shipping trade

MATA KULIAH :KLAIM

DAN ASURANSI TRANSPORTASI LAUT

Dosen Pengampu:

RUMAJI, M.Sc.

Sekolah Tinggi Ilmu Administrasi

dan Manajemen Kepelabuhan

(STIAMAK) - Barunawati

Surabaya – September 2013

Copyright 2013- All Rights Reserved

The Shipping Trade

First came the viking cargo ships, the knarr. They were able to sail mostly downwind but required the use of oars. Staying mostly within sight of land, they knew a little about prevailing winds and navigated with the aid of a sundial and a sun stone.

In the early 19th century Clipper ships sailed all over the world. Not much was required to sail the vessel except a strong back, a loud voice, and a basic knowledge of navigation.

Navigational equipment probably included a compass, a sextant and a telescope. Life expectancy for the vessel was no more than a couple of years.

•Gyro Compass (maybe)•Gyro Steering Stand (Doubtful)•Radar (2) (used only approaching land)•Loran A (probable)•RDF (required)•Fathometer (required)•Radio Equipment (+ Operator) Telegraphy

A cargo ship in the 1950’s and 1960’s was more fully equipped:

The Norm in 2005 - Bridge

CompassesGyro (2) (digital)Electronic compass

(probable)Magnetic compass

SondeDigital Steering StandRadar (2)

Digital with built in ARPA

Loran C (fully automatic)GPS (Multiple)Fathometer

Speed LogECDISWeather FaxLoggersComputer weatherE-mailDigital CommunicationsAISSSASWeb CamsLookSea augmented realityGMDSS

The Norm in 2005 – Engine Room• Steam Plants• Diesel• Diesel Electric• Gas Turbines• Generators• Sewage Treatment Facilities• Air Conditioning Systems• Hydraulics• Evaporators

Controlled by a modern computerized control room

In the early part of the 21st century, the face of shipping is quite different. Shipping has become a heavily regulated industry. Crews have to be increasingly well educated and trained and conform to regulations and procedures designed to protect cargo, crew, investors and environment. No longer as subject to the vagaries of wind and weather, modern cargo vessels are increasingly becoming the transportation mode of choice.

Changing Dynamics in the supply chain of ship board officers and crew have also occurred

• Traditionally, the world’s economic powers built the ships and trained their citizens to operate them

• Today, the citizenry of the developed countries are less likely to seek careers at sea

• Today’s ships are much more likely to have been built in a foreign yard and have a multi-national crew

• Significant shortages of qualified ship’s officers and crews are expected over the next decade in all segments of the shipping industry

• English is the official language of shipping yet for the vast majority of ship crews, English is a foreign language.

The MEGA BORG released 5.1 million gallons of oil as the result of a lightering accident and subsequent fire. The incident occurred 60 nautical miles south-southeast of Galveston, Texas on June 8, 1990.

Human error remains the #1 cause of shipping accidents

The New Era

Natural gas is the economic/environmental fuel of choice

96% of natural gas reserves are located outside North America

25% of world natural gas consumption occurs in the U.S.

We are entering a new era in LNG shipping with the imminent arrival of the first very large tankers with more that 200,000 cubic metres of cargo capacity. These tankers have new forms of propulsion (slow diesel or duel-fuel) and new technology such as reliquefaction plants on board.

LNG ships are more technically advanced and carry a cargo unlike any other

• Cargo is carried at extremely cold temperature• LNG can only be carried in specially designed ships• Loading and discharge process is different from

other tankers• Cargo immediately starts re-gasification process

(boil-off)• Highly reduced volume 1/600th

• Most ships are steam powered• Re-liquification & re-gasification plants on board

LNG ships and the industry in general have enjoyed an

unprecedented safety record for nearly 40 years. Why?

• Excellence and continued training of crew• Experienced officers with long tenure in the LNG

industry• Superior quality of ships and equipment• Long term contracts with point to point delivery• Controlled and sustainable growth (supply

continually meeting demand)• Quality control instituted by the owner/operators

The Demand

Time-line Number of ships

In service as of September 2004 174 ships (including 28 ships delivered since January 2002)

In service as of May 2005 182 ships

Expected new contracts for 2005 50-65 (21 are firm orders)

Expected on order at end of 2005 143-158

Expected total of LNG fleet by end of 2009

339-354

Traditional and new entrant operators, and delivery years of new LNG ships (as of September, 2004)Operators 2004 2005 2006 2007 2008 Total

