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May 2014 � TANKEROperator 01
ContentsMarkets2014 - the MR year?
FinanceIPOs - timing is everything
News Focus� Ensuring ECA compliance � IoM welcomes ‘green’ tankers
Greece Report� Fleet expands� Posidonia - biggest yet?
Norway Report� Opening of the Arctic� Energy losses identified� BASS upgrades system� Knock-for-knock cases increase
Anti-Piracy� Gulf of Guinea worry
Front coverThousands of vessels are now fitted with various Becker Marine products, aimed at greater efficiency and fuel savings.In the tanker sector, perhaps the most well known is the patented Mewis Duct, which once fitted, can produce good fuel savings. Manytanker owners have fitted ducts to their propulsion systems, while others are tank testing the equipment to gauge the results. Tankers are incredible difficult to modify externally to attain greater efficiency, due to their shape, so any piece of equipment, for examplea duct, will quickly produce a return on investment. fuel saver
C_Anz_Tanker_Operator_Title_210x247.indd 1 09.05.2014 10:00:37
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Satcoms� Airbus joins the shipping sector� Terminal connections keep up
Technology34 Technology Focus � PureDry becoming standard
ECDIS� ENCs at the right time� ECDIS procedures laid down� PAYS introduced
Tanker Efficiency� Danish owners outline progress� Carbon credits for efficiency
Tank Servicing� Small becomes large
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TANKEROperator � May 201402
COMMENT
To pay up or not to pay up- that is the question
TANKEROperatorVol 13 No 6Tanker Operator Magazine Ltd
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Perhaps the most significantannouncement to come out ofMEPC 66 was an agreement toreview the timing of theimplementation of the globalsulphur limits. In essence, a correspondence group is being
set up to decide whether the adoption of the
0.5% global sulphur cap should be as early
as 2020, or put back to 2025.
However, whatever the outcome of the
IMO’s pronouncements, the EU has already
decided on a global cap by 2020. This means
that in 2020, a 0.1% sulphur cap will be
implemented in the European ECA region,
while a 0.5% cap will be introduced in the
remaining EU waters.
Another study is being set up to decide
whether there will be enough fuel available
to satisfy the needs after the global cap
comes into force. The study group is due to
report back to the IMO by October this year
when, if accepted, the study will go ahead
and report its findings by 2017.
The industry appears to be divided on the
question of low sulphur fuel availability,
according to London brokers EA Gibson. A
joint UK/Netherlands paper on this subject
has said that 2020 refining capacity will
exceed the demand for low sulphur fuels,
which will reduce the price.
However, another industry expert recently
said that the refiners were being constrained
by the lack of upgrading in Europe, minimal
upgrading in the US and possible delays in
the Middle East capacity coming on stream.
This may lead to a significant price
differential within different bunkering
regions resulting in more product being
shipped to areas of low availability and more
low sulphur fuel requirement. This could put
extra pressure on supply and thus raise prices
still further.
According to Gibson, the average price of
HSFO in Rotterdam last year was $598 per
tonne, but MGO averaged some 30% higher,
at $900 per tonne. Some industry players,
most notably the Danes, said that the
differential could go as high as 50%.in the
future.
Another problem highlighted by Moore
Stephens recently was the ability to find
enough money to remain compliant with the
forthcoming environmental regulations, apart
from the cost of bunkers.
Moore Stephens shipping partner Michael
Simms said, “The Ballast Water Management
(BWM) Convention, for example, has not yet
entered into force, although some countries,
including the US, have already implemented
BWM regulations independently of the IMO.
“But it is known that BWM systems can
cost between $500,000 and $5 mill per
vessel, depending on the system, as well as
on the size and design of the ship. That cost
may increase as a result of demand
requirements and shipyard capacity. There
are also operational costs to consider of
between $10,000 and $50,000 per annum per
vessel,” he said.
Apart from the ECAs, where the 0.1% SOx
emissions will come in on 1st January, there
are more complex calculations for 2016,
when IMO NOx limits based on the vessel’s
age and engine’s rated speed enter into force.
UnclearHowever, Simms acknowledged that the true
cost of regulatory compliance is still unclear.
He said, “Think of a number. Any number
will do, so long as it is very big. Then double
it. The answer is likely to be as accurate as
any supposedly informed estimates currently
circulating in the shipping sector about the
likely size of the industry’s bill for achieving
compliance with incipient environmentally-
inspired regulations governing the operation
of ships. Individual owners and operators
may plot their own path through the
regulations. One thing is certain, however.
Shipping is going to have to find a great deal
of money over the next few years simply to
stay within the rules.”
The mention of shipowners plotting their
own path to stay within the rules brings me
to the point made by several people during
meetings with leading players in Copenhagen
recently- the most vocal of which was the
Danish Shipowners’ Association.
They thought that many shipowners and
operators will simply ignore the low sulphur
caps and burn HSFO in ECAs regardless,
knowing that they have only a one in 1,000
chance of being detected, due to lack of
policing.
Massive savings It was calculated that a bulker, or tanker,
sailing into or out of an ECA to other areas of
the world, except to/from the US, could save
around $150,000-$175,000 by not buying
LSFO. By contrast, the maximum fines for
ignoring the rules and burning HSFO might
be as little as $20,000.
Then there is the case of short sea
shipping, which will have to pass on the
extra costs to their customers and maybe
drive cargo back onto the roads, as shipping
becomes uncompetitive in the Baltic and
North Sea ECA areas.
The message to the authorities is clear.
There are those who will pay up and those
who will not. The whole process needs
enforcing, but just how you do that with a
vessel transiting an ECA is unclear to say
the least. TO
INDUSTRY - MARKETS
TANKEROperator � May 201404
Will 2014 be the yearof the MRs?
In this market round up, we look at current activities and forecasts through the eyes of both BIMCO and McQuilling Services.
Taking BIMCO first, the
organisation’s report said that the
spike in VLCC earnings that began
at the end of 2013 continued into
2014, hitting the highest levels since 2010.
Suezmaxes and Aframaxes also enjoyed the
ride. The Winter strength in the crude oil
market was a result of a rise in oil demand
from the fast growing economies of Asia.
However, the ride was very turbulent with
fluctuations meaning that earnings dropped
from record highs to lows, only to climb to the
same levels again shortly afterwards. This is a
common occurence for VLCC rates, especially
around the Chinese New Year. VLCC rates
now appear more stable, albeit steadily
declining since mid-February.
The first quarter of this year was
disappointing for product tankers, with a flat
rate environment prevailing. Despite holding
on to the gains achieved in 4Q13, all product
tanker segments - from Handysize to LR2 -
have had to settle for $10,000-$17,000 per day
today (early April). This is slightly higher than
expected and was a result of the steadily
improving market.
Particularly relevant for the product tanker
market was that vehicle gasoline consumption
experienced the largest increase since 2004, as
highway travel surprisingly grew during the
second half of last year. Consumption grew by
1.1% to reach 8.8 mill barrels per day.
Record lowUnfortunately, this did not help the product
tanker market, as gasoline imports in 4Q13
and 1Q14 were at a record low.
While BIMCO forecast a four-year high for
delivery of newbuilding product tankers, very
few ships are being sent to the breakers to
counter the influx. There have been just seven
ships in total, six of which being below 40,000
dwt and two of those also being single hull.
Owners are displaying a strong belief that a
firm product tanker market is just around the
corner, BIMCO said.
Looking at crude oil tanker capacity, the
fleet has only increased by 0.2% since 1st
January, despite delivery of six new VLCCs,
as demolition took its toll. Only two
Suezmaxes and no Aframaxes entered the
fleet, signalling that the extremely poor freight
markets of recent years have had an affect on
the appetite for placing new orders.
For the remainder of 2014, 25 VLCCs, 19
Suezmaxes and 14 Aframaxes are scheduled
for delivery. BIMCO expects an average of
one year postponement/delay of 25% of the
scheduled orderbook, especially to ease the
VLCC pressure somewhat.
Last year, Aframaxes saw a 12-year low
delivery level at just 18 new ships. This
caused the fleet size to shrink for only the
second time since 1985.
Whichever way you look at it, 2014 will be
the year of the MRs, BIMCO said. Last year,
74 new MRs were delivered – year-to-date
deliveries had already reached 19 by mid-
March. In the size range of 40,000-60,000
dwt, 270 product tankers are on order, of
which 93 are scheduled for delivery in 2014.
However, BIMCO expected actual deliveries
to fall short of scheduled ones. As regards the
total product tanker orderbook, it had dropped
down to 406 units by the end of March, from
420 units two months before.
In January and February, new orders for 12
VLCCs were signed, all for 2016 delivery.
Last year, 49 were ordered of which 29 were
placed in December. Another example of more
confidence today is the re-sale of seven VLCC
orders, placed in South Korea in December
2013, all due for delivery in 2016 for a price
of $93 mill each. The resale price of $100 mill
confirmed both the increased optimism in
VLCC tanker market, as well as owners
expectation for the future.
OutlookThe tension around the Russian annexation of
Crimea has not affected the oil market thus
far, as Ukraine is not a transit country for
Russian oil sold to the West. According to
EIA, OECD Europe received as much as 36%
of its net crude imports from Russia, which in
turn relied on Europe for 71% of its crude
exports in 2013. Should trading with Russia be
affected, oil product imports into Europe is the
likely solution, with Russian crude export
instead going East.
As the energy intensity of global economic
growth is slowing down, changes in economic
activity will translate differently into oil
demand growth than during the past decades.
1,400
1,300
1,200
2013-2014anker IndexBaltic TTa
Crude 2013
MFeb.Jan.
1,100
1,000
400
900
800
700
Ind
ex v
alu
e
600
500
Jul.Jun. Sep.Aug.MayApr.Mar.
PrCrude 2014 Products 2013
Dec.Nov.Oct.
roducts 2014
Source - BIMCO, Baltic Exchange, CRSL.
INDUSTRY - MARKETS
May 2014 � TANKEROperator
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However, a significant economic step forward (+3.7%) is expected for
2014, which is currently estimated to result in a 1.5% higher demand
for oil (IEA forecast).
For April/May, BIMCO forecast earnings for the all the crude oil
tanker segments to stay above $10,000 per day. VLCCs may go as
high as $25,000 per day, while Suezmaxes could reach $22,000 per
day with the Aframaxes expected to peak around $20,000 per day.
In the product tanker segment, BIMCO expected earnings on LR1
benchmark routes from AG to Japan to hover around $10,000-15,000
per day, with LR2s inching a bit higher at $12,000-17,000 per day.
Handysize rates are set to outperform MRs at a level of $12,000-
18,000 per day with MR average rates expected to remain around
$8,000-13,000 per day.
Improved earningsAlso looking at the first quarter of this year, McQuilling said that in
early 2014, earnings in the large crude tanker segment reached levels
that hadn’t been obtained in three years and in the smaller dirty
segment, in five or more years.
But, with all things in life, “what goes up must come down,” a
famous quote by physicist and mathematician Sir Isaac Newton, that
quickly became the mantra for 1Q14, McQuilling Services said in a
recent industry note.
The prevailing factor behind the downturn in the crude tanker
market was an overall decline in activity. Ultimately, this led to an
increased oversupply situation, specifically in the VLCC segment.
In January, there was a record high of 212 global spot VLCC
fixtures reported, of which 46% were destined to China and Singapore.
That number was further reduced to 167 fixtures in February and 144
fixtures in March, a 32% decline over three months in spot activity
without a corresponding increase in period chartering, McQuilling
said.
Spot rates out of the Arabian Gulf fell in tandem with this decline.
From an average of WS55 in January, rates fell to an average of WS43
in March on the AG/Japan benchmark trade. Meanwhile, rates from
the AG to the US Gulf, lost an average of 6 WS points from January.
However, VLCCs found some support from the growing West
Africa/China trade, due to a significant amount of tonne/mile demand
provided by this route.
In 1Q14, there was an increase in fixture activity on this route by
about 5% when compared to 1Q13. The downside was the number of
owners looking to cash in on the earnings, effectively adding
additional supply to the region. As a result, rates also fell throughout
the first quarter from an average of WS58 in January to WS45 in
anCrude TTa owthnker Supply Gr
Mill
ion
DW
T
40
30
20
10
0
-10
anCrude TTa owthnker Supply Gr
ow
th r
ate
p.a
.G
r
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-2%
2013A2012A2011A-20
o be delivered p.a.T
2017E2016E2015E2014F
Demolition Growth rate (RH axis)
-4%
Source - BIMCO, CRSL.
TANKEROperator � May 201406
INDUSTRY - MARKETS
March, a 22% decline. Fortunately for this
overtonnaged sector, net fleet growth was
minimal.
McQuilling’s proprietary data showed that
through March, there was a net fleet growth of
just two VLCCs.
Suezmaxes have also been subject to a
decline in global fixture activity. For example,
activity dropped from a healthy 226 fixtures in
January to 200 in March. The bulk of the lack
of volume stemmed from the weakening
WAF/USAC trade. In the past, Suezmaxes
dominated this route, but since the increase in
US domestic shale oil production, this route
has essentially become non-existent.
Since charterers rely mostly on VLCCs to
transport their crude from West Africa to the
Far East, longer-haul employment
opportunities from this region have become
increasingly limited for this class. Unless, of
course, it becomes more cost effective to
employ two Suezmaxes over one VLCC. We
did see some of that transpire in the first
quarter, which provided some support. But, for
the most part, rates out of West Africa
remained depressed like last year.
Rates dipped from around the WS111 level
in January to an average of WS62 in March, in
line with last year’s low numbers. In the Black
Sea/Mediterranean region, rates remained high
at the beginning of the quarter on the back of
the strong close at the end of 2013. However,
as delays subsided and tonnage supply
mounted, rates tumbled.
On average, this route declined about 54%
from January to March. One positive
development for the Suezmax sector was that
there was no net fleet growth in the first
quarter.
In the Aframax sector, Caribbean rates in
January traded at their highest levels for six
years. Weather delays were the main reasons
behind the surge in rates, which peaked at
WS305 in mid-January.
FFigure 44: MMR YYTD SSpot FFixtures
0
50
100
150
200
250
300
Carib/US Atlantic Coast UKC/US Atlantic Coast Singapore/Japan USG-UKC
# of Spot Fixtures
2013 2014
Source - McQuilling Services.
INDUSTRY - MARKETS
May 2014 � TANKEROperator
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As weather and activity subsided, rates fell throughout the rest of the
quarter. By March, rates dipped to an average of WS99, 10 WS points
below 1Q13 levels. The Cross-Mediterranean Aframax market also
reached significant highs as 1Q14 commenced due to delays in the
Turkish Straits and the re-opening of the Zawia Terminal in Libya.
This route traded at an average of WS172 in January. In February, it
lost a massive 87 WS points as it traded at an average of WS85 and
then firmed in March to WS95.
As for vessel supply, the Aframax fleet continued to contract in
1Q14, as eight ships exited the trading fleet, while no ships were
delivered.
Panamaxes trading in the Caribbean rode on the coat tails of their
larger counterpart in the beginning of 1Q14. In fact, when the
opportunity presented itself, larger Panamaxes cannibalised Aframax
cargoes, which helped to alleviate supply. Rates on the TD10
benchmark traded at an average of WS223 in January However,
weakness in the Aframax segment seeped into the Panamax market,
pressuring rates. By March, rates traded at an average of WS116, down
107 WS points from January, McQuilling said.
LR1/LR2 gainsTaking an opposite tack were the LR2s and LR1s. Oversupply capped
earnings potential in January and LR2s on the AG/Japan benchmark
began 1Q14 rather weak, as they traded at an average of WS74, down
19 WS points when compared to January 2013. A much needed boost
in activity helped to support rate levels as the quarter progressed. By
March, LR2s gained an average of 14 WS points from January.
