specifically designed to work within distillates’ distinct parameters. Eliminating the potentially corrosive microbes often found within diesel fuel systems, when pro-actively used as preventative measure, the typical dosage is 20 litres per 100 tonnes. Experiencing an obvious surge in interest, linked to the upswing in ECA-driven MGO use, fuel treatments have historically been greeted with a degree of scepticism, frequently viewed as ‘snake oil’. However, when it comes to lubricity improving products and stabilising agents, such as DieselPower Lubricity and DieselPower Enhancer, the results speak for themselves, and so seemingly do the owners. A recent development, it seems that the fine detail contained in an increasing number of charterparty agreements are being amended to stipulate the systematic use of such products, reflecting both their effectiveness and importance. That is of course an easy decision for owners and operators to make, when they are not the ones footing the fuel bill. But, the costs of maintaining a structured fuel treatment regime are insignificant when measured against the sizeable financial penalties, which could be incurred as a result of engine damage, reduced fuel economy or even a LOP incident. An established technology and the direct result of the car industry’s experiences with low sulphur diesel fuels, fuel treatment, along with ECAs, and the use of distillates, is here to stay. TO

*This article was taken from a paper written by Jonas Ostlund, product marketing manager marine chemicals, Wilhelmsen Ships Service (WSS). **Pump rig testing is the main alternative to field testing for the evaluation of lubricity additives. Independent data generated by APL, Germany, using a Bosch VE rotary injection fuel pump, operated for 1,000 hours according to the Bosch recommended cycle and rated by Robert Bosch GmbH, clearly demonstrates the lubricity improving performance of DieselPower Lubricity. Using a severe Swiss low sulphur fuel, which had been shown to cause significant wear to pumps of this kind (Bosch rating 6-7), dosing 100 mg/l DieselPower Lubricity resulted in a Bosch rating of 3, ‘acceptable wear’.

Tanker a Ve etting and Inspection training course 12-13 May 2015 in London £840+V VAT During this two day course you will be encouraged to explore real life scenarios and participate in technical exercises to enhance your learning experience.

Go to G t www.lr l .org/training /t i i or contact t t mts@lr t @l .org Working together for a safer world Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and afffiliates. Copyright © Lloyd’s Register Group Limited 2015. A member of the Lloyd’s Register group.

April 2015



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TECHNOLOGY - BUNKERING

AWT launches dual speed optimisation for ECAs A new approach is required to find the most cost effective route, given the new Emission Control Area (ECA) requirements recently implemented. n an effort to provide a safe, efficient and cost-effective optimal route for a voyage, Applied Weather Technology (AWT), part of the StormGeo Group, has launched BVS Dual Speed Optimisation tool, which takes ECA zones into account. AWT’s vice president products and systems, Richard Brown, explained that the Sulphur Emission Control Area (SECA) of the Baltic and North Seas, as well as the North American ECA Zones were defined in Annex VI of MARPOL 1997. The regulations specified a gradual decrease in the amount of sulphur present in the fuel being consumed. Prior to 1st July, 2010, heavy fuel oil (HFO) contained up to 4.5% sulphur. The initial Annex VI of MARPOL 1997 mandated sulphur content reductions to 1% in the SECA and ECA areas. The second phase of the Annex VI of MARPOL 1997 came into force on 1st January, 2015 to further reduce the sulphur limit to 0.1% in the SECA and ECA areas. With the second phase of the new ECA regulations now in place, it is no longer enough to only find the best route and speed to sail to minimise voyage costs. With the cost differential between IFO and ultra low sulphur fuels (ULSFO) on the order of $300 per tonne, it complicates the picture and raises several questions. For example 1) Where should you enter the ECA areas and is sailing the least distance in the ECA areas always best? 2) What speed should you be using in the ECA areas and is the minimum speed always best? There is no one right answer to these questions and to find the least cost route you need to take many variables into account, such as those listed below.  Distances steamed, both inside and outside the ECA areas.  Weather and currents.  Fuel prices for each fuel type.  Dynamic vessel specific fuel consumption