Traditional Operators

Misc 1 2 2 5 2 12

Gas de France 1 1 1 0 0 3

Golar 1 0 2 1 0 4

Exmar 1 1 1 0 0 3

Nigeria LNG 2 2 1 0 0 5

MOL 0 3 5 0 0 8

Pronav 0 0 0 1 3 4

NYK 0 1 2 5 0 8

Sonatrach 1 0 0 1 0 2

Bergessen 0 2 1 2 2 7

Lief Hoegh 0 1 1 0 0 2

Kawasaki 0 1 2 2 0 5

Sub-Total 7 14 18 17 7 63

New Entrant Operators

Teekay 1 0 1 2 0 4

Petronet 1 0 0 0 0 1

Angelokousis (Maran) 0 1 2 1 0 4

Moller/Maersk 0 0 1 0 0 1

BG Group 0 0 3 3 1 7

Knutsen 0 0 1 0 0 1

TMT 0 0 1 0 0 1

Tsakos 0 0 0 1 0 1

Dynacom 0 0 0 2 1 3

Cosco 0 0 0 1 1 2

Sovcomflot 0 0 0 1 0 1

OSG 0 0 0 2 2 4

Iino 0 0 0 0 1 1

Sub-Total 2 1 9 13 6 31

Total 9 15 27 30 13 94

LNG Order Book Deliveries

Source: Clarksons, September 2005

Annual Capacity Growth - Based on Cubic Meter

LNG Fleet Capacity Growth 86

Source : Clarksons – September 2005

LNG Fleet LNG Fleet Forecast

Fleet will double in size by Y 2010 and grow another 35% by Y 2015

Evolution of LNG Carrier Size

LNG Transport System Technology

Energy Bridge Regas Vessel

Offshore LNG Terminals/Concepts

Offshore LNG Terminals/Concepts

Offshore LNG Terminals/Concepts

RESULT = SHORTAGES

Shortage of adequately trained officers and crew to meet

increased manning requirements

Composition of seafarers on board a LNG ship

Navigation Engine

Master Chief Engineer

Chief Officer (Nav.) 1st Assistant Engineer

Chief Officer (Cargo) 2nd Engineer

2nd Officer 4th Engineer

3rd Officer Junior Engineer

Total 5 Total 5

Officers

Composition of seafarers on board a LNG ship

Navigation Department

Engine Department Purser’s Office

Boatswain Oiler No. 1 Chief Cook

Boatswain Oiler Second Cook

Able Seaman Oiler Messman

Able Seaman Oiler -

Able Seaman Oiler -

Able Seaman Fitter -

Able Seaman - -

Ordinary Seaman - -

Total 8 Total 6 Total 3

Ratings

Composition of seafarers on board a LNG ship

Senior Officers (Management Level) 6

Junior Officers (Operational Level) 4

Total number of officers 10

(Note) 1st Assistant Engineer is a management level engineer in charge of cargo

Ratings 17

Total composition 27

Summary

Estimated demand for officers for LNG ships on order

Year Deliveries Newly Required Seafarers

Total Officers*

2004(4th Qtr) 2 delivered 156 52 (32)

2005 20 1,560 520 (312)

2006 27 2,106 702 (422)

2007 30 2,340 780 (468)

2008-2010 86-101 6,708-7,878 2,236-2,626

(1,342-1,576)

Total 165-180 12,870-14,040 4,290-4,580

(2,576-2,810)

* Figures in parentheses show the number of Senior Officers (Management Level)

Shortage of qualified engineers with steam

endorsement

Estimated demand for turbine engineers

Year Deliveries Newly required turbine engineers

Officers Senior Officers

2004(4th Qtr) 2 (delivered) 26 16

2005 20 260 156

2006 27 351 211

2007 30 390 234

2008-2010 86-101 1,118-1,313 671-788

Total 165-180 2,145-2,290 1,287-1,374

Shortage of time to adequately train senior officers from a different segment of the shipping industry to meet the qualifications for commanding LNG ships

Suggested training scheme for personnel on LNG tankers

Training

General qualification for

shipmaster, deck & engine departments

Appropriate shore-based fire-fighting

course

Approved tanker familiarization

course

At least 3 months approved seagoing service on tankers

Tanker familiarization

certificate

Experience appropriate to duties

on LNG tankers

Approved specialized LNG training program

Certificate awarded Dangerous Cargo

Endorsement (Gas)

Service in positions with immediate responsibility for loading, discharging and care in transit or handling LNG cargoes

Shortage of training billets aboard existing LNG ships to be able to meet the loading and discharge qualification requirements

Shortage of LNG simulators and qualified instructors

Consequences?

• LNG ships sit idle, cargo doesn’t move – highly unlikely

• Poaching of qualified senior LNG officers from one company to another occurs

• LNG ships sail with minimally trained (qualified) crews

• Serious accidents occur.

Solutions:• First, industry must recognize the looming problem• International training standards for the LNG industry

must be established by IMO and national entities• Training programs for converting senior officers from

one type of ship to LNG ships must be developed• LNG companies must work together in order to

provide training billets aboard LNG ships• Underwriters and financiers should insist on some

level of crew training and certification• World’s maritime academies must start process of

providing basic LNG training to their undergraduate students

• SIGTTO and IAMU are developing model courses

The Need

• The Sale Contract

• Transport contract (s)

• Cargo Insurance contract

• Payment conditions

The Contracts in International Trade

Seller & Buyer must agree on...

how goods should be delivered;how basic costs should be divided;who should clear the goods for Import/Exportwho should pay for loading/unloading;how will risk of loss be divided; andwho has got to take out insurance, and for

what.