LR1s, on the same route, mirrored the LR2s, as they traded at
WS89 in January, followed by a 24% increase in March to the WS110
level. There has been minimal change in the size of the LR2 and LR1
fleets, as one LR2 was deleted in 1Q14 and fleet growth of two in the
LR1 segment.
In the MR sector, spot fixture activity on the TC2 (UKC/USAC)
benchmark has declined by about 23% year-on-year. Meanwhile, what
was once the backhaul trade, TC14 (USG/UKC) has become the more
active route and fixture activity has increased by about eight fixtures
year-on-year. This has mainly been due to Europe’s increased need for
refined products on the back of reduced refinery utilisation in the
region.
MR rates can be volatile, which was evident throughout 1Q14 . TC2
started off the year at an average of WS144 in January, fell to WS126
in February before making its way back up to WS132 in March. TC14
on the other hand, steadily declined throughout the first three months
as it lost 17 WS points from January to March.
A triangulated voyage in the Atlantic Basin earned around $16,000
per day in January and fell to around $9,400 per day in March.
Similar to all of the other segments, MRs have faced their own
oversupply issues. This was further exacerbated by deliveries hitting
the water at a rapid pace. By the end of 1Q14, 15 MR2s (IMO III) and
one MR1 (IMO III) were delivered.
What can market participants expect in the second quarter?
McQuilling said that seasonal maintenance at Asian refineries will
likely keep downward pressure on the larger crude tanker segment.
Clean tankers will be challenged by new deliveries in addition to
refinery capacity coming online near demand centres. However, as US
refiners exit seasonal maintenance, an increase in cargo availability
should help absorb some clean tonnage in the region, the consultancy
concluded. TO
INDUSTRY - FINANCE
TANKEROperator � May 201408
When to undertakeshipping IPOs-
timing is everythingThe current year had started on a very optimistic note, as freight rates in the drybulk
and tanker markets were the strongest they had been in a long while.*
The market’s performance was
exceptionally commanding when
framed in the six month window
between the summer of 2013 and
first two months of this year. This was a
period in which freight rates for Capesize
bulkers and VLCCs showed a tenfold
expansion.
Such strength in freight rates was duly
reflected on the capital markets and was
epitomised by the M&A activity of 15 VLCCs
from Maersk Tankers to Euronav for just short
of one billion dollars and subsequently, the
acquisition of seven VLCCs from Scorpio
Tankers by interests affiliated by the Peter
Georgiopoulos group for about $750 mill.
Product and gas tankers had also been
enjoying a period of strength on the back of
the game changing US shale oil market that
proved beneficial for these vessel segments.
This market strength encouraged several
IPOs, such as Scorpio Tankers and Ardmore
Shipping (product tankers) plus Navigator
Gas, BW Gas (LPG) and Dynagas (LNG), but
decimated the crude tanker market on the back
of weak crude oil imports into the US.
On the back of the market’s renewed
strength, besides the enthusiasm and
preparatory work, there have been several
filings for IPOs in the tanker markets, some
public and a few private, plus several road
shows.
However, two abortive efforts seemed to
dampen the enthusiasm for the tanker markets.
Diamond S, the WL Ross-sponsored product
tanker company failed to obtain public listing
as did Stalwart Tankers in the chemical tanker
segment.
The disappointment from these two road
shows should not be regarded as negative, as
their failure was relative and the outcome was
transaction specific. To make it clear,
Diamond S would have had a successful
listing should the price obtained – at discount
to NAV – deemed to be acceptable by the
seller. The vessels, the asset class and the
management were solid, just that the pricing
hurdle was set exceptionally high – compared
to the historical cost basis.
Not attractiveFor the Stalwart Tankers road show, although
pioneering the stainless steel tanker market,
the package of vessels on offer was not the
most attractive in terms of age. Also, size was
not sufficient enough to have critical mass
(EBITDA of less than $2 mill in 2012), plus
just five vessels in the water and several of the
proposed acquisitions deliverable too far
forward (as late as 2017).
It has also to be noted that the timing of
both of the above road shows – especially the
latter – coincided with an overall declining
financial markets, due to macro, global, or
geopolitical events (heightened debate about
the end of quantitative easing and the events in
Ukraine).
At the time of the road shows, the freight
market was not at its best since product tanker
rates had dropped to $10,000 per day. In short,
the fact that these two road shows didn't result
in successful listings should not be discounted
across the tanker market overall - it was just
that the market had already peaked.
On the secondary offerings market, in early
March and about the same time of the above
two road shows, Ardmore Shipping was very
successful at raising an additional $90 mill in
the product tanker market and in April, Tsakos
Energy Navigation also raised $80 mill in the
crude tanker market.
Both of these secondary offerings were
priced at slight discount to NAV, which
emphasises two corollaries: if investors have a
choice of investing in shipping with
established companies at discount to NAV,
why should they invest at NAV for IPOs? And,
second, that the financial markets were not
shut at all to shipping; just that those two IPOs
didn't materialise as planned.
Diamond S has made it abundantly clear
that it will be returning to the markets in due
course in the hope of better pricing. In the
interim, another private equity-sponsored
tanker company – Principal Maritime
sponsored by Apollo, has publicly filed for an
IPO and the market is buzzing with hopefuls
lining up to subscribe
It is encouraging to see shipping back on the
capital markets’ radar after such a long
hibernation period; however, the impact of the
above mentioned failed IPOs notwithstanding,
there have been many hopefuls aiming at the
capital markets that are not even remotely
qualified for such effort, in our opinion.
Probably, going forward, it may be more
bizarre to see poorly qualified companies on
the road show catwalk than the capital markets
for shipping while it exits in its perma-frost
phase. And, having overly ambitious
companies to put it mildly, on the road show
circuit, doesn't serve the shipping industry
well.
There are plenty of investment opportunities
in shipping still and many qualified
management teams. Probably the best legacy
of the horrendous down cycle would be a
better bunch of shipping IPOs than those seen
in the last decade.
*This article was written by Basil M Karatzaswho is CEO of Karatzas Marine Advisors, ashipping finance advisory and shipbrokeragefirm based in Manhattan.
TO
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TANKEROperator � May 201410
NEWS FOCUS - ECAS
Early action key toensuring 2015 ECA
complianceThe impending enforcement of next year’s 0.1% Emissions Control Area (ECA)
regulation is causing considerable challenges to owners and operators*.
Among others, concerns over
increases in operational costs,
product availability and the most
appropriate compliance option will
create challenges.
However, while it will create added
complexity to the supply and use of marine
fuels, those who plan in advance and work
closely with a trusted fuel partner to develop a
compliance strategy that is right for their
business, are more likely to better adapt and
increase their competitive advantage. Not just
from keeping fuel costs as low as possible, but
also ensuring compliance and avoiding fines, as
well as managing the technical complexities of
switching to distillates, which, if done
incorrectly can cause significant damage to
vessels.
In managing the shipping industry’s adoption
of the stricter 2015 ECA regulation, while we
are now seeing more of a consensus of opinion
taking shape, more planning needs to be done.
Presently there are three options that have
dominated most recent debates:
� Scrubbers - We have seen some uptake of
scrubber technologies, but as a key
component to retrofitting scrubbers is
finding significant upfront capital, they will
not be the immediate ‘silver bullet’
solution.
� LNG – This can deliver from an emissions
reduction perspective, but it is still a very
immature market with limited global, port
and shore-based infrastructure.
� Distillates – There is current consensus
that this is going to be the most viable
compliance solution for the vast majority of
shipowners and operators, at least in the
medium term, both in terms of meeting
emissions requirements and operational
feasibility.
It is acknowledged that distillates command a
significant premium above heavy fuel oil and
there are cost considerations that must be
addressed. For distillates, we are currently
looking at a minimum of $300 premium above
heavy fuel oil in Rotterdam, for example.
Therefore, creating the right fuel procurement
strategy that maximises efficiencies, reduces
costs and helps owners and operators to
operate as profitably as possible is critical.
There are also considerations with the
availability of distillates, particularly in Europe,
that must be addressed. Europe is a region of
net-importers of middle distillates and it is
unlikely that there will be a significant increase
in MGO refining capabilities over the coming
years given the costs involved for refiners.
This means that distillates need to be sourced
from the Middle East and Asia/Pacific, where
refinery capacity is increasing to meet global
demand. To do this, it is important to know
what our customers needs are in advance, in
order to provide both reliability and flexibility
across distribution infrastructure and to ensure
that refuelling solutions are right for their
business and operational requirements.
Implications While other shipping sectors, such as ro-ro
operators, which spend the majority of their
time in ECA waters and will be most
significantly affected by the 2015 regulations,
for tanker operators, the emissions requirements
will still add additional complexity to their
operations.
As a physical fuel distributor and reseller that
has control over the fuel supply chain, we
recognise that reliable access to a wide range of
high-quality fuels worldwide and flexibility in
how we can supply fuel, is going to be even
more imperative.
Whether it is in high, rough seas, or on the
road close to shore, the pressure on operators to
safely and efficiently switch fuels, without
risking engine damage, or non-compliance,
needs to be alleviated as much as possible by
their fuel provider.
In practice, ensuring compliance with
increasingly stringent emissions regulations is
also about providing guarantees on product
quality and specifications, as well as ensuring
that these are delivered where customers need
them, at the right time and in the right
quantities.
OW Bunker has introduced a global quality
standard where all of our customers are
provided with a full specification analysis in
advance of any physical delivery, prior to the
usual test procedures conducted by an external
fuel quality inspection company.
Flow metersThis provides added assurances and additional
measures to detect off-spec, non-compliant
fuel products. We have also been equipping
our global distribution fleet with Coriolis flow
meters to ensure accuracy in the quantity of
fuel supplied, thereby avoiding increasingly
expensive margins of error as fuel prices rise.
Managing the 2015 ECA regulation,
therefore, requires marine fuel distributors to
look beyond just the cost of fuel to providing
real value throughout the entire fuel supply
chain, investing in innovation and developing
the highest quality in service standards that
maximises operational efficiencies.
For tanker operators in particular, it is about
having the fuel supply networks and
infrastructure to provide optimum choice and
flexibility across different routes and
conditions. This includes working as partners to
help streamline the fuel distribution process,
increase operational efficiencies and reduce
avoidable expenses by mitigating risks, as
much as possible so that the 2015 regulations
can be a force for positive change rather than a
costly, complicated problem.
*This article was written by OW Bunker.
TO
TANKEROperator � May 201412
NEWS FOCUS - ISLE OF MAN
Green tankers benefitat the Isle of Man
Ship RegistryThe Isle of Man (IOM) Ship Registry has thrown itself into attracting new business from
tanker operators, writes Brian Warshaw.
Following an initial 25% fee
reduction on joining the Ship
Registry, a 10% discount is now
offered in subsequent years.
Tankers currently registered will be eligible
for the 10% annual registration discount. At
the end of 2013, the IOM Ship Registry had
93 oil tankers, 57 gas tankers, and 35
product/chemical tankers; representing 42% of
its total merchant fleet registrations.
The caveat is that the vessels must produce
an International Energy Efficiency (IEE)
Certificate, or a pre-verification report
demonstrating that the ship’s attained Energy
Efficiency Design Index (EEDI) reduction
factor exceeds the IMO’s reduction factor
relevant for that class of vessel.
Amendments to MARPOL Annex VI
Regulations for the prevention of air pollution
from ships came into force on 1st January,
2013, and apply to all ships of 400 gt and
above. The new chapter IV makes mandatory
the EEDI for new ships. Other amendments
added new definitions and a requirement for
survey and certification, including the format
for the IEE Certificate.
High qualityDick Welsh, IOM Ship Registry director,
explained that the Isle of Man had originally
set up the registry to provide a high quality
international registry that would be the catalyst
for generating maritime sector business on the
Isle of Man. It is now pro-actively pursuing
green technologies and is establishing a
reputation as a jurisdiction to which ‘clean
tech’ businesses are choosing to relocate.
When asked a direct question by TankerOperator, Welsh was forthright in his
response. “Yes. We are throwing our net
wider to increase the number of vessels sailing
under our flag. Our registry provides great
service, high quality and all at a very low cost.
Unlike many international ship registries, our
fees are based on the ship, not the tonnage.
The larger the vessel, the greater is the
financial saving for the owner who registers in
the Isle of Man.”
According to Welsh, vessels of less than 10
years old will not normally require a pre-
registration if their Port State Control
inspection history is acceptable. Depending
on the shipyard where a newbuild tanker was
constructed, it would generally be accepted
without a pre-inspection if the owner has other
ships registered with the IOM Ship Registry,
or has previously delivered to IOM flag
requirements.
”Under normal circumstances we do not
make annual ship inspections. We focus
instead on an overview of the vessel’s
operation by carrying out the initial
International Safety Management (ISM) Code
and International Ship and Port Facility
Security (ISPS) Code audits. We will send a
surveyor to visit the ship at 2½ yearly
intervals, timed to fit in with the ship's
ISM/ISPS/ILO certification”, explained Welsh.
“We do these visits using our team of Douglas
based surveyors and 11 ship surveyors located
throughout the major ports. During the audits,
they will issue the relevant certificates, make a
general flag state inspection and complete an
inspection of crew accommodation, welfare
and working conditions in accordance with
ILO MLC,” he explained.
Citizens of most nations can register a
vessel under the Isle of Man flag, along with
limited companies and corporations from a
small number of countries. With the exception
of its barges and one LNG vessel, BP
Shipping has flagged its entire fleet of oil and
products tankers in the Isle of Man and
Pritchard-Gordon Tankers, another British
owned company, has registered nine of its 11
tankers. MOL has put its 2009-built VLCC ‘Pacific Voyager’ under the Isle of Man flag.
TOPhoto credit- MOL Tankships.
INDUSTRY - GREEK REPORT
May 2014 � TANKEROperator 13
Greek controlledshipping on a role
The Greek controlled fleet has increased in terms of ship numbers and also in terms ofdeadweight and gross tonnage, compared with the previous year, said the annual report
from the Greek Shipping Co-operation Committee (GSCC).
For the 27th consecutive year, the
GSCC has published statistical data,
in both tabular and written form, on
Greek controlled ships of over
1,000 gt, registered under the Greek and other
flags in co-operation with IHS Fairplay.
According to the data compiled as of 26th
March, 2014, Greek interests controlled 3,901
vessels of various types, of 290,847,132 dwt
and 170,984,684 gt.
Compared with the previous year’s data, this
represents an increase of 224 vessels, of
25,510,612 dwt and 14,996,300 gt. The total
deadweight tonnage represents the highest ever
recorded, the GSCC said.
The figures also include 378 vessels, of
various types, of 22,492,621 gt, on order from
shipyards worldwide.
However, the fleet registered under the Greek
flag decreased slightly in terms of ship
numbers, now comprising 819 ships, but
increased in terms of deadweight and gt -
standing at 76,107,917 and 44,190,793 tonnes,
respectively, as against 829 ships, of
73,449,021 dwt and 43,316,618 gt recorded in
2013.
It is to be hoped that the severe loss of
confidence created by the uncertainty of the tax
regime, will not result in heavy losses in the
future, the GSCC said.
The Greek controlled fleet is registered under
some 43 flags- see Table 1 below for the major
changes.
A comparison of the flag analysis of ships
owned by Greek parent companies, which gives
the total number of ships, total deadweight and
total gt, registered under each of the main
registries used by Greek owners, compared
with last year, shows that there were no
significant losses in terms of ships.
On the contrary, the Marshall Islands gained
123 ships, Liberia 36, Malta 31, Cyprus 7 and
Singapore 6.
The table below shows the biggest
gains/losses in number of ships, GT and DW.