I

38

In this image, BVS 7 Dual Speed Optimisation saved an additional $3,000 to $4,000.

curves.  Daily hire costs.  Speed setting, both inside and out of ECA areas. In addition, any wind, wave, navigational, safety, environmental or other constraints should also be taken into account. AWT’s new BVS 7 Dual Speed Optimisation software addresses these variables. They help the Master find the safest and best combination of sailing track and speeds to be most efficient. When the arrival time has been fixed in BVS and the high and low fuel prices per tonne have been entered into the system, BVS automatically calculates a least-cost dual speed optimisation if the vessel encounters an ECA area during the voyage. If the fuel prices are missing or if the vessel doesn’t enter an ECA area, BVS will provide the best route and optimum single speed to make the arrival time. For those voyages where the vessel does not have a specified time of arrival and the high and low fuel prices per tonne, plus the daily

hire rate have been entered into the system, BVS will automatically do a least-cost dual speed optimisation if the vessel encounters an ECA area during the voyage. If the fuel prices or the daily hire rate are missing, or the route doesn’t encounter an ECA area, BVS will calculate the best ‘least time’ optimisation. AWT has a large database containing several million observations of speed, weather conditions, consumption rates, and more from ships of all types and sizes. An experienced team of analysts, whose backgrounds are in oceanography and maritime engineering, have developed a model that is able to predict speed loss due to weather and the associated consumption rates. Using the reported information from the vessel along with AWT’s analysis of the current, wind, sea heights, swell height and period and relative directions, AWT can accurately calculate the calm sea speed for each noon report. As this data accumulates, regression analysis yields a specific consumption (vs calm sea speed) curve for each vessel from which the

TANKEROperator  April 2015

TECHNOLOGY - BUNKERING data is collected. These curves are continuously updated, with the latest reports weighted more heavily, so the curves can keep up with any variations in the vessels performance over time. To ensure that the Master has the best consumption estimates, these curves are automatically uploaded to the vessel during the BVS data download process. For those vessels where no data has been collected, AWT maintains consumption curves based on sister ships and when this data is not available the system will use AWT ship type curves. Conclusion The introduction of ECA zones has presented new challenges for optimising a voyage, yet AWT has overcome these challenges. The recently launched BVS 7 software provides an excellent solution by recommending both a route and speeds in and out of the ECA zones to safely minimise fuel costs. By putting this tool into the Master's hands, quick and informed decisions can be made with voyage safety and total voyage costs in mind, Brown claimed.

In another move, AWT is to collaborate with Veson Nautical to simplify a Master’s reporting with communications to shore-based managers. This new offering delivers notable timesavings to vessel Masters, the company claimed enabling them to send a single at-sea report to both the onshore operator and AWT, via Veslink, rather than sending multiple duplicate reports comprised of the same data. In one click, operators using both AWT and Veslink can deliver critical data to both the AWT weather routing service and voyage

EUROPE’S LAR RGEST G DR RY DOCK

 ISO 9001

management through Veslink and IMOS. This leads to timely data with increased accuracy, and streamlines the work flow on board the vessel, the companies said. “I can truly say that our collaboration with Veson is based on the demands of many of our important clients who would like to see closer integration of AWT and Veson services,” said Haydn Jones, AWT CEO. “The immediate goal is for AWT’s use of Veslink formatted ship reports that will help to reduce the load on ship’s Masters for preparing multiple similar daily reports.” TO


ISO 14001


OHSAS 18001

A full list of our repair facilities can be viewed on our website.