After the Greek flag, Liberia follows with
678 Greek-owned ships of 49,053,034 dwt, the
Marshall Islands with 642 ships of 47,574,128
dwt, Malta with 592 ships of 44,687,046 dwt,
Panama with 393 ships of 23,334,889 dwt,
Cyprus with 242 ships of 16,598,126 dwt and
the Bahamas with 231 ships of 16,496,242 dwt.
Comparing Table 2 overleaf with the
corresponding table of the previous year there
are increases in all ship types with the
exception of cargo and passenger ships. The
greatest increase is in ore and bulk carriers,
reversing the trend of previous years (116),
followed by liquefied gas tankers (43), oil
tankers (32), chemical and product tankers (28)
and containerships (19).
The GSCC said that it was very satisfactory
that with the exception of the pure cargo, other
cargo and passenger ship types, the percentage
of all other types of Greek controlled vessels,
had increased relative to the corresponding
world fleet type during 2013.
As against the previous year, the position is
as follows for the tanker types:
Oil tankers
Percentage of number of ships 2014: 24.9
Percentage of number of ships 2013: 23.2
Percentage of total dwt 2014: 24.0
Percentage of total dwt 2013: 22.2
Chemical & products tankers
Percentage of number of ships 2014: 8.4
Percentage of number of ships 2013: 8.4
Percentage of total dwt 2014: 13.9
Percentage of total dwt 2013 13.5
Liquefied gas carriers
Percentage of number of ships 2014: 10.9
Percentage of number of ships 2013: 9.3
Percentage of total dwt 2014: 10.6
Percentage of total dwt 2013: 9.1
The average age of the Greek controlled fleet
of all types decreased during the past year by
0.3 years, and is currently 2.5 years below the
average age of the world fleet. The average
age of the Greek controlled fleet in term of
ships now stands at 9.9 years as against 12.4
for the world fleet. It is 7.7 years in terms of
gt and dwt.
However, the average age of the existing
Greek flag fleet increased slightly, in terms of
ships, gt and dwt, standing at 11.5, 8.5, and 8.3
years, respectively, as against 11.3, 8 and 7.7
years in 2013.
The following seven major IACS class
societies have the lion’s share of the Greek
controlled fleet on the their books.
� Lloyd’s Register = 824 ships (795 ships in
2013).
� ABS = 732 ships (710 ships in 2013).
Source: GSCC; IHS Fairplay.
Country Number lost/gained dwt gained gt lost/gained
Greece
Liberia
Malta
Cyprus
Marshall Islands
Panama
Singapore
-10
36
31
7
123
5
6
2,658,89636
3,480,941
3,151,346
1,039,259
11,006,137
320,001
1,685,951
874,175
2,119,654
2,239,202
461,381
6,453,454
-607,276
1,833,498
Table 1
TANKEROperator � May 201414
INDUSTRY - GREEK REPORT
� Nippon Kaiji Kyokai (ClassNK) = 644
ships (567 ships in 2013).
� Bureau Veritas = 603 ships (536 in 2013).
� *Det Norske Veritas (DNV) = 468 ships
(453 ships in 2013).
� *Germanischer Lloyd (GL) = 291 ships
(260 ships in 2013).
� RINA = 171 ships (175 ships in 2013).
*Figures compiled before the merger.
According to the Posidonia organisers, on the
back of a positive sentiment for the future, 2013
saw Greek shipowners placing a record number
of orders estimated at 25% of the global
orderbook, with shipbuilders remaining upbeat
as to future newbuilding investments funded by
Greek interests.
Quoting Newsfront, Greek Shipping
Intelligence, last year Greek shipowners
committed almost $13 bill to newbuilding
orders for 275 vessels of more than 24.5 mill
dwt and at the same time, increasing the
deadweight tonnage total on order for Greek
interests by 364%.
“As the Greek-owned, ocean-going fleet
continues to ride the wave of a dramatic
expansion spearheaded by a strategic
diversification drive, designed to cement its
leadership position globally, the world’s top
shipbuilding nations are vying for a prominent
position under the spotlight at this year’s
Posidonia Exhibition,” said Theodore Vokos,
project director, Posidonia Exhibitions.
Greek investment dominated the global
shipping orderbook across most vessel
categories in 2013 investing $4.5 bill on
bulkers, which topped the shopping list with
134 orders with a further $4 bill destined for
niche LPG carriers and LNG builders for a
combined 51 Greek-ordered vessels. The list
also included 65 tankers worth $3 bill.
“This robust Greek newbuilding orderbook
underlines the shipowners’ forward looking
spirit that makes them willing to spread their
asset portfolio between the safe bets of
traditional shipping sectors and the more
investment-intensive sophisticated tonnage such
as LNG and LPG carriers.
“These orders reinforced the strong ties
between Greek owners and Asian yards, as
China received 72% of bulker orders from
Greece, South Korea secured over a third of
Greek gas carrier orders with Japan also doing
well in most segments,” Vokos said.
PosidoniaTurning to the forthcoming Posidonia
exhibition, to be held outside Athens from 2nd
to 6th June this year, plus its accompanying
conferences and seminars, lobbying and
networking with the owners of the world’s
largest independent fleet worth in excess of
$100 bill and accounting for 15% of the global
total value of bulk carriers, containerships, gas
carriers and tankers, is not the only reason why
the world’s shipping community converges to
Greece every two years.
“Few events can match this scale of
international buyers. In 2012 the stands of more
than 1,850 exhibitors attracted over 18,500
buyers from 92 countries. Posidonia 2014 is the
opportunity for all players in world shipping to
meet and review challenges, opportunities,
trends and innovations with the owners of more
than 4,000 vessels approaching 260 mill tonnes
carrying capacity and their executives ” added
Vokos.
This year’s exhibition will welcome three
new national pavilions, from Hong Kong-
making a comeback after a 10 year absence –
Turkey, returning after 2006 and a total
newcomer, Georgia, promoting its maritime
services.
Apart from Posidonia’s regular and traditional
exhibiting sectors, there will be an enhanced
presence of oil majors, bunkering specialists and
traders and lubricants suppliers, such as Saudi
Aramco, Emirates National oil Company
(ENOC) , Chevron Marine Products, Lukoil
Marine Lubricants, Gulf Oil Marine, JX
NIPPON Oil and Energy Europe, KPI Bridge
Oil, ECO Lubricants, Baluco, joined by
companies such as Aegean Marine Petroleum,
Avin Oil, Elinoil, ETEKA, Cyclon, SEKA and
many more.
Posidonia is about to hang a ‘sold out’ sign
for exhibition space, as it is expected to attract
over 1,870 exhibitors from some 85 countries
across 35,000 sq m.
Type Ships dwt
Oil tankers
Chemical & products
tankers
Liquefied gas tankers
Ore & bulk carriers
Containerships
Cargo ships
Other cargo ships
Passenger ships
32 (44 on order)
28 (48 on order)
43 (70 on order)
116 (148 on order)
19 (61 on order)
-11 (1 on order)
-3 (6 on order)
-9
8,397,429
1,862,789
1580,345
11,910,743
1,887,166
-75,555
-32,009
Source: GSCC; IHS Fairplay.
The Posidonia organisers are keen to attract more seminars/conferences/meetings.
Table 2
Bunkering also features in this year’sPosidonia. Photo credit- OW Bunker.
TO
TANKEROperator � May 201416
INDUSTRY - NORWAY REPORT
As Arctic waters open up for
offshore exploration and
production, the race is on to
develop Norway into a critical
cog in the energy supply chain for the
emerging Arctic corridor.
According to the ‘2012 Arctic Opening’
report from insurance specialists Lloyd’s,
investment in the Arctic region could exceed
$100 bill within the next decade. The areas of
particular strategic importance include
Hammerfest, Kirkenes and Spitsbergen in
Norway, as well as Greenland, Murmansk in
Russia and key ports in Canada and Alaska.
Co-ordination across these countries will be
critical as it is in these regions that tanker
owners and operators should be poised to
respond to opportunities in the coming years.
However, there are challenges to be
addressed in developing a safe and robust
infrastructure the energy services across
Norway to ensure that the country remains
competitive and positions itself to respond to
increased demand from Arctic activity, while
also supporting and further developing its
domestic offshore energy sector.
Norway’s existing offshore oil and gas
sector is well established and benefits from
favourable tax regimes that support service
providers across the supply chain, from energy
majors and refinery operators through to third
party service providers. Government subsidies
for oil and gas exploration refund up to 78%
of exploration costs and taxes on oil and LNG
shipped internationally are significantly lower
than many other major energy exporting
countries.
GAC currently handles about 2,800 port
calls annually across Norway and provides
professional logistics services, handling
around 12,000 shipments each year. We also
provide project cargo chartering, marine
equipment, shipbroking for supply vessels,
mooring/unmooring services and marine
surveys, as well as a range of shipping support
services, such as bunker fuel supplies, weather
routing and training.
As Norway looks to diversify its energy
sector, there are further opportunities to align
both Arctic and domestic development in
Norway. To give an example, Solarctic, a new
company co-owned by GAC’s local Russian
and Norwegian partners and focused on Arctic
services, has recently been established to cater
for the oil and gas industry in the Arctic region
in particular and there is little doubt that the
offshore industry in the region will continue to
grow.
Infrastructure growthWe have already seen an increase in demand for
agency and freight forwarding services in
Norway’s northern territories, as the ‘High
North’ fields have opened up and the need for
land-based hubs closer to these fields has been
recognised.
In Hammerfest, for example, there is
increased demand for services in and around the
LNG terminal, but it can be difficult to get
supplies, crew and materials to the area, given
that accommodation is limited, the airport is
very small, and the journeys by road from
optional airports take a long time and can
become impassable in the winter months.
Hammerfest is also an important hub for
servicing vessels in the Barents Sea and as such,
developing a reliable service infrastructure now
and developing strong partnerships with local
service providers in the area is an important
consideration for owners and operators looking
to develop opportunities in the region.
As a result of Norway’s fragmented coastline,
there are rarely total solutions in place for
onward transportation. For example, some areas
may have a very well serviced port, but no
connecting air, or rail services for the movement
of freight across the country. Addressing such
issues is going to be key to ensuring operational
viability for Arctic development.
Local knowledge, on-the-ground support and
a regional support network for the supply of
services - are absolutely fundamental to
companies operating in Norway, where prices
for goods and services, transportation and
materials are much higher than in many other
energy hubs.
For tankers, the time spent in port has a
measurable impact on their bottom line.
However, importantly, service providers such as
GAC also have an important role to play in
helping customers to ensure compliance, from a
legal and regulatory perspective, as well as at
the HSSE level.
This is something that GAC focuses on
globally, but particularly given that the IMO’s
draft Polar Code is still undergoing a
comprehensive review process, it is critical that
we work with customers to enable them to
maintain the highest environmental standards
and ensure that their operations and procedures
are undertaken with the protection of the
environment in mind.
*This article was written by HermanJorgensen, general manager, GAC Norway.
Norway and theopening of Arctic
watersNorway’s energy industry is critical to the energy security of Europe, according to a
leading service provider operating in the region.*
GAC’s Herman Jorgensen.
There could be a lot of tanker and gascarrier traffic in the ‘High North’.
TO
TANKEROperator � May 201418
INDUSTRY - NORWAY REPORT
Shipboard energylosses identified
DNV GL has unveiled a novel approach to overcome challenges of assessing on boardenergy efficiency in a consistent manner. As a result, priorities for improvement can be
determined accurately.
In a new report recently presented in
London, DNV GL said that it had
answered the question - How can a ship
manager identify the biggest sources of
useful energy that are currently being wasted on
their ships?
“Ship operations and environmental
legislation have become more complex and it
has become increasingly difficult to assess or
even define efficiency with consistency and
accuracy,” said Rune Torhaug, director, strategic
research & innovation, DNV GL. “We have
therefore revisited the basic and universal laws
of thermodynamics to develop a methodology
based on exergy, sometimes called available
energy, which is a metric for describing the
maximum useful energy that can be derived
from a process, component or system.”
The methodology can be adjusted to suit
newbuilds still in the design phase, or operating
ships and it is designed to help managers make
the most out of their Ship Energy Efficiency
Management Plans (SEEMP).
Using both on board measurements and the
DNV GL modelling suite COSSMOS, energy
losses throughout the ship, including hull,
propulsion power train, machinery and electrical
systems, are quantified and ranked. Even
difficult-to-capture processes, such as throttling
and fluid mixing, can be incorporated.
The report includes an analysis of a waste
heat recovery system. These complex systems
can easily contain 70 components. “Through our
exergy-based methodology, the true sources of
useful energy losses were identified, revealing a
picture far from self-evident. Subsequent
optimisation in DNV COSSMOS yielded an
increase in fuel savings that halved the payback
time of the system,” said George Dimopoulos,
DNV GL senior researcher and project manager
of this position paper.
When the main engine of an Aframax was
analysed using operating data in combination
with DNV GL’s proprietary COSSMOS
modelling software tool, the true sources of
losses were identified with greater accuracy than
a traditional energy analysis, said Dimopoulos.
“In fact, the standard energy analysis failed to
identify the turbocharger as being the second
largest contributor to exergy loss,”he said.
Aframax analysisBoth energy and exergy analyses were
conducted in order to assess the performance of
the main engine of an existing Aframax. The
analyses were based on actual operational data,
as recorded in the main engine periodic reports
submitted by the crew to the vessel operators.
The study’s goal was to highlight the
significant increase of useful information, the
improved insights into the system and its
processes, plus the accurate mapping of the
sources of useful energy losses that can be
� Energy efficiency: 51.5%
� Cooling losses: 26.6% of fuel input
� Largest contributor!
� Exhaust losses: 25.1%
� Two equally important sources of losses identified
� Prioritise:
� Cooling: e.g. VFDs, ORC
� Exhaust: e.g. adv. WHR Cooling losses
Exhaust losses
Figure 1.
Main engine of an aframax tanker Energy analysis
INDUSTRY - NORWAY REPORT
May 2014 � TANKEROperator 19
achieved through DNV GL’s exergy-based
methodology.
The ship was fitted with a 2-stroke slow-
speed marine diesel engine delivering 11,300
kW at 97 rev/min at its maximum continuous
rating. For this study, the engine was considered
as a sub-system, comprising the turbocharger
(compressor, turbine), charge air cooler, main
engine cylinders/combustion block and exhaust
gas economiser.
The data available mainly consisted of
pressures and temperatures at different locations
in the fuel, air, water, steam and exhaust gas
path, plus fuel flow rate. In addition, using the
turbocharger performance maps, DNV GL said
that it was able to accurately estimate the air
and exhaust mass flows. Finally, DNV
COSSMOS was used for the thermophysical
property calculations, as well as the derivation
of the exergy and energy rates. The performance
report obtained was for a sailing condition in
which the engine operated at 80% of its nominal
load.
First, an energy-based analysis was
performed. From this it was observed that the
energy efficiency of the main engine sub-system
was 48.1%. The heat losses (charge air, jacket,
lube-oil coolers and radiation) amounted to
26.6% of the fuel energy, while another 25.1%
of the fuel energy left through the exhaust
gasses. Finally, 647 kW of heat was recovered
and converted to service steam in the exhaust
gas economiser.
This led to an overall system efficiency of
51.5% based on the results, the greatest sources
of losses were the charge air cooler, jacket
cooler and the exhaust gasses. Therefore, the
attention and efforts of the operators should be
focused towards accurate monitoring and
improvements in these sources, the class society
said.
Picture changeHowever, the picture changed significantly
when exergy analysis was applied, as shown in
Fig 2. The first important difference between the
two approaches was the significant increase in
information gained through the better
decomposition of losses and exergy destruction
per component. This led to improved mapping
and better understanding of energy/exergy flow
in the system.
Taking into account the exergy input of all
resources used (fuel, air and cooling water), the
exergy efficiency of the main engine sub-system
was 44.9%. With respect to cooling and heat
losses, the exergy-based figure amounted to
only 1.9% of the total exergy input, since these
are low grade heat losses that have limited
potential for useful energy extraction.
In addition, another 2.2% of the total exergy
input was destroyed in the charge air cooler.
Figure 2.
Thus, a significantly different picture was
reached, with 4.1% (exergy losses and
destruction) compared with the 26.6% of losses
derived through 1st law energy analysis.
The exergy flow of the exhaust gasses
leaving the engine was 10.4% of the total
exergy input, compared with the energy-based
25.1%. Furthermore, through the exergy
analysis, the engine turbocharger was identified
as an important source of exergy destruction,
with 6.9% of the total exergy input; this figure
cannot be determined by 1st law energy
analysis. Finally, the largest source of exergy
destruction was the combustion process, with a
contribution of 33.9%.
This comparison of energy and exergy
analysis revealed important disparities and
distinctions. When using exergy analysis, the
mapping of losses was different and more
detailed. From exergy analysis DNV GL
identified the major sources of exergy
destruction in the system - the combustion
process contributed 77.9% of the total exergy
destruction, turbocharger 15.7%, charger air
cooler 5.1% and exhaust economiser 1.2%.
The total exergy destruction amounted to
43.5% of the total exergy input to the system,
while losses to the environment (cooling and
exhaust) were only 10.8%. Finally, the overall
exergy efficiency of the system (power and
steam production) was 45.9%. TO
� Exergy efficiency: 44.9%
� Losses ranking:
1. Combustion: 33.9% (of total fuel exergy input)
2. Exhaust: 10.4%
3. Turbocharger: 6.9%
4. Cooling: 4.1%
� Significantly different picture than energy analysis
� Prioritise:
� Combustion tuning
� (WHR)
� Turbocharger
Cooling losses
Turbocharger losses
Combustion losses
Exhaust losses
Main engine of an aframax tanker Exergy analysis
TANKEROperator � May 201420
INDUSTRY - NORWAY REPORT
BASS upgradesmanagement offering -
wins orderLeading shipping management software house BASS has launched the
patented BASSnet 2.9 fleet management system.
In this latest offering, BASSnet 2.9
features new modules such as
environmental management, port forms
management and Excel forms
management.
In the era where messaging tools are fast
increasing in popularity, the 2.9 release also
features a ‘My Discussions’ feature, which
allows users to a create topics of discussions in
a ‘chat-room’ style environment regarding
specific records in the system.
A new ‘Maintenance Cost’ feature covers all
bases in the maintenance module. With this
feature, users can quickly generate either the
‘forecast’ or ‘actual’ maintenance cost incurred
for jobs, material and/or resource BASS
claimed.
To help ensure compliance with the ever-
changing guidelines related to crew safety,
BASSnet 2.9’s work & rest hours module has
now been enhanced to ensure compliance with
the OPA90 regulation.
Built on the Microsoft .NET platform,
BASSnet environmental management software
module was designed to help reduce a vessel’s
negative impact on the environment.
Users can track all information pertaining to
the calculations for environmental emissions
based on date ranges and voyage legs. This data
can then be used for comparison and for
generating environmental
impact trends.
Port operations have
become complex and now
involves a lot of
administrative work,
which is ultimately time
consuming. With this in
mind, BASS developed
the new port form
management module,
which contains a list of
country-specific port
forms for pre-arrival
clearance to be tendered
to the immigration,
customs, health and
security authorities at a
port and for statutory
bodies, such as the IMO.
This software can
integrate with other
BASSnet™ modules to
ensure that all the forms
have the relevant data that
is required for reporting.
The relevant port-specific
forms can be easily
printed and the system
can also store and print
non-port related forms
such as those related to
the environment, class, regulatory, etc. The
module also contains company-specific forms.
“BASS is foreseeing the future technology
in reducing paperwork involved in order to
create a green environment. We are pleased to
introduce our solution to meet the imminent
needs,” said BASS’ CEO, Per Steinar
Upsaker. “BASS prides itself in creating and
designing tools to generally simplify the
work-load of the average user while
maintaining a paperless workplace.
“With the new Excel forms management
feature, users can now create as many forms
as they require using Microsoft Excel. These
forms can then be linked to various records in
the system, for instance, link a form to a job
order in the maintenance module and users
can access and fill them up during the
reporting process. The values entered in the
form will then be captured and stored as a
record in the BASSnet documents’ record
manager,” he said.
BASS has recently signed a contract with
Simosa Shipping, marking the company’s first
foray into the Taiwanese shipping sector.
The BASSnet Maintenance module will be
implemented within Simosa Shipping. BASS
said that it had won the contract following a
tender exercise.
“The advantages of BASS shipping
software in optimising shipmanagement
through automation are truly impressive,” said
ML Sang, executive vice president of Simosa.
“We expect to see stellar gains in efficiency in
our fleet management with the deployment of
the BASSnet Maintenance module.”
For Simosa, the software will create
significant productivity improvement through
the streamlining of work processes using the
BASS’ Per Steinar Upsaker.
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May 2014 � TANKEROperator 21
planned maintenance system’s labour-saving
features to handle vessel components, spares
list and job maintenance procedures, BASS
claimed.
“Taiwan spells a huge potential for BASS,
as shipping is a very important part of the
country’s economy,” said Chris Long, BASS’
regional sales manager.“We can expect
Taiwanese shippers to take a keen interest in
the efficiency gains that the company will
enjoy with BASS’ fleet management systems.”
Despite being a relatively new company,
Simosa has an established pedigree through its
sister company, Simosa Oil and Gas. This
concern deals in asphalt, liquid CO2 and other
derivatives for export to China, South Korea,
Vietnam, the Philippines and Malaysia, among
other markets.
For BASS, the downturn in the shipping
industry underlines the crucial importance of
saving operating costs while improving
efficiency through intelligent solutions, the
company said.
This market strategy has helped BASS to
grow its list of clients to include several major
players in Singapore
Three-year old Simosa was set up to ship
Simosa Oil and Gas’products. The company
has three vessels at present but is looking to
expand in the near future.
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TANKEROperator � May 201422
INDUSTRY - NORWAY REPORT
This regime is a contractual
arrangement whereby each party
agrees to bear the risk of damage to
its own equipment, property, or
personnel occurring in the performance of the
contract and agrees to provide an indemnity
where any such liability is misdirected to the
other party.
Liability for damage to third parties is
apportioned on the basis of fault or, more often,
as in the case of pollution, on the basis of each
of the party's sphere of control.
In its purest form, the knock-for-knock
regime enables both parties to put in place
effective insurance cover that matches each of
their liabilities and avoids the need for lengthy
enquiries, or litigation, to determine liability
based on fault.
The knock-for-knock regime diverges from
the ordinary allocation of liability and there is
recent evidence of a trend towards an increased
willingness to depart from the traditional
regime. Parties are looking for certain acts,
particularly gross negligence, or wilful
misconduct, to be dealt with outside the
contractual liability regulation.
Courts in England and Norway have also
indicated a willingness to apply such carve-outs
from the knock-for-knock regimes where, as in
the case of English law, such limitations have
been expressly agreed by the parties and under
Norwegian law as a matter of principle.
Shuttle tanker services are generally operated
on the basis of terms and conditions developed
by the major international oil companies. The
current knock-for-knock clauses are
significantly more detailed than those of five, or
10 years ago. Modern versions generally
exclude gross negligence. Furthermore, these
standard terms generally exclude the right to
claim indirect and/or consequential losses
arising from any claim.
Introducing carve-outs within knock-for-
knock clauses is intended to create a more
balanced liability system. The exclusion of
indirect and consequential losses is in turn
intended to ensure that the most severe loss in
the offshore section, namely loss arising from a
halt in production at an offshore field, is carried
by the party most easily able to carry the
consequences of such losses, namely the oil
companies.
Finer detailsIt is easy to stumble on the finer details of this
type of regulation. For example, the term
‘consequential loss’ is interpreted differently
under English and Norwegian law. The much
narrower interpretation applied by the English
courts considers how the loss has been caused
rather than the nature of the loss incurred. If the
clause is not drafted widely enough, it may end
up providing much less protection than
expected. Furthermore, ‘gross negligence’ is not
a defined concept under English law and, in the
absence of a contractual definition, the manner
in which the exemption is applied may be
difficult to predict and could end up being far
wider than the parties intended.
The Norwegian courts are also increasingly
willing to apply carve-outs from contractual
regimes even where the parties have not
expressly agreed that this should happen. In
doing so, the courts have applied various
techniques, such as restrictive interpretations,
concluding that the conditions for relying on the
clause could not be met, or stating that it would
be contrary to the parties’ intentions and/or
assumptions at the time the agreement was
entered into to allow application of the clause.
In the recent Njord B case before the
Norwegian appeal court, the court did not
elaborate on the basis on which it set aside a
knock-for-knock clause, due to gross
negligence, but rather proceeded on the basis
that the clause could not be applied as a matter
of law where the loss was due to gross
negligence. The case concerned a collision
between a shuttle tanker and an FSO caused by
a blackout on the shuttle tanker’s dynamic
positioning system.
The English courts, on the other hand, have
been more willing to apply knock-for-knock
clauses even in the face of gross negligence.
One example is the decision in the A Turtlewhere, due to poor planning, a tug ran out of
fuel and disconnected the rig, which was left
drifting in the South Atlantic until it grounded
on a remote island. The rig owners argued that
the knock-for-knock clause should not apply as
the breach by the tug owner was so fundamental
that it fell outside the scope of the clause.
This argument was rejected by the judge, who
held that the clause would be applied since the
loss occurred in connection with the
performance of the contract. The case has led to
some criticism on the grounds that it creates
uncertainty in relation to the application of the
knock-for knock regime.
*This article was written by Gaute Gjelsten andNina M H Hanevold of Wikborg Rein lawoffices, Oslo.
Knock-for-knockcarve-outs on the
increase The traditional knock-for-knock regime has been utilised in offshore contracts and
related shuttle tanker contracts for many years*.
Nina MH Hanevold.
Gaute Gjelsten.
TO
INDUSTRY - ANTI-PIRACY
May 2014 � TANKEROperator 23
The presence of international naval
assets, Best Management Practice
(BMP) along with the increased
employment of armed guards has
helped to contain the problem. Consequently
attacks on shipping in this region have
dramatically declined.
However, as the maritime community can
justify a sense a satisfaction for the suppression
of piracy in east Africa, a different problem has
arisen in the west. The Gulf of Guinea is now
widely recognised as being one of the world’s
most hazardous regions for mariners.
Last year this area accounted for 19% of
global piracy incidents with a total of 51
Gulf of Guineaattacks continue
For the past 18 months, the once prevalent threat of pirate attack around the Horn of
Africa has almost diminished.*
attacks, 31 of them directed by Nigerian gangs.
During 2013, it was reported that 36 crew
members were kidnapped and forcibly taken
ashore for ransom and one crew member was
killed.
Sadly, that trend has continued into 2014.
According to senior officials from the US
military’s Africa Command, 40 vessels have
been attacked thus far this year by armed
gangs. The waters around Nigeria remain the
epicentre of the problem with 12 attacks and
multiple kidnappings being reported thus far
this year.
The modus operandi of West African pirates
ranges from petty theft of ships at anchor to the
hijacking of vessels by heavily armed and
organised groups. Tankers have often been
targeted for hijack and taken to the Niger Delta
swamps where their cargo has been syphoned
off to vessels belonging to the criminals. For
the victims of these attacks, the ship’s Master,
officers and crew, the ordeal is typically
harrowing as the criminals in this region are
renowned for their violence and brutality.
The Gulf of Guinea Commission claimed
that the region supplies around 40% of
Europe’s oil and around 29% of petroleum
products to the US, but fears are growing that
the piracy issue is spiralling out of control.
Phillip Heyl, US Africa Command chief of the
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piracy is increasing because West African
countries do not make maritime safety a
priority.
“The criminals are winning, criminals act
with impunity on African waters,” Heyl said.
“They fish illegally, they move illegal drugs,
arms, weapons, they attack ships and shipping
and that has a very negative impact on trade for
Africa and for the economic development for
Africa.”
In the aftermath of the successes achieved in
containing piracy on the east coast of Africa,
the question remains as to why the same
procedures aren’t being applied to tackle the
problem in West Africa.
Territorial boundariesFirst, the majority of attacks on shipping are
taking place within the territorial boundaries of
the sovereign state. Consequently, the
responsibility for the policing of these waters
lies with that particular sovereign government.
At present, the available resources and the
efforts of local authorities to protect shipping
operating within their territorial boundaries are
wholly inadequate.
Second, under international law, vessels that
enter the territorial waters of a sovereign state
are bound to the rules and regulations of that
particular state. Local laws in this region
stipulate that foreigners are prohibited from
being armed. In October 2012, the authorities in
Nigeria arrested and imprisoned 15 Russian
crew members after firearms were discovered
on board their vessel.
Ships seeking armed protection in this area
have the single option of hiring local law
enforcement personnel. However, this brings its
own complications, as questions are raised of
their level of training, competence and integrity.
Some shipping companies have utilised the
services of a reputable private maritime security
companies (PMSCs) to provide consultants
operating in an unarmed capacity to bring an
additional layer of security expertise. This too
has proven to be problematic as two British
security contractors have recently been arrested
without charge in Nigeria.
Mariners with experience of operating in this
region will most likely harbour unpleasant
sentiments of their time spent here. Corrupt
officials and bribery are commonplace. Visitors
may be forgiven for assuming that the majority
of the local population are impoverished and
unwelcoming. These are all conditions that
contribute to a challenging working
environment made even tougher with the added
threat of attack by pirates.
In many ways, piracy in the Gulf of Guinea
remains unique in nature, however the threat
remains as high as ever. Security procedures
must be region-specific with consideration of
local laws and pirates’ tactics. Vessels operating
in this challenging region are strongly advised
to seek the advice of a reputable PMSC, or risk
management company, to receive updated
intelligence reports and remain abreast of the
latest mitigation measures.
*This article was written by Ed Hill ofIntrepid Risk. Hill is a former Royal MarinesCommando where he served for over 14 years.Having left the forces in 2005, he has sincespecialised in security in hostile environments.He has been actively involved in maritimesecurity since 2008 and has recentlygraduated with a Masters’ Degree in MaritimeSecurity with distinction.
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TANKEROperator � May 201426
INDUSTRY - SATCOMS
Airbus Defense and Space is now a
division of Airbus Group and was
formed by combining the business
activities of Cassidian, Astrium,
formerly Vizada and Airbus Military. The
Marlink brand was included in the purchase
but will continue as an autonomous service
partner.
In a presentation in London recently, Tore
Morten Olsen, head of the maritime satcom
activities of the division, outlined a few of the
company’s new offerings in the maritime
satcoms sector.
A couple of months ago AuroraGlobal was
launched. This is a new high throughput suite
of satcom services for the shipping industry.
A new all-in-one maritime VSAT offering is
claimed by the company to double high-speed
data and allowances, with unlimited L-band
back up, without the replacement of existing
antennae.
Olsen said that demands were changing to
higher speed communications. He also said
that reliability had also increased and admitted
that Airbus’ offering was not always the
cheapest, but the group had the financial
stability needed to operate a good service.
There are around 120 players in the market
selling various services, some of which were
formed just to be sold off, he said.
The new VSAT offering is part of the new
AuroraGlobal service, delivering high
throughput satcoms, via one global multi-band
portfolio to maritime and other markets.
Shipping companies can now double their
VSAT speed with throughput at up to 2Mbps
and 60GB data allowance per month, with
unlimited L-band back up, to better
accommodate their communication needs and
budgets, he said.
They also have the option to upgrade to
future Ka- and Ku-band services without
having to invest in new VSAT antenna
systems for future high-throughput satellites
(HTS), as Airbus Defense and Space is a
strategic distribution partner for Inmarsat’s
Global Xpress Ka-band services and has
recently signed an alliance agreement with
Intelsat enhancing its Ku-band network and
bridging customers to the EpicNG platform.