Harland and Wolf o ff Heavy Industrries Ltd Queen’s Island Queen Island, Belfast BT3 9DU, North hern Ireland

April 2015



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T: +44 (0) 2890 4584 456 M: +44 (0) 7710 036 746 7 E: billymc@harland-w billymc@harland w wolfff fff.com com www.harland-wolfff.c f com

39

TECHNOLOGY - TANK SERVICING

Emerson introduces heavy fuel oil viscosity and density meter Designed for the marine, as well as the power industry, Emerson Process Management has introduced the patented Micro Motion 7829 Viscomaster direct insertion viscosity and density meter (HFVM). Making use of the same rugged and reliable tuning fork design as its predecessors, the HFVM incorporates a new robust low friction diamond-like carbon (DLC) coating. This makes it ideal for tackling the most demanding of process applications, such as marine heavy fuel oil (HFO) combustion control, marine gas oil (MGO) viscosity control and land-based fired heaters, the company claimed. The head-mounted transmitter is hazardous area approved and has the flexibility to connect to control systems via a wide range of digital and analogue protocols. System integration and start up commissioning costs are significantly reduced, due to the support from 4-20mA, HART, WirelessHART and RS485 Modbus communications,

Emerson said. The HFVM accepts and processes external signals from other field instrumentation, such as temperature and mass/volumetric flow devices, enabling the meter to calculate and output enhanced process measurements while minimising installation and cabling costs. “We designed the HFVM Viscomaster to help solve problems that our customers face on a daily basis, such as maximising engine power output irrespective of fuel quality variations, optimising HFO/MGO cut-over times and reducing fiscal exposure through improved NOx/SOx management,” said Andrew Sgro, Micro Motion density and viscosity product line manager. Diagnostic capability The HFVM also incorporates a new diagnostic capability called ‘known density verification’ (KDV) that checks the meter for measurement alarm conditions, sensor integrity and the presence of coating, erosion or corrosion. Marine approvals for the meter include class societies - LR, DNV GL and BV. TO Emerson’s HFVM Viscomaster has several class society approvals.

Chemical carrier newbuildings fitted with advanced tank coatings Navig8, is applying the patented Interline 9001 to the tanks of a series of 18 chemical tankers currently under construction at Hyundai Mipo. The cargo tank coating from AkzoNobel’s International marine coating product range forms part of Navig8’s ambition to be the leading supplier of sophisticated large chemical tanker tonnage with maximum earning potential and minimum cost base. Navig8 selected Interline 9001 to deliver significant operational benefits for the 37,000 dwt vessels, providing increased vessel capacity and maximum operational flexibility required to meet increased market demand for large volume contract of affreightment. In addition to the coatings at Hyundai Mipo Dockyard, Navig8 has selected Interline 9001 for a further four 49,000 dwt MRs under construction at STX shipyard. 40

Interline 9001 is a bimodal epoxy coating for the cargo tanks of chemical tankers. With enhanced cargo resistance, near zero absorption for many cargoes and fewer cycling restrictions, the coating simplifies the carriage of a wide range of cargoes, optimising vessel earnings potential, International said. The coating can be used with all of the cargoes that standard epoxy phenolic technology can, plus a further 25% of the large volume cargoes that it cannot, and has over 60% fewer cycling restrictions. Its low cargo absorption profile reduces the risk of contamination between cargoes and combined with its smooth, glossy surface, can cut cleaning time and materials by up to 70%, compared to standard epoxy phenolics or zinc silicates. With reduced cleaning requirements comes a corresponding reduction in fuel and CO2 emissions. In addition, a low volatile organic content (VOC) and 80% volume solids

helps to enhance operator environmental profile. Andy Hopkinson, International’s business development manager for the marine coatings business said: “We are delighted to be working so closely with Navig8 on this significant project which signals strongly the market need to adopt new technology and react to the ever tightening cleaning requirements and need for maximum earnings with minimum cost. Contract activity around Interline 9001 has risen significantly and Navig8’s commitment and confidence in the product will lead the way for many owners to reach the same conclusion. “The benefits of the bimodal epoxy technology certainly suits Navig8’s operational model where capacity optimisation through reduced cleaning time and carriage flexibility combined with maximum protection for customer’s sophisticated cargoes is high on the agenda,” he said. TO

TANKEROperator  April 2015

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