New AuroraMaritime services include
Pharostar Plus/WaveCall Plus based on Ku-
band VSAT today, with the possibility to
transfer to Ku and Ka based HTS satellites in
the future. The high speed broadband with
increased data allowances, or throughput
speed to meet the growing demand for IP
applications and Internet connectivity is
available for all types and size of vessels.
Examples of the new Plus services include-
� If a shipping company already has a 10GB
monthly data allowance, this will double to
20GB (if transferring to this package)
� If a shipping company has an agreed
256kbps bandwidth it doubles to 512kbps
(if moving to this package). More data. or
speed can be achieved at no extra cost.·
� If already using Intellian 100GX, SAILOR
900 B, or Seatel 4012 antennae, a field
Airbus moves intomaritime
Much has happened to the maritime division of Airbus Defense and Space since the
grouping was launched a couple of years ago, as part of the parent
company’s expansion programme.
Airbus Defence and Space haslaunched the global field-servicealliance (GFSA).
GSFA is designed to ensure fast,
professional and cost-effective VSAT
installation and service support for maritime
VSAT satellite service providers.
The objective of the GFSA is to bring
together expertise of maritime field
installation and equipment to enable 24/7
installations and maintenance in major ports
worldwide.
Three service partners have already been
fully certified as members. Pro Nautas
Marine Electronics in Germany, Livewire
Connections in the UK and SRH Marine in
Greece, have met Airbus’ requirements
covering areas such as: antenna installation,
training and certification, logistics,
warehouse and spare parts capabilities,
guaranteed response times and local,
regional and global operating areas.
Each certified partner will provide the
complete range of installation and technical
service to ensure uninterrupted operation of
Airbus’ VSAT services. This includes
installation, demobilisation, repair, upgrade,
replacement and maintenance of VSAT
equipment.
The number of certified companies and
engineers operating under the GFSA is set to
expand in the coming months, the company
said. Ultimately, the alliance will consist of
a highly qualified network of VSAT service
partners, including both independent service
partners and Airbus’ service engineers.
“Alongside our new AuroraGlobal
network, this initiative will help to improve
customer support of current Ku-band and
future Ka-band based services via our
service provider partners, while
strengthening end-user confidence and
satisfaction in the satellite services they
choose,” said Tore Morten Olsen, head of
maritime satellite communications activities
at Airbus Defence and Space. “We are
committed to expanding the GFSA in order
to build a substantial resource that is capable
of performing installations and maintenance
to the highest standards anywhere in the
world.” �
Airbus offers VSAT support service
INDUSTRY - SATCOMS
May 2014 � TANKEROperator 27
upgrade kit will be supplied for GX
compatibility. No upgrade needed for
existing antennae for services on Intelsat
Epic.
� Unlimited backup on FleetBroadband, or
Iridium Pilot, as standard. Most extensive
Ku-band..
As mentioned, Airbus, the world’s second
largest space company and Intelsat, the
world’s leading provider of satellite services,
have announced that they have entered into a
new agreement bridging maritime VSAT
services to Intelsat’s HTS EpicNG platform.
This new agreement now provides global
high throughput satcom services with secure
access to Intelsat’s global Ku-band satellite
capacity and terrestrially managed network
IntelsatOneSM as from March of this year.
Airbus now offers an extended usage of these
new high performance solutions in its services
portfolio, which is upgradable to the new
Intelsat EpicNG platform.
For Airbus’ maritime customers, EpicNG
brings the potential for new services that
enable throughput in the range of 25-60 Gbps
– around 10 times that of traditional satellites,
the company claimed. Each EpicNG spot
beam can support Airbus’ maritime users with
1 m antennae featuring downlink speeds of up
to 290Mbps and uplink speeds of up to
225Mbps.
Intelsat’s open- architecture, flexible and
backward compatible EpicNG platform, which
operates with the existing Ku-band wide beam
fleet, enables customers to achieve higher
speeds without changing on board hardware.
When the EpicNG platform becomes
available, shipping companies will be able to
easily upgrade to Intelsat’s HTS technology,
Airbus said. Under the new agreement, Airbus
will grow its current and future requirements
for maritime Ku-band VSAT services with
Intelsat.
This new VSAT offering also includes the
latest XChange solution -XChange v3 - that
manages the switch between VSAT and MSS.
By using this system, IT managers and others
can remotely manage their ships’ IT and
operational communications with simplified
network administration on board and across
fleets.
XChange is an all-in-one solution to manage
communications services. It gives more
control with less operational overhead, while
on board administrative tasks can also be out-
sourced to onshore offices. It is fully
integrated with Airbus Defence and Space’s
Pharostar (entry and premium) services and v3
makes VSAT voice and data management even
more intuitive, the company said. Improved
features include an ability to flexibly prioritise
traffic, in order to give corporate traffic
priority over crew traffic, thereby securing
delivery of critical data.
“Combining XChange with our Pharostar
VSAT delivers the most complete and efficient
IT and communications solution for global
shipping companies available today. It is fully
focused on giving more flexibility and saving
money for the shipowner through enhanced
management of crew and voice data usage.
The latest upgrades secure its position as the
leading choice for efficient communication at
sea,” said Olsen.
This new solution has full VSAT and MSS
compatibility. Being fully compatible with the
largest range of VSAT terminals means that
shipping companies can use the antenna
systems available on board and simply
integrate XChange as the optimal network
management device.
As a single, powerful device offering
Value for seafarers • Privacy while communicating.
• Lowest airtime rates thanks to post paid allowance sharing.
• Free on board content access (documents, manuals, videos, training, etc).
• Access to personal account via any PC on board.
• Personal real-time usage- and cost control.
• Embraces personal equipment like laptops or smartphones.
Value for vessel operations• All-in-one multi-service/user platform for ship’s business and crew needs.
• Always-on with automatic fallback to most cost-effective connectivity (VSAT)
• Easy to deploy and install (one-click preconfig =30 mins). Easy to operate
and use.
• Reduced coms management & administration cost (prepaid recharge, secure
user authentication for crew calling on shore usage monitoring).
• Real-time cost control & user monitoring (incl M2M).
• Allows flexible sharing of communication cost.
XChange v3 highlights
complete connectivity control, regardless of a
vessel’s existing network configuration, it
enables easy access to the preferred satcoms
connection. It only takes a few minutes to
configure XChange v3 to enable access to the
new features on offer.
Enhanced voiceVoice functionality has also been enhanced
with this new version, with the choice of
VSAT voice and up to three MSS optimised
voice connections. Available lines are
automatically selected for more convenience.
It improves network access for end-users,
while seafarers benefit from a single account
with an automatically remembered login for
data and telephone services on their individual
devices. All data and voice costs can be
charged to each crew member’s account.
XChange v3 also includes the BYOD (bring
your own device) Wi-Fi solution, allowing
shipping companies to provide crew with the
most cost-effective voice and Internet services
delivered to their own smartphones, laptops
and tablets.
This will allow shipping companies to
provide an affordable and easy-to- use Internet
café on board, while maintaining full control
of their communications budgets.
“Our state-of-the-art VSAT service offers
the largest coverage and cost-effective high-
speed broadband available today on the
market,” said Olsen. “Offering twice as much
value for money, it allows maritime users to
embrace more efficient IT applications in their
daily operations, while also improving crew
connectivity and keeping an eye on the cost of
their communications.”
As of the first quarter of this year, some 900
XChanges had been installed on board ship
since its launch late last year and it was hoped
to reach 1,500 by the end of this year. Among
the shipowners to have taken advantage of
XChange are Scorpio, Anglo-Eastern, Geden
and Hartmann.
In another move, the company has expanded
its Ku-band VSAT coverage in the Indian
Ocean Region, using the Intelsat IS-702 S2
satellite.
The new coverage gives improved
availability of Pharostar, Sealink and
WaveCall VSAT voice and data services for
vessels transiting, or operating primarily in the
Seychelles area, north to Ethiopia and south to
Madagascar. An improved Ku-band footprint
will also enhance security and anti-piracy
efforts in the region.
“By bringing up this network, we enhance
our market leading global VSAT coverage to
support service providers serving customers in
the IOR. The new coverage enables delivery
of reliable connectivity up to 3.8Mbps,” said
Ghani Behloul, head of product marketing,
maritime, Airbus Defence and Space. “The
IOR coverage extension is part of our
commitment to maintaining the most extensive
maritime VSAT coverage for global users.”
Email recordLast year, the company reached a new record
for its dedicated SkyFile Mail software with
more than 50 mill emails sent by some 40,000
seafarers worldwide – a 25% growth in email
volume over the previous year. There are now
some 15,000 subscribers and the demand is
crew driven, Airbus said.
SkyFile Mail is an email solution for
business and crew and has been taken up by
some of the world’s largest shipping
companies. It is a messaging application
optimised for satcom and a partner for Airbus’
Pharostar, Sealink and WaveCall VSAT
services.
The increased use of SkyFile in 2013 was
similar for both VSAT and MSS, reflecting the
ease of migration to SkyFile from other email
platforms and from L-
band satcom, as users
do not need to be
retrained when a vessel
upgrades its satcom
from MSS to VSAT,
the company said.
Skyfile optimises
bandwidth efficiency
on board through data
compression, which
further reduces the size
of emails sent. The
remaining VSAT
bandwidth can be used
for other operational,
or crew applications.
Further efficiencies
come from enhanced
remote management
features.
“Owners and
operators looking to
change to our
dedicated maritime
email solution can
keep their existing
email addresses and be
confident in SkyFile’s
ability to enhance their
email communications
regardless of the
satcom band they use,”
said Olsen.
SkyFile Anti-Virus also saw growth, with the
amount of licences in operation nearly
doubling throughout 2013. New over-the-air
updates also attracted more users.
Olsen said that shipowners should not worry
about who is providing the satellite services,
but about the service itself. Airbus sells
satcoms both directly and indirectly though its
service agreements. He said that thus far, the
VSAT market was only running at about 30%
but will grow.
He said that shipowners/operators want a
simple, integrated, single service with one
invoice for all the services provided. Airbus is
rolling out global alliance partners to cater for
shipboard installations and maintenance. An
antenna can be installed without the use of a
crane in a few hours, he claimed.
Olsen explained that owners and operators
were more concerned about the cost per
Megabyte rather than bandwidth. As the cost of
Megabytes decreases, so larger capacities will
be used at sea, at no extra cost, he said.
Finance options are being explored to turn
the purchase of the equipment into a vessel
operations expense.
TANKEROperator � May 201428
INDUSTRY - SATCOMS
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TANKEROperator � May 201430
INDUSTRY - SATCOMS
New deals, packages and solutions
vying for the shipowner and
operator market are announced
with predictable regularity –
reflecting how Internet is expected to be
ubiquitous – even at sea.
Faster connections, bigger data allowances,
better coverage and improved functionality all
serve to enhance vessel and fleet operations and
crew welfare, so the speed at which the market
moves can only be positive for tanker owners
and operators.
But regardless of the quality of services and
the various network infrastructures that enables
them, one link in the chain brings everything
together – the on board satellite terminal – or
antenna, as it is often referred to.
Cobham SATCOM claims to know a lot
about maritime satellite terminals. The company
is a combination of two of the largest players in
the maritime communications field during the
past 30 years: Sea Tel and Thrane & Thrane.
Cobham acquired Sea Tel in 2003 and Thrane &
Thrane in 2012. The latter managed the
SAILOR product line of maritime radio
communication, which dates way back into
1960s.
Today, Cobham SATCOM develops and
markets maritime satcom terminals for VSAT
(very small aperture terminal) and MSS (mobile
satellite services) under both the Sea Tel and
SAILOR brands. Sea Tel is a pioneer of vessels’
stabilised antennas, having built the first
Inmarsat-A antennas (L-band) in the 1980s and
then moving its capabilities into satellite TV and
VSAT (Ku, C, X-bands) since the 90s.
SAILOR meanwhile has dominated the
Inmarsat L-band MSS terminal market since the
beginning of the century. Well over 100,000
Inmarsat-C terminals have been installed and
with more than 20,000 SAILOR Fleet and more
than 35,000 SAILOR FleetBroadband terminals
shipped, the brand has become the de facto
industry standard for Inmarsat’s popular L-band
services. FleetBroadband currently features
heavily in the tanker sector, with a huge number
of vessels benefiting from the up to 432kbps
connectivity it offers.
But times change and today, with ever
increasing and maturing satellite coverage,
VSAT services are also beginning to penetrate
the tanker sector. While talk of VSAT often
comes down to increased bandwidth – more
speed – perhaps the more important benefit of
Ku-band VSAT is that unlike MSS, it is not a
‘pay per MB’ service and offers more
throughput for the same, or less money. VSAT
users receive a single predictable monthly bill,
meaning budgets can be set and use of on board
connectivity can be managed better – therefore
increasing functionality for operations and
offering improved, but usually less costly voice
calling and Internet service to crew members.
Simplifying VSATWith Sea Tel being first to the maritime market
with stabilised VSAT antennas over 20 years
ago, its Cobham SATCOM stable mate entered
the scene much later. So, though SAILOR is
generally recognised for high quality design and
manufacture, the engineers needed to have
something to ensure SAILOR had the same
impact on VSAT, as it did on MSS. Unlike for
instance, FleetBroadband, VSAT traditionally
was not a fit and forget affair. Recognising that
Terminal connectionsevolve with new
satcoms offeringsThe market for maritime satcoms services for ships and indeed tankers is moving fast.
Sailor 800 internal view.
INDUSTRY - SATCOMS
May 2014 � TANKEROperator 31
the process of VSAT procurement and
maintenance can be complex and time
consuming, due to needing to source and
integrate components – antenna, RF components
from multiple manufacturers, modem, router, etc
– from different suppliers, the product team saw
an opening that would significantly help VSAT
service providers and end-users.
In 2012, the SAILOR 900 VSAT antenna
system was launched. It was designed and
developed from a clean slate with high
performance, ease-of-use and global
serviceability in mind. This superior
performance enables a maritime service
provider to deliver higher bandwidth, better
quality and availability of service, Cobham
claimed. However, one of the key values
SAILOR 900 VSAT offers is its ability to
eliminate much of the complexity often
associated with maritime VSAT projects.
The SAILOR 900 VSAT requires no
evaluation, planning, procurement, or
installation of RF components – it’s all built in –
making it the ideal solution for standardised
VSAT installations and services; the kind that
are most suitable for tankers. Sea Tel VSAT
antennas are more regularly used for customised
solutions with specific high power requirements,
normally for other ship types such as offshore,
or cruise liner projects.
With the SAILOR system, the need for
labour-intensive testing and balancing of the
antenna is removed as Cobham SATCOM
installs universal RF-components and live tests
the antenna during production so that it will
work on any Ku-band service, anywhere. The
importance of this cannot be understated; it
really is a step change in the world of maritime
VSAT, which makes it a far more attractive
prospect to potential users, the company
stressed.
To accommodate this approach, an antenna
testing and simulation facility was built at the
Cobham SATCOM HQ in Lyngby, just outside
Copenhagen. Critical to the success of the
‘Advanced Dynamics Simulator’ facility
and SAILOR 900 VSAT was obtaining real
vessel data using special measurement
equipment deployed on board various
vessels.
It recorded heading, roll, pitch, yaw,
acceleration, position, temperature and
random vibrations data, which was then
fed into a multi-axis hydraulic motion
testing and simulation platform that
replicated exactly the movement of any
vessel.
Using real vessel motion and conditions,
while connected to a live satellite provided
a realistic long-term testing ground, which
supported live sea trials and enabled a huge
amount of data to be acquired in a
relatively short period, which is an
important factor as it enabled Cobham
SATCOM to overcome the limitations that
antenna manufacturers face on carrying out
live testing during the development phase.
Following on from the success that this
approach created for SAILOR 900,
Cobham launched a smaller version, which
will be suitable for installation on smaller
vessels, or when a vessel is operating
regionally, for instance, shuttle tankers of
any size. Test facilities at Eutelsat and
extensive tests at teleports have confirmed
that at 83 cm, it provides the same radio
performance as other antennas in the 1 m
class.
The result is an antenna capable of
delivering more bandwidth compared to
competing 80 cm antennas, while being
easy to install and using less real estate on
board. It is based on the same technology
as the 900 VSAT, which itself sets good
performance standards within the 1-1.2 m
antenna sector. Cobham’s newest Ku-band
VSAT antenna offers the same benefits as
the 900 VSAT, in terms of simple
procurement and installation in addition to good
RF performance, the company said.
Fast forward to 2014 and the world of VSAT
is changing. The SAILOR VSAT platform is
being used to inform a new line of SAILOR
antennas for the Inmarsat Global Xpress service,
which will offer full global service availability
in 2015. Global Xpress is a new service, which
is using Ka-band for high throughput and
bandwidth, with FleetBroadband for redundancy
with out-of-band-management as standard.
Customers will pay a flat rate similar to VSAT
services but including the redundancy of the L-
band service.
The new SAILOR 100 GX sports a 103 cm
reflector dish and is aimed at Cobham
SATCOM and Inmarsat’s core global shipping
Sailor 900 ACU.
Sailor 500 FleetBroadband.
TANKEROperator � May 201432
INDUSTRY - SATCOMS
customers. The compact SAILOR 60 GX
features a 65 cm reflector dish making it
suitable for enabling Global Xpress’ high
bandwidth connectivity on a wide range of
smaller vessels.
The first GX terminals will be available
during summer 2014, to help to ensure that
Cobham SATCOM’s maritime service provider
partners can begin installing the systems on
customer vessels for Inmarsat’s commercial
service introduction. Both new terminals
continue the ‘all-in-one, ready-to-go’ approach
introduced with the 900 VSAT antenna. It was a
natural step to employ this for the launch of
Global Xpress to ensure simplicity and high
reliability for service providers and shipowners,
Cobham said.
Global Xpress isn’t the only high-throughput
service in the offing. Intelsat will launch
EpicNG in 2016 reinforcing globally available
Ku-band networks with several more satellites
and high power beams providing very focused
bandwidths in highly dense areas like the Great
Circle routes across the Atlantic and Pacific
Oceans and offshore energy hot spots. Telenor
will also launch Ka-band services on its new
THOR 7 satellite.
Cobham’s SAILOR VSAT antennas have
been approved for operation on the existing Ku-
band, as well as the forthcoming THOR 7 Ka-
band satellite from Telenor Satellite
Broadcasting (TSBc). THOR 7, TSBc’s latest
satellite, is expected to be launched in the fourth
quarter of this year and is equipped with a Ka-
band HTS payload. The SAILOR 800 and 900
VSAT have been approved to support Ku-band
services on the existing THOR fleet while
SAILOR 900 Ka and the new SAILOR 800 Ka
will be compatible with THOR 7.
Covering the 1 deg West region, THOR 7’s
Ka-band capacity is strategically positioned over
the main shipping routes in Europe and major
oil and gas exploration and production areas,
including the North Sea. The THOR 7 Ka-band
HTS payload offers 6-9 Gbps throughput with
up to 25 simultaneously active spot beams.
Services will offer reliable speeds in the tens
of Mbps downlink, even from small antennas.
Uplink speeds will be anywhere from 2Mbps to
6Mbps depending on antenna size. Service
reliability is key, with TSBc implementing a
package of solutions to mitigate rain fade on
Ka-band, including a new uplink site in Norway
to provide antenna site diversity.
THOR 7’s Ka-band HTS payload has been
specifically designed for the mobility VSAT
market, offering highly concentrated and high
powered coverage over TSBc’s main market
area, including the North Sea, Mediterranean
and the Baltic Sea. Approval of Cobham
SATCOM’s Maritime VSAT antennas for
THOR 7 strengthens a longstanding co-
operation between the companies and is
testament to the standardisation approach it has
for SAILOR antennas, Cobham claimed.
When looking at next generation VSAT, it’s
important to note that Ku-band services already
have the potential to deliver very high
throughput, with near global coverage on a very
cost effective basis. So though Ka-band services
are currently in the spotlight, standardised Ku-
band services will continue to be an important
option for tanker owners.
Regardless of the satellite operator or service,
Cobham SATCOM VSAT users will be among
the first to benefit from the power of HTS with
innovative, reliable Ka-, Ku- and Ka/Ku-band
antennas from both SAILOR and Sea Tel
already prepared for the next generation of
maritime VSAT services., the company
concluded.
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TANKEROperator � May 201434
TECHNOLOGY - WASTE FUEL RECOVERY
Waste fuel recovery -an industry standard
overnight?Alfa Laval is seeing increasing take up of its PureDry separator system. Orders have now
been placed by leading shipowners in nearly every vessel category, including the tanker segment.
Since 2008, MARPOL rule
MEPC.1/Circ.642 has allowed the
recovery and reuse of the heavy
fuel oil (HFO) percentage of waste
oil as engine fuel. Thus far, however, only
Alfa Laval’s PureDry system has been
developed to take advantage of this waste oil
possibility, the company said.
This separator lets vessels recover nearly all
of their fuel oil losses, which range from 0.5
to 2% of their total fuel consumption.
“In general, I can only think of this as an
excellent idea,” said Jacob Norrby,
newbuilding project manager for Stena. “We
recover something that is normally wasted,
and that we sometimes have to add energy to
in order to burn it.”
The Gothenburg-based company is
installing the systems on board the Stena
Weco 50,000 dwt MR series of Eco tanker
newbuildings. In general, the larger the
installed power on a vessel, the more savings
can be made by using PureDry, Alfa Laval
explained.
Stena is just one of the leading shipping
companies who together have ordered around
120 PureDry systems for their newbuildings.
In the tanker sector, joining Stena in ordering
systems, is Frontline, while other owners
include Carnival Corp, MSC, Norwegian
Cruise Line and Wallenius. All of their vessel
designs were modified by the shipyard to
segregate fuel and lube oil waste. This marked
a paradigm shift, as vessel design changes
were made to accommodate the new
separation technology, Alfa Laval said.
Previous attempts with traditional separators
have marginally reduced waste volumes, but
process water and discharge losses have
allowed a large amount of waterlogged, fuel-
containing waste to remain. “The treatment
and disposal aspect was normal, in that it’s
been addressed over the years,” said JS
Narayanan, manager newbuilding projects for
Frontline. Naranayan had expressed surprise to
learn of a solution that gets fuel out of the
sludge, rather than simply reducing its volume.
“This is new,” he said, “the recovery of fuel
from what was previously thrown out.”
“Knowing that there’s 1-2% fuel (losses) in
the sludge, it’s not surprising that this
application should develop,” said Norrby. “But
what’s encouraging is that we see PureDry as
a quality product. It’s engineered well, and the
technology Alfa Laval has built on is good.”
Breakthrough technologyPureDry is a hybrid technology: a high-speed
disc-type centrifugal separator with a solid
bowl, yet one that is also self-cleaning.
As the name suggests, PureDry requires no
process water and leaves no liquid in the solid
waste. Nor does it have a bowl aperture, or
hydraulics. Norrby explained; “The separator
looks fairly simple, which is some of the
beauty of it.” Alfa Laval said that the only
major moving parts are an outer bowl and a
separator insert, which rotate at slightly
different speeds. Attached to the insert is the
XCavator, a patented spiral device that
transports the separated, super-dry solids into
a container at PureDry’s base.
Yet another departure from traditional self-
cleaning separators claimed by the company is
the way that maintenance is performed.
PureDry relies on maintenance and service by
exchange, whereby the separator insert and
XCavator are replaced at fixed intervals. “This
is attractive, because the crew on board are not
high-tech experts,” said Narayanan. “The
complete renewal of the rotating assembly
makes maintenance simpler and easier, so we
don’t expect much workload on the crew.” The
systems are skid mounted for ease of
installation.
By using PureDry, virtually all of a vessel’s
fuel oil losses can be recovered to ISO 8217
quality. The elimination of this energy leak has
a strong environmental implication, but above
all it makes for a bullet proof business case,
the company claimed. Norrby said; “These
two things go hand in hand. This is not a
All 12 of Stena’s MR newbuilding series at Guangzhou Shipyard International will be fittedwith PureDry.
TECHNOLOGY - WASTE FUEL RECOVERY
May 2014 � TANKEROperator 35
cheap investment, so it’s nothing you just run
out and buy. You have to support the
purchase.”
For many shipowners, there is also a strong
business case in minimising the sludge
volumes, which PureDry is claimed to reduce
by 99%. PureDry leaves just 5-10 kg per day
of non-pumpable, super-dry solids, which are
landed simply as dry waste. All of the water,
with an oil content of around 100 ppm, is
passed on to the bilge water system. This
negates the necessity of offloading waste to a
barge.
Alfa Laval said that if there is anything to
complicate the PureDry business case, it is the
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TANKEROperator � May 201436
TECHNOLOGY - WASTE FUEL RECOVERY
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fact that modifications in vessel design are
needed to achieve all the benefits. On the one
hand, PureDry makes it possible to reduce
sludge tank holding capacities by at least 50%
under current legislation. But to recover fuel
in addition to reducing waste, the streams of
waste fuel oil and waste lube oil must be
segregated.
Segregating the tanks, rather than
demonstrating PureDry’s effectiveness, has
thus far been the main hurdle, the company
said. For a newbuildings, the procedure is
easier, since the changes can be made on the
drawing board. Yet for shipyards unfamiliar
with waste fuel recovery, even this has led to
some discussion. “The product is unique, so
there was no challenge in selecting it,” said
Frontline’s Narayanan. “The challenge was
making the shipyard understand the simplicity
of it. But once it has been done with one
shipyard, others can simply follow.” As
shipyards grow more familiar with the
application and with PureDry itself, smoother
integration can be expected.
With the savings documented thus far, it is
hardly surprising that there is talk of waste
fuel recovery as a new standard, Alfa Laval
said.
Leaving the last words with the tanker
owners, Fronline’s Narayanan said; “We
welcome anything that can lead to savings in
our fuel use and the reduction of emissions.
We welcome the new technology.”
“If we expect to recoup 1% of the bunker
consumption, that’s on the margins of what is
possible to measure. But we believe in the
technology. And we expect it to work as
intended in regard to performance and
maintenance,” said Stena’s Norrby. TO
PureDry is skid mounted and can be exchanged for ease of maintenance.
TECHNOLOGY - ECDIS
May 2014 � TANKEROperator 37
This service can only improve still
further once Inmarsat and Intelsat
introduce their new products. The
cost of using satcoms will also
continue to fall in relative terms, as the service
providers increase the scope of their offerings.
One of the big three in terms of distributing
global charts is Oslo headquartered Nautisk
Forlag. For example, of the 140 plus UKHO
charts agents, only three have a worldwide
portfolio coverage, of which Nautisk is one.
At the end of March, Nautisk received DNV
GL approval for the company’s Neptune Pay as
you Sail (PAYS) solution.
PAYS enables users to access global ENCs
for use with on board ECDIS systems, while
only paying for those that are actually used.
Peter Pran, Nautisk global sales manager
said:“Despite a positive market outlook,
demands on shipowners and vessel operators to
make cost savings and optimise operational
efficiency are continuing to increase. We are
working with our customers to find bespoke
solutions that enable them to benefit fully from
our global portfolio of ENCs through an on-
demand system.
“Our PAYS solution gives both shore-based
and on board teams access to any number of
ENCs that may be required for one particular
trading route. ENCs are downloaded onto the
ECDIS for planning purposes and we then track
the vessel. As the vessel sails through a
particular area, the shipowner is charged for the
use of those ENCs only.”
As no hardware installations are required to
use the service, additional on board equipment
is not required. The system is fully compliant
with SOLAS regulations and take-up has so far
been positive, he claimed.
Pran added: “We know that where voyage
planning is concerned, one size does not always
fit all, and many of our customers are choosing
to combine PAYS with our pre-paid service,
which means ENCs are available in advance,”
he explained.
In conversation with Tanker Operator, he
further explained that the main advantage of
digital downloading was that it could be
undertaken the same day as the order is
submitted, as opposed to waiting for a CD to be
delivered when a vessel arrives at a port. Only
the ENCs are downloaded for which the
shipowner has a license.
During a voyage planning exercise, all the
ENC cells needed for a particular voyage can be
identified and ordered digitally.
Nautisk’s Neptune is a real-time vessel
information service compatible with both bridge
and shore-based systems. The data is
downloaded on demand. It is essentially a vessel
information system which takes away the day-
to-day administration of ENCs and other
downloads.
It works by combining electronic Notices
from British Admiralty, the Norwegian
Hydrographic Service and NOAA with an
update service for ENC cells from the UKHO
and PRIMAR and also includes marine
management tools, digital IMO publications,
reports, weather forecasting, routing, online
news and information.
Nautisk has been supplying maritime charts
and publications to commercial shipping since
1896. It has had a strong focus on the shipping
market since its beginnings as the chart division
of NHST.
Pran explained that fully staffed warehouse
centres have been set up in Oslo, Singapore,
Hong Kong, Bristol (UK) and New Orleans, as
the company has invested heavily in expansion
during the past couple of years. This allows
Nautisk to offer a 24/7 service covering every
time zone by employing specialists at each of its
centres and to cater for the so called ‘rush’
orders, where a vessel needs to divert from its
original route.
A former serving Norwegian Navy
navigation officer, Pran thought that an ECDIS
should purely be used for navigation. All the
various layers now available should be
installed on the back of the bridge in a
monitoring station, he said, as the prime
reason for fitting an ECDIS could be lost in
the detail.
Proper procedures should also be put in
place by the shipowner/manager covering the
bridge team management. For example, when
an alarm goes off on the bridge, the bridge
team should deal with it, according to the
procedures laid down by the company.
He also explained that down the years,
Nautisk had built up considerable expertise in-
house using both academics and former
serving navigation officers, which he thought
was an important contribution to the
company’s success - a mixture of theory and
practice in the use of electronic charts.
For ECDIS training purposes, he said that
the preferred method was beginning with
computer-based training (CBT) followed by
practical training on board ship using a system
with an experienced navigator.
In the future, Pran thought that to cater for
possible ECDIS malfunctions, an exchange
service could be introduced whereby the
damaged system is taken away for repair and
immediately replaced on board by another
identical ECDIS, thus keeping up with the
IMO’s twin ECDIS ruling.
Providing the rightENC service at theright time is vital
As can be seen from our Satcoms feature on pages 26-32, it is now much easier to sendelectronic data to vessels, as the satcoms service providers are increasingly offering
more bandwidth and transmission speeds at little extra cost.
Nautisk’s Peter Pran. TO
TANKEROperator � May 201438
TECHNOLOGY - ECDIS
Entitled The Admiralty Guide to
ECDIS Implementation, Policy
and Procedures (NP232), it
complements earlier publications
such as The Admiralty Guide to the Practical
Use of ENCs (NP231) and The Admiralty
Guide to Symbols Used in ECDIS (NP5012).
It was published to provide clear guidelines
for those responsible for the introduction of
ECDIS on board ship and in particular to those
responsible for developing procedures for
operating an electronic chart system.
The guide is also intended to provide an on
board reference to support a company’s
procedures put in place for ECDIS operations.
This will help in the preparation for audits and
inspections and provide clarification of a
company’s ECDIS policy and procedures, the
UKHO said.
It has been produced in two parts. The first
of which reflects the nine specific stages
identified by the UKHO as needing to be
considered by a company when making the
transition from paper charts to an ECDIS.
Each of the nine stages, listed overleaf, are
covered by separate sections in the book. The
UKHO estimated that all nine stages would
take around 12-18 months to complete.
Part 2 is devoted to the development of
policies and procedures to support shipboard
ECDIS operations, once the transition from
paper charts to an electronic system has been
achieved.
This section includes -
� Bridge organisation - aspects of procedural
bridge environment to promote a system’s
safe and efficient operation.
� Voyage planning - using ECDIS features to
plan and appraise a voyage.
� Officer of the Watch duties- how ECDIS
affects voyage monitoring and execution
and how situational awareness and digital
data can enhance bridge navigational
practice.
� ECDIS maintenance - best practice
guidance top ensure that the system
remains functioning.
Here, the guide complements the ICS’ Bridge
Procedures Guide (2007) and the UKHO’s
Admiralty Guide to the Practical Use of
ENCs, the publisher said.
Instead of regarding the transition to an
ECDIS as a standalone activity, away from the
practical day-to-day vessel and crew
management and operations, the UKHO said
that the guide focuses on how this transition
should be managed within a company’s Safety
Management System (SMS). This change
should be influenced by ISM Code
requirements and activities within a company’s
SMS.
The guide then explains the ISM Code and
How to implementand write ECDIS
procedures The UKHO has published an ECDIS guide in which the reader is taken through various
stages of electronic chart operations from the very beginning.*
TECHNOLOGY - ECDIS
May 2014 � TANKEROperator 39
FMD-3200 [19" LCD] FMD-3300 [23.1" LCD]
FURUNO provides thoroughgoing ECDIS training:
FURUNO's ECDIS training programs consist of:
� Generic ECDIS training in accordance with IMO ECDIS Model Course 1.27. Presently, the generic ECDIS training is only available at INSTC Denmark.
� FURUNO type specific ECDIS training. FURUNO type specific ECDIS training is available at INSTC Denmark, INSTC Singapore and through the NavSkills network of training centers:FURUNO Deutschland (Germany), Thesi Consulting (Italy), GMC Maritime Training Center (Greece), Ocean Training Center (Turkey), RHME/Imtech Marine (UAE), Odessa Maritime Training Center (Ukraine), A.S. Moloobhoy & Sons (India), FURUNO Shanghai (China), COMPASS Training Center (Philippines) and VERITAS Maritime Training Center (Philippines)
Please contact INSTC Denmark at instc-denmark@furuno.com for further details
FURUNO ELECTRIC CO., LTD.9-52 Ashihara-cho, Nishinomiya, 662-8580, Japan
Phone: +81 (0) 798 65-2111 • fax: +81 (0) 798 65-4200
www.furuno.com
�� �Multifunction display capability, featuring ECDIS, Conning InformationDisplay, Radar/Chart Radar and Alert Management
�� �Instant chart redraw delivered by FURUNO's advanced chart redrawingengine, making redraw latency a thing of the past
�� �Task based operation, making the ECDIS operation simple and intuitive
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SMS. Usually, the SMS documentation is
contained in one or more safety manuals and
these are normally organised to reflect the
ISM Code’s layout and its 12 sections.
However, with the introduction of ECDIS
navigation, a company will need to develop a
series of new policies and procedures to
specifically cover its use on board ship for
navigational purposes and to manage the risks
associated with its introduction.
As each stage of the transition to ECDIS is
highlighted, this guide identifies key issues
and the ISM Code’s relevant sections to which
they apply, the UKHO said.
*Admiralty Guide to ECDIS Implementation,Policy and Procedures (NP232) 1st Edition,118 pp, illus, published by the UnitedKingdom Hydrographic Office (UKHO).
1) Legal- mandating different vessel types.
2) Risk - Identifying potential problems.
3) Training - Appropriate on board familiarisation and training.
4) Installation - purchase options, installation and maintenance.
5) Policy and procedures- creating policies and procedures for system
operations.
6) Supply - establishing a supply chain for chart data.
7) Assessment - identify, assess and manage ship specific risks.
8) Transition - planning ahead to transfer from paper charts to an
ECDIS.
9) Implementation - safe and efficient navigation through
implementation.
Stages to be considered when changingto an ECDIS
The UKHO is continuing its
free-to-attend global series of
seminars this year.
Capt Paul Hailwood is leading
the seminars, of which one will
be held at Posidonia in Athens
and another at SMM in
Hamburg.
For further details see
www.admiralty.co.uk
TO
TANKEROperator � May 201440
TECHNOLOGY - ECDIS
The Smedvig family backed
Norwegian e-navigation service
provider, which claimed to have
introduced the world’s first DNV
type-approved PAYS service in 2012, launched
the NAVTOR PAYS with AVCS solution in
early April.
AVCS is claimed to be the world’s leading
ENC service for ECDIS, offering the widest
coverage in the market. With over 12,500
ENCs, AVCS allows seafarers to navigate a
significant number of international shipping
routes.
Business and communication manager Willy
Zeiler explained: “PAYS allows navigators to
instantly access the ENCs they need for
planning purposes, levying charges only for the
charts they actually use during voyages. It’s a
flexible, user-friendly and efficient way to
navigate, making it easier to order and manage
an ENC portfolio.
“It is something that the market has eagerly
been waiting for. This collaboration between
NAVTOR and the UKHO marks a significant
step forward in the way that e-navigation
solutions are delivered to the end user. We’re
proud to be working with the UKHO and using
NAVTOR’s advanced technology to connect
with its customers,” he said.
The NAVTOR PAYS with AVCS solution is
distributed on a pre-loaded NavStick USB
device, which when inserted into a ship’s
ECDIS, will instantly install the required AVCS
coverage. The latest AVCS charts and updates
can then be regularly retrieved using
NAVTOR’s online programme NavSync,
ensuring that all vessels are kept up to date
easily.
Jason Scholey, UKHO’s senior product
manager - charts, said: “AVCS is the world’s
preferred ENC service for ECDIS. We’re very
pleased Navtor are launching the NAVTOR
PAYS with AVCS solution to provide customers
with additional choice when purchasing their
ENCs.”
Navtor claimed that the majority of its
customers now opt for a PAYS solution. Zeiler
is keen to stress that it’s not only ECDIS-
mandated vessels that are signing up with
NAVTOR. “Many shipowners appreciate the
tangible benefits of a service that provides safe,
efficient and predictable operations, whether
they are subject to IMO regulations, or not.
NAVTOR offersAVCS on ‘Pay As You
Sail’ NAVTOR is one of the latest companies to offer UKHO’s ADMIRALTY Vector Chart
Service (AVCS) on a ‘pay as you sail’ (PAYS) basis.
Transas Navi-Planner 4000 voyageplanning software is nowequipped with the extendedfunctionality to manage papercharts and publications.
For several years, Navi-Planner 4000 was
known for electronic charts, publications and
other data management. Recognising the fact
that a lot of shipping companies continue to
use paper charts, Transas has added a new
functionality to its voyage planning software
providing one tool for both, electronic and
paper charts management for it´s customers.
Users can import a complete vessel’s
inventory, or manually select paper charts held
on board. Navi-Planner 4000 then connects
directly to the Transas chart server ashore to
gather all outstanding Notices to Mariners
within a few seconds.
Navi-Planner also provides a clear overview
of paper charts status and any paper chart used
during a voyage will be automatically listed in
the passage plan, thus making voyage planning
easy and safe, Transas claimed. �
Transas Navi-Planner 4000managing paper charts
TO
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TANKEROperator � May 201442
TECHNOLOGY - EFFICIENCY
The Copenhagen conference looked
at how tanker operators should
best turn Eco pressures into
opportunities, with the help of
speakers from NORDEN, Thome, TORM,
Maersk Tankers, Lauritzan Kosan, Knud E
Hansen and MAN Diesel & Turbo.
Opening the conference, Capt Steven
Sandorff, director, head of tanker operations
at NORDEN said that the Eco tanker concept
is an operational challenge taking in three
elements.
These were the vessel’s design, the
equipment fitted and the competency of the
crew and shore staff.
He considered that design consideration was
the most important issue, taking into account
the shipyard’s production and the capability of
the terminals to be served.
He said that such was the design of
NORDEN’s 40,000 dwt newbuildings, that
benefits would be accrued without the
installation of specialised equipment, such as a
Mewis Duct.
The question of which main engine to be
installed should also be considered. He said
that NORDEN has opted for MAN Diesel &
Turbo’s 6S50MEB.6.3 type for the company’s
product tanker newbuildings.
Capt Sandorff explained that these engines
were cheaper and of a simpler construction
compared to other engines, which would lead
to ease of maintenance and repair. The next
generation MAN ‘G’ type engines are also
being considered for future newbuildings.
The new MAN engines are de-rated and will
be connected to large diameter propellers.
Tank tests have been conducted with Mewis
Ducts, propeller boss cap fins (PBCF) and
anti-foulings, which were all taken into
consideration.
He said that the equipment installed on
board should be optimised with frequency
controls, etc. Energy saving light bulbs with
timers could also be used, he advised.
In addition, a company must focus on
educating the staff, both on board and ashore
to ensure the correct mindset behind the Eco
tanker concept. “It is a much more complex
scenario with sophisticated monitoring
equipment, such as that provided by Marorka,”
he said. A company should also evaluate all
the possibilities thrown up by the Eco tanker
concept with the various stakeholders.
By using continuous monitoring software on
board, companies have been forced to look at
the quality of data transferred and spend more
time on evaluating the data, compared with the
traditional noon day report, Capt Sandorff
said.
Do somethingAddressing the question of fuel optimisation
and monitoring, Thome Ship Management’s
Stig Holm said that there were no right ways,
or wrong ways, as long as you do something.
Ensure you have sufficient dedicated
manpower to run a project, either in-house, or
third party. ”If you squeeze the budget, then
you won’t be successful,” he warned. It is a
matter of time and cost management, as well
as people management.
“You need a clear understanding of the
starting point and the goal – a strategy for the
final destination,” he said.
There are decisions to be made about the
requirements of quality data collection, such
as the quality of the measuring equipment, the
reporting tools and the evaluation tools, plus
the ability of the organisation to handle the
information both ashore and afloat.
For many years, operators and owners have
relied on the daily noon reports from the
Danish ownershighlight tanker
efficiencymethodology
Tanker Operator’s first in a series of conferences on the theme ‘Navigating Ecotankers’took place in Copenhagen on 27th Mar, 2014.
NORDEN’s Capt. Steven Sandorff.
Thome’s Stig Holm.
TECHNOLOGY - EFFICIENCY
May 2014 � TANKEROperator 43
vessel to the office. These can still be used
retrospectively for an end of voyage
evaluation, historical learning patterns and for
knowledge sharing.
However, today an owner or operator can
continually monitor a vessel’s performance,
which enables corrective action to be taken via
a screen on the bridge. The trim of a vessel
can be changed in a ‘trial and error’ operation.
However, by using the continuous monitoring
method, there will be no historical learning, or
knowledge sharing, Holm said. He advocated
for a mixture of both methods to be adopted.
Next he posed the question – what is
technology related and what is behaviour
related? Technology includes the equipment,
project management, installation,
commissioning and the expense incurred. The
human aspect takes in knowledge, education,
motivation, competition, pride in performance
and buying into the company’s culture.
Everybody should be involved in the
discussions and people who do well should be
rewarded. He gave an example of seafarer
awareness as simple monitoring of the
equipment in the crews’ mess where savings
could be made.
He explained that in Thome’s case, the
company was not the sole decision maker and
cannot incur expenses without agreement from
the vessels’ principals. The shipmanagement
concern also looks after vessels of varying
types. However, on the plus side, the vessels
managed number about 200 and he claimed
that the Thome human element was strong and
that the company operates by using vessel
support teams, ie having managers both on
board and in the office.
Thome has developed its own reporting
system, which alerts those responsible when a
vessel operates out of the conditions as laid
down in the charterparty. Fuel consumption is
measured per voyage, month and year.
Finally, Holm said that tomorrow’s solution
would necessitate retro-perspective and
continuous monitoring with self-financed fuel
savings by screening, evaluating, calculating
(return on investment), financing and project
management.
Return on investmentTORM’s vice president energy efficiency and
innovation, Allan Rasmussen, also confirmed
that the company examined its fleet to see
what could be done about efficiency. The
company found that in general, its five year
old MRs consumed 27 tonnes of fuel per day.
A retrofit solution would have a return on
investment of around three years and reduce
the gap on today’s Eco tankers by around 2-4
tonnes per day.
However, the company decided to retain the
option of sailing at maximum speed, if
required. Rasmussen described the operation
as ‘value of fuel versus value of time.’ He
also said that TORM’s commercial department
were good at triangulation, ie keeping the
vessels on laden legs, rather than ballasting to
pick up cargoes. “It is all about making money
and not just fuel consumption,” he said.
He thought that to de-rate engines and fit
new propellers on an older vessel would cost
around $3 mill with a payback time of 10
years, which was far too long. He said his
main message was ….”know how to operate
your vessel.”
Rasmussen said that one tonne of fuel can
be saved by fitting new technology, but also
one tonne of fuel can be saved by shipboard
staff. He explained that TORM operates a two-
day training course for officers, one day of
which is taken up by fuel efficiency. “We have
dedicated people in the office to look at route
planning,” he explained.
The company runs a project with the
charterers and both on board the vessels and in
the office. The technical department has been
reorganised as it was found that
superintendents running five vessels each
could be a bottleneck. A concept called ‘Vessel
Managers’ has been adopted whereby a vessel
is likened to a factory with a CEO- the vessel
manager. Decisions are therefore empowered
to the vessels in co-operation with the office,
which operates in a technical support function,
so a vessel manager is able to delegate
functions as necessary.
In the office, vessel managers sit next to the
operations people, so both departments can
hear what is going on. In the past the
superintendents were only looking at operating
expenses, but now they have become involved
with fuel consumption, Rasmussen explained.
To help run a vessel efficiently, he advised
that propeller inspections should take place
every four to six months and when at anchor,
or idling, the hull should be inspected. He also
claimed that modern antifoulings do not need
to be polished and that a good antifouling was
worth paying for in the long term.
He also thought that a vessel of say nine
years of age was not worth retrofitting, due to
nearing her special survey and oil majors’ 15-
year age barrier on chartering.
Test projectIn April 2013, Maersk Tankers completed a
comprehensive test project looking at various
retrofit technologies for a VLCC. With the
technologies, annual savings of around 8%
were demonstrated, said Steen Sander
Jacobsen, head of fuel efficiency in Maersk
Tankers.
Tests were carried out on the VLCC MaerskIngrid, which included the fitting of a Mewis
Duct and a propeller boss cap fin (PBCF) at
separate times. Finally, both were fitted.
Before the vessel was drydocked, trials were
undertaken before any modifications were
made. Following this, the vessel was docked
and a Mewis Duct was installed and trials
were re-run. This was repeated with a PBCF
fitted and finally with both a Mewis Duct and
a PBCF fitted together.
It was calculated that with the combined
Mewis Duct and PBCF fitted, savings of
around 6.2% could be made. With all the
retrofits included, the savings went up to about
8% with an ROI of around two and a half
years for a VLCC operating at 12.5 knots.
In addition, the VTI turbocharger was
optimised and frequency control equipment
was installed on the pumps, as well as the
engine room fans. LED lighting was installed,
as was an auxiliary economiser.
Other improvements made to the fleet were
main engine de-rating, main engine auto-
tuning, a turbocharger cut out facility and
harbour circulation pumps were fitted.
Antifouling is another important area to
consider, Jacobsen said.
Existing ships can be upgraded to operate
with a high energy efficiency with a certainty
of a marginal ROI, he said.
Retrofits were a real alternative to buying
new, even if newbuilding prices were low and
promises of energy efficiency from the
shipyards were high. Various interesting
retrofit technologies already exist, but more
radical solutions must be considered to
achieve significant fuel savings, he thought.
Jacobsen also thought that the crew did not
need too much training to operate a retrofitted
vessel. A performance management system
TORM’s Allan Rasmussen.
TANKEROperator � May 201444
TECHNOLOGY - EFFICIENCY
should to be installed and the information
should to be validated for benchmarking
purposes for which scorecards should be kept
on sister vessels.
He also said that voyage planning was
essential and that it was better to operate
tankers at a constant speed of 13 knots, rather
than 50% of the voyage at 14 knots and the
other half at 12 knots.
For Maersk’s new MRs, the hull has been
optimised and he said that Maersk Tankers
would probably fit Mewis Ducts on its LR
types.
Lauritzen Kosan has introduced an energy
efficiency project, which is called ‘Rejuice’.
Sverre Patursson Vange, the company’s
head of performance management said that
this project was started from a DNV
consultancy report, resulting in various focus
areas being identified in 2012.
The long list of suggestions recommended
that 15.8% savings could be accrued and the
target was set at 10%.
Data loggersSince 2008, Lauritzen Kosan had used a semi-
automated system to collect data based on
noon-reports. However, an automated data
logging system has been introduced, which
results in high frequency simultaneous data
sampling without occupying the crew’s time.
The data logger fitted on board the vessels
analyses the ECDIS, GPS and log speed; the
power meters fitted on the generators and
consumers; the mass flow meters on the fuel
systems and the torque meter.
Vange said that reliable data should be
produced, which the vessels’ crew and their
managers could trust using highly accurate
metering. The human factor could be
eliminated with transparency and the
possibility to monitor 24/7 for all the
stakeholders involved.
He claimed that the company had a huge
increase in positive vetting results, due to the
introduction of KPIs and a reliable comparison
between sisterships, which has led to bonus
lead KPIs. Vange said that the company was
currently working on energy efficient KPIs.
Anticipate changesKnud E Hansen’s Brian Bender Madsen
warned owners and operators to anticipate new
fuel regulatory changes going forward and
agreed that it was generally cheaper to add
fuel saving technologies on a newbuilding,
rather than opt for a retrofit solution.
He advised owners/operators to co-operate
with a proven design house to ensure high
overall efficiency, as the shipyards main focus
is on optimised production.
Madsen said that there were many solutions
available for old, bad and/or large vessels, but
for smaller and newer vessels, few solutions
Energy Efficient Project- Rejoice (based on a consultant’s report,various focus areas were identified in 2012).
Maersk Tankers’ Steen Sander Jacobsen.
Lauritzen Kosan’s Sverre Patursson Vange.
Source: Lauritzen Kosan.
TECHNOLOGY - EFFICIENCY
May 2014 � TANKEROperator 45
are available to improve their efficiency.
He thought that there basically four methods
to improve the fuel efficiency of a vessel -
� Reduce the hull resistance in loaded/ballast
condition.
� Increase the propulsion system efficiency.
� Improve the power plant efficiency.
� Improve the crew behavioural and
operational efficiency.
For newbuildings, a fifth method is the
vessel’s operational profile, ie draft, speed,
laden/ballast and operation area.
As for hull resistance, the general
characteristics of a full-form/high block
coefficient vessel, such as a tankers were;
� 60-80% of the hull resistance is in the form
of viscous resistance.
� 10-20% can be attributed to wave
resistance.
� 5-10% to hull roughness.
� Up to 5% to air resistance.
The largest areas for improvement here lie in
optimising the hull form (optimise carrying
capacity), applying smooth coatings and keep
the hull and propeller clean. For tankers
already in operation, hull form optimisation
has very limited applicability. But on
newbuilding it has high value, Madsen said.
There are a range of options available for
increasing the propulsion system’s efficiency,
all of which are highly customised and
designed specifically for each vessel.
Each system has advantages and
disadvantages and in some cases combining
different devices has been shown to give good
improvement, such as the Mewis Duct, which
combines a duct and pre-swirl fins. In general
the efficiency improvements to be gained are
highly dependent on the geometry of the
vessel in question, Madsen said.
Generally, the variable frequency drive,
waste heat recovery and automation are the
key to power plant efficiency, Madsen said.
There are a range of options on the market for
systems, which improve the plant efficiency.
In a few cases, mainly on larger vessels and
for bad designs, larger conversions could be
undertaken resulting in big savings and a
quick ROI.
Another feature to consider is the
operational efficiency. Trim optimisation can
offer reductions in fuel consumption in the
range of 1-5%. This can either be verified by
model test, or computerised fluid dynamics
(CFD) – depending on whether a model is
available. Other possible features available for
operational efficiency include - route planning
(weather, adjust speed according to the ETA).
Crew training and awareness can answer
such questions as – do the vessel’s systems
operate in the most efficient mode? A lack of
maintenance and overhaul increases the
vessel’s energy consumption. Other
possibilities include slow steaming and taking
advantage of the currents and avoiding bad
weather and the monitoring of hull and
propeller fouling.
Engine refitMAN Diesel & Turbo, PrimeServ’s manager
retrofit sales, Jan Jensen discussed the merits
of a 2-stroke engine refit.
For example, the Alpha lubricator could be
upgraded and PMI auto and low load tuning
could be undertaken. Like most of the
speakers, he also mentioned engine de-rating
and propeller optimisation.
In addition, MAN Diesel & Turbo has been
involved in engine gas conversions to ME-GI,
or LGI, type mode, primarily with large
LNGCs, but the company has also won orders
for new ME-LGI engines for a series of six
methanol carriers.
For conversions, Jensen explained that
MAN’s MC, ME-C, MC and MC-C engines
could be used. By the beginning of April,
some 46 MAN dual fuel Tier II engines had
been ordered, either new, or for retrofits.
The gas engine retrofits for the QatarGas
LNGCs are specifically designed and
engineered and are not off-the-shelf engines,
he explained. A study was started with
QatarGas some three years before the
conversions, which will take around 540 days
per vessel.
For gas conversions, as well as the main
components, operators need to consider the
other systems needed, including the
installation of inert gas plants for flushing the
gas system, a double piping system in the
engine room, block and bleed valve systems, a
silencer for gas venting, a fuel gas supply
system, LNG tanks and bunkering systems,
gas detection system and fire fighting systems.
For de-rating the engine and the correct
propeller, the savings potential is around 10-
15%, but the cost runs at €1-3 mill, Jensen
said. Recently, MAN Diesel & Turbo
purchased the Kappal propeller solution,
which is offered in all size ranges and in fixed
pitch and controllable pitch modes, which
together with a de-rated engine can represent
significant savings.
MAN PrimeServ has completed specific
vessel studies both at optimised and at low
speed operation. “We can then develop
systems to suit,” he said. He advised that the
propeller design with the hull shape should be
decided upon before selecting the engine type.
He gave an example of the percentage cost
split for a conversion from an ME to a ME-GI
type dual fuel engine. The installation at the
yard represents some 40% of the cost. This
includes the installation, hull work, auxiliary
systems piping/structural engineering, piping,
etc.
Project management would account for
about 25% of the total cost, which involves
class documentation, QHSE, HAZID/HAZOP,
plus external consultancy fees. Also
amounting to about 25% of the cost is the fuel
gas supply system, while the engine retrofit
would total the remaining 10% of the total
cost.
In a case study involving a 74,000 dwt
Panamax tanker, the savings potential was
calculated at 12-15% and the cost was
estimated at €1.2 mill with a return on
investment in about 2.5 years.
Existing De-rated
Panamax tanker case study
Max speed (kn)
Optimised speed (kn)
Operating speed (kn)
SMCR (kW)
Rev/min
15.2
15
12.5
11,300
105
14
12.5
12.5
6,850
79
Source: MAN PrimeServ.TO
TANKEROperator � May 201446
TECHNOLOGY - EFFICIENCY
Certification by the Swiss-based
non-profit organisation The Gold
Standard is claimed to be the first
methodology to allow ships to
generate carbon credits, thus income, for the
CO2 emission reductions they achieve.
The methodology is based on shipowners
and operators converting existing vessels from
a biocidal antifouling system to a biocide-free
advanced hull coating, such as International’s
patented Intersleek.
A baseline emission level is determined for
the vessel prior to the application of Intersleek
with the same data source then used to
determine the emission savings after its
application. The carbon credits generated are
directly related to reduced emissions as a
result of reduced fuel consumption.
Using a ‘results based finance’ approach,
carbon credits are awarded annually, based on
vessel data that is collected, analysed and for
Intersleek, administered by International and
submitted to The Gold Standard Foundation
for validation.
To ensure validity and transparency, the fuel
savings that are generated are verified by
independent UN accredited auditors. Once the
carbon credits are issued to International, they
can be sold at market price and the revenue
shared with customers in a new form of
finance.
Many owners and operators are already
eligible to benefit from the process and receive
credits that have already been accrued.
International spent more than two years
developing the carbon credits methodology as
part of its research into making eco-efficiency
technologies more accessible for the wider
shipping industry.
The company said that it chose to work with
The Gold Standard Foundation because it is
the highest quality and most trusted carbon
certification standard with rigorous
sustainability benchmarks over three
categories - environmental, social and
economic, as well as technological.
The environmental credentials for Intersleek
technology have already been established
through an ‘eco-efficiency analysis’ conducted
according to ISO14040 and ISO14044 and
independently validated by the Swedish
Environmental Research Institute.
“This landmark methodology enables
shipowners and operators to benefit twice
when they invest in Intersleek technology.
First, they can increase operational,
environmental and energy efficiencies, which
reduces fuel costs and emissions and then they
can reap the additional financial benefits of
carbon credits, which we will share with them.
We will also handle all the administrative
requirements, so customers don’t have to
invest time, capital or resource in generating
the carbon credits,” said Trevor Solomon,
Intersleek business manager.
The project started in 2009 when data had
showed that up to a 9% fuel saving could be
achieved by switching to Intersleek hull
coating.
At a presentation in London, International’s
John Willsher explained that other energy
devices fitted would make a vessel ineligible
for the scheme, as it would be impossible to
gauge which individual system is contributing
to the energy saving.
He also explained that the measurement
would be based on the noon reports with no
monitoring equipment needed. Although in
general, the cost of Intersleek is higher than an
antifouling, around 20-40% of the costs could
be offset using this scheme.
Fouling risk toolIn addition, AkzoNobel has introduced what is
claimed to be the shipping industry’s first
digital tool that enables operators to accurately
assess and predict the risk of hull fouling,
depending on which routes are being traded.
Developed by International, Intertrac
analyses various data streams in order to draw
up an accurate fouling risk profile. This can
then be used to tailor a coatings system to a
vessel’s specific route, helping to maximise
operational efficiencies and reduce costs.
“This is a valuable tool that enables us to
recommend optimal fouling control coating
specifications, which in turn helps to generate
major cost savings for customers,” said
Conrad Keijzer, AkzoNobel’s executive
committee member responsible for
performance coatings. “It is also an excellent
example of how we are always looking to
innovate and set ourselves apart from the
competition.”
The patent pending Intertrac software
divides the world’s oceans and coastal waters
into 64 large marine ecosystems, each with its
own fouling risk and characteristics, including
salinity, temperature, thermal range,
seasonality and typical pH levels.
AIS dataRoute information is obtained from data
provided by a vessel’s AIS, which is available
in the public domain. This establishes
operating profiles and helps to quantify the
hull fouling challenge that a specific vessel
has faced while in operation.
Rob Molenaar, managing director marine
and protective coatings said “This is a unique
tool which can offer important benefits to
owners and operators. By combining details of
a vessel’s voyage with our in-depth analysis of
the fouling challenge, we can provide our
customers with detailed information on the
level of fouling risk that they face.”
The Intertrac software will also help
AkzoNobel to refine future product
development as more and more is learned
about both the marine environment in different
parts of the world and how it affects different
vessels.
Already tried and tested having been in
operation for a number of months, an
unnamed oil company has asked for a fleet-
wide fouling risk assessment across all of its
ships.
Carbon credits forhull efficiency
AkzoNobel’s International marine coatings business and The Gold Standard Foundation
recently unveiled a new marine-based methodology to reward
improved vessels’ fuel efficiency.
TO
TECHNOLOGY - TANK SERVICING
May 2014 � TANKEROperator 47
Atypical Suezmax may consume as
much as 500 tonnes fuel oil for
cargo heating to maintain cargo
temperatures of Boscon crude in a
voyage from Venezuela to the Far East.
Around 30% reduction in this consumption
can be achieved through estimation planning
and monitoring of cargo heating, which could
mean a considerable saving to a tanker
operator/owner. This reduction in fuel oil
consumption is certainly big for a seemingly
small cargo heating operation, said Blue Water
Trade Winds.
“Blue Water Trade Winds, a pioneer in the
innovative service of cargo heating
management, touched the milestone of 58,000
tonnes fuel saving since its inception in 2008,
corresponding to approximately $35 mill, ” the
company said.
Not many years ago, fuel efficiency was a
neglected topic of many marine conferences
and journals. But today, sustainable
technologies and concept rank top of the
agenda in the maritime industry. What made
such a dramatic change in awareness in this
area?
The answer may be complex and the causes
are numerous. But above all, it is clearly the
result of the phenomenal rise in fuel cost. This
significantly reduced the voyage earnings for
those ship operators who lacked the ability to
adopt newer cost effective measures.
Also the far sighted shipowners have now
realised the need for their contribution towards
reducing harmful emissions by cutting down
on avoidable fuel consumption.
As the world's most reliable, cost-effective
and energy-efficient mass transportation
system, maritime transportation is central to
sustainable development. There is a growing
international movement to protect our oceans
in the marine industry.
A step aheadBlue Water focuses on maritime energy
efficiency areas, harnessing the experience of
its professionals from diverse industries, the
company said. These services are additions to
the upcoming methods of saving fossil fuels
and reducing environmental impact from
emissions; primarily by designing new
methodologies to optimise the fuel
consumption across diverse operations,
including cargo heating.
With several top oil company clients, Blue
Water said that it had come a long way in it’s
effort to create an effective cost cutting
platform. In addition, this service was able to
provide much needed support for giving
insight into operations, green policies and core
business processes.
The company is now focusing on pushing
the need for next-generation sea transport
sustainability methods to the tanker shipping
sector— leading towards extending fuel saving
objectives to a higher level, such as carbon
budgets, environmental impact gauging and
energy efficiency methods.
It is often said that what gets measured, gets
done. Although shipping companies set
ambitious energy optimisation initiatives given
the multitude and complexity of variables
involved, accurately measuring and tracking
such performances remains a major challenge.
When it comes to achieving energy
efficiency, shipping companies can choose
different ways to measure and assess their
energy use. Blue Water claimed that it had
recently developed a simple yet effective and
unique mechanism to specifically address this
challenge - the Cargo Heating Performance
Indicator (CHPI).
This was developed by a group of students
from Indian Institute of Technology (IIT)
through regression analysis and in-depth
statistical study of over 1,400 heated cargo
voyages, managed by Blue Water.
CHPI has now allowed owners and
operators to track and compare the cargo
heating performance on heating cargo voyages
in any given condition. In other words, the
system now allows logical comparison of an
apple to a mango. This is done by obtaining an
empirical relation between fuel oil
consumption and factors affecting it, Blue
Water explained.
The end result, in the form of fuel oil
consumption expressed in tonnes per day,
signifies the cargo heating efficiency on any
given voyage (see overleaf).
Small methodologyleads to large savings
The rule of thumb may not always work for managing cargo heating.
ys offaypthe original
inInvesting
jetsgroup.com
TO
TANKEROperator � May 201448
TECHNOLOGY - TANK SERVICING
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